2020-07-31-accounts

Charity numbèr-. 528413 SHREWSBURY SCHOOL GOVERNORS, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

SHREWSBURY SCHOOL coKrENTS Page Reference and administrative details of the charlty. Its Governors and advi$erJ Govemor5' report Independent auditorfs report on th• financlal statements Consolidated stat8m8nt of financlal a¢tlvltl 3-12 13-15 16-17 Consolldated b•lan¢o sheet 18-19 Charity balance shoot Consolldated statement of cash flow8 20-21 22 Notes to the flnanclal statements 23-83

SHREWSBURY SCHOOL REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 JULY 2020 Governors T.H.P. Haynes, BA, PGCE IC¢w)led memberl, Chairnan1,16 S.R. Baker. Bsc. FCA, CF (Cc￿0pted member11.4 Councillor T.H. Biggins ￿ ApFY)inled by Shropshire Councili.3,4 R. Boys-slones. Bse. FCA Icwpted member13 D Chance MBA (c(￿pIe￿ memberll.4 J.R. Clark MA Icowopled member13.5.6 Sir Peter Davi$ ICcTropled memberll.S Professor Sir C. Dobson, FRS Master of Sl. John's College, Cambridge (deceased 8 September 201915 D. Flint, DL Apwinled by the Lord Lieutenant of the County of Shropshire1,2,5 C. Howarth, LL8 (co￿pted member}2.6 W.R.O. Hunter, QC IC¢wled membecl I￿S1gned 31 December 201912.6 Dr S. Jones-Perrott MB. BS lappoinled 31 August 201913.7 Professor A.J. Mccarthy 8S¢. PhD ICctrOPted member}15 J.M.H. Mtyr. BA. MBA IC¢)wopled memberli.7 Couneillor C.M. Motley B.A. Appoinled by Shrop$hire Counci1l,5 L. O'Loughlin. (DepU￿halrl LLB IHonsl {c￿pted memberl (resigned 31 December 201911.2.5 J.D.C. Pitt MBA. BSc4 F.L. Sehofield 8A, PGCE ICovQPted member) lappoinled 1 January 202017 D.R. Stacey DL Icoqjled member) lappLynled 1 January 202011.3.7 G. Walters 8BLS6 G Woods Finance and General Purposes 2 Nominations and Rernunerat￿n Committee ¥ AL￿rt Commfftee Investment Commrttee Educalv)n and Safeguafding Committee Inlefnational Development Committee 7 Thg Prep School Commrttee Charity reglstered number 528413 Principal address and Registered Offic8 The Bursary Kingsland House Shrewsbury School The Schools Shrewsbury SY3 7AA Headmaster LwInk￿ MA. MEd The Bailiff, Bursar and M J Ware, MA. ACA Clerk to the Govemlng Body Page 1

SHREWSBVRY SCHOOL REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS GOVERNORS AND ADVISERS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 Independent auditor Crwe U.K. LLP Carrick House Lypiatt Road Chehenham GLSO 2QJ Bank•rs Handelsbanken PIC 1st Fl¢)or. Willow House West Shrewsbury Business Park Shiewsbury SY2 6LG LW$ Bank Pk 1 Pride Hill Shrewsbury SY11DG Invo8tment Advlsors Rathbone Investment Managers 8 Finsbury Circus London EC2M 7AZ Page 2

SHREWSBURY SCHOOL GOVERNORS. REPORT FOR THE YEAR ENDED 31 JULY 2020 The Governors present their annual report for the year ended 31 Juty 2020, under the Charities Act 2011, together with the audited a¢coun15 for the year, and confim that the latter compty wth the Act, the School's Statutes and the prov15ions of the Statement of Recommended Practice ISORPI 'Accounling and Reporting by Chanties", the Charities SORP {FRS1021 effective 1 January 2015. REFERENCE AND ADMINISTRATIVE INFORMATION The S¢hool was founded in 1 SS2 as 'The Free Grammar School of King Edward Vl. and is registered with the Charity Commission under charity number 528413. The Sch¢)ol's Governors, Officers and principal address and particulars of the School's professional adwsers are as listed on pages 1-2. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document Shrewsbury Sch¢ol is govemed in accordance wrth the Shrewsbury School Statutes. approved by the Queen's Most Excellent Majesty. in Council on 12 Oclobef 2016. Recruitment and Training of Govemors The School's Goveming Body consists of both appointed and cwled members. The Master ol Sl John's College Cambridge is an ex4ficio member of the G¢)verning 8ody. Thrge members are appoinled lo the Governing Body by persons or a body of persons as specified in the Sch¢)ol's Statutes and effectively provide an informal link wrth Shrewsbury Town and rts County. One member is elected by the Assistant Teachers of the Sch￿1 (COMM￿ Rooml. Fourteen members Imaximuml are ewted by the current Govemors, their names being brought foryvard for appointment by the Nominations and Remunefalion Commrttee of the Governing Body. There is a regular audit of Governors, qualif1calions, skills and experience. Govern¢ys are encouraged lo attend appropriate training cour5e$ and seminars. New Govemofs are inlrtsjueed lo the workings of Ihe Sch￿1 arKI the Goveming Body largely by past financial slalemen15, management accounts. minutes of Govemor and s￿￿0mMIttee meetings, ènd a day's visit lo the School, including meeling representslives of staff and employees. General infomalion is provided in the School Slalules. the School Handbook. information for pupils, and Charrty Commission regulations. specif￿ issues are addressed at an academic-yearond strategy meeting wrth the Headmaster. Governors are encouraged lo keep abreast ol new regulations. All Govemors are required lo undergo a Disclosu￿ and Barring check for child protection purp¢yJe$. Oryanlsatlonal Management The members of Ihe Governing Body. as Tnjstees of the Charty. are legalty responsible for the overall management and control of the School and meet as the full de¢ision-making Governing Body of the School at least three limes a year. There are seven committees to which powers of invesligth.on and wommendalion are deleg*ed, and which meet regularly under their respective chairmen. Minutes are kept ol all meetings of the Trustee5 and ol the Committees. Draft minutes are tirculaled to all G¢)vemors for discussion 81 meetings of tha full Goveming Body. The Finance and General Purposes Commrttee IF&GPI is the working Committee responsible for making recommendations on the financial and operational policy lo the Goveming Body and for ensuring that the decisions and policies of the Governing Body are Imp￿Mented. The F&GP meets at least three limes a year, prior lo full Governing Body meetings. The F&GP during the year was chaired by S. Baker. The other committees are the Nominations and Remuneration Committee, chaired by L. O'Loughlin until 31 Page 3

SHREWSBURY SCHOOL GOVERNORS. REPORT (CONTINUED FOR THE YEAR ENDED 31 JULY 2020 December 2019 and from 1 January 2020 by T Haynes." the International Development Committee, chaired by C. Howarth", the Audit Committee, chaired by R. 8oys-Stones", the Investment Committee, chaired by D. Chance.. the Education and Safeguarding Commrttee, chaired by Sir Petei Davis". and the Prep School Commitlee, chaired by M. Moir. Each Committee meets at least On￿ a year. The Goveming Body has approved the temis of reference for each ol the committees. The day-l¢>day running of the School is delegated to the Headmaster. who is supported by the Bursar and their various management teams. The Packwood Haugh scho￿ Headmaster reports into the Headmaster of Shrew5bury Sch¢x)I, and is supported by the Packwood 8ur$af and Packwood SLT. These groups form the key management personnel. The Headmaster and the 8ursar attend Governing Br>Jy and F&GP Committee meetings, and the mèetings of other committees as appropriate. Other leaching and support staff attend Governing Body and committge meetings on an ad hoc basis lo advise and infom Governors on specific areas of the School's activities. Policies and guidelines for the effective governance and management of the School are regularfy reviewed by the Audit Committee and their recommendation$ passed lo the F&GP and the Goveming Body for action. The remun8ralion of the key man4ement personnel of tho School (Senior Lèadership Tearnl is sel by the Nominations and Remuneration c¢)Mm￿ee. The poli￿ objectives are lo provide appropriate incentives lo gncourage enhanced pertomance and lo reward fairly and responsibly individual contributions lo the School'5 success. The appropriateness and relevarKe of the ￿mUneratI)n policy is ￿eWed annually, including references lo comparisons wrth other independent schools to ensure that the SchocA remains sensitive to broader issues of pay and employment eondrtions elsewhere. Group Structure and Relatlon$hlpg During the year. the Schcd had tsvo wholty owned subsidiaries.. Shrewsbury School Enterprises Limited {non4hantablel', and Shrewsbury School Trading Conyany Limrted Iformerly Shrewsbury Sehool Development Company Limiledl Inonqcharitablel. The activities of these companios are discussed later in this report. In addition, the School pays the employment. administrative and other costs and expenses ol Shrewsbury School Foundation. These costs are calegori$ed as fund raising costs within the Consolidated Slalernenl of Financial Aclivrtie5. The Governors have agreed that the School wll incur these costs lo the extent that Shrewsbury School Foundation exercises and contsnues lo exercise ts charitsble objects Ilhe 'Shrewsbury Sch¢)ol Charrtable Objects") as set out in the Foundation Trust Oeed. Shrewsbury School arbd Packwood Haugh Schcol both operate wrthin the Shrewsbury School charity. Risk Management The Governing Body is responsible for the management of the risks faced by the School. Detailed analysis of the risks is delegated to the Audit Commrttee. assi51ed by the Schoof's senior team. Risks are identified, assessed and controls established throughout the year. The risks are identified under the following headings.. mission and objects., law and regulations.. goveman¢e and management,. extemal factors." marketinglpupil recruitment.. academic factors.. operational factors." human resources.. environmentsl." technological and financial. A fomial review of the major risks facing the Sch¢4J and the concomrtanl risk management Pfocesses is performed annually by the Governing Body. Page 4

SHREWSBURY SCHOOL GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 The key controls used by the School include.. formal agendas and papers where appropriate for all Committee and Govefning Body meetings wrth detailed minutes taken lor each and circulated in draft to relevant participants and members unable lo attend. clear and detailed lemis of reference for each Committee. eomprehensive strategic planning. budgeting and management accounting. timely. clear and accurate management financial inforTnalion readity available. formal written policies agreed. established organisational management slrueture and lines of reporting. clear authoiisalion and approval levels for payments. Governor5 who have designated reSpons￿lI1ty for child protection, hearth and safety. e$tsle$ and admissions. 1115 recognised that these control systems provide a reasonable, but not an absolute, assurance that risks are being managed propedy. The Govemors are satisfied that the major risks being faced by the School this year have been identified and are being adequately addressed in order lo avoid each, or to miligale the effects of an unavoidable occurrenee. OBJECTS, AIMS, OBJECTIVES AND PRINCIPAL AcnwTIES Chari(able Objects The Objects of the Chanty are the advancement of education, induding the provision of boarding and day schooling. wr(hin these Objects the Charity has a number of pemianent endcmed fund$ held for special purposes in connection with the devebpmenl of the School's faeilities and for Scholarships. bursaries. prizes and other oducalional Pufposes. Public Benefit Aims and Intendèd Impxt Shr8w$bury School wa$ founded in 1552 by Royal Charter lo provide Charitab￿ education in the Shrewsbury area. Today Shrewsbury attracts entrants from all over the United Kingdom - and also from abroad - whilst still retaining bt5 strong links with the town and rts citizens. Its many distinguished Alumni have occupied high office and achieved hugety In the fields of science. the artistic and cuttural life of the Country. sport. academia. the professions, politics, business and in many other ways as may be seen from the School's website Iwww,shrewsbury.org.ukl. Since August 2019 Packwc*)d Haugh School has become part of the overall Shrewsbury School charrtable enlrty. Shrewsbury School's aim Is to offer a first ¢lass education lo pupils be￿een the age of 13 and 18, which at least matches - and hopefully ex¢eeds~ that found in the best Independent boarding schools in the United Kingdom. Those at Shrewsbury experience depth of educational excellence. the OPF>Ortunty lo partieipale in a wide range of sporting and other extra<urricular aclwrtRs. adventur8 and communrty responsibilty. Packwood Haugh School operates as an independent boarding and day Preparatory School for boys and girfs aged from 4 10 13. Packwood covets all that is required by the National Curriculum Key Stages 1 and 2, and the first two year5 of Key Stage 3 and substant￿llY more_ Packwtyxl aims for the highest quality of academic luiliDn and pastoral care and the development of WKler sporting, artistic and social skills in all r(s pupils, while offering an environment in which each pupil can develop and fvlfil their potential. In short, al both schooFs the purpose is lo encoufage young people lo become fully rounded, well educated, and responsibk citizens able and keen to contribute lo their communities. In setting both schools, objectives and planning of activrties, the Govemors have gtven careful consideration lo the Charity Commission's general guidance on public benefit and in particular lo tt5 Supplementary public benefit Page 5

