LONDON SCHOOL OFTHEOLOGY (A Limited by Guarantet) REPORT AND FINANCIALACCOUiYTS YEAR ENDED31 AUGU￿ 2025 Con]Fqny Registered No: 381332 Registered Charity No: 312778 LOIYDON SCHOOLOF THEOLOGY COMPANY INFORMATION YEAR ENDED31 AUGUST 2025 Comp*tty N*me Comp*ny N•mb¢r 381332 Regl$t¢red Ch*r5ty Nurnber 312778 Address of School Regtstered ofnee School of Theology Green Lane Northwood HA6 2UW BAnkers N￿10nd1 Westsnin5ter Bonk Pl¢ 159 High Strttt Rickmansworth Herts WD3 IAR Audito HaysMa¢ LLP 10 Queen Stre¢t Place London EC4R IAG Sollcitors Pothecary Witham Weld 70 Sl Ge￿8¢.5 S(par SWIV3RD LONDON SCHOOLOFTHEOiA)GY COVERNORS. REPORT YEAR ENDED 31 AUGUST2025 Introdllctlo The Governor& who ar¢ the tNstees and directors of the L4)nth)n SchLN)l of Theology. have ple&wre in wesenting their report and the finan¢ial sthtements for the year ended 31 August 2025. StstsmevAt of Gowernon, re5ponslblllths ID preparing the 4eeouNts Company law requires the Governor5 to prepyre financial stalements for each financial year ihai give a trne and fair view of the state of affairs of ihe charitable company and of the surplus or deficit for that peri¢xl. In weparing those fLn8n¢ial $tatemenis. the Governors are required to: Select suitable accounting Frf)licies and then apply them con5iStently- Make jud8ernents and estimates that are reasonable and prudent: State whether aFyli¢able accounting srandards have tten followe¢ subjeci ￿ any material departures disclosed nd ¢xplain¢d in the financial slatemen PrepaTe ihe financial statements on a going concern b&%is unless it 1$ inapproprial¢ to presume that the charitable company will continue in business. Follow the method5 and pranciples ofthe Charities SORP. The Governors are responsible for maintsining prow accourtting r¢cord% which disclose, with reasonable accuracy at any time. the financial posiiion of the cornpany and enable them io ensure that the financial Statements comply with the CoTnpanie5 Act 2006. They are also respwisible for safeguarding the assets of the charitabk ￿rnpanY and hence for taking rrdsonable steps for prevention and deieciicffi of fraud and other irwlarities. Prep*r*tion of accounts The accounts have been prepared in accordance with the Statement of Recommended Pra¢ti¢e for Accounting and R¢porting by Charilies and the Companies Act 2006. The accouniing policies are listed in Note 2 to the accounts. GOVERNANCE AND MANAGEMENT OFTHE CHARITY T￿Stee5 The following served &$ Govemw5 of the Charitable company for the whole of the period. and up ￿ the appmval of the ¢¢ount% unl¢ss otherwise stated: Name Hon(rary Position Note Mr Malcolm Peckh￿*+ Prof Peter Oak¢s•+ ChaiT of the Board Chair of the Board Chair of the AAC Vice-chair of the Board Chair of the F&GP Trustee and Chair until 111125. From 11125 Until 12r25 Mr5 Matw¢t Doyle Mr Paul Smith* Revd Dr Jenni willi￿54 Revd Lydia Lee R¢vd Alton B¢ll* Dr Naar Mfi￿￿15i-H9ll0waY Tn￿tee from Olll5 From oir26 ChaiT of the AAC * tknotes membership of the Finance and General Purp)sts Committee {F&GP). + tknotes rn¢mbership of th¢ Acthmic Affair5 Cornmillee (AAC). All the abov¢ Governors are independent members of the ih)ard- see note (m TrusEee independenc¢ below. LONDON SCHOOL OF THEOLOGY GOVERNORS, REPORT (¢ontiA•ed) YEAR ENDED31 AUGUST 2025 GOVERNANCE AND MANAGEMENT OF THE CHARITY (CoAtIM•ed) Attthdees *nd Representativ The following attended mee¢ings of the Boord of Governors". Name Position No Revd Prof Mark C4rt1edge•+ Rev Dr David Hilix)rn*+ Dr Shivanthi Manickasingham*+ Princi￿1 Academic Dean Athic Secretsry, Dire¢tOT of Mr Jonathan M¢•l* Director of Finance artd Administration Company Secretary Faculty Representative Faculty Representative Cornells B¢nnemo+ Dan Forshaw Until 0￿5 FYI Mrs Nicola Lambert Mr Glenn Clarke Mrs Elizabeth Case M5 Agni¢57ka Klosko Mr5 Beatritt Barrin￿on-ParkeT Miss Adrea Wright Mr Stuart Livings Mr Li￿1 Aaron Mi55 Naomi Henry F¥ulty Represerttative Stsff R¢FKesentstive Stsff Rewesentative Staff ReF￿eSen￿lWt Stsff Represenmive s￿dent Representative Sthdeni Reprnenwive Stht Reprnenwive From 07125 Until 09ll5 Until IY24 FromOIQ5 From 10125 Until 04125 Until 04125 From 05r25 Fr¢xn 05Q5 * D¢notes membership of the Financ¢ and Gtherdl Purp)ses Committee {F&GP). * Denotes membership of the Academic Affairs Commit*e (AAC). Company Seeretary: Mr Jonathan Mead Methods of RerruitmeTrt of Trnstets Typically the Charity draw5 on Lts wide range of Sup1￿ and formeT fr(xn whom trustre candidates with the required experience and skills art soughi. This Ye￿ however the charity pr￿Ju¢¢d a trustee pack and has undertaken an external recruitment and S￿la1 media carnpai￿ io pxceleratr ihe PT(Kess of fiNling suitabk candidates ￿ join the Board in 2026. It 15 the Charity's aim always to mainthin a tffoad represenlation 4mong its tswee4 in iernis of theiT academic, financial. interpersonal, Culturnl. business skills and religious commilmen Methods ofAppoiDtmeDI Once potential tn]stees have t*en idenitfied and followTng a discussion at # meeting of ihe Board of Governor& the candidates are asked to submii a CV for considernion at the next Board meeting. Once Candida￿ have been accepted by the Board and have confmed their agreement lo the Charit￿$ fkKtrinal B&sis sEa*meni. they are usually C￿oPted onto the Board. Subs¢qu¢ntly, ai the next AGM they foTmally 5tsnd for ¢l¢thion &% a Company Member (if required) then stand for ek¢tion as a Governor for a three year temi. Training and Ind¥¢¢k)tt pmvided for trustees Our tru$te¢s will nomalty be familiar with the ¢th05 and working practices of the ChaTity. but exh new trustee is personally briefed aknui their role. The Charhty arr￿8¢5 suitsble training for all t￿￿(eeS whbch in¢lud¢s regular saftguarding training. Trusttts are also asked to Kce55 the Chariry Commission's Websi￿ on a ￿sU1¥r basis for relevant training and upjatrs. Tn￿ee3 are to Ot*nd and involved in the Clwity's activities throughout the year. Trw$te¢ IttdepeDde*ee Whilll some of the trustees may have had a conneciion with the charity prior to joining the IM)ord (Pder Oakes. Lydia Lee and Alion Bell aTe alumni). all of them are ¢￿sIdered to be independent annually declare that they have no conflicts of interest. None of the truMees are involved in the management of the Sch(xJl atKI they all provide an impartial challenge and oversight to ensure acc(Kmtability and w protra the interes1 of sty¢J¢nts. They are all held io the pre￿ribed tems of otTice, which is three yeats. after which they can offer themselve5 for re-election for two futther thrtt year tern)s. a maximum of nine y¢ars. LONDON SCHOOL OFTHEOtA)GY GOVERNORS. REPORT (Co￿tInued> YEAR ENDED JI AUGusf 2025 GOVERiYANCE AJ¥D MANAGEMENT OF THE CHARITY (Continued) Sethior Employees Serving as the Sch￿1,$ Executive Team during ihe year 2024Q5: