2022-08-31-accounts

Registered number: 00537118 Charity number: 312720

St. Margarets School (Hampstead) Limited (A Company Limited by Guarantee)

Annual Report and Financial Statements For the Year Ended 31 August 2022

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Contents

	Page
Reference and Administrative Details of the School, its Governors and Advisers	1 - 2
Governors' Report	3 - 14
Governors' Responsibilities Statement	15
Independent Auditors' Report on the Financial Statements	16 - 19
Statement of Financial Activities	20
Balance Sheet	21 - 22
Statement of Cash Flows	23
Notes to the Financial Statements	24 - 42

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Reference and Administrative Details of the School, its Governors and Advisers For the Year Ended 31 August 2022

Governors	Mrs E Brettle, Chairman
	Ms D Atkinson (appointed 22 September 2021)
	Mr M Feldman
	Mr E Grower
	Mr G Leung (resigned 1 November 2021)
	Mr D MacNeill
	Mrs T Marton
	Miss M C Mendham
	Mrs L McBride (appointed 25 January 2022)
	Mr F Patel
	Dr A Wayne
	Mrs M Wayne
Company registered number 00537118 Charity registered number 312720 Registered office 18 Kidderpore Gardens Hampstead London NW3 7SR Principal Bursar Mr M Webster Mrs S Beschizza Clerk to the Governors Website Mrs S Beschizza www.st-margarets.co.uk Independent auditors Kreston Reeves LLP Chartered Accountants 2nd Floor 168 Shoreditch High Street London E1 6RA Bankers CAF Bank Limited 25 Kings Hill Avenue, Kings Hill West Mailing Kent ME19 4JQ

Page 1

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Reference and Administrative Details of the School, its Governors and Advisers (continued) For the Year Ended 31 August 2022

Solicitors Veale Wasborough Vizards Orchard Court Orchard Lane Bristol BS1 5WS Investment Advisors Canaccord Genuity Wealth Management 88 Wood Street London EC2V 7QR Insurance Brokers Marsh Brokers Limited Capital House 1-5 Perrymount Road Haywards Heath West Sussex RH16 3SY

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St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Governors' Report For the Year Ended 31 August 2022

The Governors of St Margaret’s School (Hampstead) present their Annual Report together with the audited Financial Statements of the School for the year 1 September 2021 to 31 August 2022. The Annual Report serves the purposes of both a Trustees' report and a Directors' report under company law. The Governors confirm that the Annual Report and Financial Statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the School qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

AIMS, OBJECTIVES AND ACTIVITIES

a. Our aims

The principal object of the company, as authorised by its Memorandum and Articles of Association, is to carry on at 18 Kidderpore Gardens, Hampstead, London NW3, a school for the general education of girls.

We aim, through our Junior and Senior Schools, to provide a secure, caring and challenging learning environment in which girls are encouraged to strive for excellence in all that they do. Respect for other lies at the heart of the school community, within which the potential and talent of everyone can be recognised, nurtured and realised. At St Margaret’s, education is seen as a partnership between pupils, parents and teachers. Specifically, our aims are to:

• encourage and enable each girl to develop a love of learning by providing a supportive environment in which success is measured based on personal progress;

• enable each girl to meet intellectual, creative and physical challenges with confidence;

• support the spiritual and moral development of each girl through maintaining high standards of personal responsibility and an awareness of their contribution to the wider world;

• foster an active concern for the community and the environment through awareness and providing opportunities for individual contribution;

• prepare each girl for the next stage of her education when she leaves St Margaret’s through educational qualifications and information and guidance about future options from 16 years old;

• ensure that education is seen as a partnership between pupils, parents and staff by promoting communication and collective responsibility for a girl’s academic and personal education.

• Enable girls to develop personal characteristics through our PROSPER programme whereby the pupils are helped to develop and sustain Positivity, Relationships, Optimism, Strengths, Purpose, Endeavour and Resilience

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St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Governors' Report (continued) For the Year Ended 31 August 2022

AIMS, OBJECTIVES AND ACTIVITIES (continued)

b. Our objectives

Our objectives are set to reflect our educational aims and the ethos of the School. It is important to us that we maintain and enhance the academic success of the School.

This objective is, however set in the context of the broader goals we set for the School and its pupils.

In setting our objectives and planning our activities our Governors have given careful consideration to the Charity Commission’s public benefit guidance.

Our key objectives for the year included:

• the continued achievement of excellent academic performance by each individual pupil as measured by GCSE results as compared with similarly loosely selective schools. As in previous years, our value-added progress for GCSE is high, demonstrating that the girls make better than predicted progress whilst at St Margaret’s.

• the continued provision of an educational environment within which each individual pupil can thrive and develop intellectually, physically, socially and spiritually by maintaining high expectations amongst staff and pupils and making evident the spiritual values held important by the School.

• to endeavour to make an education at St Margaret’s available to the greatest number of pupils to whom it would be of benefit by keeping school fees as reasonable as possible, maintaining only limited selection of pupils, and using the school’s bursary policy to promote the admission of a greater number of pupils with parents on lower incomes.

• to develop our programme of co-operation and joint working with local state primary and secondary schools.

• to play our part in the life of our local community through our community access and service programmes.

ACHIEVEMENTS AND PERFORMANCE

a. Pupil numbers and fees

Our educational activities are carried out through our Senior School and our Junior School. The average number of pupils on roll during the academic year 2021/2022 was 167. This is almost at our capacity of 170, the maximum number which can be comfortably accommodated on school premises.

Our fees are set at a level required to ensure that the School’s costs, a high proportion of which relate to teachers’ salaries, are covered. Fees during the academic year 2021/2022 before the deduction of any means assisted bursaries were:

Years R to 2 £4,716 per term Years 3 – 6 £5,340 per term Year 7 – 11 £5,463 per term

Curriculum

The curriculum remained the same as in previous years, albeit updated with syllabus changes. We offer Computer Science at GCSE. We are focusing on the skills developed within the individual subject areas. For example, the skill of evaluation to reach the highest grades at GCSE.

Academically it was a very successful year overall for our girls at GCSE level, with 51% of grades being awarded an 8 or above (the equivalent of an A* grade). The School was awarded an ‘Excellent’ grade for both the two Educational Quality inspection criteria.

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St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Governors' Report (continued) For the Year Ended 31 August 2022

ACHIEVEMENTS AND PERFORMANCE (continued)

Co-curricular activities:

Music

We held a Carol service at St Luke’s Church in December 2021 for the whole school with our orchestra, choir, handbells group, ukulele group and nearly all of the girls taking part. The Carol Service was recorded and broadcasted online for our parents and families unable to attend in person. We had some fantastic responses from families from around the globe enjoying the performance.

