Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
**Registered number: 00759327 Charity number: 312855**
## **THE PURCELL SCHOOL**
**(A Company Limited by Guarantee)**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and Administrative Details of the Company, its Trustees and Advisers**|1 - 2|
|**Trustees' Report**|3 - 14|
|**Independent Auditor's Report on the Financial Statements**|15 - 18|
|**Statement of Financial Activities**|19|
|**Balance Sheet**|20|
|**Statement of Cash Flows**|21|
|**Notes to the Financial Statements**|22 - 41|
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2025**
|**Trustees**|Sophia Coles, Safeguarding Governor2|
|---|---|
||Richard Hill1,2|
||Professor Timothy Jones1,2|
||Dr Diana Salazar|
||Gautam Shashichandra Dalal, Chair of Finance and General Purposes Committee1|
||Professor Christopher Swee Chau Liu1|
||Dr Bernard Trafford, Chair of Full Governing Body1,2|
||Kirsty Von Malaise, Chair of Music and Education Committee (resigned 1 July
2025)|
||Susan Jane Baillie (appointed 18 June 2025)|
|1
Finance and General Purpose Committee
2
Nominations Committee
**Company registered**
**number**
00759327
**Charity registered**
**number**
312855
**Registered office**
Aldenham Road
Bushey
Watford
Hertfordshire
WD23 2TS
**Company secretary**
Adam Wroblewski
**Senior leadership team**
Paul Bambrough, Principal
Adam Wroblewski, Bursar
Paul Hoskins, Director of Music
Tom Burns, Vice-Principal
Ziggi Szafranski, Head of Sixth Form and Designated Safeguarding Lead
Michael Long, Director of Teaching and Learning
Emma Bantock, Director of Operations and Deputy Bursar
Chris Harbour, Director of Development
Jane Mitchell, Director of Boarding
**Independent auditor**
Cooper Parry Group Limited
Statutory Auditor
Cubo Birmingham
4th Floor
Two Chamberlain Square
Birmingham
B3 3AX
**Bankers**
Coutts and Co.
London
WC2R 0QS||
Page 1
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **Solicitors**
Harrison Clark Rickerbys Ltd Ellenborough House Wellington Street Cheltenham GL50 1YD Farrer and Co. 66 Lincoln Inn Fields London WC2A 3LH
Page 2
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2025**
The Members of The Purcell School Governing Body, being the Trustees of the Charitable Company, present their Annual Report for the year ended 31 August 2025 under the Charities Act 2011, including the Directors’ and Strategic Reports, under the Companies Act 2006, together with the audited financial statements for the year.
## **REFERENCE AND ADMINISTRATIVE INFORMATION**
The Purcell School (“the School”) was incorporated on 30 April 1963, changing its name to the present name on 6 June 1984. It was incorporated as a Company limited by guarantee not having a share capital, with the registration number 00759327. It is also a registered Charity under the Charities Act 2011 with the charity number 312855.
In 1980, The Purcell School was designated by the Secretary of State for Education as one of five specialist schools in Britain under what is now the Music and Dance Scheme (MDS). Currently, the Purcell School is one of the 8 schools in the UK supported by the MDS.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing Documents**
The Purcell School is governed by its Memorandum of Association last updated in 1999.
## **Governing Body**
The Governing Body is self-appointing, with one-third of its Members required to retire by rotation at each AGM. The first appointed, or longest serving since last reappointment, are the first to retire. Members retiring by rotation can be re-elected.
It is the policy to recruit Trustees from a wide variety of professions to enhance the Governing Body’s strategic judgement. New Trustees are elected by current Members of the Governing Body. The professional backgrounds of current Trustees encompass music (including performance, teaching and the conservatoires), secondary and tertiary education, the wider world of the arts, law, banking, business, accountancy, and medicine. The Governing Body aims to provide a balance between those who know the School and the local area very well, and those who, whilst committed to its aims, come from further away and are able to provide special insights, experience, political sensitivity and objectivity. It is the policy of the Trustees to include a former student on the Governing Body provided that they have the requisite skills and experience.
The recruitment process is managed by the Nominations Committee. The chief requirement of all Trustees is to accumulate sufficient understanding of the School, its aims and its modus operandi, to enable them to use their knowledge and their professional background in agreeing the strategic direction of the School.
## **Recruitment and Training of Trustees**
New Trustees are inducted into the workings of the School through briefing sessions with the Chairman, Principal and Members of the Senior Leadership Team. In addition they are provided with guidance from AGBIS (Association of Governing Bodies of Independent Schools), ISC (Independent Schools Council), BSA (Boarding Schools’ Association) and the Charity Commission. Governors are advised of and encouraged to attend appropriate external training workshops and presentations.
All Trustees have access to the papers for all Trustees’ Committees to allow them to stay informed of current issues within the School. Staff make regular presentations to the Governing Body or its Committees on a wide range of topics. A programme of gubernatorial visits is arranged to allow Trustees to gain first-hand experience of the School at work; their observations are shared with the Principal and reported on at a full Governors’ meeting. During the visit the Governor checks the school’s SCR (Single Central Record). Sophia Coles serves as Safeguarding Governor with particular responsibility for Child Protection; during her current period of maternity leave, these duties have been formally delegated to Susan Baillie.
Page 3
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **Organisational Management**
The Members of the Governing Body, as the Charity Trustees, are legally responsible for the overall management and control of the School. They meet three times a year.
The work of implementing their policies is carried out by three Committees:
- The Finance and General Purposes Committee is responsible for the detailed scrutiny of the School’s financial position, including revenue, budgeting and capital expenditure. It oversees the preparation, review and finalisation of the audited financial statements and the annual report, prior to their submission to the Governing Body for approval.
- In addition to its financial oversight, the Committee plays a central role in ensuring compliance across all aspects of the School’s operations. This includes monitoring adherence to statutory and regulatory requirements, as well as reviewing key policies and procedures relating to areas such as employment matters, health and safety, and safeguarding.
- The Committee also oversees operational matters, risk management processes, and the planning and delivery of capital building projects and ongoing maintenance. It leads on the development, implementation and periodic review of the School’s strategic plan, ensuring alignment between financial planning and longterm objectives.
- Furthermore, the Committee considers and recommends significant financial decisions to the Full Governing Body, including matters such as staff remuneration and the setting of fee levels.
- The Committee is chaired by Gautam Dalal, who was appointed with effect from 31 August 2024, and meets four times per year.
- The functions of the former Music and Education Committee have been absorbed into Full Governing Body meetings in February 2023. In light of the size and structure of the Governing Body, meetings of the Full Governing Body have been extended to enable detailed consideration of all areas previously within the Committee’s remit, including educational and pastoral matters and the monitoring and review of safeguarding arrangements across the School.
- The Nominations Committee takes responsibility for reviewing the composition, skill and renewal of the Governing Body and the appointment of the Principal and Bursar. The Committee is chaired by Dr Bernard Trafford who was appointed on 1st September 2021.
The day-to-day running of the School is delegated to the Principal and the Bursar. The Senior Leadership Team comprises the Principal, Bursar, Vice-Principal, Director of Music, Director of Teaching and Learning, Safeguarding Lead, Director of Development, Director of Boarding, and Director of Operations.
