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2024-07-31-accounts

COMPANY NUMBER: 00964179 CHARITY NUMBER: 313766

WINE AND SPIRIT EDUCATION TRUST

(COMPANY LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

WINE AND SPIRIT EDUCATION TRUST CONTENTS

Page
Reference and administrative information 1
Trustees’ Report 2-9
Independent Auditor's Report 10-13
Statement of Financial Activities 14
Consolidated Balance Sheet 15
Statement of Cash Flows 16-17
Notes to the Financial Statements 18-35

WINE AND SPIRIT EDUCATION TRUST REFERENCE AND ADMINISTRATIVE DETAILS

DIRECTORS AND TRUSTEES

S McMurtrie (Chairman) J Locke S Singh M Beale D Jago L Halstead J Thornton K G Meikle (resigned Dec 23) G Bell (appointed Jul 24)

Key Management Personnel

M Brampton - Chief Executive I Pogue - Chief Financial Officer

Registered Office

International House 39-45 Bermondsey Street London SE1 3XF

Company Number

00964179

Charity Number 313766

PROFESSIONAL ADVISORS TO THE TRUST

Auditors

Crowe U.K. LLP, 55 Ludgate Hill, London EC4M 7JW

Solicitors

Lee Bolton Monier-Williams, 1 The Sanctuary, Westminster, London SW1P 3JT

Bankers

National Westminster Bank Plc, 2 Eastcheap, London EC3

Insurance Brokers

Gallagher, Portmore House, Yeoman Park, Test Lane, Southampton SO16 9JX

Page 1

WINE AND SPIRIT EDUCATION TRUST TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 JULY 2024

The trustees of the Wine and Spirit Education Trust ("WSET") are pleased to present their annual report together with the financial statements for the year ended 31 July 2024.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

Wine and Spirit Education Trust is a company limited by guarantee governed by its Memorandum and Articles of Association dated 12th September 1969 and amended to allow for changes in Companies Acts on 29[th] May 2002 and again on 9[th] March 2011 It is registered as a charity with the Charity Commission. There are currently 8 members each of whom agree to contribute £1 in the event of the charity winding up.

Appointment of Trustees

Each Trustee is elected to serve a term of four years. At the end of the term, Trustees can vote to extend the term by a year, on no more than two occasions, which means that the maximum term a member can serve before standing down is six years. The Chairman of the Board of Trustees may serve an additional year (i.e. a maximum term of seven years). The Trustees are appointed as representatives of four industry bodies: up to three Trustees are appointed from members of the Vintners Company, up to three from the members of the Wine and Spirits Trade Association (WSTA), up to one from members of the Worshipful Company of Distillers and up to one from the Institute of Masters of Wine. Nominations for Trustees are sought from these bodies, as each of their representative Trustees retire, with regard to providing valuable service to the Trust through their individual skills, experience and standing in the community.

THE AIMS OF THE WINE AND SPIRIT EDUCATION TRUST

Extract from the Memorandum and Articles of Association, adopted 9[th] March 2011:

"The primary objects for which the Trust is established are the promotion, provision and development of high-quality education and training in wines and spirits, in the United Kingdom and elsewhere, directed at those who are engaged in or connected with the wine and spirit trade or who intend to be so engaged or connected, plus members of the general public". This includes the provision of education in social responsibility.

The Trust aims to provide first-class educational programmes, with a suite of sought-after examinations, leading to qualifications which fall within the UK Qualifications Framework.

The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity.

Public Benefit

WSET recognises the role it must play in helping to make the global drinks industry a more accessible, inclusive and diverse place in which to work, in particular for individuals from ethnically diverse backgrounds and other underrepresented communities. Bursaries and a programme of charitable initiatives working with local organisations globally have provided access to WSET qualifications, funding and mentorship for many individuals facing hardship and challenges.

During the year 500 individuals benefited through bursaries and social impact projects across more than 11 countries throughout EMEA, UK, APAC and Americas. We supported 17 separate social impact projects in collaboration with over 25 partners, charities and WSET course providers.

Activities included:

Page 2

WINE AND SPIRIT EDUCATION TRUST

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 JULY 2024

DIRECTORS AND TRUSTEES

The Directors of the charitable company ("the Trust") are its Trustees for the purposes of charity law and throughout this report are collectively referred to as the Trustees. The Trustees who served during the year are shown on page 1.

Trustee Induction and Training

New Trustees undergo an orientation day to brief them on their legal obligations under charity code of governance and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. During the induction day they meet key employees and other Trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

Organisation

The Board of Trustees, which has 8 members, administers the charity. The board meets regularly and there is a sub-committee covering finance issues which also meets as required. A Chief Executive is appointed by the Trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the Trustees, for operational matters including finance and employment working with the Chief Financial Officer.

The Trustees give their time freely, and no remuneration is paid, except for out of-pocket travel expenses. The Trustees have also confirmed that no person connected to a Trustee has received a Bursary Grant or a Scholarship in the past 12 months.

The remuneration policy for the key management positions within the charity is set by the Trustees on an annual basis and performance is monitored through the annual appraisal system which measures achievement against the Chief Executive’s and Chief Financial Officer’s personal business objectives.

Subsidiaries

On 21[st] of October 2015, WSET Asia-Pacific was incorporated in Hong Kong. The principal aims of this subsidiary charity are to support the growing market in Asia. It is 100% owned by the Wine and Spirit Education Trust.

On 17[th] of October 2017, Wine and Spirit Education Trust America Inc. was incorporated in New York. The principal aims of this subsidiary charity are to support the growing market in America. It is 100% owned by the Wine and Spirit Education Trust.

On 1[st] of November 2023, Wine and Spirit Education Trust Australia Limited, a company limited by guarantee, was incorporated in New South Wales, Australia (Australian Company Number 672609773). The principal aims of this company are to support the growing market in Australia. It is 100% controlled by the Wine and Spirit Education Trust.

