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2024-08-31-accounts

ARNOLD HOUSE SCHOOL LIMITED (A Company Limited by Guarantee)

FINANCIAL STATEMENTS

YEAR ENDED

31 AUGUST 2024

HaysMac LLP Chartered Accountants Registered Auditors

Registered Company Number: 00889424 Registered Charity Number: 312725

ARNOLD HOUSE SCHOOL LIMITED

REFERENCE AND ADMINISTRATIVE INFORMATION

DIRECTORS

The Directors of the company who served during the year and since year end were:

Rev Dr A K Bergquist H M Burgess C M S Douglass E J De Freitas M A Sahni G J Savage M Grenier S. Honey J H Zehner T Nicholson (Appointed October 2023) J Stowell (Appointed October 2023) L.L Newton (Appointed October 2024) REGISTERED OFFICE 1 Loudoun Road St John’s Wood London NW8 0LH AUDITORS HaysMac LLP Chartered Accountants 10 Queen Street Place London EC4R 1AG BANKERS The Royal Bank of Scotland Plc 48 Haymarket London SW1Y 4SE SOLICITORS Veale Wasbrough Vizards 24 King William Street London EC4R 9AT KEY PERSONNEL Headmaster G Tollit Bursar/Company Secretary E Winter (From 8 February 2024) M Davis (31 August 2024 to 7 February 2024) Deputy Headmaster (Academic) J Hill Deputy Headmaster (Pastoral) S Stones Head of Pre-Prep V McKenzie REGISTERED COMPANY NUMBER : 00889424 REGISTERED CHARITY NUMBER : 312725

1

ARNOLD HOUSE SCHOOL LIMITED

GOVERNORS' REPORT

FOR THE YEAR ENDED 31 AUGUST 2024

The Governors, who are also directors of the company and charity trustees, have pleasure in submitting their report and audited financial statements for the year ended 31 August 2024.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Arnold House School Limited is a company limited by guarantee and a Registered Charity governed by its Memorandum and Articles of Association.

New Governors are appointed by the Governing Body on the recommendation of a nominations committee selected by the Chair. Suitable candidates are sought to meet the need to maintain the best possible balance of relevant skills, expertise and experience on the School’s Governing Body. The Finance Committee meets at least once a term to receive updates from the Headmaster and Bursar, to review the School’s finances and make recommendations to the full Board of Governors. The Governing Body reviews the recommendations of the Finance Committee which are considered and approved, major issues discussed and policy decisions agreed. Visits from Governors to the School to observe lessons and be updated by the Headmaster, Bursar and Senior staff occur at least termly. Termly meetings also occur between designated Governors, the Academic and Pastoral committees, Health and Safety and Fundraising Development representatives. Governors are encouraged to regularly attend external training courses. Regular updates come from the Clerk and AGBIS.

The Governors determine the general policy of the School. The day-to-day management of the School is delegated to the Headmaster, Bursar, the two Deputy Headmasters and the Head of Pre-Prep. Remuneration of these key management personnel is set by the Board, in conjunction with the Headmaster, for the Bursar, Deputy Headmasters and Head of Pre-Prep, using a number of criteria such as nature of role and responsibilities, sector salaries as indicated by various benchmarks, and other market reports, cost of living increases and trends in pay.

OBJECTIVES AND ACTIVITIES

The Company, which is constituted as an Educational Charitable Trust, has continued its business of providing preparatory school education throughout the year. The School’s primary objective is to educate boys aged 4 to 13 in the broadest sense and to equip them with the academic skills, confidence and well roundedness that ensures they flourish at their chosen senior schools and beyond.

We aim to:

OBJECTS

To acquire and carry on in the United Kingdom any boarding or day school or schools for the education of children of either sex or both sexes.

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ARNOLD HOUSE SCHOOL LIMITED

GOVERNORS' REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2024

2023/24 Achievements and Performance

Academic performance was strong, whether that was in senior school admissions assessments or within the mainstream academic subjects: Arnold House boys placed highly in the Junior Maths Challenge and the Townsend Warner History Prize, as well as winning plaudits in events for Debating, Story Writing and a Poetry Slam.

Many off-site visits offered the boys first-hand experiences to enrich their learning. Trips were taken to Verulamium, Kew Gardens, Regents Park Mosque, various theatre trips, museums, including a Genetics exhibition. We also held a wide programme of workshops to build on knowledge gained in the classroom, as well as personal development: in Science (Electricity, Forensics), History (Ancient Egypt, Victorian life, Great Fire of London), Maths, Mental Wellbeing, Teamwork and Travel Safety.

The sports programme was especially strong and at the end of the football season, we once again celebrated that AH teams are more often victorious than not, winning almost 60% of our matches; team of the season was a tie between the 1[st] XI and the Colts B team. The team sports of football, rugby, hockey, cricket and tennis were enhanced by cross country, basketball, swimming, golf, riding, and athletics.