SHREWS8URY SCHOOL GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 guidance on advancing education and fee charging. Shrewsbury and Packwood provide Substantial public benefit not onty to the recipients of educational grants bul also lo the local community and a wider public. Wrth effe¢l from Seplernber 2019. Shrewsbury School appoillled a member of ils Senior Leadership Team a5 Head ol Partne￿h•p and Community Engagement in order lo focus the different strands ol activity in this area and lo measure the impact on beneficiaries. In October 2020, Shrewsbury Sch¢)ol shared the award for Community Oulfeach al the Independent School of the Year Awards. Educational grants and widenin9 xcess lo the Schoc4 Scholarships, bursaries and other awards are made available from three sources.. funds controlled by the Governing Body as Trustees.. funds managed by the Trustees of the Shrewsbury Sch¢)ol Foundation," and the general income of the School. In the year, 317 12019 - 2991 pupils were assisted of whom 170 were means lesled 12019 -1641. The value of th15 means tested support was £2,452.712 12019 - £2,281,139). This figu inclLJdes 11 pupils12019 - 81 who were in receipt of 1000/0 means tested remissions. Paekwood offered £319,273 in bursary and scholarship support in 201￿20. of which £201,718 was means lesled. Such a signrficant level ol fee support 15 in keeping ￿th the aims of the schools and underscores the charitable purposè. Partnerships with schools and the Shrewsbury House, Everton"The Shewsy" Shrewsbury School engages in $ubslanlial charitable fund raising for both Ictal and national organisalions. Of special interest is the S¢hool's on-going financial support for Shrew5bury House. a youth club in Liverpool established by Ihe School in 1903 to serve the needs of the deprived local community. In addition lo fund raising, Shrewsbury Sehool provides aecounling and other seNices, free of charge, lo Shrewsbury House and regularly makes arrangements for mèmbers of'The Shewsy. lo come to Shrmbury School during the cour$8 of a year. Partnership activity wrth local schools includes Shrewsbury Sthod providing rehearsal and other facilitie5, welcoming participation from l¢xal students at weekty careers lectures and annual conferences, and academic leaching in elassics, wh￿h is offered al a local slate Scho￿ at zero ¢osl lo that s¢h¢JOI. Examples of other partnership activit*s are described below. Case Study l - Shrewsbury Ac8demy During the year, Shrewsbury School has run two sessions each week of Maths for Year 11 pupils from Shrew5bury Academy followed by tea in the schwl canteen lexcepl during COVID 19 periodl. The aim is lo boost the top and re-engage the bottom Year 11 pupils. We have received good feedback from pupils and staff on the impact of these sessions. Case Study 2 - Priory School The Hispanic Fellow. employed by sh￿WSbury School. was seconded one rnoming a week al no charge lo Prbory School lo support GCSE Spanish oral work for Year 10 and Year 11 pupils. Case Study 3 - Marches Mutti Academy Twsl IMMAT) Pupils from MMAT given access to UCAS and HE talks hosted by Shrewsbury Schtx>I. Heads of Facutties and teachers a￿ offered one4oryone or small group Subl￿t specrfic tutorials lo pupils from MMAT as part of their Oxbridge preparation. In M3r¢h 2020 it was confimied that Shrewsbury School'5 joint bid wrth MMAT for the DfE Systems Partnership grant had been successful, wrth a development grant of £20.0(10 which will be malch-funded by the Shrewsbury School in support of W￿er Maths provision and Year 10 careers programmgs. Page 6

SHREWSBURY SCHOOL GOVERNORS, REPORT {CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 Other community engagement More broadty. local schools, clubs and other organisations make use of both schools, facilities either free of charge or al rates below commerck41 th1$. As well as sUPPOrtin9 charrtable fundraising by pupils and staff. Shrewsbury School regularfy makes available ils facilities lo various external charitifrs. erther at no cost to Ihe charity or al heavity discounted rat$$ lo cover school costs. School 51aff are encouraged lo participate in the kcal and wider community. providing their lime free of charge. Such participation ranges from acting as Govemofs of local schcols lo assisting or9anisalions with productions in the perfoiming art5. Shrewsbury School's annual concert series is open lo the public and is well attended by members of the local community. A detailed inventory of the extensNe charitable 8Ctivty has been compiled and is updated periodieally, In addition, the schools record partnership aclivty on the school$toJelher.org website. Fundralslng Shrewsbury Sehool not participate in any fundraising actiwties dunng the year and Iherefora there arg no fundraisin9 disclosures necessary under S162A of the Charilies Act. Obl&¢tlves for the Year This year, the focus has been on. Continuing to provide broad access lo the School via the provision of scholarship and bursary funding lo enable pupils lo attend the School who otherwise would not have the financial resources lo do so. The completion of the 8arne$ Theaire in Summer 2020. Implemenlalion of the Strategic ptan adopted by the Governing B(￿ in Seplemb8f 2019. In addition, the￿ has been considerable focus on maintaining the eonlinuty of educational prows¢on for all our pupils during the COVID 19 pandèmie al both Shrewsbury Sch¢JoI and Packwood Haugh. REVIEW OF ACHIEVEMENTS ANO PERFORMANCE FOR THE YEAR Operational Perf0M￿nCe of the Sehts)I There were t￿¥0 rnajof events affecting the School during 2019-20. the merger wrth Packwood Haugh in August 2019, and the evacuation of pupils from both School Sites during the COVID 19 lockdown, starting in March 2020. Packwood Haugh merger The assets. liabilities. employees and trading activrties ol Packwoc*Y Haugh were transferred to Shrewsbury School on 1 August 2019. Packwood Haugh is a prep school, providing both boarding and day schooling lo girls and boys between the ages of 4 10 13. Pockwood Haugh. under the Headship of Rob Fox, retains ils own idenlily, name, unifomi and distinctiveness. The Headmaster of Packwood reports directly lo the Headrnasler of Shrewsbury School. The Prep School Govemors. Commiliee has Tesponsibilty for overseeing the running of Packwood Haugh. COVID 19 adjustments In March 2020 based on govemment instruth'ons both school srtes closed. except for the children of key workers, and education of pupils was continued wa on4ine transmission of lessons (Remote Leamingl. Pastoral support and cwurricular were also provkled remotety. 11 is worth noting the drive and ingenuity of Shrewsbury School and Packw¢))d Haugh staff in developing and delivering an effective Pfogramme of'educalion in remote,. Page 7

SHREWSBURY SCHOOL GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 The Goveming Body agreed lo make adjustments to redu￿ the lees al both schools for Summer Temi via an Extra￿rdinary Governing Body meeting in March 2020. Atthough the schools have been able to recoup some of the costs of boarding staff via the furfough scheme ICJRSI, both schools had an operational deficit for the Summer Temi 2020. Boarding and other staff vtho had no work while the sch¢x)I sites were shut were pul on furlough leave lor Apfil, May and June 2020. The charity received £707,984 in fudough payments under the CJRS. This year, Shrewsbury Schcol numbers averaged 808 12019 7901 pupils of whom 612 12019 - 6191 were boarders and 19612019 - 171} were day pupils. PackwocA Haugh Sehool numbers averaged 180 of whorn 68 were boarders. Shrewsbury School pupil numbers al the stsrt of the 2020r21 academic year were 819. and Packwood Haugh had 174 pupils. 11 was an extra-ordinary year for A Levels and GCSES. The exams were cancelled and, after somè last minute changes, pupils had a Choi￿ bewn their Cenlre Assessed Grades which were subject lo adiuslmenl via an algorithm and the original grades sel by the school. As a resur( of this 84.6°h of A Level candidates received the equivalent of A. lo B. and 71.40￿ of GCSE candidates received grades A. lo A. Given the confusion ol the assessment process il is not really appropriate to make the usual c(ynparalives lo previous years. What can be said is that these resutts are a lair sel ol outcomes for the pupils in question. Nobody has received a grade that is lower than what is just. and several have exceeded even the schcol's appraisal of Iheif abilrty as a result ol the Ofqual Algorithm. Outside the elassroom Shrewsbury School and Packwcod Haugh Sehool continued provide a wide range ol co curricular activities with many notable artislic perfom)ances, and achievements on the playing field. Grants and Awards The School, despite not possessing a large endowment feseNe, continues lo support and assist pupils lo come lo sh￿wSbUry. During the year the School awarded a lolal of £3.636.849 {2019 - £3.430,7661 of scholarships, grants. prizes, bursaries and other allowances lo pupils. of which £561.506 came from restricted funds, including £S41,25912019 - £559,016) from Shrewsbury &hool Foundation. The balance of scholarships. grants. prizes. bursaries and other alk)wances wero made from the School's own general reserves. The School holds a scholarship competition for suitabty qualffied candidates under the age of 14 each year. 11 awards four Butler Scholarships up to a value of 30QA of fees,. up lo four Kennedy Scholarships,. and two M055 Scholarships worth up to one-fifth ol fees". and up lo seven Alington Exhibrtion$ worth £2.000 per year. There are also up to four Music Scholarships worth up lo 30% of fees. each year. and tsvo Art Scholarships worth one-fifth of fees. For enlranls lo the School al Sixth Form level. there are a range of academic, music and sporting awards. In addition, the School offers means tested Sixth Fom sporting Scholarships worth up lo 100¢h of fges. Foundation Bursaries are awarded lo pupils who will make a signfficanl contribution to the School whether il be academically, in sport or through the arts. The fvnding foi these awards comes from the Shrewsbury School Foundation. whi¢h raises funds from former pupils who were residents In the particular house. In the year these awards lolalled £86,101 12019 £159.6491 and assisted 8 12019 - 111 pupils. In addition to the Foundation Awards, Shrewsbury School Foundation provided a fijrther £455,158 12019 - £399,366) in funding to support other bursaries. The Governors approved a detailed grant making poli￿ in June 2008 and this poliey is published on the School's website. In short. the Govemors, policy is to make bursary awards on the basis of the Individual's educational ability and his or hei family'5 ability lo pay, subject lo the particular conditions imposed by the original donor where the award is taken from restricted funds. Page 8

SHREWSBURY SCHOOL GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 Financial Review and Results for Year The financial statements renecl the acb'wbes and results of the Charty Ishrewsbury School and Packwoodl and ils subsidiary companies. Shrewsbury Schcd Enlerpri5es Limited and Shrewsbury School Trading Company Limited. The group had net incoming resources of £6.216.625 {2019- £2.158.1781 for the year. This surplus included, as a donation. £4.443,847 relating to the transfer of the assets arhd liabilities of Packwood Haugh on the merger of the Schools on 1 Augu512019. Excluding the aforementioned donation, the group had nel incoming resources ol £1.772,778. This shortfall compared to the Pfevious year. reflected the reduction in school fees charged for the Summer Term, the significant reduction in commercial letting, offset by the receipts under the Government's furlough scheme and reduction in expenditure due lo closure of both School siles for the Summer Term Iparticularly in relation to boarding and catering facilrties). During the year. the School Completed the eXtenS￿n and refvrfoishmenl of the Bames Theatre. Af(hough this was delayed several months during the COVID 19 lockdown. this was completed in Summer 2020. In order lo as5151 with the funding ol the Bames Theatre the School. In April 2020. secured a £2.000.000 loan from Handelsbanken Plc, over a six year (the first year being interest onty. the capital being repaid over 5 years). The School's strategic plan assumes the folkwiing moans of fina￿Ing the continued inv8glmenl in the School's facilities.. Aehieving operating surpluses that generate substanlol cash flows. This invofvgs conlinuousty rèviewing the cost base of the School In all areas lo ensure best use is being rnade of the School's resources, while maintaining a commitment lo excellence. and Shrewsbury School Foundation will continue to prowde finaner41 support for the Sehool. This is primarily in the form of funding for scholarships and bursaries. including Foundation Bursaries, bul also includes donations towards specifie building projects". and For large capital projects, the Schtxsl will Consider borrrJ•wng funds in the medium lemi, whilst ensuring that the overall level of borrowing is prudent.. and Further Increasing Ihg commercial income of the School.. new or refufbished School facilities are designed not only for use by the School, bul also for u>mmereial lettings, and to maKirni$o the opportunity for the wider communty." and Increase income generated by the Sch￿r$ overseas activities. Nel assets increased to £38.775.296 from £34.057.671. The increase comprised nel incorning resources of £6,216,625 (including the Packwood asseu liability donation of £4.443.847, and reduction in the market value of School investments of £88,536) and a £1,499,000 aduarial loss relating lo School's defined benefit pension scheme under FRS 102. The School's defined benefit seheme deficit. as calculated under the requirements of Financial Reporting Standard 102 IFRS1021 increased by £1.499.000 compared to the p￿￿OuS year and as valued under FRS102 assumptions is now £2.858,000. The increase in the deficit is the result of the market Conditions at the year-end (due lo COVID191, with liabilities inC￿8$1ng substantially due lo Ihe reduction in corporate bond yields which are used lo value the liabilities of Ihe Scheme. Capital expenditure tolalled £3.899.685. of this £2,827.454 related to the redevelopment of the Barnes Theatre, £283,964 on Infomialion technology, £182,015 on the design and planning of the refurbishment of Riggs Boarding House,. £89,800 on the purchase of laundry machinery and £76,788 on the establishment of a Lower School Common Room, The School's two subsidiary companies continued lo trade during the year. Shrewsbury School Enterprises Limited remained the vehicle through which the Schcol conducts ((s overseas school business,. ShrewsbLJry School Trading Company Limited. conlinLred to ¢¥)erate the School shop. sporting and leisure a¢tivitie5 and Commercial lets of the School premises. As a resutt of COVID19. all the commercial lettings were cancelled over Easter and the Summer, this had a signrficanl impact on the trading resutts of Shrew5bury School Trading Cornpany Limited. Any profrts made by these companies. in eX￿s$ of operating needs. are grft aided lo the Page 9

