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← Hereford Cathedral School

2025-07-31-accounts

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 July 2025

Hereford Cathedral School, a company limited by guarantee Company number: 2081261 Charity number: 518889

HEREFORD CATHEDRAL SCHOOL Annual Report and Financial Statements Year ended 31 July 2025

CONTENTS

Message from the Chair of Governors ................................................................................................................................ 3 Report of the Trustees for the year ended 31 July 2025 ..................................................................................................... 4 Objectives ........................................................................................................................................................................... 8 Aims .................................................................................................................................................................................... 8 Report on objectives to date ................................................................................................................................................ 9 Overview of 2024/25 ......................................................................................................................................................... 10 Financial Review ............................................................................................................................................................... 12 Statement of Governors’ Responsibilities.......................................................................................................................... 14 Independent Auditor’s Report to the Members of Hereford Cathedral School………………………………………………...15 Consolidated Statement of Financial Activities for the year ended 31 July 2025……………………………………………..19 Balance sheets as at 31 July 2025 .................................................................................................................................... 21 Consolidated Cash Flow Statement for the Year Ended 31 July 2025…………………………………………………………23 Notes to the Financial Statements………………………………………………………………………………………………….24

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HEREFORD CATHEDRAL SCHOOL Annual Report and Financial Statements Year ended 31 July 2025

MESSAGE FROM THE CHAIR OF GOVERNORS

The Board are delighted to note that Hereford Cathedral School is going from strength-to-strength in fulfilling its mission of growing people, transforming lives and shaping futures. Underpinned by our values of kindness, courage and integrity, we are educating children and young people to live lives of purpose, fulfilment and happiness.

While the fiscal headwinds of operating independent schools become increasingly challenging HCS has adapted with agility and dexterity to meet those pressures. Diversification of income and prudent financial management is at the heart of our approach in order to maximise affordability and to provide real value for money.

With impressive examination successes, an ever-broadening curriculum and strong pastoral care, we have excellent foundations upon which to build as we move into the second quarter of the twenty-first century. This year, Governors launched their new Q2 strategy to prepare pupils to be real-world ready as we embark on this new chapter.

We welcome Julian Palmer, Michele Lewis and Tim Evans onto our Board; their experience and expertise will enrich us and enable us to provide further, the scrutiny, strategic direction and regulatory oversight which is at the heart of what we do. I would also like to thank and acknowledge the work of our outgoing Chair of the General Purposes Committee, Jonathan Preece who joined the board in 2017.

I would also like to thank all those involved with our School: the parents for their ongoing confidence in us, the staff for their tireless dedication and the volunteers and friends of the School for their support. It is a privilege to be a part of this community and organisation, and we look to the future with renewed optimism and resolve.

Mr C Morgan-Jones Chair of Governors

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HEREFORD CATHEDRAL SCHOOL Annual Report and Financial Statements Year ended 31 July 2025

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025

The Governors present the Report of the Trustees for the year ended 31 July 2025, which incorporates the Strategic Report under the Companies Act.

REFERENCE AND ADMINISTRATIVE INFORMATION

The regulating document of Hereford Cathedral School is a Charity Commission Scheme made under the Endowed Schools Acts on 26 June 1893, with the latest amendment in 1987. The School is a registered charity, number 518889. The registered company number is 2081261. The governing instrument is the Memorandum and Articles of Association, adopted on 5 December 1986.

The charitable company does not have a share capital, but the directors, as members, have undertaken to contribute a sum not exceeding one pound each in the event of a deficiency on winding up the company’s affairs.

Senior School and Registered Office: Junior School: Old Deanery 28 Castle Street The Cathedral Close Hereford Hereford HR1 2NW HR1 2NG

www.herefordcs.com

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational Management

Governors, as the charity trustees, are legally responsible for the overall management and control of the School. The governors determine the general policy, as well as being responsible for the strategic management and control of the business activities of the School. Meetings of the full governing body are held at least once a term, with occasional extra meetings called if matters arise of a sufficiently serious nature.

This year marked Dr Michael Gray’s fourth year in-post as Headmaster of the School and he has continued to move the School forward with ambition and drive and delivering his clear strategic objectives. At the heart of his approach has been ensuring that all pupils leave the School ‘real-world ready’ and equipped for a rapidly changing world. This continues to evolve as the world changes at such a fast-paced and reflects the dynamic and agile approach of the School. An integral part of this has been the introduction of the digital strategy which saw the extremely successful implementation of the bringyour-own-device digital strategy. He has also led the School’s international work and the signing of an important partnership in China which has enabled HCS to franchise its brand across programmes in Nanjing Province. We are also excited to be partnering with Savannah Creek Development Company to bring Rwanda’s first British curriculum to Kigali under the auspices of Hereford International School, Kigali.

The operational management of the School is delegated to the Headmaster, Head of the Junior School and their respective Senior Leadership Teams (SLT) and together this group are the key management personnel. Delivery of the School’s charitable vision and purpose is primarily dependent on our key management personnel. The Executive Headmaster, Principal and the Chief Operating Officer attend the meetings of the governing body’s committees, which discuss issues for forwarding to the full governors’ meetings. The main governor committees are Finance, Education, Safeguarding and General Purposes. In addition to these meetings, governors and senior leaders also attend meetings covering Health & Safety, Investments and Salaries and Personnel. Mr W Hanks is the designated governor for Safeguarding issues.

The School recognises the National Education Union (NEU) through an informal agreement for the purposes of pay, holidays and working hours. A Joint Negotiation Committee acts as the bargaining unit (all teachers). Remuneration policy and budget is set by the governors, with the objective of providing appropriate incentives to encourage enhanced performance and of rewarding fairly and responsibly the individual contributions to the School’s success. The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools and the maintained sector to ensure that the School remains sensitive to the broader issues of pay and employment conditions elsewhere.

We aim to recruit, subject to experience, at the lower to medium point on the pay scale, recognising that staff costs are the largest single element of our charitable expenditure.

Recruitment and Training of Governors

The recruitment of new governors is based on a pre-determined set of skills and competences across a range of disciplines such as: education, finance, law, religion, land & buildings and business. The policy of the governors is to maintain a

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HEREFORD CATHEDRAL SCHOOL Annual Report and Financial Statements Year ended 31 July 2025

balanced and diverse board, with a broad experience base, covering all of the topics outlined above. New governors are inducted into the workings of the School, including governing body policy and procedures, at an induction workshop specially organised for them by the Executive Headmaster, the Principal and Clerk. The new governors also attend specialist external and/or online courses on the role and responsibilities of charity trustees. All new governors are given access to the Governor’s Handbook and library of resources, which seeks to assist in the understanding of the complex issues faced by a new charity trustee and non-executive director.

In addition, all new governors usually sit on each of the sub-committees in their first year in order to understand all aspects of the School’s business. Governors attend external trustee training and information courses designed to keep them informed and updated on current issues in the sector and regulatory requirements.

Employment Policy

The School is an equal opportunities employer. Full and fair consideration is given to job applications from disabled persons and due consideration is given to their training and employment needs. All employees are appointed in accordance with safer recruiting guidelines and particular emphasis and attention is given to safeguarding and background checks.

Consultation with employees, or their representatives, has continued at all levels with the aim of taking the views of employees into account when decisions are made that are likely to affect their interests. Employees are made aware of the financial and economic performance of the School at an annual briefing.

Communication with employees continues through normal management channels in a variety of forms and also through exceptional channels to apprise staff of current issues.

Investment policy and objectives

The School’s investment objectives are to balance the current and future needs by:

To meet these objectives, the School’s investments as a whole are managed on a total return basis, maintaining diversification across a range of asset classes in order to produce an appropriate balance between risk and return. In line with this approach, the Charity Commission has been made aware of the School’s intention to invest permanent endowments to maximise total return and to make available an appropriate proportion of the total return for expenditure each year. The investment strategy and policy are monitored by the Investment Committee which reports to the Full Governing Board as is investment performance, which is reported below, within the Strategic Report.