Book Week was a resounding success, with boys of all ages enjoying stories, workshops and a dress-up day. During our dedicated Mental Health Week, we explored themes of well-being, fostering open communication and providing valuable resources to help our young men recognise healthy habits. Our Citizenship week focused on how boys can contribute to their communities: at school, at home and in the wider world. Our ongoing charitable activities raised substantial funds for our charity partners, chosen by the boys: St John’s Hospice, Sufra Food Bank and Refugee Education UK.

Music and Drama continue to play a vital part of school life, providing all boys with regular opportunities to perform: all year groups perform a play, with Year 7 participating in the Schools Shakespeare Festival. We also enjoyed a total of nine musical concerts across the year.

Residential trips remain an important part of our curriculum: Year 8 enjoyed a French Trip to Burgundy, a sports trip to Belfast and a visit to the battlefields of Belgium and France; Year 7 visited the Bay of Naples; Years 5 and 6 embarked on a memorable educational expedition to Devon. Year 4 held an overnight camp at Canons Park after a day of team-building activities.

2024 Leavers’ Destinations

At 13+

At 11+

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ARNOLD HOUSE SCHOOL LIMITED

GOVERNORS' REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2024

Arnold House continues to collaborate with a number of schools: a partnership with Queens College Prep School has begun, providing a platform for shared events and workshops. Staff training with other schools was a great success and our Canons Park facilities are available for community use especially for Sports events; schools include Christ Church Primary School in Camden and Sarum Hall. Bursaries (100%) continue to be provided for pupils in Years 5 to 8.

A very successful calendar of community events included a parents Quiz Night, the Summer Fair, sports festivals each term and many events for parents on site through the year. Our 24hr fundraising Dramathon saw us reach our target in support of the refurbishment of the theatre.

Bursaries

We have provided five 100% bursary places this year funded through a combination of the School’s fee income and donations from the Arnold House community.

Bursaries were given in the year to the value of £124,665 (2023: £163,884).

The Family Fund:

The School was extremely grateful for the generosity shown by our community in supporting those AH families whose income was affected by Covid-19. In the year to 31 August 2024 a total of £21,810 (2023: £28,508) was raised which will go towards fee assistance for those in need.

Public Benefit

The Governors confirm that they have complied with the duty of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the School.

Locally, relationships have been developed with Sarum Hall and Queens College Prep School. Both schools made use of the facilities at Canons Park for their Sports Day. The school continues to support St John’s Wood Church, St Cyprian’s and St John’s Hackney and the boys and parents took part in the annual Christmas Gift Bag drive which continues to be a huge success. The School has also continues to develop a relationship with a local Food Bank - Sufra NW London and has completed a number of successful Food Drives throughout the year. More recently a relationship is being developed with Refugee Education UK and funds were raised by the community towards the launch of a new education hub in Harlesden. During the course of the year, the school donated classroom furniture and teaching aids to Child Action Lanka in Sri Lanka as well as donating soft furnishings, a book corner and books to a local school.

Raising money for charity:

Over the year, the boys, staff and parents raised awareness and support for a number of charities, including St John's Hospice, Sufra Food Bank and REUK. Activities performed to raise charity funds included:

The total raised for charity this academic year was: £15,928 through the following termly activities:

Charity Money Raised Charity Money Raised
Charity Organisation 2023-2024 2022-2023
St John's Hospice £4,884 £200
REUK £6,787 £5,735
Combined charities - £7,472
Sufra NW London £4,257 £6,525
Total £15,928 £19,932

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ARNOLD HOUSE SCHOOL LIMITED

GOVERNORS' REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2024

FINANCIAL REVIEW

The School’s main income is from fees which amounted to £9,475,146 (2023: £8,858,140) in the year, a 7% increase due to higher student numbers and a 6.5% rise in fees. Bursaries and staff fee discounts amounted to £157,911 (2023: £195,102).

Parents, old boys and others associated with the School made donations of £61,573 (2023: £62,065) in the year, which includes donations of £6,665 (2023: £12,657) to the bursary fund. Following funding of £60,102 (2023: £109,256) for bursaries in the year the closing balance on the bursary fund was £100,000).

School operating costs increased by 7.4% in the year to £9,091,371 (2023: £8,464,913). Staff costs were £5,052,887 (2023: £4,593,810). The increase is due mainly to increase in employees, salary awards and one-off payments. Other cost increases were mainly due to general inflationary uplifts. An increase in interest rates resulted in higher interest payments during the year.

The net income from operations for the year was £578,784 (2023: £544,721). The School aims to achieve an annual surplus to ensure that there are sufficient reserves to manage the School on a prudent financial basis and to provide funds for future capital expenditure.

Reserves Policy

The Governors review the reserves policy annually. The key objective of the policy is to ensure the long-term financial stability of the School whilst maintaining sufficient liquid reserves to meet short-term financial obligations in the event of unexpected income shortfall or unforeseen expenses.