The Principal and Bursar attend all meetings of the Governing Body, with the exception of the Nominations Committee, where their attendance is not routine but may be invited if appropriate. The Safeguarding Lead attends the first Full Governing Body meeting of the year to provide an update and deliver annual safeguarding training. Other members of the Senior Leadership Team attend meetings as required to present and report on their respective areas of responsibility.
Remuneration is determined by the Governing Body, with the aim of providing appropriate incentives and rewarding individual contributions to the School’s success in a fair and responsible manner. Employees’ remuneration is reviewed annually and benchmarked against pay levels across the independent schools sector to ensure competitiveness.
In setting remuneration, the School seeks to balance external competitiveness with internal equity, ensuring that pay is aligned with the responsibilities and requirements of each role. Subject to the School’s financial position, it is the intention of the Trustees to apply a consistent percentage increase to staff remuneration where possible.
Page 4
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **Charity Governance Code**
The Trustees are aware of the Charity Governance Code and have received the AGBIS guidance which explains in detail the Governors’ Code of Practice and good governance. The Charity has reviewed its current governance arrangements against the Charity Governance Code in 2025.
## **Group Structure**
The School wholly owns Purcell School (Trading) Limited, which did not trade in the year and has now been dissolved since the year end.
## **Employment Policy**
The School is an equal opportunities employer. Full and fair consideration is given to all job applications.
Employees are made aware of the financial and economic performance of the School, at least on an annual basis.
Communication with employees takes place through normal management channels and includes staff briefings, departmental meetings and a variety of electronic communication.
## **Relationships between the School and Related Parties**
The Trustees consider that the Board of Trustees and the Senior Leadership Team comprise the Key Management Personnel of the School. All Trustees give their time freely and no Trustee received remuneration in the year. Details of Trustees’ expenses and related party transactions are disclosed in notes to the accounts.
The Purcell School maintains close partnerships with other Music and Dance Schools (MDS) and together shape the specialist musical education in the UK. The School also maintains links with music colleges, and London venues where it regularly performs. There is also a strong relationship with UK Conservatoires as it is often a direction where most of our students go. The numbers in brackets represent the number of scholarships awarded:
## **Music Colleges & Conservatoires**
Royal College of Music, London: 3 (2) Royal Academy of Music, London: 7 (4) Guildhall School of Music and Drama, London: 10 (5) Trinity College, London: 2 (1) Royal Birmingham Conservatoire: 1 Royal Northern College of Music, Manchester: 3 (1) Royal Welsh College of Music and Drama, Cardiff: 1 (1) Royal Conservatoire of Scotland, Glasgow: 2 (1)
## **Universities & Colleges**
Berklee College of Music, USA: 2 University of Cambridge: 3 Harvard University, USA: 1 King’s College, London: 1 Zuyd Hogeschool, Netherlands: 1 University for the Creative Arts, Farnham: 1 University of Westminster, London: 1
Page 5
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **OBJECTIVES AND ACTIVITIES**
## **Policies and Objectives**
The School’s Objects, as set out in the Memorandum and Articles of Association, is to establish and conduct a school for the purpose of providing general and specialist music education. The School offers a rounded education, with music at its heart, and provides young musicians of exceptional talent and promise with the best possible teaching and environment in which to fulfil their potential, regardless of their background. The Governing Body is mindful of the long-standing need to provide public benefit and of the requirements of the Charities Act 2011. In this connection the Governing Body has monitored closely the guidance on public benefit produced by the Charity Commission together with its supplemental guidance on fee-charging.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
## **Mission Statement**
The mission of The Purcell School is to provide young musicians who demonstrate the potential to become exceptional (irrespective of background) with outstanding teaching within a supportive school environment and to equip them with the self-confidence, adaptability, maturity and perspective to sustain their professional development and personal fulfilment throughout their lives.
## **Aims**
The School’s aims for public benefit are:
- To sustain a safe, happy and healthy environment in which all can flourish musically, academically and emotionally.
- To deliver outstanding musical and academic education.
- To provide a range of high-profile and developmental performance opportunities.
- To deliver personalised pastoral care and support so that the individual needs of each student are met.
- To provide access to musical opportunity and widen participation in areas where this is especially difficult.
- Maintain (as far as is practically possible) open access by admitting students solely on the ability, not according to financial means.
## **Key Financial Performance Indicators**
- A balanced budget is maintained throughout the year – objective met
- An operating surplus (before depreciation) is achieved – objective met
- Student numbers are maintained at or near full capacity, reflecting strong and sustained demand – objective met
- Fee income and collection levels remain robust and in line with expectations – objective met
- Costs are managed effectively within budget, with particular focus on staffing and operational expenditure – objective met
- Fundraising and development income exceeded expectations for the year – objective exceeded
## **Trustees’ Indemnities**
Trustees benefit from indemnity insurance to cover the liability of the Trustees which by virtue of any rule of law would otherwise attach to them in respect of any negligence, default or breach of trust or breach of duty of which they may be guilty in relation to the School. The cost of this insurance in the year has been included within total insurance costs.
Page 6
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **OBJECTIVES AND ACTIVITIES (continued)**
## **Primary Objectives**
The primary objectives of the School to fulfil these aims are to:
- To maintain and develop an exceptional student experience underpinned by outstanding artistic ambition
- To attract, retain and add value to the finest national and international talent
- To facilitate transformational engagement with partners, communities and the wider world
- To develop world-class resources and facilities
- To ensure financial sustainability through effective financial planning and management, diversification of income streams and significant and sustained fundraising
## **Strategies to Achieve the Primary Objectives**
The key strategies are as follows:
- maintaining high levels of musical and academic performance through CPD, visits to other institutions and departmental reviews
- ensuring that the School’s policy of offering places according to musical potential rather than ability to pay is upheld by offering means tested financial assistance to all students accepted by the School, either through the Department for Education’s Music and Dance Scheme or School Bursaries
- ensuring that funding arrangements are effectively communicated to talented young musicians and their parents
- continuing the enhancement of the School’s premises
- expanding fundraising initiatives in the school
- monitoring the requirement placed on the School under the Charities Act 2011 to continue to demonstrate public benefit
- continuing to build links with the community both through access to musical events and activities in the School as well as through Outreach Programmes
- reviewing and developing the School’s strategic plan to ensure that it is fit for purpose and will lay for the foundations for long term future development
## **Principal Activity**
The principal objective of the Charity as set out in its Memorandum and Articles of Association is to establish and conduct a school for the purpose of providing general and specialist music education.
The School is predominantly a boarding school with 149 boarders (some of whom are weekly boarders) and 42 day students. A special quality of the School is its warmth and friendliness and its strong sense of community and purpose, which has developed from a common love of music.
The School was awarded the Mozart Gold Medal by UNESCO in recognition of its outstanding contribution to arts education.
## **Public Benefit**
The Purcell School remains committed to the aim of providing public benefit in line with Section 17 of the Charities Act 2011.
The School offers bursaries through the Department for Education Music and Dance Scheme. For students who do not qualify for the Music and Dance Scheme, support is offered by the School from the School’s own bursary fund. As a result, every student accepted by the School is entitled to means tested financial assistance and the key criterion for admission to the School is musical excellence and not ability to pay. Parental contributions for the majority of families supported by the MDS are currently 15% of gross fees, and any non-Music and Dance Scheme bursaries are funded from the school’s reserves.