Revd Prof Mark Cartledge Revd Dr David Hill%)rn Mr Jonathan Mead Dr Shivanthi Manicka5inghom Principal Academic D Director of Finance and Administration Acadernic Secretary. Direcior of Acthic Services The arrangements for setting the remuneration of the senioremployees are detailed in 5. St*tern¢nt of Corporate GovernaTree The Governors conflnn ihat the financial Statements comply with the ￿rni1 stattltory requirements and wtth the requirements of the tharity's governing ¢knumenl. The Board of Governor5 meets three or four times a year to constder all matters IKrtaining to the governan¢e of the Charity. In addition to the truslees, the rnemttrs of the execuiive team and elected studenL Staff and faculty represefttstives also attend. The main oFwating sU￿¢0mmittee$ of the Board meet two or three times a year and are the Finance & General Purw)ses Committee {F&GP). which is chaired by Paul Smiih and manages the Charity's fJ5cal and busines$ affairs under its (kvolved responsibility from ihe Board and the Ac&knic Affairs Committee (AAC) chaired by Prof. Pe￿r Oakes. In addition, there i$ 8 S¢holar5hip5 and Bursaries Committee and a Pensions Committee, the former beiMg chaired by the Diretior of Finance and Administralion and the latter by a Pensions Trllsiee. The School review5 Ihe tem)s of reference for all sub ¢ornmiwees of the Board of Governors every two years to ensure the Schcx)I's 8ovemanc¢ is to the levels requir¢d by the S¢hool's thtU5 a5 a HEI. The School has ￿)sted all its P)licies on m4tt¢rs of public. s￿￿ertts and interest on the School's website. Plelse see: ..Illsi.ac.uklour- liciesl How the Charity is mgAaged The Executive Team (EXT) is the daY-t￿d*Y decision-making t￿Y of the Charity. covering its full life and op¢rWions. The EXT meets regularty and is a¢¢thmtsble to the Board of Govern¢x5. Salaries of key smff are reviewed frnm time ￿ time tsking into XC(Kmt pay in comparable organisations and the finances of the Charity. On academic matters arising from ihe ChaT1t￿5 w(Yk in providing higher education courses. the Charity h&$ the Academi¢ Affairs Committe¢ mention¢d above and an Academic Board is chaired by the Academic rkn and to which various academic sub-committee5 re￿rt. Interp41 Control The board of govemoT5 are re4xTrnsible both direcily and through its Finance and General PurrA)ses Comrnittee for rinancial control i.¢. ensuring the economical. effKienl and effective management of the sch￿[S.$ resou￿¢5 and expenditure, and for safeguarding IL% lssets, in¢luding s￿lf1¢ re5p)n5ibility for the oversight of sysrems thai pr¢v¢nt and det¢¢t frau4 brilw and other irregulariii¢s in ¥oordance with the resFrfJnsibilities assigned to the members of th¢ Board in th¢ Office for Students tem)s and ¢onditions of fvnding for higher education instituiions. li is supported in thts work through the external auditors Haysmac LLP. The system of internal control that supp)rts the achievement of p)lici¢ aims and objectives provides for comrrth¢nsive financial pknning pr(Kesses. developin& monitoring and upjating budgets fff annual Inc(￿e. expendittwe. capitsl and cashflows, with regul￿ monthly reponing of thal results against these tsking place. The sysiem of iniernal conrrol is desigrted io manage ratherthon eliminate the risk. It c4n therefore only provide re&sonabk and not absolute assurance of effeciiveness. The inlernal control syslem has been in place for the year ended 31 Augu 2025 and up w the approval date of the f]nancial 5tatem¢nts and ￿¢0[￿S with OITice for Studenrs guidance. NDON SCHOOL OFTHEolL￿v GOVERNORS. REpoirr (￿ntinued YEAR ENDED31 AUGusf 2025 GOVERNANCE AND MANAGEMENT OF THE CHARITY {CofjtA•ued) Th¢ $y￿eM of iniernal control is ba5¢d rn an ongoing ￿￿e$S deS7￿Cd ￿ identify the wincip￿] risks and to evaluate the nature and exieni of those risk5 and ¢0 man4¢ them etTicienily. effeciively, and economically. The key elemu)is of the School's sys¢¢m of internal c(mtrol are as follows.. Clear definiiions of the re5ponsiI)ilities of. and the audmyiry delegated to. the eXeC￿1ve team, programme leaders and administrative head5 of deparknent. A cornwehensive annual ixHJgeling foTe¢&siing pr Regular mimthly reviews of key perfonnance indicator5 WKI aethal financial results involvtng variance analysis reporting a8alft￿ the l￿d8t1 and uvthtes to f(xec&sts" Clrarly deftn¢d and fi*malised requirements for approval aTKI rontrol of expendinxe. with investment decisions involving ¢¥pital or revenue expenditure being subject to fryrnal dEtsiled ar4xDval according to kvels 5rt by the Board 05 ¢ontsined within the expenditure p)licy" The rnaint¢nanc¢ of a risk register which highlights the key rith5 f4cing the S¢￿￿1 in achieving it5 objectives; The Finance & General PuTP)ses Commilltt oversees the risk manageMe￿t process and ¢M$iders ctrwiges in the major risks assessed for th¢ S￿h￿l. and The Board receive5 regular reryxts from the FitwKe & General Purposes Comrnittee on the ¢ffecthve operati(xJ of the system of internal control. The role of Extrrnal Audit is to obthin ye&￿ttable &wJrance about whether the firsancial 5tstem¢nts &8 a whole are free from material misstatemenL whether due to fraud or em. and rep)n their Opini￿ to the Board. Th¢ ¢xtemal auditor does this by assessing the rhsk of material missthtemeni in the School's financial swem¢nlS. understsnding the relevant internal controls which mitigate these risks, and devising pr￿￿uleS and tests to enabk them to tKovide theiropinion. The external audit also reviews accounting wJliciA ihe presenialion of financial st*¢rnents ond disclosures io ensure the financial s￿eMents are.1￿e and fairf, and frtt of maierial error. They re￿rt their opinilm and recommendati(ms on improving the control environmeni to the PAwd in an Audit Findings RepNf and this 15 shore41 with the oifice for Students. The agreed aciions in response to their recommendati￿$ &e tracked by management ond r¢ported back to the Finance & General Putpose5 Comrnittee. The External Auditors attend the Finance & General Purposes Commiffee to present their Audit Findings Report and address any questions that member5 of th¢ Commit* hav¢. During 2024125 no material internal control iswes weTe identified Two sugge#ed ayeas for improvement were notified whith have been agrttd and implemented. Th¢ Board's view of the effectiveness of the 5yslem of intemal con￿1 is infornied by the of the Finance & Genern] Purposescommittee and mat)agementwho have rw$ibility forthe developneni and maintenance of the internal conthil framework. and the CLNnments m&le by the extemal awlitty in their rnanagemeni leller and other reFiWts. F￿ndr#i*l￿g *ppro*el performanee The S¢hool undertakes fundraising activity to its 5UPPOrtern via direct mail. email. telep1￿e and fimdrai5ing ¢v¢nts. Our fvndrtising promise