CHARITY TRUSTEES AND COMMITTEE MEMBERS

The governors are elected at a full governors’ meeting, and their appointment is confirmed at the next AGM. The Dean and Chapter (D&C) of Hereford Cathedral have the right to recommend up to one quarter of the total number of governors. One third of the governors, or if their number is not three or a multiple of three, then the number nearest to, retire from office at each Annual General Meeting. They can be re-elected. The governors had no interests which were required to be disclosed under the Companies Act 2006. Unless otherwise determined by the company by ordinary resolution, the number of governors shall not be less than 10, or more than 18. The governors of the School, who are also the charity trustees and the directors of the company who served during the year and up to the date of approving these financial statements, were:

Elected Members

Mr C Jones (Morgan-Jones) (Chairman) Mr A Teale Mr W Hanks Mr J Sheldon Mr J Preece (resigned 17 August 2025) Mrs J Millar Mrs J Deval-Reed The Reverend Prebendary N Lowton Mr J Storey Mrs L Atkins Mr D Snow (appointed 10 October 2024) Dr S Hitt (appointed 18 September 2024) Mr J Palmer (appointed 28 March 2025) Mr T Evans (appointed 1 May 2025) Mrs Michele Lewis (appointed 18 August 2025)

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HEREFORD CATHEDRAL SCHOOL Annual Report and Financial Statements Year ended 31 July 2025

D&C Nominated Members

Mr W Hanks Canon A Teale

The Reverend Prebendary N Lowton

Officers

Dr M E P Gray Executive Headmaster / CEO Mr C Dawson Principal (joined 1 September 2025) Mrs H Hoffmann Head of the Junior School (resigned 31 August 2025) Mr P Jerram Chief Operating Officer, Secretary and Clerk to the Governors Mrs M Cussans Secretary and Clerk to the Governors (appointed 1[st] January 2025)

Finance Committee

Mrs J Millar (Chair) Mr W Hanks Mr D Ashcroft Mr J Sheldon Mr J Preece Mr D Snow Dr S Hitt Mr J Palmer Mrs M Lewis In attendance: Executive Headmaster, Principal, COO, Finance Manager, Chairman of the Board.

Education Committee

Mrs J Deval-Reed (Chair) Canon A Teale The Reverend Prebendary N Lowton Mr J Storey Mrs L Atkins Mr J Sheldon Mr W Hanks

Mrs M Lewis In attendance: Executive Headmaster, Principal, Deputy Head (Academic), Deputy Head (Junior School), Head of Pre Prep, Chairman of the Board.

General Purposes Committee

Mr J Preece (Chairman) Mr J Sheldon Mrs J Millar Mr T Evans In attendance: Executive Headmaster, Principal, COO, Chairman of the Board.

Safeguarding Committee (Established 25 May 2022)

Mr W Hanks (Chairman) Mrs J Deval-Reed The Reverend Prebendary N Lowton Mr J Storey Mrs L Atkins

In attendance: Executive Headmaster, Principal, Senior Deputy Head, Deputy Head (Junior School), Head of Pre Prep, Chairman of the Board.

Investment Committee

Mr J Sheldon (Chairman) Mrs J Millar Mr D Snow Mr J Palmer

In attendance: Executive Headmaster, COO, Finance Manager, Chairman of the Board.

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HEREFORD CATHEDRAL SCHOOL Annual Report and Financial Statements Year ended 31 July 2025

SUBSIDIARIES

During the financial year, the School had one trading wholly-owned subsidiary, HCS Educational Services Limited. Hereford International School Ltd was dormant during the year.

SOLICITORS

Humfrys & Symonds St John’s Chambers St John Street Hereford HR1 2NG Harrison Clark Rickerbys Ltd Ellenborough House Wellington Street Cheltenham GL50 1YD

BANK AUDITOR Lloyds Bank Plc 6-8 High Street 4[[th]] Floor Hereford HR1 2AE

Crowe U.K. LLP 4[[th]] Floor St James House St James’ Square Cheltenham GL50 3PR

INVESTMENT MANAGERS

Kingfurness Brewin Dolphin Investec/Rathbones (appointed October 2025) (ended October 2025) (ended October 2025) House 32 St James’ House 30 Gresham Street Broadway St James’ Square London 35 Broad St Cheltenham EC2V 7QP Hereford GL50 3PR HR4 9AR

PRINCIPAL RISKS AND UNCERTAINTIES

Risk Management

The governors undertake a full review of risk management procedures each year, with each sub-committee tasked with assessing and rating risks relevant to the areas for which they hold responsibility. The risks faced by the School include political and economic in light of increased macro-economic pressures, buildings (on-going maintenance and health and safety considerations), demographic changes and recruitment and retention of high-quality staff and pupils. Issues are identified and discussed with the specific purpose of reducing risk in all areas, with the findings reviewed annually at full Board level.

The other key control mechanisms used to mitigate risk wherever possible are:

Principal Risks

The 2024 Budget which saw the introduction of VAT onto independent school fees, increased employers’ National Insurance contributions and removal of business rate relief for schools in England represents a risk to the affordability of the fees and in particular, in reducing the socio-economic breadth of families which can afford to send their children to the School. Geopolitical concerns continue to provide challenges but there continue to be opportunities within international education.

The affordability of the fees, which have increased this year, remains something of which the Board is eminently mindful. The Board continues to look to mitigate that risk by diversifying income and generating non-fee sources of income through HCS Educational Services Ltd. Additionally, the school operates in a way which seeks to be financially prudent and to operate as efficiently as possible to maximise fee affordability.

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HEREFORD CATHEDRAL SCHOOL Annual Report and Financial Statements Year ended 31 July 2025

Political and economic risks remain and the Board and School are taking steps to mitigate these:

Uncertainty

“There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don't know. But there are also unknown unknowns. There are things we don't know we don't know.” - Donald Rumsfeld

Governors and the SLT are fully aware of Donald Rumsfeld’s “known unknowns” and “unknown unknowns”. They endeavour to understand the implications of uncertainty by keeping abreast of developments within the sector through regular networking meetings, ongoing training and the use of consultants where appropriate.

Insofar as the governors are aware:

OBJECTIVES

The charitable objects of the School are to promote the advancement of education by acquiring, establishing, providing, conducting and carrying on schools in which boys and girls of all sections of the community may receive a sound general education (including religious instruction in accordance with the doctrines of the Church of England). The charitable company’s principal activity continues to be the running of the Hereford Cathedral Senior and Junior Schools.

It is the policy of the School to attain the highest academic standards for our pupils and to encourage each individual to achieve his or her highest potential intellectually, culturally and physically. The School welcomes pupils from all backgrounds. Entrance interviews and assessments are undertaken to satisfy ourselves and parents that potential pupils can cope with the pace of learning and benefit from the education provided. An individual’s economic status, gender, ethnicity, race, religion or disability do not form part of the assessment process.

AIMS

The School’s aims and the intended impact of its activities are:

The School was extremely successful in fulfilling its aims and ensuring that it provided a very high quality and holistic education, which maximised opportunities and provided a real breadth of educational experience.

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HEREFORD CATHEDRAL SCHOOL Annual Report and Financial Statements Year ended 31 July 2025

REPORT ON OBJECTIVES TO DATE

Governors and the SLT placed an emphasis on a new set of Strategic Objectives, focussed on the delivery of Vision 2030. The main objectives for the period were:

STRATEGIES TO ACHIEVE OBJECTIVES IN 2024/25

The various governor committees work together to assess the needs of the School from an educational, charitable and financial perspective.

The governors continued to support the SLT to build links and encourage community access of the School facilities for educational purposes and the delivery of outreach programmes.

GRANT-MAKING POLICY

The governors' policy, in line with other independent schools, is to award scholarships on the basis of the individual's academic, musical, dramatic, artistic and sporting ability. Bursaries and Fees Assistance are awarded to individuals who qualify under a stringent means-testing system but are not required to be academic high-flyers. Hardship bursaries are also awarded, usually of a short-term duration, to families facing immediate financial crises and who would otherwise be required to withdraw their children from the School.

PLANS FOR FUTURE PERIODS

The future success of the School is obviously linked to a high demand for places at the School, which in-turn is achieved by providing the highest quality of education. There has been a dynamic momentum over the past year as a result of the very successful implementation of several new strategies and initiatives. The academic year 2025-26 will not only see these embedded but strengthened through the development of Quay House, the installation of a music recording studio, relocation of the Nursery, and the development of international opportunities for income diversification. The School’s international reputation is also growing, through the success of its boarding and considerable work taking place as it continues its work on its overseas franchise.

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HEREFORD CATHEDRAL SCHOOL Annual Report and Financial Statements Year ended 31 July 2025

Governors and Senior Leadership are continuing to develop a medium and long-term strategy for the School and have taken decisive steps towards increasing the number of international students which will help secure the future of the School for generations to come. The governors have replaced Vision 2030 with Q2, which focuses on educational excellence, strong admissions and business success.

OVERVIEW OF 2024/25

PUBLIC BENEFIT – FEES ASSISTANCE

The School offers substantial financial provision, funding a significant number of transformational bursaries and provides a greater ratio of bursaries to scholarships within its recruitment and charitable strategies, including free places to some individuals. The school seeks to provide approximately 10% of gross fee income in the form of scholarship and bursary awards. Bursaries and scholarships awarded in 2024/25 were 7.5% and 1.5% of fee income, respectively. Bursaries were awarded to 11% of pupils in the Senior School and included 26 at 75% and above, of which there were 7 100% awards. The average fee assistance award was 62%. Special scholarships are also awarded to children of military personnel serving within the Hereford Garrison.

The School prospectus and website includes reference to the availability of Fees Assistance; “Entrance Bursaries” are only awarded after undertaking robust means testing procedures, usually including home visits and interviews of all parents by an independent company. In assessing means we take a wide range of factors into consideration which include family net worth, including: income, investment and savings, and family circumstances such as dependants and siblings. This enables wider access to the school for those who would not otherwise be able to meet the full fee. “Hardship Bursaries” are not always subject to the same assessment procedure and are normally awarded to pupils who have been at the School for at least 12 months (although exceptions may be made in the event of extraordinary circumstances, e.g. death of a parent). These are generally short-term awards to allow parents time to resolve their financial difficulties.

