Charity number. 525934 THE KING'S SCHOOL, CHESTER GOVERNORS. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025
THE KING'S SCHOOL. CHESTER CONTENTS Page Reference and adminlstratlve details of tho Charfty, Its Govemors and advlsers Govemors. r&port Gov8mofs' To$ponsibilities statement Independont audltors. report on the financial statements Consolidated statement of financial activities 4-19 20 21-24 25-26 Consolidated balance sheet 27-28 Charity balance sheet Consolidated statement of Cash flows 29-30 31 Notgs to the flnancial statements 32-60
THE KING'S SCHOOL, CHESTER REFERENCE AND ADMINISTRATIVE DETALS OF THE CHARITY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2025 Gov•mors S Verity D.Lit(hc} . Chair of Govemors. Chair of Risk & Compllance Committee3.5.6 A Bartley7 A Bentley, Vice Chair, Chair of Finance & General Purposes Committeel.5.6,7 N Dowling, EYFS Govemor14 J Ebo, Health & Safety Governor3 C A Edwaids Chair of Safeguarding Committee, Safeguarding Govemor. Staff Liaison Govemor4 C J Gillies1 D Leonard, Vice Chair, Chair of Education Committee15,6 D K Rowlands1 M Sayer2 Very Revd Dr T Strafford2 M Troy1,3 J Christon, Strategy Working Group lapwnled 1 January 20251 Finance & General Purposes Committee 2 Education Committee 3 Risk & Compliance Committee Safeguarding Committee Govemance Committee Remuneration Committee Bursaries and Partnerships Committee Charty registered number 525934 Prlnclpal office The King's School Wrexham Road Chester CH4 7QL Ind•pand•nt audltors WR Partners Chartered Accountants Belmont House Shrawsbury Business Park Shrewsbury Shropshire SY2 6LG Page I
THE KING'S SCHOOL, CHESTER REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 Bankors Handelsbanken 2 Albion House Albion Sl Chester CH1 1RQ United Trust One Ropemaker Street London EC2Y 9AW Cambridge & Counties Charnwood Court 5B New Walk Leicester LE1 6TE Insurance Hettle Andrews 2 Brunswick Square Birmingham 81 2LP Lawyers Weightmans 100 Old Hall Street Liverpool L3 9QJ WorkNest Woodhouse Aldford Chester CH3 6JD Knights 1759 The Bramplon Newcaslle-Under-Lyme Slaffordshire ST5 OQW Investmènt Advlsèrs Rathbones Group PIC Th6 Plaza 100 Old Hall Street Liverpool L3 9AB Archlt$ct$ Scotl Ar¢hile¢lure Limited 2 Crowton View Frodsham WA6 8PX Page 2
THE KING'S SCHOOL, CHESTER REFERENCE AND ADMINISTRATIVE DETAILS OF ThE CHARITY. ITS GOVERNORS AND ADVISERS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 Clerk Hayley Jordan Senior Managgmont Team George Hartley, Headmaster HaeY Jordan, Bursar Patrons Duke of Weslminslor, Hugh Richard Louis Grosvenor Th& Lord Bishop of Chester, The Rl Rev'd Mark Tanner Page 3
THE KING'S SCHOOL, CHESTER GOVERNORS, REPORT FOR THE YEAR ENDED 31 AUGUST 2025 The Charity and Group present their annual report together w((h the audited financial slalemenls of the Charity also referd to as 'lhe School" and the "Group for the year 1 September 2024 10 31 August 2025. The Govemors confirm that the Annual report and financial glatemenls of the Charity comply wth the Current slallrtory requirernen15. the requirements of the Charity's governing document and the provisions of the Statement of Recommended Practice ISORPI applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS1021 leffeclive 1 January 20191. Objgctivos and actlvltles a. Policies and objectives The King's School, which is the oldest independent school in Chester, was founded by Henry Vlll in 1541 and for over foul hundred years the school occupied buildings adjacent lo the Cathedral. The school moved lo a new sile on the Wrexham Road in 1960. The site has continually developed since then with a Junior and Infant School and in recent years a 10-year maslerplan that has included a new sports hall. sixth form cenlre, pastoral and medical building. new sports facilities, and a complete programme DI relurbishmenl of ctassrooms and science rooms. The school maintains strong links with Chester Cathedral. The King's School is for pupils of high academic ability and comprises the Senior School (ages 11-181, the Junior School (ages 7-111 and the Infant School, Willow Lodge (ages 4-71. We seek lo develop this ability in each pupil to his or her full potential wtth excellent leaching. Support by extensive sporting and exira<urricular activrts'es. Further inforniation about the school can be found on our website.. www.kingschesteT.co.uk The Charty also has permanent endowed and unendowed trust funds held for Speci purposes in connectron with the development of the school's facilities and for bursaries, prizes and other eijucational purposes. In setting objectives and planning for activits, the Govemors have given due considefalion lo general guidance published by the Chanty Commission relating to public benefit, including the guidance 'PUbl benefrt.. running a charity IPB21'. b. Stratogies for achiavlng oblgctlves Aim The schoofs aim is to provide an outstanding independonl education, through superb academic luf(ion and through giving the opportunities lo develop wider sporting, artistic and social skills to all ils pupils. The school nurtures spiritual growth and provides an environment where each pupil can develop and fulfil hi5 or her polenlial, helping build sÈlf<onfKlÈn¢e and 8 desire 10 serve the wider community. Vlsion To be one of the counlrfs leading academic day schools that equips students wrth the skills, courage and haracter lo flourish in a constantly changing world. carrying with Iherll a lifelong love of learning, comrnilmenl lo Service and the enduring spir(( of King's throughout their lives. Page 4
THE KING'S SCHOOL, CHESTER GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 Obj8Ctives and actlvltles Icontlnuedl Core Values In caring about excellence and each other, and in promoting enjoyment and happines5 through fulfilmenl, Ihg members of the King's community believe in OUT three core values.. Asplre- We want all our students lo aspire lo be the very best versions of themselves. This relates to both their academic achievement, where we want them lo attain their 'suslainable best, and just as importantly to their personal development as unique indiwduals. Excellent qualification5 remain important, bul the nurture of allributes such as resilience. adaptability, emothJnal intelligence and Curiosity are arguably even more significant in tcKlay's world. Respect- We want our students to have respect for Ihemsefves and others in the school community, particularfy their fellow students. We believe that allowing young pecyle to be comfortable in their own Skin, as well as respectful of diffefence in olhets wrth Tegard lo diversity, are both essential. We also want our students to respect their Surroundings in terms of the school itself, where they Iivg outside school and with due regaid lo the global environment. Collaborate - We want our students lo collaborate effectively so that they can achieve more than they would on their own and le8m how lo work effectively wi(h others. We also want lo collaborate positively as part of the broader school community and in doing so contribute to a higher purpose than Simp advancing themsolv¢s. Human ¢ollaboralion is only goin9 to becom8 more relevant in the years ahead. Strategic Plan The current strategic plan for the school has eight key objectives". Every pupil known, valued and cared for. developing pastoral care with the new house system wrth a renewed focus on sludenl well-being Great place to work.. for staff in all sections of the school, both leaching and support Great learning, fulure-orientaled.. oplimising leaching and leaming across the school and developing the curriculum Opportunities for all.. ensuring the provision of extraacurricular activities for all students across the sch¢x)I A full cwtucational school.. maximising sludenl numbers on the CUTrenl site with a lar9el of 40.kn girls Al the heart of the community.. developing Closer and collaborative links with parents, Chester sch¢aols and other institutions in the aa Widening access." ensuring the recNitment of the brightegt students from our catchment area. including the increased provision of bursaries Revrtalising the sf(e'. dglivering Ihg principle$ of tho ten-yoar maslerplan to redevelop tho s¢h¢x)I Page 5
THE iaNG'S SCHOOL, CHESTER GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 Objoctlves and activitie$ (¢ontlnuedl - Activities undèrtaken to achieve objectives A new strategic plan 2025-2030, wh1ch the Governors have been working on throughout the reporting peric¥J, wll now have six strategie objectives and reflects the changing landscape of education at The King's Sch¢)ol' STIUI Eck 2030 yaiyed eii¢ellln CTtswLh Academic Excellence. We are lulty committed lo providing an engaging and enriching academic experien for all our students that will allow them lo attain their sustainable best. This will be a¢hieved by con515tent excellence in leachin9 and learning, innovative use of digitsl technologies and the development of curriculum pathways lo ensure all students can achieve positive value-added outcomes. Character for the Futur8. W& will ènsure that ail students are looked after and valued by outstsnding pastoral care and involved in our extensive ¢(Kurricular programme. This, wilh their academic achievement and an outstanding futures programme, wll develop them with the skills and knowledge required lo flourish in a rapidly changing world.. resilience, adaptability curiosity and collaboration. Sustainablllty and Growth. We will manage resources prudently lo maintain affordability and accessibility, whilst preserving educational excellen¢e, thereby securing the s¢hool's long lerm financial health. We will wisely explore diversification i)pportunrtie5 to slTenglhen the school. Further site development will be approached judiciously and sustainably. Ono Family. Four Schools. We will ensure continuity and eoheTence across the four $eclion$ of the school, each of which will relain age-appropriate distinctiveness, united by a whole school othos and values. We will look to foster strong parental engagement, smooth transitions, and student excitement as they progress through each stage. Staff Valugd and Excelling. We are committed to attracting the highest qualty staff and valuing them as individuals whilst promoting welkbeing and professional growth. Leadership al all levels, with the support of coaching and appropriate technology, will encourage a culture of continuous review and improvement for the benefrt of all staff and students. Page 6
