THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA ¢ompany limlted by guarantee) DIRECTORS, AND TRUSTEES, REPORT AND ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2025 Company No: 00977615 Charity No: 312872 THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company limit8d by guaranteo) REPORT AND ACCOUNTS CONTENTS Page Dlrectors, and Trustees, Report 3-14 Independent Auditor's Report 15-17 ststement of Flnancial Activities 18 Balance Sheet 19 Statement of cash flows 20 Notes to the Accounts 21-33 THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA Company limited by guarnnteel DIRECTORS, AND TRUSTEES. REPORT FOR THE YEAR ENDED 31ST AUGUST 2025 The trustees are pleased to present their annual directots, report together with the financial statements of the charity for the year ended 31st August 2025, which are also prepared lo meet the requirements for a directors, report and Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Chant￿$.. Slalemenls of Recommended Practice applicable to hari(ies preparing their accounts in accordance with the Financial Reportin9 Standard applicable in the UK and Ropublic of Ireland IFRS 1021 (effective 1 January 20191. OUR PURPOSE AND ACTIVITIES The enduring objective of the Charity is lo offer a public benefrt through the provision of education In the visual arts al the Heatherfey School of Fine Art. The Charty was founded in 1969 and incorporated in 1970. It has had control of The Healhorley School of Fine Art since 1974, which is one of the oklest, and now one of the few remaining fully independenl Art S¢h¢ols in England. Ils primary objeclNe, to Paraphrase ils Memorandum of Association 122.2.771, is to advance education in the wsual arts. by the teaching of drawing. painting, sculpture. design, print-making and a$s￿lated visual arts and crafts. From the earliest days of the founding of the school in 1845, our teaching has been contred on a strong belief in the value lo the artist of learning how lo see. We provide a thorough grounding in methods of working from direct observation basing earty study on the primary source of the human figure. portrait and n*ural objects. Students of Painting, Drawng, Sculpture, Ceramics and Printmaking explore the context of ideas within which they will build a pen8onal language and devebp the technical skills they requirg. The pattem of study offered by Heatherleys has all disappeared from mainstream cdleg89 In the State Sector. We offer a portfolio of full and part time ￿urSeS in direct response to the clear public dernand for ¢onslru¢live and supportive leaching in the skills and disciplines of Fine Art. Full time Diploma Courses are offe￿￿ for those who wish lo develop a career or lo enrich th￿r practice. Part lime courses are structured to introduce and develop the skilL8 and interests of students who may construct their own menu from over 30 courses. EXperien￿d tutors are all artist practitionèrs and many are graduates of the Royal College of Art or The Slade. We offer a creative ￿aming environment to our student community whatever their age. background or range of abilty. The School Iwks to inlgre5t on its capital reserves to subsidise bursaries and free places as particular needs arise. Funds have been set aside for this purpose. The Charty is looking activety towards raising further funds specfficalty to extend this programme. A¢hlevement and aGtiviti08 The mission of the ￿h0o1 is to promote academic excellence and an educatlon In thg Flne Arts for all. W& are commltted to making our Diploma and Part time coursgs aceessible to a dlverse student population. Accessible Learnlng Healherléys offers full and part time courses in Fine Art to students with a variety of needs. Our student demographi represents a wide range of ages, Social and cuttural backgfound and ethnic dNersty. We are noted for the strong sense of friendly communty which is fostered wrthin the school, promotes a constructNe approach lo leaming and is 8n important supwrt to students when they ￿aVe. THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company limlted by guarantee) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2025 We encourage and respect the part￿ipatIon in our courses of all adu￿ groups from any background, whether they are preparing for professional practice as artis15 or exploring and developing their creativity on a part time basis. We do this by providing a range of part time day or evening ￿urSes. offering beginners flexible and accessible ehoices for entry level tuition. Full lime Diploma courses in Painting and Sculpture offer MO￿ advan￿ students Ihe opportunty to develop their abilib'es in greater tjepth. Day, evening and weekend courses provide an a￿eSsIble introcludion to the Fine Arts for aduh students of all ages and levels of ability- They may ch¢>)se to use this programme as a pathway lo further learning or Simp￿ enjoy and benefrt from the range of possibilities available to the amateur enthusiast. Structured Diploma courses in Portraiture and Sculpture, directed by Tony Motl and Minna Stevens respectively, offer two years of intensive study lo those %tho wish to develop a professional career in art. Sculpture Dipbm8 Graduates may chwse lo continue their studies in an elective Post Diploma graduat8 year. The Post Diploma in FiguratNe Painting, COOTdinaed by Fred Crayk, is a one year programme offered to students who have completed Heatherley's Diploma in Portraiture or an equNalent degree COUTse in painting. Students are provKled wf(h opportunities for further personal development as they make the transrtion to independent studio practice. Sludents E￿h year students are supported so that they may be qualrfied for a career in the arts or to appty for courses in further and higher education for which they might not otherwise have been eligible. In an era of fluGtuating and unsettled employment prospgcts, He8lheHeys attracts a number of mature students who are drawn lo our vocational courses as a rneans of developing or Changing career pathways. The Charity has helped a number of students lo rediscover an earlier unfuffilled vccalion in art and design. or lo lake inf(ial steps into a new field after another career. On leaving Younger students may seek fijrther qualifications on completion of a Diploma course at