As at 31 August 2024, the total funds of the School were £11,431,102 (2023: £10,852,318) made up of unrestricted funds of £11,224,564 (2023: £10,579,260) and restricted funds of £206,538 (2023: £273,058). The movement in funds are shown in note 13 to the accounts.

At the year end free reserves, calculated as unrestricted funds less net book value of fixed assets, amounted to a negative balance of £1,552,707 (2023: negative balance of £2,549,954). This negative position is a consequence of the strategic decision made in 2021 to purchase the pre-prep building at Marlborough Place. The purchase was financed partly through reserves and partly through a £4,900,000 bank loan. The Governors are committed to building up reserves over the long-term whilst continuing to invest in the ongoing development of the School’s educational provision and infrastructure.

The Governors have determined that the School should hold minimum cash reserves equivalent to approximately three months budgeted operating expenditure. The Governors regularly monitor the School’s cash position to ensure compliance with the minimum target. The year-end cash balance was £6,428,690 (2023: £4,213,074) exceeding the minimum reserves requirement in both years.

Risk Review

The Governors have assessed the major risks to which the School is exposed and are satisfied that systems are in place to mitigate the School’s exposure to the major risks. Such risks are reviewed on a regular basis in order to mitigate any impact that they may have on the School in the future.

The Governors consider that the major risks to which the School is currently exposed are:

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ARNOLD HOUSE SCHOOL LIMITED

GOVERNORS' REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2024

The key controls include:

Fundraising

The charity has not made any fundraising appeals to the general public during the year, and is unlikely to do so in the future. There has been no outsourced fund raising via professional fundraisers or other third parties. As a result, the charity is not registered with the fundraising regulator and received no fundraising complaints in the year.

PLANS FOR THE FUTURE

For the start of the 2024/25 academic year, Senior Management roles were reviewed and refocused. Going forward, the Senior Management Team will consist of:

The new senior management responsibilities will continue to ensure the best possible outcomes for every boy, through policy development and implementation, using pupil voice and monitoring progress towards our aims.

A new Head of Safeguarding has also been appointed and a new Safeguarding team will be established; the CPOMS online platform will be established to bring the quality of record-keeping and the transfer of information to the highest level.

In 2024/25, we will also expect to undertake:

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ARNOLD HOUSE SCHOOL LIMITED

GOVERNORS' REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2024

STATEMENT OF GOVERNORS’ RESPONSIBILITIES

The Governors (who are also directors of Arnold House School Limited for the purposes of company law) are responsible for preparing the Governors' Report incorporating the Strategic 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 which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Governors are required to:

The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time of the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as we are aware:

AUDITORS

On 18 November 2024 the company’s auditor changed its name from Haysmacintyre LLP to HaysMac LLP.

HaysMac LLP have expressed their willingness to continue in office as auditors and a resolution proposing their re-appointment will be submitted at the Annual General Meeting.

Governors’ Report, incorporating a Strategic Report, approved by the Board of Governors on 15 May 2025 and signed on its behalf by:

M Sahni Chair of Finance Committee Date: 15 May 2025

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

OF ARNOLD HOUSE SCHOOL LIMITED

Opinion

We have audited the financial statements of Arnold House School Limited for the year ended 31 August 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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.

Other information

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

OF ARNOLD HOUSE SCHOOL LIMITED

Matters on which we are required to report by exception

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

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

Responsibilities of Governors for the financial statements

As explained more fully in the Statement of Governors’ Responsibilities set out on page 8, the Governors (who are also the directors of the charitable company for the purposes of company law and trustees for the purposes of charity 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 trustees 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.

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:

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to The Education (Independent School Standards) Regulations 2014, safeguarding regulations, health and safety law, GDPR, employment law and charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011, the Statement of Recommended Practice for Charities (SORP 2019) and payroll tax.

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding

9

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

OF ARNOLD HOUSE SCHOOL LIMITED

irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

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

Tracey Young (Senior Statutory Auditor) For and on behalf of HaysMac LLP, Statutory Auditors

10 Queen Street Place London EC4R 1AG

Date: 22 May 2025

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ARNOLD HOUSE SCHOOL LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating the Income and Expenditure Account)