THE KING'S SCHOOL, CHESTER GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 Objectives and acttvitios Icontinuèdl CommUnY Strength. We will look lo develop our partnership links to broader communibes at all scales, for the purpose of mutual benefit. Central lo this will be our continued invoivemenl with the development of Chester School$ Together, which alongside other areas of innovation will allow us to share best practice as a national beacon of excellence, nationally and internationally. ACTIVITIES UNDERTAKEN TO ACHIEVE OBJECTIVES Awards Sunday Times Parent Power Gulde. We are delighted lo announce that The King's School Chester has been named the lop perfomiing co-educational School in the North West in this year's Sunday Times Pargnt Power Guide. The guide, which was been published on 5th December 2025, based the ranking on national A4evel, GCSE and IB outcomes from summer 2025 Our incredible results last Summer 84Qh 9-7 grades al GCSE and 600h of A-e1 grades al A'A - have propelled the school an impressive 50 places in the national rankings,. now firmly within the lop 100, we are proud to be recognised 85 the 79th best independent secondary school in the country. Htghlights from the guide Include.. A rise of 50 places nationally Top co-educational school in the North Wesl and North East Ranked 79th nationally- one of onty three North Wesl schools to feature in the top 80 Highest ratio of A'IA gTades for A levels in Che5hire1600fi1 ISI Inspoctlon. The King's Sch¢x)I Chester is celebrating an outstanding report from the Independent School$ Inspectorate IISII. including the rarg accolade of being given a 'signrficant strength, for the c(Fcurricular lrfe of the school. The awarding of a 'significant strength. is a notsble honour, bestowed on only 20¥0 of independent schools nationally, wth even fewer receiving il speufically for the quality and breadth of their cwurri¢u5ar programme. Mr Hartley said.. 'We understand the difference Ihal an exceptional CLxurricular programme can make in lemis of nurturing intellectual curiosity, creativty, and a lrfelong love of learning. 'Pupils al King's embrace opportunities that contribute so richty lo their confidence, well-boing, and character development, from our youngest learners in Willow Lodge right through lo Sixth Form. 'So often, those crucial skills of collaboration, leadership. and resilience are developed both in and out of the classroom. l am proud that our ¢ommitment lo the developing the whole child has befjn recognised by inspectors." The sch¢)ol's co-curricular proMs¢on is exceptionally broad, including sports, drama, art, music, CCF, academic scholarship, Sublect-relatJ clubs, and much more. ensuring that every pupil can explore their interests and talents. King's mel all the exacting standards of the new ISI framework. refloctin9 a commitment lo the highg$t standards of educational excellence, pupil well-being and ch8racler-led educ81ion across the school. Page 7
THE KING'S SCHOOL CHESTER GOVERNORS, REPORT ICONTINUED} FOR THE YEAR ENDED 31 AUGUST 2025 Objectives and activities Icontinued} AGBIS School of the Year. The A5sociats"on of Governing Bodies of Independent Schools {AGBISI named The King's School Chester as their School of the Year. The prestigious accolade was awarded by Chief Executive of AGBIS, Richard Haman, who praised the school's governing body for their commitment, strategic focus and positNe working relats'onships. Acad4mlc Achlevements at GCSE and A-Levol The King's School Chester is celebrating a truly historic year of GCSE results, achiev*ng the highest pBrcentage of top grades Sin current records began. A remarkable 850/¢ of all gTades wefe al grade IAIA. equivalentl which represents the slrongesl performance in 16 years. Overall, the results set new benchmarffs for a¢ademi¢ excellen with 38¢/0 of all grades awarded al grade 9 and 660/4 of all grades al grade 918. This followed a truly exceptional year of A Level results, wth students achieving remarf(able grades across a broad range of subjects. Delighted students achieved the best results in three years and the highest percentage of A. grades since prwandemic giading. marking a ITiumphant enil lo their lime at King's. Overall, 25Yo of all grades were A" with 6/0 gTaded AIA. and an ImpssIVe 85V¢ graded A'B. These resuits will see them PTogress lo some of the UK'S most competitive courses and universities. GCSES.. 38°A-9 66°10- 918 840/o- 9-7 960A 9-6 A Levels.. 250A_A' 60Y.- A'IA 85°A-A'IB Page 8
THE KING'S SCHOOL, CHESTER GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 202S ObJ•ctlves and a¢tlvltles Icontlnuedl Other Achiavomonts students continued to excel in bolth academic and Cothcurricular outcomes. Recent hghlights include.. Sixth Fomi Mathematical OIy7npiad success Four legional titles for gids. hockey team North ol England lilles retained by boys, hockey team5 King's named as one of UK'S top cricketing schools by The Cricketer, the world's oldest and bestellIng Cricket magazine 150 pupils from Thirds, Fourths and Frfths look part in the UK Mathematical Trust IUKMT> Intemiediate Maths Challenge. 12 pupils achieved a gold certrfic8le, 26 achieved silver and 43 achieved bronze 14 budding engineers from Shells travelled lo the N¢)rth Wesl regional finals of the F1 in Schools competition al the University of Botton U11 hockey team who have been crowned the 2025 Hockey North West champions. A Fourth Year pupil took part in an international writing competition and was awarded third place in the Ink ofAges Ficb'on Prvze organised by Wodd History Encyclopedia The U16s boys, squad clinched the school's second national hockey li(le of the season A Sixth Fom student wa5 offered a full scholarship lo study Tuba at the Guildhall School of Music and Drama in London Five Removes pupils travelled lo London to take on 24 sChIS from around the country in the grand final of this year's National Reading Champions Quiz In addition, the number of King's pupils representing regional, nalK)nal and intemational teams has continued to be strong, in particular in the following sports.. Hockey Rowng Football Netball Athletics Go Karting Cricket Swimming Dressage Page 9
THE KING'S SCHOOL, CHESTER GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 ObSo¢tives and actlvlties Icontlnued) School Development The school continued ils programme of development for both staff and our pupils, both current and future. with the following pToje¢t5'. Continued Professional Development for all leaching staff across the three Schools. Continued development and implementation of the 'Learning to Leam, programme to develop more effective and sustainable study ski115 throughout the school. Continued whole school curriculum review. Implemenl81ion 8nd embedding of a new Senior Sch¢x)I reporting system. New IT systems added for well-being of students. safeguarding and training, school visi15 and parental pay portals. The refurbishment ol the Art Department. Upgrade works to the swimming pool including ventilation and decoration. Continued improvements lo the Boathouse, including showers and gym. A continued redevelopment of classrooms throughout the Senior and Junior Schools. The continued car park improvement programme. A pfogramme of maintenance including roofing and guttering across the sf(e. d. Publlc Benefit The King's School educated an average of 1,134 pupils during the reporting period from the ages of 4-18 at no cost lo the UK Treasury. Despite the addrtional pressure5 placed on the school's finances durin9 the PortIng period including increased National Insurance costs, the loss of Business Rates Relief, and allocating funds to subsidise the VAT burden added lo the cosl of school fees, the Governors limrted the increase lo fee5 to match inflation. 8ursaries During the reporting peTiod, the bursary programme educated a total of 63 rneans-lesled pupils in the senior School. the majority of which were awarded bursaries of over 759h. The total cost lo the school of these bursaries was £1,258,786 equating lo 7.3'/0 of gross fee inrne. Page10
THE KING'S SCHOOL, CHESTER GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 Objectrves and activities Icontinu8dl Hiring of Facllltles The following organisations from the l¢xal area have regularty benefitted from using the school's grounds and Boughton Bells Netball Club British Rowing Limited Broughlon United Football Club Bryanslon School Rowing Club BSL- Deaf and Sensory Network Castle squa Cutters Cricket Club County Cricket Officers Club Chester Bach Singers Chester Boughlon Hall Cri¢kel Club Chester Gang Show Chester Hockey Club Chester Netball Club Chris Brett Football Group Christlelon Cricket Club Deeside Ramblers Hockey Club House of Dance Innholders C¢x)ks and Victuallefs Company Jamie's Cricket Academy Karl Rosedale Football Group Kings Actwe Foundation Mad Science Northwest Maryiebone Cricket Club Outlaws Cricket Club Pickle fit- pidtle ball Pop Vox Choir Rex rowing Boat Club Sallney Town Football Club Sistèrs in Sport Netball Club SNW Karate Saint Werburgh Parish Choir St Edwards School Rowng The Swim School Tarvin AFC ladies, football Tarvin AFC under 16 University College London Boat Club Uplon Juniors football club boys ijplon Juniors football club girls Uplon YC FC seniors Vicars Cioss Dynamos Football Club Welsh Rowing Wfjsl Chesiro Cricket Club Page11
THE KING'S SCHOOL, CHESTER GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 Obj'actives and activities (continued} Chester Schools Togeth•r We are very proud to be part of an award-winning Independent Stale School Partnership IISSPI between The King's Schwl and all the slate secondary schools in the City called Chester Schools Together. (Chester SchLw)Is Together- Chester Schools Together). Originally established in 2018 with two stste schools, we have now grown to six slate partnership schools. In 2021, we secured £444,216 of funding from The Westminster Foundation. This funding is used to pay a Chester Schools Together Staff Represenlalive in each school and cover project cosls, including tran5POrt and spe¢ialisl resources. The King's School does not Claim any money for a School Rep and donates £10,000 a year lo partnership activities, as well as the Director of Marketing, Communications and Partnerships, time. All projects are based on an identrfied 'mulual need, between all schools. including King's, which arè agreed by a Headleacher Strategy Group. with student voice al the heart of all decisions. These 'mutual needs. have included careers, Climate change action, engagement in STEM and specialist university guidance. Vlsion ol Che$t•r Schoob Together: Working in equal partnership to provide a range of educational and cuttural opportunrties for pupils across the Chester community and lo facilitate the professional and personal development of staff Partners in the Chester Schools Together work together lo". Provide a diverse programme of opportunities for interested and committed young people, regaTdless of their social or economic background Widen the educational and cultural horizons of all participants Engender a spirit of commltmenl, collaboration and ¢onfidence amongst pupils Provide stimulating professional development for staff and promote mutual respect across the different schools Foster a sense of belonging and pride in the City of Chester Encourage links with other city inslilulions for the eduealion and benefrt of all Events from S6pt 202Mugu$t 2025 included- Oxbridge Preparation Evening Mock Interview- Medics Saturday Master¢lasses- Scalexlric4Sehools Vets. Medics. Dentist Uni Application Event Learn lo Row Programme- weekly, ongoing sessions for all schods EDI Conference Camegie Award Shadowing Group Lifeguards Qualffication Course Drama showcase Page 12
