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← St Mary The Virgin Estate Management Charity

2025-03-31-accounts

Docusign Envelope ID: BF1B7DBD-3D9D-40B8-950A-1D99322AF614

Charity number: 512217

ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Docusign Envelope ID: BF1B7DBD-3D9D-40B8-950A-1D99322AF614

ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

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CONTENTS
Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 6
Independent Auditors' Report on the Financial Statements 7 - 10
Statement of Financial Activities 11
Balance Sheet 12
Notes to the Financial Statements 13 - 25
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Docusign Envelope ID: BF1B7DBD-3D9D-40B8-950A-1D99322AF614

ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2025

Trustees Mr S J Lightley, Chairman
Mr N Paton, Vice Chairman (resigned 1 July 2025)
Ms R Amey (resigned 14 April 2025)
Mr M Barker (appointed 26 September 2025)
Mr A Birkmyre (resigned 9 April 2025)
Mr G C Hunter
Mr J W Kyle
Dr H Jones-Lee
Ms N Miller (appointed 14 April 2025)
Mrs C S Penn (resigned 2 September 2025)
Mr M Richardson (appointed 10 June 2025)
Mr R Singh Sanghera (appointed 1 July 2025)
Charity registered
number
512217
Principal office
5 - 7 Osborne Terrace
Newcastle upon Tyne
NE2 1SQ
Independent auditors
Kinnair Associates Limited
Chartered Accountants
Aston House
Redburn Road
Newcastle upon Tyne
NE5 1NB
Bankers
National Westminster Bank plc
16 Northumberland Street
Newcastle upon Tyne
NE1 7EL
Solicitors
Mincoffs Solicitors
5 - 7 Osborne Terrace
Newcastle upon Tyne
NE2 1SQ
Clerk to the Trustees
Timothy Rohan Gray
Deputy Clerk to the
Trustees
Christopher Hughes

Page 1

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ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2025

The Trustees present their annual report together with the audited financial statements of the Charity for the year from 1 April 2024 to 31 March 2025.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the Charity’s governing document, the Charities Act 2011 and the relevant version of the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Objectives and activities

Policies and objectives

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

The object of the Charity is to administer and manage the property in its care.

i. The income of the Estate Management Charity is to be applied as follows:

Achievements and performance

Review of activities

Net investment income was £77k (2024: £75k). More recently, issues with the global economy and the conflict in the Ukraine, accompanied by high levels of inflation and interest rates, have affected the current performance of equity investments adversely.

Rental income has fallen marginally this year reflecting principally a rent reduction on one of the Charity's properties at the time of an extension of that lease. Property outgoings have reduced reflecting full occupancy at some formerly vacant units. As a result, net property income was £359k (2024: £362k).

General administrative costs have increased slightly from last year.

Share investment values have decreased by £29k.

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ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Achievements and performance (continued)

Investment policy and performance

The Trustees have adopted a policy of seeking medium risk investments in order to generate income and achieve some capital growth. The Charity remains a long term investor and, on professional advice, holds a diversified portfolio of equities, bonds and property with some cash.

The portfolio total return was +2.9% for the year to 31 March 2025 (2024: +11.8%). This compares with total returns for the following indices:

Year to 31.03.25 Year to 31.03.24
BD Risk Category 6 Benchmark +6.5% + 13.4%
FTSE British Government All Stocks Index
- 1.2%		 - 0.0%
Iboxx £ Corporate Bond Index + 2.3% + 7.4%
FTSE All Share Index + 10.5% + 8.4%
FTSE All World Ex UK Index + 5.2% + 21.4%
IA Property Index + 6.2% - 3.5%
IA Targeted Absolute Return Index + 4.5% + 6.3%

The Brewin Dolphin Risk Category 6 Benchmark comprises 3.5% UK Gilts, 2.5% UK Bonds, 11% Overseas Bonds, 17% UK Equities, 51.5% Overseas Equities, 3% Property, 9% Alternatives & 2.5% Cash.