Page 7
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **OBJECTIVES AND ACTIVITIES (continued)**
## **Public Benefit (continued)**
The financial support available to students is promoted through the website, on Open Days and in all of the School’s marketing materials. All parents have an opportunity on Open Days and audition days to discuss financial concerns.
In addition to bursaries, the School engages in many other activities that provide benefit to the public within the School’s objectives. These include:
- Concerts in and for the local community
- Free access to the local community to attend all concerts held at the School
- Making premises and specialist facilities available in holiday periods to the music “community” for a wide range of courses, workshops, audition days and study days
## **Equal Opportunities**
The Purcell School is an equal opportunities organisation and is committed to a working and educational environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, gender, sexual orientation or disability.
## **Safeguarding**
The School is committed to safeguarding and promoting the welfare of students and expects all stakeholders to share this commitment.
Governors monitor that safeguarding arrangements are effective by:
- Ensuring that Safeguarding is an agenda item at every meeting of the Governing Body and Education Committee and maintaining appropriate policies, procedures and operational arrangements
- Appointing a Trustee with particular responsibility for safeguarding who visits the School termly and monitors arrangements
- Reviewing an annual report compiled by the Designated Senior Person detailing how School procedures are working and providing an update on staff training
- Undertaking necessary training as required
## **Fundraising Performance**
Income raised through fundraising efforts amounted to £1,501,732 in the academic year. Funds were donated via Trusts, Foundations, Individuals and legacies with a significant donation received from a donor towards a capital project.
We continue to focus on raising essential bursary funding to support those in the School community in the most profound need. Without the crucial support our Bursary Fund provides, the significant social mobility the School enables would be dramatically compromised and the socio-economic diversity of the student body would be significantly reduced - potential outcomes that directly contradict our ethos and mission. Currently, admission to the School is “means blind”, meaning that we select students based on talent and potential, rather than the family’s ability to pay. This life-changing philosophy can only continue if we have the bursary funds to enable it. Giving in the UK continues to decline and a reduction in funding for the arts continues to threaten many institutions. In order to support our bursary students, we need to raise over £600,000 per year which is increasingly more challenging in this climate.
The School’s fundraising policy is updated annually and reflects the standards set by the Fundraising Regulatory Board, of which The Purcell School is a paid and registered member. Our policy includes a complaints procedure and there were no complaints received in the year.
Page 8
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **OBJECTIVES AND ACTIVITIES (continued)**
## **Fundraising Performance (continued)**
To protect vulnerable people and other members of the public, the School only contacts people who have a legitimate interest in music and the School, and/or have opted in to receive communication. Trustees have a commitment to the highest standards of good practice and to ensuring that all fundraising activities are open, legal, and fair.
Our fundraising policy, gift acceptance policy and development privacy notice have all been reviewed in this accounting year.
## **STRATEGIC REPORT**
## **ACHIEVEMENTS AND PERFORMANCE**
## **Key Academic Performance**
The School continues to demonstrate that a specialist musical education provides a robust foundation for academic excellence. In the 2024-25 academic year, the School was formally recognised among the Top 100 co-educational boarding schools nationally for both A Level and GCSE performance. This achievement is particularly noteworthy given the intensive nature of the musical curriculum and the time students dedicate to their craft.
A significant milestone during this period was the ISI Inspection (April/May 2025), which judged the School to meet the required standards across all monitored categories which has been consistently maintained in the previous 3 inspections. This provides independent verification of our commitment to maintaining the highest educational standards alongside our world-class musical provision.
Academic success at the School extends well beyond the humanities and arts:
- Students continue to excel in national competitions, notably the UK Intermediate Maths Challenge, where participants secured 25 medals, with nearly half of all participants receiving an award.
- The 2025 cohort saw exceptional progression, including five students securing offers at Oxbridge for Music and Mathematics, as well as placements at prestigious international institutions such as Berkeley.
- Our academic framework remains highly supportive. With 34 students receiving tailored SEND (Special Educational Needs and Disabilities) support, the School successfully bridges the gap between specialist musical training and mainstream academic attainment in a way rarely mirrored in non-specialist settings.
Page 9
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **STRATEGIC REPORT (continued)**
## **ACHIEVEMENTS AND PERFORMANCE (continued)**
## **Key Academic Performance (continued)**
## **Musical Achievements and Performance**
The 2024-25 period has been defined by an expansion of performance opportunities and the continued international success of our student body across Classical, Jazz, and Commercial pathways.
## **Professional Integration and Performance**
The School maintains a rigorous public performance diary that serves as a vital bridge to the professional music industry. Key highlights included:
- Students performed at renowned world-class venues including Wigmore Hall, Cadogan Hall, Sinfonia Smith Square, and Carnegie Hall, alongside contemporary platforms such as the Glastonbury Festival and Pizza Express Jazz Club, Soho.
- We have solidified our professional standing through partnerships with the Philharmonia Orchestra, the London Sinfonietta, and the Orion Orchestra. Our students have also engaged in high-profile media projects, including filming for BBC Bitesize and collaborating with world-renowned composers.
- The Pop & Commercial Department has successfully integrated into its renovated accommodation, with 15% of the student body now specialising in Jazz or P&C studies as their first-study discipline.
Page 10
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **STRATEGIC REPORT (continued)**
## **ACHIEVEMENTS AND PERFORMANCE (continued)**
## **Musical Achievements and Performance (continued)**
## **National and International Recognition**
The School’s reputation as a centre of excellence is evidenced by the success of individual students in prestigious arenas:
- BBC Young Musician of the Year: The School was well-represented in the broadcast rounds, with one student reaching the grand final to perform the Tchaikovsky Violin Concerto with the BBC National Orchestra of Wales.
- National Ensembles: Students secured leadership positions in the National Youth Orchestra (NYO), including the appointment of Principal Cello, and multiple placements within the LPO Junior Artists Programme.
- Global Exchange: We have continued to foster international relations through reciprocal visits and partnerships with the Middle School of Shanghai Conservatory and projects in Romania and India, ensuring our students possess a global perspective on the music industry.
The effectiveness of our specialist training is best demonstrated by student outcomes. 83% of MDS-funded graduates progressed directly to conservatoires or university music courses, the vast majority securing significant scholarships. This high scholarship rate reflects the ‘conservatoire-ready’ status of our leavers and the School’s success in making professional music careers accessible to talented individuals regardless of their financial background.
## **FINANCIAL REVIEW**
## **Results for the Year**
The School’s total incoming resources for the year amounted to £9,227,985 (2024 - £7,602,678). The net surplus for the year was £780,179 (2024 - £866,908 net deficit) as shown in the Statement of Financial Activities. Excluding the movements in restricted funds and the impact of depreciation charges of £390,259, the School generated an operating surplus from its unrestricted educational activities of £188,399, and this compares favourably against the operating deficits generated in recent years.
## **Reserves Policy and Financial Viability**
Governors consider the balance between retaining sufficient reserves to guard against risks and tying up excessive resources which may be detrimental to fundraising activity. The Governors have agreed that a reserve of between 3 to 5 months of the School’s usual annual total expenditure, which includes bursary fund expenditure, is appropriate to meet the School’s objectives without compromising the continuity of educational and musical provision.