Page 3

WINE AND SPIRIT EDUCATION TRUST TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 JULY 2024

STRATEGIC REPORT

ACTIVITIES, ACHIEVEMENTS AND PERFORMANCE

As part of their annual strategy review, the Trustees have reviewed the aims and activities of the WSET and consider that they meet the principles of Public Benefit.

Our purpose is empowering people through inspiring learning experiences all over the world. To achieve this we developed six long-term strategic imperatives:

Key initiatives against these goals for 2023/24 were:

Page 4

WINE AND SPIRIT EDUCATION TRUST

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 JULY 2024

Key financial and KPI targets were:

Actual results were:

FINANCIAL REVIEW

WSET had a good financial year with net income, before impairment of owner-occupied property assets, totalling £1.2m. The property market remained unfavourable, and impairment after revaluation took our net income to a loss of £0.2m. During the year we continued to invest in future growth specifically on Product Development and Infrastructure. This investment has contributed to the 4% income growth compared to FY23, income up to £22.9m from £22.1m.

Supporting this growth, 2024 saw an increase in expenditure of 3%, £23.2m up from £22.6m. Of the contribution towards overheads, 12% was generated by the activities of the London School, 55% came from the activities of WSET Examinations and 9% from Global Digital Learning Services. The remaining 24% was generated from sales of books/materials and investment property rental income.

WSET maintained a strong balance sheet position reporting net assets of £8.4m at 31[st] July 2024. This is down on the £10.9m reported at 31[st] July 2023 reflecting the owner-occupied and investment property revaluations at fair market value. Loss on revaluation of Investment Properties came to £2.1m. Impairment loss of £1.4m was also recognised in year on the area of Baden Place occupied by WSET.

Investment powers and policy

Under the Memorandum and Articles of Association, the charity has the power to invest in the best interest of the charity

Reserves Policy

WSET set reserves policy using a free reserves approach. Free reserves are the total reserves available less those restricted and those designated by trustees for a specific purpose or because they are held in property. The policy is generally reviewed annually, taking into consideration the major risks faced by the charity, their likely effect on income and planned expenditure, and assessment of possible actions to mitigate those risks.

Restricted reserves (£24k)

These are funds the charity will spend on activities specified by the restriction of the fund.

Unrestricted reserves

These are funds over which the trustees have discretion in how they are used to further the objects of the charity.

Page 5

WINE AND SPIRIT EDUCATION TRUST TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 JULY 2024

In Accordance with Charity Commission guidance, some of these funds have been designated to mitigate the charity’s financial risks and to indicate which reserves are held in property and are therefore not available as ‘free’ reserves.

Designated Funds (£4.77million)

This is the value of the property reserve which equates to the amount currently invested in the charity’s property, excluding the value of mortgages secured against the property.

General Fund (£3.64million)

Monthly operational expenditure stands at c£1.8m, therefore general reserves provide just over two months’ cover. The WSET has a long-term overall group reserves policy based on three months’ costs. It is recognised that the significant period of capital investment in both technology and refurbishment of the Bermondsey School will impact on achievement of this long-term policy in the next few years. The longterm policy would require free group reserves of £5.4m. Following completion of our Exams Transformation Programme (EXAT) in the current year, capital spend will be reduced significantly to allow build up of reserves in the following years.

FUTURE PLANS

Key initiatives against our goals for 2024/25 are:

Key financial and KPI targets are:

Page 6

TRUSTEES’ REPORT

WINE AND SPIRIT EDUCATION TRUST

FOR THE YEAR ENDED 31 JULY 2024

PRINCIPAL RISKS AND UNCERTAINTIES

The Trustees have approved a risk management policy and process and are responsible for overseeing risk management as a whole and for determining the overall risk management. Trustees' policy is to review the risk register on a regular basis to ensure that the impact of financial, strategic, operational and compliance risks are minimised. Management continually reviews the risks to which the WSET could be exposed. Risks are assessed for likelihood and severity of impact. This information is then used to develop a risk management strategy, including the identification of existing operational controls and any new controls considered necessary.

Several risks and uncertainties have been identified, which are listed below in no particular order or likelihood of occurrence:

People

Our people are critical to the success of our business and we need to attract, motivate and retain the best talent we can, not only for our current needs, but also looking ahead to the organisation of the future. We undertake annual performance reviews to ensure staff are motivated and retained, and offer a range of benefits. Succession planning is undertaken for senior staff. We provide training for all our staff, including external training where relevant to specialisms.

Information and Computer Systems

WSET is heavily dependent on the integrity of our IT systems and the management of information including sensitive student and APP information. This can lead to concerns about integrity, security and other data issues. At the same time, cyber-crime is growing in frequency and sophistication and many IT systems are exposed to these threats. We run incremental backups to our onsite backup facility, then incremental/full nightly backups to our cloud-based solution. These are distributed to two geographically separate data centres. In the event of a disaster, we have a Disaster Recovery (DR) plan in place. As the majority of critical services are cloud based there is little impact to the business day to day. However, we can very quickly gain access to our DR sites (data centres) to ensure business can function.

We set out data protection compliance in a framework of policies and procedures. We also monitor compliance with data protection policies and regularly review the effectiveness of data handling/processing activities and security controls.

Business Operations and Supply Chain

WSET depends on purchasing materials and education technology, on controlled inventory management and the timely supply of our products to our APPs and students. Some of our key products are reliant on one producer or one supplier for educational materials e.g. certificates, pins and suppliers of our digital education offerings (eBook, online exams and online courses). Therefore, where possible we have identified potential alternative suppliers. For critical suppliers which would be difficult to replace quickly, we review and monitor their financial status.

Statutory and regulatory compliance

WSET’s primary object is the promotion, provision and development of high-quality education and training in wines, spirits and sake across the world. Our global reach could lead to non-compliance with statutory and regulatory requirements through lack of oversight, knowledge or training, at both local and group level. Non-compliance can lead to loss of status, recognition, reputation, customers and the imposition of penalties. We therefore employ qualified personnel at group and local levels, as well as using external professionals, and work with regulatory or statutory authorities to ensure compliance by obtaining guidance and instruction and implementing these.