Healherleys, for instsnc8 by continuing their studies elsewhere on BA degree courses in Fine Art. Artematively diploma graduates may choose lo ¢omplete a further year of Post graduole study in ef(her sculpture or painting al Heatherfeys. Their high Calib￿ has been marked by the regular acceplanca of our graduates on Master of Arts degree courses 81 world leading univeT511ies such as al the Royal College of Art. Cty & Guilds of London Art School, Central St Martin$ and schools of the University of the Arts, London. Diploma Courses al Heatherley's are structured so that they equip students with the practical skills and under8tan(Jing necessary for professional practice. This lo an e*ienl that is not nomially found in mainstream art schools these days. Gradua18s of the school are enabled lo establish themselves as exhibiting artists in painting, sculpture and printmaking. Many graduates of the Diploma in Portraiture ¢hc()se lo become professional portrait painters worf(ing to public or private commissions. On ￿ayIng the school, Dipbma graduates may gain professional employment in a varw of arts relate(l areas including 8xhibf(ion prepar8tion and curation, educational programmes, arts promotion and t￿hnical production such as making s￿nery and props for film production and theatrical companies such as at the Royal Opera House, London. Accrodlted Education Healherlays has ac¢redited status awarded by the British Accredrtation Council. Accreditation underlines academic excellence to intemationalty ￿cepted standards and promotes student confidence in our independent inslitulion. The Council demands that our building and faciliiie8 meet the hNJhest standards of Health and Safety, and that we subject our courses to continuous review. By means of a system of staff appraisals arKI class observations we ensure our teaching staff and eL)urse programmes are of the highest quality so that we are able to fuKil student expectations. First awarded in 2017, the schcK)l undergoes regular interim inspections and the Britl8h. THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED {A company Ilmlted by guarantee} DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2025 Accreditation Council make a full inspection every four years. After a full inspection in January 2024, w8 wero delighted to receive their highest rating in all eategories and ourAeerediled slalus was fomally renewed. Flnanclal Support Each year wè offer financial support lo a numb&r of students who are tslented but financialty disadvantsged (often younggr ones) so that they may bongfft from the figurative art education which is provided by Hfjathgrtoys. Thg xhcol has ¢￿ated a Bursary Fund, setting aside school funds to provide financial assistsnce for Diploma course students who would othe￿1$e be unable lo afford fees for this ￿0-year course. Bursaries a￿ award￿ each year for this purpose. The John Walton Student Support Fund is available to help Diploma students already in recèipt of a Bursary bul who find Ihemsefves in unforeseen ￿rffiCu￿1e$. They may app￿ ￿ help with travel, Imng expenses or buyin9 course matenals so that they are able to continue wf(h their studies. We have the enthusiastic $upport of Patron$ and our Board of Trustees who are working to increase the level of support we can offer financially disadvantaged students. With their help in approaching donors, charitable trusts and foundations, we have been able lo aitract sponsorship for students who could not otherwise afford our fees. We are grateful to a number of sponsors, including The Worshlpful Company of Palnter Stslners, Patrick Walden, The Linbury Foundation,and Worlds End Studios, who have donated funds to be used to support our desetving students in their studies or upon graduation and also grateful for the generous donation made by South Square Trust. This new Scholarship Award will fund a Bursary for a talented bul financial￿ disadvantaged young person who will now be able to attend Heathedey's Diploma Course in Portraiture. Donations and Prizes We offer support lo charities who share our charrtable aims in the form of financial prizes and offers of free tuition awarded al exhibi(ions. In return we receive free advertising in exhibition publiciiy which promotes the offer of the school lo potential students. Heatherleys supporte(I the Annual Exhibition of Contemporary Portrait Paintsrs to be held at The Department store Brixlon in June-July We awarded a prize at The Royal InstitLrte of Watorcolour Artists al their exhibition held at tho Mall Galleries in March. We awarded prizes for Sculpture and for Dwing at the Annual Exhibitlon The Chelsea Arts Society held at Chelsea Town Hall this June. Student welfare The school has an important therapeutic function for some of our students. Although highty creative, they may be challenged by drfficullies which are temporary OT pemianent and Tange from depression or bereavement lo autism or include Phys￿01 problems such as nThJbility or hearing loss. Our modern building i8 PUTpose designed and equipped so that studios and facilities are fully accessible for those with physical disabilities. Unsupported, th￿ issues may interfere with the demands of an education in art and could lead to the abandonment of a course. As a smaller Sca￿ academic community, we are able lo help those who might otherwise struggle lo learn in a larger, more impersonal university setting. They have been ablg lo aGhieve their potential al Healherfeys, enhance the qualty of their lives and develop ¢ar8grs in a broad range of arts related activities. Heathgrlgy$ has developed and advertises our firm policy of inclusion for disadvantaged students and under-represented minority groups. We welcome a diverse range of students who, although faced with physical or mental heatth diff￿Ul11es or challenged by issues concerning identity, can fully 8njoy and benefft from our teaching. In 2024125 we continued our support for stu¢Jenls whose leaming wa$ disadvantsged due to physul disabilty or issues of mentsl health or identty. THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company Ilmited by guarantee) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2025 Our Student Support Officer, Diana Horton, worked with class tutors in order to identfy and include students who required