SHREWS8URY SCHOOL GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 Sehool. International School Developments The International Development Director has continued lo WO￿ wrth the IOC committee lo cement rglationships wi(h Shrewsbury International Asia ISIA}. as well as lo revEw opportunf(i&s in other parts of the wodd. Shrewsbury International Schwl Bangkok IRNersidel provides an important income stream, reflecting the success of the venture. The sile was a new build and opened in 2003, il currently has 1,783 pupils. aged be￿een 3 to 18. There is a close working retationship between the schools. Shrewsbury Inlemalional School Bangkok (City Campus) and Shrewsbury Sch¢x)I Intemalional Schwl, Hong Kong completed a second SU￿essIUl year of operation. The SIA high schools in mainland China moved closer lo the operating stage Further information regarding the Bangkok Schools be found al I￿.5hreW$bUry.aC.th ènd for the Hong Kong Sch￿1 al www.shrewsbury.hk Fundralslng Performanco The School received £5.7e6,18312019- £885,S921 in donions during the year of this £4,443,847. related lo the transfer of assels and liabilrtie5 from PackwoTrJ Haugh. Actual donations feceived lotalled £1,322,336, of this amount £1,252,092 was donated by Shrw$bury School Foundalhjn lo tho School. Shrewsbury School Foundation la separate Charity) raise funds lo donate lo the School for bursary support, capital and educational projects. In the Current year the Schtx)I received from the FoundalKJn, £639,857 for capital projects (mainly the 8arnes Thealrel, £541.259 to support bursaries, £10.975 to fund small Capitsl and educalsonal projec15 and £80,000 for marketing aclivitses. In addition, £17.292 was feceived from the Salopian Club relating lo staff and the Salopian Magazine. Other donations received were. £23.471 to be Invested in the Endowment Fund.. £19,590 to assist in future costs relating lo COVID19.. £6,422 to supp¢)rt bursaries and £3,469 to support educational projects. RESERVES POLICY The School does not posses$ large endowment reserves lo generate income to assist in the financing ol the School. Al the year-end End¢)wed Fund5 lolalled £1.337.640 and Reslricled Funds lolalled £786,685. because of the particular Spending con51Taints attached to them they are not available for funding the general operations of the School. Unreslricled Funds lotalled £36.650.971 are expendable In accordance wth the Objects of the School. However, these unrestricted funds. together with specrfic long-temi bank finance. have already been inve51ed by the Goveming Body in the building. development and refurbishment of School buildings and other fixed assets used by the School. Accordingty, there ore no current free ￿SeNe$ (unrestricted funds less tho net b¢x)k value of fixed assets financed by those fvndsl- Given our plans for new buildings. this nil balance wll continue for several years. This is in accordance with the long-lerm plans of the Trustees for the development of the School and they are satisfied that the resources available lo the School through extemal bank finance is adequale for its projected requirements. In addrtion to the operational land and building5, the School owns residential propertie5 for housing some of rts staff. There are also artefacls and WOTs of art, which have been acquired and accumulated over very many year5. These are of huge educational and wider cuAural benefit to the School Communty and some are made available. under appropnale condf(ions. lo extemal researchers and scholars. They are not revalued in the Balance Sheet and the GovemDrs are of the view that there is no benefit to be gained from incurnng the costs of valuations other than for insurance purposes. Page10

SHRE¥VSBURY SCHOOL GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 The annual revenue expendrture requ1￿mentS of the School a￿ generalty met from annual income. Prudent budgeting and Iighl financial control are deSig￿d to ensure that adequate but not excessive cash headroom is maintained, and this is supported by a seasonal overdraft facility. Cash balances have been held al a higher than Usual level during the recent pandemic as a precaution against uncertainty. The Governors are confident that the capital development plan can be achieved by the policies sel out above, supported by prudent borrowing and support from Shrew5bury School Foundation. The Governors have established a designated fund. whith aims lo provide bur5arial support lo enabl8 pupils lo attend the School. The intention of the Govemors is to all¢xale a proportion of the School'5 commercial income each year. based on an agreed calculation. subject to operating requirements. The intention is to build up the fund in the nexl 2 10 3 years, and al that point. income from Il will be used lo provide bursarial support lo pupils attending the School. During the year. the Tru51ees allccated £381,531 to the fund. Al the year end the value of this designated fund was £1,606,097. INVESTMENT POLICY The Governofs, as Trustees, have wide p¢)wers lo invest in propety and secLtrities. including stocks and shares. The Governors review, on a regular basis, the investment profile of the Sch¢Jol. the risks and returns achieved and the likely fvlure performance. The fees in advance funds are invested in a largeled relum lund wrth the aim of generating above inflation returns, while providing the securty of investments backing the tsvo years fees in advance liabilities. The policy of the School with regard lo end(Med and designated investments is lo ensure that they produ¢0 a regular and growing income stream, together wth capital growth. Thi5 policy is implemented by the School's investment advisors Rathbones Investment Managers. Funds are invested either directly in equities and corporate bonds, or in unilised funds and other 8ulhorised instruments both in the UK and overseas. The Investment Committee has agreed an internal benchmarking target. with Ralhbones and the performance of the investments are ben¢hmarked against this largel. The benchmark perfomiance for the year lo 31 July 2020 was a negative 3.960A. The School's investments averaged a negative return for the same period of 7.20Vo. PRINCIPAL RISKS AND UNCERTAINTIES As explained above. the Governors have consider8d the principal risks and uncertainties facing the School. The economic clirnale, especially during the COWD 19 pandemic. affects the ability of parents lo afford the school fees, and the affordability of fees is considered as an important factor in the long term financial planning. In lemis of unexpected costs. the Governors ensure that insurance is in place for known and insurable risk5. With a large built eslale, the School also monitors and plans for foreseeable future building repairs. referencing lo the condition survey conducted in 2090. The management learn also monitor carelully the level of scholarships and bursaries lo ensur8 that grant commrtmenls are maintained at a sustainable level, carefully reviewing the futurè grant funding available from Shrewsbury School Foundation. The School has also considered non-finaneial risks and as the healih antj safety of the pupils and staff is paramount. they consider any potential breach to be a principal risk. To miligale this they have developed policies lo ensure the regulations and gumlelines for the weware of pupils and staff are observed. FUTURE PLANS The communication and impfementation of the rewsed strategic plan for the next decade The continued development of a cross sector programme of partnership community engagement Revision of the Bursaries policy with a focus on Iransformalive bursaries The extension and renovation of Rigg's Hall Iconslruthon phase July 2020 to March 20211. Page 11

SHREWSBURY SCHOOL GOVERNORS. REPORT (CONTINUED} FOR THE YEAR ENDED 31 JULY 2020 ACCOUNTING AND REPORTING RESPONSIBIUTIES The Govemlng Body Is required by law lo prepare financial stslemenls for aach financial ye8r, whlch glve a true and fair view of the financial aclivities of the Charity and of ils financial position at the end of that year. In pr8paring those financial slalemenls the Goveming Body 15 required to.. s&lecl suitabl8 accounting poliaes and apply them consistently. make judgements and estimates that are reasonable and pnJdent'. stale whether applicable accounting stsndards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statemenis on Ihe going concem basis unless il is inappropriate lo presume that the Charity will conlinue in bvsiness. In the current uncertain economic climale the Goveming Body has specifically reviewed future school cashflows and is Gonfidgnl that il 1$ approprialg to pr(xJuce financi815talgments on a going concem basls. The Governlng Borly is r85ponsible for k8eping propgr accounting re￿rdS whlch disclos8, with r8asonabl8 accuracy al any Ilm&, th8 financial position of Ihe charity and enable il lo ensure that the financ181 slal6menls comply with the Chartlies Ad 2011 and the Shrewsbury School Statutes, approved by the Queen's Most Excellent Majesty. in Council on 12 October 2016. 11 Is also responsible for safeguarding the assets of th& Charity and hen¢0 for iaking i&asonable steps lor the prevention and deloction of fraud and other irregularilios. In delerminSng how 8mounts are presènted within items in the statement of financlal actlvS1ies and balance shgel, the Governors have regard lo the substance of the reported transaction or arrangèment, in accordance with genorally acceplod accounting principles or practice. So far as èach of the Govemors 1$ awaro at ￿ lime the report is approved.. There Is no rglgvanl audll InfomalSon ol whlch the (￿mpan￿9 auditors are unaware.. and The Governors have taken all steps th81 they ought lo have taken to make themselves aware of any relevant audll Inlomalbon and lo establish that Ihe auditors are awara ol that informallon. Audllors Crowe U.K. LLP have IndI￿ted Iheir willingness to remaln In office. This report w approved by the Governor5. on 28 November 2020 and signed on their behalf by.. T.H.P. Hayn•g Chairman Page 12

SHREWSBURY SCHOOL INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF SHREWSBURY SCHOOL Oplnion We have audrted the financial statements of ShTewsbury School Ilhe 'parenl charity) and ils subsidiaries Ilhe 'group'l for the year ended 31 July 2020 set out on pages 16 to 63. The financial reporting framework that has been applied in their preparation is applicable law and Unrted Kingdom Accounting Standards. including Financial Rèporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kin9dom Genefalty Accepted Accounting Practice). The financial stalemenls have been prepared in aetordance with Accounting and Reporting by Charities preparing their accoun15 in accordance with the Finanual Reporting Standards applicable in the UK and Republic of Ireland IFRS 1021 in preference to Ihe Accounting and Reporting by Chanlies. Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant wulat￿)nS bul has been withdrawn. This has been done in ordef for Ihe accounts lo provide a true and fair view in accordance wrth the Generally Accepted Accounting Pracliee effective for reporting periods beginning on or after 1 January 2015. In ou¥ opinion the financial stslemenls.. give a true and fair view of the slate of the Group's arKI of the parent charitls affairs as at 31 July 2020 and of the Group's incoming resources and application of rèsources, including rts income and expenditure for the year then ended", have been properfy prepared in accordance Unitgd Kingdom Generally Aecepled Accounting Practice.. and have been prepared in ae¢ordance wrth the requirements of the Charities Act 2011. 8a$ls for oplnlon We conducted our audit in accordance wrth International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards a￿ further described in the Audilorfs responsibilities for the audit of the financial slalemenls 5￿tion of our report. We are independent of the Group in accordan￿ wrth the ethical requirements that are relevant lo our audit of the financial statemen15 in the Unrtgd Kingdom. including the Financial Reporting Couneil's Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evrtlence we have obtained is sufficient and appropriate lo provide a basis lor our opinion. Conclusions rolating to golng concern We have nolhing to report in respect of the follwng matters in relation lo which the ISAS (UK) require us lo report lo you where". the Governors. use of the going concern basis of accounting in the preparation of the financial statements is not appropriate", or the Govemors have not disclosed in the financial slalemenls any identified material uneertainlies that may cast significant d04Jbl about the Group's or the parent charitys ability lo continue to adopt the going concem basis of accounting for a period of at ￿ast tsvelve months from the dale when the financial slalernenls are aulhorised for issue. Page13

SHREWSBURY SCHOOL INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF SHREWSBURY SCHOOL ICONTINUEDI Other Information The Govemors are responsible for the other infoThion. The other infoThion comprises the information included In the Annual report, olher than the financial statements and our Auditor's report Ihereon. Our opinion on the financial statemenls does not cover the other information and we do not express any form of assurance onclusion thereon. In connection with our audit of the financial stalemenls, our responsibility is lo read the other information and, in doing so, consider whether the other infomiati¢)n is malerialty inconsislenl wrth the financial statements or our knowledge obtained in the audit or othe￿ise appears to be materially misstated, If we idfrntify such material inconsistencies or apparent material mis51alemenls. we are required to deterniine whether there is a material misslalemenl in the financial slalemenls or a material misslalemenl of the other information. If, based on the work we have perfomied, we conclude that there is a material misststement of this other infomialion, w8 are required lo report Ihal fact. We have nothing lo report in this regard. Matters on whlch wg ar• r•qulred to report by ex¢eptlon We have nothing lo report in respect of the following matters whgre the Charit￿8 IAccounls and Reports) Rogulalions 2008 requires us lo report lo you rf. in our opinion.. the information given in the Governors. report is inconsislenl in any malenal respect with the financial slalemenls", or the parent charsty has not kept sUffic￿nt accounting reeord$', or the parent charity financial Statements are not in agree￿nI with Ihe accounting records and retums,. or we have not received all the infoimation and explanations we require for our audi(. Responslbllltles of Governors As explained more lully in the Govemors. responsibilrties slalemenl. Ihg Governors are responsible fgr the preparation of the financial slalemenls which give 8 true and fair view. and for such internal control as the Governofs determine is necessary to enable the preparatKJn of financ￿1 slalemenls that are tree from material misstatement, whether due lo fraud or enor. In preparing the financial slalemenls. the Governors are responsible for a$$essing the Group's and the parent charity's abilty lo Continue as a goiry con¢em. disclosing, as applicable. matters related lo going concern and using Ihe going concern basis of accounting unless the Governors either intend lo liquidate the Group or the parent charrty or lo cease operations. or have no realistic allemalive bul lo do 50. Page 14