FOR THE YEAR ENDED 31 AUGUST 2024

Unrestricted Restricted Total Total
Funds Funds Funds Funds
2024 2024 2024 2023
Notes £ £ £ £
INCOME FROM:
Charitable activities:
School fee income 3
9,475,146		 - 9,475,146 8,858,140
Other ancillary income 11,147 - 11,147 13,173
Other trading activities:
Rental income 21,407 - 21,407 16,434
Investment income 4 90,623 - 90,623 39,560
Donations and grants 5 33,098 28,475 61,573 62,065
Other Income 10,259 10,259 20,262
---------------------- ------------------- --------------------- ---------------------
TOTAL INCOME 9,641,680 28,475 9,670,155 9,009,634
=========== ========= ========== ==========
EXPENDITURE ON:
Charitable activity:
School Operating Costs:
Teaching costs 4,971,400 - 4,971,400 4,468,242
Welfare costs 573,528 - 573,528 534,410
Premises costs 2,113,122 - 2,113,122 1,942,299
Support costs of schooling 1,000,014 - 1,000,014 999,219
Grants, awards and prizes 13,725 94,995 108,720 150,142
--------------------- ----------------- --------------------- ---------------------
8,671,789 94,995 8,766,784 8,094,312
Raising funds:
Fundraising costs 56,602 - 56,602 111,203
Finance costs 267,985 - 267,985 259,398
--------------------- ------------------ --------------------- ---------------------
TOTAL EXPENDITURE 6 8,996,376 94,995 9,091,371 8,464,913
=========== ========= =========== ===========
NET MOVEMENT IN FUNDS 645,304 (66,520) 578,784 544,721
BALANCE BROUGHT FORWARD
AT 1 SEPTEMBER 2023 10,579,260 273,058 10,852,318 10,307,597
--------------------- -------------------- --------------------- ---------------------
BALANCE CARRIED FORWARD
AT 31 AUGUST 2024 13 £11,224,564 £206,538 £11,431,102 £10,852,318
=========== ========= =========== ===========

All disclosures relate only to continuing operations.

All recognised gains and losses are shown in the Statement of Financial Activities. The comparative Statement of Financial Activities is shown in Note 21. The notes on pages 15 to 25 form part of these financial statements.

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Registered Company Number: 00889424

ARNOLD HOUSE SCHOOL LIMITED

BALANCE SHEET

AS AT 31 AUGUST 2024

Notes 2024 2023
£
£		 £
£
FIXED ASSETS
Tangible fixed assets 8 12,777,271 13,129,214
-------------------- --------------------
12,777,271 13,129,214
CURRENT ASSETS
Stock 5,019 5,019
Debtors 9 2,130,153 2,015,480
Cash at bank and in hand 6,428,690 4,213,074
--------------------- ---------------------
8,563,862 6,233,573
CREDITORS: Amounts falling due
within one year 10 (4,985,321) (3,988,285)
--------------------- ---------------------
NET CURRENT ASSETS 3,578,541 2,245,288
-------------------- --------------------
TOTAL ASSETS LESS CURRENT
LIABILITIES 16,355,812 15,374,502
CREDITORS: Amounts falling due
after one year 11 (4,924,710) (4,522,184)
--------------------- ---------------------
TOTAL NET ASSETS £11,431,102 £10,852,318
=========== ===========
FUNDS
Unrestricted 13 11,224,564 10,579,260
Restricted 13 206,538 273,058
--------------------- ---------------------
£11,431,102 £10,852,318
=========== ===========

The financial statements were approved and authorised for issue by the board on 15 May 2025 and were signed below on its behalf by:

………………………. M Sahni Governor Date: 15 May 2025

The notes on pages 15 to 25 form part of these financial statements.

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ARNOLD HOUSE SCHOOL LIMITED

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 AUGUST 2024

2024 2024 2023
£ £ £ £
Reconciliation of net cash inflow from
operations
Net movement in funds 578,784 544,721
Depreciation 626,359 608,736
Interest received (90,623) (39,560)
Interest paid 267,985 259,398
Increase in debtors (114,673) (71,238)
Decrease in creditors (126,678) 354,438
--------------------- ---------------------
Net cash flow from operations 1,141,154 1,656,495
Cash flows from investing activities
Interest received 90,623 39,560
Purchase of tangible assets (274,416) (479,693)
--------------------- -------------------
Net cash (used in)/provided by investing activities (183,793) (440,133)
Cash flows from financing activities
Loan repayments (712,728) (942,688)
Interest paid (267,985) (259,398)
--------------------- -------------------
Net cash used in financing activities (980,713) (1,202,086)
Fees in advance -
Fees In Advance Fund 2,238,968 -
--------------------- -------------------
Net cash provided by fees in advance 2,238,968 -
--------------------- -----------------------
Increase in cash 2,215,616 14,276
Cash and cash equivalents at the beginning of
the period 4,213,074 4,198,798
----------------------- -----------------------
Cash and cash equivalents at the end of the
period £6,428,690 £4,213,074
=========== ===========
Analysis of cash and cash equivalents
Cash at bank £6,428,690 £4,213,074
=========== ===========
Analysis of changes in net funds At 1 Cash flows Other At 31 August
September movements 2024
2023
£ £ £ £
Cash and cash equivalents 4,213,074 2,215,616 -
6,428,690
Fees in advance - (2,238,968) - (2,238,968)
Short term borrowings (69,866) 712,728 (706,957)
(64,095)
Long term borrowings (3,780,183) - 706,957
(3,073,226)
--------------------- --------------------- --------------------- ---------------------
Net funds £363,025 £689,376 - £1,052,401
========== ========== ========== ==========

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ARNOLD HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

1. ACCOUNTING POLICIES

Accounting Convention

The accounts have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”), the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”) – effective 1 January 2019. The financial statements are prepared under the historical cost convention. The Charity is a Public Benefit Entity as defined by FRS102.