In March 2022, we held a school music competition for the first time in our new Royal Tollgate space, which involved performances from girls from Reception to Year 10. Girls had an opportunity to sing or play in front of the whole school. St. Margaret’s teachers and Y11 music students were judged for the competition.

In the classroom, we developed our use of many of the online features first embraced during the pandemic, such as ‘flat.io’ music software, which we used for composition in KS3. Music homework is set online now, and Google Classrooms have become a part of our everyday teaching.

We have maintained singing in class and in the Junior choir. To engage and inspire our students, we joined a live rehearsal and concert as part of the Young Voices Choir at the O2 Arena, in May 2022.

Our Summer concert at St Luke’s Church took place in May 2022 with many memorable performances such as a pupil playing a harp solo, the orchestra playing ‘In the Hall of the Mountain King by Edward Grieg’, ‘Viva La Vida’ by Coldplay, choir pieces and a whole school singing performance with a few solos and rapping section.

We also ran our smaller informal Teatime concerts for parents and families of our students, which have proved to be very popular..

Drama

Students from Years 7 to 11 were all taught Drama by our subject specialist teacher. For the first time in two years, the whole curriculum for KS3 and KS4 was delivered in school and practically, using both the Tollgate & Royal Tollgate spaces.

Changes to the KS3 curriculum included: the development of Year 7 SOL based upon historical events at Flannan Isle (previously introduced remotely during lockdown) and a full practical exploration of the text Mugged by Andrew Payne; Year 8 saw the re-introduction of the SOL based upon The Match Girls’ strike, and the development of materials around the stage version of Noughts & Crosses , by Malorie Blackman; Year 9 were introduced to the traditions of Commedia Del Arte and masked drama, as well as being invited to explore the Phillip Ridley play, Sparkleshark .

As we also recovered from the restrictions imposed by Covid on theatre trips, in December 2021 all GCSE, drama students attended a performance of The Curious Incident of The Dog In the Night Time , at the Troubadour Theatre in Wembley. This provided them with the opportunity to experience live theatrical performance in preparation for Section B of their written exam paper, where they are required to write an evaluation of Live Theatre that they have seen. The school has retained its subscription to a streaming service, Drama Online, and this access has proved useful to the teaching not only of GCSE classes, when examining aspects of design and directing, but also for groups at KS3.

The KS4 curriculum remains largely unchanged, whilst modifications to the exam specification, such as only one text extract being required for Component 2, remained in place for the 2022 entry. Year 11 candidates sat a written paper for the first time in three years, (a further modification being the pre-release of the text extract from DNA to be used in the exam). Specification requirements will return to normal for 2023 candidates. GCSE exams were externally examined, rather than Teacher Assessed, for the first time in three years. Results were good, with two candidates achieving the top Grade 9, 1x Grade 8, 1 x Grade 7, 2 x Grade 6 and 1 x Grade 5.

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St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Governors' Report (continued) For the Year Ended 31 August 2022

ACHIEVEMENTS AND PERFORMANCE (continued)

Sport

The PE curriculum throughout various stages of the School has traditionally covered the following areas: - netball, gymnastics, dance, games, fitness, tennis, swimming, rounders, athletics, trampolining, volleyball, badminton and rowing. Incidental exposure to other sports, such as tag rugby, cross-country, orienteering, hockey, table tennis and others are explored or given to girls as taster sessions.

We have added football to both the curriculum and to our school fixture list. Cricket matches have been added to the summer curriculum and the girls played their first competitive cricket fixtures. Currently netball and rounders remain our main competitive sports but we have recently had a number of football matches in the Senior School and have introduced Junior School fixtures to the calendar for the first time this year.

The broad curriculum makes use of a variety of facilities. Currently St Luke’s School is used for indoor work such as gym, dance, fitness and indoor games for the lower Juniors and Infants. The whole School from Y1 upwards continues to use West Heath for both lessons and matches. Currently Y5&6 and the Senior School make use of Hendon Sports Centre and for swimming the Junior girls are taken to Barnet Copthall.

From Year 4 onwards children take part in competitive team games through the inter-house and inter-school fixture programme. Relative to size the School netball teams continue to achieve commendable success with a weekly fixture schedule. Additionally we offer a wide variety of sports clubs throughout the year. We have a tennis club, a running club, ballet, netball clubs, street dance, yoga, jazz dance, cheerleading and rounders clubs. There has been the addition of a new karate club and yoga is offered to the girls in the Senior School during the day as part of an ongoing wellbeing programme. There is an early morning netball shooting clinic and a football club that both take place before school. Our cheerleading squad have historically performed at sporting events.

At the end of the Spring Term, we have an annual Movement Display that includes every pupil from Reception Y9. Junior School swimming takes place from Reception-Y6 in the Summer term and our Annual Sports Day is facilitated at Highgate School at the end of the Summer Term.

b. Details of bursary and scholarship awards

Bursaries

This year the value of means tested bursaries totaled £144,914 and represented 5.7% of our gross fees. They provided assistance to 10 of our pupils of which eight pupils benefitted from a full remission of fees. A hardship fund is also available to help pupils in receipt of bursaries meet the costs of school trips, examination entrance fees and similar expenses.

Review

The Governors are constantly reviewing our Bursary policy to ensure that as many children as possible can accept offers of places at our School through the availability of means tested fee assistance. Our policy is designed to widen access to our School. We anticipate this will help inform the development of our policy and help ensure the objective of wider access continues to be achieved.

c. Community Service

The girls have undertaken community work in the following ways:

• Multiple visits to the local Age Concern, serving afternoon tea and conversing with the residents

• Visits with donations to a local branch of the St Mungo’s charity

• Visits with donations to an animal rescue shelter

The School also supports the local neighbourhood association, Redfrog, that uses our premises for their annual AGM.

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St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Governors' Report (continued) For the Year Ended 31 August 2022

ACHIEVEMENTS AND PERFORMANCE (continued)

d. Environmental Initiatives

The School earned an international accreditation this academic year from the Eco Schools “Green Flag” recognising the pupil’s work in making the School more environmentally friendly and raising eco-awareness in fellow pupils.

Eco-Schools is an international education programme that prompts young people to explore sustainability and climate change and take action.

Girls in years 5, 6 & 7 collaborated with the Science Department to conduct an environmental review, assessing how eco-friendly the School is. They reviewed everything from the School’s recycling practices, to energy usage, to how environmental themes are covered in classrooms. Building on their findings, the girls and the Science Department planned a year of activities to improve their green credentials.