Page 7

WINE AND SPIRIT EDUCATION TRUST TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 JULY 2024

Product Portfolio Development

The education industry is undergoing rapid new product innovation, digitisation and globalisation, including the rapid development of Artificial Intelligence (AI) tools. The sustainability of our business depends on creating and developing suitable educational products and examinations to meet the needs of our APPs and students to support long-term growth and securing appropriate protection for and defending our intellectual property. To mitigate this, we have a particular focus on developing our digital education tools in the current and future financial years and have an internal team reviewing how we can use AI within our product development. We currently update exams on a 4-year cycle and continue to review how we can improve the update process.

External Environment and Economic Climate

WSET’s APPs and subsidiaries operate in a variety of political, economic, and legal jurisdictions We may therefore be impacted by legal or budgetary constraints, economic and political considerations, fluctuations in exchange rates and our ability to persuade stakeholders of the economic value of our education. It is difficult to forecast the effects of these complex factors and we therefore aim through our planning to be able to react to negative impacts which might adversely affect our performance. However, the global reach of our operations can mitigate against this risk, as markets with strong conditions can support those in a negative situation. WSET recognises the risks associated with loan covenants and potential interest rates increases and has adopted a comprehensive risk management approach to mitigate both.

Going Concern

The Trustees have reviewed the financial performance for FY24 and the FY25 budget with a cashflow forecast projection for the next 12 months. Performance in the first quarter of the financial year has been below expectations, with EBITDA at £0.9m (£0.2m down on prior year), but latest forecast combined with implementation of a contingency plan indicates that targets for FY25 can still be achieved Having reviewed all this information along with the funding facilities available to the Trust, the Trustees have a reasonable expectation that the Group has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the Trust’s financial viability.

Accordingly, they also continue to adopt the going concern basis in preparing the financial statements. Key factors in assessing WSET as a going concern include stable financial performance over recent years and income and EBITDA growth in FY24, a diverse geographic spread across 4 reporting regions (EMEA, APAC, Americas and Australia), continued place as global market leader for wine and spirits education, and subsidiary operations to grow business in Americas, APAC and Australia.

RESPONSIBILITIES OF THE TRUSTEES

The trustees (who are also directors of the Wine and Spirit Education Trust for the purposes of company law) are responsible for preparing the Trustees' 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 which give a true and fair view of the state of affairs of the charitable company and of the Income and application of resources, including the income and expenditure, of the charitable for that period. In preparing these financial statements, the trustees are required to:

Page 8

WINE AND SPIRIT EDUCATION TRUST

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 JULY 2024

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time of the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT OF DISCLOSURE TO AUDITORS

So far as the trustees are aware, there is no relevant audit information of which the Trust's auditors are unaware. Additionally, the trustees have taken all the steps they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the Trust's auditors are aware of that information.

In approving the Trustees’ Report the trustees also approve the Strategic Report in their capacity as company directors.

Approved by the Trustees and signed on their behalf on 6 December 2024.

Simon McMurtrie Chairman[Z][-t——]

Page 9

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF WINE AND SPIRIT EDUCATION TRUST

Opinion

We have audited the financial statements of Wine and Spirit Education Trust for the year ended 31 July 2024 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Consolidated Statement of Cashflows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee's 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 charity'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.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 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.

Page 10

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF WINE AND SPIRIT EDUCATION TRUST

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 8, the trustees 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 charity or to cease operations, or have no realistic alternative but to do so.

Page 11

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF WINE AND SPIRIT EDUCATION TRUST

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:

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 and Companies Act 2006 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context were Charity Commission regulations, Ofqual regulations as an awarding body, taxation matters and General Data Protection Regulation (GDPR).

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, judgements made in the property valuations, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Board about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, sample testing of documentation relating to income, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Page 12

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF WINE AND SPIRIT EDUCATION TRUST

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

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

Dipesh Chhatralia

Senior Statutory Auditor For and on behalf of

Crowe U.K. LLP

Statutory Auditor London

Date: 11 December 2024

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Page 13

WINE AND SPIRIT EDUCATION TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating the income and expenditure)

FOR THE YEAR ENDED 31 JULY 2024

Notes
INCOME FROM
Charitable activities:
Courses, examination
fees and Teaching aids
3
Donations and legacies
Investments
Other trading activities
4
Total income
EXPENDITURE ON
Examination and courses
5
Teaching costs
5
Raising funds
5
Total expenditure
Net (expenditure) before
transfers
Transfers
18
Net income/(expenditure)
Translation adjustment
Net movement in funds
Investment Property Loss
8
Fund balances brought
forward at 1 August 2023
18
Fund balances carried
forward at 31 July 2024
0		 General Designated
£'000
£'000
21,801
-
399
-
35
-
710
-
22,945
-
17,449
-
4,327
-
1,398
-
23,174
-
(229)
-
311
(154)
82
(154)
(207)
-
(125)
(154)
-
(2,065)
3,764
6,990
3,639
4,771
Unrestricted funds		 General Designated
£'000
£'000
21,801
-
399
-
35
-
710
-
22,945
-
17,449
-
4,327
-
1,398
-
23,174
-
(229)
-
311
(154)
82
(154)
(207)
-
(125)
(154)
-
(2,065)
3,764
6,990
3,639
4,771
Unrestricted funds		 Restricted
funds
£'000
-
2
-
-
2
-
-
2
2
-
(157)
(157)
-
(157)
-
181
24		 Total
Total
2024
2023
£'000
£'000
21,801
21,025
401
371
35
15
710
731
22,947
22,142
17,449
16,761
4,327
4,311
1,400
1,516
23,176
22,588
(229)
(446)
-
-
(229)
(446)
(207)
(283)
(436)
(729)
(2,065)
(2,269)
10,935
13,933
8,434
10,935
-
-
-
-
-
-
(154)
(154)
-
(154)
(2,065)
6,990
4,771

The Statement of Financial Activities includes all gains and losses recognised in the year. All activities shown are continuing.