is: When you support us, you can be Sure of the followin& We will never share your ccffilact detsil$ with any other fimdrnisers We will only contact you if you are an alurnDU4 have ex1￿ an intrre￿ in our work or are known to support sirnilpr organisations io cwjrselves. If we phl￿¢ yow we will always check you are ha￿Y to tske the call If you ask to chang¢ how we communica* with YO￿ ￿ lo stop. we will r¢4xu that We do not engage in cold calling We try hard to ensure no one ever fe¢ls pressurised to our work All our aciiviiies are open. fair, honest and legal. These promis¢s are also designed io protect vulnerable pe￿¢. by we are not unreasonable or w5is¢ent or place undue pressu￿ on any of our pr05pertive don¢x5. The Charity thes not work with any oth¢r organi5ati(x) th deliver its fiuthising activity. We hjve a trainirtg w>gramme for all our ffijndraising stsff to regularly reinfor￿ (M￿ fill￿raISing ethics. Dyring ihe year we received no cirfnp14ints JiM)Ut fimthaisin8 Xtivitie5 LONDON SCHOOLOFTHEOtAIGY GOVERNORS. REPORT (eotstinued) YEAR ENDED31 AUGUST2025 GOVERNANCE AND MANAGEMENT OF THE cHAR￿y (Coaliaued) THE PURPOSE OF THE CHARITY Summ4ry of the Objects of the Charity The prin¢ipal activity and objectives of the charithble company. as set out in the Articles of AS￿l￿tiOn. is the advancement of the Christian religio￿ by such means as the Cornpany may detem)ine. including but limiied to: The conduci of the Sch￿1 and estsblishment and c(fflduct of Colleges {in all cases) for the study and teathing of the Bible, Chrisiian doctrine and relaied subjects- b. The training of minister5 of religion, Christian teachers missionaries and other chri￿lan workers: The SUP1￿￿ of the School. its Students and its fi)Tmer ￿uden All such activities are C&Tied on in strict accordance with the Sch￿r5 Doctrinal Basis of Faith. Public BeTrefit of the Ch*rity Trustees are aware of the guidance on 14Jblic Benefit &% descriFKd by the Charity Comrnission, have taken it into account in opernting the Charity, and have soughr io ensure thai any decisions tsken are in furtheran¢e of the Charity's benefit io Ihe public. Trustees consider ihai ihe Charity's aim& objectives and activities &s below demonslTate proof of publi¢ benefit in the advancement of religion and in the advancement of edutation. In a(klition, through the operatkon of the Charity, as50CTated benefits to the public arising from the operation of the ChaTity inclu(k.. Access to the grounds ty the wider community (e.g. ￿1￿)15 and otherorganisations) consistent with the eilM)s of the S¢h(KJl Provision of theological education io the wider¢(knmunity vi# (wr Faith Seeking Understsnding progmmme and public lectures Access to means4estrd bursaries A¢cess to means tested and wbsidised Counselling through the REMA Counselling Service acounsellin The provision Of subsidised access to the theological librdry facilities for acknics, Sts￿ents and memE¢rs of the l(Kal Comrnwihty STRATEGIC REPORT Aims, obje¢tiv¢g and *ctiviti Aims To establith LST a5 an exemplar of engaged evangelical theological educatiort in th¢ UK We achieve these aims by providing.. higher educ*ion degrees (BA Hons to PhD).' interd1￿1p1Inary. intercultural and integrated high quality scholarship and research, £s￿lalIY in the relati¢)nship Etheen churth and society public events and conferences short courses and trainin8 foT I{￿al churdles and denominalionaj neD¥orks strategic engagement on public issues with evangeliol #nd rfumenical partners con5ultsncy for thurch4 mission agencies and parachurch or8anisations We see our key values w being.. Artively becoming chrI￿-1]The developing godly chaTacter and virlues Being shaped by the canon of Scripture as the supreme authority for faith and life (the nijnning norm) Celebrating Christiart ¢omTnunity exhibi¢ing the gift5 and fruit of the Holy Spirit in waise. wayer. sacram¢ni fellowship and service and emiKKlying collegiality for the flourishing of LST Demonstrating a comrnitment to excellence in all that we do. whether academic or pmfessional Enhancing church life and witness, through strong neThvorks of evangtli¢al and e¢umenical partnerships Forging relationships within IMLr own wider community and Greater Lon&xk for the sake of the ¢ommon good Gaihering students from diverse cultures and ecclesial traditions Helping io care for creatiort. including own physical and environmentsl resourc4 moving towards a carb¢)n neutral foowint LONDON SCHOOLOFTHEOIA)GY GOVERNORS, REPORT (toThtl*ued) YEAR ENDED 31 AUGUST 2025 And some of our unique selling w)ints would be having.. The longesi hiswry of delivering deg￿¢ quaIifK*i￿S from BA Hons to PhD in the Bibl¢ Collc8e and Theological College se£lor A thumber of highly Tespected and dislingui5h¢d alumni A very diverse studeni Ix)dy. reflecting the culthral diversTty of 8rt￿er Loth as well a5 students from 8row)d the world Strong i)nl's Defined B¢nefil Pension Scheme. with ihe FRS 102 year end valuation recording a decrease in the pension fund surplus from £1,568k to £1,452k. With the scheme still in surplus ihe pension (n1￿e¢S are preparing it f￿ a w)tential Iwy-wi by an insurance scheme as soon as practically possible. Since the costs asso¢iated with thi$ would be in the region of £3(Klk the current sutplus value has been Yeduced by ihis amount. The School's funds have been applied f￿ the purEx)se of the prin¢ipal xtivity. FUTURE PLANS The delivery of a first class education to our sNdeftL8 Cothintses to wineTp41 aim. The School h05 now decided that having its own degree awarding powers would enhance thi$ by ¢n4bling greater flexibility in the design and delivery of its programmes whilst a150 helping to deliver greater financial sustaÈnability. The popmvork for this will be submitted to the OtTice for Students (OFS) in February 2026 and then several monihs of scrutiny will follow. This however d￿S not change the realtty of the ongoing cost of living challenges fxing many of our current and prostective stt]dents. This and other additional pressures and uncertainries have the POEeniial to deter many w*¢ntial stud¢niS from applying. We are deierniined ro increase the level of suptM)rt we have in place for our studenis to monitor their progress and well-being and work with our lecturers. tutor group leaders and SUp￿)rt staff io monitor any ¢On￿rn$ th¢y observe, so these can be quickly followed up by our excellent pasioTal and Tegisry ieams. With the majority of our objectives now ¢OTnpleted from OUT Current five year strategic plan. we will soon io kK)k forward to developing our next one, which we are confideni will include a new set of material plans to direcily addyess many of th¢ challenges we and (rther similar colleges in our sector continue to face. INDEPENDENT AUDITORS A resolution was rnade at the AGM in 2025 