The group connected their work to three Eco-Schools topics: Waste, Biodiversity & School Grounds Activities centered on planning for the following activities this year:

• A school-wide recycling competition

• A houseplant in every classroom for each form group to look after

• A living wall on the roof terrace in spring 2023

• Taking part in the “Big Battery Hunt” to keep batteries out of domestic rubbish and landfill.

e. Community Access

We see St Margaret’s School as a part of a wider community.

We have appointed a new role at the School with a specific remit of engaging more regularly and productively with our local community. The School’s Public Benefit Coordinator has contacted local schools and has produced plans for us to provide local pupils with opportunities in areas that their present schools are unable to fulfil.

f. Future Plans

The Governors intend to continue their current strategies of maintaining the School’s position in a competitive market by investing to provide high quality education for our pupils. Achieving a high standard of academic results is a constant aim whilst maintaining the breadth and depth of the education provided.

The Principal and Senior staff continue to review the curriculum to ensure that the educational qualifications remain appropriate for our pupils’ development.

The principal source of income is fees accounting for 96.3% of the School’s income. The Governors are continuing their strategy of deploying all net incoming resources to invest in the educational purposes and fabric of our Junior and Senior Schools.

In addition to the very substantial benefits our School brings to our pupils, the local community and society through the education we offer, our bursary programme and our ‘teaching links’ programme create a social asset without cost to the Exchequer.

Page 7

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Governors' Report (continued) For the Year Ended 31 August 2022

Financial review

a. Our Finances

The financial statements show income from School activities of £2,670,279, after bursaries and discounts, and total income for the year of £2,726,795. Net income for the year was £151,930.

As a charity, the parents of our pupils have the assurance that all the income of the School must be applied for educational purposes. As an educational charity, we enjoy tax exemption on our educational activities and on our investment income and gains provided these are applied for our charitable aims. As a charity we are also entitled to an 80% reduction on our business rates on the property we occupy for our charitable purposes. The financial benefits we receive from these tax exemptions are all applied for educational purposes and indirectly help us to maintain our bursary policies and ‘teaching links’ programme.

However, as an educational charity, we are unable to reclaim VAT input tax on our costs, as we are exempt for VAT purposes. We also pay tax as an employer through the national insurance contributions we make.

Developments and Maintenance

The School has a planned program of decoration/ maintenance with every classroom being decorated every 3 years with all common areas decorated annually. All electronic whiteboards have been replaced with LED Clevertouch Screens.

IT Strategy

The school Management Information System, which incorporates the administration and finance systems, has been moved to the cloud to mitigate the risk of hosting the database onsite and to enable ease of remote working.

Teaching Staff

Teachers continue to use the Google suite of applications to support their teaching with many using the skills they learnt during lockdown to enhance their in-person teaching. All teachers and support staff have been issued with new laptops to enable remote working when necessary.

Students

Y3 to Y11 pupils are given Google accounts when they join St Margaret’s. They are taught in ICT lessons how to use them appropriately.

Hardware

All pupils from Y3 – Y11 are issued with a school Chromebook which they use in in class, and for remote learning when necessary.

Moving Forward

The School is in the process of refreshing the computer hardware in each classroom. An up-to-date windows PC along with new screens and wireless keyboards and mice are being rolled out over the next 2 years.

Page 8

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Governors' Report (continued) For the Year Ended 31 August 2022

b. Reserves and Financial Health

The Governors regularly review the finances, budgets and spend against budget together with a monthly cash flow analysis as part of the effective stewardship of the School.

In common with other independent schools, the Governors have invested substantial sums into new School refurbishment in recent years and have a continuing programme of refurbishment, development, and investment to maintain excellent teaching facilities for our pupils.

The total funds were £7,042,562 of which £29,771 were held in restricted funds, £156,873 were held in the designated Morton scholarship fund and £6,036,224 were held as tangible fixed assets. This does not leave any free reserves.

The Governors consider that given the strength of the charity’s balance sheet, the stable cash flow from full student rolls, the ongoing popularity of our School, and the available banking facility that can be called upon if need arises, that the finances are in good health.

The Governors recognise that the level of reserves fluctuates during periods of investment in the School estate and the arrangements at our Investment Advisers Cannacord Genuity Wealth Management are in place to provide an adequate ‘safety net’ should it be required.

c. Going Concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the School has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

d. Investment Policy and Performance Statement (Written by the School's Investment Advisers)

This has been another challenging period for the portfolio with an investment backdrop of significant adjustments to combat rising inflation through aggressive western central bank tightening, exacerbated by the war in Ukraine, supply chain issues and a dramatic slowdown in Asia, particularly in China as the pursuit of a zero covid policy weighs on the economy. The rise in interest rate expectations had the most significant impact on the portfolio as an underweight to the energy sector and overweight to quality equities put pressure of company valuations; this was felt most significantly in Q1 2022. These falls were exacerbated by the holdings in investment trusts, which moved from premia to discounts.

Over the 12-month period, the portfolio’s value fell by 12.03%. Whilst clearly this is disappointing, the longer-term performance since 1st January 2019 shows the portfolio has returned 16.98% against CPI of 14.55% over the same period. We expect the current period of volatility to continue until we see interest rates plateau and companies can assess the impact of these on their businesses and the economy. At peak rates, the appeal of fixed interest as an asset class will be more appealing in the medium-term outlook and we expect our overweight to quality equities to again come into focus and for these companies to fair relatively better over the market cycle.

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St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Governors' Report (continued) For the Year Ended 31 August 2022

OUR ETHOS STRATEGY AND POLICIES

St Margaret’s is, by any manner of reckoning, a very small school, having not just small classes but only one class per year group from age 4 to age 16. This situation may have been arrived at by accident of history, but it is now embraced and celebrated by the Governors as a matter of positive policy. The close-knit community which our size engenders is integral to our academic and pastoral success and is one of the prime reasons why parents choose St Margaret’s for their daughters in preference to the many larger schools available to them locally in both independent and maintained sectors.

The Governors are committed to broadening access to the School by every means at their disposal, whilst having regard to their duty to safeguard its long-term future.

Our School is committed to safeguarding and promoting the welfare of our pupils and expects all staff and volunteers to share this commitment.

Our ethos: a caring School serving our local community and society

St Margaret’s School is a charitable trust, which seeks to benefit the public through the pursuit of its stated aims. Our fees are set at a level to ensure the financial viability of the School and at a level that is consistent with our aim of providing a first class education to girls.

Our School welcomes pupils from all backgrounds. To admit a prospective pupil, we need to be satisfied that our School will be able to educate and develop a prospective pupil to the best of their potential and in line with the general standards achieved by their peers. Entrance interviews and assessments are undertaken to satisfy ourselves and parents that potential pupils can cope with the pace of learning and benefit from the education we provide. An individual’s economic status, gender, ethnicity, race, religion or disability do not form part of our assessment processes.