The School continues to support Ukrainian children following the Ukraine hardship bursary fund which was set up in 2022. The scheme was supported by a number of generous parents and other benefactors with the aim of supporting those who had relocated due to the war in their home country.

PUBLIC BENEFIT – OTHER

Local groups and clubs usually have the opportunity to hire and use the School’s facilities, including the sports hall, the Powell Theatre, St David’s Hall, playing fields and minibuses which are used for a variety of sporting, educational and music activities within the local community. The CCF partnership with a local academy school continues and provides wonderful opportunities for local children to develop their skills and broaden their opportunities. The School provides a Cadet in support of the Lord Lieutenant and their civic duties.

The School hosts and sponsors sporting events involving local primary and secondary schools, including: the County Primary Schools Football Tournament and a variety of county schools’ events. Our sports pitches are used weekly by local community clubs, the School also continues to work closely with the County Cricket establishment.

The School continues to support the local community with outreach work in the state education sector, particularly in musical activities. The School has been awarded the status of becoming a CyberFirst school which reflects its work within the community around supporting Computer Science and cyber security. Staff deliver workshops and specialist lessons in other school. Pupils volunteer as part of the DoE scheme and the 6[th] Form HCS Diploma. The Junior School partners with Umubano Academy in Kigali as a cultural knowledge exchange.

Music outreach includes a new Music Makers series for aspiring musicians and two community choirs. The School’s music department brings together a number of the County’s primary schools for a number of large-scale events: such as a Primary Schools’ Advent carol service (200 children) and a major choral & orchestral concert in the Spring Term (200 children).

The School supports members of staff who volunteer to sit on local boards of governors or trustees across educational and other not-for-profit organisations. This involves releasing them from their duties to attend meetings and fulfil other commitments in their capacities as governors or trustees. Other members of staff help at local schools and academies, particularly with exam moderation and PGCE teacher placements. The school also supports those wishing to stand for public office or supporting the democratic process. The School’s activities and partnerships are recorded in the Schools Together website: www.schoolstogether.org. The School’s Charity Committee continues to be busy raising money for various worthwhile causes locally and nationally.

In drafting the above statements, the governors have complied with the duty in Section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.

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HEREFORD CATHEDRAL SCHOOL Annual Report and Financial Statements Year ended 31 July 2025

SCHOOL PERFORMANCE

Hereford Cathedral School achieved excellent A Level results and combined with its GCSE, it once again places the School as the highest performing School or College in the County and it remains a highly respected and well established coeducational HMC School.

This year saw record-breaking GCSE results for the Year 11 cohort. A third of grades achieved 9-8, over half of all grades were 9-7 and over three quarters were 9-6. The School had a 100% pass rate in English Language and Literature, as well as a 99.5% pass rate in Maths and Science. This compares extraordinarily well against national data.

FUNDRAISING PERFORMANCE

2024/25 saw significant progress made in the School's on-going work of raising voluntary funding and building a legacy/bequest stream. A Bursary Fund Appeal was launched in Feb 2020 and this is promoted promoting to alumni and other benefactors through social media, in person conversations and through the annual alumni magazine. In addition, the Executive Headmaster – who leads on development – works to build relationships with charitable trusts and foundations to obtain grant funding wherever possible.

For the Academic year 2024/25 the following voluntary income has been generated:

The School is particularly grateful to the Mosawi Foundation, the Tabor Fund; The Julian Bewick Educational Trust, the French Huguenot Church, the Old Herefordian Fund, the No 1 Fund for Choristers and one anonymous donor for their continued support.

The School raises funds either through applications to external grant making bodies or through appeals to alumni, benefactors and parents. Funds raised are most typically used for fee support for pupils. The School does not use external or “professional” fundraisers. The School is a member of The Institute for Development Professional in Education (IDPE) which is a body that advises members on best practice in fundraising and compliance with fundraising regulations. The charity monitors its fundraising activities of any person acting on its behalf, through regular meetings with the Executive Headmaster and termly reports to the governors. There is a governor with specific focus on Fundraising compliance as part of their role.

The governors do not know of any failure by the charity, or of any person acting on its behalf, to comply with fundraising standards. The charity received no complaints relating to its fundraising activities. The charity protects vulnerable people and other members of the public from behaviour which; is unreasonable intrusion on a person’s privacy, is unreasonable persistent, places undue pressure on a person to give money. The charity does not approach members of the public for fundraising. All applications relating to pupils are confidential and data is handled accordingly. The School raised funds from alumni and parents in the last year; these people have an existing relationship with the School. The School does not undertake cold calling, telephone campaigns or employ any third parties to raise funds on our behalf. The School, through its Executive Headmaster, is aware of the duty of care when raising money from former pupils and parents who might be classed as vulnerable and of the need to be sensitive; not invade privacy or be unreasonably persistent. The Executive Headmaster ensures that he aware of, compliant with and sensitive to, the letter and spirit of regulatory guidelines, legislation and best practice in our fundraising.

The governors are aware of the increasing regulations with regards to fundraising and are keen to adopt an ethical and transparent approach in this respect.

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HEREFORD CATHEDRAL SCHOOL Annual Report and Financial Statements Year ended 31 July 2025

FINANCIAL REVIEW

The Consolidated Statement of Financial Activities for the year is set out on page 19. The financial statements comply with the applicable Accounting Standards in the United Kingdom, including the Statement of Recommended Practice applicable to charities (Charities SORP 2015 (FRS 102)).

Gross Fee income increased by £463,890 (3.8%) during the year.

The Bursary worked hard with parents to manage fee payments, flexibility was offered over timing and ultimately a high percentage of the fees due were paid in the period. Fee debt has continued to be well managed, although debtor days have increased from 4.0 to 7.5 reflecting the cost-of-living crisis in the wider economy.

The School’s financial position continues to be strong. The surplus for the year (before transfers between funds and losses on investment assets) amounted to £1.2m (2024: £0.72m). The surplus for the year after transfers between funds and losses on investment assets amounted to £1.22m (2024: £0.83m) and has been transferred to reserves. Total funds amounted to £9.6m (2024: £8.38m). The majority of the increase on 2024 is due to the deferment of major repairs and improvements until 25/26 in order to maximise VAT recoverability. The Board continue to be alert to the threats and pressures on the School and wider economy; the strong closing position gives the Board confidence that the School was, and remains, a “going concern”.

INVESTMENT POLICY AND PERFORMANCE

The governors' investment powers are set out in the regulating document.

Governors have continued to manage the investments in accordance with this policy and returns are considered to be satisfactory in view of the performance of the stock market during the year.

In common with other independent schools, the governors have invested substantial sums into School buildings in recent years and have a continuing programme of refurbishment, development and investment to maintain excellent teaching facilities for our pupils. The “free reserves” as at 31 July 2025 consist of unrestricted net current assets as shown in note 21 amounting to £3.16m (2024: (£3.82m)), with the variance between years largely due to reducing “Fees in Advance”. The governors continue to invest in boarding and technology as part of the long-term strategy to increase pupil numbers and innovate teaching and learning and therefore do not consider it appropriate at this time to place a great deal of emphasis on this figure. Rather, the figure illustrates the extent of the investment in our School, which is a common practice by independent schools which have to finance their own capital investment plans. The closing value of our tangible assets, property, plant and equipment, was £8.9m (2024: £9.3m).

Despite the strength of the charity’s balance sheet, the stable cash flow, the on-going popularity and academic success of our School, we will look to build our free cash reserves over the next three years to increase our resilience during these uncertain times.

The School had total reserves of £9.6m at the year-end (2024: £8.38m), of which £1.43m is restricted (2024: £1.39m), £0.67m is endowed (2024: £0.65m), leaving £7.5m of unrestricted funds (2024: £6.34m).

The governors recognise that the level of reserves fluctuates during periods of investment in the School estate and the arrangements with our bank are in place to provide an adequate “safety net” should it be required.

The School’s long-term investments were managed by two investment companies. At the year-end the total value of the investment portfolio was £1.52m (2024: £1.47m). The overall investment return amounted to £59,469 (2024: £126,256) (calculated as the net investment gain of £49,213 plus dividends and interest received of £25,054 less management fees of £14,798). This year’s results validate the objective to hold these investments in the long-term and accept short-term fluctuations in value.

Under the total return accounting basis, it is the governors’ policy to extract as income one tuition fee. This fee is used to support the bursary of the “Knapton Music Scholar” thanks to the generosity of the benefactors: Miss Barbara Knapton and Mrs Kathleen Cavill. The governors will keep the level of income withdrawn under review to balance the need and interests of current and future beneficiaries of the School’s activities.

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HEREFORD CATHEDRAL SCHOOL Annual Report and Financial Statements Year ended 31 July 2025

GOING CONCERN

The Board has paid due attention to the advice and modelling of the School’s employees, the SLT and professional advisors including the School’s auditors and consider that the School remains financially viable.