10 reatvoint Haysmac LLP ￿ audI￿ts to the Charity. This appointment and the auditor's remuneration will be reviewed again ai the AGM in 2026. ststement of disclosu￿ to Auditors As far as the Trus￿e5 aTe aware.. There is no relevant a￿JIt infom)*ion of which the Charity's Auditor5 #re unawaTe. Tru$t¢es have iakert all steps ihat they ought to hav¢ taken as trustees in order to make themselves aware of any relevant audii infomiation and to establish that the Charity's AudiloTS are aware of that inforniation. Thi5 Governors, ReporL which incorporfcs the stra￿1¢ Rep>¢ w&% signed on lthlf of the B(wd of Governors in their capacity as ihe Company D" iors by.. Professor Peter Oakes Chairnian 28th January 2026 10 INDEPENDENT REPORTOFTHEAUDITOR'STO THE MEMBERSAND TRUSTEES OF NDON SCHOOLOF THEoL(￿V Opinlo We have audited the finan¢i•l swements of Lonlkn Schfy)l of Theolo&y f(Y the peTi(xJ ended 31 August 2025 which comprise the Statement of FÉn#n¢ial Activilies. Ihe Balance SheeL ihe Cash Flow Statemenl and notes to the financial staiemenw including a summttry of si8nifLcant acc(wJniing wTrlicies. The financial rewrting fram¢work thai h&8 been applied in their preparation i$ #pplicable law and Uni*d Kingdom Accouniing Standard& in¢lllding Financial ￿e￿￿1n8 Siandard 102 The Financial Rep(Yting&andardapplieoble in ihe UKandRepxblic oflrelaKd{United Kingdom Generally Accepted Accounting Pra¢tio). In our opinion, the financial ststements.. give a true and fair view of the sthte of the ch¥ithble cornpany's affairs a5 at 31 August 2025 8nd of ihe charitable company's nel movement in fund* including the income and expenditure, for the year then ended: have been properly prepared in *¢ord8nce with Unitrd Kingdom Generally Accepted Accounling Practice: have been prepared in ac&Ydance with the rwuirements of the Companies Ath 21￿0 and the OtTice for Students A¢¢ounts Direction. Basig for oplnlott We ¢onducted our audit in accordance with International Standards on Audiiing (UK) (ISAS (UK)) and applicable law. Our resFMmsibilities under thosestsndards are furtherde5cril*d in the Auditor's restx)nsibilities for iheauditof the financial sthtem¢nts section of ￿Jr report. We are independert of the Charl￿ble company in aco)rdance with the ethical requirements thai ar¢ relevant io our audit of the financial s￿ements in the UL including the FRC'S Ethical Standard al￿ we have fulfilled our other eihical responsibilities in ac￿r￿an¢t with these requirements. We believe that the audit evidence we have obtrined is sufficient and appropriate io provth a bwsis foriwr opinim. ConelusloDS reiatint to golNg con¢erD In auditing the financial statemen￿ we have coneluthd th* the nvs*es' use of the going concem basi5 of a¢¢oun¢in8 in the preparation of the financial ststernents is appropriate. Based on the work we have perfonnell we have ￿ ideniified any matertal uTrcenaintie5 rela¢ing ¢0 events or conditions that, individually or collKtively, may Ca￿ signifKani dou￿ on the charithle company'5 ability to c￿11￿￿¢ a 8Otng Co￿eM for a peTiod of * It￿ twelve months when the financial 5￿ternents are aUth￿l$¢d for i55U¢. Our reSp¢￿SibilItIeS and the re5pon51bilities of the tr￿the$ with Tespeci to going c￿￿ern are {k￿rIbed in th¢ relevant seciions of this repxL Other i4form*lio The tNslees are responsible for the other inforn)*ion. The other Inf￿natIOn ry)mpri5es the inforrnation included in ihe Trustees. Report. Our OPiDion on the financial smements does not cover the other infonnation and. ¢xcepi to the extent otherwise explicidy 51akd in our rem we exwess any of assurance conclusion thereon. In connec¢ion with our audit of ihe financial statemen1& ourres￿n$]bl1Ity is to Tead the other infomiation and, in doing so. consider whether the other inforniatiort is m*erially inconsislenl with the finanri&l statements or our knowledge obtained in the audi¢ or oth¢rwi5¢ appear5 to be materially missthted. If we identify such material inconsistenciesorapparentmaterial misstatements, we ar¢ r¢quired to detemiine whether there is a malerial mi55fatement in the finartcial ststemenis or material mis5tat¢m¢nt of the other inf0m)￿lon. If. based (m the work we have PErf(Thed. we conclude thai thetr is material misSt4*ment of this other inf(xm*ion. we are requiredto rekwt that fxt. We have nothing to rep)rt in this regard. OpiDioDS Qll Other m*tters preserlbed by the CoThpaTries Ad 2( In our opinion, b&4ed on the work undertaken in the course of the audit.. the infornation given in the Tntstres. iieport{which includes the strjtegic reFrf and thedirectors, report prepared for the pUr￿or¢￿nP¥rtY law) forthe financial yearforwhich the financial ststernents are prepared isconsistent with the financial ststements: and the strategic report and the direciffs. includedwithin the Trustees, R¢N)rt h8vebeeD }Xep￿ in xcordance with applicable legal requirements. INDEPENDENT REPORT OF THE AUDITOR'S TO THE MEMBERS AND TRUSTEES OF LONDON SCHOOL 0FTHE0t￿￿y (eotttiDued) M*tttrs whicb we *rt required ¢0 r¢port by exttption In the light of the knowledge and uttderstsnding of the charitable ¢ornpJny its envir(ffiment obtained in the course of the audii. we have noi identif￿d material misststernents in the Trustffs, Rqx)rt (whith incorporates the strategic report and the directOTS' reiy)rt}. We have nothing to report in respeci of the following manets in relation to which the Companies Act 2(X)6 requires us to re[￿ to you if. in our opinion.. adequaie accounting records have been kept by the eI￿ri￿bIe c(xnp8ny; or the chariiable company financial statements are not in agreement with the accounting records and rewrns. or certaÉn disclosures of truste¢s' ￿M￿nerati1)n Specified by jaw are not made" or we have noi received all the inforniaiion and explanatiffts we wuire for our audTrt. Matters on which we are required to report in regt*et of the Otfke for Sttbdtnts In our ¢Jpinion, in all material respects: funds administered by ihe charitable company specific purEKJses during the year ended 31 August 2025 as disclosed in note 3. have been applied to those r￿rposeS and managcd in accordance with relevani legislation. and funds provided by the Office for Sttldents have applhed in accordance with the tenn5 and conditions attached to ihem during the year thded 31 Atsgust 2025. We hove noihing io report in ttspe¢t of the following mal¢¢TS in r¢l*ion to which the Office for Stu&nts requires us to report where.. grant and fee inc(the, as disclosed in the note 3 to the ha5 been Materially misstated; and expenditure on access and tthrticipa11(￿ activities for the financi￿ year has been materially misstated R¢spoDsibili¢ies of t￿5¢￿5 for the fin*i¢i*l sl*¢eMeits As explained more fiElly in the trustee5' f¢5EM)n5ibilitie5 slaternenl 5¢¢ out on page 2, the trustees {who are also the directors