The level of 3 to 5 months expenditure was deemed appropriate predominantly due to the following risk considerations:
- The delay of the Music and Dance Scheme payments, which are 3 months in the past.
- The fee levels are currently not sufficient to fully cover the cost of provision (the school has been operating deficit since 2019).
- The potential failure to meet fundraising targets.
- Difficulties in recruiting and retaining staff, potential impact of pension commitments.
- Change in taxation on independent schools.
Three to five months usual total annual expenditure would amount to a reserves level of approximately between £2,112,000 and £3,520,000.
Page 11
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **Reserves Policy and Financial Viability (continued)**
The target level of reserves may also be varied if the risk profile changes materially, and with the current financial outlook, this may be further reviewed by the Governors in the future.
The School’s total reserves at 31 August 2025 are £11,892,693 (2024 - £11,112,514), of which £1,307,177 (2024 - £276,831) are restricted funds, £10,495,487 (2024 - £11,527,354) are designated funds and £90,029 (2024 – £27,077 deficit) are unrestricted funds. Whilst funds of £1,307,177 are categorised as restricted under Charity trust law, these funds have came from fundraising for School support activities, including bursaries and instrument replacement funds, as well as funds raised to support capital maintenance and development projects across the School.
Excluding the designated funds, which are represented by the net book value of fixed assets, The Schools free reserves are represented by the unrestricted general funds of £90,029. Although this is below the reserves policy level, the Governors are encouraged by the operating surplus generated in the current year as outlined above and are also acutely aware the School continues to operate in extraordinary economic times and that reserves may therefore continue to be at levels below the target reserves policy.
The Governors continue to take concrete steps to continue to build the Schools reserves and ongoing initiatives to achieve this include:
- Cost management: The School is closely reviewing all areas of expenditure and implementing efficiency measures to reduce costs without compromising educational quality. This includes scrutinising staffing structures, procurement, and other operational expenses to identify savings and improve value for money.
- Revenue improvement: At the same time, efforts are being made to increase income. Strategies here include bolstering student recruitment to fill available places (thus increasing fee income), thoughtfully reviewing fee levels, and strengthening fundraising and development activities. The School is also exploring additional revenue streams where feasible, leveraging its facilities and reputation.
The School has strong cash reserves, which sit at £2,457,627 at the year end, and these are considered to be sufficient to cover the expected cash outflows from operating activities over the next 12 months.
There are also a number of actions, as per the strategic plan detailed in the Future Strategic Plans section below, that are being undertaken to bring the reserves to a more sustainable level. The Board of Trustees ensures that resources are managed responsibly in the best interests of the School. The Board approves and monitors the implementation of this policy. The Finance and General Purposes Committee (F&GP) monitors and supervises the current and future financial situation and associated risks. F&GP also reviews and develops this policy and makes recommendations to the Board.
## **PRINCIPAL RISKS AND UNCERTAINTIES**
The Governing Body is responsible for the management of the risks faced by the School. Detailed considerations of risk are delegated to the Finance and General Purposes Committee, which is assisted by senior School staff. Risks are identified, assessed and controls established throughout the year. A formal review of the School’s risk management processes is undertaken on an annual basis. The key controls used by the School include:
- formal agendas for Governing Body activity
- detailed terms of reference for all Committees of the Governing Body
- comprehensive strategic planning, budgeting and management accounting
- established organisational and governance structures and lines of reporting
- a comprehensive suite of formal written policies including staff handbook, safeguarding and child protection, and health and safety
- hierarchical authorisation and approval levels
- external review
- financial procedures policy.
Page 12
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **PRINCIPAL RISKS AND UNCERTAINTIES (continued)**
Through the risk management processes established for the School, the Trustees are satisfied that the major risks identified have been managed as necessary. The Trustees have identified that the key areas of risk that the School faces lie in the effectiveness of its governance and management, the efficiency of its operations, the effectiveness of its safeguarding procedures and in ensuring its financial health and stability. These include, in particular, a significant fall in student numbers and withdrawal or changes to the Department for Education funding, which has been intensified by the current cost of living and the highest inflation in decades. It is recognised that systems can only provide reasonable but not absolute assurance that major risks are being managed.
The management of risk is a routine part of the day to day operation of the School. Policies and procedures are in place to assess and manage risks. During the year Governors reviewed child protection, health and safety, risk management, whistleblowing, professional standards, staff recruitment, bursary and equality policies.
## **FUTURE STRATEGIC PLANS**
The School is planning to launch a comprehensive new strategic plan which is intended to deliver significant improvement to every aspect of its work over the coming 5 – 10 years. In so doing, it will secure and expand recruitment of pupils; widen participation and social impact; improves its physical and virtual resources and strengthen its financial position.
The key principal strategic aims are:
Integral to the Strategic Plan is the School’s core mission of ensuring that places are secured (as far as is practically possible) on the basis of talent, not on the ability to pay and to enable each and every student to experience a safe, happy and healthy environment in which to grow and develop musically, academically and personally.
Page 13
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **Statement of Trustees' Responsibilities**
The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' Report including 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 Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of Information to Auditor**
Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charity's auditor is unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
## **Auditor**
The auditor, Cooper Parry Group Limited, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.
Approved by order of the members of the Board of Trustees on 26 May 2026 and signed on their behalf by:
## **Bernard Trafford**
Chair of Full Governing Body
## **Gautam Dalal**
Chair of Finance and General Purposes Committee
Page 14
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE PURCELL SCHOOL**
## **Opinion**
We have audited the financial statements of The Purcell School (the 'charitable company') for the year ended 31 August 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 August 2025 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 Trustees with respect to going concern are described in the relevant sections of this report.
Page 15
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE PURCELL SCHOOL (CONTINUED)**
## **Other information**
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees' Report including the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Trustees' Report and the Strategic Report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our 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 Trustees' Report including the Strategic Report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the 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.
Page 16
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE PURCELL SCHOOL (CONTINUED)**
## **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:
Our assessment focused on key laws and regulations the charitable company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, Charities Act 2011, taxation legislation, data protection, anti-bribery, and employment legislation
We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:
- obtaining an understanding of the legal and regulatory framework applicable to the charitable company and how the charitable company is complying with that framework, including agreement of financial statement disclosures to underlying documentation and other evidence;
- obtaining an understanding of the charitable company's control environment and how the charitable company has applied relevant control procedures, through discussions with Trustees and other management and by performing walkthrough testing over key areas;
- obtaining an understanding of the charitable company's risk assessment process, including the risk of fraud;
- reviewing meeting minutes of those charged with governance throughout the year; and
- performing audit testing to address the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.
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. The 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 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.