Full comparative figures for 2023 are shown in note 25.

The notes on pages 18 to 35 form part of these financial statements.

Page 14

WINE AND SPIRIT EDUCATION TRUST COMPANY NUMBER: 00964179

BALANCE SHEET AS AT 31 JULY 2024

Group Group Charity Charity
2024 2023 2024 2023
Notes £'000 £'000 £'000 £'000
FIXED ASSETS
Tangible and Intangible assets 7 15,255 15,077 15,255 15,076
Investment property 8 10,680 12,743 10,680 12,743
25,935 27,820 25,935 27,819
CURRENT ASSETS
Stocks 12 917 1,038 917 1,038
Debtors 13 2,898 3,078 4,290 3,919
Cash and bank balances 2,299 1,796 1,869 1,333
6,114 5,912 7,076 6,290
TOTAL ASSETS 32,049 33,732 33,011 34,109
RESERVES AND LIABILITIES
FUNDS
Restricted funds 18 24 181 24 181
Unrestricted funds 18 8,410 10,754 9,535 11,379
8,434 10,935 9,559 11,560
LIABILITIES
Creditors 14, 16 23,615 22,797 23,452 22,549
TOTAL RESERVES AND LIABILITIES 32,049 33,732 33,011 34,109

The financial statements were approved and authorised for issue by the Board of Trustees on 6 December 2024 and were signed on its behalf by:

Simon McMurtrie Chairman

The notes on pages 18 to 35 form part of these financial statements.

Page 15

WINE AND SPIRIT EDUCATION TRUST CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2024

Net cash inflow from operations:
Net cash provided by operations
(a)
Cash flows from investing activities:
Bank interest and other investment income
Finance and other costs
Payments to acquire tangible fixed assets
Payments relating to investment property
Net cash used in investing activities
Cash flows from financing activities:
Loan repayments
Bank loan drawdown
Finance lease
Net cash provided by financing activities
Change in cash and cash equivalents in the reporting period
Net cash and cash equivalents at beginning of period
Net cash and cash equivalents at end of period
(b)
A.
RECONCILIATION OF NET MOVEMENT IN FUNDS TO
NET CASH INFLOW FROM OPERATIONS
Net movement in funds
Depreciation/Impairment
Bank interest and other investment income
Finance and other costs
Other costs
Decrease in stocks
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash inflow from operations		 2024
2023
£'000
£'000
3,443
2,756
35
15
(1,364)
(748)
(2,810)
(2,102)
(121)
-

(4,260)
(2,835)
(622)
(638)
1,329
1,671
613
-
1,320
1,033
503
954
1,795
841
2,298
1,795
2024
2023
£'000
£'000
(436)
(729)
2,632
2,544
(35)
(15)
1,364
748
(2)
1
121
21
180
(451)
(382)
638
3,442
2,757

The notes on pages 18 to 35 form part of these financial statements

Page 16

WINE AND SPIRIT EDUCATION TRUST CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

B. ANALYSIS OF CHANGES IN CASH AND CASH EQUIVALENTS

Cash and cash equivalents
Cash
Borrowings
Debt due within one year
Debt due after one year
Total		 At
01-Aug
2023
£'000
1,796
1,796
485
18,474
18,959
(17,163)		 Cashflows
£'000
503
503
890
430
1,320
(817)		 At
Other
31-Jul
Changes
2024
£'000
£'000
-
2,299
-
2,299
18,474
19,849
(18,474)
430
-
20,279
- (17,980)

Page 17

WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

1. ACCOUNTING POLICIES

The following Accounting Policies have been used consistently in dealing with items which are considered material in relation to the accounts.

Basis of Preparation

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - effective 1 January 2019. The Trustees have adopted balance sheet Format 2, outlined in the Large and Mediumsized Companies and Groups (Accounts and Reports) Regulations 2008, as they feel that this is a fairer representation of the financial position of the Group and Charity.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 31 July 2024 and the comparative information presented in these financial statements for the year ended 31 July 2023. The financial statements are drawn up under the historical cost convention.

The Trust is a Public Benefit Entity registered as a charity and company in England and Wales, it was registered in 1969 (charity number 313766 and company registration number 964179).

Basis of consolidation

The accounts consolidated the results of WSET Asia Pacific Limited and WSET Americas Inc., the wholly owned charitable subsidiary companies. WSET Asia Pacific Limited was incorporated in Hong Kong on 21 October 2015 and WSET Americas Inc. was incorporated in New York on 17 October 2017. The were no income or expenditure for the year in WSET Australia Limited, a wholly controlled charitable company incorporated in Australia on 1 November 2023. In accordance with Section 408 of the Companies Act 2006, no separate Statement of financial Activities is presented for Wine and Spirit Education Trust Limited. The parent charity net expenditure for the year was £(2,002k) ( 2023: £(330k)).

The Charity has taken advantage of the exemption available to a qualifying entity in FRS 102 from the requirement to present a charity only Cash Flow Statement within the consolidated financial statements.

Going Concern

The Trustees have reviewed the financial performance for FY24 and the FY25 budget with a cashflow forecast projection for the next 12 months. Performance in the first quarter of the financial year has been below expectations, with EBITDA at £0.9m (£0.2m down on prior year), but latest forecast combined with implementation of a contingency plan indicates that targets for FY25 can still be achieved. Having reviewed all this information along with the funding facilities available to the Trust, the Trustees have a reasonable expectation that the Group has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the Trust’s financial viability.

Accordingly, they also continue to adopt the going concern basis in preparing the financial statements. Key factors in assessing WSET as a going concern include stable financial performance over recent years and income growth in FY24, a diverse geographic spread across 3 reporting regions (EMEA, APAC and Americas), continued place as global market leader for wine and spirits education, and subsidiary operations to grow business in Americas and APAC.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, the Trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily

Page 18

WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

1. ACCOUNTING POLICIES (continued)

apparent from other sources. Significant estimates and judgements are applied in relation to the useful economic life of tangible and intangible assets and the valuation of investment properties. An investment property revaluation exercise was undertaken for this purpose at the end of the year (see note 8 for further details).