SHREWSBURY SCHOOL INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF SHREWS8URY SCHOOL (CONTINUEDI Audltorfs responsibilitl•s for th• •udlt of the flnancial $tatem•nt We have been apwntod as a￿rtOr under section 151 of the Charrties Acl 2011 and report in accordance wrth the Act and relevant regulations made or having effect thereunder. Our Object￿ a￿ to obt&"n assurance aboul whether the financial slalements as a whole Bre free from malerk41 mtsslalemenl, ￿er due lo IraLwJ or error. and to Issue an Auditorfs report that includes our Opin￿￿. Reasonable assurance is a hpah of assuran￿, but is nol a guarantee that an audit conducted in accordance wrth ISA5 IUKI wrfl &%vays detect a matenal misststement when rt exis15. Misslalemenl$ can 8ri58 from fraud or error and are cOnS￿eTed matenal rf. indivKlually or in the a99regate, they could reasonably be expected lo influence the economic drfisions ol users tsken on t￿ ba￿ of these finanual statements. A further description of our responsibilrties for the audit of the financr41 sweffents Is hxated on the Financial Reporting Council's websrte al.. www.lr Audilorfs report. Thi$ descriptson foffl￿ part ol our U#• of our report This report is made K49ty lo Ihe chaws Go¥emors. as a bc#Yy. in accordance with Part 4 of the Charities {Accounls arKI Reports) ReguklM￿J 2C4)8. Our audrt work has been undertaken so that wo might 6lal8 lo tho chaiivs trustees those mattefs wa afe rwurred lo state lo them in an Audilorfs report and for no other purpose. To the fullest extent permitted by Iw. do rbQt xcepl OT assume responsibility lo anyone other than the charity nd rts Govemor5. as a body. lor our a￿￿rt work. fof Ihis reFKJrt. ty for the opinwis V•e have formed. UE LLP. Crow• U.IL LLP Slalulory Audrtor Carrick House Lypiatt Road Chettenhwn GL50 2QJ Dale." 6 January 2021 Crowe U.K. LLP are eligib￿ to xt 8¥ atvjilcrfs in terms crf Sec￿ 1212 01 the Ccthpanies Act 2006. Pag815

SHREWSBURY SCHOOL CONSOUDATED STATEMENT OF FINANCIAL AcmviTIES FOR THE YEAR ENDED 31 JULY 2020 Unrestricted funds 2020 Restri¢ted Endowment funds funds 2020 2020 Total funds 2020 Total funds 2019 Note Incomo and endowments from: Grants and donations Charitable activlti8s: School fees Other educational income Olher an¢illary trading income Other trading activities Inveslmonls Other income 4,358,558 1.384.154 23.471 5,766,183 885.592 25,705,526 26.705,526 23,476,512 333,528 333,528 310,329 116,930 1.483,465 83.818 707.984 116,930 1.483,465 122,323 707,984 334,448 1,935,863 111,339 36,156 2.349 Total income and endowments Expendlture on: Ralslng funds: Trading activrties Fundraising c¢)sls Financing costs Charltable act1v1t1￿. Education and grant making 32.789,809 1,420,310 25,820 34.235,939 27.054,083 762.416 362.546 612.139 762,416 362,546 512,139 1,076,367 396,813 239,877 10 25,702.360 591.317 28,293,677 23,396,907 Total expenditur 27,339,461 591.317 27.930,778 25, 709, 958 Nel gainslllosse51 on inveslmenls Not in¢omel lexpenditurel bèfor• transfers Transfers betsyeen funds 54.637 1143,173} 188,5361 214,053 5,504,985 828.993 1117,353) 6.216,625 2, 158,178 22 639,907 1639.9071 Net movernent in funds before other recognised gainslllossesl carried forward 6.144,892 189.086 1117.353} 6.216,625 2, 158, 178 Page 16

SHREWSBURY SCHOOL CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 Unrnstrfcted funds 2020 Restrlcted Endowment funds funds 2020 2020 Total funds 2020 Total funds 2019 Noto Nel movefflent In funds before other rècogni5ed galnslllosses} brought forward Actuarial losses on defined benefit pension schemes 6,144.892 189,086 {117.3531 6.216.625 2, 158, 178 27 11.499.000) 11.499,0001 (165,OOOJ Net movement In funds 4,64S,892 189,086 {117.3531 4.717,625 1, 993, 178 Re¢onclllatlon of funds.. Total funds brought forward Net rnovemenl in funds 32.OOS.079 4.645.892 597,599 189.086 1,454.993 1117.3531 34,057,671 4.717,625 32,064,493 1,993, 178 Total funds carrf•d for•vard 22 36,650.971 786.68S 1,337,640 38.775, 34,057,671 The notes on pages 23 10 63 fomi part of Ihese financial slalements. Page 17

SHREWSBURY SCHOOL CONSOUDATED BALANCE SHEET AS AT 31 JULY 2020 2020 2019 Note Fixed assats Tangible assets Investments 14 42,324,161 6,116,746 36,271, 726 5, 796,650 15 48,440,907 42.068.376 Current assets Stocks Debtors Cash al bank and in hand 16 17 310.020 1,842.073 4,496,043 260, 773 1,459,936 3.916.824 6,648.136 5,637,533 Creditors.. amounts talling due within ong year 18 15.67S.0291 {5,552,985J Net current assets 973.107 84, 548 Total as$•ls1os3 current liabllltles 49.414,014 42, 152, 924 Creditors.. amounts falling due after mcrfe than one year 19 17.780.718) (6,633, 253) Not assets gx¢ludlng pgnslon Ilablllty Defined benefrt pension Scheme1￿bIl￿ 41.633.296 35,519,671 27 12.858,0001 (1,462,OLIO) Totsl net assots 38.775,296 34.057, 677 Page18

SHREWS8URY SCHOOL CONSOUDATEO BALANCE SHEEf ICONTINUEDI AS AT 31 JULY 2020 2020 201 Nota Chafbty fvnd¥ 0￿riL￿1 fur5ds Rw41ilnprt fimid Urnestricted lunds Unr¢siricl?d funds exdthi p•nwft as lJ37.64U n6.64S 7.45¢.993 J97.599 22 22 39.508.971 12.858,0001 33.467.079 (1,462,CO)J To￿1 unrestrued funds 346S0.971 3200&079 Total fvnds 38.n5.2 34.057.671 Thg r￿d81 ilHt•rnenls were JFprwed tsSLWJ by tho GI￿￿nC￿5 on 28 Nov•rnb•r 2020 A sgned on Ihp. r behall ty. T.H.P. Hayn S.R. O•k•r Chairman The on p•fj￿ 23 fo SJ l(¥m ol t1￿ (vw•i stslenwjnf P89a 19

SHREWSBURY SCHOOL CHARITY BALANCE SHEET AS AT 31 JULY 2020 2020 2019 Note Flxed assets Tangible assets Investments 14 42,315.229 6.116.746 36,266. 782 5, 796,650 15 48,431,975 42.063,432 Current a$$ets Stocks Debtors Cash al bank and in hand 16 17 80.218 2,153,Tn 4.322,045 72, 156 1,898,397 3,471, 631 6.556.040 5.442, 184 Credrtors.. amounts falling due wrthin one year 18 {6,S80,3141 (5,352, 793) Net ¢urrent a$s•ts 975,726 89,391 Total ass•ts1gss Current Ilab511tles 49,407,701 42, 152, 823 Creditors.. amounts falling due aft8r more than one year 19 17.780.718) (6, 633,253) Net assèts •xcludlng penslon Ilabllity Defined benefrt pension scheme liability 41,626,983 {2,858,0001 35,519.570 27 f1,462,000) Total net assets 38.768,983 34,057,570 Page 20

SHREWS8URY SCMOOL CHARrrY BALANCE SHEEf ICONTINueDI AS AT 31 JULY 20ZO 2020 2019 Nol• Ch•rlty En￿￿Ment luTrJi 1.3J7.640 1,454,993 78Q685 UAr?Slr1¢￿d lun u11￿5trlcI•d luThtts oxcknY¥J IK4>d 39,501658 I2.8￿.1)00) 3146d.978 ll.462.tt￿j r(tsl ty7r•I￿ fvn 22 36.W.658 32.OQ4.978 Totsl fund• 38.768,gB3 34.OJ7.5TO The fir￿n￿l sliilvTTr¥nlX w•r• approvoo lor i5su• by lh• GovorThys ¢>n 28 ￿VernD￿r 2020 and $4nèd o ?uir boh4M try. T.H.P. H•yn04 Chairmlii .￿ 8•k•r niy ￿￿•$ on 23 10 63 loThn pgrf ollh¢3è fi￿rK*1 si#l•M￿lI. P8ge 21

SHREWSBURY SCHOOL CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2020 2020 2019 Note Cash Ilows from operatlng activities Net cash provided by operating adivrties 23 3,771,970 4,220.590 Cash flows from Investing aclivitles Dividends and interest from investments Purchase of tangible fixed assets Proceeds from sale of investments Purchase of investments 122,323 I I t,339 13,899,6851 (1,326,061) 423,427 213,513 1469,4581 (695,380) Net cash used In investlng acllvltles 13,823,393) 11.696.5891 Cash flows from financlng a¢tlvltles Cash inflows from new borrowing Repayments of borrowing Interest paid on boirowngs 2,000,000 1907,3471 (853,231? 199,4021 (121,516) Net Cash provldedllusedl In flnanclng acllvltles 993,251 1974,7471 Change In cash and cash wulvalents In the year Cash and cash equivalents al the beginning of the year 941,828 1.549,2S4 4,089.359 2,540, 105 Cash and cash equlval•nts at the end of tho year 24 5,031,187 4,089,359 The notes on pages 23 to 63 fom part of these financial stalements Page 22

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 L8gal status of the Charlty The School is governed in accordance with the Shrewsbury School Stalules approved by the Queen's Most Excellent Majesty in Council on 12 October 2016. whose iegi51ered office ané primary place of business is Shrew5bury School. The Schools. Shrewsbury. SY3 7AA. 11 has no share capital. Its principal activity is the provision of boarding and day Schooling. 11 is a registered Charity in England and Wale5 and it's Charity registrat￿n number is 528413. Ac¢ountlng poli¢les 2.1 Basls of preparation of finan¢lal statements Th8 financial slalements have been prepared in xcordance with the Charities SORP IFRS 1021- Accounting and Reporting by Charrties". Statement of Recommended Practice applicable to charities preparing their accoun15 in accordanee with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20151. Ihe Financial Reporting Standard aPplI￿ble in the UK and Republi¢ of Ireland IFRS 1021 and the Charrties Act 2011. The financial statements have been prepared lo give a 'lrue and lairf view and have departed from the Charities (Accounts and Report51 Regulations 2008 only lo the extent required lo provide a 'lrue and fairf wew. This departu￿ has Invofved following the Charities SORP IFRS 1021 published on 1 S July 2014 rather than the Accounting and Reporting by Charrties.. Statement ef Recommended Practice effective from 1 April 2005 wh￿h has since been wrthdrawn. Shrewsbury School meets the definition of a public benefit enlrty under FRS 102. Assets and liabilities are inilialty recognised al hislorieal cost or Iransa¢tion value unless olhewise slalod in the relevant attounlirvj policy. The Consolidated slalemenl of financial actwrties ISOFAI and Consolitjated balance sheet consolidate the financk41 slalemenls of the ehanty and rts subsidiary undertakings. The results ol the subsidiaries are consolidated on a line by line basis. P￿ase see note 8 for further details on the subsidiaries. No separate SOFA has been presented for the Charity alone. The net result for the year relating lo the School amounted lo a surplus of £4,711,41312019- £1.998,7601. 2.2 Going concérn Having rewewed the lunding facilrties available to the School together with the expected ongoing demand for places and the School's future projected cash fiows. the Govgrnors have a reasonable expectation that the School has adequate resources to continue rts activities for the fO￿seeable future and consider that there were no material uncertainties over the School's financial viability. Accordingly, they continue lo adopt the going concem basis in preparing the financAI statements as outlined in the Slalemenl of Accounting and Reporting Responsibilities on page 12. Page 23