We are an equal opportunity organisation and are committed to a working environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, sex, sexual orientation, or disability. We will make reasonable adjustments to meet the needs of staff or pupils who are or become disabled.

In April 2022, the school underwent a dual compliance and educational quality inspection, which confirmed that the school meets all its obligations as regards the quality of provision and care for the girls of the school.

The school was awarded an ‘Excellent’ grade for both the two Educational Quality inspection criteria.

In the Spring of 2022, we introduced a new ‘PROSPER’ focus, the acronym standing for a series of focused areas, related to wellbeing, designed to complement, and underpin the traditional curriculum.

Parents are given regular information about their children’s social and academic progress through parent evenings and online progress grades, in addition to the traditional end of term and year reports. We maintain regular contact with parents throughout the year through informal contacts and through our newsletter. The school operates a mostly ‘open door’ policy and parents are given access to teachers’ direct email addresses with a view to maintaining close communication opportunities.

Access Policy

It is important to us that access to the education we offer is not restricted to those who can afford our fees. We believe our pupils benefit from learning within a diverse community. A great deal of learning occurs through social interaction, conversation and shared experiences which helps our pupils develop an understanding of the perspectives of other people that will be vital in their adult lives.

Our bursary policy together with our ‘Teaching Links’ programme contribute to a widening of access to the education we offer and the facilities we enjoy.

Teaching Links

Our School is a part of a wider community, and we are keen that our staff and pupils participate. Our Governors are committed to developing our ‘Teaching Links’ programme of cooperation and joint working with local state

Page 10

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Governors' Report (continued) For the Year Ended 31 August 2022

OUR ETHOS STRATEGY AND POLICIES (continued)

Junior and Secondary schools. Please see our “Community Access Section” above.

Bursary policy

At St Margaret’s we believe whole-heartedly in the value of a traditional academic education within a small scale, “family” environment. This is an expensive endeavour, and our fees must cover our costs as well as providing for the future maintenance, development, and stability of the school. We are well aware that, in consequence, an education at St Margaret’s is beyond the means of some parents whose daughters would derive considerable benefit from what we have to offer. The Governors are committed to broadening access to the School by every means at their disposal, including by offering means-tested financial assistance, of up to 100% remission of fees, to parents of suitable applicants.

Where funds allow, the school will continue to give sympathetic consideration to cases where the parents of existing pupils experience a sudden, unforeseen change in circumstances which would result in their daughter otherwise having to be withdrawn from the school. For the sake of clarity, these awards are termed Hardship Grants.

The bursary awards range from 50% to 100% remission of fees. In the year ,we awarded 10 bursaries at an average of £14,491 each.

The success of our bursary scheme is explained in our review of activities and achievements section of this report. Details of bursary awards are also set out in note 10 to the accounts.

Other Policies on Assistance

Financial planning policy

Timely financial planning is often the key for many parents who are hoping to send their children to St Margaret’s School and a school fee plan is available to help those who wish to fund educational costs through regular contributions. During the pandemic, the School offered parents an interest free repayment plan over the duration of the summer term to assist financial planning during the lockdown. This termly instalment scheme has since continued to date.

Family discounts policy

To underline the value we place on continuity for families, we offer discounts where parents have more than two daughters at the School.

Promoting High Academic Standards

The Teachers’ Standards (as set out by the DfE) are in full use and have been extended to reflect an additional set of 12 St Margaret’s standards which acknowledge contribution across the school which is substantial and sustained. These are now embedded as a part of every teacher’s annual appraisal process and programme.

We provide whole school in-house professional development approximately every two weeks. We have a carousel of contributors to these in-house workshops and meetings, with a focus on sharing good practice, samples of work, and keeping the progress of our pupils as a priority of the agenda.

We are continuing to develop better ways to understand the experience of our pupils within the learning environment, for example, by evaluating our ‘systems’ by focusing on their impact on pupil progress. This is brought together under a document known as Pathways (i.e. our systems are designed to be ‘pathways’ to pupil progress). We consider the needs of our pupils (beyond categories such as SEND or More Able) and how they might fit into various ‘distinguished groupings’ which may add value to the classroom (for example languages spoken) or require a variation in how they access the curriculum (e.g. non-fiction texts as a supplementary resource). Alongside the Distinguished Groups list we have a system to track our academic intervention for pupils in need of extra support in a specific area.

We have appointed a Key Stage 1 / Early Years Coordinator to oversee teaching in these Year groups.

Page 11

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Governors' Report (continued) For the Year Ended 31 August 2022

OUR ETHOS STRATEGY AND POLICIES (continued)

We have continued to develop our Kinetic Learning initiative which focuses on higher order skills (such as creativity, evaluation and decision making) being embedded into the academic curriculum to enable all pupils to benefit from stretch and challenge opportunities.

We are also developing better transparency with the reporting home of academic attainment, in particular recognising what is a reasonable expectation of progress and celebrating high level of progress (enhanced progress) that result from support by school and home and effort and engagement of the pupil.

The pupils are heavily involved in tracking their own progress, for example with the use of half-termly progress recording sheets in the back of exercise books. These focus on the skills present in individual subjects and identify areas for the pupils to focus on moving forward.

The external inset budget has been focused on opportunities to extend our staff professionally as well as offering new developments within the school. For example, teachers developing improved middle managements to take on roles such as English Lead in the Junior School.

Structure, governance and management

a. Constitution

St. Margarets School (Hampstead) Limited is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.

b. Governance

The Governors, who are also the charity trustees, are responsible for the overall management and control of St Margaret’s School and hold six full Governor's meetings a year. The work of implementing most of their policies is carried out by members of the Board. The St Margaret’s School Bursar is responsible for coordinating the work of the Governors and their Committees, preparation of papers and management accounts and the review of matters arising.

All trustees give of their time freely and no remuneration or expenses were paid in the year for their Governing duties.

c. Key management personnel

The Governors consider that they, together with the Principal, the Bursar and the Senior Leadership Team comprise the Key Management Personnel (see note 19 to the accounts). The Governors give their time freely and the remuneration of the Principal and senior staff is set by the Salary Committee and is kept under annual review. A number of criteria are used in setting pay:

• Nature of the role and responsibilities

• Competitor salaries in the region

• The sector average salary for comparable positions

• Trends in pay

The Governors have given delegated authority to the Principal and Bursar to pay higher salaries for exceptional candidates and exceptional staff members where this is in the interest of the School.

Page 12

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Governors' Report (continued) For the Year Ended 31 August 2022

Structure, governance and management (continued)

d. Organisational Management

The Governors determine the general policy of the School. The day-to-day running of the School is delegated to the Principal, supported by Senior staff. The Principal undertakes the key leadership role overseeing educational, pastoral and administrative functions in consultation with the Senior Leadership Team. The day-to-day administration of both Junior and Senior School is undertaken within the policies and procedures approved by the Governors.