of the Charitable cornpany for the PUfEKW of cornpany law) we responsible fly the preparation of the financial Matements and for being5at15fi¢d that they give a true and fair view, and forsuch internal control as the tTUStees deiemiine is nece5S#ry to ¢nable th¢ prepardtion of flljanciai ststements that are free fr(Mn material misstalemenl whether due to fraud or error. In preparing the financial statements, the trustee5 are responsible for assessing the charitable company's ability to wnlinu¢ as a going concern, disclosin& as applicable, matters related to going cimcern and using the goin8 concem basis of acciTrunting unless the trustees either intend to liquidate the tharitable company or to cease operations. or have no realisti alternative but to do 50. Aydi¢or'$ responsibilities for th¢ a￿dit of the fim•Dcial Jtsiejwents Our objectives are to obtsin reasonable assuran¢e ab)ut whether the financial slatements &$ a whole are free from malerial mi551atement, whethcrdue to fraud or error, and to i55ue an auditor'5 reMthat includes ouropinion. Reasonable assurance is a high level of assurance but is not # guarantee that an a￿lit conductal in accordance with ISAS (UK) will always detect malerial rni55tatement when it exists. Misstatements can arise from fraud or enor and are considered material if, individually or in the aggregate, they could reasonably be expKted to influence the economic decisions of users taken on the basis of these financi#l 5tat¢rnents. IrTegularitie5, including frauI 127,887 2.827.888 3,182,891 EXPENDITURE ON R&islftg Funds Investment manager fee Trading expenses Fundraising costs 25.198 58,586 65.155 8.316 34.982 58.586 65.155 37.384 55,910 63,556 Charlioble ocllvllles Education Conferences 3.788.51K) 40299 111.(K18 3.899,598 40,299 3.728.033 39.509 Totsl Expe*dlt•re 3.977,828 119.324 4,098,620 3.924.392 Net expenditure ￿[ore investment gains (1277.8271 8.563 (1,468) (1,270,732) (741,501) Investsneni gains 38,736 17.8(11 3,153 59,749 562,555 Net Expenditure (1239,(VJl) 26.423 1.685 (1,210.983) (178,946) Defined benefrt pension ￿h£me (105s¢sygains (I16,¢N￿j (116,O¢X)) 285,( Net movement In fllnds Balance brought forward at I S¢pt¢mber 2024 (l J55.091) 26.423 1.685 (1,326,983) 106,054 8,561,720 1.877,374 250,013 10.689,107 10,583,053 BalaDre (arried foTward at 31 August 2025 7206,629 1.903,797 251.698 9.362.124 10,689,107 The School had no recognised gains and 1055e5 other than the re5uh for the period. There were no movements on r¢5erve5 other than those ort the Statement of Financial Activities aix)ve. No separate income and expenditure accourtt ha5 b¢¢n prepared ￿ the basis that the difference itheen the nel result for the year as shown above and profitl(loss} as prr Compani¢s A¢t 2006 i$ showtt separnt¢ly in the endowment column of the Statemeni of Financial Activiiies. 14 LONDOIY SCHOOLOFTHEOLOGY BALANCE SHEET ASAT 31 AUGUST 2025 Compamy Reglstereil No: 381332 2025 2024 Notes FIXED ASSETS Tangibk Lssets Investhients 1275,627 6,512.727 1.454.771 7.195.367 7.788.354 8,650.138 CURRENT ASSETS S¢o¢ks Debtors Cash at bank and in hand 19.493 530.972 578,595 21,401 565,087 743,692 10 1.129,060 IJ30.180 CURREiYf LIABILITIES Creditors: within one yur (689.672} (523,977) NET CuRRE￿T ASSETS 439,388 806203 TOTAL ASSETS LESS CURRENT LIABILITILS 8227.742 9,456,341 CreditOTS.' after rnort than the year (17.618) (35234) Pension scheme asset 1.152.iKK) 1,268.(M)O NET A&SETS A ￿ER PENSION SCHEME LIABILITILS 9.361124 10,689.107 FUNDS Unrestricted Unre5tri¢ted pensiort rtsetve 122.13 6.054,629 122.13 1,152,OCMI 7.293.720 1.268.IXM) Total unrestricted Restricted Endowment 7206.629 1,903.797 251.698 ,561,720 ,877,374 250,013 12.3,13 12.1.13 9.361124 10,689,107 The financial st4MenLS were atVToved and authoTised for Is$￿ by the Board on 2* January 2026 and were signed on its behalf by= CLL h Z/W Prof Peter Oake5 (Chairnian) Revd Prof Mark Cartkdge (Principal) 15 LONDON SCHOOLOFTHEOLOGY CASH FiA)W STATEMENT YEAR ENDED31 AUGUST 2025 21n5 2024 ReconclliatjOD of ehanges in r¢sour¢¢s to net Cash Inftkfvw frnm optratittg Activitl¢s Net {expendltureyltt¢ome (1270,732) (741,502) [kprecI￿10n charged Decrease in stocks Decrease (increase) in debtors Increase irt crediiors Less invesbment irteome 212.618 1.9)8 34,115 148.080 (213.180) 217,419 10.228 {327.724) 65,039 {236,224) 183,541 (271,262) Net cash flow from oper*tlll2 *¢tlvltl¢s {1.087,191) (1,012,764) Invuting actlvitles Investment income Additions to investments Wiihdrawals from investments Sale of investhjents Purchase of tangible flxed &%seLS 213,180 (2.602,804) 700.(X)O 2.645.193 (33,475) 236.224 (672.648) 700.(XN) 717.725 (57.399) 922.(N 929,￿2 Fin*Treing aetlvitles Repaymeni of loan for ass￿ purch&ses Decre*se ith easb in the year {165.097) {88,862) Cash and cash equivalents ai the beginning of the year 743,692 832,554 C￿h and tash equlv*lents #t the e#d of the year 578,595 743.692 C￿h and eqlllv*ients {*et f•ttds) ¢o*prise: Cash 4t bank 578.595 743,692 578.595 743,692 16 LONDON SCHOOLOFTHEOIIIGY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED31 AUGUST 2(125 COMPANY STATUS LondoD School of Theology is a charitable company in¢0ry￿￿¢d in England and Wales. Funher company information ¢an be found on page l. London School of Theology is a company limited by guarantee and having a share capital. The memb¢rs h#v¢ each undertaken to Contribu￿ such a sum as may be required. not exceeding £10. in the evenl of ¢he ompany being wound up. Th¢ London Sch￿1 of Theology is also a regis¢ered ¢harity and as such is exempt from Corporation Tax on its rharitsble aciiviiies. ACCOUNfiNG POLICIES The financial ststements have been prepaTed in &ccordance wilh applicable accounting 5tsndards and the Staiement of Recommended Practice for Charitie5 SORP 2015 (Second Edition, effective l January 2019), the Companies Act 2006 and FRS102 the Financial Reporting Stsndard applicable ID the UK and the Republic of Ireland. The accounts hove a150 be¢n prepared in accordance with the requirements of the Ac¢ounts Direction issued by ihe Office for Students. London School of Theology meets th¢ defmitirn of a public benefit entity uNkr FRS 102. Having reviewedthe fi￿dIng facilities available to the Sc1K￿l together with the ex￿Cted￿n801ft8 demand for places and the Schwl'5 fulure projected c&8h flows. The Governors consider that there are no material uncertainties regarding the charity'5 ability to continue as a going concern. As part of this review specific considerntiotj has been given to the firbances, r&5hflow well as the weniial risks and how these Could be mitigated. Aecordingly, they continue to adopi the going concern b&8is in prepartng the fuwicial 5Wemen (a) Basis ofacco¥nÉing The finanrial statements are prepared under the hisloTical ¢onv¢ntiort which has