THE KING'S SCHOOL. CHESTER GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 ObjectNes and activitles Icontinuadl Fundraising by Pupll$: We believe engagement with the local community should be part of every King's student's education and we are increasing the spread of activities through our enrichment programme. This includes.. Sixth Fom) students volunteered al a bcal primary School throughout the academie year Litter-picking around Chester a5 part of Biodiversity Sixth Fom students visited Grosvenor Manor Care Home In 2025, the school raised a total of £12,919 for charitable causes. FINANCIAL REPORT The school Tecorded a operational surplus of £1.198k (Group.. £1.174kl for th8 reporting period, compared with a operational surplus of £1,373k (Gioup.. £1,420kl in the 2023124 financial year. The lower surplus is primarily attribulabl$ lo reduced pupil numbers followng an increase in school fees arising from the introduction of VAT. In response, the school implemented a number of cost-saving initiatNe5 to en5Ufe it contsnued lo achieve a minimum surplus of 50A. compared with an 80A surplus in the previou5 year. Surplus projections for the next iwo years remain volatile and unpredictable. Pupil numbers for the 2025126 academic year are at a record high of 1.170, with prqecled numbers for 2026127 expeded lo be 1,140. The school has r8mained agile in responding lo this volatility and has already implemented a successful voluntary redundancy programme in 3nti¢ipation of the lower pupil numbers proje¢te<l for 2026127. Governors remain fimly committed lo ensuring the school's ongoing finan¢ial stability, continued development, and attractiveness to parent9, while doing everythin9 POS5ible to keep fees affordable. Total pupil numbor5 starting tho school in Sgplember 2025 wgre 1,170. ropresenting a significant increase from 1,134 in September 2024. The school will continue to work proadivgty lo improve fulurg pupil numbers and, where necessary, 8djusl staffing leve15 to rellect changes in demand. Charitable activty expenditure during the year was well controlled and subject to regular Scrutiny by the Govemors. King's Space Ltd has continued lo trade in support of the school. This wholly owned subsidiary manages the hi of the school's premises outside of school hours, with any profits generated being Gift Aided back lo the sch¢)ol. Golng Concern After making appropriate enquiries, the Governors have a reasonable expectation that the Charity has adequate resources lo continue in operational existence for the foreseeable future. FOT this reason, they continue lo adopt the going concern basis in Preparing the financial statements. Further details regarding the adoption of the going concem basis can be found in the a¢wunling policies. . Rosorves pollcy The Govemors recognise the need lo hold minimum reserves, 8nd this is currently sel at an ambitious amount of £3M. equivalent level to one term's worth of costs. Page13
THE KING'S SCHOOL, CHESTER GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 b. Investments pollcy The Govemors. investment powers are determined by the Scheme of Government dated 13th June 1988 luated in 20221, which permf(s investment in trust foi 'The School, of sums not needed for immediate wort(ing purposes, modified in the case of The King's Sch¢x)l Bursary Trust Fund IKSBTFI to pemiit, amongst other things, investment in any stock, funds or securi(ie5 authorised by law for the investment of trust funds. The Governors, policy is lo maximise the overall ielurn on investments having regard lo the need for a fjow of income to meet the school's requirements for funding a number of bursary awards. In order lo achieve this perfomiance, the Govemors and the Iruslees of the KSB TF have appointed an Investment Manager. The performance of the Investment Manager is monitored undef the terms of 8 Slalemenl of Investment Principles lo which the Manager is required to adhere. Th8 investment objectives are to preserve the Iong-lerm value of the funds in real terms and lo maintain an appropriate level of income in real terms. The achievements of the Manager are measured against appropriate benchmark5 in respect of equities. gills and lolal retum. The Govemors and trustees meet with the Investment Manager al least once each year and receive quarterty reports. Investments in a range of company stocks, 9ill*dged securities and unitised funds. are held in the name of the Investment Manager's nominee company. Investment Performance The trustee5 of The King's School Bursary Trust Fund adopted a discretionary management route with the school's investment advisers in September 2005. The Iruslees of The Lester Smith Bursary Fund and The King's School Prize Fund adopted the same route in August 2008. The investment figures for three trust funds have all increased over the period. but al a Jower rale than the previous year. The King's School Bursary Trust Fund returns have risen by 13.559, The Prize Fund by 11.780 and following two years of negative relums The Lesler Smith Fund returns havg risen by 12.84010. The five-yeaf retums have also increased. Total Retum- measured against a bespoke benchmark in the period lo date are as follows.. Fund The Ki s School Bursary Trust Fund The Kin s School Lester Srnith Fund The Kin s School Prize Fund FTSE All Share FT Government All Stocks Index Bes oke 8enchmark Net Peer Group Index l Year % Return 5.87 5 Year % Rèturn 32.40 33.47 33.25 80.5Q -25.19 7.79 13.64 -1.87 9.23 5.56 32.97 Page 14
THE KING'S SCHOOL CHESTER GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 Short4emi Fee In Advance Sch•m8 The School has established a short-torm investment fund to manage the incroased uptake of the Fees in Advan Scheme. The fund was established in 2024 and will operate for a maximum period of five years. Funds are drawn down on a temily basis as school fees become payable. The fund was created lo ensure the secure management of larger cash balances that exceed the UK Government's £85,000 deposit protection limit for financial institutions. To minimise risk, the funds are invested solely in UK Government Bonds and Treasury Bills. Any investment returns generated are used to offset the impact of the partial VAT exemption applied by HMRC lo fee8 paid in advance, as well as to mitigate the shortfall beh¥een the VAT the school can reclaim and Ihe 50 VAT discount passed on lo parents through the scheme. Consolidatéd Accounts The consolidated aecounls, which includes King's Space and investments, show that al the end of the period the Charity held unrestricted funds of £21,991k12024 £20,527kl, Free reserves (after accounting for long lem bank borrgwings and pension assets) al the end of the year were £443k12024 -£39kl. After two consecutive years of tha free reserve being a negative figu due to the amount of investment in Capitsl projects, the figure has now become a posilNe result once more as the lonlerm bank loan come5 to an end. In the coming ye8TS, it is a key objective to increase the funds maintained. in particular, by The King's School Bursary Trust Fund in order lo support more familios who need assistance with fees. The school 1$ generating additional reserves on an ongoing basis to fund new developments at the school which will further improve the off8r for our pupils and the wider community. In respect of the Charivs defined benefit scheme for support staff, the valuation at thi5 yearnd continues to show a surplus. The Goveinors believe that this notional funding calculation has no material effect on the Charity's short-lerm cash flow and that in the longer lemi ils effects are sustainable out of future inme. For this reason, il is considered that it should be disregarded for Reserves Policy purposes. Fundraising for the Bursary Trust Fund The school has an in-house Development team responsible for all fundraising actimties. No member of this team has been subject to an undertaking to be bound by any voluntary scheme for regulating fvndraising, or any voluntary standard of fundraising. in iespect of activities on behalf of the school. In order lo protect vulnerable people and other members of the public frorn unreasonably intrusive or p&rsi$lent fundraising, the school's fundraisin9 activities are overseen by the King's Leadership team and board of Governors. No complaints have been received by the school regarding fundraising activities. c. Prlncipal risks and un¢ortalntles The Govemors, together with the King's Leadership Team, are SPonsIble for managing the risks faced by the Charity. They identify potential risks, assess their impact, and pul in plaee appropriate controls lo minimis& the effect of signrficanl risks. A formal review of risks is conducted on an ongoing basis and al least once a year, wrth a comprehensive Risk Register maintained by both the school and the Board of Governors. Page 15
THE KING'S SCHOOL, CHESTER GOVERNORS. REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 d. Financial risk management objectivgs and pollcles The Governors have assessed the major risks lo which the Group and the Charity are exposed. in particular those related lo the operations and finances of the Group and the Charity. and are satisfied that system5 and procedures are in place lo mitigate exposure lo the major risks. The key controls used by the school include.. • Formal agendas for all Committee and Board aclwity, Detailed terms of reference for all Committees. Comprehensive strategic planning, budgeting arKI management accounting. Established organisalional structure and lines of reporting, Formal written policies, Clear aulhorisation and approval levels, Safeguarding procedures as required by law for the protection of children, Engagement of extemal, expert audits of finance and health and safety. The sch(x)I has continued to keep fee increases as low as possible to maintsin affordabilty for parents. The Governors continually review the len-year financial plan to ensure thal the school continues to develop, despite the additional pressures on the school's finances. e. Principal funding The principal funding for the school is through the charge of school fees which are reviewed each year by the Board of Governors and Carefulty considered lo be balanced against continuing lo achieve aCadern eXllence, sporting and axtra¢urricular adivilies and continued development and to be affordable to the maximum amotsnl of parents. Page 16
THE KING'S SCHOOL. CHESTER GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 StructUTe, governanca and manag•mgnt . Constitutlon The King's School, Chester is a registered charity, number 525934, and is constituted under a Trust degd. b. Methods of appointment or election of Govarnors The management of the Group and the Charity is the responsibility of the Govemors who are elected and co opted under Ihetgmis of the Trust deed. The Board having adopted fixed terms of Office for Governors and the Chair of the Board, seeks via the Govemance Committee, to refresh itself on an ongoing basis wf(h new Governors being nominated lo the Board following a sel induction process. This involves an interview process with members ot the Governance Committee. the Chair of the Board, the Headmaster and the DiTector of Finance and Operations prior lo the nomination boing approved by the full Board al a subsequent meeting, notice of which is given in advance lo all Govemors. Nominations can be received from any source bul mainly come from existing Govemors and those organisalions having nomination rights lo the Board. Appoinlments are made based on eligibilty, personal competence and specialist skills that will complement the skills of the existing Governofs. The Board undertakes regular audits of ils skills in order lo ensure that ils membeTS possess the skills consided ne¢e55ary for the successful running of the school In the CLtrrenl era. The Board wll also undergo an exteTnal audit by the Association of Governing Bodies ol Independent Schools IAGBISI every thre& years. All new Governors receive an Induction Pack, includin9 the school's up-lo-date Conslilution," a list of current Govemors and school staff., the most iecenl accounts of the Schtr)I", the most recent inspection report.. the school's strategic and busines5 plans., the s¢hool'5 budget for the relevant financial period., the school's Governance Manual and a full list of all the school's policies lon website)., the Charity Commission publication CC3 '1he Essential Trustee the school's key risk assessment d¢xumentalion,' the minutes of the last three meetings ot the Governors and related papers. These new Govemors are then personally briefed by the Clerk to the Govemors. New Govemors are invited to join the most appropriate commillees according lo their specialist skills. All Govemors are trained in Child Protection and Safeguarding and attend training seminars as and when required. Page 17
