Company registration number 00914963 IEngland and Wales) Charity registration nurnber 526973 {England and Wales) WINDERMERE EDUCATIONAL TRUST LIMITED TIA WINDERMERE SCHOOL ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 WINDERMERE EDUCATIONAL TRUST LIMITED TIA WINDERMERE SCHOOL LEGAL AND ADMINISTRATIVE INFORMATION Governors PA Hogan L Houlding M A Hunter C C McKeever G J Hoyle (Appointed 9 May 20251 (Appointed 14 September 20241 (Appointed 9 May 20251 CECOX Charity number 526973 Company number 00914963 Principal address ndermere Educational Trust Limited Browhead Wndermere Cumbria LA23 1NW Reglstered offlce Windermere Educational Trust Limited Browhead ndermere Cumbria LA23 1NW Auditor JS. Audit Limited Jame5 House Stonecross Business Park Yew Tree Vvay Warringlon Cheshire WA3 3JD Bankers HSBC Bank plc 64 Highgale Cumbria Kendal LA9 4TF WINDERMERE EDUCATIONAL TRUST LIMITED TIA WINDERMERE SCHOOL CONTENTS Page Governors, report Statement of Governors, responsibilities Independent auditorfs report 12-15 Statement of financial activities 16-17 Balance sheet 18 ststemenl of cash flows Notes lo the financial statements 20-35 WINDERMERE EDUCATIONAL TRUST LIMITED TIA WINDERMERE SCHOOL GOVERNORS. REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 AUGUST 2025 The Governors of Wndermere Educational Trust Limited present their annual report and audited accounts for the year ended 31 August 2025 and confirm they comply with the requiremènts of the Charities Act 2011, the Charities SORP IFRS 10218nd the Companies Ad 2006. REFERENCE AND ADMINISTRATIVE INFORMATION Windermere Educational Trust Limited I'The Trust.) was founded in 1863 in Lytham St Anne's. 11 is constituted as a Company Limited by Guarantee, registered in England and Vvales, no. 00914963, and is registered with the Charities Commission under Charity No. 526973. At the start of the financial year, the Trust oper8ted on three sites known as Windemere Sch¢x)I, the Browhead Campus, for those in Year 7 and above, the Elleray Campus, for pupils In Pre-school lo Year 6 and Hodge Howe, our Sailing and Outdoors Centre on the shore of Windermere. During the year, the pupils in Pr&School lo Year 6 moved from the Elleray Campus lo the Browhead Campus and the Elleray Campus was marketed lor sale. wV(h the sale subsequently Completing in February 2026. The Trust also operates under the trading name Wndermere International Summer School. There is one Governing Body. Details of the tnembers of the Goveming Body, together with the Trust's officers and principal advisors, are given on the legal and administrative Information page. The financial slalements have been prepared in accordance wlh the accounting policies set out in note 1 to the financial slalemenls and comply with the Trust's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP Accounting and Reporting by Charities. Statement of Recommended Practice applicable to charities pieparing their accounts in accordance with the Finanaal Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" STRUCTURE. GOVERNANCE AND MANAGEMENT Governing Documents The Trust is governed by ils Memorandum of Associab"on and Artides ofAssocialion last amended on 20 January 2017. Governlng Body The Governing Body is self-appointed with one third of ils members required lo retire by rotslion at each AGM. The first appointed, or longest serving since last reappointment, are the first to retire. Governors retiring by rotation can be re-elected. New members of a Governing Body are elected on the basis of nominations by the Governors and the executive officers based on the candidates. professional qualities, experience and personal competence. Recrultment and Tralnlng of Governors New Govemors are inducted into the workings of the Trust. including Governing Body policy and procedures, al a series of indLJction meetings specially organised for them by the Head and other Governors. Governors carry out an annual skills audit and undertake to procure additional support or training to ensure the appropriate skills remain available lo assist the School in meeting ils strategic and operational objectives. WINDERMERE EDUCATIONAL TRUST LIMITED TIA WINDERMERE SCHOOL GOVERNORS. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Organisational Structure The Members of the Governing Body, as the Charity Trustees, are legally responsible for the overall management and control of the Trust. The Governing Body usually meets six limes a year. The work of implementing their policies is carried out by five Committees.. The Flnan¢g and Gen9ral Purpos9$ Committ89 scrutinise revenue, the budget, the future capitsl plan. capital expenditure and monitor financial risk. This Committee also supervise and finalise the audited financial statements and annual report for approval by the Governing Body. The Finance and General Purposes Committee is chaired by Mr M A Hunter and reports to the Governing Body al each board meeting. The Nominations Committee, chaired by Mr P A Hogan, oversees the orderly succession for appointments to the Board and senior management. The Rlsk Managemgnl Group monitors the strategic risks facing the Trust. The group was chaired by the Bursar. Mr R Hennah until his resignation in May 2025, when MrA D Smith repla￿d him. The Education Committee chaired by Mr P A Hogan, monitors and reviews the academic, Covcurricular and pastoral provision of the School, and makes recommendations as appropriate to the Governors. The Marketing Committee, chaired by Mr P Scott, monitors the recruitment of new pupils through marketing and admissions inilialives. Some governors have delegated responsibilities. For example, Reverend Canon, J D Brewster oversees all aspects of Safekeeping and also oversees the Earfy Years Provision. The Chair of each cornmittee co-opts members of the Governing Body and any addf(ional external expertise they deem appropriate for matters under consideration by each committee. The day to day running of the school is delegated lo the Headmaster supported by the Senior Leadership Team. The Headmaster, Head of Elleray and Bursar, allend all meetings of the Goveming Body's Committees with the ex￿ptIOn of the Nominations Committee. Employment Policy The School is an equal opportunities employer. Full and fair consideration is given to job applications from disabled persons and due consideration is given lo their training and employment needs. Consullalion wrth employees, or their repiesenlalives, has continued al all levels with the aim of taking the views of employees Into account when decisions are made that are likely lo affed their interests. Trust Management The Governors give consideration to the major risks to which the Trust is exposed. The Goveming Body has ulb'mate responsibility for managing any risks faced by the Trust. Detailed consideration of risks is delegated lo the appropriate sub-committee. The structure of these committees comprises appropriate membership from the Governing Body, asslsled by the School's Senior Leadership Team and any exteinal expertise that may be required from lime to time. WINDERMERE EDUCATIONAL TRUST LIMITED TIA WINDERMERE SCHOOL GOVERNORS. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 The Trust management process and the resulting reports identify risks, assesses their impact and likelihood and, where necessary, recommends Controls lo mitigate and monitor those risks that a￿ 8sses5ed ss high. The generic controls used by the Trust to minimise risks include". . Terms of reference for each committee and Trust Board activity., Comprehensive budgeting and management accounting., Established organisational structures and lines Df reporting.. Formal written policies induding clear authorisatlDn and approval levels., Velling procedures as required by law for the protection of children. Health and safely is always a significant 8rea for Risk Management. The risks range from fire and infrastructure to personal risks Imosl notably when away from the campus on trips and expedilionsl. The level an¢J breadth of activity at the Trust's Schools is impressive and the risks associated with all activities are minimised by employing a competent and qualified Bursar with Health and Safety Cfrordinator responsibility, and a trained Educational Visits Coordinator. The Board used Kym Allen Associates lo advise on Health & Safely and Educational Visits throughout 2024125. Pupil numbers remain lower than prior to 2020 and the COVID pandernic. Boarding pupil numbers have been particularly negatively impacted as overseas students have failed lo return in previous volumes. The lower number of pupils has resutted In a sustained period of rèduced fee income which in turn has significantly increased profitability and liquidity risk. The introduction of VAT on School fees from the start of 2025, and any resullanl long-lerm impact on pupil numbers is yel to be determined. however the Goveming Body has concluded that il must move to a sustsinable business model based on realistically forecast pupil numbers. As a result, the decision was taken towards the end of the 2023124 a¢ademi¢ year lo relocate the pre-school lo Year 6 pupils from the Elleray Campus to the Browhead Campus and the move was completed during the 2024125 academic year. The Governing Body is satisfied that for all rllajor risks identified, appropriate controls have been pul in pla￿ and maintained lo miligale those risks adequately. 