The Principal oversees the recruitment of all educational staff, under delegated authority. The Bursar oversees the recruitment of administrative and non-teaching support staff. The Principal and Bursar are invited to attend Governors’ meetings.

e. Other Relationships

The Principal is a member of the Girls School Association which is an opportunity to share expertise, knowledge and experience across the independent school sector. The Conference also permits appropriate representation to Government and regulators of the views of the sector.

The school belongs to the London Consortium group of schools for the running and administration of the 11+ examination.

f. Risk Management

The Governors are responsible for the overseeing of the risks faced by the School. Detailed considerations of risk are delegated to the Senior Management of the School. Risks are identified, assessed and controls established throughout the year. A formal review of the charity’s risk management processes is undertaken on a termly basis. Risk is managed under the headings of financial sustainability, school safety, student welfare, employment, school trips and events and community access.

The main risks that the Governors have identified and the plans to manage those risks are:

• Reputation. The School’s success is built on its reputation for the education and well-being of our pupils. We manage this risk through safeguarding policies, staff recruitment policies, pastoral support for both pupils and staff and active identification and resolution of health and safety related issues;

• Money. Our ability to continue is reliant on pupil fees and the ability to pay bills as they fall due. This risk is managed by marketing activity, having a reputation for academic excellence and active cash-flow management;

• Curriculum. Academic excellence requires the most able teachers with good facilities delivering the curriculum to able students. We manage this risk by combining attractive salaries with additional allowances and an approach to enrolment that works with supportive parents whose children have an appetite for learning and a bursary scheme that recognises pupil achievement and aptitude.

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

Page 13

St. Margarets School {Hampstead} Limited (A Company Llmited by GLFaranteel Governors. Report Icontinuedl For the Year Ended 31 August 2022 Structure, governance and management (continued) g. Governor recruitment and training The Governing body requires breadth and depth of experience lo carry out its duties effectively and efficiently. When recruiting new Iruslees. the important allribule is 8 commitment to the School and an understanding of educalK)n as a holislic and rounded experience of personal growth. Governors are recruited by personal recommendation and are inducted into the workings ol the School and the Board by the Chairman, Bursar, and the Principal. We also invite senior local business people lo Consider joining our Board. Where possible lh& Governors consider that the ski115 and experience of the Board should comprise the following. A Governor with a lÈg81 background Two Governors with a financiallaccounling background A Govemor with education experience A Governor with senior managerial or business experience A Governor with experience of equal opportunities or disability needs Al least one female Governor and at least one male Governor One Governor may have one or more of these skills. New Governors are appointed by the existing Board of Governors. The current Governors come from a v8riely of backgrounds and include hvo solicitors, two accounlanls, 8 psychologist and a general praclilioner. One Governor is a former pupil. The majority live within a five-mile r2dius of the school. All Governors listed on page 1 have served throughout the year except where indicated. Disclosure of information to auditors Each of the persons who are Governors al the lime when this Governors, Report is approved has confirmed Ihal.. so far as that Govemor is aware, there is no relevant 8udil information of which the chariws auditors are unaware. and that Governor has tsken 211 the stèps th21 ought to have been tsken as a Govemor in order to be aware of any relevant audit information and lo establish that the charills auditors are aware of that information. Auditors The auditors, Kreston Reeves LLP. have indic8lÈd their willingness to continue in office. The designated Governors will propose a motion reappointing the auditors at a meeting of the Governors. Approved by order of the members of the board of Governors and signed on their behalf by: Chair of Govemors Dale.. Page 14

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Statement of Governors' responsibilities For the Year Ended 31 August 2022

The Governors (who are also the directors of the School for the purposes of company law) are responsible for preparing the Governors' Report and the financial statements 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. Under company law, the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the School and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Governors are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles of the Charities SORP (FRS 102);

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the School will continue in business.

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

Page 15

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Independent Auditors' Report to the Members of St. Margarets School (Hampstead) Limited

Opinion

We have audited the financial statements of St. Margarets School (Hampstead) Limited (the 'charitable company') for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 August 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council'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 significant doubt on the charitable company'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 Governors with respect to going concern are described in the relevant sections of this report.

Page 16

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Independent Auditors' Report to the Members of St. Margarets School (Hampstead) Limited (continued)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Governors are responsible for the other information contained within 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. 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

• the information given in the Governors' Report is inconsistent in any material respect with the financial statements; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Governors' Responsibilities Statement, 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.

Page 17

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Independent Auditors' Report to the Members of St. Margarets School (Hampstead) Limited (continued)

Auditors' 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 the Act and relevant regulations made or having effect thereunder.

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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the charitable company and sector, and through discussion with the Governors and other management (as required by auditing standards), we identified that the principal risks of noncompliance with laws and regulations related to safeguarding, health and safety legislation and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, Charities Act 2011, Charities Statement of Recommended Practice and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in the accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:

• Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including safeguarding, health and safety and employment law) and fraud, and review of the reports made by management; and

• Assessment of identified fraud risk factors; and

• Challenging assumptions and judgements made by management in its significant accounting estimates; and

• Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and

• Reading minutes of meetings of those charged with governance and reviewing correspondence with relevant regulatory authorities; and

• Review of significant and unusual transactions and evaluations of the underlying financial rationale supporting the transactions; and

• Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.

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

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Page 18

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Independent Auditors' Report to the Members of St. Margarets School (Hampstead) Limited (continued)

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Governors.

• Conclude on the appropriateness of the Governors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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.

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Kreston Reeves LLP

Chartered Accountants Statutory Auditor

London

Date: 24 March 2023

Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 19

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Statement of financial activities (incorporating income and expenditure account) For the Year Ended 31 August 2022

Note Income and endowments from: Donations and legacies 4 Charitable activities 5 Other trading activities 6 Investments 7 Total income and endowments Expenditure on: Raising funds 8 Charitable activities Total expenditure Net income/ (expenditure) before net gains on investments Net (losses)/gains on investments Net income / (expenditure) Transfers between funds 18 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	Unrestricted funds 2022 £ 670 2,670,156 41,138 12,583 2,724,547 10,774 2,428,889 2,439,663 284,884 (133,189) 151,695 103,515 255,210 564,484 255,210 819,694	Designated funds 2022 £ - - - 2,125 2,125 2,013 - 2,013 112 - 112 (103,515) (103,403) 6,296,500 (103,403) 6,193,097	Restricted funds 2022 £ - 123 - - 123 - - - 123 - 123 - 123 29,648 123 29,771	Total funds 2022 £ 670 2,670,279 41,138 14,708 2,726,795 12,787 2,428,889 2,441,676 285,119 (133,189) 151,930 - 151,930 6,890,632 151,930 7,042,562	Total funds 2021 £ 13,995 2,516,580 30,672 12,929
					2,574,176
					12,363 2,341,786
					2,354,149
					220,027 186,544
					406,571 -
					406,571
					6,484,061 406,571
					6,890,632

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 24 to 42 form part of these financial statements.