Going concern

Having reviewed the funding facilities available to the School together with the expected ongoing demand for places and the School's future projected cash flows, the Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis. The Governors do not consider there to be any material uncertainties relating to going concern.

Significant judgments and sources estimation uncertainty

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

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

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

Income

Fees receivable represent fees less bursaries and allowances, and other income derived from the School’s continuing activities and are recognised as the service is provided.

Donations are accounted for on a receivable basis, when the conditions of entitlement, probability and measurement are met. Those received under Gift Aid are grossed up for the tax recoverable.

Investment income from bank balances and fixed interest securities is accounted for on an accruals basis.

Expenditure

Expenditure is accounted for on an accruals basis as soon as a liability is considered probable.

Expenditure is allocated to expense headings either on a direct cost basis or apportioned according to time spent. Governance costs comprise the costs of running the charity, including strategic planning for its future development, external audit, any legal advice for the School’s Governors, and all the costs of complying with constitutional and statutory requirements, such as the costs of Board and Committee meetings and of preparing statutory accounts and satisfying public accountability.

Employment benefits, including holiday pay, are recognised in the period in which they are earned. Termination benefits are recognised in the period in which the decision is made and communicated to the relevant employee(s).

14

ARNOLD HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

1. ACCOUNTING POLICIES (continued)

Tangible fixed assets and depreciation

All fixed assets with a cost of more than £1,000 are capitalised at cost including those purchased from donations received for that purpose. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost of each asset evenly over its expected useful life as follows:-

Freehold property - 2½-20% per annum
Leasehold property - over the term of the lease
Fixtures, fittings and equipment - 20% per annum
Computer equipment - 331/3% per annum
Motor vehicles - 25% per annum

Costs relating to No 1 and No 3 Loudoun Road, are being amortised on a straight-line basis over the duration of the respective leases.

Financial instruments

Basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable are accounted for on the following basis:

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts.

Debtors and creditors

Debtors and creditors are measured at the transaction price less any provision for impairment. Any losses arising from impairment are recognised as expenditure.

Pension

The teaching staff are members of the Department for Education’s superannuation scheme, run by Teacher’s Pensions. This is a multi-employer defined benefit scheme where the School is unable to identify its share of the underlying assets and liabilities. The scheme has been accounted for as defined contribution scheme as permitted by section 28 of FRS102 and contributions are accounted for when advised as due.

Other pension costs charged in the accounts for defined contribution schemes represent the contributions payable by the School during the year.

Leases and hire purchase contracts

Rentals paid under operating leases are charged to the Statement of Financial Activities evenly over the period of the lease.

Fees Received in Advance Fund

Fees that are received in advance based on signed agreement between the school and parents are recognised as a liability. These fees will be recognised in the year when the fees are utilised by the pupils.

Funds

Unrestricted Funds comprise the accumulated surplus or deficit from the Statement of Financial Activities which are available for use at the discretion of the Governors in furtherance of the general objectives of the School.

Restricted funds comprise monies raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions.

15

ARNOLD HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 AUGUST 2024

2. STATUS

The company is constituted as an Educational Charitable Trust (Charity Registered number 312725) and is limited by guarantee (Company Registration number 0889424). The liability of each member is limited to an amount not exceeding £1. The members are the Governors of the School. At 31 August 2024 the number of members were 11, and at the date of approval of the accounts the number was 12. The School’s registered office address is: 1 Loudoun Road, St John’s Wood, London, NW8 0LH.

3. FEE INCOME 2024 2023
£ £
Gross tuition fees 9,117,836 8,528,611
Less: bursaries (124,665) (163,884)
Less: staff discounts (33,246) (31,218)
-------------------- --------------------
8,959,925 8,333,509
Add: bursaries funded by restricted funds 60,102 109,256
-------------------- --------------------
Net tuition fees 9,020,027 8,442,765
Registration fees 22,780 15,500
Other fees and extras 432,339 399,875
--------------------- ---------------------
£9,475,146 £8,858,140
=========== ===========
4. INVESTMENT INCOME 2024 2023
£ £
Interest receivable 90,623 39,560
----------------- -----------------
£90,623 £39,560
======== ========
5. DONATION AND GRANT INCOME 2024 2023
£ £
Bursary fund donations 6,665 12,657
Family fund donations 21,810 28,508
Other donations 33,098 20,900
----------------- -----------------
£61,573 £62,065
======== ========

16

ARNOLD HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 AUGUST 2024

6
TOTAL EXPENDITURE (2024)
Staff
Other
Costs
£
Costs
£
Charitable activity:
Teaching costs
4,171,260
800,140
Welfare costs
-
573,528
Premises costs
226,189
1,260,574
Support costs of schooling
625,604
374,410
Grants, awards and prizes
-
108,720
Raising funds:
Fundraising costs
29,834
26,768
Finance Costs - Interest payable
-
267,985
£5,052,887
£3,412,125

