Charity Reglstration No. 515066 MERCHANT TAYLORS. OLD BOYS ASSOCIATION CHARITABLE TRUST ANNUAL REPORT AND UNAUDrrED FINANCIAL STATEMENTS for the year ended 5 Aprll 2024 MERCHANT TAYLORS, OLD BOYS ASSOCIATION CHARrrABLE TRUST CONTENTS Page Trustees. report Indep8ndent examinèrs report statement of financial activities Statement of financial position Notes to th8 financial statements 8-13 MERCHANT TAYLORS. OLD BOYS ASSOCIATION CHARITABLE TRUST LEGAL AND ADMINISTRATIVE INFORMATION Trustees David Stephen Evans lan Alan Douglas lan Duckett Philip Marshall KC Charlty number 515066 Independ•nt oxamln•r Jean Ellls BA FCA CTA Castle Chambers 43 Castle Streèt Liv8rpool L2 9TL Investment advisors Investec Wealth & Investment Limited The Plaza 100 Old Hall Street Liverpool L3 9AB MERCHANT TAYLORS. OLD BOYS ASSOCIATION CHARITABLE TRUST TRUSTEES REPORT FOR THE YEAR ENDED 5 APRIL 2024 The trustees present their report and accounts for the year ended 5 April 2024. The accounts have been prepa￿d in accordance with the accounting policies set out in note 1 to the accounts. ObJectlv6s and aclivltles Charltable objects Th8 charllable trusfs objects are to apply th8 funds held for any charltable purpose connected Mth or relating to Merchant Taylors. Sch¢x)I for Boys, Crosby rthe School") or Its wesent or past members. Th8 Mills Bequest Fund Is for the benefft of students from the Southport area who meet certaln crlteria laid down by the donor. Aims of charlty The pollcy adopted in furtherance of the charitable trusfs objects is currenty to provide bursaries and grants to assist pupils. Ther8 has been no chang8 in this policy durfng the year. The aims of the charity are to apply the bursaries and grants to those pupils whom the trustees In thelr discretion have decided to fund. How achi•vemÈnl of alms furth•rs objoctlves By providing bursarles and grants to pupils, the trustees ensur8 that pupils who could not otherwise do so will benefit from the educatlon provided by the School. Strategy for achlevlng aims and objedives The trustees, strategy for achieving their aims remains one of holding investments, with the incom being made available to meet the bursaries and grants which the trustees have decided to pay. Statomont of eompllanco wlth Charity Commlsslon guidan¢• The trustees have had due regard to Charlty Commission guldance In deciding what actlvities the charitabl8 trust should undertake during the y8ar. The trustees are satisfied that the information provided in this report and accounts meets th& public benefft r8P¢Jllng requirements. Charllabl• aclivities The main charitab18 8CtMties of the charltable trust are the operation and management of th8 trust's invesknent portfolio the subsequent bursaries and grants paid. The trustees meet p8ri¢JJi¢ally to conslder the available income generated, wlth a view to distributing as much of th8 net income available as posslble. poli￿ for granting bursarfès and grants The charitable trust Is only invofved in granting bursaries and grants In furtherance of the charlvs aims. Bursaries and grants made during the yèar are recognised in thè accounts in the parfod In which they are paid. The truste8S meet periodlcally to review the list of bursaries and grants. Achl8v•m•nts and porfomian¢e Rèvlew of thè charity's achlevom•nts: By reviewing and monitorirKJ th8 trust's income levels, the trustees have beèn able to apply a larg8 p8rc8ntsge of that income (less expenses) as bursarfes and grants to support various pupils. In dolng so they have been able to assist those pupils to tenefft from an education at the SchcNJI, and to achreve the chartys alms. MERCHANT TAYLORS, OLD BOYS ASSOCIATION CHARITABLE TRUST TRUSTEES REPORT FOR THE YEAR ENDED 5 APRIL 2024 Invèslment perforniance Most of the trust's ¢apital Is Invested on stock marke( subject to a cash reserve. Throughout the yèar the total r8tum of the portfollo achieved what th8 trustees conslder was an acceptablè level Ythen set against the relevant p8rforman¢e benchmarks. Ongoing investment advice Is provided by Rathbones incorporating Investe¢ Wealth and Investm8nt Management ("th8 investment managers.). which provides quarterly reports to the trustees induding a réview of the current market position and a comparison of how the FQrtfolio has perfOr￿￿d against current benchmarks. The trustees also meet with the investment managers t4vi¢e each year. The markèt value of the portfolio on 5th April 2024 was £1.000.968 {2023: £974,025). The tDJste8s have reviewed tha portfollo regularly, and Bre content with thè overall perfomance during the year. Flnan¢ial revlow Rovlew of financlal position The charitable tmst's overall fund balances for the year total £1.029.348 compared with £994,176 for 2023. After taklng into conslderalion total net income and expendtture, net gains on Investments, ¢ommrtments to Charitable bursaries and gov8mance costs, there was an overall increase in the net movement of funds of £35.172 ¢omp8red with a decrease of £84,384 for 2023. The trustees have reviewed the charity's bursary and grant making ¢apability and are satisfied tha going forward there will be suffi¢rent incom8 yèar on year to enable it to meet its financial commitments. The truste8s consider the charity's investments as éxpendable endowments. providing a relatively secure and predictable stream of income from which to provide bursarles and grants. Rosorves pollcy The charitable trust's policy is that unrestrict8d funds whlch have not been d8signated for a specific use should be malntslned at a lev81 equivalent to between three and stx months. expenditur8. The twstees conslder that reserves at thls level should 8nsure that in the event of a slgnificant drop in funding, they can continue the charitable trusvs current 8Ctivitl8s while they consider how additional funds may be ralsed. The trustees aim to dlstribute as much of the Income. net of expenses, as posslblé in each financial year and therefore do not maintain income resep4es as such. However, the trust88s continually review the inct)me levels from the trust's investments to ensure that they have sufficient funds to meet thelr objectives. Investment pollcy The trust88s are legally responsible for the investment decision4naklng process. Thè investm8nt managers have authorty from the trustees to make day-to4ay investment de¢lsions on a discretionary basls, subject to reporting those de¢isions promptly to the trust8é$. Ongolng advice is both initiated by th8 inve$trnent managers and grven when requested by th8 trust8es. Thèrè are no spec5flc restrictions on investment power5 and the trustees have full discretion over the investments held. The charity's investm8nt policy is to athieve a balanced return from income and capital appreciation and In¢ome yield. It is anticipated that the income yield from the investment portfolio will be broadty in Ilne with the MSCI WMA benchmark. Thè investment managers are required to avoid exposure to Investments whith are deemed unsultable in the context of the trust8es' objectives when consldering the portfolio as a whol8. The investment managers are also requlred to have regard to the need for diversificatlon, and the total amount invested In a direct equity investment 3￿uld not 8xc86d 5Yo of the market value of the tnjsfs total investment portfollo at the tlme of purchasé. MERCHANT TAYLORS. OLD BOYS ASSOCIATION CHARITABLE TRUST TRUSTEES REPORT FOR THE YEAR ENDED 5 APRIL 2024 Risk managèmènt Th8 trustees have assessed thè major rlsks to which the charitablè trust is exposed. and are satisfied that Systems are in place to mitigate exposure to the major risks. The trustses recognise the risk assctiated with invèstrnent in mainstream financial markets and accept that risk in retum for prospect of additional retums over a longer period of time. Plans for future periods The trustees intend to continue providing bursaries and grants in furtherance of the charitys objectives. Previously they have been satisfied that the f)Jrrent poliLies were sufficient to meet those objectives and did not consider that these needed amendment. They have ￿ntinUed to review the position on a regular basis. most recently in light of the announced merger of the Schcrf)I wilh Merchant Taylofs School for Girfs taking effect in September 2025. The trustees are at the time of this r8POrt ¢onsiderTng how best to ensure the continued delivery of bursaries and grants in these new arcumstances. Strncture. gove¥rbance and managoment The charitable trust (charlty registration number 515066) was established by a Deed dated 27th April 1983 and created by the Committee ('the Committee.) of an unincorporated institution known as the Merchant Taylors. Old Boys Association. The principal Offi￿ and ¢orrespond8n¢e for the charity is." David Stephèn Evans 19 Mèrrilocks Road Blundellsands Llverp)ol L23 6UJ Trusta•s The trustees who served durlng the