THE KING'S SCHOOL. CHESTER GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 Structure. governance and management Icontinuedl c. Organlsational stru¢ture and decislon4naking pollcies The Govemors, a5 the trustees, are legally responsible for the overall management and control of the school and meet four times a year, with one meeting being solely dedicated lo The Protection and Safeguarding of Children. Further meetings take place a minirnum of once per term as the following committees. Finance and General Purpose Committee The Education Committee The Risk and Compliance Committee The Governance Committee The Partnerships and Bursaries Committee The Board appoints a head who is responsible for the overall leadership, management and day lo day running of the school and is supported by the King's Leadership Teams and Senior Leadership Team and middle leaders. The Headmaster and the Bursarlclerk to the Governing Board attend meetings ol all the Governors, sub commillees and working groups. The Headmaster also attends meetings of the Senior Leadership Team and heads of academic departments. which deal with relevant and necessary operational mallers. d. Pay policy for key managtrment personnel Salaries for key management personnel are Teviewed and sel on an annual basi5 by the Remuneration Committee. In undertaking this review the commitlee utilise independent benchmark data from a variety of sources IAGBIS. HMC, Baines and Cutler, Turning Pointl in addition lo performance assessments of the key management personnel. e. Relationships within the $•¢tor The school aclivety supports the highest standards of education through netsvorking with other h0O1$ and maintaining excellent relationships withirl the educational sector. The Headmaster is an elected member ot the Headmasters and Hgadmislresses Conference IHMCI and its Membership Committee. The school is a membei ol the national HMC network Leading Academic Day Schools, the Bursar is a member of the Independent School Bursars Association, a Fellow of the Institute of Leadership and Management and a Member ol the City and Guilds Inslilule. The Head of Willow Lodge and the Junior School is a member of the regional nerkIng group AJIS {the Association of Junior Independent Schools). Close links are maintsined with the Cathedral at Chester. f. Governors. ind8mniii8s The Governors are protected by a 'Management Liability Protection for the Education Sectorf insurance policy that is undeNrillen by AXA Insurance. Plans for future periods Wrth the current economic conditions, the school will need to continue wlh Ils CDs14aving measures lo ensure that future fee increases are kept lo a minimum 10 5UPPOrt parents who have been significantly impacted by VAT being added to their school fees. The School has pul a hold on future major projects for the foreseeable future. but will continue wsth smaller-scate improvements lo the school sile. Page 18
THE KING'S SCHOOL, CHESTER GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 Dlsclosuro of Infomiatlon to audltors Each of the persons who are Governors at the lime whgn this Govemors, report is approv has confimied that.. so far as that Govemor is aware, therè is no relevant audf( infornation of whleh the charitable group's auditors a unaware, and that Governor has taken all the steps that ought lo have been taken as a Govemor in order lo be aware of any relevant audit information and lo establish that the charitable group's auditors are aware of that infom)alion Auditors The auditors, WR Partners. have indicated their willingness lo continue in office. The designated Governors will Propose a motion reappointing the auditors at a meeting of the Governors. Approved by ordei of the members of the board of Governors and Signed on their behaw by.. Mrs S Verlty Chaii of Governors MrABe ey Chair ol I e Finance and General Purpose Committee Dale.. 13laG Page 19
THE KING'S SCHOOL. CHESTER STATEMENT OF GOVERNORS. RESPONSIBIUTIES FOR THE YEAR ENDED 31 AUGUST 2025 The Govemors are responsible for preparing the Govemors. report and the finanaal statements in accordance th applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England & Wales requires the Govemors to prepa financial slalemenls for each financial which give a true and fair view of the slate of affairs of the Group and the Charity and of their incoming resources and applicath)n of resourcgs. including their income and expenditure, for that period. In preparing these financial stalemenls, the Governors are requId lo.. select suitsble 8ecounling policies and then apply them consistently, observe the methods and principles of the Charities SORP IFRS 1021., make judgments and accounting eslimales that are rèasonable and prudent- slate whether applicable UK Accounting Standards IFRS 1021 have been followed, subject to any material departures disclosed and explained in the financial stalemenls., prepare the financial slalemenls on the going concern basis unless il is inappropriate lo presume that the Group will continue in business. The Governors are responsible for keeping adequate accounling records that are sufficient lo show and explain the Group and the Charity's transactions and dis¢lose with reasonable accuracy al any time the financial position of the Group and the Charity and enable them lo ensure that the financial slalements comply wrth the Charilies Act 2011, the Charity (Accounts and Report51 Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Group and the Cha¥ity and hence lor taking reasonable steps for the prevention and detection ol fraud and other irregularities. The Govemors are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legi51alM)n in the United Kingdom governing the preparation and dissemination of financial slalemen15 may drffer from legislation In other jurisdictions. The Govemors who were in office on the dale of approval of these financial statements have confimed as far as they are aware that therè is no relevant audit information of which the auditor is unaware. Each of the Governors has confirmed that helshe has taken all of the steps that helshe ought to have taken as Governors in order to make Ihemsefves aware of any Tebevanl audf( inlomialion and to estsblish that il has been communicated to the auditor. Page 20
THE KING'S SCHOOL, CHESTER INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE KING'S SCHOOL. CHESTER Opinlon We have audited the financial slalements of The King's School, Chester Ilhe 'parenl charity'l and ils subsidiarie$ {the 'group'l for the year ended 31 August 2025 which compTl8e the Consolidated slalemenl of financial aclivilies, the Consolidated balance sheet, the Charity balan sheet, the Consolidated statement of cash flow8 and the related notes, including a summary of significant accounting policies. The financial porting framework that has been applied in their pr6paralion 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. Iuniled Kingdom Generally Accepted Accounting Practice). The financiai statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards appli¢able in the UK and Republic of Iland IFRS 1021 in preference to the Accounting and Reporting by Charities.. Slalement of ReMmmended Practice issued on 1 April 2005 which is referred lo in the extsnl regulations but has been withdrawn. This has been done in order for the accounts to provide a true and fair view in accordance wrth the Generally Accepted AOuntIng Practice effective for reporting periods beginning on or aft¢1 1 January 2015. In our opinion the linancial 5tatements'. give a true and fair view of the slate of the Group's and of the parent charitys affairs as al 31 August 2025 and of the Group's incoming resources and application of Tesources, including ils ineome and expenditure fof the year then ended., have been properfy prepared in accordance wrth United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audr( in accordance wrth International Standards on Auditing IUKI IISAS IUKII and appIable law. Our responsibilitie8 under those standards are further described in the Auditors. responsibilities for the audit of the financial 5talemenls section of our report. We are independent of the Group in accordance with the ethical requirements that are r&lgvant to our audit of the financial ststements in the United Kingdom, including the Finanaal Reporting Council's Ethical Standard. and we have fulfilled our other elhi¢al responsibilities in accordan with these requirements. We believe that the audit eden we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concorn In auditing the financial statements, we have concluded that the Govemors, use of the going concern basis of accounting in the preparation of the financ1 statements is appropriate. Based on the work we have performed, we have not identified any material uneertainties relating lo events or conditions that, individually or colSgclively, may Cast significant doubt on the Group's or the parent charitls ability to continue as a going Concern for a pariod of al least tsvelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilrties of the Govemors with respect to golng concern are described in the rdevanl sections of this report. Page21
THE KING'S SCHOOL, CHESTER INDEPENDENT AUDITORS. REPORT TO THE MEPIBERS OF THE KING'S SCHOOL, CHESTER {CONTINUEDI Other information The other information comprises the infDrm*ion included in the Annual report other than the financial slalements and our Audilor5' report Ihereon. The Govefnors are responsible for the other information Contained within the AnnLtal report. Our opinion on the financial slalemenls does not cover the other inlormation and, except lo the extent otherwise explicitly 51aled in our report. we do not express any form of assurance conclusion Ihereon. Our responsibility is lo reall the other information and, in doing so, consider whether the other Information is materially inconsislenl with the financial statements or our knowledge obtained In the course of the audrt, oi otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material mis5talements, we are required to delemine whether this gives rise lo a material misslalemenl in the financial stslements themselves. If, based on the work we have perfomied, we conclude that there is a material misslalemenl of this other information, we are required to report that fact. We have nothing lo report in this regard. Matt6rs on which we are required to raport by exception We have nothing lo report in respect of the folk)wing matter5 where the Charities IAccounts and Reports) Regulations 2008 requires us to report lo you if, in our opinion.. the information given in the Governors. report is inconsistent in any material respect wrth the financial stalemenls., or the parent Charity has not kept sufficient accounting records," or the parent Charrty financial statements are not in agreement with the accounting records and relums.. or we have not ceiVed all the Information and explanations we require for our audit. Rgsponslbllltles of trustees As explained more fully in the Governors, responsibilities slalemenl, the Governors are responsible for the prepaolion of the financial statements which give a true and lair view, and lor such internal control as the Govemors determine is necessary to enable the preparation of financial statements that are free frtsm material lnisslalemenl. whether due lo fraud or error. In preparing the financial stslemenls. the Governors are responsible for assessing the Group's and the parent charitys abilty to continue as a going concern. disclosing, as applicable, Tnatters related lo going concern and using the going concern basis of accounting unless the Governois either Intend lo liquidate the Group or the Parent charity or lo cease operations, or have no aliStiC akemalive bul lo do $0. Page 22