Governance included in support costs:
Auditors’ remuneration – audit of the financial statements (including VAT)
Auditors’ remuneration – preparation of the financial statements (including VAT)
TOTAL EXPENDITURE (2023)
Staff
Other
Costs
Costs
Charitable activity
£
£
Teaching costs
3,760,550
707,692
Welfare costs
-
534,410
Premises costs
188,787
1,144,776
Support costs
614,038
385,181
Grants, awards & prizes
-
150,142
Raising funds
Fundraising costs
30,435
80,768
Finance costs - interest payable
-
259,398
----------------------
--------------------
£4,593,810
£3,262,367
===========
==========
7.
STAFF COSTS
The average number of employees during the year
excluding Governors was:
Teachers
Non-teachers		 Depreciation
£
-
-
626,359
-
-
-
-
£626,359
2024
£
22,100
2,820
Depreciation
£
-
-
608,736
-
-
-
-
-------------------
£608,736
=========
2024
66
16
---------------
82
=======		 Total
2024
£
4,971,400
573,528
2,113,122
1,000,014
108,720
56,602
267,985
£9,091,371
2023
£
20,640
2,580
Total
2023
£
4,468,242
534,410
1,942,299
999,219
150,142
111,203
259,398
--------------------
£8,464,913
==========
2023
65
16
---------------
81
=======

17

ARNOLD HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 AUGUST 2024

STAFF COSTS (continued) 2024 2023
£ £
Staff costs during the year amounted to:
Wages and salaries 4,032,625 3,674,093
Social security costs 388,664 353,159
Other pension costs 631,598 566,558
--------------------- ---------------------
£5,052,887 £4,593,810
=========== ===========
2024 2023
Number Number
The number of employees where emoluments exceeded £60,000 were:
£60,000 - £70,000 10 7
£70,000 - £80,000 3 6
£80,000 - £90,000 1 -
£90,000 -£100,000 1 2
£150,000 - £160,000 1 2
====== ======

Total remuneration of key management personnel for the year ended 31 August 2024 was £660,078 (2023: £594,672). During the year there were redundancy or termination payments totalled £18,896 (2023: £83,032).

No remuneration is payable to any Governors. No expenses were reimbursed to governors in the year (2023: £Nil).

8 TANGIBLE FIXED ASSETS

COST
At 1 September 2023
Additions
At 31 August 2024
DEPRECIATION
At 1 September 2023
Charge for year
At 31 August 2024
NET BOOK VALUE
At 31 August 2024
At 1 September 2023		 Land and
buildings
£
20,163,012
111,556
20,274,568
7,307,076
536,771
7,843,847
£12,430,721
£12,855,936		 Fixtures
Fittings and
Computer
Equipment
£
1,619,919
162,860
1,782,779
1,346,641
89,588
1,436,229
£346,550
£273,278		 Motor
Vehicles
£
68,579
-
68,579
68,579
-
68,579
-
-		 Total
£
21,851,510
274,416
22,125,926
8,722,296
626,359
9,348,655
£12,777,271
£13,129,214

ARNOLD HOUSE SCHOOL LIMITED

18

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 AUGUST 2024

8. TANGIBLE FIXED ASSETS (continued) 2024 2023
£ £
Land and buildings at net book value
comprise
Freehold property 10,953,453 11,230,216
Leasehold property 1,477,268 1,625,720
--------------------- ---------------------
£12,430,721 £12,855,936
=========== ===========
9. DEBTORS 2024 2023
£ £
Fees and charges receivable 1,821,782 1,846,474
Other debtors 39,252 -
Prepayments and accrued income 269,119 169,006
--------------------- ---------------------
£2,130,153 £2,015,480
========== ==========
10. CREDITORS: Amounts falling due within one year 2024 2023
£ £
Bank loan (see note 12(a)) 64,095 69,866
Trade creditors 252,793 370,221
Fees received in advance of autumn term 3,162,024 3,136,223
Fees In Advance Fund (Note 12(b)) 1,140,484 -
Fee deposits 89,000 56,000
Other creditors 114,797 67,882
Accruals 68,554 200,617
Social security and other taxes 93,574 87,476
-------------------- --------------------
£4,985,321 £3,988,285
========== ==========

19

ARNOLD HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 AUGUST 2024

11. CREDITORS: Amounts falling due after one year 2024 2023
£ £
Fee deposits 753,000 742,000
Fees In Advance Fund (see note 12(b)) 1,098,484 -
Bank loan (see note 12(a)) 3,073,226 3,780,183
------------------- -------------------
£4,924,710 £4,522,183
========= =========
12(a) BANK LOANS 2024 2023
£ £
Bank loan maturity analysis
Amounts falling due within one year 64,094 69,866
Amounts falling due 1-2 years 68,933 75,290
Amounts falling due 2-5 years 239,624 262,789
Amounts falling due more than 5 years 2,764,669 3,442,104
------------------- -------------------
£3,137,320 £3,850,049
========= =========

The School obtained a bank loan of £4,900,000 on 25 November 2021 in order to finance the purchase of Marlborough House, 38 Marlborough Place, NW8 0PE. The loan is repayable in 288 consecutive monthly instalments representing principal and interest commencing on 25 December 2022. The rate of interest payable on the loan is the Base Rate plus an interest margin of 2.30% per annum. The final repayment date is 25 November 2045.