Page 20

St. Margarets School (Hampstead) Limited (A Company Limited by Guarantee) Registered number: 00537118

Balance Sheet As at 31 August 2022

Note Fixed assets Tangible assets 13 Investments 14 Current assets Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 17 Net assets excluding pension liability Defined benefit pension scheme liability 23 Total net assets Charity funds Restricted funds 18 Designated funds 18 Unrestricted funds 18 Total funds	40,870 562,842 603,712 (399,401)	2022 £ 6,036,224 995,784 7,032,008 204,311 7,236,319 (155,500) 7,080,819 (38,257) 7,042,562 29,771 6,193,097 819,694 7,042,562	35,112 499,958 535,070 (377,143)	2021 £ 6,139,739 1,128,260 7,267,999 157,927 7,425,926 (515,492) 6,910,434 (19,802) 6,890,632 29,648 6,296,500 564,484 6,890,632

Page 21

St. Margarets School {Hampsteadl Limited {A Company Limited by Guarantee) Registered number.. 00537118 Balance Sheet (continued) As at 31 August 2022 The enlily was entitled to exemption from audit under secllon 477 of the Companies Act 2006. The members have not reouired the entity lo obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006. However. an audit is required in accordance with section 144 of the Charities Act 2011. The Governors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financiab slatemenls. The financial statements have been prepared in accordance with the provisions applicable lo entities subject to the small companies iegime. The financial statements We￿ approved end authorised for issue by the Governors and signed on their behalf by.. Mrs E Bre Chair of Govemors Dale. ILk 10 13 The notes on pages 24 10 42 form pert of these financial slalemenls. PagÈ 22

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Statement of Cash Flows For the Year Ended 31 August 2022

Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Dividends, interests and rents from investments Purchase of tangible fixed assets Proceeds from sale of investments Purchase of investments Net cash used in investing activities Cash flows from financing activities Repayments of borrowing Net cash used in financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages 24 to 42 form part of these financial statements	2022 £ 495,615 14,708 (49,665) 19,903 (20,616) (35,670) (397,061) (397,061) 62,884 499,958 562,842	2021 £ 227,793 12,929 (71,731) 23,052 (23,052) (58,802) (432,099) (432,099) (263,108) 763,066 499,958

Page 23

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

1. General information

St. Margarets School (Hampstead) Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 18 Kidderpore Gardens, Hampstead, London, NW3 7SR.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

St. Margarets School (Hampstead) Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

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

The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2.2 Going concern

Having reviewed the resources and funding available to the school together with the expected ongoing demand for places and the school's projected cash flows, the Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future and consider that there are no material uncertainties over the school's financial viability. Thus the Governors continue to adopt the going concern basis of accounting in preparing the accounts. These considerations take into account the impact of Covid-19 and the Governors have concluded that it is appropriate to continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Trustees' Responsibilities.

Page 24

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

2. Accounting policies (continued)

2.3 Income

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

Income arises in the United Kingdom from educational and allied activities and is accounted for in the year to which it relates. Tuition fees unpaid at the balance sheet date and relating to the period to that date are brought in as income with a provision created in respect of those for which recoverability is considered to be doubtful. Fees received in advance at the balance sheet date are included in creditors as deferred income.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount.

Investment income is recognised on a receivable basis.

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure on raising funds comprises costs incurred in managing the School's investment portfolio.

Expenditure on charitable activities is all expenditure incurred on the School's operations. In addition to direct costs, these include all support costs and costs relating to the governance of the School which it is considered appropriate to allocate in full to charitable activities.

All expenditure is inclusive of irrecoverable VAT.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the School; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

Page 25

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

2. Accounting policies (continued)

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the revaluation model, tangible fixed assets whose fair value can be measured reliably shall be carried at a revalued amount, being their fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting date.

Fair values are determined from market-based evidence by appraisal undertaken by the School with reference to the most recent valuation performed for loan security purposes. If there is no marketbased evidence of fair value because of the specialised nature of the tangible fixed asset and it is rarely sold, except as part of a contributing business, a School may need to estimate fair value using an income or depreciated replacement cost approach.

Gains and losses on revaluation are recognised in the Statement of Financial Activities, with a separate revaluation reserve being shown in the Statement of funds note.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method from the date they are brought into use.

Depreciation is provided on the following bases:

Freehold property - 2% on valuation Office equipment - 33 1/3% on cost

2.7 Investments

The School's portfolio is managed professionally by Canaccord Genuity Wealth Management, in accordance with the objective of providing a balance of capital growth and income. Investments are stated at market value.

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.

2.8 Debtors

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

2.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 26

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

2. Accounting policies (continued)

2.10 Liabilities and provisions

Liabilities and provisions are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the School anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.11 Financial instruments

The School only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.12 Operating leases

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease term.

2.13 Retirement benefits

The School operates a defined contribution pension scheme provided by the 'APTIS' Aviva Pension Trust for Independent Schools and the pension charge represents the amounts payable by the School to the fund in respect of the year.

The School is also a member of a multi-employer plan, ISPS. Where it is not possible for the School to obtain sufficient information to enable it to account for the plan as a defined benefit plan, it accounts for the plan as a defined contribution plan and the contributions are recognised in the period to which they relate. The ISPS is a funded scheme and the assets are held separately from those of the school in separate trustee administered funds. The trustee commissions an actuarial valuation of the scheme every three years using the prospective unit credit method. Where the actuarial valuation reveals a shortfall of assets compared to liabilities a provision for additional agreed contribution payments is also recognised in full.

2.14 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Page 27

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

2. Accounting policies (continued)

2.15 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Governors in furtherance of the general objectives of the School and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Governors for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the School for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgment

Estimates and judgments 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.

Critical accounting estimates and assumptions:

The School makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

The present value of the Independent Schools' Pension Scheme ('ISPS') defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of the pension liability.

The carrying value of the land and buildings depends on the market values of similar property in the local area and will fluctuate according to market conditions.

Critical areas of judgment:

Pupil deposits:

A deposit is collected in respect of each pupil joining the school. This may be used to cover outstanding fees and expenses on the departure of the pupil, or retained in lieu of fees if the required notice of withdrawal is not given. As pupils are expected to remain at the school for several years and departing pupils are replaced by new students the Governors consider it is appropriate to treat all deposits are repayable after more than one year.