THE KING'S SCHOOL, CHESTER INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE KING'S SCHOOL. CHESTER ICONTINUEDI Audltoys. r8sponslbllitles for the audlt of the flnanclal statements We have been appointed as aud+tor under section 151 of the Charities kl 2011 and report in accordance wf(h the Act and relevant regulations made or having effect thereunder. Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. and lo issue an Auditors, report that includes our opinion. Reasonable assuranc9 is a high level of assurance, bul is not a guarantee that an audrt conducted in accordance wrth ISAS IUKI wll always delecl a material misslalemenl when il exists. Misslalements can arise from fraud or error and a considered material if, individually or In the aggregate, they COU reasonably be expected lo influence the economic decisions of users taken on the basis of these financial stalemenls. Irregularities, includin9 fraud, are instances of non-compliance with laws and regulations. We design proceduTes in line with our responsibilities, outlined above, to detect material misslalemenls in respect of irregularities. including fraud. The extent lo which our procedure5 are capable of delecling irregularities, including fraud 1$ detailed below.. We reviewed the susceptibility of the charitys financial statements lo maerial mi$$tatement and identified the principal risks, implementing a series of testing procedures lo provide us with sufficient comfort lo issue our opinion. We rewewed the chaTty's regulatory enwronmenl to ensure we could conclude that (( had acted in accordance wf(h the framework relevant lo the Charity and its environment and identify any instances of non<ompliance. We also assessed the charity's intemal control procedures lo ensure we could appropriately scrutinise these controls and establish whether our understanding of the control environmont was sufficient lo supplement our additional lesling procedures. The engagement team consisted of a team that the engagement partner believes is equipped wrth the relevant level of technical and ¢harily awareness lo carry out our work lo the required standard. Because of the inheTenl limitations of an audit, there is a risk that we will not delecl all irregularities, including those leading lo a material misstatement in the financial slalom8nls or non4omplian¢e with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions refflected in the financial statements. as we will be less likely lo become aware ol instances ol non-cc4npliance. The risk is also gre*er regarding irregularities occurring due lo fraud rather than error, as fraud involves intentional concealment, forgery, eollusion, omission or misrepresentation. A further description of our responsibililios for the audit of the financial statements is located on the Financial Reporting Council's websrte at.. vMw.frc.oi .ukJauditorsres onsibilities. This description lorms part of our Auditors, report. Page 23
ThE IQNG'S SCHOOL, CHESTER INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE KING'S SCHOOL. CHESTER ICONTINUEDI Use of our report This report is made solely to the ¢harty's Iruslees. as a body. in accordance with Part 4 of the Charitie5 (Accounts and Reports) Regulation5 2Q08. Our audit work has been undertaken so that we might slate to the charitys trustees those matter5 we are required lo slate lo them in an Auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility lo anyone other than the charity and its Iru5tees, as a body, for our audit work, for this report, or for the opinions we have formed. Pkn-7E WR Partners Chartered Accounlanls Stalulory Auditors Belmont House Shrew5bury Business Park Shrewsbury Shropshire SY2 6LG Date.. 23 March 2026 WR Partners are eligible lo act as auditors in terms ol section 1212 of the Companies Act 2006. Page 24
THE KING'S SCHOOL. CHESTER CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2026 Endowment funds 2025 £000 Rèstricted Unrestricted funds funds 2025 2025 £000 Total funds 2025 £000 Total funds 2024 Note Incoffle and endowments from.. Donations and legacies Charitable activf(ies Other trading aclNrties Investments Other inc¢yne 20 213 324 16,683 147 16,975 139 115 199 16,975 139 241 199 126 282 72 Total income and endowments 17,641 17,787 17,508 Expenditurn on: Raising ftjnds Charitable activi(ies 10,11 27 103 131 16,483 114 15,974 215 16.288 Total expenditure 242 16.371 16,613 16,088 Nel lexpendlture}lincome bofore net gains on investments 1961 1.270 1.174 1,420 Net gains on investments Net movement in fundy before other recognised galnslllossesl Actuarial gains on defined benefit pension schemes 163 183 412 67 1,270 1,337 1.832 29 194 194 84 Ngt movement In funds 67 1A64 1.531 1,916 Page 25
THE KING'S SCHOOL, CHESTER CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 Endowmont fund$ 202S Restricted Unrestricted funds funds 2025 2025 £000 £000 Total funds 2025 £000 Total funds 2024 Noto Reconciliatlon of funds- Total funds brought foard Nel movement in funds 238 4,420 67 20,527 1,464 25.185 1.531 23.207 1,916 Total funds carried forward 238 4,487 21,991 26.716 25,183 The Consolidated Slalement of Financial Ad1vil$ includes all gains and losses recognised in the year. The notes on pages 32 10 60 form part of these financial statement5. Page 26
THE KING'S SCHOOL, CHESTER CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2025 2025 £000 2024 £000 Note Flxed assets Tangible assets Investments 16 17 20,023 19.857 4, 169 24,466 24,026 Current assets Stocks Dabtors Investmènts Cash at bank and in hand 18 19 20 10 5.432 7.341 4,710 16 3.020 11,915 4,267 17,493 19,218 Current Ilabilities Credltors.. amounts falling due within one year 21 {12,131) (11, T67? Net current assets 5.362 7,451 Total asset$ less current Ilabilitles 29.828 31,477 CTedilors'. arnounts falling due after more than one year 22 {4,725) 17,652) Ngt a$S8ts ax¢ludlng pen$lon au¢t Defined benefit pension 5theme as5el 25,103 23,825 29 1,612 1.360 Tota5 net assets 26,71 S 25,185 Page 27
THE KING'S SCHOOL, CHESTER CONSOLIDATED BALANCE SHEET ICONTINUEDI AS AT 31 AUGUST 2025 2025 £000 2024 £000 Note ChaTlty fund$ Endowment funds Reslricled fvnds Unreslricled funds 23 23 238 4.486 238 4.420 Unrestricted funds excluding pension asset Pension serve 23 20.379 1.612 19,16T 1,360 23 Total unreslTlCted funds 23 21,991 20.527 Total fund$ 26,715 25, 185 The financial statements were approved and authorised for issue by the Govgmors and signed on their behalf by.. ?J£ S Verity Governor A Bentlèy Governor Dats.. 13kG The notes on pag6s 32 to 60 form part of these financial statements. Pège 28
THE KING'S SCHOOQ CHESTER CHARITY BALANCE SHEET AS AT 31 AUGUST 2025 2025 £000 2024 £000 Nots Fixed a$s8ts Tangible assets Investments 16 20,023 4,493 79,867 4,219 17 24,516 24,076 Curr•nt a$sots Stocks 18 19 10 5,410 7,341 4,521 16 Debtors 2.99Q 11,915 4,084 Investments Cash al bank and in hand 20 17282 19,005 Curront Ilabllltles Creditors.. amounts falling due within one year 21 112.0371 (11.694) Not current assets 5,24S 7.311 Totsl ass8ts 10$$ ¢urr•nt Ilabllltlos 29,761 31,387 Creditors.. amounts falling due after more than one year 22 (4,725) (7,652) Net assots excluding ponsion assot Defined benefit pension scheme asset 25.036 23.735 29 1.612 1.360 Total ng1 a$$ots 26,648 25,095 Page 29
THE KING'S SCHOOL. CHESTER CHARITY BALANCE SHEET ICONTINUEDI AS AT 31 AUGUST 2025 2025 £000 2024 £000 Note Charlty funds Endowment funds Restricted funds Unrestricted funds Unrostri¢led funds excluding pension asset Pension reserve 23 238 4.486 221 4,425 23 23 23- 20.302 1,612 19,089 1,360 Total unrestrictod funds 23 21.924 20,449 Total funds 26,648 25,095 The financial statements were approved and aulhorised for issue by the Govemors and signed on their behalf by.. S Verlty A 88ntl•y Date.. 013116 The notes on pages 32 to 60 form part of these financial stalemenls. Page 30
THE KING'S SCHOOL. CHESTER CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2025 2025 £000 2024 Note Cash flows from operating acllvlfjos N8t cash used in operating activities 25 12.640) 14,345 Cash flows from Investlng actlvities DThiidends, interests and rents from investmen15 Purchase of tangible fixed assets Proceeds from sale of investments Purchase of investments 282 (1,454) 297 (422J {6471 Net cash used in lTrvestlng a¢tlvltlg$ 11,4891 {1.297} Cash flows from flnanclng actlvltles Repayments of borrowing 13131 (463) Net cash used In financlng activities (3131 {4631 Chang? In cash and cash oqulvalents In the yoar Cash and cash equivalents at the beginning of the year {4,4421 18.182 12.585 3.597 Cash and cash equlvalents at thè end of tho year 26 11,740 16.182 The notes on pages 32 10 60 form part of these financial Statements Page 31
THE KING'S SCHOOL. CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 General Information The King's School, Chester is an unin¢orporaled charitable trust Icharily no. 5259341. registered in England. The School is a public benefit enlty. The School's address is The King's School, Wrexham Road, Chester, CH4 7QL. The object of the charity is the provision and conduct, in or near Chester, of a school for boys and gir15, in connection with the cathedral at Chester. The principal a¢tNrty of the School is the provision of an Infant, Junior and Senior School and Sixth Form. Accounting policies 2.1 Basis of praparatlon of financlal statements The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charrties.. Statement ol Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 1021 leffeclive 1 January 20191, the Financlal Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011. The finanGial $18lemenls have been prepared to give a 'triJe and fairf view and have departed from the Charities IAccounls and Reportsl Regulations 200e onty lo the extent required to provide a 'lrue and fairf view. This departure has involved following the Charities SORP {FRS 1021 published in October 2019 rather than the Accounting and Reporting by Charities." Statement of Recommended Practice effective from 1 April 2005 which has since been wrthdrawn. The King's School, Chester meets the definition of a public bènefit entity under FRS 102. Assets and liabilities are initially recognised al hisloncal cost or transaction value unless otherwise slated in the relevant ae¢ounling policy. The Consolidated slalemenl of financial activities ISOFAI and Consolidated balance sheet consolidate the financial statements of the Charrty and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. 2.2 Going concem After making enquiries, the Govemors have a reasonable expect81ion that the School has adequate resources lo continue in operational existence for the foreseeable future. The School therefore continues lo adopt the going concern basi5 in preparing rts financial slalements. Page 32