Page 17
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE PURCELL SCHOOL (CONTINUED)**
## **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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.
**Nichola Hodgetts (Senior Statutory Auditor)** for and on behalf of **Cooper Parry Group Limited** Statutory Auditor Cubo Birmingham 4th Floor Two Chamberlain Square Birmingham B3 3AX
27 May 2026
Page 18
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2025**
|**Note**
**Income from:**
Donations and legacies
4
Charitable activities
5
Other trading activities
7
Investments
8
**Total income**
**Expenditure on:**
Raising funds
9
Charitable activities
10
**Total expenditure**
**Net (expenditure)/income**
Transfers between funds
20
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
20
**Total funds carried forward**
20|**Unrestricted**
**funds**
**2025**
**£**
-
7,338,799
340,807
46,647
7,726,253
142,990
7,785,123
7,928,113
(201,860)
(48,307)
(250,167)
10,835,683
10,585,516|**Restricted**
**funds**
**2025**
**£**
1,501,732
-
-
-
1,501,732
-
519,693
519,693
982,039
48,307
1,030,346
276,831
1,307,177|**Total**
**funds**
**2025**
**£**
1,501,732
7,338,799
340,807
46,647
9,227,985
142,990
8,304,816
8,447,806
780,179
-
780,179
11,112,514
11,892,693|**Total**
**funds**
**2024**
**£**
356,180
6,939,878
236,588
70,032|
|---|---|---|---|---|
|||||7,602,678
140,855
8,328,731|
|||||8,469,586
(866,908)
-|
|||||(866,908)
11,979,422|
|||||11,112,514|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 22 to 41 form part of these financial statements.
Page 19
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee) REGISTERED NUMBER: 00759327**
## **BALANCE SHEET AS AT 31 AUGUST 2025**
|**Note**
**Fixed assets**
Tangible assets
15
Investments
16
**Current assets**
Debtors
17
Cash at bank and in hand
23
**Current liabilities**
Creditors: amounts falling due within one
year
18
**Net current assets**
Creditors: amounts falling due after more
than one year
19
**Net assets excluding pension asset**
**Total net assets**
**Charity funds**
Restricted funds
20
Unrestricted funds
20
**Total funds**|424,316
2,457,627
2,881,943
(1,089,732)|**2025**
**£**
10,495,487
100
10,495,587
1,792,211
(395,105)
11,892,693
11,892,693
1,307,177
10,585,516
11,892,693|346,422
1,436,380
1,782,802
(1,533,148)|**2024**
**£**
10,862,760
100|
|---|---|---|---|---|
|||||10,862,860
249,654
-|
|||||11,112,514|
|||||11,112,514
276,831
10,835,683|
|||||11,112,514|
The financial statements were approved and authorised for issue by the Trustees on 26 May 2026 and signed on their behalf by:
**Bernard Trafford Gautam Dalal** Chair of Full Governing Body Chair of Finance and General Purposes Committee
The notes on pages 22 to 41 form part of these financial statements.
Page 20
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2025**
|**Note**
**Cash flows from operating activities**
Net cash used in operating activities
22
**Cash flows from investing activities**
Dividends, interests and rents from investments
8
Purchase of tangible fixed assets
15
**Net cash provided by investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
23|**2025**
**£**
997,586
46,647
(22,986)
23,661
1,021,247
1,436,380
2,457,627|**2024**
**£**
(551,816)
70,032
(31,858)|
|---|---|---|
|||38,174
(513,642)
1,950,022|
|||1,436,380|
The notes on pages 22 to 41 form part of these financial statements
Page 21
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **1. General information**
The Purcell School is a private charitable company limited by guarantee and is registered with the Charity Commission (Charity Registered Number: 312855) and Registrar of Companies (Company Registration Number: 00759327) in England and Wales. The registered office and principal place of operation is detailed on page 1. The nature of the School's operations are detailed in the Trustees' Report.
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the School's financial statements.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Purcell School meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The financial statements are prepared in sterling, which is the functional currency of the School, and rounded to the nearest pound.
## **2.2 Going concern**
The Trustees have assessed the School’s ability to continue as a going concern for a period of at least 12 months from the date of approval of these financial statements. In making this assessment, the Trustees have considered all information available up to the date of approval, including the School’s latest management accounts, approved budgets, cash-flow forecasts, student recruitment and retention data, fee income projections, forecast expenditure, reserves position, creditor obligations and confirmed funding arrangements.
The School receives significant funding through the Department for Education’s Music and Dance Scheme (MDS). Subsequent to the reporting date, the School has received confirmation from the Department for Education that MDS funding has been awarded for the academic year 2026/27. This confirmed funding has been included in the Trustees’ base-case forecasts.
The Trustees recognise that MDS funding is normally reviewed and confirmed periodically and that future funding levels and conditions remain outside the School’s direct control. The Trustees have also considered the gap between the level of MDS grant funding and the actual cost of specialist educational and musical provision, including the School’s fee levels and cost base. The School continues to engage with the Department for Education and other relevant bodies in relation to the future structure and level of MDS funding.
Management has prepared multi-year cash-flow forecasts covering the going-concern assessment period and extending beyond that period to reflect the School’s medium-term planning horizon. The forecasts include only limited marginal uplifts to MDS funding, consistent with those applied in previous years.
The Trustees have not relied on any additional unconfirmed uplift, multi-year funding arrangement or other potential change to the MDS funding model in reaching their going-concern conclusion. The forecasts have also been assessed for plausible downside scenarios, including lower student numbers, adverse movements in fee income, delayed or reduced grant income, cost inflation and timing differences in working capital.
Page 22
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **2. Accounting policies (continued)**
## **2.2 Going concern (continued)**
Under the base-case forecast, and after considering the downside scenarios and available mitigating actions, the Trustees are satisfied that the School is expected to have sufficient liquidity to meet its liabilities as they fall due throughout the going-concern assessment period. The Trustees have considered the School’s current financial position, the continued demand for places, the status of confirmed MDS funding and the actions available to management to manage costs and preserve cash if required.
To support financial sustainability beyond the immediate going-concern assessment period, the Executive Team is developing an interim whole-school strategic plan. This plan is expected to include strategic, operational and structural measures designed to support the School’s longer-term financial resilience and will be presented to the Board of Trustees for consideration and approval at its meeting on 22 June 2026. As this plan is subject to Board approval, the Trustees have not relied on any unapproved measures in reaching their going-concern conclusion, other than actions that are within management’s control and capable of implementation within the assessment period.
The School continues to operate with financial discipline, including:
- regular review of management accounts and cash-flow forecasts;
- scenario-based financial planning across multiple time frames;
- active monitoring of student recruitment, retention and fee income assumptions;
- ongoing cost control and review of discretionary expenditure;
- continued engagement with the Department for Education and other key departments regarding MDS funding; and
- regular reporting to the Finance and General Purposes Committee and the Board of Trustees.
Based on the information available, the forecasts prepared, the assumptions tested and the mitigating actions identified, the Trustees have a reasonable expectation that the School has adequate resources to continue in operational existence for at least 12 months from the date of approval of these financial statements. The Trustees have not identified any material uncertainty that may cast significant doubt on the School’s ability to continue as a going concern. Accordingly, the financial statements have been prepared on the going-concern basis.
## **2.3 Income**
All income is recognised once the School has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Fees receivable are accounted for in the year to which they relate and comprise tuition fees and charges to students, net of bursary fee remissions, but gross of awards made from the School's Bursary Fund.
Donations and gifts received for the general purposes of the School are credited to the School's funds. Donations and gifts subject to specific wishes of the donors are carried to the relevant restricted fund. Voluntary income is accounted for when the School's entitlement to it is considered to be legally enforceable and there is reasonable certainty of receipt.