11 is recognised that systems can provide only reasonable bul not absolute assurance that major risks have been managed. OBJECTS, AIMS, OBJECTIVES AND AcnwTIES Charitsble Objects The Trust's Objects, as sel out in the Memorandum of Association, are the advancement of education by providing general Instruction of the highest class, together wlh physical and moral guidance In the School's management by the Tiusl. In furtherance of these Objects and for the public benefit, the Trust has estsblished and administers bursariès, scholarships, awards and other benefadions, and acts as the Trustee and Manager of endowments, bequests and gifts given or established in pursuance of these Objects. The Board is mindful of the long-stsnding need to provide public benefit and of the requirements of the Charities Act 2011. In this regard, the 8oard has monitored closely the supplemental guidance produced by the Charity Commission, in particular its public benefit guidance on advan￿ment of education and on fee charging. Despite continuing difficult economic dimale, the Trust has exceeded £879k of support provided by way of bursary, discount or financial support. Of financial support provided, over half consists of hardship bursaries lo local, national and overseas pupils. Vlslon Young people leam best when they feel safe, secure and happy. We seek lo produce well-rounded young people who are confident, caring and take a global perspective on the issues and challenges they face. WINDERMERE EDUCATIONAL TRUST LIMITED TIA WINDERMERE SCHOOL GOVERNORS. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Taking our vision and values into the future, we can express them in nine ambitions. To be 8 trailblazing, fulure-ready school Highly sought after for its bold vision and unwavering ambition. To unlock the potential in every child Nurturing confident, grounded individuals ready to lead with positivity in tomorrow's worfd. To thrive as a unified, all-through community A single, welcoming campus known for excellence and proud of ils specialisms. To redefine what's possible in education Delivering experiences that are truly Iransfomiational. To weave the outdoors into daily learning Making nature and adventure a ¢ornerslone of how we teach, think, and grow. To give parents absolute confidence Knowng their children are seen, valued, and growing in a school that lives Its values out loud. To be a happy, energised workplace Where staff feel united, empowered, and proud lo be part of something meaningful. To lead with purpose and heart Embedding values in every decision, every day, for every learner. To communicate wth clarity and act with integrity Seth"ng transparent expectations and holding ourselves lo them with fairness 8nd consistency. We will achieve our vision through eight key aims". Excellent Management & Leadership Pupil Growth & Re¢ruilment 3. Academic & Pastoral Excellence 4. Financial Strength 5. Improved Boarding Culture 6. Ctrcurricular Distinction 7. Community Engagement 8. Operational Excellence Mlsslon Stst&ment The Trust's mission is lo produce confident and compassionate people. Through leaching excellence, supportive pastoral care and experience of our environment, we encourage individual success for community good. Our vision and mission are shaped by our determination lo encourage 5elf-kno￿edge, articulated by our school motto. Vincil qui se vin¢il- One conquers who conquers oneself. Today that means". overcome yourself and you will achieve. The School challenges pupils lo ex￿1, to have suffioenl self-reliance to know that delerminalion can overcome adversity. and lo be of value to society. Intended Impact Within ils charitable Objects, the Trust's Intention is lo provide a firsl-dass education through strong academic tuition and by developing broader skills that enable every pupil lo realise his or her potential to the full. This involves emphasis on the Cwurficulum through cerebral, aavenlure, sporting, performan￿, artistic, team- building and social skills. This policy builds self-confidence and life skills in our pupils and in¢ul¢ates a desire lo learn and a willingness to contribute lo the wider communi whilst at school and in later life. WINDERMERE EDUCATIONAL TRUST LIMITED TIA WINDERMERE SCHOOL GOVERNORS. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Alms The Trust's aims for the public benefit are lo.. 1. Inspire our pupils through a broad and balanced curriculum that challenges inside and outside the classroom, where they learn about their strengths and weaknesses, and are encouraged lo strive for excellence in all thing5', 2. Support our pupils lo develop their individual academic, ¢￿alIve and sporting talents and skills of leadership to enable and empower them lo make an active and real contribution lo their wodd., 3. Use our unlque lo¢alion at the heart of mountains, lakes and rivers as our greater classroom for adventure and adventurous learning, where our pupils will learn directly about the environment, each other and themselves.. 4. Foster a democratic and accountable culture where our pupils contribute fully to school and community life and lake increasing responsibility for their own learning and actions., 5. Encourage a global perspective by providing OPPDrtunilies for all our pupils irrespective of gender, race and beliefs and encouraging them lo value and respect differences. Strategles to Achleve the Alms The ongoing impact of the pandemic and wider socio-polili¢al considerations induding the introduction of VAT on private school fees resulted in the decision to focus on developing a business model for the future. The model acknowledges the likelihood of sustained lower pupil numbers and recognises that fewer resources are required to achieve the stated aims. To adapt lo the new landscape, the Board of Governors relocated the Junior School to the senior School Campus (Browheadl during 2025. The Junior School campus IEllerayl was marketed for sale during 2025 with the sale completing in February 2026. Prlnclpal Actlvlty The Trust's principal activity, as specified in the Memorandum of Association. is the advancement of education Public Benefit Windermere Educational Trust Limited remains committeLI lo the aim of providing public benefit in accordance with its founding principles. There Is a requirement to demonslrale that public benefit for charitable purposes where it has hitherto been presumed in the absence of evidence lo the contrary. This in tum calls for more detailed disclosures conceming our aims. The awarding of bursaries for the needy is a measurable means of providing public benefit. The Board tskes the view that bursaries awarded to those who would not otherwse be able to afford the fees are important, but not to the exclusion Df the much wider benefit that the Trust provides wthin the community. Those pupils who attend our Schools and who receive financial support contribute lo the School community in a variety of ways, and so the benefit is not purely lo these pupils but lo the Trust and, in some cases, to the wder community. In 2024125 the Trust awarded bursaries, scholsrships and other awards lotalling £679k12023124.. £936kl. Within this. means-lesled awards based on a sliding scale according to financial circumstsnces lotslling £368k were awarded12023124.' £597kl. Bursary awards represented 70/0 of gross income in 202412512023124.. 90/01. In addition to bursaries, the Trust has engaged in many other activities that provide benefit to the public within the Trust's objectives. It is difficult to measure accurately the financial value of this public benefit. The benefit provided by bursaries and other activities can then be considered alongside the benefit of educating the 200 UK pupils which, in itself, has saved the exchequer some £1.5m. The Trust is an important part of the local community with 112 full and part-time employees in 2024125 making il one of the largest employers in the district. By far the largest proportion of the Trust's expenditure is accounted for by salaries and purchases from local and regional businesses. Thus a significant proportion of funds are invested directly into the local economy. WINDERMERE EDUCATIONAL TRUST LIMITED TIA WINDERMERE SCHOOL GOVERNORS. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 other Charitable Activities In addition lo ils primary purpose, in normal years the Trust provides a number of servi￿$ and experiences to local primary schools free of charge. These include a Christmas production Show, Watersports Day, Languages Day and Geography Day. Sailing and Walersports tuition al the School's lake shore Vvatersports Centre is provided on a weekly basis to two local primary schools al minimal charge, and the Trust also provides a high quality School Meals Service to two other schools. The Trust 8lso frequently lets the Sch¢x>l's facilities al no charge lo local community or charitable groups such as the Community Choir, County Sports Associations and Blackwell Sailing who provide free of charge sailing activities for those with a disability. Pupils also make signifi¢anl contributions lo the local Community and charities. The School runs a Setvice programme for Years 10 and 11, where pupils engage in a variety of activities for one afternoon per fortnight for the benefit of the local community. Examples of activities undertaken include repairing footpaths on the fells, conservation work in the grounds of a local visitors, centre, planting trees and dearing litter from the Nab"onal Park. Visiting local care homes to offer friendship and deliver performances. STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE Academlc Windermere School's 2025 outcomes show a dear upward trend in both allainmenl and progression. GCSE pass rates remain well above national figures, IB results have improved to match or exceed pre-COVID performance with an IB mean score of 33.1 and 100/. pass rates for both the Diploma and Career-related Programme, and a growing proportion of students are securing firsl attributable to land, which is not depreciated. The adjustment lo cost of £14,101 relates lo Input VAT reclaimed on assets held al the dale of VAT registration. 16 Stocks 2025 2024 Food stock 5,608 7,518 -28- WINDERMERE EDUCATIONAL TRUST LIMITED TIA WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2025 17 Debtors 2025 2024 as restated Amounts falling due within one year- Trade debtors Prepayments and accrued income 657,761 78,733 852,375 95,922 736,494 948,297 18 Credltors: amounts falllng due wlthln one year 2025 2024 as restated Not9$ Bank loans and overdrafts Other borro¥Mngs Other taxation and social security Deferred income Trade creditors Other creditors Accruals 20 20 1,100,511 699,880 409,873 1,327,146 696,581 691,659 121,752 186,316 106,896 1,853,194 302,242 898,183 110,322 5,047,402 3,457,153 19 Creditors: amounts falling due after more than one year 2025 2024 Notas Bank loans Other creditors 20 522,385 277,789 759,955 306,349 800,174 1,066.304 -29- WINDERMERE EDUCATIONAL TRUST LIMITED TIA WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2025 20 Loans and overdrafts 2025 2024 Bank overdrafts Bank loans Other loans 894,207 728,689 699,880 946,271 2,322,776 946,271 Payable wthin one year Payable after Dne year 1,800,391 522,385 186,316 759,955 Amounts included above which fall due after five ye8rs". Payable by inslalmenls 37,900 Three bank loans are repayable over len and fifteen years. The loans are subject to an interest rale that is equal lo the Bank of England base rale +2Ok. They are secured upon certain freehold land and buildings held by the School and a fixed and floating charge over other assets. Other loans relate to a personal loan from a benefactor. 11 is repayable within 12 months and is subject to interest al the Bank of England base rate +20A. It is secured by a charge over ￿rtain freehold land and buildings held by the School. 21 Restricted funds The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used. At1 September 2024 Resources At 31 August expended 2025 Hardship Fund 3,014 3,014 Prevlous year: At1 September 2023 Resources At 31 August expended 2024 Hardship Fund 3,697 16831 3,014 3,697 683 3.014 The Hardship Fund was sel up to help parents affected due to Covid-19. 30- WINDERMERE EDUCATIONAL TRUST LIMITED TIA WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2025 22 Unrestricted funds- designated These are unreslricled fvnds which are material lo the Trust's activities. At 1 Movemont in At 31 August September the year 2025 2024 Unrealised gains on the revaluation of property 5,968,684 247,122 6,215,806 Prevlous year: At 1 Movement In At 31 August Saptember the year 2024 2023 Unrealised gains on the revaluation of property 6,663,684 1695,0001 5,968,684 Imien the company's properties are revalued the difference betrNeen carrying value and cost is included within designated unrestricted funds. When a property is sold, the unrealised gain is deducted from designated unrestricted funds and recognised within general unrestricted funds. 