Global equities continued to make new highs at the start of the year supported by resilience in the US economy and the increasing prospects of a ‘soft landing’. There was a clear divergence in US and Eurozone market performances and, while the S&P 500 and NASDAQ Composite indexes reached record highs as investors continued piling into tech stocks, Europe ended barely in the black.

However, the momentum built up over the previous couple of months stalled in the latter half of July and, after the global ‘Crowdstrike’ outage, investors began to look for alternative ways of playing the spread of artificial intelligence (AI). August was also something of a rollercoaster ride as, with inflation concerns falling, a US employment report came in below forecasts for only the fifth time in the previous two years. The possibility of a US recession became a greater concern and was initially thought to be the catalyst for the sell-off in technology stocks. However, with US rates set to decline the (fairly long running) dollar/Yen carry trade became less attractive and, in early August, the yen started to appreciate very fast. This put pressure on investors being squeezed out of the trade to reduce positions and the Japanese TOPIX index fell a stunning 12% in a single session. The knock-on effects were felt across global markets and the gains made by semi-conductor and AIrelated stocks were particularly targeted.

At the beginning of November the action was dominated by the US presidential election. The reaction to the results was largely intuitive and equities generally benefited, reflecting the prospect of less regulation and potentially lower taxes. However, the election of President Trump warranted an increased premium for risky assets and the imposition of tariffs, which could reduce global growth and re-fuel inflation, and saw treasury yields rise sharply.

It was always likely to be a lively start to 2025 but major markets performed well in January. Even so, the performance of the US equity market had been broadening out since the election in November and, although 2024 had been a strong year for the ‘Magnificent Seven’ mega-cap stocks, the month saw the group lose further ground against the wider market.

There have been two distinct phases to the market action since the US election. The first was a repeat of the ‘Trump bump’ experienced in his first term and this took place after the result confirmed he would have a second term, as investors reacted to the prospect of anticipated benefits, such as reduced regulation and the possibility

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ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Achievements and performance (continued)

of tax cuts. However, the bump became a slump and, from mid-February, there was a sharp sell-off for global equities, driven almost entirely by the US. The most obvious rationale for the sell-off was trade tariffs and the dramatic escalation in President Trump’s global trade war.

A handful of UK stocks have weighed on relative performance. The UK market is closely linked to the performance of value versus growth, and, while there are reasons to believe that the outlook for the growth style is brighter, we consider that some diversification continues to make sense. The domestic allocation also makes a significant contribution to portfolio income.

Financial review

Going concern

The Trustees have considered the likely effect of the current macro-economic global uncertainties on the prospects for future investment income and on the ability of tenants to continue to meet their rental income obligations. These forces will likely impact adversely on the Charity’s future levels of income. However, as the greater part of the Charity’s expenditure represents distributions to the beneficiaries that are linked to the level of income earned and will reduce if income levels remain low the Trustees are satisfied that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis.

Reserves policy

The Trustees have a policy, after allowing for other expenditure and interim payments to beneficiaries, of paying out the residual balance of the Charity's net incoming resources to the beneficiaries at the conclusion of the meeting approving the Trustees' report and financial statements. Consequently the reserves are represented by investment properties, other investments and funds awaiting investment and changes in those reserves result from changes in the value of investment properties and other investments as dictated by the Investment Policy.

Structure, governance and management

Constitution

St Mary the Virgin Estate Management Charity is a registered charity, number 512217, and is constituted under a Trust deed.

It is regulated by The Saint Mary's Hospital (Newcastle upon Tyne) Acts 1888 and 1927 as affected by Schemes of the Charity Commissioners of the 18 September 1903, the 18 March 1930, the 12 December 1966, the 2 April 1979, 20 September 2000 and 20 February 2014 as well as a Scheme made by the Board of Education on the 4 July 1914.

It is organised into two separate Charities named the Hospital of St. Mary the Virgin (Rye Hill and Benwell) Almshouses Charity, referred to as the Almshouses Charity and the St. Mary the Virgin Estate Management Charity, referred to as the Estate Management Charity.