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Page 23
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **2. Accounting policies (continued)**
## **2.3 Income (continued)**
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
## **2.4 Government grants**
The Charity receives government grants in respect of furthering its charitable objectives. Income from government and other grants are recognised at fair value when the Charity has entitlement after any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably. Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
## **2.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## **2.6 Taxation**
The School is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the School is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **2.7 Tangible fixed assets and depreciation**
Tangible fixed assets costing £5,000 (£1,000 for computer equipment) or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Page 24
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **2. Accounting policies (continued)**
## **2.7 Tangible fixed assets and depreciation (continued)**
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
Freehold buildings - 2% Motor vehicles - 25% on written down value Furniture, fixtures and fittings - 15% on written down value Computer equipment - 20% on cost Musical instruments - 10% on written down value
Freehold land is not depreciated.
## **2.8 Investments**
The investment in the subsidiary company is valued at cost less provision for impairment.
## **2.9 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.10 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.11 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
## **2.12 Concessionary loans**
Concessionary loans include those receivable and payable to a third party which are interest free or below market interest rates and are made to advance the Company's charitable purposes. Where the loan is repayable on demand within one year, the loan is measured at cost, less impairment. Where the loan is repayable more than one year, the loan is initially measured at fair value and subsequently measured at amortised cost using the effective interest rate method, less any impairment.
Page 25
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **2. Accounting policies (continued)**
## **2.13 Financial instruments**
The School only has financial assets and financial liabilities of a kind that qualify as basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the Company and their measurement bases are as follows:
Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost as detailed in note 17. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at face value.
Financial liabilities - trade creditors, loans, accruals and other creditors are financial instruments, and are measured at amortised cost as detailed in note 18. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.
## **2.14 Operating leases**
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease term.
## **2.15 Pensions**
The School contributes to the Teachers' Pension Scheme at rates set by the Scheme Actuary and advised to the Governors by the Scheme Administrator. The scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the School. In accordance with FRS102 the scheme is accounted for as a defined contribution scheme and as such ,contributions are charged in the Statement of Financial Activities when made.
The School also uses a defined contribution scheme for its non-teaching staff. The contributions are charged in the Statement of Financial Activities when made.
## **2.16 Termination payments**
Termination benefits, including redundancy costs, are recognised when the School has the obligation to pay the benefits and they can be reliably measured.
## **2.17 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the School and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for specific purposes by the Trustees.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 26
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **3. Critical accounting estimates and areas of judgment**
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The School makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. In the view of the Trustees, 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.
## **4. Income from donations and legacies**
|**Restricted**
**funds**
**2025**
**£**
Merchandise sales
419
Bursary income
444,017
Instrument and Composition Income
11,627
Chamber Music Fund Income
-
Friends Income
9,914
Donations
1,009,264
Grants
26,491
**Total 2025**
1,501,732
**Total 2024**
356,180
**Income from charitable activities**
**Unrestricted**
**funds**
**2025**
**£**
Educational operations
7,338,799|**Total**
**funds**
**2025**
**£**
419
444,017
11,627
-
9,914
1,009,264
26,491
1,501,732
356,180
**Total**
**funds**
**2025**
**£**
7,338,799|**Total**
**funds**
**2024**
**£**
497
314,795
22,395
9,100
9,393
-
-|
|---|---|---|
|||356,180
**Total**
**funds**
**2024**
**£**
6,939,878|
## **5. Income from charitable activities**
Page 27
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **6. School Fees**
|Gross school fees
Less: Total bursaries
Add: Bursaries paid from restricted funds|**2025**
**£**
7,338,799
(519,693)
519,693
7,338,799|**2024**
**£**
6,939,878
(578,882)
578,882
6,939,878|
|---|---|---|
Net fees received included £4,161,420 (2024 - £4,045,592) paid by the Department for Education Music and Dance Scheme.
## **7. Income from other trading activities**
|**Unrestricted**
**funds**
**2025**
**£**
Application and audition fees
18,615
Insurance claims
45,030
House fund income
13,000
Concert income
51,675
Lettings income
76,328
Coffee shop income
6,998
Sundry income
129,161
340,807
**Total 2024**
236,588|**Total**
**funds**
**2025**
**£**
18,615
45,030
13,000
51,675
76,328
6,998
129,161
340,807
236,588|**Total**
**funds**
**2024**
**£**
17,778
68,960
13,020
19,592
84,713
7,934
24,591|
|---|---|---|
|||236,588|
|**8.**|**Investment income**|||||
|---|---|---|---|---|---|
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|||**funds**|**funds**|**funds**|**funds**|
|||**2025**|**2025**|**2025**|**2024**|
|||**£**|**£**|**£**|**£**|
||Bank interest receivable|46,647|-|46,647|70,032|
Page 28
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **9. Expenditure on raising funds**
## **Costs of raising voluntary income**
|**Unrestricted**
**funds**
**2025**
**£**
Direct costs - Fundraising and development costs
17,679
Support costs - Financing costs
7,901
Direct costs - Staff costs (wages and salaries)
96,138
Direct costs - Staff costs (social security)
11,658
Direct costs - Staff costs (pensions)
9,614
**Total 2025**
142,990
**Total 2024**
140,855|**Total**
**funds**
**2025**
**£**
17,679
7,901
96,138
11,658
9,614
142,990
140,855|**Total**
**funds**
**2024**
**£**
15,371
7,901
117,583
-
-|
|---|---|---|
|||140,855|
||||
## **10. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|**Unrestricted**
**funds**
**2025**
**£**
Educational operations
7,785,123
**Total 2024**
7,749,849|**Restricted**
**funds**
**2025**
**£**
519,693
578,882|**Total**
**2025**
**£**
8,304,816
8,328,731|**Total**
**2024**
**£**
8,328,731|
|---|---|---|---|
|||||
Page 29
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **11. Analysis of expenditure by activities**
|Educational operations
**Total 2024**|**Activities**
**undertaken**
**directly**
**2025**
**£**
5,453,201
6,720,723|**Support**
**costs**
**2025**
**£**
2,851,615
1,608,008|**Total**
**funds**
**2025**
**£**
8,304,816
8,328,731|**Total**
**funds**
**2024**
**£**
8,328,731|
|---|---|---|---|---|
||||||
## **Analysis of direct costs**
|Staff costs
Premises costs
Teaching costs
Welfare and catering costs
School operating costs
**Total 2024**|**Activities**
**undertaken**
**directly**
**2025**
**£**
3,497,915
523,175
210,666
696,863
524,582
5,453,201
6,720,723|**Total**
**funds**
**2025**
**£**
3,497,915
523,175
210,666
696,863
524,582
5,453,201
6,720,723|**Total**
**funds**
**2024**
**£**
4,518,016
691,892
261,187
670,746
578,882|
|---|---|---|---|
||||6,720,723|
|||||
During the current year the basis of the allocation of staff costs between direct costs and support costs has changed so as to more accurately reflect the allocation of staff costs to direct teaching costs. The prior year comparatives have not been reclassified.
Page 30
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **11. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|Staff costs
Depreciation
Hospitality costs
Premises costs
Insurance costs
Other support costs
Technology costs
Other staff costs
Publicity costs
Transportation costs
Governance costs
Legal costs
Bank Charges
Bad debts
**Total 2024**|**Activities**
**2025**
**£**
1,896,865
390,259
85
15,489
98,026
81,837
107,870
45,692
11,311
5,479
113,980
14,924
3,810
65,988
2,851,615
1,608,008|**Total**
**funds**
**2025**
**£**
1,896,865
390,259
85
15,489
98,026
81,837
107,870
45,692
11,311
5,479
113,980
14,924
3,810
65,988
2,851,615
1,608,008|**Total**
**funds**
**2024**
**£**
562,390
392,092
71
23,702
79,951
90,641
109,895
21,252
31,302
4,917
197,088
4,422
48,370
41,915|
|---|---|---|---|
||||1,608,008|
|||||
During the current year the basis of the allocation of staff costs between direct costs and support costs has changed so as to more accurately reflect the allocation of staff costs to direct teaching costs. The prior year comparatives have note been reclassified.