A range of five-year scenarios were modelled and refined, with varying degrees of stress on pupil numbers, fee recovery, debt, operational costs and a range of other factors. Performance against budget has been steady, and the School emerged from the pandemic with strong growth. Additional emphasis and resources are being allocated to marketing and the management and Board remain alert to the possibility of further structural changes based on the budget projections.

Political threats, particularly around the Government’s fiscal policy are the subject of regular review by the SLT and the Board. It is considered that the School’s cash and investments will protect it from unexpected sudden shocks, giving time for structural adjustments, should these prove necessary.

The School’s bankers, Lloyds, have continued to be fully engaged and remain supportive of the School’s aspirations.

The Trustees Annual Report is approved by the Board of Governors and the Strategic Report (included therein) is approved by the Board of Governors in their capacity as directors at their meeting on 10 December 2025 and signed on its behalf by: AM pe Mr C Morgan-Jones Director

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HEREFORD CATHEDRAL SCHOOL Annual Report and Financial Statements Year ended 31 July 2025

STATEMENT OF GOVERNORS’ RESPONSIBILITIES

The Governors (who are also the directors of the charity for purposes of company law) are responsible for preparing the Governors’ annual 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 Governors 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 its incoming resources and application of resources, including its income and expenditure, for that period. In preparing those financial statements, governors are required to:

The Governors are responsible for keeping proper accounting records that 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 requirements of 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.

Approved by the order of the Board of Governors on 10 December 2025 and signed on its behalf by: AM pe

Mr C Morgan-Jones Director

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HEREFORD CATHEDRAL SCHOOL

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEREFORD CATHEDRAL SCHOOL

Opinion

We have audited the financial statements of Hereford Cathedral School (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 July 2025 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the School balance sheet, the Consolidated 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 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 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 Governors' 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 Group's or the parent 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 Governors with respect to going concern are described in the relevant sections of this report.

Page 15

HEREFORD CATHEDRAL SCHOOL

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEREFORD CATHEDRAL SCHOOL (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Governors 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 Governors' responsibilities statement, the Governors are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Governors 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 Governors are responsible for assessing the Group's and the parent 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 Governors either intend to liquidate the Group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Page 16

HEREFORD CATHEDRAL SCHOOL

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEREFORD CATHEDRAL SCHOOL (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 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 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:

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group 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 Companies Act 2006, taxation legislation, 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 charitable company's and the group's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014.

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 Bursaries, Scholarships and other discounts and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance & Resources. Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, designing audit procedures over Bursaries, Scholarships and other discounts, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Independent schools Inspectorate and Ofsted and reading minutes of meetings of those charged with governance.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.

Page 17

HEREFORD CATHEDRAL SCHOOL

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEREFORD CATHEDRAL SCHOOL (CONTINUED)

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 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 charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP

Guy Biggin (Senior statutory auditor) Statutory Auditor Fourth Floor St James House St James Square Cheltenham GL50 3PR

Date: 05 March 2026

Crowe U.K. LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 18

HEREFORD CATHEDRAL SCHOOL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2025

Note
Income and
endowments from:
Donations and legacies
Charitable activities
4
Other trading activities
5
Investments
6
Total income and
endowments
Expenditure on:
Raising funds:
Costs of rainsing
voluntary income
7
Finance costs
8
Charitable activities:
9
. Other charitable
activities
Total expenditure
Net income before
net gains on
investments
Gains/(losses) on
investments
Net income
Transfers between
funds
19
Net movement in
funds		 Endowment
funds
2025
£
-
-
-
10,694
10,694
5,994
-
-
5,994
4,700
34,574
39,274
(10,694)
28,580		 Restricted
funds
2025
£
318,705
-
-
14,361
333,066
6,957
-
306,016
312,973
20,093
14,639
34,732
-
34,732		 Unrestricted
and
designated
funds
2025
£
17,165
12,852,747
135,139
285,380
13,290,431
82,958
257,880
11,799,776
12,140,614
1,149,817
-
1,149,817
10,694
1,160,511		 Total
funds
2025
£
335,870
12,852,747
135,139
310,435
13,634,191
95,909
257,880
12,105,792
12,459,581
1,174,610
49,213
1,223,823
-
1,223,823		 Total
funds
2024
£
602,723
12,616,677
92,833
67,028
13,379,261
136,581
143,938
12,381,490
12,662,009
717,252
114,186
831,438
-
831,438

Page 19

HEREFORD CATHEDRAL SCHOOL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

Note
Reconciliation of
funds:
Total funds brought
forward
Net movement in funds
Total funds carried
forward		 Endowment
funds
2025
£
645,759
28,580
674,339		 Restricted
funds
2025
£
1,394,308
34,732
1,429,040		 Unrestricted
funds
2025
£
6,340,316
1,160,511
7,500,827		 Total
funds
2025
£
8,380,383
1,223,823
9,604,206		 Total
funds
2024
£
7,548,945
831,438
8,380,383

The notes on pages 24 to 54 form part of these financial statements.

Page 20

HEREFORD CATHEDRAL SCHOOL

CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2025

2025 2025 2024 2024
Note £ £
Fixed assets
Tangible assets 13 8,936,254 9,323,354
Investments 14 1,518,732 1,473,423
10,454,986 10,796,777
Current assets
Debtors 15 452,937 302,383
Cash at bank and in hand 6,406,689 7,973,557
6,859,626 8,275,940
Current liabilities
Creditors: amounts falling due within one
year 16 (3,118,517) (3,889,565)
Net current assets 3,741,109 4,386,375
Total assets less current liabilities 14,196,095 15,183,152
Creditors: amounts falling due after more
than one year 17 (4,591,889) (6,802,769)
Total net assets 9,604,206 8,380,383
School funds
Endowment funds 19 674,339 645,759
Restricted funds 19 1,429,040 1,394,308
Unrestricted funds
Designated funds 19 34,017 28,333
General funds 19 7,466,810 6,311,983
Total unrestricted funds 19 7,500,827 6,340,316
Total funds 9,604,206 8,380,383

The financial statements were approved and authorised for issue by the Governors and signed on their behalf by: Christian Morgan-Jones AA fo Jacqueline Millar a Governor Governor Date: 10 December 2025

The notes on pages 24 to 54 form part of these financial statements.

Page 21

HEREFORD CATHEDRAL SCHOOL

SCHOOL BALANCE SHEET AS AT 31 JULY 2025

2025 2025 2024 2024
Note £ £
Fixed assets
Tangible assets 13 8,850,343 9,215,961
Investments 14 1,518,734 1,473,425
10,369,077 10,689,386
Current assets
Debtors 15 553,004 386,117
Cash at bank and in hand 6,383,422 7,959,215
6,936,426 8,345,332
Current liabilities
Creditors: amounts falling due within one
year 16 (3,109,408) (3,842,629)
Net current assets 3,827,018 4,502,703
Total assets less current liabilities 14,196,095 15,192,089
Creditors: amounts falling due after more
than one year 17 (4,591,889) (6,802,769)
Total net assets 9,604,206 8,389,320
Charity funds
Endowment funds 19 674,339 645,759
Restricted funds 19 1,429,040 1,367,081
Unrestricted funds
Designated funds 19 34,017 28,333
General funds 19 7,466,810 6,348,147
Total unrestricted funds 19 7,500,827 6,376,480
Total funds 9,604,206 8,389,320

The financial statements were approved and authorised for issue by the Governors and signed on their behalf by:

Christian Morgan-Jones Governor Date: 10 December 2025

Lorraine Michaela Atkins Governor

The notes on pages 24 to 54 form part of these financial statements.

Page 22

HEREFORD CATHEDRAL SCHOOL

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2025

Note
Cash flows from operating activities
Net cash used in operating activities
23
Cash flows from investing activities
Dividend income
Investment income
Interest on loans
Acquisition of fixed asset investments
Purchase of tangible fixed assets
Proceeds from sale of fixed assets
Net cash used in investing activities
Cash flows from financing activities
Advance fees receipts from new contracts
Advance fees utilised during the year
Repayments of borrowing
Net cash (used in)/provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
24
The notes on pages 24 to 54 form part of these financial statements		 2025
£
1,179,518
19,056
291,381
(91,031)
3,904
(245,115)
11,312
(10,493)
614,279
(2,845,818)
(504,354)
(2,735,893)
(1,566,868)
7,973,557
6,406,689		 2024
£
1,535,944
21,044
45,984
(124,038)
2,090
(1,241,933)
502
(1,296,351)
7,315,924
(352,834)
(335,732)
6,627,358
6,866,951
1,106,606
7,973,557

Page 23

HEREFORD CATHEDRAL SCHOOL

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

1. General information

Hereford Cathedral School is a charitable company limited by guarantee. The School is registered with the Charity Commission England and Wales (registered no: 518889). The charity was incorporated as a company limited by guarantee with Companies House England and Wales (registered no: 02081261). Its registered and principal office is Old Deanery, The Cathedral Close, Hereford, Herefordshire, HR1 2NG.