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Accounting policies Icontinuedl 2.3 Critical accounting estlmates and areas oljudgment In the application of Ihe accountin9 policies. Trustees are required to make judgement. eslimales, and assumptions about the carrying value of assets and liabilities that a￿ not ￿adIlY apparent from other sources. The eslimales and Underf￿ng assumptions are based on historical experience and other factor5 that are considered lo be relevant. Actual results may differ from these eslimales. The eslimales and undedw'ng assumptions are reviewed on an ongoing basis. Revisions lo accounting estimates are reeognised in the pencé in which the estimate 1$ revisod if the revision affects only that penod. or in the period of Ihe iemsion and future periods if the revision affected current and future peritsjs. In the view of the Iruslees. no assumptions con¢8rning the future or eslimalion uncertainly affecting assets or liabilities al the balance sheet dale are likely lo resurt in a material adjuslmenl lo their carrwng amounts in the next financial year. 2.4 Fund accountlng General funds are unrestricted funds which are available for use al the discretion of the Governors in furtherance of the general obiectw¢s of the Group and which have not been designated for other purposes. Designated funds comprise unreslricled funds Ihal have been sel aside by the Governors for particular purposes. The aim and use of each designated fund is sel out in the notes lo the financial s18lemenls. Reslrided funds are funds which are lo be used in accordance wi(h specific reslriclion5 imposed by donors or which have been raised by the Group for particular purposes. Endowment funds are d¢)nations required to be retained as capital in accordance with the donors, wishes - pernianenl or expendable according lo the natu￿ of the reslriclions. The costs of raising and administering such funds are charged against the specrfic fund. The aim and use ol each restricted and endcf•vmenl fund is set out in the notes lo the financial slalemenls. Investment income, gains and105ses are allccated lo the appropriate fund. Page 24

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Accounting policles Icontlnued) 2.5 Income All incoming resources are included in the Slalemenl of Financial Activities when the School has enlrtlemenl lo the income. the amount can be quantified with reasonable accuracy and the economic benefit lo the S¢hod is considerefj Pfobable. Fees receivable and charges for seryices and use of pr8mise5 are accounted for in the peri¢xl in which the service is provided. Fees receivable are slated after deducting allcN4ances, scholarships and other remissions granted by the Schod. Income from other trading activities comprises revenue recognised by the School'5 wholly owned subsidiaries in ￿SpeCt of goods and services supplied dunng the year, exclusive of Value Added Tax and trade discounts. Voluntary income is accounted for as and when entitlement arises, the amount can be reliably quantified and the econom￿ benefit lo the S¢hc4)l is considered probable. Voluntary income for the School's general purposes 15 accounted for as unreslricled and is credited lo the Gen8ral Rgserve Where through the term$ of an appeal or from the donor there is a tru51 law reslriclion on the use of any voluntary incomo. the income is credited lo the relevant restricted fund or endowmenl. Gifts in Kind woukl be valued at eslimaled open market value al the dale ol the gift, in the case ol assets for relenli¢)n or consumption or al the value lo the School in the case of donated services of facilf(ie3. Investment income from dIV￿endS. bank balances and fixed interest securf(ies 1$ a¢¢ounled for on an accruals basis. 2.6 Expendllure Charitable activities and Govemancg costs are costs ineurred on the charity's operations, including support costs and costs relaling lo the governance of the charty apportioned lo charitable aclivilies. Expenditure is accrued as soon as a Irability is considered probable discounted lo present value for longer term liabilities and has been included under expense categories that aggregate all costs for allocation to acliwlies. Where costs cannot be directly attnbuted lo particular activities they have been allocated on a basis consistent with the use of the resources. Liabilities are recognised where there is a legal or constructive obligation ccfnmrtting thg entitpès to the expenditure. Fundraising costs are those incurred in Seeking voluntary contributions in relation lo Shrewsbury Schwl Foundation. a connected charity Icharty number 5284151. Provided that. and so long as, Shrewsbury School Found*ion exercises and continues to exercise its chari(able objects in furtherance of the objects Ilhe "Shrewsbury School Charitsble Objects'} sel out in the Foundation Trust Deed, the School shall pay the employment, administrative and other costs and expenses of the Foundation in furthering Shrewsbury School's Charitable Objects. Support costs are Ih05e costs that, whilst necessary lo deliver an activty. do not themselves produce or constitute the output of the charitable activity. Included in support costs of the School are bursary costs, payroll adminislralion, budgeting and accounting. information technology, human resources and finance. School trip expendrture is includ￿] undei support costs. Page 25

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Accounting pollcles (continuèd) 2.6 Exp•ndlture IcontSnuedl Governance cos15 comprise the costs of running the charity including strategic planning for ils future developrnenl, also intemal and extemal audrt, any legal advice lor the Governors and all eosls of complying wrth constitutional and slalulory requirements such as the cos15 of Board and Committee meetings and ol preparing 51alulory accounts and satisfying public accountability. 2.7 Government grants Government grants are credrted lo Ihe Consolidated ststement of financial activities as the related expenditure is incurred. 2.8 Tanglble flxed assets and depr•clalion Computer equipment costing more than £300 1$ capilalised and carried in the Balance Sheet al historical cost. Major relurbishmenl expènditure, equipment. boats and vehicles ¢osling morg than £1,oIX) arg capilalised and carTied In the Balance Sheet al historical cost. Tangible fixed assels are carried al eosl, nel of depreciation and any provision for impairment. Dep￿CIall0n is pfovided al rates calculated to write off the ¢05t of fixed assets, less their estimated residual value, ¢)ver their expeded useful lives on the following basos.. Freehold propety Furniture, fixtures and frttings and equipment Boats 10 yeais Ground machines and vehicles - &10 years 1￿50 years - &10 years Depreeialion 15 not charged on freehold land or assets under the course of construction. Leasehold propety is depreciated over the term of the lease. Depreciat￿n is ealeulated on a monthly basis. The School owns a number of cultural and histori¢ artifacts which are considered to be heritage assets. No value is attributed lo them in the Balance Sheet and no depreciation is charged on the grounds that, for many of the assets. relÈable historic cost information is not available and th8 depreciated hislorTcal cost of the assets is likety lo be immalenal. In line with the Charrty SORP. Shrewsbury School has not recognised these assets. as infomiation to obtain their cost or value annot be obtained al a cosl commensurate wrth the benefit lo the usets of the actounls. 2.9 Invèstments Investments are slated at market value at the Balance Sheet date. The Consolidated 5talemenl of financial aCt￿rtIeS inclLtdes the net gains and105ses arising on revaluations and disposals throughout the year. Investments in subsidiaries are valued al cost ￿sS provision for impaimienl. Page 26

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 31 JULY 2020 Accounting pollcles l¢ontinued} 2.10 0￿ratIng leases Rentals paid under operating leases are charged lo the Consdidaled slalemonl of financial activities on a slraighl line basis over the lease lemi. Ben8fils received and receNable as an incentive lo sign an operating lease are recognised on a slraighl line basis over the lease tem). unless another $y$tematic basis 15 represenlalive of the lime pattern of the lessee's benefit from Ihe use of the leased asset. 2.11 Stocks Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving sl¢xks. 2.12 0•btors Short temi debtors are measured at trans&tKin price, le$$ any impaimenl. Loans receivable are measured initially al lair value, net of transaction Costs, and are measured subsequently at amortised costs using the effective interesl melh¢xi. less any impaim)enl. 2.13 Crodltors Short lem creditors are measured al the transaction price. Other financial liabilities, including bank loans, are measured initially al lair valve, nel of transaction costs. and are measure(I subsequently al amortised cost using Ihe effectTve interest mdhod. 2.14 Fees In advance Parents may, subject to contractual terms and cond((ions, pay lo the Schc￿l luf(ion fees in advance. The money may be ￿UMed, subj'ed lo specffic condrtions. Investments are held lo ￿Ver the next tsvo years capital liabilrties. 2.15 Flnanclal Instruments Basic financial inslTuments are initialy wognised at transaction value and subsequently measured al 8mortised c051 with the exception of investments which a￿ held at fair value. Financial assets held at amortised cost comprise cash al bank and in hand. Ic*Jether wrth trade and other debtors. A specific provision is made for debts for which recoverability is in doubl. Cash at bank and in hand is defined as all cash held In in51anl access bank accounts and used as working caprtal. Financial Iiabililies held al amortised c051 comprise all creditors except social securrty and other taxes and provisions. Assols and Iiabilrties held in foreign cuirency are translated to GBP al the Balance Sheet dale al an appropriate year end exchange rate. 2.16 Concessionary Loans The loans from Shrewsbury Schod Foundation and ShropshI￿ Council Isee note 191 are considered to meet the criteria of concessionary loans under FRS 102. They have been recorded in the financial statements at face value. Page 27

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Accountlng polici8s {¢ontlnued) 2.17 Pensions The School operates a deffned contribution pension scheme for non-leaching staff Ishrewsbury School120011 Retirements Benefrts Schemel. This scheme gives exemption from the requirement lo offer a stakeholder pension Scheme. During the year the total contributions were £323,66712019- £251,924). The School also contributes lo a personal pension scheme for the benefit of certain Packwood Haugh School employees. The schemes is a defined contribution seheme administered by Scottish Widows. During the year the lolal contributions were £26,276. The Sch¢JoI eonlnbutes lo a defined benefit penS￿n scheme (final salary scheme) for the academic staff, which is a national scheme operated for the Department for Education and Skills, which requires contributions lo be made lo a separately administered fund. The lolal premiums paid during the year were £1,708,40212019- £1,025,3&81. In addition, the Sch¢)ol operates a defined benefit pension scheme for non leaching stsff Ishrewsbury School119711 Pension and Lrfe Assurance Scheme). which is closed lo new member5. The basis of contributions lo the Scheme is calculated according lo the advice of the Scheme a¢luary. During the year the lotsl conlribLth'ons were £11,409 {2019- £17.8751. Page 28

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Income trom donations and legacles Unrestrictgd Restricted Endowment funds funds funds 2020 2020 2020 Total funds 2020 Total funds 2019 Donations Transfer in of assets and liabilities from Packwood Haugh Seh¢)ol 1.298,865 23.471 1,322,336 885.592 4.358.558 85,289 4.443,847 Total 2020 4,358,558 1,384.154 23,471 5,766,183 885.592 Total 2019 885.592 885.592 On 1 August 2019 all of the assets and IHbililies of the Packwood Haugh School were Iransferrgd into Shfewsbury School. The transfer is re￿rded as a donation Into Shrewsbury School. Charftable actlvltles - School f•es rècelvable 2020 2019 The School's fee Income compr1$￿. Gross fees Less.. Totsl butsariès, ￿hOlarshIpS and allcywartes 28,780,869 26,372,093 13,636,849> (3,430, 766J 25,144,020 22, 881,327 Add back bursaries. scholarships and allowances paid for by Restricted Funds S61.606 595. 185 25,705,526 23,476.512 Scholarships, bursaries and other awards were paid to 388 pupils12019 - 299). Within this Means tested bursaries totsliNJ £2,648,304 paid 10 210 pupils 12019 £2,281,139 to 184 pupils). Page 29

SHREWS8URY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Charitable activities- Other income 2020 2019 Other educational charitable Income Entrance and regislralton fees Courses and sub-lettings Royatties recejved 138,608 135.295 59.625 81.305 164, 682 64,342 333,528 310,329 2020 2019 Oiher anclllary aetivitles Commissions re￿iVed School trips Late payment surcharges 3,442 113,188 300 6, 704 327,444 900 116,930 334,448 Other trad5ng actlvltiès 2020 2019 Trading activities SSEL Trading activrties SSTCL 919,548 563,917 798,364 1, 137.499 1.483,465 1,935,863 Page 30

SHREWS8URY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Other trading activities lcontlnuedl Shrewsbury School Ent•rprises Limited ISSELI The Charity owns the whde of the £1 ordinary share ¢apitsl of Shrewsbury School Enterprises Limited (Company regi51ralion number 45355851. incorporated in England. The Company's principle activty is the proviS￿n ol consulting $ervic&s to inlemalional Schools. Ils trading re$uA$ for the period, as extraded from the audited xcounls. are sumrnarised below.. 2020 2019 Turnover Administration 919,299 1224,4921 798,245 (189,002) Op•rallng proflt 694,807 609.243 Interest payable Interè51 received {2,0401 249 (2,409) 119 Profit for the year 693,016 606.953 Gift aid payThent 1687,4341 {612,535) Retalned proflvllossl 5,582 (5, 582} Shrewsbury School EnleTprises Limrted made 3 grfl aKI donation of £687,434 12019 - £612,535110 Shrewsbury School dufing the year. The nel assets of Shrewsbury School Enterprises Limited at 31 July 2020 amounted te £S,S8312019 - £11. Al the year end Shrewsbury School Ente￿nSeS Limited ¢xved Shrewsbury SchGvI £841,140 12019 £841,483). Of which £137.63512019 - £137,635) is an unsecured k)an, repayable wrth one yearfs notice and interest charges * 1% above Lbyds Bank PIC base rate. The management charge from the School to Shrewsbury Enterprises Limited was £187,22e 12019 £54.1691. In addition there is a licence fee of £10.00012019- £10,000). Page 31