Page 28

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

4. Income from donations and legacies

Unrestricted funds 2022 £ Donations 670 Grants - 670	Total funds 2022 £ 670 - 670	Total funds 2021 £ 5,968 8,027
		13,995

During the current and prior year, the School received unrestricted donations of deposits from ex-pupils. In the prior year, the School also received unrestricted government grants in the form of furlough pay for staff members furloughed during the COVID-19 epidemic.

5. Income from charitable activities

Unrestricted funds 2022 £ Tuition fees and school activities 2,845,790 - Bursaries, scholarships and discounts (175,634) Net fee income 2,670,156	Restricted funds 2022 £ - - 123 123	Total funds 2022 £ 2,845,790 - (175,511)
		2,670,279

During the year the School received income in relation to Autumn 2022 fees. These have been included in deferred income (see note 17).

Tuition fees and school activities Bursaries, scholarships and discounts Net fee income	Unrestricted funds 2021 £ 2,738,981 (207,143) 2,531,838	Restricted funds 2021 £ - (15,258) (15,258)	Total funds 2021 £ 2,738,981 (222,401)
			2,516,580

Page 29

St. Margarets School (Hampstead) Limited (A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

6. Trading activities

Income from non charitable trading activities

	Unrestricted	Total	Total
	funds	funds	funds
	2022	2022	2021
	£	£	£
Other fees and hire income	41,138	41,138	30,672

All income from other trading activites in 2022 and 2021 was unrestricted.

7. Investment income

Unrestricted funds 2022 £ Income from listed investments 11,375 Interest receivable 1,208 12,583 Unrestricted funds 2021 £ Income from local listed investments 9,832 Interest receivable 1,510 11,342	Designated funds 2022 £ 2,125 - 2,125 Designated funds 2021 £ 1,587 - 1,587	Total funds 2022 £ 13,500 1,208
		14,708
		Total funds 2021 £ 11,419 1,510
		12,929

8. Investment management costs

	Unrestricted	Designated	Total
	funds	funds	funds
	2022	2022	2022
	£	£	£
Investment management fees	10,774	2,013	12,787

Page 30

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

8. Investment management costs (continued)

Investment management fees Analysis of expenditure by activities Tuition fees and school activities Tuition fees and school activities	Unrestricted funds 2021 £ 10,645 Activities undertaken directly 2022 £ 2,119,036 Activities undertaken directly 2021 £ 2,004,172	Designated funds 2021 £ 1,718 Support costs 2022 £ 309,853 Support costs 2021 £ 337,614	Total funds 2021 £ 12,363
			Total funds 2022 £ 2,428,889
			Total funds 2021 £ 2,341,786

9. Analysis of expenditure by activities

All expenditure on charitable activities in 2022 and 2021 was from unrestricted funds.

Page 31

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

9. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs Depreciation Food and catering Sport, music and art Other direct expenditure	Total funds 2022 £ 1,677,922 153,179 117,309 71,632 98,994 2,119,036	Total funds 2021 £ 1,586,356 164,296 97,608 53,751 102,161
		2,004,172

Analysis of support costs

Wages and salaries Premises and equipment Other costs Governance costs	Tuition fees and school activities 2022 £ 53,134 123,233 114,601 18,885 309,853	Total funds 2022 £ 53,134 123,233 114,601 18,885 309,853	Total funds 2021 £ 72,507 102,185 140,793 22,129
			337,614

10. Auditors' remuneration

	2022	2021
	£	£
Fees payable to the School's auditor for the audit of the School's annual
accounts	11,346	10,240

Page 32

St. Margarets School (Hampstead) Limited (A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

11. Staff costs

Wages and salaries Social security costs Pension scheme costs	2022 £ 1,396,521 157,276 177,259 1,731,056	2021 £ 1,364,987 131,653 162,223
		1,658,863

The average number of persons employed by the School during the year was as follows:

Teachers Office and domestics	2022 No. 24 14 38	2021 No. 28 14
		42

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

		2022	2021
		No.	No.
In the band £60,001	- £70,000	1	1
In the band £70,001	- £80,000	1	1
In the band £80,001	- £90,000	1	1

The total remuneration paid during the year to the five members of the senior management team, which includes the Principal, Deputy Head, the Director of Studies, Director of IT and the Bursar, was £458,545 (2021: £446,781).

12. Governors' remuneration and expenses

During the year, no Governors received any remuneration or other benefits (2021 - £NIL).

During the year ended 31 August 2022, no Governor expenses have been incurred (2021 - £NIL).

Page 33

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

13. Tangible fixed assets

Cost or valuation At 1 September 2021 Additions At 31 August 2022 Depreciation At 1 September 2021 Charge for the year At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021	Freehold property £ 6,179,556 - 6,179,556 105,500 53,143 158,643 6,020,913 6,074,056	Office equipment £ 729,038 49,665 778,703 663,355 100,037 763,392 15,311 65,683	Total £ 6,908,594 49,665
			6,958,259
			768,855 153,180
			922,035
			6,036,224
			6,139,739

On 1 September 2019, the freehold land and buildings were revalued by the Trustees.

The carrying amount under the cost model for the assets which have been revalued would have been £1,919,839 (2021 - £1,937,638).

Page 34

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

14. Fixed asset investments

Cost or valuation At 1 September 2021 Revaluations Transfers between classes At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021	Listed investments £ 1,095,096 (132,476) (30,146) 932,474 932,474 1,095,096	Cash held for investment £ 33,164 - 30,146 63,310 63,310 33,164	Total £ 1,128,260 (132,476) -
			995,784
			995,784
			1,128,260

Material investments

Those investments making up more than 5% of the total market value of the portfolio in the current or prior year were:

Schroder Asian Total RTN INV CO PLC ORD GDP Smithson Investment Trust PLC Ord GBP0.01 Fundsmith LLP Equity INC NAV Scottish Mortgage Inv Trust ORD GBP0.05	2022 £ 50,173 38,430 59,028 24,168 171,799	2021 £ 58,750 58,020 65,729 61,583 244,082

Investments at market value comprise:

			Total
	UK	Overseas	funds
	2022	2022	2022
	£	£	£
Listed investments	272,594	659,880	932,474

Page 35

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

15. Debtors

Due within one year Trade debtors Other debtors Prepayments and accrued income	2022 £ 17,900 5,239 17,731 40,870	2021 £ 22,581 2,061 10,470
		35,112

16. Creditors: Amounts falling due within one year

Bank loans Trade creditors Other taxation and social security Other creditors Accruals and deferred income	2022 £ - 2,771 - 37,752 358,878 399,401	2021 £ 43,569 10,416 36,443 369 286,346
		377,143