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), the Companies Act 2006 and the Charities Act 2011.

Hereford Cathedral School meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the School and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The School has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own treatment of financial activities in these financial statement.

2.2 Basis of consolidation

These financial statements consolidate the results of the School and the wholly owned subsidiary, HCS Educational Services Limited. All intragroup transactions are fully eliminated on consolidation.

The School has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

2.3 Going concern

These financial statements have been prepared on the going concern basis, which the governors consider to be appropriate as a result of projections prepared, having reviewed the funding facilities available to the School together with the expected ongoing demand for places and the School's future projected cash flows. The governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainty's over the School's financial viability and accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the governors' responsibilities on page 4.

2.4 Taxation

As a charity the company is generally exempt from the corporation tax on income it receives. Although this exemption does not normally extend to trading income the company benefits from a concession, which also exempts such income from taxation, as the trade carried out is part of the primary purpose of the charity i.e. provision of education.

Page 24

HEREFORD CATHEDRAL SCHOOL

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

2. Accounting policies (continued)

2.5 Income

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

Fees consist of charges for the school year, less scholarships, bursaries and allowances granted by the School. Fees receivable and charges for services and use of premises, are accounted for in the period in which the service is provided.

To secure a place at the School, a registration fee is paid by all pupils, both domestic and international. This sum is non- refundable and part of the non-refundable sum includes an element which goes towards the HCS Charitable Bursary Scheme. The HCS Charitable Bursary Scheme is used to support pupils who would not otherwise be able to access education at an independent school. As the fee is non-refundable, the income is recognised in the Statement of Financial Position upon receipt of the funds.

Donations subject to specific wishes of the donors are carried to relevant restricted funds. Any donations received for the general purposes of the School are credited to "Unrestricted Funds". Donations are accounted for on receipt.

All investment income is credited according to the date of receipt into the investment cash account.

2.6 Expenditure

Expenditure is accounted for on an accruals basis. Certain expenditure is apportioned to cost categories based on the estimated amount attributable to the activity in the year. Irrecoverable VAT is included with the item of expense to which it relates. Support costs are those costs incurred in directly administering school operations as an educational establishment.

Governance costs comprise the costs of running the school, including strategic planning (for its future development), also external audit, any legal advice for the governors, and all the costs of complying with constitutional and statutory requirements, such as costs of governors' meetings and of preparing statutory accounts and satisfying public accountability.

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

Charitable activities

Charitable activities include expenditure on providing education and include both direct costs and support costs relating to the activity

Allocation and apportionment of support costs

Support costs include central functions and are allocated to activity cost categorised on a basis consistent with the use of resources e.g. staff costs by the time spent and other costs by their usage

2.7 Interest receivable

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

Page 25

HEREFORD CATHEDRAL SCHOOL

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

2. Accounting policies (continued)

2.8 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

The School decided to take advantage of the transition option under FRS 102 to accept the property revaluation done in 2016 as deemed cost.

Freehold Property is depreciated between 1% and 10% each year. Land is not depreciated. The nondepreciable land element of the Freehold Property has been deemed to be 30% of the full cost, with depreciation being charged on the remaining 70%.

Leasehold property improvements are depreciated over the shorter of the lease term or the expected useful life of the asset.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the other assets on the following bases:

Motor vehicles - 7 years - Fixtures and fittings 5 - 20 years - Computer equipment 3 - 5 years

2.9 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 Consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

Investments held as fixed assets are shown at cost less provision for impairment.

2.10 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.

2.11 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.

Page 26

HEREFORD CATHEDRAL SCHOOL

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

2. Accounting policies (continued)

2.12 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.

Advance fees

Fees paid in advance are included in creditors and released to the Statement of Financial Activities as they fall due.

Deposits

The governors have reviewed the contract terms under which pupil fee deposits are held by the School. Although under normal circumstances these will be repaid in future years when the pupils complete their education at the School, pupils can leave at earlier dates. The School does not therefore have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of deposits held at the reporting date has been included within current liabilities. The prior year pupil fee deposits balance has been similarly represented.

Termination benefits

Termination benefits are recognised immediately as an expense when committed to terminate the employment of an employee or to provide termination benefits.

2.13 Financial instruments

The Group 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.

2.14 Finance lease and hire purchase

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is shorter.

The interest element of these obligations is charged to the statement of financial activities over the relevant period. The capital element of the future payments is treated as a liability.

Rentals payable under operating leases are charged in the statement of financial activities on a straight line basis over the lease term.

Page 27

HEREFORD CATHEDRAL SCHOOL

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

2. Accounting policies (continued)

2.15 Pensions

The School has the following pension schemes in place:

Defined contribution pension schemes

Halifax Bank of Scotland Investment Service (HBOS) and Nest for non-teaching staff. Aviva, a defined contribution scheme, for teaching staff.

Defined benefit scheme

Retirement benefits to teaching staff of the School are provided by the Teachers’ Pension Scheme (‘TPS’). This is a defined benefit scheme, contracted out of the State Earnings Related Pension Scheme. TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the School in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective benefit method. As stated in Note 25, the TPS is a multi-employer scheme and the School is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions recognised as they become due each year.

All pension costs are charged against unrestricted funds in line with the associated staff costs.

2.16 Fund accounting

Unrestricted general funds are available for use at the discretion of the governors in furtherance of the general objectives of the school.

Restricted funds are those funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the school for particular purposes.

Permanent endowment arises where a donor intends the gift to be retained permanently for use by the School or for its financial benefits. Endowment funds cannot be expended but any interest earned can be used to further the general objectives of the school. The Philpotts Educational Charity was originally established as a Scholarship Fund but under a Ministry of Education Order of 1947, the Scheme was varied to allow income to be used for the benefit of the School generally. It can be invested on a Total Returns basis.

Page 28

HEREFORD CATHEDRAL SCHOOL

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

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

Useful economic lives of tangible assets

The annual depreciation charges for tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See Note 12 for the carrying amount of the tangible fixed assets and Note 2.8 for the useful lives for each class of fixed asset.

Impairment of debtors

The School makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See Note 14 for the net carrying amount of the debtors and associated impairment provision.

4. Income from charitable activities

Unrestricted
funds
2025
£
School fee income
11,488,956
Ancillary trading income
1,352,601
Entrance fees
11,190
12,852,747
Unrestricted
funds
2024
£
School fee income
11,162,468
Ancillary trading income
1,432,984
Entrance fees
21,225
12,616,677		 Total
funds
2025
£
11,488,956
1,352,601
11,190
12,852,747
Total
funds
2024
£
11,162,468
1,432,984
21,225
12,616,677

Page 29

HEREFORD CATHEDRAL SCHOOL

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

4. Income from charitable activities (continued)

School fee income
Gross fees
Less: Total bursaries, scholarships, allowances and discounts
Add: Bursaries paid from restricted funds		 2025
£
12,642,807
(1,436,640)
282,788
11,488,955		 2024
£
12,178,917
(1,320,234)
294,840
11,153,523

5. Income from other trading activities

Income from fundraising events

Unrestricted
funds
2025
£
Rent and hire of school facilities
48,965
Hire of sports hall
33,097
Other
13,077
Educational partnership
40,000
135,139
Unrestricted
funds
2024
£
Teacher release
320
Rent and hire of school facilities
18,798
Hire of sports hall
47,004
Other
6,711
Educational partnership
20,000
92,833		 Total
funds
2025
£
48,965
33,097
13,077
40,000
135,139
Total
funds
2024
£
320
18,798
47,004
6,711
20,000
92,833

10 December 2025

Page 30

HEREFORD CATHEDRAL SCHOOL

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

6. Investment income

Investment income
Investment income		 Endowment
funds
2025
£
10,694
Endowment
funds
2024
£
10,665		 Restricted
funds
2025
Unrestricted
funds
2025
£
£
14,361
285,380
Restricted
funds
2024
Unrestricted
funds
2024
£
£
15,460
40,903		 Total
funds
2025
£
310,435
Total
funds
2024
£
67,028

7. Expenditure on raising funds

Costs of raising voluntary income

Management fees
Generating donations - wages and salaries
Generating donations - NI
Generating donations - pension costs
Management fees
Generating donations - wages and salaries
Generating donations - NI
Generating donations - pension costs		 Endowment
funds
2025
£
5,994
-
-
-
5,994
Endowment
funds
2024
£
5,485
-
-
-
5,485		 Restricted
funds
2025
Unrestricted
funds
2025
£
£
6,957
-
-
70,249
-
6,597
-
6,112
6,957
82,958
Restricted
funds
2024
Unrestricted
funds
2024
£
£
8,569
-
-
104,120
-
9,348
-
9,059
8,569
122,527		 Total
funds
2025
£
12,951
70,249
6,597
6,112
95,909
Total
funds
2024
£
14,054
104,120
9,348
9,059
136,581