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Other trading activities {COntinu￿} Shrewsbury School Trading Company Limiled ISSTCLI The Charty owns the whole of the £100 ordinary share caprtal of Shrewsbury School Trading Company Limrted (Company registration number 55800191. incorporated in England. The principal activity of the Company wa5 the opeialh)n of the School shop and other re¢￿allo￿al activf(ies. Ils trading results for the peri()J. as extracted from the audited accounts, are summarisod bg10w'. 2020 2019 Turnover Cost of sales 546.453 1299,8601 1, 136,366 (624,227) Gross profft 246,593 512, 139 Administration Other operating income 1236.0241 (260, 729) 16,487 Operallng profft 27.056 251,410 Interest receivable 977 1, 133 Proflt for the ygar 28,033 252,543 Gift aid payment 127,4031 1252,543) Retained profit 630 ShrewsbLSry Schod Trading Company Limited made a gift donation of £27,40312019 - £252,543110 Shrewsbury School during the year. The nel assets of Shrewsbury Schcol Trading Company Limited al 31 ju￿ 2020 amounted to £73012019 - £1001. At the year end Shrewsbury Schod Trading Company Limrted ￿ed Shrewsbury School £122,85012019 £351,0821. The management charge from the School lo Shrewsbury School Trading Company Limited was £91,634 12019- £109,802). Page 32

SHREWS8URY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 In¥&stment income Unrestrlcted Restrtcted Endowment funds funds funds 2020 2020 2020 Total funds 2020 Total fvnds 2019 Interest Dividend income 17.236 66.582 17,236 105.087 13,400 97,939 36,156 2,349 Total 2020 83.818 36,156 2,349 122,323 111,339 Total 2019 68,080 40,620 2,639 111.339 Other Incornlng resourees Unrèstrlcted funds 2020 Total fund8 2020 Total funds 2019 Govemmenl grant 707.984 707,984 The govemmenl grant received during the year related lo the Coronavirus Job Retention Scheme. Expgndlture on raislng funds Trnding costs of the subsldlar1•5 Unrestrlcled fvnds 2020 Total funds 2020 Total funds 2019 Other costs Staff costs DeprKiation 367.176 393,150 2.090 367,176 393,150 2,090 797, 752 277,531 1.084 Total 2020 762,416 762,416 1,076,367 rolal 2019 I,OT6.367 1.076.36T Page 33

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Expondituro on ralslng funds Icontinuedl Fundralslng for voluntary resourcos Unrestrictgd fvnd$ 2020 Total funds 2020 Total fvnds 2019 Other cos15 Staff costs 130.764 231.782 130.764 231.782 182,814 213,999 Total 2020 362.546 362,546 396,813 Total 2019 396.813 396,813 10. Flnanclng costs Unrestrlcted funds 2020 Total funds 2020 Total funds 2019 Fees in advance financing cost Bad debts and debt wlleclion Bank and invesknenl manager charges Loan Inte￿$1 Pension scheme financing cost 92,670 227,242 63,825 99.402 29,000 92,670 227,242 63,B25 99,402 29.000 98.302 (63,515) 48,574 121,516 35,000 Total 2020 512,139 512,139 239,877 Total 2019 239.877 239,877 Page 34

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Analysis of expenditure on charitable activltles Summary by fund type Unrestricted Restrlcted funds funds 2020 2020 Total funds 2020 Total fvnds 2019 Teachin9 Welfare Premise5 Support and goveman¢g Grants, awards and prizes 12,603,128 3.442,817 6.320,614 3.335,801 12.603.128 70, 187. 747 3.442.817 3,504.809 6,320.614 5.882.907 3,335,801 3. 181, 7Q5 591,317 639, 733 591,317 Total 2020 25.702.360 591,317 26,293,677 23,396,901 Total 2019 22,757,168 639. T33 23.396,901 Summary by expendilure typ Total funds 2020 Tolal funds 2019 Staff costs Depreciatlon Other costs 2020 2020 2020 Teaching Welfare Premises Support and govemance Grants, awards and prties 11.286,173 1.086.607 2.050.238 1,967.589 1.316.955 12,603.128 10, 18T, 747 2,356.210 3,442.817 3,504,809 1.772.314 6,320,614 5,882,907 1,368,212 3,335,801 3, 181, 705 591,317 591,317 639. 733 2,498.C62 Total 2020 16,390,607 2,498.C62 7,405,008 26,293,677 23,396,901 Total 2019 13.006 786 2.369.629 8,020,486 23,396.901 Page 35

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Grants. awards and prizes 2020 2019 From rnstrict8d fund$: Bursaries and schokgrships Prizes and awards 561,506 29,811 595, 185 44,548 591,317 639, 733 Governance included In support costs: 2020 2019 Remuneration paid to auditor for audit services Remuneration paid lo auditor for non- audrt services Other govemance costs 41.640 14.076 87.143 38,400 44, 791 256,320 142.859 339,511 12. Governors. r•rnunoratlon and exp•n$e8 During the year, no Govemots reeèived any remuneration or other benefits (2019- £NIL). During the year ended 31 Juty 2020, expenses lotalling £2,288 were reimbursed or paid directly 10 7 Governors (2019 - £1.537 10 7 Govemots). The Govemors reimbursement of 8xpens8s rglaled to travel and accomms)dalion. Page 36

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 13. Slaff costs Group 2020 Group 2019 Wages and salaries Social securty cost$ Other pension Costs INole 271 13,594,684 11, 136,491 1.376,131 1, 129.891 2.069,754 1,295. 105 17,040,569 13,561,487 less caprtalised labour Costs 125,0301 (63, 171) 17,015,539 13,498,316 During the year there were rèdundancy or lemiination payTnenls made which amounted lo £84,47412019 - £36.1001. There was £46.38012019- £36,100) oulstsnding al the year end. The average number of pgrsons employed by the charrty during the year was as follows.. Group 2020 No. Group 2019 No. Teaching Welfare Premises Support Other activities 244 172 46 115 57 16 68 13 504 406 Page 37

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 13. Staff costs Icontinu8dl The number of empbyees whose empw benefrts (excluding employer pension costs) exceeded £60,000 was. Group 2020 No. Group 2079 No. In the band £60,001 - £70.000 In the band £70,001- £80.000 In the band £80,001- £90,000 In the band £90,001 - £100.1)00 In the band £120.001 - £130.000 In the band £130.001 - £140,000 In the band £140.001- £1 SO,000 In the band £190,001 - £200,000 In the band £230,001 - £240,OIJO 31 11 29 11 Ag9regate employee benofils ol key management pèrsonnel 1,492,717 1,236,676 Key management includes the Senior Leadership lean. Page 38

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 14. Tangible fixed assets Group Assets In course of construction Frnehold Furniture, Land & Fixtures Buikllngs and fittings Ground Machines Boats & V8hicl•s Total Cost or valuatlon Al 1 August 2019 Additions Transfers in from Packw¢)od Haugh School Disposals Transfers befvleerb classes 624,398 48.623,336 9.509.714 3.178,622 609.069 936,527 1,238,fA9 60,932,624 46,160 65,834 3,899,685 4,376,981 271,626 1546) 4,717 4,653.324 123,0441 123.5901 {187A891 187.489 Al 31 July 2020 3,615.531 $3,187.806 10,389,863 982.687 1,286,156 69,462.043 Depreciation Al 1 August 2019 Charge for the year On disposals 16,002.135 7,182,855 1.632.851 72S.356 11241 638.847 59.104 837,061 24,660.898 82,841 2,500.152 123,0441 123.1681 Al 31 Juty 2020 17.634.986 7,908,087 697.9S1 896,858 27,137.882 Net book value Al 31 Juty 2020 3,615,531 35,552.820 2.481,776 284.736 389,298 42,324,161 Al 31 Juty 2019 624,398 32.621.201 2.326,859 297.680 401,588 36,271,726 Page 39

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 14. Tangible fixed assets {continu•dl Charlty Assets In course of construction Frnohold Furniture, Land & Fixtures & Bulldln9S ritting$ Ground Machines Boats & Vehicles Total Cost or valuatlon Al 1 August 2019 Additions Transfers in from Packwo¢xl Haugh School Disposals Transfers be￿een elasses 624.398 48.623.336 9.501.744 3.178.622 602.569 936,527 46,160 1,238,649 60,924.654 65,834 3.893.185 4.376,981 271,626 4,717 4,653,324 {23,0441 123,0441 {187.4891 187,489 Al 31 July 2020 3,615.531 $3.187,806 10,375.939 982.687 1,286,156 69,448,119 Deprèciatlon Al 1 August 2019 Charge for the year On disposals 16,002,135 7,179,829 1,632,8S1 723,266 638,847 59.104 837,061 24,6S7.872 82,841 2,498,062 {23,0441 123,0441 At 31 July 2020 17,634,986 7,903,095 697.951 896,858 27.132,890 Net book value Al 31 Juty 2020 3,615,531 35.552,820 2,472.844 284,736 389,298 42,316,229 Al 31 July 2019 624,398 32,621.201 2.321,915 297.680 401,588 36,266, 782 Page40

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 15. Fix•d asset investments Deslgnated Fund Endowed Funds Fees In Advance Total Group and charlty Cost or valuatlon Al 1 August 2019 Additions Disposals Nel investments gainsllbssesl Movement in cash deposits 1.307,229 171,867 {122.0161 1125.1011 366.532 1.459.045 297.591 {301,4111 1143,2811 3.030,376 5,796.650 469,458 1423,4271 188,5361 362.601 179,846 2,224 At 31 July 2020 1.588,511 1,315,789 3.212,446 6,116,746 Net book valuo Al 31 July 2020 1,588,511 1,315,789 3,212,446 6.116.746 Al 31 July 2019 1,307,229 1,459.045 3,030,376 5, 796, 650 Investments are primarily hekl lo prowde an inveslm6nl return lo the SChC￿l. Investments at market valu& eomprlse: 2020 2019 A¢lNely managed secunts'es Quoted stocks Cash 3.170,350 2.411,251 535,144 2,990,504 2,633,603 172.543 Total market valug 6.116,745 5, 796,650 Page 41

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Flxed asset investments (conllnuedl Mat8rial investments The following investments are held whith represent more than 5% of the lotsl market value of investments held.. 2020 2019 Link Fund Solutions - Ruffer Total Rètum Link Fund Solutions - Trojan Inc 1.524.716 1.64S,634 1,429,956 1.560,548 16. Stocks Group 2020 Gmup 2019 Charlty 2020 Charity 2019 Goods for ￿Sale and consumables 310.020 260, 773 80.218 72, 156 Stock recogni$ed as an 8xpens8 during the year was £299,860 {2019- £624,227). 17. Debtorn Group 2020 Group 2019 Charlty 2020 Charity 2019 School fees Arnounls owed by group undertakings Other debtors PTepayments and accnjed income 458,327 263, 760 458,327 963,990 524.335 207,125 263, 760 1, 792,666 210.395 231.576 1,155.805 227.941 938, 125 258,051 1.842,073 1,459,936 2,153,777 1,898,397 An impairment loss of £219.28812019- gain of £65,445) was ￿OgnISed against the School fee debtors. Included within amunls due from group undertaking5 is a loan lo Shrewsbury School Enterprises Limited of £137,63512019 - £137.6351. The is unsecured and repayable with one yearf5 notice and 15 charged at 1 /0 above Uoyds Bank PIC base rate. Page 42

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOED 31 JULY 2020 18. Creditors- Amounts falling due within one yeai Group 2020 Group 2019 Charity 2020 Charity 2019 Trade credrtor5 Other laxalion and 50cial security Fee deposits Fees in advance (see note 201 Other creditors Accruals and deferred in Other loan Term loan 1 Term loan 2 Temi loan 3 194,237 345,029 910.966 1.765.438 1.037.280 375.287 65.1)00 428,593 461,486 91,713 644,843 340,454 732.591 2,022,271 631.934 277,409 65,000 398,568 439,915 183,304 343,237 910,966 1.76S,438 998.737 331.840 65,000 428.593 461,486 91,713 606,560 290,271 732,591 2,022,271 622, 187 175.430 65.000 398,568 439,915 5,675,029 5.552,985 5,580,314 5,352, 793 wrthin other credrtOTS is £214.09612019- £189.407I payabfe in respect of pension contributions. 19. Credltors: Amounts falllng due after more than one year Group 2020 Group 2019 Charlty 2020 Ch8rity 2019 Loan from Shrewsbury Scho)l Foundation Fees deposrts Feèg in advance (see note 20) Other loan Temi loan 1 Temi loan 2 Term loan 3 1,296,046 2,671,920 1.066,575 693,334 144,556 1,296.046 2.465,197 I.OT5, 17r 758,334 5T7,013 461,486 1,296,046 2,671.920 1,066.575 693.334 144.556 1,296.046 2,465, 197 1,075, 177 758,334 577.013 461,486 1,908,287 1,908,287 7.780,718 6, 633,253 7,780,718 6,633.253 The loan from Shrewsbury School Foundation is unsecured. interest free and has no fixed payment lem8. The loan is considered a concessionary ban_ Page 43