indwidual support. She was able to guide tutors to an understsnding of the particular challenge8 an individual student might face so that they would be better equipped to help them with their leaming. A5 8 personal connection for students, Diana is able lo offer direct pr8Ctical assistance and emotional support on a range of levels. Wrth this help Ihey are able lo achieve their potential by completin9 courses which they might not olhewise have been able to sustain. For instance, a Diploma sludenl with impaired colour vision was enabled lo use digital support that could help with observational painting. He successfvlly completed his tw￿year Course of slu0¥ at Healherley's and was then awarded a place on a Master of Arts degree course. Each year new Diploma Students studying Portraiture are invrted to lake part in a stimulating proyramme of open discussion and awareness themed around questions of diversty and identity. We support part lime students oxperiencing drfficutties such as Autism or with earfy onset dementia so that they might continue to enjoy their crealivily in a familiar and friendty environment. Sehool policies communic81e our commrtment lo support those who need ri (for instance, Equal Opportunities, Safeguarding and Leaming Support). School staff receive training and policies are regularty iewewed, published on ourwebsite and ovailable In hard copy al accessiblg infomiation points within the 8chcrf)l. 0￿reach and support We actNely seek opportunitie5 to benefft the public and have d&velopèd a series of rewarding partnerships betsveen Heatherleys and our local community, including neart)y schools and hospf(als. These partnerships are a powerful way to promote community spirit and S¢xial cohesiveness. Our links wf(h local schools enable us lo encourage the creativty and confidence of young people in a variety of initiatives. We created ¢)PPOrtunities to invite and involve members of the public in a Tange of events al Heatherleys, for example We invited members of our Icul community to view a range of exhibilKJns organised by the schcol in our Consgrvatory Gallery. These included the work of part time and Diploma and Post Diploma students, staff exhibf(ions as w811 as the work of visiting profgssional artists. Our Diploma Students. Graduation Exhibition is a popular annual event and we were delighted to te able to share and ￿lebrate th• achievements of our 51udenls with the general public. We maintain close connections with the young p8ople of local Chelsea Academy Sch¢)Dl who are invf(ed lo participate in Printmaking seSsior￿ t)eld for them in our specialised studios. A group of S￿th fom Academy students and their teacher were invited to view and discuss the works in our annual Staff exhibition. The first Heatherley Festival of Printmaking took place in June accompanied by an exhibilh)n of student prints. We invtted the public lo enjoy free 'laslel wot1(shop$ and demonstrations in our stuéio aimed al demystfying printmaking processes. An open air 'hands on, workshop. set up in the car path. gave visitors the chance to explore the art of screen printing and croale magical Cyanotype prints by means of sunlyhl. During the summer we were able to provide therapeutic 8rts sessions for marginalised and vulnerable young people from Ealing who do not ordinarity have access to the creatNe arts. Healherley's tean of tutors workwj with the young people of Bollo Youth at their communty ￿￿tre in Ealing and we were delKJhted lo welcome the group to a ceramics session in our studio at Healherfey's. Wg are gralefvl lo Young Ealing Small Grants Fund for the financial support they kindly provided for the project. During the summer Healherley's lulors also worked with the Curzon Centre for Family Wellbelng. Based in Harlesdgn and Stonebridge, the eenlre supports families with young children who face a mix of challenges from housing and financial pressures lo mental wellbeing. Healherley's team were able to help families and young people enjoy their creativity by providing 'hands-on' workshops and pnntmaking sessions. THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA Gompany limitod by guaranteg) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2025 We actNely support some of Britain's major art8 80cieties who share our ¢haritable aims. Heatherleys sponsored a range of public prues and awards in order lo acknowledge the aCh￿VeMent of developing artists and to encourage aspiring artists attempting to develop a career in the Fine Arts. Societies supported by the school during 202415 included the Royal Watercolour Society and the Chglse8 Arts Swiely. Our support for societies associated with the Nation81 Federation of Brrtish Artists also included the Royal In$lrtule of Painters in Walercolour. the Pastel Society and the New English Art Club. We were delighted te sponsor the Annual Exhibition of Contemporary Portrai( Painters held al The Department Store Brixton in June-July 2025. We eneouraged the creativity of young peopl8 by sponsoring local phottsJraphy competition 'A Day in the LiFe'. donating the educational opportunty of'hands on, sessions in our Printmaking studio. In addition we offered arts societies the use of our specialised studio and workshop facilrties The Pastels Society organised vacation workshop sessions at Heatherfey5 We offered studKS use to the Chelsea Arts Club to hold weekly lrfe drawing ¢lasse8 for theiT l¢Jcal artist members. We hostad a Masterclass long weekend for the Society of Portraf( Sculptors. Future Actlvlti85 We are determined lo support and respond to the requiremgnts of the those seeking an education in the Fine Arts based on fundamental skills and technical disciplines. We continuousty enhance the qualty of our courses in order to do this. In 2025128 we will monitor developments in educational, $¢xial and financial spheres in order to Supp￿ a programme of opportunities relevant and responsive lo the needs of the public. Forward Planning: we will review and update strategic planning targets ift the light of the changing economic climate which may affect the personal circumstances of our students and limit their opportunity to access our courses. We will make some shorter courses available to provide further flaxibilty and more affordable optv)ns for our student8. quality