Deferred income represents tuition fees received in advance as follows:

Deferred income at 1 September 2021 Resources deferred during the year Amounts released from previous periods	2022 £ 272,484 343,562 (272,484)
	343,562

17. Creditors: Amounts falling due after more than one year

Bank loans Other creditors	2022 £ - 155,500 155,500	2021 £ 353,492 162,000
		515,492

Page 36

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

18. Statement of funds

Statement of funds - current year

Unrestricted funds General Fund Restricted funds Salti Bursary Designated funds Morton Scholarship Fund Fixed Asset Reserve Revaluation Reserve Total of funds	Balance at 1 September 2021 £ 564,484 29,648 156,761 1,875,965 4,263,774 6,296,500 6,890,632	Income £ 2,724,547 123 2,125 - - 2,125 2,726,795	Expenditure £ (2,439,663) - (2,013) - - (2,013) (2,441,676)	Transfers in/out £ 103,515 - - (103,515) - (103,515) -	Gains/ (Losses) £ (133,189) - - - - - (133,189)	Balance at 31 August 2022 £ 819,694
						29,771
						156,873 1,772,450 4,263,774
						6,193,097
						7,042,562

Restricted funds

The Salti Bursary was established to provide a scholarship to a single student to ensure the highest probability of their success for their full education at the school.

Designated funds

The Morton scholarship fund was established to reflect the wishes of a donor that some of her donation be used to provide scholarships and bursaries to future pupils. The school board has agreed that any increase of the fund over the value of £156,892 will be transferred to the unrestricted funds to assist the cost of the Morton bursaries.

The Fixed Asset Reserve was established in accordance with Charity Commission guidance to separately identify the value of the fixed assets held by the school. Transfers represent net movements on fixed assets in the year.

Page 37

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

18. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds General Fund Restricted funds Salti Bursary Designated funds Morton Scholarship Fund Fixed Asset Reserve Revaluation Reserve Total of funds	Balance at 1 September 2020 £ 49,959 44,906 156,892 1,968,530 4,263,774 6,389,196 6,484,061	Income £ 2,723,012 - 1,587 - - 1,587 2,724,599	Expenditure £ (2,487,596) (15,258) (1,718) - - (1,718) (2,504,572)	Transfers in/out £ 92,565 - - (92,565) - (92,565) -	Gains/ (Losses) £ 186,544 - - - - - 186,544	Balance at 31 August 2021 £ 564,484
						29,648
						156,761 1,875,965 4,263,774
						6,296,500
						6,890,632

Page 38

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted funds 2022 £ Tangible fixed assets - Fixed asset investments 838,911 Current assets 573,941 Creditors due within one year (399,401) Creditors due in more than one year (155,500) Provisions for liabilities and charges (38,257) Total 819,694	Designated funds 2022 £ 6,036,224 156,873 - - - - 6,193,097	Restricted funds 2022 £ - - 29,771 - - - 29,771	Total funds 2022 £ 6,036,224 995,784 603,712 (399,401) (155,500) (38,257) 7,042,562

Analysis of net assets between funds - prior year

Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Creditors due in more than one year Provisions for liabilities and charges Total	Unrestricted funds 2021 £ - 971,499 505,422 (377,143) (515,492) (19,802) 564,484	Designated funds 2021 £ 6,139,739 156,761 - - - - 6,296,500	Restricted funds 2021 £ - - 29,648 - - - 29,648	Total funds 2021 £ 6,139,739 1,128,260 535,070 (377,143) (515,492) (19,802) 6,890,632

Page 39

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

20. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Gains/(losses) on investments Dividends, interests and rents from investments Increase in debtors Increase/(decrease) in creditors Increase/(decrease) in provisions Net cash provided by operating activities 21. Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents 22. Analysis of changes in net debt At 1 September 2021 £ Cash at bank and in hand 499,958 Debt due within 1 year (43,569) Debt due after 1 year (353,492) 102,897

2022 2021 £ £ 151,930 406,571 153,180 164,296 133,189 (185,600) (14,708) (12,929) (5,758) (20,646) 59,327 (121,546) 18,455 (2,353) 495,615 227,793 2022 2021 £ £ 562,842 499,958 562,842 499,958 Cash flows At 31 August 2022 £ £ 62,884 562,842 43,569 - 353,492 - 459,945 562,842

23. Pension commitments

The School's employees belong to two principal pension schemes: one for academic and related staff and one for non-teaching staff. Academic and related staff are now in the Aviva Pension Trust for Independent Schools (APTIS), a defined contribution scheme. Non-teaching staff are in the Independent Schools' Pension Scheme (ISPS), which is managed by TPT Retirement Solutions.

Page 40

St. Margarets School (Hampstead) Limited (A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

23. Pension commitments (continued)

Aviva Pension Trust for Independent Schools (APTIS)

The pension charge for the year includes contributions payable to APTIS of £162,223 (2021: £162,223) and at the year-end £nil (2021 - £nil) was accrued in respect of contributions to this scheme.

TPT Retirement Solutions - Independent Schools' Pension Scheme (the scheme)

The School participates in the scheme, a multi-employer scheme which provides benefits to some 61 nonassociated employers. ISPS is a contracted-out of the State scheme. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2020. This actuarial valuation was certified on 22 December 2021 and showed assets of £201.1m, liabilities of £256.3m and a deficit of £55.2m. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the scheme from 1 September 2022 to 30 June 2032 in the sum of £2,687,000 pa (payable monthly and increasing by 3% on each 1st September). The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.

During the year, the School was required to contribute deficit payments of £2,424 (2021 - £2,353). From 1 September 2022 to 30 June 2032 the School is required to contribute £4,190 pa (payable monthly and increasing by 3% on each 1st September).

In accordance with FRS 102, the School must recognise a liabililty measured at the present value of the contributions payable that arise from the deficit recovery agreement. The value of the provision recognised at 31 August 2022 is £38,257 (2021 - £22,492).

24. Operating lease commitments

At 31 August 2022 the School had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year Later than 1 year and not later than 5 years	2022 £ 7,673 14,068 21,741	2021 £ 7,673 21,742
		29,415

Lease payments recognised as an expense in the year were £7,673 (2021: £7,673)

Page 41

St. Margarets School (Hampstead) Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 August 2022

25. Members' liability

The school is a charitable company limited by guarantee. The members of the charitable company are the Governors names on page 1. Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.

26. Related party transactions

Dr A Wayne, a governor, was paid the sum of £360 (2021 - £NIL) for providing staff flu vaccinations. There was no balance outstanding at the end of the current or prior year.

Mrs M Wayne, a governor, was paid a sum of £354 (2021 - £NIL) for invigilation services. There was no balance outstanding at the end of the current or prior year.

Page 42