The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

In the view of the 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.

Income

All income is recognised when the criteria of entitlement, measurement and probability of receipt have been satisfied.

Fees and similar income

Courses, examination fees, teaching aids and other income receivable are credited to the Statement of Financial Activities in the period when the course or examination takes place. Fees received in advance are deferred on the balance sheet within creditors.

Donations

Donations are accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the Trust is considered probable.

Investment and rental income

Rental income, and investment income from dividends, bank balances and fixed interest securities is accounted for on an accrual basis.

Expenditure

All expenditure is accounted for on an accrual’s basis. Expenditure has been classified under headings that aggregate all costs related to the category. Where costs cannot be attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources. Note 5 to these accounts details the method of allocation of such costs.

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

Staff costs, where attributable to more than one area of activity, are apportioned across categories on the basis of an estimate of the proportion of time spent by staff on those activities.

Support costs include governance costs and other indirect costs. Governance costs comprise all expenditure involving the public accountability of the charity and its compliance with regulation and good practice. These costs include some legal fees, the costs associated with trustees’ meetings and the cost of the statutory audit plus an appropriate proportion of management time. Support costs (including Governance costs) are allocated to the costs of Raising Funds and Charitable Activities on income basis.

Page 19

WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

1. ACCOUNTING POLICIES (continued)

Pension Scheme Costs

Contributions in respect of the Trust's defined contribution pension scheme are charged to the Statement of Financial Activities for the year in which they are payable to the Scheme.

Tangible and Intangible Fixed Assets

Tangible assets including any incidental expenses of acquisition are capitalised and recorded at cost. Intangible assets and development costs are recognised in accordance with FRS 102. Depreciation/amortisation is provided on a straight-line basis as follows:

Freehold and long-term leasehold buildings - Over 50 years
Refurbishment of leasehold - Over 10 years
Equipment - 25%
Computers - 50%
IT Systems - 33%
Product development - Over 5 years

Only purchases over £1,500 are capitalised.

Stocks

Stocks (books, course materials, wines and spirits) have been valued at the lower of cost and net realisable value.

Financial Instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised value, except for investments which are held at fair value though profit or loss. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors and stocks. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within current liabilities.

Debtors and creditors

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

Bank borrowings

Liabilities for borrowings which are subject to a market rate of interest are measured at the value of the amount advanced, less capital repayments.

Irrecoverable VAT

Irrecoverable VAT is written off to the expenditure to which it relates.

Investment property

The Group’s investment properties are valued annually on 31 July and carried at fair value. For 2024 this has been determined by an independent, professionally qualified valuer in accordance with the RICS Valuation – Professional Standards (the “Red Book”) for Baden Place and International House. A hybrid valuation approach was used for Bickel's Yard, which includes using both a professional valuation (based on International House as a proxy) and comparative data from the property market for similar properties.

Page 20

WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

1. ACCOUNTING POLICIES (continued)

Foreign Currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are considered in arriving at the operating result.

Funds

Restricted funds are those where there are specific donor restrictions as to their use. Designated funds are those which have been earmarked by the Trustees for specific purposes. Unrestricted funds can be used at the discretion of the Trustees.

2. INCOME

Income attributable to geographical markets outside the United Kingdom was approximately 75% ( 2023: 70%).

3. INCOME FROM CHARITABLE ACTIVITIES

Courses
Examinations
Teaching Aids		 2024
2023
£'000
£'000
6,230
5,578
10,370
10,160
5,201
5,287
21,801
21,025

4. OTHER TRADING ACTIVITIES

Investment income (Rent and service charges)
Other		 2024
£'000
639
71
710		 2023
£'000
696
35
731

Page 21

WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

5. ANALYSIS OF TOTAL EXPENDITURE

Examinations & Courses
Teaching Aids
Raising Funds
Total expenditure		 Direct Staff
Costs
£'000
5,346
-
547
5,893		 Other
Costs
£'000
3,258
1,557
242
5,057		 Depreciation
Support
Services
£'000
£'000
886
7,960
276
2,494

61
549
1,223
11,003		 Total
£'000
17,450
4,327
1,399
23,176

ANALYSIS OF TOTAL EXPENDITURE COMPARATIVE FOR 2023

Examinations & Courses
Teaching Aids
Raising Funds
Total expenditure		 Direct Staff
Costs
£'000
5,139
-
635
5,774		 Other
Costs
£'000
3,044
1,430
272		 Depreciation
£'000
460
155
33

648		 Support
Services
£'000
8,118

2,726
576
11,420		 Total
£'000
16,761
4,311
1,516
4,746 22,588

Support services are made up of staff costs, overheads, and other costs across non income generating departments and allocated on an income basis.

Other costs include: 2024 2023
£'000 £'000
Bank loan interest 1,364 748
Auditors' remuneration - UK 37 35
Auditors' remuneration - Hong Kong 3 3
Auditors' remuneration - US 19 18
Additional fees incurred for the audit of 2021/22 financial statements - 29
Legal, profesional and consultancy fees 74 264

Page 22

WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

6. STAFF COSTS

Salaries
Social Security Costs
Pension Contributions
Other Staff Costs
Redundancy Costs		 2024
2023
£'000
£'000
8,937
8,737

818
773
724
614

670
1,218
9
116
11,158
11,458

Settlement and redundancy costs totalled £9k (2023: £116.3k). All amounts were settled in the respective years.

The average number of employees was:
Management and administration
Training and education
The number of higher paid employees was:
Taxable emoluments band:
£60,001-£70,000
£70,001-£80,000
£80,001-£90,000
£90,001-£100,000
£100,001-£110,000
£110,001-£120,000
£120,001-£130,000
£130,001-£140,000
£140,001-£150,000
£200,001-£210,000
£210,001-£220,000
£220,001-£230,000
£320,001-£330,000		 2024
2023
No.
No.
44
42
148
140
192
182
8
6
8
3
2
4
2
3
1
-
1
1
1
1
1
1
-
1
1
-
-
1
1
-
-
1
26
22

Total remuneration of the key management personnel, including pension and National Insurance contributions was £456,482 ( 2023 : £ 569,974 ).