23 Analysis of net assets between funds Unrestricted Unrestricted funds funds general designated 2025 2025 Restricted funds Total 2025 2025 At 31 August 2025: Tangible assets Current assetsllliabilitiesl Long tetm liabilities 5,685,894 14,307,135) 1800,1741 6,215,806 11,901,700 {4,304,1211 1800,1741 3,014 578,585 6,215,806 3,014 6,797,405 UnrgStrl¢tgd Unrgstrictod funds funds general deslgnated 2024 2024 Rg$trlct9d funds Totsl 2024 2024 At 31 August 2024: Tangible assets Current assetsllliabililiesl Long temi liabilities 5,074,803 12,396,627) 11,066,304) 5,968,684 11,043,487 12,393,613) {1,066,3041 3,014 1,611,872 5,968,684 3,014 7,583,570 31 WINDERMERE EDUCATIONAL TRUST LIMITED TIA WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2025 Operating lease commitments Lessee Al the reporting end dale the Trust had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows.. 2025 2024 thin one year Be￿een two and five years 63,450 117,087 72,711 180,537 180.537 253,248 25 Events after the reporting date In the period since the year-end, the Trust has completed a refinancing process with Handelsbanken, with a new lon*lerm loan replaang existing bank loans and reducing the level of bank overdraft. The Ttusl has also completed the disposal of a property asset for an amount of £2,500,000, less selling costs. The sale proceeds have partially been used lo repay the other borrowngs shown in note 18. 26 Related party transactions Remuneration of key management personnel The remuneration of key management personnel was as follows.. 2025 2024 Aggregate componsatlon 425,969 380,693 A number of Govemors have children who attend the school. The fees paid by those Governors are on the same temis and conditions as are charged lo any other parent who does not work al the school. A Governor of the school had children who allended the s¢hool and were in receipt of a bursary. In the duration of office of the Governor those children received bursaries amounting to £29,571 12024.. £27,585) in line with bursary awards lo other children. A Governor of the school had grandchildren who attended the school and were in receipt of a bursary. In the duration of office of the Governor those children received bursaries amounting lo £12,50012024.. £13,823) in line with bursary awards to other Children. 27 Memb&rs Ilablllty The charity has no share capital being a company limited by guarantee. Each member is required to contribute an amount not exceeding £1 per member in the event of a ¥hrinding up situation. 32- WINDERMERE EDUCATIONAL TRUST LIMITED TIA WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2025 28 Pension costs During the year, the School participated in the Teachers, Pension Scheme l.the TPS.) for its leaching staff and The Pensions Trust's Growth Plan for non teaching staff. From 1 September 2024 onwards, the school has changed the basis on which they contribute lo the TPS and staff were given the option of remaining in the scheme under a new contribub.on basis, or moving to a defined contribution scheme. Prior to 31 August 2024, the School contributed 28.680/0 of a members.. pensionable salary to the TPS, with the member conlribuling between 7.40/0 and 11.75Qh. Under the new agreement, the School conlribules 190 of a members, pensionable salary with the member contributing the difference between this figure and the 28.68°A. This is in addition to their existing members, contributions. The lotsl pension charge for the year, in respect of all pension schemes was £488,28512024.. £542,704). Valuation of the Teachets. Pension Scheme The Govemmenl Actuary, using normal actuarial principles, conducts a fomial actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Capl Directions 2014 published by HM Treasury every 4 years. The aim of the review is to ensure scheme costs are recognised and managed appropriately and the review specifies the level of ftjture contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The lalesl actuarial valuation of the TPS was carried out as al 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with the SCAPE rate, sel by HMT, applying a notional Investment return based on 1.70h above the rate of CPI. The key elements of the valuation outcomes are Employer contributions rates set at 28.680k of pensionable pay (including a 0.080h adminislralion levyl. This is an increase of SOA in employer contributions and the cost control is such that no change in member benefits is needed. As noted above, the School has now restricted the level Df its contributions lo 19°kn.. Totsl scheme Iiabililies (pensions currendy in payment and the estimated cost of future benefits) for service to the effective date of £262,000 million and notional assets lestimated future contributions together with the notional investments held al the valuation dale) of £222,200 million, giving a notional past service deficit of £39,800 million. The result of this valuation was implemented from 1 April 2024. The ne*( valuation result is due lo be implemented from 1 April 2027. A copy of the valuation report and supporting documentation is on the Teachers. Pension website. Under the definitions of FRS102, the TPS is an unfunded mulli-employer pension scheme. The trust has accounted for its contributions lo the scheme as if il were a defined contribution scheme. 