Highclare School IA company limited by guarantee) Govemors, Report and Consolidated Financial Statements for the Year Ended 31 August 2024 Registered number. 1074596 (England & Wales) Registered charity number. 528940
Highclare School Financial Statements For the Year Ended 31 August 2024 Contents Pages Governors and General Information Strategic Report Govemors, Report Independent Auditorfs Report 10-13 Consolidated Statement of Financial ActwitEs 14 Consolidated Balance Sheet 15 Company Balance Sheet 16 Consolidated Statement of Cash Flows 17 Notes to the ConsolidatecS Financial Statements 18-32
Highclare School Governors and General Information Governors: J A Barrett (Presidenti Mrs L E Flowilh Ichairmanl J R Brain ACA Mrs P A Mayall A l Hazel Mrs S D Watson A B Davison Mrs A Moore (appointed 21 February 20241 Head: Mrs S Cassell BA (Honsl PGCE (Acting Head until 31 December 20231 Miss F Smith, 8Sc Hons (Brunell, PGCE, FRSA (Head from 01 January 20241 Educational establishments: Highclare Preparatory School.. Woodfield Pre-PparatorY and Preparatory 241 Birmingham Road Wylde Green Sutton Coldfield West Midlands B72 1EA Highclare Preparatory School.. Sl.Paul's Pre-Preparalory and Preparatory 88 Lichfield Road Sutton Coldfield Wesl Midlands B71 2SY Highclare.. The Abbey Senior School and Sixth Fomi 10 Sutton Road Erdinglon Birmingham 823 6QL Registered office: 241 Birmingham Road Wylde Green Sutton Coldfield Wesl Midlands B72 1EA Bankers: HSBC Bank PIC The Bridge Walsall WS1 1LN AudStors: Malcolm Piper & Company Limited Kingsnorth House Blenheim Way Kings18nding Birmingham B44 8LS Senior management personnel: Miss F Smith (Appointed 01 January 2024) Mrs S Cas5ell Mrs P Bennell (Resigned 31 December 20241 Mrs M P A McGoldTick Mr M Coles Mrs J Griffiths Mrs H Good Charlty number: 528940 Company number: 1074596 Page I
Highclare School Strategic Report Objectives and A¢tivitigS The principal activity of the Group remains the provision of turtion and general education facilits'es to children between rising three and eighteen years. The objectives of the Charity are.. lal To promote and provide for the advancement of education and training and in connection therewith lo conduct, carry on, acquire and develop in the United Kingdom or elsewhere any boarding or day school or Schools for the education of children and young people of both sexes.. Ib) To provide facilities in the interest of social welfare forthe recreation and leisure time occupation for children and young people with the object of improving their condition5 of life. For over 90 years, Highclare has been pursuing its policy of encouraging pupils to achieve their full potential within a stimulating academic environment and lo pursue excellence. The Highclare philosophy goes much further than educats.onal excellence., we endeavour to work with both students and parents lo equip our young people lo cope with the pressures of modern society. The School's focus continues to be on achievement of academic performance by a learning curriculum that is broad and balanced and kept constantly undeT review. the widening of acce5S to the education provided by the School, enhancing the use of technology in leaching and improving the School's facilits'es and their access by the local community. Over the period, there was once again extensive refurbishment to continue the rolling programme of essential upgrading of the internal and extemal infrastructure of all school buildings, including external and internal refurbishment and decoration al three school locations plus access improvements at the sports field. Recruitment and Training of Govemors Governors are familiar wth the aims, objectives and practieal operation of the School, often either by being parents or grandparents of children who are currently being edueated at the School or having had children attend the School In the pa51 or by virtue of possessing skt'lls which are of specific benefit lo the Board of of Govemors. New Governors are appointed by the Board of Governors and electecl at an Annual General Meeting following mption of 12 months of service. Additionally, new Governors are provided with a copy of the latest financial statements and Memorandum and Articles of Association as well as a copy of the Charity Commission's guidance, 'The Essential Trustee.. What you need lo know, what you need to do,. Governors undertake training as and when required appropriate lo their specific needs and responsibilities. The Governors determine the strategy and general policies of the School and meet as a Board at least 10 limes a year. The implemenlalion of the strategy together with the day-to-day management of the School is delegated lo the Head and the Senior Leadership Team. Group Structure and Relationships The School has 8 wholly owned non-charitable subsidiary, Highclare Investments Limited. Highclare Investments Limited also ha5 a wholly owned non-charilable subsidiary, Highclare Limited. The principal activity of both subsidiaries is propety ownership and management although both subsidiary companies were non-trading throughout the current financial year. As detsiled in the post balance sheet events note to the financial statements, the subsidiaries transferred all of their assets up lo Highclare School with effect from 31 August 2024 as part of a re-organisalion of the subsidiary undertakings to simplify the Group structure. Page 2
Highclare School Strategic Report (continued) Leadership and Management The new Head, Francine Smith, took up post in January 2024. Achievements and Perfomiance The Independent Schools, Inspectorate {ISII carried out a focussed compliance and educational quality inspection in April 2023. Theirjudgements were: 'The quality of pupils, academic and other achievements 15 excellent." 'Pupils throughout the school display strongly positive attitudes to leaming, both independenlly and collaboTalively.' 'Prep school pupils demonstrate excellent study skills.. 