There have been no changes in the objectives since the last annual report.

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ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Structure, governance and management (continued)

Organisational structure and decision-making policies

The Charity is run by a body of eight Trustees (increased in number from seven by the Scheme of the 20 September 2000). The Trustees are assisted by their Clerk. The body of Trustees shall consist of:

One appointed by the Bishop of Newcastle; Two appointed by the Almshouse Trustees;

Two appointed by the Governors of The Newcastle upon Tyne Royal Grammar School;

Appointed by a special resolution of the Estate Management Trustees.

Policies adopted for the induction and training of Trustees

Upon appointment, Trustees are given copies of the Charity Commission Scheme, the accounts and the minutes of the last meetings of the Trustees. They are also supplied with the Charity Commission booklet in relation to the responsibility of charity trustees.

Trustees are appointed for their particular skills in dealing with a charity of this nature.

Financial risk management

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Plans for future periods

The Trustees intend to maintain their investments in commercial property and stock markets at current levels but the Trustees will keep this under review.

The lease at the York property has been extended in November 2024 at a reduced rental and as a result the Trustees anticipate a significant drop in income from property in the coming financial year.

The Trustees anticipate that dividend receipts will remain at a reduced level for the foreseeable future and so amounts available for distribution to the Charity’s beneficiaries will continue generally lower than a few years ago. The Trustees are mindful of the adverse effect that this has on the interests of the Charity’s beneficiaries.

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ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Statement of Trustees' responsibilities

The Trustees 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).

The law applicable to charities in England & Wales 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 Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Auditors

The auditors, Kinnair Associates Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees on _______ 26-Sep-2025 and signed on their behalf by: [stephEAF14BF17BCC480... by: Mr S J Lightley

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ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

Opinion

We have audited the financial statements of St Mary the Virgin Estate Management Charity (the 'charity') for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.

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ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees are responsible for the preparation of the financial statements which 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 charity'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.

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ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 Auditors' 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:

We assessed the susceptibility of the Charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: -

To address the risk of fraud through management bias and override of controls, we: -

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which include, but are not limited to: -

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ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY (CONTINUED)

There are inherent limitations in our anticipated audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Auditors' Report.

Use of our report

This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's Trustees those matters we are required to state to them in an Auditors' 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 charity and its Trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Kinnair Associates Limited

Chartered Accountants Statutory Auditor Aston House Redburn Road Newcastle upon Tyne NE5 1NB

Date: 26-Sep-2025

Kinnair Associates Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

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ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2025

Note
Income and endowments from:
Investments
3
Other income
4
Total income and endowments
Expenditure on:
Raising funds
5
Charitable activities
7
Total expenditure
Net income before net gains on
investments
Net gains on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Endowment
funds
2025
£
-
-
-
-
-
-
-
60,381
60,381
7,152,986
60,381
7,213,367		 Restricted
funds
2025
£
446,676
13,605
460,281
23,986
436,295
460,281
-
-
-
-
-
-		 Total
funds
2025
£
446,676
13,605
460,281
23,986
436,295
460,281
-
60,381
60,381
7,152,986
60,381
7,213,367		 Total
funds
2024
£
450,119
11,827
461,946
24,868
437,078
461,946
-
155,300
155,300
6,997,686
155,300
7,152,986

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 13 to 25 form part of these financial statements.

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ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

BALANCE SHEET AS AT 31 MARCH 2025

2025 2025 2024 2024
Note £ £
Fixed assets
Investments 13 2,569,886 2,601,194
Investment property 12 4,580,000 4,505,000
7,149,886 7,106,194
Current assets
Debtors 14 18,078 36,562
Cash at bank and in hand Cash at bank and in hand 173,820 131,577
191,898 168,139
Current liabilities
Creditors: amounts falling due within one Creditors: amounts falling due within one
year 15 (128,417) (121,347)
Net current assets 63,481 46,792
Total assets less current liabilities Total assets less current liabilities 7,213,367 7,152,986
Total net assets 7,213,367 7,152,986
Charity funds
Endowment funds 17 7,213,367 7,152,986
Total funds 7,213,367 7,152,986
The
financial		 statements were approved and authorised for
issue		 by by
the		 Trustees
on
_______and signed on their behalf by:
26-Sep-2025		 and signed on their behalf by:

Mr S J Lightley

The notes on pages 13 to 25 form part of these financial statements.