The School made a voluntary overpayment of £650,000 (2023: £750,000) during the year.

As part of the terms of the loan, Lloyds Bank have first legal charges over the freehold land and buildings at Arnold House School and at Marlborough House.

12 (b) FEES IN ADVANCE FUND

Under the School’s fees in advance fund, contributors may enter into a contract to pay to the school tuition fees in advance. The liability is valued at the balance sheet date but has been allocated assuming that students will remain in the school for the normal duration.


advance. The liability is valued at the balance sheet date but
the school for the normal duration.
has been allocated assuming that students
will remain in
2024 2023
**Fees in advance maturity analysis: **
£ £
Above 5 Years 109,953 -
Between 2 to 5 years 347,325 -
Between 1 to 2 years 641,206 -
------------------- -------------------
1,098,484 -
Within 1 year 1,140,484 -
------------------- -------------------
£2,238,968 -
============= =========

The above balance represents only new fees in advance agreements entered into in the current year.

.

20

ARNOLD HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 AUGUST 2024

13. FUNDS (2024) Balance at Balance at
1 September Income Expenditure 31 August
2023 2024
£ £ £ £
Unrestricted funds
General funds 10,579,260 9,641,680 (8,996,376) 11,224,564
Restricted funds
Bursary fund 153,437 6,665 (60,102) 100,000
Family fund 79,883 21,810 (34,893) 66,800
School equipment fund 39,738 - - 39,738
--------------------- ------------------------ ------------------------ ---------------------
£10,852,318 £9,670,155 £(9,091,371) £11,431,102
=========== ============ ============ ===========

The Restricted Bursary Fund comprises the balance of money raised and spent on bursaries. The Restricted School Equipment Fund comprises donations to purchase school equipment.

The Restricted Family Fund comprises donations to provide fees assistance to families facing economic hardships.

FUNDS (2023) Balance at Balance at
1 September Income Expenditure 31 August
2022 2023
£ £ £ £
Unrestricted funds
General funds 9,987,348 8,947,569 (8,355,657) 10,579,260
Restricted funds
Bursary fund 250,036 12,657 (109,256) 153,437
Family fund 51,375 28,508 - 79,883
School equipment fund 18,838 20,900 - 39,738
--------------------- ------------------------ ------------------------ ---------------------
£10,307,597 £9,009,634 £(8,464,913) £10,852,318
=========== ============ ============ ===========
14. ANALYSIS OF NET ASSETS BETWEEN FUNDS (2024) Unrestricted Restricted Total
Funds Funds Funds
£ £ £
Fixed asset 12,777,271 - 12,777,271
Net current assets 3,372,003 206,538 3,578,541
Creditors due after more than one year (4,835,710) - (4,835,710)
------------------------ -------------------- ---------------------
£11,224,564 £206,538 £11,431,102
============ ========== ===========

21

ARNOLD HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 AUGUST 2024

14 ANALYSIS OF NET ASSETS BETWEEN FUNDS (2023) Unrestricted Restricted Total
(Continued)
funds funds funds
£ £ £
Fixed asset 13,129,214 - 13,129,214
Net current assets 1,972,230 273,058 2,245,288
Creditors due after more than one year (4,522,184) - (4,522,184)
------------------------ -------------------- ---------------------
£10,579,260 £273,058 £10,852,318
============ ========== ===========
15. OTHER FINANCIAL COMMITMENTS
Land and buildings
2024 2023
£ £
The future minimum lease payments under non-cancellable operating leases:
Within one year 510,000 510,000
Between two and five years 2,040,000 2,040,000
After more than 5 years 1,820,630 2,330,630
-------------------- --------------------
£4,370,630 £4,880,630
========== ==========

16. PENSION COSTS

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £529,714 (2023: £494,323) and at the year-end £64,003 (2023 - £40,933) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions 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.

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 employer contribution rate of 28.68%.

The School also contributes to a defined contribution scheme for its non-teaching staff. The pension charge for the period includes contributions payable of £101,883 (2023: £72,235) and at the year-end £11,404 (2023: £6,138) was accrued in respect of contributions to this scheme.

22

ARNOLD HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 AUGUST 2024

17. TAXATION

The company by virtue of its charitable status is exempt from taxation on its ordinary activities.

18. CONTROL

The charitable company does not have an ultimate controlling party.

19. CAPITAL COMMITMENT

There were £nil capital commitments at the 31 August 2024 (2023: £Nil).