Page 23

WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

7. TANGIBLE AND INTANGIBLE FIXED ASSETS

GROUP
Assets
under
construction
Cost
£'000
At 1 August 2023
2,616
Additions in Year
959
Transfers in Year
(2,599)
At 31 July 2024
976
Depreciation/amortisation
At 1 August 2023
-
Charge for year
-
Impairment
-
At 31 July 2024
-
Net Book Value
At 31 July 2024
976
At 31 July 2023
2,616
CHARITY
Assets
under
construction
Cost
£'000
At 1 August 2023
2,616
Additions in Year
959
Transfers in Year
(2,599)
At 31 July 2024
976
Depreciation/amortisation
At 1 August 2023
-
Charge for year
-
Impairment
-
At 31 July 2024
-
Net Book Value
At 31 July 2024
976
At 31 July 2023
2,616		 Assets
under
construction
£'000
2,616
959
(2,599)		 Freehold
property
£'000
18,292
1,310
493		 Educational
& office
equipment
£'000
328
20
-		 IT systems
£'000
1,014
521
1,658
3,193
531
568
-
1,099
2,094
483
IT systems
£'000
1,010
521
1,658
3,189
528
568
-
1,096
2,093
482		 Product
Developm
ent
Total
£'000
£'000
-
22,250
-
2,810
448
0
448
25,060
-
7,173
63
1,223
-
1,409
63
9,805
385
15,255
-
15,077
Product
Developm
ent
Total
£'000
£'000
-
22,161
-
2,810
448
0
448
24,971
-
7,085
63
1,222
-
1,409
63
9,716
385
15,255
-
15,076
976 20,095 348
6,371
558
1,409		 271
34
-
- 8,338 305
976 11,757 43
2,616 11,921 57
Freehold
property
£'000
18,292
1,310
493
20,095
6,371
558
1,409
8,338
11,757
11,921		 Educational
& office
equipment
£'000
243
20
-
263
186
33
-
219
44
57

Page 24

WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

7. TANGIBLE AND INTANGIBLE FIXED ASSETS (continued)

Depreciation is charged at cost but not charged on the freehold land.

Depreciation charged to Baden Place based on floor space currently occupied by WSET (11,027 sqft out of 25,466 sqft available) 43.3%.

Assets under construction comprise the development of our qualification products and of a new CRM platform for the WSET to manage Exams.

Impairment reviews are conducted annually on the properties. Professional valuations were obtained for Baden Place and International House. Impairment of £1,409k was recognised in year in relation to fixed asset portion of Baden Place.

8. INVESTMENT PROPERTY

Valuation
At 1 August 2023
Transfer from Fixed Assets
Revaluation
At 31 July 2024
Historic cost
At 31 July 2024
At 31 July 2023		 International
House
£'000
1,213
2
(24)		 Baden
Place
£'000
9,752
-
(2,041)		 Bickel's
Yard
£'000
1,778
-
-		 2024
Total
2023
Total
£'000
£'000
12,743
15,012
2
-
(2,065)
(2,269)
10,680
12,743
16,194
16,194
16,194
16,194
1,191 7,711 1,778
234 14,290 1,670
234 14,290 1,670

The investment properties at Baden Place and International House have been valued at fair value as at 31 July determined by an independent, professionally qualified valuer, in accordance with the RICS Valuation – Professional Standards (the “Red Book”). The revaluation exercise resulted on an in-year loss on the investment property and an impairment adjustment on the fixed asset element. This places no restrictions on income or proceeds of future disposal. A hybrid valuation approach was used for Bickel's Yard, which includes using both a professional valuation (based on International House as a proxy) and comparative data from the property market for similar properties.

The charity has bank loans which are secured by way of a first and second legal charge over the investment property and all other assets of the company. See note 16 for further details.

Historic cost is based on purchase price of each property.

Page 25

WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

9. INVESTMENT IN SUBSIDIARIES

WSET Asia Pacific Limited Room1001, 10/F, Spaces,

8 Queen’s Road East Wanchai, Hong Kong S.A.R.

The Charity owns the whole of the share capital of WSET Asia Pacific Limited, a charitable company registered in Hong Kong with number 2298676 which was incorporated on 21 October 2015. The principal aims of this subsidiary charity are to support the growing market in Asia. It is 100% owned by the Wine and Spirit Education Trust. Its results for the year are summarised below. All income and expenditure in the period were unrestricted:

Grant from parent charity
Total Income
Total Expenditure
Net Income
Translation adjustment
Fund balances brought forward
Fund balances carried forward
Total Assets
Total Liabilities
Net Assets		 2024
£'000
260
637
(1,147)
(250)
(1)
(781)
(1,032)
252
(1,284)
(1,032)		 2023
£'000
405
588
(1,297)
(304)
35
(512)
(781)
267
(1,048)
(781)

Page 26

WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

10. INVESTMENT IN SUBSIDIARIES (continued)

WSET Americas Inc 71 Raymond Rd. West Hartford, CT 06107 USA

The Charity owns the whole of the share capital of WSET Americas Inc, a charitable (non-profit private foundation) company registered in New York with number 45-98-81 which was incorporated on 17[th] October 2017. The principal aims of this subsidiary charity are to support the growing market in North and South America. It is 100% owned by the Wine and Spirit Education Trust. Its results for the year are summarised below. All income and expenditure in the period were unrestricted:

Total Income
Total Expenditure
Net Income
Translation adjustment
Fund balances brought forward
Fund balances carried forward
Total Assets
Total Liabilities
Net Assets		 2024
2023
£'000
£'000
4,735
5,105
(4,960)
(5,161)
(225)
(56)
(23)
(26)
142
224
(106)
142
780

814
(886)
(672)
(106)
142

11. INVESTMENT IN SUBSIDIARIES (continued)

WSET Australia Limited Level 24, 1 O’Connell Street Sydney, New South Wales, 2000 Australia

WSET Australia Limited, a company limited by guarantee, was incorporated in 1 November 2023 in New South Wales, Australia with number 672609773. The principal aims of this company are to support the growing market in Australia. It is 100% controlled by the Wine and Spirit Education Trust. Its trading results for the year were £nil.