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Cr•ditors: Amounts falling due after more than one y&ar lcontinuedl Othèr loan The olhei kjan has been prt)vided by Shropshire Council. The loan is repayable by Apnl 2032 paid by monthly instalmenls. The loan is interest free and is secured on the foll¢)wing properties.. Mosers Hall. The New House, 6 Ashton Road, 13 aNJ 15 Ashton Road. This loan is Cons￿ered to be a concessionary loan. The other loan falls du& as folbws". 2020 2019 Be￿een 1-2 years Between 2-5 years Over S years 65,000 195,000 433,334 65.000 195,000 498,334 693,334 758.334 Temi loan 1 The term loan from Lloyds Bank is secured by a first legal Charge over the freehold land and buildings al The Tudors. Tudor House, including Emma Darwin Hall. The lem) loan is repayable by September 2021 in 3Q lermly inslalmenls. The interest rale is fixed at 5.94%. The lerrn loan falls due as follctws.. 2020 2019 Betsyeen 1-2 years BetN48en 2-5 years 144,S56 448,475 128,538 144,$56 577,013 Page 44 "Lk

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Creditors: Amounts falllng due after more than on* year {continuodl Terni loan 2 The tem loan from Handelsbanken is unsecured. The temi loan is repayable by May 2021 in 20 quartedy inslalments. The interest rate is fixed al 4.85%. The term loan lalls due as follows.. 2020 2019 BeN¥een 1-2 year5 461,486 Temi loan 3 The loan from Handelsbanken is unsecured. The ban is repayable by April 2026 in 24 quarterly instalmenls. The interest rate is fixed al 3.63%. The lem loan falls due as folltr+VS'. 2020 2019 Be￿86n 1-2 years Be￿¢¢n 2-5 years Over 5 years 374,98S 1.209,813 323,489 1,908,287 Page 45

SHREWS8URY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 20. Fees In advance Parents may, subject to contractual term5 and conditions. pay to the School luilion fees In advance. The money may be returned. subject to specific ￿ndit￿n5 but, assuming the relevant pupils remain in the School, advance fees will be applied as follows. 2020 2019 Within 1-2 years Within 2-5 years Over 5 years 582.974 451.079 32.522 683,2T1 391,906 1,066.575 1.075, 177 Within 1 year 1,76S.438 2,022,271 2,832,013 3,097,448 The balance represents the accrued liabilty under the contracts. The movement during tho year was.. 2020 2019 88lanee al 1 August 2019 Transfer in from Packwood Haugh School New contracts Amounts accrued to contracts 3.097,448 183,128 2.299,176 92,670 3,243,481 2. 128, 841 98,302 5.672,422 5,470,624 Amount$ utilised in paymenl of fees lo the School 12,840,409) (2,373, 176) Balance at 31 Juty 2020 2,832,013 3,097.448 Page 46

SHREWSBURY SCH¢)OL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 21. Analysis of net assets between funds Analysls of net assets between fund$ - current period Unrostri¢ted Restricted Endowmont funds lunds funds 2020 2020 2020 Total funds 2020 Tangible fixed assets Fixed assèt investments Current assets Creditors due wlhin one year Creditors due in more than one year Provisions for liabilities and charges 42.324.161 4.800.957 5.839.600 15,675.0291 17,780.718) 12,858.000) 42,324,161 6,116,746 6.648.136 15.675.029) 17.780,7181 12.858,0001 1,315,789 21.851 786,685 Total 36.650.971 786,685 1,337,640 38,775,296 Analysls of net assets betw¢èn funds - prlor ￿rIOd Unrn$tii¢led funds 2019 Reslncled Endowment nds funds 2019 2019 Total nds 2019 Tangibl6 fixed assgts Fixed asset investments Current assets Creditors due wi(hin one year Creditors due in rnOTe than one year Provisions for liabililies and charge5 36.271.726 4.337,605 5.039,934 IS,548,9331 16,633,253) 11,462.0001 36,271. 726 5, 796,650 5,637,533 {4,052I (5,552,985) (6,633.253) (1,462,000) 1,459,045 597.599 Total 32.005,079 597.599 1,454.993 34,057, 671 Page 47

SHREWS8URY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 22. Slat&m•nt of funds Statement of funds - current yoar Balance at 1 August 2019 Transfers inlout Gainsl Balance at (Lossesl 31 July 2020 Income Expendlturn Unr•stdctèd funds Designated funds DeswJnatgd funds 1.317.388 32,279 381,531 1125,1011 1,606,097 Gen•ral funds General funds Subsidiary trading Pension seheme funding deficit 32,149,590 31.274.065 126,680,045) 973,213 179,738 37,896,561 101 1.483.465 1762.4161 1714,8371 6,313 11.462.000) 103,000 11.499,0001 12,858,000) 30,687,691 32,757.530 127.339.4611 258,376 11,319,262} 35,044,874 Total Unr*strlct•d funds 32.005,079 32.789,809 127,339.4611 639,907 11,444,363) 36.650,971 Endowment funds Capital Reondowmenl fund 1.329.944 1134,4381 1,195.506 124.549 25.820 18,7351 141.634 H¢nlschrew Prize Fund 500 1.454,993 25.820 1143,1731 1,337,640 Page 48

SHREWS8URY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 22. Statement of funds Icontinuedl Statement of funds - current year l¢ontinuedl Balance at 1 August 2019 Transf•rs inlout Galnsl Balanc& at (Losses) 31 July 2020 Income Expenditurn Restrlcted funds Shrewsbury School Foundation Guyer Family Prize Henlschrew Prvze Darwin Scholarship Hargreaves Legacy Bursary Fund Salopian Club Duffell Prr2e Fund Shrgwsbury School Parents, Assoeialion Consolidated Fund.. Unapproprialed income COVID Support Art Fund Sports Leaders Fund Packwood - Redevelopment of Science Facilities Packwood - COVID Support Packwood - Theatre development 401 1.252.092 1551,8361 1639,8571 60,800 170 180 80 7.212 7.212 500 6.423 17.292 {6,423} {17,2921 4,940 315 (3151 584.296 36,156 17,956 2.1)00 115.0211 605,431 17,956 2,000 400 14001 85.289 85.289 2.297 2,297 150) S97,599 1,420.310 (591,317} {639,907) 34,057,671 34,235.939 {27,930,7781 786,685 Total of funds 11,587,536) 38,775,296 Page 49

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOED 31 JULY 2020 22. Statement of funds l¢ontinuedl Slatement ol funds- prior year Balance al l Augusf 2018 Transfers in/oul Gain Balance al (Losses) 31 July 2019 Incomg Expendrfu Unr￿trIcted funds Designatod funds Designated funds 743,816 23.427 489,484 60,661 1,317,388 Ggneral funds General funds Subsidiary trading Pension scheme funding deficit 30, 702,324 24. 16&942 (23.452.858) 638,876 95,306 32, 149.590 5.683 1.93&863 (I.OT6,3679 (865.078) 101 (1,356.Cixi) (165,QCQ) (1,462,000) 29,352,007 26,101.805 124.470,2251 (226.202J (69, 694) 30.687,697 Total Unrestrlcted funds 30,09S.823 26.125.232 (24.470,2251 263,282 (9,033) 32,005,OT9 Endowment funds Capital Re-endv•wmenl fund Henlschrew PrrLe Fund 1,275,402 54,542 1,329,944 118.366 2,639 3,544 124,549 1,394.268 2,639 58,086 1,454,993 Page 50

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 22. Statement of funds Icontinugdl Statement of funds- prior year {continued} Balance 81 l Augiisl 2018 Trnnsle inloul Gains/ 6alance al (Losses? 31 July 2019 Inciwne Expenditurg Restrict•d fund$ Shrewsbury School Foundation Guyer Family Prize Hentschrew Prize Darwin Seholarship Hargreaves Legacy Sundry Bursary Donations Salopian Club Goulding Fami Pryie Duffell Prize Fund Sabrina Club Shrewsbury Sch¢X)I Parents, Association Shropshire Squash Club GMR Group Friends of Shropshire Archives ConSol￿ated Fund.. Unapproprialed in¢omg 403 789,303 (566.080) (223,225) 401 40 (30J 170 ao 7.212 7,212 500 20,637 30,641 120.637) (30.641) (60) 4.970 (30) (XL)J 4,940 {10,OOOJ 2.254 11,364) (890) {3,￿￿) 29. 167 (29, 167) (50) 567,011 40. 620 (17,341) 584,296 574.402 926,212 1639.7331 (263,282) 597,599 Total of funds 32,064,493 27,054.083 (25, 109,958) 49,053 34,057,671 Page 51

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Statement of funds Icontinu8dl Designated Fur A fund established by Ihe Governors to assist future pupils with bursarial support to attend the School. Re*ndowmenl Fund A fund established in 1924 to contribute to the upkeep of the estate and lo the support of pupils 81 Sh￿W$bUry School who are in financial need. Shrewsbury School Foundatson A registered charity supporting a range of e(Jucalional obje¢lives through financial contributions lo Shrewsbury School and rt5 pupi15. DonatK)ns ￿eNed lotalled £1,252.092 12019 - £789,303) of which £541.259 12019 - £559.0161 was given lo support bursaries awarded to pupils, £639,859 12019 £214.97411o assist with the ¢onstruciion and refurbishment of building (Barnes Theatre. Library and the Chalri Design Cenlrel. £10.97612019 - £7,G631 to assist in funding education￿ activities and £60.000 for marketing acliwlies. Guyer Family Prize An annual prize for an outstanding ￿ntribUtIOn lo the music departrnenl. Henlschrew Prvze An annual prize lo the boy in the School House who contribLrtes most lo the well running of the house, in social rather than academic or sporting conlexl. Darwin Scholarship A scholarship awarded lo pupils attending the School from Hong Kong who are judged oulslanding academically, in the arts, musK ¢y sport. Hargreaves Legacy A legacy left by an old boy, lo be used for educational purposes. Bursary Fund A donation lo assist in the provision of bursaries lo pupils attending the School. Sundry Bursary Donations Donations received Irorn The Knightsbridge School EdU￿tIonal Trust £NIL12019 - £10,881), Walker Tru$l £NIL12019- £6,000) and Keasby Foundation £Nil12019- £3,756) lo provide financial support for specific pupils who attend th8 SchLY)I. Salopian Club Fund The donations receNed from Ihe Sakpian Club lo assist with costs ￿latIng lo staff and the Salopian magazine. Goulding Family PrrLe A donation received lo fund the award of a music prize to a pupil who exce15 al music. Duffell Prize Fund A donation received to fund a prize to a pupil who excels in deswjn and lechnobgy. Sabrina Club A donalion lo support the purchase of a boat and Sch¢)ol rowing training courses. Shrewsbury Schwl Paren15' Association A donation recewed lo assist wrth the purchase of books for new pupils joining the School. Page 52

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Statement of funds Icontinuedl ShropshI￿ Squash Club A donation lo as51St with the lighting of the squash courts. GMR Group A donation to enhance the Infrastructu￿ of the Schod in order lo provKle a better edu¢ion for pupils. Friends of Shropshire Archives A donation received lo assist with the conseryation of the Schools arehives. Consolidated Fund A consolidation of 70 small funds the income from which, is used lo provNle prizes, scholarships and bursaries lo pupils at Shiewsbury Schc<)L COVID Support Donations received lo assist thè Schcol wlh addrtional costs relating lo COVID 19. Art Fund A donalion receNed lo Support Ihe Art Department. Sports Leaders Fund A donation received lo support pupil aclmties. Packwood - Redevelopmenl of Seience Facilities Donations fe¢eved lo assist wrth the reilevelopmenl costs of thè 8ei8nce facilities al Packwood Haugh School. Packwood- COVID Support Donations received lo assist the Schc)I, wrth addi(ional costs reL4ting to COVID 19. Packwood- Theatre development Donation received lo assist wrth the devetopmenl of the Theatse al Packwood Haugh School. which was completed in previous years. Transfers b¢￿een funds The transfer between restricted and general funds of £639,90712019- £263,282) represents capitsl items purchased from reslTiCt8d funds Icaprtal rtems purchased are in accordance wlh the donors wishesl. The transfer bets￿n general and designated fvnds of £381,531 12019 £489,484) represents the transfer approved lo the designe(I fund by the Trustees during Ihg year. Page 53

SHREWS8URY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 23. RKon¢ilialion of net movement in funds to not cash flow from operating a¢tiviligs Group 2020 Group 2019 Nel income for the pefifA las per SL*ement of Financial Activiliesl 6.216.625 2, 158, 178 AdSustments for: Depreciation charges Gainslllossesl on investments Dividends and interest frc¥n inveslmenls Lo$$ on the sale of fixed assets D8crease/lincreasel in stocks Increase in deblors Inereaselldecreasel in credrtors Pension scheme movement Interest paid on borr¢%¥ings Packwood Haugh School fixed assets transferred in 2.500,1 $2 2,370,713 88,536 (214.053) {122,3231 (117,339) 422 76,284 79,234 (47,423) (33,520) (59,OOOJ 121,576 149,2471 {382,1371 176,864 1103,0001 99,402 14.653,3241 Nel cash provlded by op•radng actlvltles 3.771,970 4, 220,590 Analyslg of cash and cash equlvalents Group 2020 Group 2019 Cash at bank Cash held in inveslrnenls 4,496.043 S35.144 3,916.824 172,535 Total cash and cash equlvalents 5,031,187 4,089,359 Page 54