20. RELATED PARTY TRANSACTIONS

There are two Governors with children attending the School during the year which pay fees at the same rate as other pupils.

23

ARNOLD HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 AUGUST 2024

21. STATEMENT OF FINANCIAL ACTIVITIES - COMPARATIVE FIGURES BY FUND TYPE

Unrestricted Restricted Total Total
Funds Funds Funds Funds
2023 2023 2023 2022
£ £ £ £
INCOME FROM:
Charitable activities:
School fee income 8,858,140 - 8,858,140 7,924,693
Other ancillary income 13,173 - 13,173 10,010
Other trading activities:
Rental income 16,434 - 16,434 17,724
Investment income 39,560 - 39,560 5,799
Donations and grants - 62,065 62,065 44,319
Other Income 20,262 - 20,262 160,998
---------------------- ------------------- --------------------- ---------------------
TOTAL INCOME £8,947,569 £62,065 £9,009,634 £8,163,543
=========== ========= ========== ==========
EXPENDITURE ON:
Charitable activity:
School Operating Costs:
Teaching costs 4,468,242 - 4,468,242 4,246,671
Welfare costs 534,410 - 534,410 497,294
Premises costs 1,942,299 - 1,942,299 1,991,724
Support costs of schooling 999,219 - 999,219 867,371
Grants, awards and prizes 40,886 109,256 150,142 86,068
--------------------- ----------------- --------------------- ---------------------
7,985,056 109,256 8,094,312 7,689,128
Raising funds:
Fundraising costs 111,203 - 111,203 122,923
Finance costs 259,398 - 259,398 140,956
--------------------- ------------------ --------------------- ---------------------
TOTAL EXPENDITURE £8,355,657 £109,256 £8,464,913 £7,953,007
=========== ========= =========== ===========
NET MOVEMENT IN FUNDS 591,912 (47,191) 544,721 210,536
BALANCE BROUGHT FORWARD
AT 1 SEPTEMBER 2022 £9,987,348 £320,249 £10,307,597 £10,097,061
--------------------- -------------------- --------------------- ---------------------
BALANCE CARRIED FORWARD
AT 31 AUGUST 2023 £10,579,260 £273,058 £10,852,318 £10,307,597
=========== ========= =========== ===========

24

ARNOLD HOUSE SCHOOL LIMITED

DETAILED EXPENDITURE – MANAGEMENT INFORMATION

FOR THE YEAR ENDED 31 AUGUST 2024

2024 2023
£ £
TEACHING COSTS
Teaching salary costs 4,171,260 3,760,550
Teaching materials 151,427 180,175
Music and drama 27,027 35,960
School supplies 4,591 7,035
School magazine 16,108 25,945
Computer maintenance and software 94,634 65,379
Training 20,807 9,228
Travel and entertainment 7,827 28,256
Sports fares and coach hire 183,277 162,582
Sports day and prize-giving expenses 9,996 5,473
Sundries 748 1,587
Cost of extras 283,698 186,072
--------------------- ---------------------
£4,971,400 £4,468,242
========== ==========
WELFARE COSTS
Catering costs 555,983 510,085
Laundry and cleaning 14,420 22,937
Equipment and sundries 3,125 1,388
----------------- -----------------
£573,528 £534,410
========= =========
PREMISES COSTS
Staff costs 226,189 188,787
Cleaning 186,912 184,875
Rent 504,370 502,039
Insurance 83,012 73,128
Rates 55,055 49,507
Utilities 193,318 128,266
Depreciation 626,359 608,736
Repairs and maintenance 159,267 123,597
Garden and grounds 31,599 35,572
Sundry 47,041 47,792
--------------------- ---------------------
£2,113,122 £1,942,299
========== ==========

25

ARNOLD HOUSE SCHOOL LIMITED

DETAILED EXPENDITURE – MANAGEMENT INFORMATION (Continued)

FOR THE YEAR ENDED 31 AUGUST 2024

2024 2023
£ £
SUPPORT COSTS
Administration staff costs 625,604 614,038
Pay Bureau 8,180 4,558
Printing, postage and stationery 26,347 36,109
Subscriptions 20,526 27,097
Recruitment 34,979 42,973
Computer support costs 113,659 98,395
Training 10,517 3,022
Legal, professional and consultancy 126,611 144,492
Bank charges 2,823 3,087
School website 20,753 16,045
Sundries 10,015 9,403
------------------ ------------------
£1,000,014 £999,219
========= =========
GRANTS, AWARDS AND PRIZES
Grants, awards and prizes 48,618 40,886
Funded bursaries 60,102 109,256
---------------- ----------------
£108,720 £150,142
======== ========
FUNDRAISING COSTS
Staff costs 29,834 30,435
Other costs - 843
Marketing and publishing 26,768 79,925
---------------- ----------------
£56,602 £111,203
======== ========
FINANCE COSTS– bank interest £267,985 £259,398
======== ========
TOTAL £9,091,371 £8,464,913
========== ==========

26