Page 31

HEREFORD CATHEDRAL SCHOOL

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

8. Financing costs

Fees in advance discount
Loan interest
Fees in advance discount
Loan interest
Analysis of expenditure by activities
Charitable activities
School trips and activities		 Unrestricted
funds
2025
£
166,849
91,031
257,880
Unrestricted
funds
2024
£
19,900
124,038
143,938
Activities
undertaken
directly
2025
Support
costs
2025
£
£
11,053,958
725,584
326,250
-
11,380,208
725,584		 Total
funds
2025
£
166,849
91,031
257,880
Total
funds
2024
£
19,900
124,038
143,938
Total
funds
2025
£
11,779,542
326,250
12,105,792

9. Analysis of expenditure by activities

Page 32

HEREFORD CATHEDRAL SCHOOL

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

9. Analysis of expenditure by activities (continued)

Charitable activities
School trips and activities		 Activities
undertaken
directly
2024
£
11,110,268
466,538
11,576,806		 Support
costs
2024
£
804,684
-
804,684		 Total
funds
2024
£
11,914,952
466,538
12,381,490

Analysis of support costs

Staff costs
Legal and professional fees
Insurance
Advertising and marketing
Other support costs
Staff costs
Legal and professional fees
Insurance
Advertising and marketing
Other support costs		 Activities
2025
£
407,555
52,695
142,202
58,097
65,035
725,584
Activities
2024
£
416,124
98,133
137,136
40,300
112,991
804,684		 Total
funds
2025
£
407,555
52,695
142,202
58,097
65,035
725,584
Total
funds
2024
£
416,124
98,133
137,136
40,300
112,991
804,684

Page 33

HEREFORD CATHEDRAL SCHOOL

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

10. Net income/expenditure

Fees payable to the School's auditor for the audit of the School's annual
accounts
Fees payable to the School's auditor in respect of:
All non-audit services not included above
Depreciation
Operating lease rentals - land and building
Operating lease rentals - equipment		 2025
£
21,080
17,908
620,899
326,034
23,829		 2024
£
24,456
9,144
650,801
325,476
106,078

11. Staff costs

Wages and salaries
Social security costs
Pension contributions		 Group
2025
£
6,103,182
631,147
1,015,315
7,749,644		 Group
2024
£
6,146,894
577,204
967,763
7,691,861		 School
2025
£
6,103,182
631,147
1,015,315
7,749,644		 School
2024
£
6,146,894
577,204
967,763
7,691,861

The Headmaster, Head of Junior School and Bursar are considered to be the key management personnel, along with the Senior Leadership Team. Aggregate employee-benefits of key management personnel totaled £1,023,157 during the year (2024: £1,025,178) .

During the year, there were termination payments made which amounted to £15,000 (2024: £82,273) . None were outstanding at the year-end (2024: £Nil).

The average number of persons employed by the School during the year was as follows:

Teaching and teaching support
Administration
Domestic and maintenance		 Group
2025
No.
133
39
50
222		 Group
2024
No.
138
37
49
224

Page 34

HEREFORD CATHEDRAL SCHOOL

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

11. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2025 2024
No. No.
In the band £60,001 - £70,000 3 2
In the band £70,001 - £80,000 1 2
In the band £80,001 - £90,000 1 1
In the band £90,001 - £100,000 1 -
In the band £130,001 - £140,000 - -
In the band £140,001 - £150,000 1 1

12. Governors' remuneration and expenses

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

During the year ended 31 July 2025, £1,344 of Governor expenses have been incurred (2024 - £NIL) .

Page 35

HEREFORD CATHEDRAL SCHOOL

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

13. Tangible fixed assets

Group

Cost or valuation
At 1 August 2024
Additions
Disposals
Transfers between classes
At 31 July 2025
Depreciation
At 1 August 2024
Charge for the year
On disposals
At 31 July 2025
Net book value
At 31 July 2025
At 31 July 2024		 Freehold
property
£
6,219,653
-
-
(108,118)
6,111,535
436,448
126,911
-
563,359
5,548,176
5,783,205		 Long-term
leasehold
property
£
4,077,036
106,831
(912)
77,650
4,260,605
1,680,460
140,012
-
1,820,472
2,440,133
2,396,576		 Short-term
leasehold
property
£
900,460
-
-
-
900,460
523,793
37,318
-
561,111
339,349
376,667		 Fixtures and
fittings
£
2,637,619
138,284
(61,225)
30,468
2,745,146
1,870,713
316,662
(50,825)
2,136,550
608,596
766,906		 Total
£
13,834,768
245,115
(62,137)
-
14,017,746
4,511,414
620,903
(50,825)
5,081,492
8,936,254
9,323,354

Page 36

HEREFORD CATHEDRAL SCHOOL

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

13. Tangible fixed assets (continued)

School

Cost or valuation
At 1 August 2024
Additions
Disposals
Transfers between classes
At 31 July 2025
Depreciation
At 1 August 2024
Charge for the year
On disposals
At 31 July 2025
Net book value
At 31 July 2025
At 31 July 2024		 Freehold
property
£
6,219,654
-
-
(108,118)
6,111,536
436,448
126,911
-
563,359
5,548,177
5,783,206		 Long-term
leasehold
property
£
4,077,035
106,831
(912)
77,650
4,260,604
1,680,460
140,012
-
1,820,472
2,440,132
2,396,575		 Short-term
leasehold
property
£
900,460
-
-
-
900,460
523,997
37,318
-
561,315
339,145
376,463		 Fixtures and
fittings
£
2,357,123
138,284
(61,225)
30,468
2,464,650
1,697,406
295,180
(50,825)
1,941,761
522,889
659,717		 Total
£
13,554,272
245,115
(62,137)
-
13,737,250
4,338,311
599,421
(50,825)
4,886,907
8,850,343
9,215,961

Page 37

HEREFORD CATHEDRAL SCHOOL

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

14. Fixed asset investments

Group
Cost or valuation
At 1 August 2024
Additions
Disposals
Revaluations
Movement in cash
At 31 July 2025
Net book value
At 31 July 2025
At 31 July 2024		 Philpotts
Educational
Charity
£
689,204
97,099
(95,568)
34,574
3,169
728,478
728,478
689,204		 Music
Bursary
Fund
£
412,585
490,552
(522,276)
(5,464)
21,780
397,177
397,177
412,585		 Bursary
Fund
£
371,634
220,948
(216,084)
20,103
(3,524)
393,077
393,077
371,634		 Total
£
1,473,423
808,599
(833,928)
49,213
21,425
1,518,732
1,518,732
1,473,423

Page 38

HEREFORD CATHEDRAL SCHOOL

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

14. Fixed asset investments (continued)

School
Cost or valuation
At 1 August 2024
Additions
Disposals
Revaluations
Movement in cash
At 31 July 2025
Net book value
At 31 July 2025
At 31 July 2024		 Investments
in
subsidiary
companies
£
2
-
-
-
-
2
2
2		 Philpotts
Educational
Charity
£
689,204
97,099
(95,568)
34,574
3,169
728,478
728,478
689,204		 Music
Bursary
Fund
£
412,585
490,552
(522,276)
(5,464)
21,780
397,177
397,177
412,585		 Bursary
Fund
£
371,634
220,948
(216,084)
20,103
(3,524)
393,077
393,077
371,634		 Total
£
1,473,425
808,599
(833,928)
49,213
21,425
1,518,734
1,518,734
1,473,425

Included within the Group's Fixed Assets investments is cash held of £126,717 (2024: £40,555) .

Principal subsidiaries

The following was a subsidiary undertaking of the School:

Name Class of Holding Included in Included in
shares consolidation
HCS Educational Services Limited Ordinary 100% Yes
The financial results of the subsidiary for the year were:
Name Income Expenditure Profit/(Loss) Net
£ £ / Surplus/ liabilities
(Deficit) for £
the year
£
HCS Educational Services Limited 141,565 (118,848) 22,717 (109,167)

Page 39

HEREFORD CATHEDRAL SCHOOL

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

15. Debtors

Due within one year
School fees
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
School fee extras		 Group
2025
£
216,810
-
28,829
139,581
67,717
452,937		 Group
2024
£
94,673
-
13,080
143,394
51,236
302,383		 School
2025
£
216,810
100,067
28,829
139,581
67,717
553,004		 School
2024
£
64,673
119,723
11,197
139,288
51,236
386,117

Amounts owed by subsidiary are stated after impairment provisions totalling £109,163 (2024: £131,882) .

16. Creditors: Amounts falling due within one year

Bank loans
Advance fee payments
Trade creditors
Registration deposits
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 August 2024
Resources deferred during the year
Amounts released from previous periods		 Group
2025
£
56,762
2,118,335
121,580
185,605
149,846
265,105
221,284
3,118,517		 Group
2024
£
254,765
2,445,350
171,282
227,237
141,604
97,384
551,943
3,889,565		 School
2025
£
56,762
2,118,335
121,580
185,605
149,846
265,105
212,175
3,109,408
Group
2025
£
242,161
147,338
(242,161)
147,338		 School
2024
£
254,765
2,445,350
171,282
227,237
141,604
97,384
505,007
3,842,629
Group
2024
£
250,917
242,161
(250,917)
242,161

Deferred income comprises of overseas tuition fees paid in advance of the start of term.