## **12. Auditor's remuneration**
||**2025**|**2024**|
|---|---|---|
||**£**|**£**|
|Fees payable for audit of financial statements|21,500|26,640|
|Fees payable to the Company's auditor in respect of:|||
|All non-audit services not included above|6,000|39,220|
Page 31
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **13. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2025**
**£**
4,224,754
453,387
834,049
5,512,190|**2024**
**£**
4,076,651
379,460
741,878|
|---|---|---|
||||
|||5,197,989|
Wages and salaries also includes agency staff costs of £1,956 (2024; £27,827).
Wages and salaries include termination and redundancy payments, including contractual payments of £1,265 (2024 – £6,163) and non-contractual payments of £Nil (2024 – £16,163). The non-contractual payments for 2024 were made under the authority of the Trustees as being in the best interests of the School. There were no associated liabilities at the year end.
The average number of persons employed by the Company during the year was as follows:
|Teaching
Boarding, Pastoral and Housekeeping
Administration, Property and Fundraising|**2025**
**No.**
103
29
40
172|**2024**
**No.**
101
31
36|
|---|---|---|
||||
|||168|
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
||**2025**|**2024**|
|---|---|---|
||**No.**|**No.**|
|In the band £60,001 - £70,000|4|5|
|In the band £70,001 - £80,000|2|-|
|In the band £80,001 - £90,000|-|2|
|In the band £90,001 - £100,000|3|1|
|In the band £120,001 - £130,000|1|1|
The Key Management Personnel of the School comprises the Senior Leadership Team as listed on pages 1 and 2. The total amount of employee benefits (including employer pension contributions and employer national insurance contributions) received by Key Management Personnel was £950,267 (2024: £917,755).
## **14. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits (2024 - £NIL).
During the year ended 31 August 2025, expenses totalling £208 were reimbursed or paid directly to 1 Trustee (2024 - £Nil). The nature of the expenses reimbursed relate to travel expenses.
Page 32
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **15. Tangible fixed assets**
|**Cost or valuation**
At 1 September 2024
Additions
At 31 August 2025
**Depreciation**
At 1 September 2024
Charge for the year
At 31 August 2025
**Net book value**
At 31 August 2025
At 31 August 2024|**Freehold**
**property**
**£**
15,472,717
-
15,472,717
5,163,129
293,824
5,456,953
10,015,764
10,309,588|**Motor**
**vehicles**
**£**
28,200
-
28,200
23,184
1,256
24,440
3,760
5,016|**Furniture,**
**Fixtures**
**and fittings**
**£**
1,827,327
7,450
1,834,777
1,546,328
71,076
1,617,404
217,373
280,999|**Computer**
**equipment**
**£**
797,049
-
797,049
797,049
-
797,049
-
-|**Musical**
**instruments**
**£**
1,083,931
15,536
1,099,467
816,774
24,103
840,877
258,590
267,157|**Total**
**£**
19,209,224
22,986|
|---|---|---|---|---|---|---|
|||||||19,232,210|
|||||||8,346,464
390,259|
|||||||8,736,723|
|||||||10,495,487|
|||||||10,862,760|
The net book value of Freehold land, which is not depreciated is £685,000 (2024: £685,000).
## **16. Fixed asset investments**
|**Cost or valuation**
At 1 September 2024
At 31 August 2025|**Investments**
**in**
**subsidiary**
**companies**
**£**
100|
|---|---|
||100|
## **Principal subsidiaries**
The wholly owned trading subsidiary, Purcell School (Trading) Limited, is incorporated in England and Wales (Company Registration Number: 02914875). The registered office address is Aldenham Road, Bushey, Watford, Hertfordshire, WD23 2TS. During the current and previous financial years Purcell School (Trading) Limited was dormant. Purcell School (Trading) Limited was dissolved on 18 November 2025.
Page 33
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **17. Debtors**
|**Due within one year**
Trade debtors
Other debtors
Prepayments and accrued income
Grants receivable|**2025**
**£**
206,235
53,614
14,104
150,363
424,316|**2024**
**£**
111,870
4,727
43,270
186,555|
|---|---|---|
||||
|||346,422|
## **18. Creditors: Amounts falling due within one year**
|Other loans
Trade creditors
Parental deposits
Other taxation and social security
Other creditors
Accruals and deferred income|**2025**
**£**
-
123,909
190,394
344,157
100,708
330,564
1,089,732|**2024**
**£**
395,105
112,824
187,409
123,196
187,727
526,887|
|---|---|---|
||||
|||1,533,148|
Included within other taxation and social security creditors is an amount of VAT payable of £236,916 (2024: £Nil) which is in line with the requirement for the School to register for VAT from 1 January 2025.
|**Deferred income**
Deferred income at 1 September 2024
Resources deferred during the year
Amounts released from previous periods|**2025**
**£**
322,307
191,198
(322,307)
191,198|**2024**
**£**
464,031
322,307
(464,031)|
|---|---|---|
||||
|||322,307|
Deferred income relates entirely to Student fees received in advance of the new academic year.
Page 34
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **19. Creditors: Amounts falling due after more than one year**
|Other loans|**2025**
**£**
395,105
395,105|**2024**
**£**
-|
|---|---|---|
||||
|||-|
The other loans relate to £395,105 that was borrowed in the 1980's from the Samuel Gardner Memorial Trust to move the School from its previous campus in Harrow to its current location. It is considered to be a concessionary loan repayable on demand. No amount has been repaid during the year ended 31 August 2025 and no requests for repayment have been received during the year.