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ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1. General information

St Mary the Virgin Estate Management Charity is a registered charity, number 512217. The Charity is unincorporated and its registered office is 5 - 7 Osborne Terrace, Newcastle upon Tyne, NE2 1SQ.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

St Mary the Virgin Estate Management Charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

The Trustees have considered the likely effect of the current macro-economic global uncertainties on the prospects for future investment income and on the ability of tenants to continue to meet their rental income obligations. These forces will likely impact adversely on the Charity’s future levels of income. However, as the greater part of the Charity’s expenditure represents distributions to the beneficiaries that are linked to the level of income earned and will reduce if income levels remain low. The Trustees are satisfied that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated to the applicable expenditure headings.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity.

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ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

2. Accounting policies (continued)

2.4 Expenditure (continued)

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.

The Charity classifies land and buildings as investment properties when they are held to earn rentals or for capital appreciation, or both. Investment properties are initially measured at cost which comprises the purchase price and any directly attributable expenditure. Investment properties are subsequently remeasured to fair value (which for this purpose is market value) at each reporting date with any changes in the fair value recognised in the statement of financial activities.

2.7 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.8 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.9 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

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ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

2. Accounting policies (continued)

2.10 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.11 Fund accounting

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Investment income

Rent receivable
Dividends and interest on investment
Bank deposit interest
Rent receivable
Dividends and interest on investment
Bank deposit interest		 Restricted
funds
2025
£
354,947
90,340
1,389
446,676
Restricted
funds
2024
£
362,016
85,878
2,225
450,119		 Total
funds
2025
£
354,947
90,340
1,389
446,676
Total
funds
2024
£
362,016
85,878
2,225
450,119

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Docusign Envelope ID: BF1B7DBD-3D9D-40B8-950A-1D99322AF614

ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

4. Other incoming resources

Reimbursement of insurance premiums
Reimbursement of insurance premiums		 Restricted
funds
2025
£
13,605
Restricted
funds
2024
£
11,827		 Total
funds
2025
£
13,605
Total
funds
2024
£
11,827

5. Investment management costs

Investment management fees
Outgoings on investment properties
Investment management fees
Outgoings on investment properties		 Restricted
funds
2025
£
13,845
10,141
23,986
Restricted
funds
2024
£
13,061
11,807
24,868		 Total
funds
2025
£
13,845
10,141
23,986
Total
funds
2024
£
13,061
11,807
24,868

Page 16

Docusign Envelope ID: BF1B7DBD-3D9D-40B8-950A-1D99322AF614

ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Outgoings on properties
Insurance
Professional fees
6.
Analysis of grants		 2025
£
1,641
8,500
10,141		 2024
£
11,807
-
11,807
Payment of grants to institutions
Payment of grants to institutions		 Grants to
Institutions
2025
£
406,732
Grants to
Institutions
2024
£
412,339		 Total
funds
2025
£
406,732
Total
funds
2024
£
412,339

The Charity has made the following material grants to institutions during the year:

Name of institution
Vicar of the Parish of Saint Matthew, Newcastle upon Tyne under
Regulation 25 (1) (a) of the 1979 Scheme
The Governors of Newcastle upon Tyne Royal Grammar School payment
under Regulation 25 (1) (b) of the 1979 Scheme
The Governors of the Newcastle upon Tyne Grammar School
The Trustees of the Almshouses Charity		 2025
£
400
1,000
214,826
190,506
406,732		 2024
£
400
1,000
217,798
193,141
412,339