control: we wll consolidate and expand our programme ol staff appraisals. class observatlons and sludenl feedback so that we maintain our ￿pUtatIOn for academic excellence. Supporting our stsff: we will continue lo support our teaching staff in their professlonal development, offering Ihern opportunlcies to exhibf( their WO￿ to the public and lo their students in our Conservatory Galtery and promoting their xhievements by means of Social Media. Supportlng our students- we will find new opportunities lo promote the help our Student Support Off￿@T is able lo offer so that students may access the support available. Outreach: We will research new opportunities and funding possibilit￿S that will enable us to share our skills and faciiffies with bcal communTty groups who may not be able to access regular courses. Communlcation-. our marketing team will seek to create a strong Social Media profile in order to share the lively creativrty and ethos of our school community with the public. We will finalise the dessgn and development of an engaging new website which will present thg OPPOrtuniti8s for full or part time art education offered by our ￿UrseS to intending students. THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company IlmSted by guaranteo) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2025 Selected student and alumni achievement5 We are delKJhled to hear of the achievements of both our eurrenl students and of Healherlels alumni who are successfully developing their creative careers, many of whom were selected t¢ show their work in presl4ious exhibf(ions nationally and in London during 2024125 Julle Slmpson. post graduate sculpture student. was Se￿Cted to show her in5ts11ation with the Society of Marine Artists * their exhibition at the Mall Galleries in London. O¢tober Mark Goldby, Post Diploma Sculpture graduate, took part in the exhibition 'Condilions', at th8 Whitgift Centre. Croydon. October. Alumna Sarah Jane Moon, sh¢Jved her work at the Guildford House Open Exhibition in Guildford. November to March. Robln Janvrln. Open stud￿ student, was awarded the Helen Wllson Prvze for his painting shown in Ihe Annual Drop-in Open Studi¢ Exhibition at Healherbys. Decomber. Jenny Glenton. painting student, Sh¢)￿d her work in 'Transition' an exhbition at the Ealing Art8 Centre, London. February. Alumna Sarah Jane Moon recewed the Rudolph Blumo Foundab'on Aquisilion Award at the Young Masters Awards Ceremony in February. Sarah Jane also exhibrted her paintings in ' A room of their own. al the ASC Studios, Brixton in March Portrait Diploma student Caspar de Bono was selected to laJ(e part in the annual exhibition of the Royal Society of Portrai( Painter8 at the Mall Galleries in May. Graduating Portrait Diploma sludenl L1221e Owen. Elizaveta Larina and Tony Wheeler gained plaw on the Master of Arts course al the Clty and Gullds School of Art. London starting in September. Sheen Ochavez. alumna of the Post Diploma Course in Painting, was awarded a place on the Master of Art$ course to study painting at the Royal College ofArt. London. Alumna Ra¢hel Parker. Vice President of the SWA invited fN8 students of painting and sculpture lo exhibri their work at the Annual Exhibition of the Swety of Women Artists at the Mall Galleries, alumna Sarah Jane Moon and Diploma student Lizzie Owen were also selected to show their w(xk.June. A number of Healherley's students and alumni, including Darla Coloridge, Mlchael Lang, Cella Norniand, Jullet Wllllams and Julie Simpson took part in the Annual ExhibilM?n of the Chelsea Arts Society held at Chelsea Town Hall in June. Painting alumna Sarah Jane Moon organised and ¢ural¢d 'Conlgmporary Brili$h Portrait Painters.. an exhibition held 'Down8tairs at The Department Store, Brixton. Exhibf(ors induded Heatherley's 81umna Kayoon Anderson June-July. Carving students Glgl Salomon and Mark Wlles We￿ selected to show $¢ulpture al the Summer Exhibition al Green and Stone, Fulham Road London in August. Post Diplcxma in Figurative Painting student Maria Aracil was awarded a place on the MA Fine Art course 2025-26 at City and Guilds School of Art. Sophle Pecko. graduating Student of the Postgraduate Course in Figuratwe Painting. w8s awarded the Levethulme scholarship which will enable her to benefit from a place on the MA course in Painting at Cty and Guilds School ofArt, London. Portraf( Diploma Students Lizzie and Caspar de Bono and Sculpture Diploma student T￿n Wang were awarded prrLes for Painting and Sculpture at Healherleys Diploma Graduates Exhibitv)n in Juty. Portraf( Diploma graduate8 Helolse Bouchot and Tiffany Mak were both awarded scholarships by the Worshipful Company of Painter Slaingrs which woukl enable them to complete Postgraduate studies at HeatheAey'$. THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company Ilmited by guarantee) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2025 Overvlew We seek opportunities to support and enable tho studies of our students on a number of levels. For instance. in 2024125 we were able to offer financial support in the form of bursary assistsnce with the paym&nt of fees lo flnancially disadvantaged Diploma students. We were ab￿ lo support Postgraduate students in making the transition from full time study lo independent careers by obtaining scholarships and also by developing flexible study options. Our Student Support officer was able lo arrange practical solutions for full and part time students who had drfFicutties wlh their leaming. This help enabled them to beneff( from Ihwr courses and to develop their potential Academic assessmgnt advisors including representatives of the Royal ScKiety of Portratt Painters and the Society of Portrait Sculptors reported that our graduating Diploma and Post Diploma S￿dents ¢ontlnue to achigve wn6iStently high academic standards in the work exhibited for final a88essment. As a small school we are able to communicate easity with our students and respond quickty to their changing needs. Aware that the economic climate has continued to challenge our students. we introduced a programme of shorter. affordable part timo and lasler courses so that students who are unable to commit to our regukr pattem of twelvg week terms may continue their studies. We will develop this projramme further