THE KING'S SCHOOL. CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 Accounting poli¢io$ Icontlnuedl 2.3 Income All income is recognised once the Group has enlillem¢nl lo the income. it is probable that the income will be received and the amount of income receivable can be measured reliably. The recognilK)n of incorne from donations, gifts and legacies is dependent on establishing enlillemenl, the probabilty of receipt and the abilty lo estimate with sufficient accuracy the amount receivable. Income received for the general purposes of the School is included as unrestricted funds. Income for activities restricted by the wishes of the donor is taken lo restficted funds where these wishes are legally binding on the Governors. Income reqUId lo be retained as capitsl in accordance wth the donols wshes is accounted for as endowments. Grants are included in the Consolidated stalemgnt of financial activilios on a receivable basis. The balan of income received for specffic purposes bul not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entittemenl of receipt. ils recognition is deferred and included in creditors as deferred income. Where enlitlemenl occurs befe income is received, the Irome is aecrued. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. Other income is recognised in the perTod Sn which It Is receNable and lo the extent the goods have been provided or on completion of the service. The School offers a number of bursaries each year lo ils pupils. All families in receipt of a bursary are means lesled with the level of bursary awarded dependent on the family income and assets. All bursaries are subject to annual vIeW. In addition. the School offers a small number of scholarships lo pupils each year for perfonnance in the senior school entrance exam. The individual scholarship awards are for no more than £500 and are a one off amount. 2.4 Expendlture Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third paty. it is probable that a transfer of economic benefits will be required In selllement and the amount of the obligation Can be measured reliably. Expenditure is classified by a¢tNily. The costs of each activity are made up of the tol81 of direct costs and shad costs. including support costs involved in undertaking each aclivty. Direct costs attributable lo a single aclivty are allocated direclty lo that activity. Shared costs which contribute lo more than one aclivrty and support costs which are not attributable lo a single activity are apportioned b&een those activities on a basis Cgnsislenl with tha use of resources. Central staff Costs are allocated on the basis of time spent, and depreciatjon charges allocated on the portion of the asset's use. EXpend((U on faising funds includes all expendf(ure incurrad by the Group to raise funds lof its charitable purposes and includes costs of all fundraising activiÉies events and non<harilable trading. Expenditu on charitable 8CtwiÉies is incurred on directly undertaking the acts'vrties which further the Group's objectives, as well as any associated support costs. A proportion of the expendilLsre is inclusive of irrecovgrable VAT. Page 33
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 Accounting policies Icontinuedl 2.5 Interest recelvable Inl&resl on funds held on deposit is in¢luded 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. 2.6 Tangible fixed assets and deprnciation Tangible fixed assets costing £1,000 or more are capilali5ed 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, langible fixed assets are measured at cost less accumulated depreualion and any accumulated impairment losses. All ¢osls incurred lo bring a iangible fixed asset into Ils intended working condition should be induded in the measurement of cost. A55ets in the ¢our5e of construction are included al costs irUrred to dale. Depreciation on these assets is not eharged until they are brou9hl into use. Depreciation is charged so as lo allwate the cost of tangible fixed assets less Iheii SIdUal value over their eslimaled useful lives. using the slraighl-line method. Depreciation is provided on the following bases.. Freehold property Long-lemi leasehold property Fixtures and rIng$ - 2.5% - 6.66- 33.30 2.7 Investments Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured al fair value al the Balance sheet dale, unless the value cannot be measured reliably in which case rt is measured at cost le55 impairment. Investment gains and losses, whether realised or unrealised, aTe combined and PTe5enled as 'Gain51lLos5es} on investments. in the Consolidated statement of financial aclmlies. Investments in subsidiaries are valued at cost less provision for impaimient. 2.8 Stocks Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. 2.9 Debtots Trade and other debtors are re¢ognised at the settlement amount after any trade discount offered. Prepayments awe valued at the amount prepaid net of any trade discounts due. 2.10 Cash at bank and in hand Cash at bank and in hand includes ¢a5h and short-lerm highly liquid Inve51menls with a short maturity of three months or less from the dale ol acquisition or opening of the deposit or similar account. Page 34
THE KING'S SCHOOL. CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 Accountlng pollcles lcontlnuedl 2.11 Liabilities Liabilitiès and provisions are recognised when there is an obligation al the Balance sheet dale as a result of a past event, it is probable th81 a Iransfef of economic benefit will be required in Settlement, and the amount of the settlement can be eslimaled reliably. Liabilities are recognised a the amount that the Group anlicipales f( will pay to settle the dobl or the amount rt has received as advanced payments for the goods or services it must provide. Provisions are measured al the best estimate of the amounts required to settle the ¢Jbligation. Where the effect of the lime value of money is material, the provision is based on the present value of thoso amounts, discounted al the pre-tax discount rale that reflects the risks specific lo the liability. The unwinding of the discount Is re¢o9nised in the Consolidated ststemenl oi financial actNities as a finance cost. 2.12 Flnanclal Instmments The Group only has financial a$sels and financial liabilitsos of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value wlh the exception of bank loans which are subsequent measured al amortised cost using the effective interest method. 2.13 Flnance1oa$es and hire purchas• Assets obtained under hire purchase contracts and finance teases are capilalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease lem and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Group. Obligations under such agreements are included in credi(ors, nel of the finance charge allocated to future periods. The finance 01gmonl of the rental paymgnl is charged lo the Consolidated statement of financial activities so as to produce a constant periodic rale of charge on the net obligation outstanding in each period. 2.14 Operating leases Rentals paid under operatin9 leas8$ a charged lo the Consolidated statement of financial activities on a straight line basis over the lease tem). Page 35
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 Accounting policies (continu} 2.15 Pensions Reliremenl benefits to employees of the Schoc4 are provided through three pension schemes, iwo defined benefit and one defined ntribUtIon. The pension costs are charged in the Slalemenl of Financial Activities and are detemined as follow5.' al Teachers, Pension Scheme the School contributes lo the Teachers, Pension Defined Benefits Scheme al rates sel by the scheme actuary and advised to the Board of the scheme adminislralor and are ¢harged in the period in which the salaries lo which they relate are payable. The Scheme is a murti-employer pension scheme and it is not possible lo identify the assets and liabilities of the scheme which are attributable to the School. In accordance with FRS102 therefore, the scheme is accounted for as a defined contribution scheme. bl The School Support Staff Pension the School also conlribules lo a defined benefit scheme for a numbei of support staff al rates advised by the scheme actuary. The defined benefit pension scheme current service cosls are charged to the Statement of Financial Activf(ies within 51aff costs. The expected return on the scheme assets les5 the scheme interest costs are credited wrthin other interest. The scheme a¢aral gain5 and 1055es are recognised immediately as other recognised gains and losses. The defined benefit scheme assets are measured at fair value at the Balance Sheet date. Scheme liabilities are measured on an actLJarial basis at the Balance Sheet dale using the projected unil method and discounted al a rate relevant lo the cuirent rate of return on a high qualrty corporate bond of equivalent term lo the scheme liabilities. The re5ulling defined benefit asset or liabslty 15 presented separately after other net assets on the face of the Balance Sheet. cl The School Personal Pension Scheme - the School operates a personal pension scheme wth Scottish Widows for support 51aff not in the above defined benefits scheme. This is a money pur¢ha$e scheme under which the School contributes a matching amount lo the employee up lo a maximum of 50A of pensionable salary per annum. The GrosJp operates a defined benefits pension scheme and the pension charge is based on a full actuarial valuation dated 2 December 2018. 2.16 Fund ac¢ountlng General funds are unrestricted funds which are available for use al the discretion of the Governors in furtherance of the general obje¢tives of the Group and which have not been designated for other purposes. Reslricled funds are fund5 which are lo be used in accordance with specrfic reslriclion5 imposed by donor5 or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restrbcled fund is set out in the notes to the fi'nancial statements. Endowment funds are funds which have been given for a specrfic purpose and the capital has lo be maintained. Investment income, gains and losses are alloc8led lo the appropriate fund. Page 36
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 Critlcal accounting estlmates and arna$ of Judgment Eslimales and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed lo be reasonable under the circumstances. Critical aCuntIng estimates and assumption5'. The Charty makes estim81es and assumptions concerning the future. The resulting accounting eslimales and assumptions will. by definf(ion. seldom equal the related actual results. The estimates and assumptions that havg a significant risk of causing a material adjustment lo the carrying amounts of as5els and liabilities within the nexl financial year are discussed below. Penslon scheme valuatlon assumptlons Assumptions have been made by the actuary in calculating the valuation of the defined benefit nSIOn scheme al the year end. Details of the assumptions made are included within the pensions note. Critical areas of judgment- A provision for impaimenl of fee debtors is established when there is objective eviden that the arnounls due will not be collected in line with the usual fee colledions due to finanrAal difficuty of the parents. Page 37