Page 40

HEREFORD CATHEDRAL SCHOOL

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

17. Creditors: Amounts falling due after more than one year

Bank loans
Fees in advance		 Group
2025
£
1,569,895
3,021,994
4,591,889		 Group
2024
£
1,876,250
4,926,519
6,802,769		 School
2025
£
1,569,895
3,021,994
4,591,889		 School
2024
£
1,876,250
4,926,519
6,802,769

Advance fee payments due in more than 1 year include £1,255,610 (2024: £1,807,011) that is due between 1 and 2 years, £1,469,376 (2024: £2,544,049) that is due between 2 and 5 years and £297,009 (2024: £575,458) that is due after more than 5 years. Amounts received and deferred during the year were £614,279 (2024: £7,315,924) with amounts utilised in the year of £2,612,809 (2024: £352,834) and capital repaid of £233,009 (2024: £Nil) .

Included within the above are amounts falling due as follows:

Between one and two years
Bank loans
Between two and five years
Bank loans
Over five years
Bank loans		 Group
2025
£
58,917
194,217
1,316,761		 Group
2024
£
256,354
235,636
1,384,260		 School
2025
£
58,917
194,217
1,316,761		 School
2024
£
256,354
235,636
1,384,260

Bank loan is being repaid by instalments as follows:

The bank loan is secured by first legal charges over Nos. 28 and 31 Castle Street, St. David's Hall Hereford, Quay House & Wilmot House.

Page 41

HEREFORD CATHEDRAL SCHOOL

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

18. Financial instruments

Financial assets
Financial assets measured at fair value
through income and expenditure
Financial liabilities
Other financial liabilities measured at fair
value through income and expenditure		 Group
2025
£
1,518,732
Group
2025
£
(2,272,893)		 Group
2024
£
1,473,424
Group
2024
£
(2,936,700)		 School
2025
£
1,518,734
School
2025
£
(2,263,951)		 School
2024
£
1,473,426
School
2024
£
(2,936,700)

Financial assets held at fair value include assets held as investments.

Financial liabilities include loans, fee deposits, trade creditors, other creditors and accruals.

Page 42

HEREFORD CATHEDRAL SCHOOL

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

19. Statement of funds

Statement of funds - current year

Balance at 1
August 2024
£
Unrestricted
funds
Designated
funds
Outreach Music
24,131
Cantabile
4,202
28,333
General funds
General Funds
6,311,983
Total
Unrestricted
funds
6,340,316
Endowment
funds
Philpotts -
Preserved value
158,277
Philpotts -
Unapplied total
return
487,482
645,759		 Income
£

14,573
-
14,573
13,275,858
13,290,431
-
10,694
10,694		 Expenditure
£
(8,889)
-
(8,889)
(12,131,725)
(12,140,614)
-
(5,994)
(5,994)		 Transfers
in/out
£
-
-
-
10,694
10,694
6,015
(16,709)
(10,694)		 Gains/
(Losses)
£
Balance at
31 July 2025
£
-
29,815
-
4,202
-
34,017
-
7,466,810
-
7,500,827
-
164,292
34,574
510,047
34,574
674,339		 Gains/
(Losses)
£
Balance at
31 July 2025
£
-
29,815
-
4,202
-
34,017
-
7,466,810
-
7,500,827
-
164,292
34,574
510,047
34,574
674,339
34,017
7,466,810
7,500,827
164,292
510,047
674,339

Page 43

HEREFORD CATHEDRAL SCHOOL

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

19. Statement of funds (continued)

Balance at 1
August 2024
£
Restricted
funds
Old Herefordian
Bursary Fund
-
Charitable
Bursary Fund
696,918
Music Bursary
Fund
425,756
Friends Bursary
Fund
197,119
Other Bursary
Funds
73,410
Rowing Fund
1,105
1,394,308
Total of funds
8,380,383		 Income
£

160,000
29,932
9,004
8,990
125,140
-
333,066
13,634,191		 Expenditure
£
(160,000)
(4,016)
(28,589)
-
(120,368)
-
(312,973)
(12,459,581)		 Transfers
in/out
£
-
-
-
-
-
-
-
-		 Gains/
(Losses)
£
Balance at
31 July 2025
£
-
-
20,103
742,937
(5,464)
400,707
-
206,109
-
78,182
-
1,105
14,639
1,429,040
49,213
9,604,206		 Gains/
(Losses)
£
Balance at
31 July 2025
£
-
-
20,103
742,937
(5,464)
400,707
-
206,109
-
78,182
-
1,105
14,639
1,429,040
49,213
9,604,206
1,429,040
9,604,206

Page 44

HEREFORD CATHEDRAL SCHOOL

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

19. Statement of funds (continued)

The income on restricted funds comprised donations received during the current academic year.

a. The Old Herefordian Bursary Fund includes donations of £160,000 from The Old Herefordian Fund which contribute to the costs of scholarships and bursaries.

b. The source of the Charitable Bursary Fund is the donation of bursary fund contributions paid by parents when their child starts at Hereford Cathedral School. The purpose of the Charitable Bursary Fund is to make the School accessible to pupils who would not otherwise be able to access education at an independent school. The governors consider that giving access in this way fits with the ethos of the School, and is appropriate to a school which has close links to the church.

c. In 2011 the School was given a £325,000 legacy from the estates of two generous benefactors. The legacy stipulated that it should be used for a musical purpose. The governors decided that the legacy would be used to provide assistance for musically gifted children who would not otherwise be in a position to attend the School.

d. A Friends Bursary Fund has been set up which is intended to support the development of bursaries for talented pupils from families who would not be able to afford the fees. Funds are received in the form of donations made by friends of the School.

e. Other bursary funds are other small donations restricted for use towards school bursaries.

f. The rowing fund is used to support the rowing activities of the School.

Endowment funds

The Philpotts Educational Charity was originally established as a Scholarship Fund but under a Ministry of Education Order of 1947. the Scheme was varied to allow income to be used for the benefit of the School generally. The School operates a policy of total return on its Endowment Funds and the School extracts the dividend income and investment management fees each year. This totals £6,015 (2024: £5,180) and can be seen as a transfer on the Statement of Financial Activities from Endowment Funds to Unrestricted Funds.

Page 45

HEREFORD CATHEDRAL SCHOOL

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

19. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
Designated
funds
SAS Support
Fund
Outreach Music
Cantabile
General funds
General Funds
Total
Unrestricted
funds
Endowment
funds
Philpotts -
Preserved value
Philpotts -
Unapplied total
return		 Balance at
1 August
2023
£
52,331
25,271
4,632
82,234
5,582,013
5,664,247
154,417
434,470
588,887		 Income
£
-
11,077
-
11,077
12,739,336
12,750,413
-
10,665
10,665		 Expenditure
£
(52,331)
(12,217)
(430)
(64,978)
(12,271,163)
(12,336,141)
-
(5,485)
(5,485)		 Transfers
in/out
£
-
-
-
-
261,797
261,797
3,860
(14,082)
(10,222)		 Gains/
(Losses)
£
-
-
-
-
-
-
-
61,914
61,914		 Balance at
31 July 2024
£
-
24,131
4,202
28,333
6,311,983
6,340,316
158,277
487,482
645,759

Page 46

HEREFORD CATHEDRAL SCHOOL

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

19. Statement of funds (continued)

Restricted
funds
Old Herefordian
Bursary Fund
Charitable
Bursary Fund
Music Bursary
Fund
Friends Bursary
Fund
Other Bursary
Funds
Rowing Fund
Total of funds		 Balance at
1 August
2023
£
-
626,521
411,806
178,023
78,356
1,105
1,295,811
7,548,945		 Income
£
150,000
44,102
10,584
19,096
394,401
-
618,183
13,379,261		 Expenditure
£
(150,000)
(3,650)
(18,961)
-
(147,772)
-
(320,383)
(12,662,009)		 Transfers
in/out
£
-
-
-
-
(251,575)
-
(251,575)
-		 Gains/
(Losses)
£
-
29,945
22,327
-
-
-
52,272
114,186		 Balance at
31 July 2024
£
-
696,918
425,756
197,119
73,410
1,105
1,394,308
8,380,383