Page 17

Docusign Envelope ID: BF1B7DBD-3D9D-40B8-950A-1D99322AF614

ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

7. Analysis of expenditure on charitable activities

Summary by fund type

Grant making activities
Grant making activities		 Restricted
funds
2025
£
436,295
Restricted
funds
2024
£
437,078		 Total
2025
£
436,295
Total
2024
£
437,078

8. Analysis of expenditure by activities

Direct costs
- grant
making
activities
2025
£
Grant making activities
406,732
Direct costs -
grant making
activities
2024
£
Grant making activities
412,339		 Support
costs
2025
£
29,563
Support
costs
2024
£
24,739		 Total
funds
2025
£
436,295
Total
funds
2024
£
437,078

Page 18

Docusign Envelope ID: BF1B7DBD-3D9D-40B8-950A-1D99322AF614

ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

8. Analysis of expenditure by activities (continued)

Analysis of support costs

Bank charges
Clerk's fees
Professional charges
Governance costs
Trustees' indemnity insurance
Bank charges
Clerk's fees
Professional charges
Governance costs
Trustees' indemnity insurance
Governance costs comprise:
Governance auditors' remuneration
Clerk's fees		 Activities
2025
£
293
11,250
8,550
9,042
428
29,563
Activities
2024
£
279
11,250
4,058
8,790
362
24,739
2025
£
5,292
3,750
9,042		 Total
funds
2025
£
293
11,250
8,550
9,042
428
29,563
Total
funds
2024
£
279
11,250
4,058
8,790
362
24,739
2024
£
5,040
3,750
8,790

Page 19

Docusign Envelope ID: BF1B7DBD-3D9D-40B8-950A-1D99322AF614

ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

9. Auditors' remuneration

2025 2024
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 3,550 3,440
Fees payable to the Charity's auditor in respect of:
VAT and other professional services 1,742 1,600

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2024 - £NIL) .

During the year ended 31 March 2025, no Trustee expenses have been incurred (2024 - £NIL) .

11. Net gains/(losses) on investments

Gains/(losses) on disposal of share investment assets
Gains/(losses) on revaluations of share investment assets
Gains/(losses) on revaluations of investment properties		 2025
£
14,868
(29,487)
75,000
60,381		 2024
£
3,173
187,127
(35,000)
155,300

12. Investment property

Valuation
At 1 April 2024
Gain on revaluation
At 31 March 2025		 Freehold
investment
property
£
4,505,000
75,000
4,580,000

The desktop valuations were made in August 2025 by Naylors Gavin Black, Chartered Surveyors, on an open market value for existing use basis.

Page 20

Docusign Envelope ID: BF1B7DBD-3D9D-40B8-950A-1D99322AF614

ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

13. Fixed asset investments

Cost or valuation
At 1 April 2024
Additions
Disposals
Revaluations
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024
Debtors
Due within one year
Rent and insurance debtors
The Hospital of St Mary the Virgin Almshouses Charity
Prepayments and accrued income		 Listed
investments
£
2,597,372
402,000
(422,101)
(29,487)
2,547,784
2,547,784
2,597,372		 Other fixed
asset
investments
£
3,822
18,280
-
-
22,102
22,102
3,822
2025
£
10,130
-
7,948
18,078		 Total
£
2,601,194
420,280
(422,101)
(29,487)
2,569,886
2,569,886
2,601,194
2024
£
24,054
4,144
8,364
36,562

14. Debtors

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Docusign Envelope ID: BF1B7DBD-3D9D-40B8-950A-1D99322AF614

ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

15. Creditors: Amounts falling due within one year

Rent deposits
The Hospital of St Mary the Virgin Almshouses Charity
Other taxation and social security
The Newcastle upon Tyne Royal Grammar School
Accruals and deferred income		 2025
£
17,438
10,613
2,700
14,263
83,403
128,417		 2024
£
-
-
22,723
1,328
97,296
121,347

Included in accruals and deferred income above is deferred income of £71,272 (2024: £86,636) representing rental income received in advance.