year were: David Stephen Evans lan Alan Douglas lan Duckett Philip Marshall KC Rocruilmont and appointment of trustees The power to appoint new and additional trustees vests with the Committee and in appointing new and additional trustees. the trustees act in accordan￿ with the directions of the Committee. Organlsatlonal structure The trust is a l)ody of trustees which meets at least annually to review the policies and objectives of the trust. the provision of now bursaries aThJ the continuation or other¥vise of existing bursaries. Induction and training of trustees Thelr professlonal advisers keep the trustees upttrdate on relevant matters. New trustees are made aware of their dutles arKI responsibilities at the tim8 of their appointment. Operational rostrieuons The govemlng document imposes no specific restrictions on the trustees ¢oncemlng the way in which the charity can operate. MERCHANT TAYLORS, OLD BOYS ASSOCIATION CHARITABLE TRUST TRUSTEES REPORT FOR THE YEAR ENDED 5 APRIL 2024 Speclal investment powers There are no specific restrictions on the trustees. investment powers. The trust deed provides the tnjstees with the same full and unrestricted powers of investment and of changing investsnents as if they were ab501utely entitled to the trust fund beneficially. Asset cover for funds The trustees are satisfied that there are sufficient assets to meet the charitable trust's obligations. Th8 Trustees, report was approved by the Board of Trustses. Davld Stephen Evans Trustee 1011212024 Dated.. lan Alan Douglas Truste8 Dated...9.91121.2.9.14. MERCHANT TAYLORS. OLD BOYS ASSOCIATION CHARITABLE TRUST INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MERCHANT TAYLORS. OLD BOYS ASSOCIATION CHARITABLE TRUST I r8POrt to tha trust988 on my examlnation of the financial statèments of MERCHANT TAYLORS. OLD BOYS ASSOCIATION CHARITABLE TRUST (thè charitable trust) for the year ended 5 April 2024. R•sponslbllllles and basis of report As the trustees of th8 charitable trust you are responsible for the pr8paratlon of the financial statements In ac¢cKdance with th8 ffjquirements of the Charities Act 2011 (the 2011 Act). I rèport In respect of my examinatlon of the charltable trust's financial statements carrled out undèr section 145 of the 2011 Act. In carying out my examlnation I have ftillowed all the appllcable Directlon$ given by the Charlty Commlssion under s8Ction 14515){b) of the 2011 Act. Independgnt examln8Vs statemont Your attentlon is drawn to the fact that the charity has prepared financlal statements in accordance wlth the Finand81 Reportlng Standard applicable in the UK and Republlc of Ireland (FRS 102) in preferen¢e to the Accounting and Reporting by Charities.. Statèment of Recommended Practice issued on 1 April 2005 whith is ref8rr8d to In the extant regulations but has now been wthdrawn. l understand that this has been done in order for financial statèments to provide a true and fair vi8w in accordance with Generally Accepted Accounting Practice 8ffectiv8 for reportlng periods b8ginning on or after 1 January 2015. I hav8 completed my gxamination. I conftm that no matters have come to my attention in Connection with the examinatlon giving me cause to belleve that in any material resped: accountlng records were not kept in re8P8Ct of the charltsble trust as required by s8Ction 130 of the 2011 Act., the financial statements do not accord wlth those records; or the financial stat8ments do nol comply with the applicable requlr8ments concerning the fom and content of accounts sét out in the Charities nol indude intsrest accrued. Unreali5ed galns and10s5e8 ar8 included on the statement of financial a¢tivltl8S. 1.7 Cash and cash equlvalents Cash and cash equivalents includ8 cash In hand. deposits held al call with banks, other 8hort-t8rm Ilquld investments with original maturities of three mnths or less. and bank overdrafts. In th8 unlikely event that there are bank overdrafts they wlll be shown within borrowings In Current liabilities. Bask financlal assets Baslc flnancial assets, which Include debtors and cash and bank balances, are inlt1811y measured at transactlon price including transaction costs and are subsequently carried al Bmortised cost uslng the efféctive Interest method unless the arrangement constitutes a financlng transaction. where the transaction is measured al the present V8lue ol the future re￿Ipts discounted at a market rate of interest. Financlal