been modified to include the revalU￿10ft of fixed asset investsnents. (b) Fees andsimilor income Fees r￿e1Vable and charges for services and use of premises ort 8¢¢ounted for in the period in which the service is provided. Ftts receivable include Contributions received from Resiricied Funds for scholarships. iyjrsaries and oihergrants. (c) Legacies Lcgacies receivables are credited to the Statement of Finan¢ial A￿l¥ll1eS only io the exieni that the 3 priftciples ofentiilemenL probability4nd meaSUTgbility ¢an be applied. (d) Donaiionf andFundoccouniing Donations under Gift Aid are included in the Stai¢ment of Financial Aciivities inclusive of any tax recoverable. Donations received for the genernl puryKyses of the chariry are included as Unrestricted Funds. Don*ions whose applicalion i5restrirted bythe wishes ofthe donorare ￿ken io Restricted Funds and donations that are required to be retained as capithl in accordance with the dono¢s wishes are accounted for as Endowments. Designated fimds are those funds sa aside by the Trustees oui of the Unrestricted Funds for a particular purpos¢. {e) Ewendithre Resources ExpeThJed are accounted foT on an accruals basis. Certain expenditure is apportioned io ¢os¢ categories based on the e5timaied amount attributsble to that ￿liVity in the year. These in¢lude some specific costs and ihe following larger cost areas: The AdministrAtion Departsneni activities cover 5UPPOrting teaching and students as well as administering the clwity. 5Y• of the Administration Departm¢nl's staff ¢osts aTe ¢har8ed to the Governan¢¢ of ihe ¢hariry. 17 LONDON SCHOOL OFTHEOLOGY NOTES TO THE FIJ¥ANCIAL STATEMENTS (eoDtlty¥ed) YEAR ENDED 31 AUGUST 202S ACCOUNTING POLICILS {¢olliln•ed) The Communicaiion Department activities ¢oveT the issue of infoTm4tion to prospective students as well as publicising the charity for fundraising purFrfws. 21Y/• of the Communication Department's costs are charged to fundraising and publiciry. Calering & Housekeeping costs are ap￿rtIoned between ihe following activilies al the given per¢ent#ge& based on the estimated use of these resources during the yeaT. R4islnz Funds Fu￿1-￿IsIng tr￿ling ¢05ts- 2Y• Education- 94Q/ ConferEnr¢5- 4Y• Other adminisiration and IT (￿ts *d & Services co￿5 are apportioned between the following activities at the given wccnlage5: Costs of generaiing voluntary income- 2% Fund-raisirt8 trading costs- ¢Y/ Charlloble acllvllles Educaiion- 96Vo Conferences- 2Y• (fj Recognilion ofliabilili Liabilities are recognised in the to which they re￿¢. Shortfalls in anticipated fu￿re pen5ton scheme commitments are calculatcd on the basis of assumptions stated in Note 15. Constructive obligatÈOll5 und¢r ision arrangements are#lso recogni5ed as liabilitke5. (g) Grants ondbw5aries Grants and bursaries from Restricted Fundsare inclthasex￿ldI1uTP inthe period inwhichthe award is given. (h) Invesimenls andinvesimeni ipKome Investments are ststed at ihe middle markei price atthe balance sheei dale. Realised increases or decreases in the value of these investsnents are shown as reaiised gains Of losses in th¢ stjternent of financial activities. Investment income is accounted for in the period in which the charity is entitled to receive ii. (i) Iweresi receivable The cash holdings of the s￿la1 funds are hebj in the generdl bank a¢¢ourtts. The intere51 receivable on the5¢ balarKes is based on each of the special funds. holdings at the balance sheet ￿1¢ 4TH1 transferred to the individual special funds as income in that year. (i) Tangiblefued twets All assets are inclu(kd at cost aTrJ capitslised only where the value i48reater than £S(K). Depreciati￿ is calcu]a¢ed (except on freehold land) to write off the CO￿ of buildings and tongible fixed assets on a slraight-line basis over their eslimatrd useful lives. Ra*s for r￿ed assets are applied ￿ follow5: land Buildings Fixture and fitting5 Equipment Comput¢T5 2Y• IIP/• 21P/•- 25Y• 33V4 18 LONDON SCHOOL OFTHEOLOGY NOTES TO THE FINANCIAL STATEMENTS (coNtiMued) YEAR ENDED31 AUGUST 2025 ACCOUNTING POLICIES (¢onilntAed) A depreciation rate on the building elemeni of the ryoputies reflects the anti¢ipated *tiv¢ lifeofthe ¢xistin8 StrucNres. The Governw5 are, n¢vertheless. of the (yinion that the re5idu41 value of the School's freehold buildings is5ubstsntially inex¢￿5 of the prtsent value. Leasehold prO￿leS yr¢ dwttiatolov¢T the Yenmining life of the lease. (k) Siock Stocks of catering and ￿er supplies are valued at the lower of cost and net realisable value. Eychange gains undlosses TrdDsKti￿S designated in foreign curren¢ies ort ts¥nslated at the rate prevailing on the date ofthe tranSa￿lOn. Balances denominaied in f(ttign cwr¢ncies ore tr•￿I￿ed at the rne prevailing at the balance sheet dat¢. (rn) 0peral1ngle￿e￿ Operating lease prerniurns are sweal on a yraight-line ba%is over the lease term. (n) Penfion casts Defined Benefit Scheme Contributions to the defined benefit 5ch¢me are ¢hwg¢d to the sthiement of fiwicial activities on the basis of the current service c05t as rewrted by the ￿h¢me under FRS 102. DefinedCowrib￿lIo￿ Scheme Contributions payable to the defined contritrMti(m r*nsion scherne are charged to the 5tstem¢nt of financial activities in the period to whi¢h they r¢late. (o) Criticalsources ofesiimation uncertainty andaccomnlingjudgements The wepwatioD of the organI￿10n.S financial $￿ements requires manag¢meTht to make judgemenis, estimates. and assumptions that affeci the application of accounting wTrli¢i¢s and reported amounts of assets and liabilities, income, and ex￿)SeS. These judgements, estimates. and a55ociated assumptions are based on historical experience and othtt fador& includin8 exFtttation5 of future ev¢nts that are belkeved io be reasonable wider the ¢ir¢umsthnces. The resulting accounting estimates will, by definition, seldom equal the related actyal results. The governors c(￿S1der there to be the following key 50urce5 of estimation uncertainry and judgemeni are the use￿1 lives of fixed valualion of the ￿lDn scheme ass￿ and the bad debts provision. Detai]s of and the basis for the curmt pension stheme Surplus l asset ￿ detailed in note 15, any such surplus will be returned w the School on the buy(w¢ of the scheme. but this Is totally dependent on the final amount ￿ insurdnce companies a8ree5 to pay to take ov¢r th¢ Jssets and liabilities of the scheme. GRANT AND FEE INCOME 2D25 2024 Grant income frotn the Office for Ststhnts Fee in¢om¢ from taught awards F¢e Income from nowualifying couffxs Other Educational and related income 35,177 1.748.429 6.214 448.023 51.174 1.652,303 6,847 447,684 2237.843 2,15&008 19 LONDON SCHOOL OFTHEOL1￿y NOTES TO THE FINAJ¥CIAL STATEMENTS (eoDtiDued) YEAR ENDED 31 AUGusf 2025 EXPENDITURE Raising fwnds Charitable Attivitie5 Total Year Ended 31*1 August 2025 