Page 47

HEREFORD CATHEDRAL SCHOOL

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

20. Summary of funds

Summary of funds - current year

Balance at 1
August 2024
£
Designated
funds
28,333
General funds
6,311,983
Endowment
funds
645,759
Restricted funds
1,394,308
8,380,383		 Balance at 1
August 2024
£
Designated
funds
28,333
General funds
6,311,983
Endowment
funds
645,759
Restricted funds
1,394,308
8,380,383		 Income
£
14,573
13,275,858
10,694
333,066
13,634,191
Income
£
11,077
12,739,336
10,665
618,183
13,379,261		 Expenditure
£
(8,889)
(12,131,725)
(5,994)
(312,973)
(12,459,581)
Expenditure
£
(64,978)
(12,271,163)
(5,485)
(320,383)
(12,662,009)		 Transfers
in/out
£
-
10,694
(10,694)
-
-
Transfers
in/out
£
-
261,797
(10,222)
(251,575)
-		 Gains/
(Losses)
£
Balance at
31 July 2025
£
-
34,017
-
7,466,810
34,574
674,339
14,639
1,429,040
49,213
9,604,206
Gains/
(Losses)
£
Balance at
31 July 2024
£
-
28,333
-
6,311,983
61,914
645,759
52,272
1,394,308
114,186
8,380,383		 Gains/
(Losses)
£
Balance at
31 July 2025
£
-
34,017
-
7,466,810
34,574
674,339
14,639
1,429,040
49,213
9,604,206
Gains/
(Losses)
£
Balance at
31 July 2024
£
-
28,333
-
6,311,983
61,914
645,759
52,272
1,394,308
114,186
8,380,383
9,604,206
Balance at
31 July 2024
£
28,333
6,311,983
645,759
1,394,308
Summary of funds - prior year
Designated
funds
General funds
Endowment
funds
Restricted funds		 Balance at
1 August
2023
£
82,234
5,582,013
588,887
1,295,811
7,548,945
8,380,383

Page 48

HEREFORD CATHEDRAL SCHOOL

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

21. Statement of funds (School)

Designated funds
Outreach Music
Cantabile
General funds
General funds
Total Unrestricted funds
Endowment funds
Philpotts - Preserves value
Philpotts - Unapplied total
return
Restricted funds
Old Herefordian Bursary
Fund
Charitable Bursary Fund
Music Bursary Fund
Friends Bursary Fund
Other Bursary Funds
Rowing Fund
Total of funds		 Balance as
at 1 August
2024
Income
£
£
24,131
14,573
4,202		 Expenditure
£
(8,889)		 Transfers
in/out
£
-		 Gains/
(Losses)
Balance as
at 31 July
2025
£
£
-
29,815
4,202
28,333
14,573		 (8,889) - -
34,017
6,348,147
12,971,841		 (11,863,872) 10,694 -
7,466,810
6,376,480
12,986,414		 (11,872,761) 10,694 -
7,500,827
158,277
-
487,482
10,694		 -
(5,994)		 6,015
(16,709)		 -
164,292
34,574
510,047
645,759
10,694		 (5,994) (10,694) 34,574
674,339
-
160,000
669,701
57,159
425,756
9,004
197,119
8,990
73,400
125,140
1,105
-		 (160,000)
(4,016)
(28,589)
-
(120,368)
-		 -
-
-
-
-
-		 -
-
20,103
742,947
(5,464)
400,707
-
206,109
-
78,172
-
1,105
1,367,081
360,293		 (312,973) - 14,639
1,429,040
8,389,320
13,357,401		 (12,191,728) - 49,213
9,604,206

Page 49

HEREFORD CATHEDRAL SCHOOL

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

Statement of funds (School) - prior year

Balance as
at 1 August
2023
Income
£
£
Designated funds
SAS Support Fund
52,331
-
Outreach Music
25,271
11,077
Cantabile
4,632
-
82,234
11,077
General funds
General funds
5,593,363
12,476,357
Total Unrestricted funds
5,675,597
12,487,434
Endowment funds
Philpotts - Preserves value
154,417
-
Philpotts - Unapplied total
return
439,685
10,665
594,102
10,665
Restricted funds
Old Herefordian Bursary
Fund
-
150,000
Charitable Bursary Fund
612,361
44,102
Music Bursary Fund
411,806
10,584
Friends Bursary Fund
178,023
19,096
Other Bursary Funds
78,356
144,401
Byre House Fund
-
250,000
Rowing Fund
1,105
-
1,281,651
618,183
Total of funds
7,551,350
13,116,282		 Balance as
at 1 August
2023
Income
£
£
52,331
-
25,271
11,077
4,632
-		 Expenditure
£
(52,331)
(12,217)
(430)		 Transfers
in/out
£
-
-
-		 Gains/
(Losses)
Balance as
at 31 July
2024
£
£
-
-
-
24,131
-
4,202
82,234
11,077		 (64,978) - -
28,333
5,593,363
12,476,357		 (12,001,642) 280,069 -
6,348,147
5,675,597
12,487,434		 (12,066,620) 280,069 -
6,376,480
-
(5,485)		 3,860
(19,297)		 -
158,277
61,914
487,482
594,102
10,665		 (5,485) (15,437) 61,914
645,759
-
150,000
612,361
44,102
411,806
10,584
178,023
19,096
78,356
144,401
-
250,000
1,105
-		 (150,000)
(3,650)
(18,961)
-
(147,782)
-
-		 -
(13,057)
-
-
(1,575)
(250,000)
-		 -
-
29,945
669,701
22,327
425,756
-
197,119
-
73,400
-
-
-
1,105
1,281,651
618,183		 (320,393) (264,632) 52,272
1,367,081
7,551,350
13,116,282		 (12,392,498) - 114,186
8,389,320

Page 50

HEREFORD CATHEDRAL SCHOOL

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

22. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Endowment
funds
2025
£
-
728,478
-
(54,139)
-
674,339		 Restricted
funds
2025
Unrestricted
funds
2025
£
£
-
8,936,254
790,254
-
638,786
6,220,840
-
(3,064,378)
-
(4,591,889)
1,429,040
7,500,827		 Total
funds
2025
£
8,936,254
1,518,732
6,859,626
(3,118,517)
(4,591,889)
9,604,206

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Endowment
funds
2024
£
-
689,204
-
(43,445)
-
645,759		 Restricted
funds
2024
£
-
784,219
610,089
-
-
1,394,308		 Unrestricted
funds
2024
£
9,323,354
-
7,665,851
(3,846,120)
(6,802,769)
6,340,316		 Total
funds
2024
£
9,323,354
1,473,423
8,275,940
(3,889,565)
(6,802,769)
8,380,383

Page 51

HEREFORD CATHEDRAL SCHOOL

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

23. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Gain on investments
Dividends, interests and rents from investments
Increase in debtors
(Decrease)Increase in creditors
Net cash provided by operating activities		 Group
2025
£
1,223,823
620,899
(49,213)
(219,406)
(150,554)
(246,031)
1,179,518		 Group
2024
£
831,438
650,801
(114,186)
57,010
(1,189)
112,070
1,535,944

24. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 Group
2025
£
6,406,689
6,406,689		 Group
2024
£
7,973,557
7,973,557

As at 31 July 2025, the school’s standalone cash balance amounted to £6,383,422 (2024: £7,959,215).

25. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1 August
2024
£
7,973,557
(482,002)
(1,876,250)
5,615,305		 Cash flows
£
(1,566,868)
545,990
-
(1,020,878)		 Other non-
cash
changes
£
-
(306,355)
306,355
-		 At 31 July
2025
£
6,406,689
(242,367)
(1,569,895)
4,594,427

Page 52

HEREFORD CATHEDRAL SCHOOL

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

26. Capital commitments

Group Group
2025 2024
£ £
The Group and the School had the following contracted capital
commitments:
Capital commitments 92,677 140,341

27. Pension commitments

Defined contribution scheme

The School operates defined contribution schemes for teaching and non-teaching staff. The assets of theses schemes are held separately from those of the company in a fund independently administered by HBOS, Nest and Aviva. The pension cost charge represents contributions payable by the company to these funds and amounted to £437,911 (2024: £420,684) . The Aviva scheme was opened on 1 January 2021 to all teaching staff, and is a defined contribution scheme offered as an alternative to the Teachers Pension Scheme.

Defined benefit scheme

The School participates in the Teachers' Pension Scheme ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £577,402 (2024: £547,079) and at the year-end £116,148 (2024: £90,683) was accrued in respect of contributions to these schemes.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report was published in October 2023. The Valuation Report shows notional assets of £222.2bn and liabilities of £262bn, resulting in a scheme deficit of £39.8bn.

The employer contribution rate for the TPS is 28.6%, and employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.

Page 53

HEREFORD CATHEDRAL SCHOOL

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

28. Operating lease commitments

At 31 July 2025 the Group and the School had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 Group
2025
£
347,849
1,328,020
8,739,275
10,415,144		 Group
2024
£
357,651
1,278,976
9,054,019
10,690,646

29. Related party transactions

A number of governors have, or did have, children who are educated at the School. All fees are paid under normal terms. 4 governors also have spouses employed by the school, under normal contractual terms.

Governors made donations of £Nil to the school towards bursary funds ( 2024: £2,630).

The Old Herefordian Fund (charity number: 504119) is a charity in which J Sheldon, a governor at the School, is also a trustee. The Old Herefordian Fund contributed £170,485 (2024: £150,000) towards the cost of scholarships and bursaries. This contribution is given for this specific purpose and is therefore categorised as a restricted donation. During the year £191,244 (2024: £173,159) of rent was paid to the Old Herefordian fund.

Page 54