Page 27

WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

12.
STOCKS
Stocks consist of:
Wine and Spirits
Books and other Course Materials
Other materials
Stock Provision		 Group
Group
2024
2023
£'000
£'000
185

287
844

805
37

27
(150)

(81)
916

1,038		 Charity
Charity
2024
2023
£'000
£'000
185
287
844
805
37
27
(150)
(81)

916
1,038

The value of stock released to cost of sales in the year was £1,540k ( 2023: £1,422k ).

13.
DEBTORS
Trade Debtors
Amounts due from subsidiaries
Prepayments and accrued income
Other debtors
Service Charge
Staff loans		 Group
2024
£'000
1,870
-
859
140
27
2		 Group
2023
£'000
2,052
-
888
115
22
-		 Charity
Charity
2024
2023
£'000
£'000
1,472
1,584
1,934
1,406
743
814
139
115
-
-
2
-
4,290
3,919
2,898 3,077

Page 28

WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

14.
CREDITORS
Group
2024
Amounts falling due within one year
£'000
Course Fees Received in Advance (see Note 15)
1,070
Trade Creditors
616
Accruals and other creditors
1,043
Bank Loan (Secured - see Note 16)
19,849
APP Fees in Advance
460
Rentals in advance
30
Other Creditors
21
23,089
Amounts falling due after more than one year
Bank loan (Secured)
-
Finance lease
430
Tenant deposits
96
526
23,615
15.
ANALYSIS OF DEFERRED COURSE FEES
2024
£'000
Balance at 1 August 2023
1,188
Amount released to incoming resources
(1,188)
Amount deferred in year
1,070
Balance at 31 July
1,070		 14.
CREDITORS
Group
2024
Amounts falling due within one year
£'000
Course Fees Received in Advance (see Note 15)
1,070
Trade Creditors
616
Accruals and other creditors
1,043
Bank Loan (Secured - see Note 16)
19,849
APP Fees in Advance
460
Rentals in advance
30
Other Creditors
21
23,089
Amounts falling due after more than one year
Bank loan (Secured)
-
Finance lease
430
Tenant deposits
96
526
23,615
15.
ANALYSIS OF DEFERRED COURSE FEES
2024
£'000
Balance at 1 August 2023
1,188
Amount released to incoming resources
(1,188)
Amount deferred in year
1,070
Balance at 31 July
1,070		 14.
CREDITORS
Group
2024
Amounts falling due within one year
£'000
Course Fees Received in Advance (see Note 15)
1,070
Trade Creditors
616
Accruals and other creditors
1,043
Bank Loan (Secured - see Note 16)
19,849
APP Fees in Advance
460
Rentals in advance
30
Other Creditors
21
23,089
Amounts falling due after more than one year
Bank loan (Secured)
-
Finance lease
430
Tenant deposits
96
526
23,615
15.
ANALYSIS OF DEFERRED COURSE FEES
2024
£'000
Balance at 1 August 2023
1,188
Amount released to incoming resources
(1,188)
Amount deferred in year
1,070
Balance at 31 July
1,070		 14.
CREDITORS
Group
2024
Amounts falling due within one year
£'000
Course Fees Received in Advance (see Note 15)
1,070
Trade Creditors
616
Accruals and other creditors
1,043
Bank Loan (Secured - see Note 16)
19,849
APP Fees in Advance
460
Rentals in advance
30
Other Creditors
21
23,089
Amounts falling due after more than one year
Bank loan (Secured)
-
Finance lease
430
Tenant deposits
96
526
23,615
15.
ANALYSIS OF DEFERRED COURSE FEES
2024
£'000
Balance at 1 August 2023
1,188
Amount released to incoming resources
(1,188)
Amount deferred in year
1,070
Balance at 31 July
1,070		 Group
2023
£'000
1,188
431
1,554
485
374
29
47		 Charity
Charity
2024
2023
£'000
£'000
1,070
1,188
654
458
960
1,353
19,849
485
348
309
30
29
15
38
22,926
3,860
-
18,474
430
-
96
215
526
18,689
23,452
22,549
2024
2023
£'000
£'000
1,188
1,048
(1,188)
(1,048)
1,070
1,188
1,070
1,188
4,108
18,474
-
215
526 18,689
23,615 22,797
2024
£'000
1,188
(1,188)
1,070		 2023
£'000
1,048
(1,048)
1,188
1,070 1,188

Page 29

WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

16. Borrowings

Group and charity
Repayable:
Between one and two years
Between two and five years
In five years or more
Repayable within one year		 2024
£'000
119

284
27		 2023
£'000
528
1,169
16,777
430

19,849		 18,474
485
20,279 18,959

The covenant attached to the bank loan has not been breached. However, due to the terms of the loan, the bank could require repayment within 12 months after the year-end. We have, therefore, included the bank loan repayment as due within one year, in line with Section 4.7 of FRS 102 regarding unconditional rights to defer settlement.

The charity has the following loans:

Page 30

WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

17. FINANCIAL INSTRUMENTS

2024 2023
£'000 £'000
Financial assets measured at fair value 10,680
 12,743

Financial assets measured at fair value comprise of investment properties.