33- WINDERMERE EDUCATIONAL TRUST LIMITED TIA WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2025 29 Cash absorbed by operations 2025 2024 Deficit for the year 11,033,287) 1366,3071 Adjustments for- IGainllloss on disposal of tangible fixed assets Interest paid Depreciation and impairment of tangible fixed assets 12,357 113,087 98,082 100,003 87,412 Movements in working capital.. Decreasellincreasel in stocks Decrease in debtors Increase in creditors {Decreasel in deferred income 1,910 211,803 519,334 1526.0481 18141 190,928 3,852 1261,3951 Cash absorbed by operatlons 1638,8731 1210,2101 30 Analysis of changes in net Idebtllfunds At 1 September 2024 Cash flow5 At 31 August 2025 Cash al bank and in hand Bank overdrafts 107,725 1106,5461 1894,2071 1,179 1894,2071 107,725 11.000,7531 1893.0281 Loans falling due within one year Loans falling due after more than one year Other borrowings 1186,3161 1759,9551 119,9881 193,794 1699.8801 120e,3041 1522,3851 1699,8801 1838,5461 11,526,827) {2,321,5971 34- WINDERMERE EDUCATIONAL TRUST LIMITED TIA WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 31 Prior period adjustrnent As sel out in note 1.2, material errors have been identrfied in prior years. These have been corrected as follows.. The material error in respect of the recognition of deferred income has been corrected retrospectively in the comparative figures for the year ended 31 August 2024, including a reslalemenl of the balances as al 1 September 2023. The figures for the year ended 31 August 2024 have been reslaled lo indude the full amount of fees issued in August 2024, in respect of the Autumn 2024 lemi, wthin deferred income. The previous treatment incorrectly only recognised deferred income in respect of fees for the Auturnn 2024 temi which had been paid prior lo 31 August 2024. This correction has resulted in increases of £731,805 in both trade debtors and deferred incorne as at 31 August 2024. The opening position as al 1 September 2023 has also been restated to refiect the deferred income and trade debtors not recognised in respect of invoices issued in August 2023 for the Autumn 2023 term. This has resutted in increases of £847.751 in both trade debtors and deferred income as al 1 September 2023. These corrections have had no impaci of the stslemenl of finanaal activities or on any fund balances for eilhef year. The material error in respec* of the valuation of land and buildings has also been corrected retrospectively as market based valuations were available as al 31 August 2024 and 31 August 2023 bul a depreaated replacement cost valuation basis was used. The depreciated replacement ￿$1 basis should have only been used if no reliable market based valuation existed. As a result of the restalernenl to market value, land and buildings are now induded in the comparative figures as at 31 August 2024 at £10,765,000, compared lo the previousty reported figure of £23,953,402. This reduces tangible fixed assets at that dale from £24.231,889 10 £11,043,487 wlh net assets being reduced from £20,771,972 to £7,583,570. The opening pK)silion as al 1 September 2023 has also been restated lo indude land and buildings at the market value £11,460,000, compar8d lo the previously reported figure of £24,556,042. The corredion of the valuation basis results in a restatement of the opening and closing balances for designated unrestricted funds, together wth the movement in the yeaT. The balance on this fund as al 31 August 2024 has been restated from £19,157,086 10 £5.968.684 (opening position reslaled from £19,759,726 to £6,663,684) wth totsl fund balances being reduced frorn £20,771,972 to £7,583,570 (opening position restated frorn £21,045,919 10 £7,949,877). The net reduction in funds during the year ended 31 August 2024 has increased from £273,947 10 £366,307 due lo the impact of the Correction in valuation ba818 on the profiv loss calculated on the disposal of land and buildings in the year. 35-