## **20. Statement of funds**
## **Statement of funds - current year**
|
**Unrestricted funds**
**Designated funds**
Fixed asset fund
**General funds**
General Fund
**Total Unrestricted funds**
**Restricted funds**
Capital Development Fund
Bursary Fund
Instrument Fund
Composition and Outreach
Fund
Chamber Music Academy
CP Hall Works
**Total of funds**|**Balance at 1**
**September**
**2024**
**£**
10,862,760
(27,077)
10,835,683
137,251
(9,455)
112,196
20,130
16,709
-
276,831
11,112,514|**Income**
**£**
-
7,726,253
7,726,253
-
480,841
9,264
11,627
-
1,000,000
1,501,732
9,227,985|**Expenditure**
**£**
(390,259)
(7,537,854)
(7,928,113)
-
(519,693)
-
-
-
-
(519,693)
(8,447,806)|**Transfers**
**in/out**
**£**
22,986
(71,293)
(48,307)
-
48,307
-
-
-
-
48,307
-|**Balance at**
**31 August**
**2025**
**£**
10,495,487|
|---|---|---|---|---|---|
||||||90,029|
||||||10,585,516|
||||||137,251
-
121,460
31,757
16,709
1,000,000|
||||||1,307,177|
||||||11,892,693|
Page 35
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **20. Statement of funds (continued)**
## **Statement of funds - prior year**
|**Unrestricted funds**
**Designated funds**
Fixed asset fund
**General funds**
General Fund
**Total Unrestricted funds**
**Restricted funds**
Capital Development Fund
Bursary Fund
Instrument Fund
Composition and Outreach
Fund
Chamber Music Academy
**Total of funds**|**Balance at**
**1**
**September**
**2023**
**£**
11,222,994
326,927
11,549,921
137,251
174,710
96,801
13,130
7,609
429,501
11,979,422|**Income**
**£**
-
7,176,466
7,176,466
-
394,717
15,395
7,000
9,100
426,212
7,602,678|**Expenditure**
**£**
(392,092)
(7,498,612)
(7,890,704)
-
(578,882)
-
-
-
(578,882)
(8,469,586)|**Transfers**
**in/out**
**£**
31,858
(31,858)
-
-
-
-
-
-
-
-|**Balance at**
**31 August**
**2024**
**£**
10,862,760
(27,077)
10,835,683
137,251
(9,455)
112,196
20,130
16,709|
|---|---|---|---|---|---|
||||||276,831
11,112,514|
Page 36
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **20. Statement of funds (continued)**
## **Restricted Funds**
The Capital Development Fund represents donations made to fund major projects. Capital Development Funds going forward will be used for the next major building project.
The Bursary Fund comprises grants and donations made to the School for the purpose of funding needy students. Tuition fees in the Statement of Financial Activities include fees funded by scholarships of £514,693. In the year, a total of £519,693 of bursaries were made to student of which £519,693 was paid from the Bursary Fund.
The Instrument Fund comprises of grants and donations made to the School for the purchase of specific musical instruments.
The Composition and Outreach Fund represents grants and donations made to the school for the commissioning and performance of new music and for undertaking community based activities.
The Chamber Music Academy comprises funds received specially to fund a chamber music initiative involving students from the Purcell School led by Charles Sewart.
CP Hall works funds is a donation received to use towards the CP Hall Refurbishment.
## **Unrestricted Funds**
The School has a designated fixed asset fund for the net book value of fixed assets held. As capital purchases are made using other funds, transfers are made into this fund.
The general fund comprises the accumulated revenue surpluses and, once any restrictions have been met, receipts from restricted and unrestricted capital funds. The transfer of funds out of the general fund of £71,293 comprise £22,986 for fixed asset additions in the year and £48,307 to fund the shortfall in bursary funding in the year.
## **21. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|**Unrestricted**
**funds**
**2025**
**£**
Tangible fixed assets
10,495,487
Fixed asset investments
100
Current assets
1,574,766
Creditors due within one year
(1,089,732)
Creditors due in more than one year
(395,105)
**Total**
10,585,516|**Restricted**
**funds**
**2025**
**£**
-
-
1,307,177
-
-
1,307,177|**Total**
**funds**
**2025**
**£**
10,495,487
100
2,881,943
(1,089,732)
(395,105)
11,892,693|
|---|---|---|
Page 37
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **21. Analysis of net assets between funds (continued)**
**Analysis of net assets between funds - prior year**
|**Unrestricted**
**funds**
**2024**
**£**
Tangible fixed assets
10,862,760
Fixed asset investments
100
Current assets
1,505,971
Creditors due within one year
(1,533,148)
**Total**
10,835,683|**Restricted**
**funds**
**2024**
**£**
-
-
276,831
-
276,831|**Total**
**funds**
**2024**
**£**
10,862,760
100
1,782,802
(1,533,148)|
|---|---|---|
|||11,112,514|
|**22.**
**Reconciliation of net movement in funds to net cash flow from operating activities**
**2025**
**£**
Net income/expenditure for the year (as per Statement of Financial
Activities)
780,179
**Adjustments for:**
Depreciation charges
390,259
Investment income
(46,647)
Decrease/(increase) in debtors
(77,894)
(Decrease)/increase in creditors
(48,311)
**Net cash provided by/(used in) operating activities**
997,586|**2024**
**£**
(866,908)
392,092
(70,032)
241,646
(248,614)
(551,816)|
|---|---|
|**23.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**|**2025**
**£**
2,457,627
2,457,627|**2024**
**£**
1,436,380|
|---|---|---|
||||
|||1,436,380|
Page 38
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **24. Analysis of changes in net debt**
|Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year|**At 1**
**September**
**2024**
**£**
1,436,380
(395,105)
-
1,041,275|**Cash flows**
**£**
1,021,247
-
-
1,021,247|**Other non-**
**cash**
**changes**
**At 31**
**August 2025**
**£**
**£**
-
2,457,627
395,105
-
(395,105)
(395,105)
-
2,062,522|
|---|---|---|---|
## **25. Pension commitments**
## **Teachers' Pension Scheme**
The School participates in the Teachers' Pension Scheme (TPS) for its teaching staff. Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The Company is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the Company has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The pension charge for the year includes contributions payable to the TPS of £895,244 (2024; £589,684). At the year end, there were contributions of £75,864 (2024; £110,525) payable in respect of the scheme.
The TPS is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers’ Pensions Regulations 2010 (as amended), and the Teachers’ Pension Scheme Regulations 2014 (as amended). These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS.
## **The Teachers’ Pension Budgeting and Valuation Account**
Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis – contributions from members, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts.
The Teachers’ Pensions Regulations 2010 require an annual account, the Teachers’ Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.
## **Valuation of the Teachers’ Pension Scheme**
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs,
Page 39
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **25. Pension commitments (continued)**
design of benefits and many other factors.
The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with the SCAPE rate, set by HMT, applying the notional investment return based on 1.7% above the rate of CPI. The key elements of the valuation and subsequent consultation were:
- employer contribution rates set at 28.68% of pensionable pay (including a 0.08% administration levy).
- total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £262,000 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222,200 million, giving a notional past service deficit of £39,800 million
The result of this valuation was implemented from 1 April 2024. The next valuation is due to be implemented from 1 April 2028.
A copy of the valuation report and supporting documentation is on the Teachers' Pensions website (https://www.teacherspensions.co.uk/news/employers/2023/10/valuation-result.aspx).
## **Defined Contribution Pension Scheme**
The School operates a defined contribution pension scheme for non-teaching staff. Contributions paid during the year were £244,571 (2024; £152,195). At the year end there were contributions of 18,226 (2024; £17,209) payable in respect of the schemes.
## **26. Operating lease commitments**
At 31 August 2025 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years|**2025**
**£**
10,664
2,666
13,330|**2024**
**£**
10,644
13,330|
|---|---|---|
||||
|||23,974|
## **27. Members' liability**
In the event of the Company being wound up, the liability of the Members to contribute to the assets of the Company is limited to £1.
Page 40
Docusign Envelope ID: 80FCB48A-F87E-8315-80E3-2B3752C0B2FD
## **THE PURCELL SCHOOL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **28. Related party transactions**
Owing to the nature of the Company and the composition of the Board of Trustees being drawn from local public and private sector organisations, transactions may take place with organisations in which the Trustees have an interest. All transactions involving such organisations are conducted on an arms-length basis and in accordance with the requirements of the Charities Act 2011 and the Company's financial regulations and normal procurement procedures.
No related party transactions took place during the current or previous year.
Page 41