Dirert ¢osts Staff costs Depreciation Bursaries and prizes SuprM)n and governance co 36.969 95.608 8,505 594,881 2.411.049 201.987 115.039 617213 631,850 2.506,657 210,492 115.039 634,582 17.369 158,451 3.940.169 4.098.620 Y￿r Ended 31" August 2024 Direct costs Staff costs Depreciation Bursaries and prizes sUpF￿ and governance costs 38,350 92,510 8,696 565,277 1326,175 208,722 128,426 538,943 603.627 2.418.685 217.418 128.426 556.236 17293 156,849 3.767,543 3,924.392 Included in expenditure are the following.. The auditor's Temul￿ratiOn during the year amounted to £17.765 for audit service5 (2024: £17,335) and £nil for other services (2024- £nil). Hire of planl (operdting leases) which amounted to £5.11412024: £7.814). AFF COSTS 2025 2024 Wages and salaries Social security costs Pension contributions Other pension costs Tern]ination payrnenls 2,049,004 217,692 112,957 68,166 58,838 2.029.238 190.091 112.048 59.913 27,395 2,506,657 2.418.685 No memb¢rs of the London School of Theology, who are ITUStees and directors for the wrposes of the Companies Art r¢ceived any remunernlion for their servi￿$ during the year {2024..0). One tnjsiees (2024.'0) re¢¢ived reimbursement of their travel eXp￿se$ £42 (2024.. total reimbursed £0) during the year. There were no other related Fwty transadions during the year. 2025 No. 2024 The average number of employtts by function w&%: Education Fund-raising and publicity Ancillary io rnAin funthion of education 71 68 76 20 LONDON SCH(M)LOFTHEOiAJGY NOTES TO THE FINANCIALSTATEMENTS (COAtinutd) YEAR ENDED 31 AUGUST 2025 STAFF COSTS l¢ontin•ed) One employee earned beNeen ￿0.￿) and £(X).(W and 3 employees b¢ft¥een £60.IXKI and £70,0(K) during the year. no other employees earned more ihan £60,(th (2024:one employee earned be￿een £80.000 and £W.(KJO and 3 employees between £60.(KN) and £70.(KK)). Key managernen¢ personnel remunernii(M) for the {salarie5, laxable benefits and employers pension contri1￿110nS) totdled £332.000 (2024: £319.IMM)) Mark Cartledge was Princip￿ for the year. He paid £83k plus penston contribution5 (2024.. £8 Ik plus pension ontribulions). The principal's base salary and gross ￿lary including pension contributions are 2.3 limes (2024.. 2.3 times) the median pay of all other employees an FTE bast$). When making changes to the salaries of 5¢ni(Y stsff, the S¢hwl tskes a¢¢0￿( of: Sustsined perfomiance and contribution during the w¢r¢ding y¢￿$). Any material changes in roles and responsibilities since the previou5 review perityl The percentage in¢re&se in salary awarded to staff The overall affordability of any proFrfised fft¢re•es th seniorsalaries. tsking account both of ¢h¢ School's financial perforniance and the need lo offer salaries compatt fav(vJrably with competitor Instituti(￿$. The School will review and m(thrat¢ the pattern of increases xross its senior staff in order to ¢nsuTe fairness and consist¢ncy. Spe¢ificalty regarding Ihe principal's remuneralion, this is set by the chair and vice chair of trustees taking in to ac¢ount hhs or her perforniance in meeting the goals Set as part of the annual appraisal process. The current level of Temuneration at 2.3 (2024: 2.3) times the medlum Sal￿ of all other staff is ccffisidered relatively low. for the level of responsibility held by the ￿ hol(kr. the breadth of courses offered by the School and the 5i8nificdnÉ changes he has had to manage in recen¢ yeJr4 includirtg mosE Tecently the implementation of the Sehwl's five year strategic plan. ACCESS AND PAtrTICPATION 2025 2024 Actuals Aauals Per Plan Per Plan A¢¢ess investsneni Financial support Research and evaluation 93.771 17.813 13,928 52.5Tr) 92.193 25.150 25.979 47,5 38,0 17,5 20.(MX) 125,512 118.51M) 143,322 103,0 Staff c05ts included in the aly)ve: 67.604 63.708 The School's Access ar￿ Particip*ion Plan can be found aL .ukJ henlo APP2 V1 1 75. 21 LONDON SCHOOL OFTHEOLOGY NOTES TO THE FINANCIAL STATEMENTS (eoDtiDued) YEAR ENDED31 AUGU￿ 2025 FIXED ASSETS Freehold *od leasehold property Motor V¢hltl¢s Flxtsrty fittIRgs & equipment Totsl Cost A( I September 2024 Addiiions Disposals 1287,768 23.194 2.508.997 33.474 3.819,959 33,474 At 31 August 2￿25 ,287.768 23,194 2,542,471 3.853,433 DepreciAtIo At I Sepiember 2024 Disposals Charge for the year 474.779 2.319 1,888,090 2.365,188 20.719 2J19 189.580 212,618 At 31 August 2025 495.498 4.638 2.077.670 2,577,806 Iyet Book Value At 31 August 2025 792270 18.556 464,801 1,275,627 At 31 Au8USt 2 {2(￿> 11.5961 (11.87n 120,21XI) 420 For hiRh all&inmenL in HebTew language ￿udIeS 7(K) For taught Mwers prizes IQ029 For the advancement of s¢ien¢¢- en8agcd Iheolo8y For research fellow 31 J83 For V8Th)￿s rcstricted rrtjrposes WAikinson Prize ECLAS Science for Seminaries 11.625 BFBS Oth¢r r¢stricied funds 11.877 30.819 20.764 EAd•wmeAt IDtome A¢¢ouhts Moniagtte G￿drnan Bursary Joma¢ H¢nnell Burs8ry Sir Joho Laing Memorial Sir John Lain8 Le¢￿(C 28.774 11.205 30.161 560 2,795 31.569 For 5n￿ent buwies III02 For Audeni bu￿rieS 32.￿ For sNdeni bursaries I.] 10 For the annual m¢morial l¢¢ture 2.￿3 $50 T•ial 1.785.831 125.283 (128,425) .877.374 26 LONDON SCHOOL OF THEOLOGY NOTES TO THE FINANCIAL STATEMEiYTS (eomtin•ed) YEAR ENDED31 AUGUST2025 13. ANALYSIS OFNET ASSETS BETWEEN FUNDS R¢stri¢¢ed Fu•d> Ettdowment Futtds Totsl Funds F•Ads FtAnd bal•Dru It 31 Auz•st 2025 R¢pT¢Jented by: Tangible fued assets Investments Current tssets Current liabilitles Creditoys due after one year 1275,627 4,835,329 650,963 (689,672) (17,618) .275,627 6.512,727 1.129,060 (689,672) (17.618) 1.425,71YI 478,097 251.698 6,054,629 1.152.(KKI l.W3.797 251.698 .210.124 1.152.000 Pension Scheme assets 7206.629 1.903.797 251.698 9.362.124 14. CORPORATION TAX The company is exempt fr(xn CoTSMntiort Tax on its charitsble ￿1V￿leS. 15. PENSION COMMITMENTS The School operates two pension schemes for its employees" the London Sch¢)ol of Theology Pension and Assurance Scheme ("the Defined Benefii Scheme-). which is a defined benefit OCCUP41ional pension scheme and a Group PeTsonal Pension (GPP) which is a defined contribwion arrangemenL The Defined Benefit Scheme isclosed io new member5. Employtts who joined the Sch￿] after l April 20(K) aTe offered membership ofthe Group Personal Pension (GPP). The of the Defined Benefit Scheme are held separdtely from the asseis of ihe School and are administered by TrU￿ee$ and rnanaged professionally. The assets of the Group Personal Pension are hekj separately from the assets of the Sch￿1 and are managed professionally. Under th¢ Group Personal Pension (GPP) the School pays contributions io personal pension policies f( pensionable employtts who joined ihe School after l April 2000. The pension cost charge represents contribution$ payable by ihe School io ihe personal pension FK)liGies and amounied to £112.957 (2024- £112,048). Ai 