in 2025126. In January 2024 The British Accreditation Council renewed He8lhed&y's Accredited status wth their fullest endorsement in all categories including for the management of our 1nstrtut1￿, fa¢ililies and for the qualty of the leaching and assessment of our xademic programme. GOPR We implement the requirements of the Dats Prolecbon Act {May 20181 ensuring that the confidential data we coll&t is Safeguarded and secure. We e¢Jmmunicate the ways we use, prot&t and store data. publicising our legally appfoved Data Protection Policy by means of Heatherleys, websf(e. Publ1¢ benefit Statemont In shaping our objectives for the year and planning our ￿tNItIeS. the trustees havo considered the Charity Commission's guidance on public benefit, including the guidance 'publi¢ benefrt.. running a charity IPB21. The achievements and activ￿￿$ above demonstrate the public benefrt arising through the Charty's activf(ies. FINANCIAL REVIEW The Account$ shtrw 8 defiot for the year ended 31st August 2025 of £96,66712Q24 - £131,586 deficfc}. this is after including a depreciation charge on the school building at 75 Lots Road of £99,141. The financial position at the yearend revealed by the Balance Sheet on page 19 shows net current a8sels or working capital of £769,746 {2024- £811.1201. The net book value of tangible fixed assets held all of which are used directly for charitable purposes, amounted lo £3,257.721 (2024- £3.357.7611. The market value of investments is £846,42412024- £810,377). We are an independent college, solely reliant upon student fees to finance our oper*ions and any surplus In￿Me is invested lo provide a retum that will replenish our butsary fund which enables Students to benefit from receiving a Fine Art education they olhemise may not have had an opportunity lo study. Principal Funding Sources Prinapal funding sources are donations and income from student fees. THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company Ilmited by guarantee) DIRECTORS. ANDTRUSTEES. REPORT FOR THE YEAR ENDED 31ST AUGUST 2025 Fundralsing standards The charity is not reglstered with the Fundraising Regulator and has not earried out any significant fundraising aclivi(ies. Investmgnt powers and policy Under the Memorandum and Articles of Association, the Charity has the power to make any investment which the Iruslees see fit. The Iruslees have considered the most approprrale policy for investing funds and have determined that a mix of investments lo generate income combined with cash deposits lo ensure that we can rneel our requirements. The trustees have delermined lo maintain the most appropriate poI￿Y for investing fvnd5 IS to.. a) invest with Ruffer LLP and maintain some fLsnds on deposit with Charf£ies Aid FOundat￿)n {CAFI in conjunction with Scottish Widows Plc. b) ensure Sufficient funds are held in deposfi and cu￿ent accounts lo provide for working capital requirements. R•sarves pollcy The Tru81ees have established a policy whereby the TèseNes of the charty are maintained at a level lo enable the continued operation of its aclwilies. It is the policy of the Trustees lo maintain free reserves at a level equivalent to at least six months running costs to enable the Charity lo meet ils obligations in the short term together wilh funds lo cover any unforeseen deficits or revenue shortfalls. In setting this policy the Council of Trustees takes account of the following factors.. 1 Stsff contracts." maximum period of noti￿ for staff contracts is three months. The school has long4erving Staff and this affects the maximum amount of statutory redundancy payable. 2 Commitments.. The school has contracts with mainl8narrE Companies to ensure the safe use and maintenance of lits, equipment and the upkeep of the sch¢xJl. Six months running costs are calculated on the basis of projected expenditure. with no allowance made for projeclod income. The current reseNes amount fixed by The Thoma$ Healhefley Edu¢alional Trust Ltd is £629,463. The UnreStr￿ted funds not designalod or invested in tangible fixed assets held by the charity are £798,186 (2024- £767,847). As al the yearend accounts showed reserves of £4,891,291 12024 - £4,987,958> of which £47.74412024 £55.305 was reslTlCted. In addition, the Trustaes have set aside designated funds totslling £770,24012024 - £798,345) for four 8pecific purposes.. a designated Bursary Fund, a designated Building Fund and a designated SchcKsl Devdopmènt Fund and a Building Development Fund. Butsary Fund This fund was initially set up lo assist wf(h the provision of al least two bursaries per year lo gifted students who would otherwise be unable lo afford to attend the Diploma Course.. due to an increase in demand for bursary assistance and to enable us to fu￿1 our charitable role a$ a prOV￿er of art education the Truslegs have significantly increased the v81 of Designate(l Bursary Funds with a view lo offering al least six bursaries a year for the next five years. Seven bursaries were awarded in the academic year 2024125 and the balance of the unrestricted Bursary Fund is £57.640 12024 £77.0451 and the restricted Bursary Fund is £33,057 {2024 £43,057). If there are any surplus funds, the Trustees decided in 2016 to replenish the Butsary Fund annually by transferring 6Yo of surplus income over expenditure before deducting building depreryation to the Bursary Fund wtth a to sustaining a hfjalthy and vrtal fund. 10 THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company Ilmited by guarantee) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2025 Bulldlng Malntenance Fund This fund is used to provide for major upkeep and repairs to the school, there was no movement in this Fund for the year to 31 August 2025. School Development Fund This fund has been created to enable the development of new courses. lund a new website and datsbase, A sum of £8,700 was expended from this fund to continue the development of a new website. Building Improvement Fund This fund has been created to provide improvements of eneryy effIC￿nCleS within the school. there has been no movement on this fund for the year to 31 August 2025. Re5tri¢ted Prize Fund There is also a restricted fund, The Prize Fund, from which prizes are awarde(l annually to talented students, the current value of the Prvze Fund is £12,148 {2024- £12.2481 The Charty has adequate cash reserves and the trustees believe that the school ean fu￿11 Its day-t￿daY obligations. STRUCTURE, GOVERNANCE AND MANAGEMENT Governlng Document I Constltutlon The Thomas Heatherfey Educational Trust Limiled is a ￿MpanY limited by guarantee and a registered charty govemed by its memorandum and articles of association. The Charity number is 312872 and the Company number 15 977615. Recruitment and appointmgnt of Trustees As set out in the Articles of AsSoC￿tion the chair of the Council of Trustees is nominated by the other trustees. The Diwlors of the organisalion are also the charty trustees for the purposes of charily18W. The Council of Trustees have wer to 2ppoint additional Trustees as il considers frt to do so. The Trustees have no beneficial interest in the company other than as members. The Trustees are also the dir￿tOrS of the company. All of the Trustees are members of the company and guarantee lo contribute £1 in event of winding up. The Council has the p¢)wer lo appoint addrtional Directors. Trustee induction and tralnlng The Trustees maintain a good working knowledge of charty and company law and best praclise by regulaT reading of charity press articles and Scrutiny of Companies House, Charity Commission, other Govemmenl and voluntary organisation advisory websties. New Trustees are given copies of the Memorandum and Articles ¢f Association and copies of previous year's minutes and attènd an induction session given by an experienced Trustee. 11 THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company limited by guarant••) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2025 Strncturg and Management The object of the Charity is to advance V￿u81 art education primarity in the figurative tradilKJn thThgh The Heather School of Fine Art. The Company is organised a5 follows.. a) The Company is govemed by tha Council of Trustees, who are elected annually from thg membership of the Company. Trustees are elected, re-elected or retire at the Annual General Meeting of the Company. The Council eleets a Chair-person from ils number. The Council currentty has ten members. All new Trustees are provided wrth relevant d¢xumenlation on their responsibilities as Trustees. b) All members of the Council gwe their services free of charge. cl Persons interested in the promotion of education in the visual arts. with appropriate backgrounds and qualifications, a¥e invited by the Trustees to join the Charity a$ Company Members. dl The Council meets al least three times a year. Financial and management reports are provided at each meeting. el The Charity appoints tsvo executive officers, the Principal of the Schcol and the Bursar who manages the financial affairs of the Charity. fj The School is directed by th9 Principal and an A￿d￿mi Board. Organisatlon The trustees of Ihe company meet temily as a Board, bul also set up a range of sub-groups as required lo meet btheen Board meetings as necessary. It is governgd by the Council of Trustees, which sets the overall framwiork. The Principal is the Chief Executwe Officer and the Members of the staff le8m are then delegatod fvll responsibility for implementation within this framework. The role and contrlbutlon of volunteers During th& year no volunteers were used to support the work of the paid staff. staff Healherfey's prides itsell on its dgdicated and experienced lecturers and tutors, all of whom are actively practising artists, and many of whom have been with the School since the 1970$. In any academ￿ year the number of those teaching will be in thè high twenties. The School thus offers them the OPP¢)rtunty lo pass on their particular exFertise while continuing their own professional practice on a part-lime basis. The Academic Board. responsible for the direction of the &hool: Principal.. Veronica Ricks MA IRCA) Director of Studies & Course Director, Diploma in Figurative Sculpture.. Tony hllott HDFAILond} Course Director, Diploma in Portrailure.. Minna Stevens MA IRCA} Co-ordinator, Printmaking.. Hilary Daltry MA {Rome Scholar) Co-ordinator, Post Diploma in Figurative Painting.. Frgd Crayk 12 THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company limited by guarantee) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2025 Related Parti0$ None of our Trustees receives any remuneration or other benefrt from work on behaW of the charty. Any contractual arrangement wrth a re18ted party needs to be dI￿105ed. In this financial year there wa5 none to dis¢l¢)se. Pay policy for senlor staff Senh?r management staff pay is Set with referenee lo market rates for similar roles wfthin similar stted charities in the sector. The pay of the senior staff members is reviewed and approved by the Board. Rlsk Pollcy The trustees have a risk management strategy which comprises.. An annual review of the risks the charity may fa￿,. The establishment of system5 and procedures lo mitigat8 those risks identified in the plan.. and The implementation of prO￿dureS designed to minimise any potential impact on the charty should those risks materialise. This work has idenlrfied that financial sustainability is the major financial risk for the Charity. (( is imperative that we sustain our Bursary Fund through fundraising lo enable the 5Gh￿)I to offer bursary assistance to students. Attention has also been f¢xussed on non-finaneial risks arising from fire, heafth and safety of students and staff. A key element in the management of financial risk is a reviewed reserves policy and the retention of SuffiC￿nI working capital. REFERENCE AND ADMINISTRATIVE DETAILS Company Number: 00977615 CharFty Numbgr: 312872 Dlrectors l Trustaes: C Penn (Chaimanl JEag N Gage R Le¥Jhton J Murray (Deceased 02.10.20251 R Parker F Christie M Shanks R Sharp Secretary: Vtstra Trust Company Limited Senior Staff: Principal.. Veronica Ricks MAIRCAI Director of Stutjies.. Tony Mott HDFA Course Director, Diploma in Portraf(ure'. Minna Stevens C(pordinalor, Printmaking.. Hilary Dahry MA Co-ordin81or, Post Diploma in Figurative Painting". Fred Crayk A 8ursar is appointed and reports to Ihg Trustees. Registered Office: 75 Lots Road, London SW10 ORN Independ8nt Audltor: SCB (Accounlan151 Ltd. 31 Sackville Street. Manchester M1 3LZ Bankers: Lk)yds Bank PIC.. 417 Noth End Road, Fulham. London