THE KING'S SCHOOL. CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 Income ffom donations and legacle$ Restricted Unre$lricted funds nds 2025 2025 £000 £000 Total funds 2025 £000 Tol81 fun(Js 2024 Donations 20 213 233 324 Total 2025 20 213 233 324 Total 2024 87 237 324 Income from charitable activities Unrestricted funds 2025 Total funds 2025 £000 Total funds 2024 School fees Other educational inccffle Other ancillary income 16,786 108 e1 16,786 108 81 16,520 104 59 Total 2025 16,975 16.975 16, 683 Total 2024 16,683 16,683 School fees 2025 £000 2024 Gross fees receivable Less. scholalships, bursaries and other discounts 18.087 11,3011 17,746 (1,226) 16.786 16.520 Page 38
THE KING'S SCHOOL. CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 Income from other trading adlvltles Income from non ¢harltable trading activltles Unrestricted funds 2025 £000 Total funds 2025 £000 Total funds 2024 Kin9's Space income 139 139 147 Total 2025 139 139 147 Total 2024 147 147 Investment Ineome Restricted Unrestrictod funds funds 2025 2025 £000 £000 Tol fvnds 2024 funds 2025 £000 Dividends Bank interest 123 115 238 279 Total 2025 126 115 241 282 Total 2024 105 177 282 Page 39
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 202S Other incoming resources Unrestricted funds 2025 £000 Total funds 2025 £000 Total funds 2024 £000 Capital income other income 153 153 46 72 Total 2025 199 199 72 Total 2024 72 72 10. Expenditure on raising funds Costs of raising voluntsry Income Unrestricted funds 2025 £000 Total funds 2025 £000 Tolal funds 2024 £000 Fundraising for voluntary rèsources- Staff costs Costs of raising voluntary income- Nl Costs of raising voluntary income- pension costs 37 37 Total 2025 42 42 Tot812024 34 34 Page 40
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 10. Expendlture on raising lund$ Icontlnugd} Fundraising trading *xynses Unr•strlcted funds 2025 £000 Totsl funds 2025 £000 Tol81 fvnds 2024 King's Space Limited expenditur8 61 61 57 Totsl 2025 61 61 57 Total 2024 57 57 11. Inv•stment management Costs Ro$tri¢tod funds 2025 £000 Totsl fund$ 2025 £000 Tot81 lunds 2024 £000 Investment management fees 27 27 23 Total 2025 27 23 Total 2024 23 23 Page 41
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 12. Analysis of expend5ture by activiti Activities undertaken directly 2025 £000 Total fun(Is 2025 £000 Total funds 2024 Teaching Teaching Support Welfare Premises Support 9,484 1,201 68 2,616 3,114 8,829 I, t49 83 2, 746 3, 167 1,201 68 2,616 3,114 Total 2025 16,483 16,483 15.974 Total 2024 15, 974 15,974 Analysis of dirgct Costs Teaching Support 2025 Teaching 2025 £000 Welfare 2025 £iioo Premises 2025 £000 Staff costs 8,573 51 160 303 397 1,071 65 668 1,017 Depreciation Olh@r Staff Costs Teaching Aids Other Educational Expenditure Catering 129 369 562 Premises Mainlen8nee IT & Communications Welfare Banking & Finan Professional Expenditure Total 2025 9.484 1,200 68 2,616 Total 2024 8,829 1, 149 83 2. 746 Page 42
THE KING'S SCHOOL CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 12. Analysls of expendlture by activities Icontinuodl Analysis of direct costs Icontinuodl Total fund$ 2025 £000 Total funds 2024 Support 2025 £000 Staff costs Dep¢18110rn Other Staff Costs Teaching Aids other EdutIonal Expendf(ure Catering 1,101 176 11,478 1,244 160 303 526 1,082 389 10,733 1,232 120 327 550 1,062 265 1,082 Premises Maintenance IT & Communications Welfare Banking & Finance Professional Expenditure $62 865 264 246 246 48 461 48 461 88 463 Total 2025 3,114 16.482 15,974 Total 2024 3, 166 15, 974 13. Auditors. romungratlon 2025 £000 2024 £000 Fees payable to the Charty's auditor for the audit of Ihg Charity's annual accounts 19 17 Page 43
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 14. Staff costs Group 2025 £000 Group 2024 Charity 2025 £000 Charity 2024 Wage5 and salanes Social securrf(y costs Contribution to defined contribution pension schemes 8.758 1.029 8,407 879 8,758 1,029 8,407 879 1.761 1.503 1,761 1,503 11.548 10, 789 11,548 10,789 During the year there were redundancy or temiination payinenls lolalling £nil 12024.. £60kl paid lo nil members of slaff12024'. 2 member of $taffj. During the year there were agency costs lotalling £41k12024'. £nill relating ta members of staff. The average number of persons employed by the Charity during the year was as follows.. Group 2025 No. Gn)up 2024 No. Employees 244 241 The number of employees whose employee benefits {excluding employer pension coslsl eK¢eeded £60.000 was Group 2025 No. Group 2024 No. In the band £60.001- £70,000 In the band £70,001- £80,000 In the band £80.OQ1- £90,000 In the band £100,001 - £110,000 In the band £11Q,001- £120,000 In the band £180,001- £190.OQO In the band £200.001- £210,000 28 20 The key management personnel of the School are listed on page 1. The total amount of employee benefi15 (including emptyer pension contributions and employer national insurance conlribulionsl received by key management personnel for their services to the Charity was £426k12024.' £399kl. Page 44
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 15. Govemors. rgmuneratlon and exn$9$ During the year, no Governors received any remuneration or other benefits (2024- £NIL). During the year ended 31 August 2025. no expenses were reimbursed or paid direct lo Govemors. During the year ended 31 August 2024, no expenses were reimbursed or paid directty lo Governons. 16. Tanglble flx8d assets Group and Charlty Long-term leasehold Flxtures and prortY flttings £000 £000 Freehold property £000 Total £000 Cost or valuation At 1 September 2024 Addrtion5 Disposals 18 21,389 8,096 1,411 19851 29,603 1,411 (9851 At 31 August 2025 18 21,389 8.522 29,929 Dopreclatlon Al 1 Septembef 2024 Charge for the year On disposals 12 3,588 772 19861 472 1.246 19851 Al 31 August 2025 14 6.517 3.375 9,906 Net book valuo Al 31 August 2025 14.872 6.147 20.023 At 31 Augusl 2024 15,344 4,508 19.858 Page 45
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 16. Tangible fixed assets {continuedl Group and Charity {contlnu8dl Leasehold Propgrty The School occupies 33 acres of land by Wrexham Road. adjacent lo the Chester business park. The sile was acquired under a 999 year lease granled, without premium. lo The King's School in 1956 by the Giosvenor Eslale. The lease provideg for a yearfy rent of £300, restricting the use of the property lo educational purposes. No value is attributed in the financial slalemènts to the land under the residue of the lease. The School is responsible for all repairs, maintenance and insuranGe of the building5 erected on the leased prèmises. All of the assets are held for the School's own use on direct chantable activities. 17. Fixed assgt Investments Listed Investments £000 Group Cost or valuation Al 1 September 2024 Additions 4.169 $47 Disposals Revaluations 14691 196 At 31 Augvst 2025 4.443 Net book value Al 31 August 2025 Al 37 August 2024 4,169 Page 46
THE KING'S SCHOOL. CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 17. Flxed asset Investments Icontinuedl Investments In subsidiary Llsted companies Invgstmonts £000 Total £000 Charity £000 Cost or valuation Al 1 September 2024 Additions Disposals Revaluations 50 4,169 547 4,219 547 {4691 196 14691 196 Al 31 August 2025 4A43 4.493 Not book value Al 31 August 2025 4.443 4N93 Al 31 August 2024 4, 169 4,219 Principal subsidiarlos The following was a $ubsKliary undertaking of the Charty.. Name Company number Holding Included In consolidatlon King's Space Limrted 11067044 The financial resutts of the subsidiary for the year were.. Name In¢om• £000 Expenditure £000 Profiv ILo$sl for theyear £000 Net assets £000 King's Space Limrted 139 {611 78 128 Page47
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 18. Stocks Group 2025 £000 10 Group 2024 £000 16 Charity 2025 £000 io Charily 2024 Catering stock 16 19. Debtors Group 2025 £000 Group 2024 Charity 202S £000 Charity 2024 Due within one year Trade debtors Other debtors Prepayments and accrued income 4,870 S7 2,444 155 421 4,869 57 2,431 155 505 404 5,432 3,020 S,410 2,990 20. Current asset Investments Group 2025 £000 7.341 Group 2024 £000 11,915 Charity 2025 £000 Charity 2024 Unlisted inveslmgnls 7,341 11,915 Pe 48
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 21. Creditors: Amounts falllng duo wlthln ong ygar Group 2025 Group 2024 £(XJO Charlty 202S £000 Charity 2024 Bank foans Deposits rgcgived in advance Trade creditors Other taxation and social security Obligations under finance lease and hire purchase contrads Other creditors 124 592 814 1.052 462 124 462 586 592 199 592 814 1.043 586 592 195 59 485 9,005 52 261 59 52 263 473 Accruals and deferred income 9,615 8,932 9,544 12,131 71,767 12.037 11,694 Group 2025 £000 Group 2024 £000 Deferred income at 1 September 2024 Resources deferred during the year Amounts released from previous periods 16,654 6,623 16,654 {6,623J {1,0311 15.623 18, 654 Deferred income relates to income received under the School's advanced fee scheme contracts for education not yel utilised to settle school fees and cash received in advance for the forthcoming period. 22. Creditors: Amounts falling due after more than one year Group 2025 £000 Group 2024 Charity 2025 Èooo Charity 2024 £000 Bank108ns Net obligations under finance lease and hire purchase contracts Accruals and deferred income 124 124 305 14 7,514 305 4,420 74 4.420 7,514 4,725 7.652 4,725 7,652 In October 2020 three loans held by the School with Royal Bank of Scotland were consolidated into one single loan of £2.365k wrth Handelsbanken. The loan is over a 5 year tem) and the interest rates are al 7.93'/o at year end. Both repayments and interest are paid quarterfy. The loan is secured by a first legal Chafge over The King's School, Chester, CH4 7QL and ils associated assets. Page 49
THE KING'S SCHOOL. CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 23. Statement ol funds Statement of funds - current ygar Balance at 1 September 2024 £000 Balance at 31 August 2025 £000 Transfers inlout £000 Gainsl (Losses) £000 Income Expenditure £000 £000 Unrestricted funds Unrestricted Funds King's Space Pension reserve 19,078 89 17,S02 139 (16,3681 1611 58 90 190) 20,302 77 1,612 1.360 194 20.527 17.641 (16,371) 194 21,991 Endowmont funds Prize and Exhibition Capital Fund Lester Smith Capital FLknd 130 130 108 108 238 238 Page 50
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 23. Statsmgnl of funds {contlnuedl Balancg at 1 Soptembèr 2024 £000 Balan¢0 at Gain$1 31 August {Lossesl 2025 £000 £000 Transfer$ Inlout £000 Income Expendlture £0 Restrlcted funds Prize and Exhibrtion Income Fund Donations Fund The King's School 8ursary Trust Fund Lester Smith Income Fund 398 {74} 330 3.821 134 {1521 149 3.9S2 200 {171 14 203 4.420 12431 163 4,486 Total of funds 2S,185 17.787 116,6141 357 26.715 Page 51