16. Financial instruments

2025 2024
£ £
Financial assets
Financial assets measured at fair value through income and expenditure 2,547,784 2,597,372

Financial assets measured at fair value through income and expenditure comprise quoted investments stated at market value.

Page 22

Docusign Envelope ID: BF1B7DBD-3D9D-40B8-950A-1D99322AF614

ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

17. Statement of funds

Statement of funds - current year

Balance at
Balance at 1 Gains/ 31 March
April 2024 Income Expenditure (Losses) 2025
£ £ £ £ £
Endowment funds
Endowment Funds - all funds 7,152,986 - - 60,381 7,213,367
Restricted funds
Restricted Funds - all funds - 460,281 (460,281) - -
Total of funds 7,152,986 460,281 (460,281) 60,381 7,213,367
Statement of funds - prior year
Balance at
Balance at Gains/ 31 March
1 April 2023 Income Expenditure (Losses) 2024
£ £ £ £ £
Endowment funds
Endowment Funds 6,997,686 - - 155,300 7,152,986
Restricted funds
Restricted Funds - 461,946 (461,946) - -
Total of funds 6,997,686 461,946 (461,946) 155,300 7,152,986

Page 23

Docusign Envelope ID: BF1B7DBD-3D9D-40B8-950A-1D99322AF614

ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

18. Summary of funds

Summary of funds - current year

Endowment funds
Restricted funds		 Balance at 1
April 2024
£
7,152,986
-
7,152,986
Balance at
1 April 2023
£
6,997,686
-
6,997,686		 Income
£
-
460,281
460,281
Income
£
-
461,946
461,946		 Expenditure
£
-
(460,281)
(460,281)
Expenditure
£
-
(461,946)
(461,946)		 Gains/
(Losses)
£
60,381
-
60,381
Gains/
(Losses)
£
155,300
-
155,300		 Balance at
31 March
2025
£
7,213,367
-
7,213,367
Balance at
31 March
2024
£
7,152,986
-
Summary of funds - prior year
Endowment funds
Restricted funds
7,152,986

The income of the Estate Management Charity arising from the Permanent Endowment Funds is to be applied to the Restricted Funds as follows:

The Estate Management Trustees shall pay the residue of the yearly income of the Estate Management Charity:

Page 24

Docusign Envelope ID: BF1B7DBD-3D9D-40B8-950A-1D99322AF614

ST MARY THE VIRGIN ESTATE MANAGEMENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Fixed asset investments
Investment property
Current assets
Creditors due within one year
Total		 Endowment
funds
2025
£
2,569,886
4,580,000
63,481
-
7,213,367		 Restricted
funds
2025
£
-
-
128,417
(128,417)
-		 Total
funds
2025
£
2,569,886
4,580,000
191,898
(128,417)
7,213,367

Analysis of net assets between funds - prior year

Fixed asset investments
Investment property
Current assets
Creditors due within one year
Total		 Endowment
funds
2024
£
2,601,194
4,505,000
46,792
-
7,152,986		 Restricted
funds
2024
£
-
-
121,347
(121,347)
-		 Total
funds
2024
£
2,601,194
4,505,000
168,139
(121,347)
7,152,986

20. Related party transactions

The Charity is constituted under a trust deed called the Hospital of Saint Mary the Virgin, in the City of Newcastle upon Tyne, in the County of Tyne and Wear.

It is organised into two separate charities named the Hospital of St. Mary the Virgin (Rye Hill and Benwell) Almshouses Charity referred to as the "Almshouses Charity" and the St. Mary the Virgin Estate Management Charity referred to as the "Estate Management Charity".

Grants payable by this Charity to the Almshouses Charity and the Newcastle upon Tyne Royal Grammar School are shown within the analysis of grants note to the financial statements. Amounts due to the Almshouses Charity and the Newcastle upon Tyne Royal Grammar School at the year-end are shown within the creditors due within one year note to the financial statements.

Page 25