SW6 1 NS Investjnent managers: Ruffer LLP, 80 Victoria Street, London SW1E 5JL Flagstone Group Ltd, Clareville House, 26-27 Oxendon St, London SW1Y 4EL 13 THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company Ilmlted by guarantee) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2025 Trustee$. responsibilitieg In relatlon 10 the financlal statements The Trustees {who are also directors of The Thomas Heatherley Educational Trust Llmited for the purposes of company lawl are responsible for preparing the Annual Report and the financi81 statements in accordance wth applicable law and rogulation. Company law requireg the Directors to prepare financial statemen15 for each financial year. Under that law the Directors have elected lo prepare the financrdl ststemenls in awordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law}. Under company law the Directors must nol approve the financial statements unless they are satisfied that they give a true and fair view of the 8tste of affairs of the company and of its income and expendrture forthal period. In preparing these financial statements, the Directors are required to.. select suitable accounting policies and then apply them ￿nsIStentIY-, obseNe the methods and principles in the Charities SORP., make judgements and estimates that are Teasonable and prudent., slate whether applicable UK Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial ststement5', prepare the financial slalemenls on the going concern basis unless it is inapprcpriale lo presume that the charitable company will continuo in business. The Dir¢dor5 are responsib￿ for keeping adequate accounting records that are suffiaent to show and exp￿In the company's transactions and disclose wf(h reasonable accuracy at any lime the financial position of the company and enable them to ensure that the financial statements compty with the Companies Act 2006. They are also responsible for safgguarding the assets of the Company and hence for taking reasonable Steps for the prevenlK)n and detection of fraud and other irregulariti&s. The tTUStees are responsib￿ for Maintenan￿ and Integrity of the corporat& and financial infomialion included on the charitable company's website. Legislation in the United Kingdom governing the preparation and di58emination of financial statements may differ from legislation in other jurisdidions. STATEMENT OF DISCLOSURE TO AUDITOR In accordance wlh company law, the company's Directors certify Ihal.. so far as they are aware, there is no relevant audrt infomialKJn of which the eompany's audriors are unaware,. and a$ the Directors of the company. they have taken all the steps that they ought to have taken in order lo make themselves aware of any relevant audf( information and lo establish that tho Charity's auditors are aware of that infomi8tion. AUDITORS A rgsolution was proposed and 8gr8ed at the Annual General MeetirwJ that SCB (Ac￿untants} Ltd be wppoinled as auditors of the Charity for the ensuing year. The report of tho direGlors has been prepared tsking advantage of Ihe $mall companies, exemption of section 415A of the Compan￿5 Ad 2006. APPROVAL This report was prov ard on 2P MaKh 2026 and slgned on its behaff by. Chrlstopher (CIAlrnMn of TrustéO9) 14 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED {A Company limitod by guaranteel Oplnlon We have audited the financlal 81atemenls of The Thomas Heatherley Educational Trust Limited for the year ended 31st August 2025, which comprise the Statement of Financial Actwities (Summary Income and Expenditure Aceounll. balance sheet, statement of cash flows and notes to the financial statements, including a summary of significant accounting policios. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Stsndard 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 slate of the charitable company's affajrs as at 31st August 2025 and of rts in&)ming sources and application of resources, including its income and expenditure, for the year then ended,. have been properly prepared in accordance with United Kingdom Generalty A￿pIed Accountin9 Prath'ce., and have been prepared in accordance wth the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in 8ccordanee with Intemalional Standards on Audib'ng (UK) {ISAs (UKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of Ihe financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responslbiif(ies in accordance with these requirements. We beI￿Ve that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going conc•rn In auditing the financial statements, we have concluded that the directors. use of the going wnG¢m basis of accounting in the preparation of the financial statements is approprk9te. Based on the work we have perforrn￿. ￿ have ncl identified any material uncertainlEs relating lo events or conditions that, individually or collectively. may cast signrFicant doubl on the charitable company's abilty to continue as a going concem for a p&riod of at least twelve month5 from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the directors with respect to going conceTn are describeAI in the relevant sectKJns of this report. Other Infomiation The other information Comprises the infomialion included in the annual report, oth8r than the financial statements and our audilo¢s report theroon. The directors are re$ponsibl& for the other infomiation. Our opinion on the financial ststemenls does not cover the other infomiation and, except to the extent otherwise explicitly slated in our report, we do not express any form of assurance conclusion thereon. In connection with our audrt of the finaneial statements, our responsibility is to read the other infomialion and, in doing so, consider whether the other information is materially inconsislenl with the financial Statements or our knowledge obtsined in the audit or otherwise appears to be Material￿ misslaled. If we identify such material inconsistencies or apparent material misstatements, we are required to delemine whether there is a material misstatement in the financial statements or a material misstatement ol the other infomation. If, based on the work we have perfom)ed, we conclude that there is a material misstatement of this other infomation we are required to rewt that fxt. We have nothing to report in this regard. 