18. FUNDS – GROUP

Restricted Funds
Peter Hampson Memorial Fund
Worshipful Co. Distillers
Building Donations
Unrestricted Fund
Designated
Property Reserve
General
Total unrestricted funds
Total Funds		 Balance at
1 August
2023
£'000
13
11
157		 Incoming
Resources
£'000
-
2
-		 Outgoing
Resources
£'000
(1)
(1)
-		 Transfers
and Gains/
Losses
£'000
-
-
(157)
(157)
(2,219)
(2,219)
104
(2,115)
(2,272)		 Balance at
31 July
2024
£'000
12
12
-
181 2 (2) 24
6,990
6,990
3,764
10,754		 -
-
22,945
22,945		 -
-
(23,174)
(23,174)		 4,771
4,771
3,639
8,410
10,935 22,947 (23,176) 8,434

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WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

18. FUNDS - CHARITY

Restricted Funds
Peter Hampson Memorial Fund
Worshipful Co. Distillers
Building Donations
Unrestricted Fund
Designated
Property Reserve
General
Total unrestricted funds
Total Funds		 Balance at
1 August
2023
£'000
13
11
157
181
6,990
6,990
4,389
11,379
11,560		 Incoming
Resources
£'000
-
2
-		 Outgoing
Resources
£'000
(1)
(1)
-		 Transfers
and Gains/
Losses
Balance at
31 July
2024
£'000
£'000
-
12
-
12
(157)
-
(157)
24
(2,219)
4,771
(2,219)
4,771
316
4,764
(1,903)
9,535
(2,060)
9,559
2 (2)
- -
-
20,515
20,515		 -
(20,456)
(20,456)
20,517 (20,458)

Restricted Funds

Peter Hampson Memorial fund - An investment from which an annual scholarship is awarded.

Worshipful Co. of Distillers - Annual donations to be used towards courses and prizes funded in the name of the Distillers.

Building Donations fund, c reated from donations received for the acquisition of the freehold in Bermondsey Street, has been transferred to the property reserve as part of streamlining funds of the same purpose.

Designated Funds

Property Reserve - This represents the fund amount currently invested in the Charity's property excluding the value of the mortgage secured against the property .

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WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restricted Funds
Unrestricted Funds		 Fixed
Assets
£'000
-
25,935		 Net
Current
Assets
Long Term
Liabilities
£'000
£'000
24
-

2,180
(19,705)
2,204
(19,705)		 Total
£'000
24
8,410
25,935 8,434

20. PENSION SCHEME

The Trust contributes towards a pension scheme for most of its employees. The scheme consists of a series of defined contribution pension arrangements. The nature of these arrangements is such that there are no unfunded liabilities. The pension funds are administered by trustees and are independent of the Trust's finances. The contributions paid the year amounted to £723,722 (2023: £613,807).

21. OPERATING LEASES

Income from operating leases

As at 31 July the following income was due to the charity and group under the non-cancellable operating leases:

Due in less than one year
Due in two to five years
Due after five years		 2024
2023
£'000
£'000
401
523
653
792
454
-
1,508
1,315

Baden Place, Crosby Row was purchased in September 2018 by the Trust as an investment. Of the total area of 25,461 square feet WSET has been occupying 11,022 square feet since August 2019. The remaining space of 14,439 sq ft is in rentable condition and was let for the full year except for Units 1, 13 & 14 (5,053 square feet) which remained unoccupied since 30/01/2023 when the tenant exercised their break clause. A replacement tenant for these units has not yet been found. The investments returned a rental of £632k in the year ended 31st July 2024. Rental income for the year ending 31st July 2025 is expected to be £401k and for the next four years is expected to provide an income of £653k. The expected rental income of £454k after five years reflects the long-term lease secured from letting premises not occupied by the School at International House, Bermondsey Street.

Operating lease expenditure

As at 31 July 2024 the group had no annual commitments under non-cancellable operating leases.

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WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

22. FINANCE LEASES

During the year, the Charity has entered into hire purchase agreement funding the School refurbishment works with a carrying amount of £646k (2023: £nil) at the balance sheet date. The future minimum payments under these agreements are £164k within one year, £533k between two and four years.

23. LEGAL STATUS OF THE TRUST

The Trust is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

24. RELATED PARTY TRANSACTIONS

Kirsten Grant Meikle is a member of the Worshipful Company of Distillers who donated a total of £2,000 (2023: £1,865) to WSET in the year.

Miles Beale is a member of the Board of the Wine & Spirit Trade Association, that is a tenant of the WSET for accommodation with a rental value of £55,000 (2023: £55,000) per annum. WSET also sold £4,370 (2023: £3,830) worth or educational services to WSTA in the year. WSET purchased £554 (2023: £536) worth of subscription services in the year from WSTA.

Joanna Locke is a member and representative of the Institute of Masters of Wine from whom WSET purchases membership fees and training for its staff totalling £6,810 (2023: £13,356) in the year.

There were no claims made from trustees for reimbursement in the year.

Transactions to and from subsidiary entities have been disclosed in Note 9 and Note 10.

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WINE AND SPIRIT EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

25. COMPARATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

Income from
Charitable activities:
Courses, examination
fees and Teaching aids
Donations and legacies
Investments
Other trading activities
Total income
Expenditure on
Examinations & courses
Teaching aids
Raising funds
Total expenditure
Net (expenditure)/income
before transfers
Transfers
Net income
Translation adjustment
Net movement in funds
Investment Property Loss
Funds balances brought forward
at 1 August 2022
Fund balances carried forward at
31 July 2023		 General
Designated
£'000
£'000
21,025
-
369
-
15
-
731
-
22,140
-
16,761
-
4,311
-
1,515
-
22,587
-
(447)
-

2,051
(2,051)
1,604
(2,051)
(283)
-
1,321
(2,051)
-
(2,229)
2,443
11,270
3,764
6,990
Unrestricted funds		 Restricted
Total
funds
2023
£'000
£'000
-
21,025
2
371
-
15
-
731
2
22,142
-
16,761
-
4,311
1
1,516
1
22,588
1
(446)
-
-
1
(446)
-
(283)
1
(729)
(40)
(2,269)
220
13,933
181
10,935
22,140
16,761
4,311
1,515
22,587
(447)
2,051
1,604
(283)
1,321
-
2,443
3,764

Page 35