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 23. Statement of funds Icontinuedl Lester Smith Fund {linked chartyl This fund was established Ljnder the Will of an Old King's Scholar. The Governors of The School for the time being comprise the Iruslees. The funds are held for the benefit of pupils al The School and contributions out of income are made lo support worthy pupils whose families would not otherwise be able lo pay the lees. Income consists of investment income of £6k12024.. É7k}. Expendiluro consists of costs on ra¢sing funds of £17k12024-. £2kl. The Trust also had gains on investments of £14k12024". £20kl. The King's School Bursary Trust Fund (linked charltyl This fund was established by a trust deed dated 8th May 1969. The Iruslee5 shall be not more than ten in number including the Chaimian of the Governors and the Headmaster. So far as possible, there should be representation on the Iruslees body from the Chester Association of Old King's S¢holafS, The King's School Parents. Association and the Staff of The School. The trustees hold the funds and the income therefrom essenli81Sy lo make contributions towards the payment of fees of any scholar whom the Iruslees in their ab501ule discretion consider worthy of as5151ance. The trustees havo wide powers lo further the advancement ol education. Income consists of investment income of £116k 12024.. £95kl and donations of £17k 12024." £87kl. Expenditure consists of costs on raising funds of £26k 12024. £21kl and expenditure on charitable activities of £127k (2024." £117kl. The Trust also had gains on investments of £149k12024.. £393kl. Prize & Exhibition Income Fund This fund was established to generate addrtional income fof The School. Donations Fund Restricted income received from donors. Funds are restricted when they have been gwen or raised for a spe¢ili¢ purpose. Includes income received for spècific activities such as Special EduGalional Needs ISENI, CCF training for pupils and optional language classes. Page 52
THE KING'S SCHOOQ CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 23. Statement of funds l¢ontlnuedl Statemont of funds - prlor year Balance al I September 2023 £000 Balance al 31 August 2024 Trdnsfe in/out £000 Gain (Losses? Income Expenditure £000 Unrestricted funds Unrestricted Funds King's Space Pension reserve 17.689 92 17,169 147 (15,860) (58) 52 80 (92) 19,078 89 1.360 1,224 84 19,005 17,316 (15,866) (12) 84 20,527 Endowment funds Prize and Exhibrtion Capital Fund Lesler Smith Caprtal Fund 113 17 130 708 221 17 238 Restrlctod funds PrEe and Exhibition In¢ome Fund Donations Fund The King's School Bursary Trust Fund f5J 475 {81) 398 3,385 182 (138) 392 3,821 Lesler Smrth Income Fund IT5 (2) 20 200 4,041 193 (221) (5) 412 4,420 Total of funds 23,267 17,509 (16,087) 496 25,185 Page 53
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 202S Analysis of not assgts between funds Analysis of net assots between funds - currant year Endowment Restricted Unrèstricted funds fvnds funds 2025 2025 2025 £000 £000 £000 Total funds 2025 Tangible fixed assets Fixed a5sel investments Current assets CTedilors due within one year Creditors due in more than one year Provisions for liabililies and charges 20.023 20,023 239 4,205 281 18,674 113,5921 14,7251 1,612 18,956 113,593) 14,725) 1,612 Total 239 4.486 21,992 26,715 25. Reconciliation of net movement in funds to net cash flow from operatlng actlvitiey Group 2025 Group 2024 Nel income for the year las per Slalement of Financial Actiwtiesl 1,337 1,832 Adjustments for: Depreciation Charges loss on investments Dividends, interests and rents from investments Loss Dn the sale of fixed assets Decreasellincreasel in stocks Decreasellincreasel in debtors Increaselldecreasel in creditors Defined benefit pension scheme adjustment 1,246 11961 1,232 {420J {282) 12,4121 12,5631 1581 2,382 9, 651 (52) Net cash provided byl{u$gd In) operatlng activities 12.6401 74,345 Page 54
THE KING'S SCHOOL. CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2026 26. Analysls of cash and cash equivalonts Group 2025 £000 Gmup 2024 Cash in hand 11.740 16, 182 Total cash and ¢a$h equlvalents 11.740 16,182 27. Analysls of changes in net debt At1 September At31 2024 Cash flows August 2025 £000 £000 4,267 14621 {1241 1661 11.915 Cash at bank and in hand Debt due within 1 year Debt due after 1 year Finance leases 4,710 {1241 338 124 12981 {4.5741 {3641 7.341 Liquid investments 15.530 13.9671 11.563 Capltal commitments Group 2025 £000 Group 2024 Contracted for but not provided in these flnanclal statements Acquisition of tangible fixed as$els 31 Page 55
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 202S Pension commitments The School's employees belong to three principal pension schemes.. Ihe Tea¢h6rs' Pension SGheme England and Wales ITPSI for leaching staff.. the Local Government Pension Scheme ILGPSI managed by cheshi Pension Fund for some support staff and a Group Personal Pension Scheme IGPPI managed by Scottish Widows for the remaining support staff. Both the TPS and LGPS are defined benefit schemes and the GPP is a money purchase scheme. The latest actuarial valuation of the TPS related lo the period ended 31 March 2020 and of the LGPS 31 Maich 2022. Contributions amounting lo £138k 12024- £129kl were payable to the schemes al 31st August and are included within creditors. Teachers. Pension Scheme The Teachers, Pension Scheme ITPSI is a slalutory, conlribulory, defined benefit scheme, governed by the Teachers, Pension Scheme Regulations 2014. Membership Is automatic for full-time teachers in schools. All teachers have the option lo opt-out of the TPS following anrolment. The TPS is an unfunded scheme lo which both the member and employer makes contributions, as percentage of salary these conlributsons are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. Valuation of the Tèachèrs, Pension Scheme The Government Actuary, using nomal actuarial principles, conducts a formal actuarial ieview of the TPS in accordance with the Public Service Pensions (Valuations and Empk)yer Cost Capl Directions 2014 published by HM Treasury every 4 years. The aim of Ihe review is to ensure scheme costs are recognised and managed appropriately and the review specifies the level of future conlribulions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The lalesl actuarral valuation of the TPS was carried out as 8131 March 2020. The valuation report was published by the Department for Education on 27 October 2023. wrth the SCAPR rate, set by HMT, applying a notional investment retum based on 1.7'h above the rale of CPI. The key elements of the valuation outcome are". Employer contribution rates sel al 28.68% of pensionable pay (including a 0.08Vo adminislr*ion vY). This is an In¢8$e of 50/0 in employer eonlribulions and the Cost control result is such that no change in member benefits is needed. Total scheme liabilities Ipensions Current in payment and the estimated cost of future benefits) for service to the effective dale of £262,000 million and notional assets leslimaled future contributions together with the notional investments held al the ValUatn dale) of £222,200 million, giving a notional past seNice deficit of £39,800 million. The result of this valuation will be implemenled from 1 April 2024. The next valuation result is due to be implemented from 1 April 2028. The employerfs pension costs paid lo TPS in the year amounted lo £1,666k12024'. £1,416kl. A copy of the valuation ieport and supporting documentation is on the Teachers, Pensions website. Page 56
THE KING'S SCHOOL. CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 29. Pension commitmonts Icontlnuedl Under the definitions set out in FRS 102. the TPS is an unfvnded MU1mployer pension scheme. The School is unable lo identify f(s Share of the underlying assets and liabiif(ies of the plan. Accordingly. the School has taken advantage of the exemption in FRS 102 and has accounted for ils contributions to the scheme as If it wero a defined contribution scheme. The School has set out above the information available on the scheme. Local Government Pension S¢heme - Che$hlre Pension Fund The School also contributes to the Cheshire Pension Fund for its support staff. The pension costs are assessed in accordan¢8 with the adVe of a firm of independent qualified a¢luaries, Hyman5 Robertson using the projected unit method. A full valuation wa5 prepared as al 31 March 2022. The s¢hom8 was closed lo new entrants of the School on 31 March 21)05. The LGPS is a funded defined benefrt p¢ns#)n scheme, with the assets held in separate Iruslee- administered funds. The lolal contribution made fof the year ended 31 Augu512025 wa5 £2k12024 - £4kl, of which employerfs contributions lotaled £Nil 12024 £Nill and employees, conlllbulions lotalled £2k 12024 _ £4kl. The agreed conlributson rates for future years are OOA for employers and 6.5QA for employees. Principal acluarTal assumptions al the Balance shget dale {gxpressed as weighted averages).. At 31 August At 31 August 2025 2024 Discount rate Future salary increases Future pension increases 5.95 3A0 2.70 4.95 3.35 2.65 At 31 August At 31 Augusl 2024 2024 Yèars Yea Mortality rates lin years) - for a male aged 65 now - al 65 for a male aged 45 now - for a fema aged 65 now - al 65 for a female aged 45 now 21.1 21.6 20.9 21.4 24.5 26.1 26.2 Page 57
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 29. Pension commitments Icontinuedl The School's share of the assets in the scheme was". At 31 Al 31 Augusl August 2025 2024 £000 EqUitS Bonds Property Cash and other liquid assets 1,562 1,$62 472 1,593 1,484 471 36 72 Total fair value of assets 3,632 3,620 The actual relum on scheme assets was £149.000 (2024- £322,000). The amunls recognised in the Consolidated Slalemenl of Financial Activities are as follows.. 2025 £000 2024 Current service cost Net interest ¢o$ts Total amount ro¢ognised in the Consolidatèd Statement of Financial Activltles 12 f64J 167) 158} f52J Movements in the present value of the defined benefrt obligation were as follows,. 2025 £000 2024 £000 Opening defined benefft obligation Aduarial losses Current service costs InleTesl cost Contributions by members Benefits paid 2,260 12241 2,222 41 12 114 11361 (133) Closing defined benefit obligation 2.020 2,260 Page 58
THE KING'S SCHOOL. CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 Pension commitments l¢ontinued} Movements in the fair value of the Scho)I's share of scheme assets were as follows.. 2025 £000 2024 £000 Opening fair value of scheme assets Actuarial {lossesllgains Contributions by mombers Interest co$t Benefits paid 3,620 3,446 125 176 11361 178 f133) Closing fair value of $chomg assots 3,632 3, 620 Support Staff personal pon$ion scheme The School also operates a personal pension scheme wrth Scottish Widows for support staff not in the above defined benefit scheme. This is a money purchase scheme under which the School contributes a matching amount lo the employee up to o Maximum of 5'kn of pensionable salary per annum. Empbyer contributions lotaling £138k12024'. £130kl were paid in respect of this pension schgme for the period. As al year end £11 k12024'. £11k} was payable into the scheme and is included within crediloTS. The School also operates a private pension scheme wrth Virgin. Employer contributions lotaling £15k 12024.. £14kl were paid in respect of this pension scheme for the period. AS at year end £1k12024'. £1k} was payable into the Scheme and 15 included within creditors. 30. Opgratlng leaso commltments At 31 August 2025 the Group and the Charity had commitments to make future minimum lease payments undef non<ancellable operating leas0$ a$ fO1s.. Group 2025 £000 Group 2024 Not later than 1 year Later than l year and not later than 5 years 41 23 28 84 Page 59
THE KING'S SCHOOL, CHESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 31. Relatgd party transactions Fees paid by a Governor in respect of their children amounted lo £35k during the year {2024'. £142kl. A balance of £107k was held al the yeat end as fee5 received in advance. The School owns all the issued share caprtal of King's Space Limi(ed, the results for the year are showrb in note 17. During the year the School made purchases of £15k12024'. £8kl from Chester Cathedral, an ganSatiOn of which one Governor has significant Influence. No amounts were outstanding at yeaf end. Page 60