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 25. Anatysis of changes In net debt Transfer in Packwood Other non- Haugh cash School chang88 At 1 August 2019 Cash flows Al 31 July 2020 C85h al bank Cash held in investment5 Bank overdraft Debt due wrthin 1 year Debt due afte¥ 1 y8ar 3,916,824 172,535 157,232 362,609 130,576 1903.4831 907,347 13.092.879) 12.000.1)001 421.987 4,496.043 535.144 1130,5761 11.060,6561 11,046,792) 1.050,656 14,042,223) 92.997 1442.2361 291,411 IS7,8281 26. Capltal commltments At 31 July 2020 the group and charity had capital ￿rr￿n11Ments as folkxs.. Group and Charity 2020 Group and Charity 2019 Contracted for bul not prowded in these financial slalements 218.271 2,842. 769 27. Penslon commltments Teachers, Penslon Schom8 The School participates ln the Teachers. Pension Scheme {"the TPS'I for ils leaching staff. The pension charge for the year includes contributions payable lo the TPS of £1,708,40212019 - £1,025.3061 and 81 the yearond £214.09612019- £144.1821 was accrued in respect of contributions lo this scheme. Thg TPS is an unfunded multi*mpl¢)yer defined benefits pension scheme governed by The Teachers, Pensions Regulations 2010 {as amended) and The Teachers, Pension S¢heme Regulations 2014 las amended). Members contribute on a 'pay a5 you go. basis wrth contributions from members and the employer being ¢￿dIted lo the Exchequer. Retirement and other pension benefits are paid by public funds provKled by Parliament. The employer contribution rale is set by the Secretary of Slate foll¢y•Ying seheme valuations undertaken by the Govemmenl Actuary s Department. The most r￿ent actuarial valuation of the TPS wa5 prepared as at 31 March 2016 and the Valuation Report. which was published in March 2019, confirmed that the employer contribution rale for the TPS would increase from 16.4% 10 23.60fi from 1 September 2019, Employer5 are also required lo pay a ￿heme ajminisliation lewy of 0.08°h giving a lolal employer Contribution rate of 23.68010. Page 55

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 27. Penslon commitments {continued) The 31 March 2016 Valuation Report was pcepared in accordance with the benefi15 Sel out In the scheme regulations and untler the approach specified in the DireCt￿nS. as they applied al 5 March 2019. However. the assumptions were considered an¢J sel by the Department for Education prior to the fuling in the 'M¢CloudlSargeanl case,. This case has required the courts to consider cases regarding the implemenlalion of the 2015 relonns lo Public Serwce Pensions including the Teachers, Pensions. On 27 June 2019. the sup￿rne Court denied the govemmenl pemiis$ion lo appeal the Court ol Appeal's judgment that transitional piovisions introduced lo the refomied pension schemes in 2015 gave rise lo unlawful age discrimination. The govefnmenl is respecting the Court's decision and has said Il will engage fully with the Employment Tribunal. as well as empbyer and member represenlalives, lo agree how the discrimination5 will be remedied. A consuttation wa$ launched by the govemmenl on 16 Juty 2020, and closes lo responses on 11 October 2020. The TPS is subject lo a cost cap mechanism which was pul in place lo protect taxpayers against unforeseen changes In scherne costs. The Chief Secretary lo the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism. in January 2019 announced a pause to the cost cap mechanism follwing the Court of Appeal's ruling in the Mccloudlsargeant case and until there is certainly about Ihe value of pensions lo employees from April 2015 onwards. The pause was lifted in July 2020 and the government is preparing lo completè the cost conlrol element of the 2016 valuations. which is expected lo be completed in 2021. In view of the above rulings and decisions, the assLrmplions used in the 31 March 2016 Actuarial V81ualion may become inappropriate. In this scenario. a valuation prepared in accordance with revised benefits and suilabfy revised assumptions would yield different results than those contsined in the Actuarial Valuation. Until the consuttalion and the cost cap mechanism rewew are completed rt is not possible lo conclude on any financial impact or fvIuTe Changes to the contribution rale$ of the TPS. Accordingly, no provision for any addrtional past bènefit pension costs is included in these financial slalemèntS. Shrewsbury School11971) Penslon and Ltlg Assurancè Scheme The School has a defined benefit pension scheme for certain support staff IShrew5bury School 119711 Pension and Life Assurance Scheme) and ts assets are invested in pooled tracker investrnenl funds and a property fund wrth Legal & General Investment Managers. The scheme has been closed lo new members since 2001. The amounts in the financial 51alements for the year ended 31 Juty 2020. relating to pensions, are based on a full actuarial valuation dated 31 May 2019. The valuation, as of 31 May 2019, revealed a funding deficit of £753.000. In the Recovery Plan dated 7 May 2020. the School has agreed lo pay contribut￿n5 with the view to eliminating the shortfall by 31 May 2026. The School also pays contributions of 23.8% per annum of pensionable salaries lo meet the cost of future accrual of benefits for active members of the Scheme. in line wrth the schedule of contributions dated 3 June 2020. In accordance wrth the Schedule of Contributions dated 3 June 2020. the SchoL)I is expected lo pay contributions of £138.000 over the next accounting period. The contributions paid by the School are Teviewed every 3 years as part of each fornial actuarial valuation. The Scheme's next actuarial valuation is due on 31 May 2022. In addition, the School is expected lo meet the cost of administrative expense5 for the Scheme. The liabilil*s of the Scheme are based on the cuNent value of expected benefit payTnent c85hflows lo members approximately over the next 60 years. The average duration of the liabilrf(ies is approximately 15 years. Page 56

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 Pension commitments {continuedl The deficrt is partty secured on the following properties". 33 Porthill Road, 23 and 23a Aston Road. Principal actuarial assumptions al the Balance sheet dale (expressed 85 weighted averages).. At 31 July 2020 At31 July 2019 Discount rale Future salary increases Inflation assumption - RPI Inflalion assumption - CPI Pre 61411997 (fixed 3%1 Post 61411997 IRPI min 3%. max 50A- Option A membetsl Post 61411997 (CPI min 3%. max 5% - Option A members) 1.30 2.10 2.40 3.40 2.40 1,95 2.85 1.95 3.00 3.so 3,20 3.80 3.30 At 31 July 2020 At31 July 2019 Years Years Mortality rates lin yearsl - for a male aged 65 now - al 65 for a male aged 45 now - for a female aged 65 now - al 65 for a female aged 45 now 22.0 23.0 24.4 25.5 21.9 22.9 243 25.4 Sensitwrty analysis.. At 31 July 2020 Oiscounl rate +0.25% RPI rale +0.25% CPI rale +0.25% Assumed lrfe expectsncy age 65- increase by 1 year 1377.0001 71,IX)O 25,lJOO 292,000 Page 57

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 27. Pgnslon commltments {continuedl The Group'5 Share of the assets in Ihe scheme was.. At 31 July 2020 At31July 2019 EqLJities Bonds Property Target return Insurance annuities Cash 2.267.000 697,000 806.000 1.065.000 1.886,000 158.000 2,489.000 667.000 831,Ll)O 1,076,LJ)O 1,858.000 232,000 Total lair value of asset$ 6.879.000 7. 153,000 The actual return on schom8 assets was £-51,000 (2019- £154,c(o). The amounts recognised in the Consolidated Statement of Financial Actiwties arg as follows.. 2020 2019 Current service cost- within Schools and grant making Net interest on pension scheme liabilities - within finance charges Total amount recognised in the Consolidated Stslemenl of Financial Activities 24,000 29,000 30,000 35,000 53,000 65, 000 Movements in the present value of the defined benefit obligation were as follows.. 2020 2019 Opening defined benefft obligation Contributions by scheme participants Actuarial losses Benefits paid Current service cost Interest cost 8.615,000 4,000 1.300,000 125,000 1383,0001 {510.000) 24,000 30.000 177,000 229,000 8, 736,000 Closing defined benefrt obligation 9,737,000 8.615.(X)O Page 58

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 27. Pon$ion commltments Icontinufjdl Movements in the fair value of the Group's share of scheme assets were as folsows.. 2020 2019 Opening fair value of scheme assets Inlefest income Actuarial losses Contributions by employer Conlnbulions by ￿herr￿ participants Benefits paid 7,1S3,000 148,000 1199,01)01 156,000 4.000 1383.01)01 (S10,0(￿) 7,380,000 194,OC (40.000) 124,000 Closing fair value of 5chgmg assets 6.879.000 7, 153,000 Ponslon commltments {¢onllnued) Reconciliation of funded slalus". 2020 2019 Opening deficit Employer contributions Charge recorded in Slalemenl of Financial Activites Actuarial Itossl received in Statement of Financial Actml￿8 11,462,000) (1.356, 000) 156,000 124,000 153,0001 (65, 000) 11,499,0001 (165, 000} 12.858,0001 (1.462, 000) Page 59

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 28. Operating lease commitments Al 31 Juty 2020 the Group and the charty had commitments to make future minimum lease paymen15 under non-cancellable operating leases as follows.. Group and Group and Charity Charity 2020 2019 Group and Charfty Amounts payable: Within 1 year Between 1 and 5 years After more than than 5 years S2,287 70,524 5,208 30, 730 54,281 394 128,019 85,405 The following lease payments have been rwnised as an expense in the Slatemenl of financial aclivilies-. Group and Charlty 2020 Group and Charity 2019 Group and Charfty Operating lease rentals 64,410 54, 756 Page 60

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 29. Financlal Instruments Group 2020 Group 2019 Charlty 2020 Charity 2019 Finan¢ial a$$ets Financial assets measured al fair value through inc¢)me and expendilur Financial assets measuied al amortised cost 10.612,789 1,613,832 9. T13,474 10,438,791 1,201.592 1,946,652 9,268,287 1.666,827 Group 2020 Group 2019 Charlty 2020 Charity 2019 Flnanclal liabllltles Financial liabilrties measured at amortised cost 9,527.832 8, 64T,996 9,434,909 8.497,987 Financial assets mèasured at fair value through income and expenditure comprises investments in UK listed securities and cash at bank. Financial assets meaSU￿d al amortised cost comprise School fees. group and other doblors, accrued income. Financval liabilrties measured at amortised cosl comprise trade creditors, other cradi(ors. accruals, loans and fees in advance. The Group's incom8, expense. gains artd lo$se$ in respect of financial instruments are sumrnarisad bel¢)w.' Group 2020 Group 2019 Charlty 2020 Charity 2019 Total investment income for financKal assets measured al fair value through income and expenditure Nel Igainllloss on financial assets measured al fair value through income and expenditure Impaim)enl loss Ilgainsl on financial assets measured at arnortised cost Total interest expense foi financi81 liabilrties held at amortised cost 122,323 111,339 122.323 111,339 188,536} 214,053 188,5361 214.053 219,288 (65,445) 219.288 (65,445) 99.402 121,516 99,402 121.516 Page 61

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 30. Relatgd party transactlons During the year Shrew5bury School had various transactions and balances oulslanding al the year end with Its wholly owned trading subsidiaries, Shrthvsbury Schcrf)l Enterpnses Limf(ed and Shrewsbury School Trading Company Limited. These are disclosed in note 6. Governors remuneration and expenses are disclosed in note 12 and key management personal rfjmuneration is disdosed in note 13. There are no other ￿lated paty transact￿nS lo disclose. Page 62

SHREWSBURY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 31. Consolldated Statement of Flnancial Activities for the y&ar ended 31 July 2019 Unrestrfcted Restricted Endowment funds funds funds Total funds 2019 2019 2019 2019 Income and endovmients: Gran15 and donations Charitable activities- School fees Other e(lucalional In￿rr Other ancillary trading income Other trading activrties Invèslmenls 88S,592 885,592 23.476.512 310.329 334,448 1.935,863 68.080 23,476,512 310,329 334,448 1,935,863 111,339 40,620 2.639 Total Income 26.125.232 926,212 2.639 27,054,083 Exp•ndltur• on: Ralsing funds: Trading activities Fundraising costs Financing costs Charltsble actlvltlès: Education and grant making 1.076,367 396,813 239,8TI 1,076,367 396,813 239,877 22.757.168 639.733 23,396,901 Total ex￿ndItUre 24,470,22S 639.733 25,109,958 Ngt income beforo Investment galnslllossesl Nel gainslllossesl on investments 1.665,007 155.967 286,479 2.639 58.086 1,944,125 214,053 Ngt income before transfers 1,810,974 286,479 60.72S 2.158.178 Transfers between Funds Net income before other recognised gains and lossos 263,282 1263,2821 2,074,256 23,197 60,725 2,1 $8,178 Actuarial Ilossesllgains on defined benefft pension schemes (165,0001 1165,0001 Net movement in funds Reconciliation of fund$: Total funds brought fO￿ard 1.909.256 23,197 60,725 1,993,178 30.095,823 574,402 1,394,268 32,064,493 Totsl funds carried forward 32.005,079 597.599 1,454.993 34,057,671 Page 83