15 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF (Contld) THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company Ilmiiod by guaranteel Opiniong on other matters prescrfbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit.. The infomation given in the directors, report for the financial year for which the finanoal slalements are prepared is consistent with the financial statements.. and The (Jiredors, report has been prepared in accordanee with applicable legal requirement Matters on whlch we are requlred to report by exception In the light of the knowledge and understanding of the company and rts environment obtained in the course of the audit, we have not Klenlified material misststemonts in the diroctots, report. We have nothing to report in respect of the following matters in rebtion to which the Companies Act 2006 require5 US to report to you rf, in our opinion.. adequate accounting records have not been kept or returns adequate for our audit havg not been received from branches not ￿sited by us.. the financial statements are not in agreement with the accounting records arKI relum5-, Certain disclosures of trustees, remuneration specrfied by law are not made., we have not receNed all the information and explanations we require for our audit,. Respon8ibllltles of dlrectors As explained rmre lulty in the directors, responsibilities statement$ set out on page 11. the director5 ar8 responsible for the preparation of the financial slalements and for being satisfied that they give a true and fair view, and for such intemal control as the directors detemine is necessary to enable the preparation of financial statements that are free from matenal misstatement, whether due lo fraud QT error. In preparing the financral sL*ements, the direct¢Jrs are responsible for assessing thé company's ability to continue as going concern. disclosing. as applicable. matters related to going concern and using the going eoncem basis of accounting unless the directors erther intend to liquidate the company or to cease operations, or have no realistic altemative but to do so. Auditor's responsibilitles forthe audit of the flnanclal statsments Our objectives are to obtain reasonable assurance about wh8theT the financial statements as a whole are free from material misstatement, whether due to fraud or error, antJ to issue an auditor's Teport that includes our opinion. Reasonabk assurance is a high level ol assurance, but is not a guarantee that an audit conducte(l in accordance wf(h ISAS IUKI will always detect a material misstatement when rt exists. Misstatements can arise from fraud or error and arg considered material if, individually or in the aggreg*e, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial stalemenls. Irregularities, including fraud, ara instances of nonI Building Managor has prepared an estimate of msts for essential major future building costs to plant and equipment aNJ upkeep such as replacing plant and equipment as it becomes obsolete. 31 THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED {A company Ilmited by guarant981 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2025 DosGripllon, nature and purpose of Dosignated funds Icontlnuedl.. School Development Fund: In prgvious year trustees proposed the ¢rgatKJn of the 'School Development Fund, from the New Building Fund. aimed at developing new courses. funding a new website. and datsbase, th a sum of £50,Oc￿ transferred in previous year. In current year £8,700 was expensed. Bullding Improvèmènt Fund: In previous year trustees proposed the creation of the '8uilding Improvement Fund, from the New Bu1￿1ng Fund. This fund is designed to provide improvemonls in energy eff￿lencY within the sch¢Jol, such as solar panel installations. New Bulldlng Fund: In order lo fulfil the schcol's charitable aims and better to meet increasing demands on art education, the Trustees have considered the scope to exteTrd the capacity of its facilities. Extant plans prepared in 2008 for the building of a Ihird-floor Studio would provide for additional classes. The cost of such extension would be considerable and the Trustees woulj have had to seek sponsors to match funding contributed by the School. The estimated total costs of proposed new studios at the time were £3,IXIO,000. 18. ANALYSIS OF FUND BALANCES BETWEEN NEf ASSETS Gengral Deslgnated Restricted Totsl Intangible assets Tangible fixed assets Investments Net current assets 17,400 3,257,721 76,184 722,002 17.400 3,257.721 846,424 769,746 770,240 47,744 4 073 307 770 240 4 891291 Analysis of fund balances between net assèts- previous year General Deslgnated RostriGtgd Totsl Intangible assets Tangible fMed assets Investments Net current 8ssets 8.700 3,357,761 12,032 755.815 8,700 3,357,761 810,377 811,120 798.345 55,305 4 134308 798 345 4 S87 958 19. DEFERRED INCOME 2025 2024 Balan￿ as al 1 sl September Amount released to income in the year Amount deferred in the year 266.017 1266.01n 329,073 323,768 1323.7681 266.017 Balance as at 31$1 August 329,073 266,017 Deferred income represents fee income for 2025126 received in advance. 32 THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company limited by guaranteg) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2025 20. OPERATING LEASE COMMITMENTS The charity has operating lease commi(ments as shown bel¢)W. Equipment 2025 2024 Under one year Two to five yoars 8,317 21,484 8.317 29,801 29,801 38,118 21. PENSION The pension cost charge represents contributions payable by the charity to the fund and amounted to £10,689 12024 - £11,383). Contributions lotalling £1,64412024 - £1,352) were payable to the fund at the year end and are included in creditors. 22. CAPITAL COMMITMENT 2025 2024 Contracted but not provided for in the financial statements 8,700 17,400 Capital commiiment is for W8bsit& d8vgloprr￿nI 23. SHARE CAPITAL The company is limited by guarantee and dogs not have a share capital dmded by shares. 24. MEMBERS, LIA81LITY The company is limi(ed by guarantge and the members each undertake to contribute an amount not ex¢*ding £1. 25. RELATED PARTY TRANSACTIONS Details of transactions wi(h trustees and senior management are in note 9. 26. ULTIMATE CONTROLLING PARTY The chanty was under th8 control of the Board of Trustees throughout the year. 33