assets dassified as receivable within one year are not amortised. Baslc finan¢lal Ilabllltles Basic financial liabilities, including cr8dlti)rs and bank loans are initially recognised at transaction price unlvss the arrangement constitutes a financing transaction, vh)ere the debt instrument is measured at the present valu8 of the future payments discounted at a market rat8 of interest. Flnancial li8bilities classified as payable within one year are not amortised. Derecognition of flnancial Ilabilltles Financial liabilities are derecognised when the charitable trust's contractual obligations expire or are discharged or cancelled. Investment income Revenuo funds Mllls Bequest funds Total Total 2024 2024 2024 2023 Income from listed investments Interest from Gilts & loan stock Interest receivable 27,869 11,542 228 280 28,149 11,542 269 33.513 7,559 233 41 39,639 321 39,960 41,305 For the year •nded 5April 2023 41,082 223 41,305 MERCHANT TAYLORS, OLD BOYS ASSOCIATION CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Donatlon$ Revenue funds Capltal funds Total Total 2024 2024 2024 2023 Donattons 9.196 9,196 4.973 For tho year ended S April 2023 4,973 4,973 Charltable activltles 2024 2023 Grant fvnding of activities (see note 6) Share of governance costs (s88 note 7) 41,008 2,358 49.661 1.698 43,368 51,359 Analysis by fund Unrestricted funds- general Unrestricted funds - Capltal funds Restricted funds 41,008 1,936 422 49,661 1,317 381 43,366 51.359 For the year ended 5 Aprll 2023 Unrestricted funds - gvii8ral Unrestricted funds - Capltal tunds Restrictsd lunds 49,661 1,317 381 51,359 10- MERCHANT TAYLORS. OLD BOYSASSOCIATION CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Raising funds Capltal fund Mllls Boquest fund Total Total 2024 2023 Investment management 9.190 154 9,344 9.519 9,190 154 9.519 For the year ended 5 Aprll 2023 Inveslment management 9,357 162 9.519 Bursaries payable 2024 2023 Bursari8S to pupils of Merthant Taylors, School 41.008 49.661 7 Support costs Support Governance costs costs 2024 Support ¢osts Govemance costs 2023 Audit fees Ac¢ountancy Adjustrnent to Audit Fees 162 2,196 162 2,196 150 1,998 (450) 150 1.998 {450) 2.358 2,358 1.698 1,698 Analysed belween Charitable activities 2.358 2,358 1,698 1.698 Govemance cJ)sts indudes payments of £162 (2023-£150) for Independent examination fees. Trustees None of the tTUStees {or any persons connected with them} re￿iVed any remuneration or benéfts from the charitable trust during the year. 11 MERCHANT TAYLORS. OLD BOYS ASSOCIATION CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Employees 2024 Number 2023 Numbgr Totsl There were no employ88s whos8 annual r8muneratlon was more than £60,000. 10 Not galn$l{losses) on Investmonls Capltal funds Mills Bequest fund Total Total 2024 2023 Revaluation of investments Gainl{loss) on sale of investments 36.361 2.973 (608) 35,753 2.973 {67.954) (1.830) 39,334 (608) 38.726 (69.784) For the year ended 5 Aprll 2023 (68.748) (1,036) <69.784) 11 Fixed asset Investments Llst•d Invoslments Cost or valuatlon At 6 April 2023 Addltlons Valuation changes ProfiV(loss) on sale of investments Disposals 974,025 160,138 35,753 2,973 (171,921) At 5 April 2024 1.000,968 Carrylng amount At 05 April 2024 1,000,968 At 05 April 2023 974.025 -12- MERCHANT TAYLORS. OLD BOYS ASSOCIATION CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 12 Current Ilabllltles 2024 2023 Other payab18S 2,358 2.148 13 Rostrletéd fund$ The income funds of the charity include restriGted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes.. Movement In funds B•lanc• al In¢oming 6 Aprll 2023 mour¢es R•s•ur¢èts R•valuatlon#. 8*lanc• at •xpended galn8 and S Aprll 2024 losse Mills Bequest Fund 10.453 321 15761 (608) 9,590 14 Unreslrl¢ted funds . Capltal funds These are unrestricted funds which are rnaterial to the charitable trusfs activities made up as follows". Movement in fund$ Bal4nc• at Incoming R•sourc•$ R•valuatlon 8 Aprll 2023 rosources eX￿nded Balanco at galn$ *nd SAprll 2024 loss•s Unrestricted Funds 33).599 9.196 (11.126) 39.334 358,003 15 Analysls of net assets b•twe•n funds Revenue Capltal Mllls Bequest Total Fund balances at 5 April 2024 are representéd by: Investments Current assetsl{liabilities) 661,755 336.361 21,642 2.852 6.738 1,000,968 28,380 661,755 358,003 9,590 1.029,348 16 Related party transactions There were no disclosablè related paty transactlons durfng the y8ar (2023 - none). 13-