3 1st August ihere were £IA597 of outstatxling contributions (2024.. £20,767) payable to the per$onal pension policies. remainder of this note relates to the pension costs for the Defined Benefit Scheme deterniined in a¢¢oTdamce with the accounting standard FRS 102 a5 amended by Accouniing Sthndards Board DecembeT 2(KJ6. amendmeni. The c(￿trI￿j¢1o￿S w the GPP aTe ac¢(wthtrd for ￿ a cash accruals basis in addition to the costs shown trtlow. The Scheme is subjeci to the Statstory Funding￿jeCtIve under the Pensions Act 21XM. A valuation of the S¢h¢me is caffied out at least every three year5 lo deterniine whether the Funding Objective is met. As part of th¢ process the school must agree with the Trusiees olthe Scheme the contritwiions to be paid to addr¢s5 any shortfall againsi the sta￿tOry Funding Objective. The Defined Benefit Scheme is adminis*red by BaTnett Waddingham LLP in 4¢¢ordance with the rules and valuations of that fvnd. Before ihe scheme closed to fuiwe accruals in the y¢aT, ¢ontribution rates for employees were 601• of pensionable salary. Employer contribution5 were 14.IY•of p¢nsionable salary. Barnett Waddingham LLP h4v¢ provid¢d actuarial advice tothe Governors. 27 LONDON SCHOOLoFTHEO￿￿y NOTES TO THE FINANCIAL STATEME]¥TS {eontin•ed) YEAR ENDED 31 AUGUST 2025 IS. PENSION COMMITMENTS (eoTrtinued) Non S¢h¢me Pension Prtsvisio In addit￿)￿ iothe Scheme liabilitie5 there isa poteniial liabilityof £nil (2024.. nil) for dis¢Teiionary pension benefit4 if such payments coniinued to be made oveT the lives of the beneficiaries at the present raie. These beneficiaries may include retired m¢M￿TS of staff who are not members of the Scheme. These benefits are paid from the School's general fund and not from ihe Scheme itself. The amounts in the balat)ce shed. ¢xcludin8 the d1xreli￿ary ￿￿10n benefii amounty are as follows: 2025 £iKIO' 2024 £OIXl's Scheme assets at year end Pres¢nl value of fuDded ￿lI]gatIonS obligation 5,141 {3,689) 5.241 (3.673) 1,452 (300) 1,568 (300) Provision f(K Costs of p(rtentia] buyout of scheme 1.152 1.268 A¢tu#ri*l galnsllosses tomprise: LOsse￿(gaInS) on scheme &8sets in excess of interest (Gainsyiosses from change in assumpti￿5 Gains from changes to demographi¢ assumyions Experien¢e losses on liabilities 124 (288} (430) (34) 356 192 (323) An*ty$ts of amouttts Charged to •divity ¢osts ulegorle5: 2025 2024 £O(Kl's BaDk and other intsresu (other fina*¢e ¢h*rzes) Interesi on scheme &sseL8 Intere￿ on liabiliiies (249} 173 {249) 187 (76) (62) cha￿£e in scheme liabillties Beginning balance Interesi cost GaIn￿(lOSseS) from changes in actuarial &wmiptiotts Changes ts) demograrthic &%sum￿l￿ Experience losses on liabilities Benefits paid (3.673) (173} 288 {3.657) (187) (141) 34 (356) 225 278 Closing balance (3.689) (3.673) Change In scheme assets Beginning balance Interesi on scheme assets Return on assets less inierest Contribulions by employer Benefits paid 5241 249 (124) 4.840 249 430 (225) (278) Closing balance 5,141 5.241 28 LONDON SCHOOL OF THEOLOGY ]YOTES TO THE FINANCIAL STATEMEJ¥TS (eolltlDued) YEAR ENDED 31 AUGUST 2￿5 IS. PENSION COMMITMENTS (eonti•¥ed) The value of s¢heme'$ &ssets currently exceeds the FRS 102 Valuati￿ of the scherne's liabilities by £1.45m. A recommendation h&% been mth by the p￿s1on trus¢ees that plans be put in place to move towards a complete buyout of th¢ s¢heme's liabiliiies by an insurance company within the next three to five years. At the point this happens, any ¢xcess fithds would be returned to LST and on this bH5iS the current surplus is recorded a5 an asset in the ￿0￿nIs. Since there will be quite significant Costs &ss(Kiated with thts buy out and there are only a limited numb¢r of insurance companies that might ￿ int¢re5ted in bidding for them. which may increase the cost they quote io ￿r¢h￿ them. the current recognised surplu5 has bEert reduced by an amount of £300k so the balanc¢ MO￿ 4¢¢uratsly reflects the best available e51tmale of th¢ FK)tential recoverable amount. 31 2025 ofassets Fund v*lMe 31 August 2024 % of assets Fund value Ewilies and other ￿o￿th assets Bonds and cash 1059 3.082 42Y• 58Y• 2.210 3,031 Tothl assets at end of y 5.141 5241 202S 2024 Actual return on scheme &%sets 125 679 The value ofthe Scheme's liabilitieshas been deterniined by a qualified ach]aryb4sed on the results of iheactuarial valuation as at 5 April 2024. updaied io the review date allowing for ¢ashflows in and of the scheme and using the following assumptions.. Actual wmptions used: 2025 2024 Diseount rate Rate of intre&8e in pensions in payment (RPI max 5V•) Rate of inere&8e in pensions in paymeni {RPI max 3V•) Rate of RPI price infl*ion Rate of CPI price inflation Post- Tetiremeni mortality 5.7(P/• 3.(P/• 2.45QA 2.50Vo 3.05QA 3.2V 2.05•A 2.2Vr• I l(P/o S3PMAI I IOYO S3PMAI 105** S3PFA 105Yo S3PFA CMI 2023 [1%] CMI 20231IV•l 4.85Y• Commumion.. Members are &8sumed to take 20Y• of th¢ir pertsion &$ ttx free cash. SeD8&tlvlty anatysis Impaci on ihe value of liabilities of. Reduciion of O.IV(* in the DI￿Unt Rat¢ Increase of O. IY• in inflation a55UrnPtion Increase in long-term m(¥iality pmjection of1.75Yo £30k in¢r¢ £19k increase £33k increase 16. RELATED PARTY DISCLOSURE As di￿loSed in Note 11.2. the School received a loan from (￿¢ of IL8 trustres in 2023. The total value of the loan was £70,406. The loan is subieci ￿ interesL unsecurt and was wovided ternis a￿eed in accordance with the IKKTrI's gov¢mhng document and conflicts of interest p)licy. LONDON SCHOOLOFTHEOIAIGY NOTES TO THE FINANCIAL STATEMENTS (eo#tinued) YEAR ENDED JI AUGUST 2025 17. LEASIJYG COMMITMENTS At J l August 2025 ihe Scknl w&% committed th making the minimurn lease payment5 in respect of hire of machinery". Operating leases which expire: 2025 2024 Within l year 1.954 1.954 COMPARATIVE ￿ATEMENT OF FINANCIALACTivfTIES UDr¢51ri¢i¢d Restricted Funds Tol#l 2024 Endowment INCOME FROM Donations and leyeies 562.623 79205 641,828 Charltsblt #etivities Education Investments Trading ineome Othtr incomt 2.158,(M)8 190.144 96283 50.548 2.158,(K18 236.224 96,283 50.548 46,080 Total Income 3.057.606 125,285 3.182,891 EXPENDITURE ON R47ising Fmnds Invesmieni manager fee Trnding expenses Fundraising COSLS 35,953 55,910 63,556 1.431 37.384 55.910 63.556 Charhoble adlvtt Educaiion Conferences 3,599.608 39.5(P) 128,425 3.728,033 39,509 Totsl Expenditure 3.794.536 128.425 1.431 3.924,3￿2 Net expenditure befor¢ transfers (736,930) (3,140) (1.431) (741,501) Inv¢sttnent gains 451.156 94.683 16.716 562.555 Nei expendlture (285,774) 91J43 15285 (178,946) Defined i￿er11 pension %h¢me gain5 285,(KAI 285.IKIO Net funds Balance brought forward I S¢ptember2023 (774) 91.543 15285 106,054 .562,494 1,785,831 234.728 10,583.053 Balance carried fO￿ard at 31 August 2024 .561,720 1,877.374 250,013 10,689.107 30