'The quality of the pupils, personal development is excellent" 'Pupils deeply respect and value diversity within their school and show a keen appreciats'on of their own and other cultures.. "Pupils throughout the school demonstrate excellent self-knowledge, self-discipline and resilience in all aspects of their school lives. "Pupils. moral understsnding is highly developed and they maturely lake responsibility for their own behaviour.. Academic achievement is a matter of record, with our pupils winning places at top independent and maintained grammar schools at 11 + and gaining their choice of university or apprenticeship after the Sixth Form. Academic results during the year were once again excellent with a 1000/¢ pass rate al 'A' Level., and 88Q/y passes at A'_ C grades lincluding EPQI. AI GCSE an impressive 980/0 of the candidates achieving grades 9 to 4 IA. to C equivalentl in five or more subjects, 29Oh of grade5 were 9 to 7 and 90010 attaining a grade 4 or higher in Maths and English. These grades were achieved alongside taking part in a full extra-curricular timetable, in keeping with the Highclare ethos of educating the whole person. The strength of leaching. processes and the dedicats'on and continued hard work and application from staff and students placed us firmly amongst the lop independent and maintained schools in the region. Academic 'value added,, using the CEM Centre's measures of MidYIS and Yellis, continues to be indicative of the good progress that the pupils make. This year's average residuals for MidYIS and Yellis 1-0.14 and -0.13 respe¢tivelyl which is lower than last year, but indicates candidates have around expected progress. Throughout the year both the Senior and Preparatory Schools continued to provide a vast range of co- curricular and extra-curricular activity. Highclare School is dedicated to educating the whole person and allowing them to fulfil their potential in so many way5 through 5POrt, music, drama, the Duke of Edinburgh Award scheme and the many aclivilie5 and trips both local and abroad offered to pupils. These activities complement the learning through the curriculum and enrich personal development. This s what Highclare School is a51 about, giving the opportunities lo pupils to learn important skills such as leadership, time management, teamwork, persistence and to grow in both self-confidence and self- assurance. Page 3
Highclare School Strategic Report (continued) Achigvements and Performance {continued} In the Senior School, extra-curricular clubs before school, at lunch and after School continued to play a huge part in the development of sport. Clubs included." football, netball. table tennis, choir, rock band, current affairs, 'woof Wednesday,, board games, drama, chess and Science. Highclare Sports Field continues to be used weekly in the double lessons for football and for cricket, making use of the Astroturf wicket. The pupils in U31L4 continued lo have a weekly swimming lesson al Erdington Leisure Centre, which is a fantastic opporbjnity for their development. Prep School sport is enhanced via the extra-curricular clubs before school, at lunchtime and after school. Clubs included football, netball, hockey, basketball, ballet, tennis, mulli-sports and dancing. Highclare Sports Field continLJes to be used by the Prep School 4 times a week and we also share facilities at the Senior School or across Prep School siles. Swimming is taught weekly for children in Reception. Year 1 and Year 2 and then on a hall termly basis for children in Years 3 10 6. Fixtures lake place for all children throughout the school (Year 1 upwards) in all sports such as swimming, tri-golf and hockey. Last year we played approximately 65 fixtures against other schools. These were both competib've and friendly. The Duke of Edinburgh's Award Scheme, which wa5 estsblished al Highclare School in 2013, continues lo flourish. The awards involve a wide range of activities including sport, expeditions and volunteering all of which the students have to organise for themselves and which demands a great deal of personal input along with the tremendous SUPPOrt from the teaching staff involved, who also give up their free lime lo supervise the expeditions and manage the programme. This year saw 11 pupils sign up for Bronze and 9 for Silver, with 15 pupils compleb'ng the Bronze Award and 4 completing the Silver Award (signed up in previous years). Music and drama continue lo play an extremely important part in school life. Many events took place and many of the pupils maintained their progress via the interaction with the numerous visiting music teachers who continue lo do so much valuable work. The London Academy of Music and Dramatic Arts I LAMDA'I is an extremely popuSar extra-curricular activity, which allows pupils to grow in confidence and develop their individuality. This has continued lo flourish and, once again, many pupils took exam5 during the year. In the annual ISA Nats'onal Art Compets'tion we celebrated significant success with a 1st pla, 2nd place and Highly Commended. The Preparatory School continues to promote the ongoing and all-round development of a51 the children in a nurturing and caring environment. The Governors offer their congratulations to the girls and boys who participated in these achievements and thank the teachers and parents for their commitment and support. Pastoral care conts.nues lo be a strength of the School with comprehensNe policies on Personal, Social. Health and Citizenship Education IPSHCEI, Social, Moral, Spiritual and Cultural aspects of Learning (SMSCI and careers guidance, together with an outstanding tutor System. School continues lo work within the regulatory framework with regard lo relationship and Sex education and responded positively to the national inilialives on equity, diversity and equality that schools were asked to implement. Page 4
Highclare School Strategic Report (continued Community Involvement The School has an on-going commitment to encourage all pupils of every age lo engage lal appropriate levels) in community involvement. These include ¢ornmunity carol singing. personal visits to residential and care homes and a local special needs school. Invitations are extended to these residents lo attend a number of school events such as concerts and play5. Charity plays a huge part in both the Senior and Preparatory Schools. The charities chosen by the student councils on each site this year were Shoe Aid, the Erdinglon Foodbank and The Sebbie Hall Kindness Foundation, plus The Red Movement ISA) and Rhino Art {sludents on the senior school visit to South Africa in October 2022 were able to work with these last charities as part of their expedition). During the year the School raised £11,979. In addition £1,072 was raised for Children in Need. In the summer tefm. Senior School also raised money and awareness for the Hollie Gazzard Trust. this included the filming of a piece for ITV local news programming shown in the South West and West Midlands regions- This year has also seen the School donating gifts of food for the Trussell Trust foodbank operated in Erdington. Students have also coSlecled and donated used spectacles to Lions International. The Governors are extremely grateful to the pupils and their parents for these considerable fund raising efforts. which were even more necessary during the cost of living crisis to assist those within the Community who are struggling lo cope. The Competitions in art and creative writing for local primary schools look p18ce. The art competition, in the spring, attracted 153 entries from 8 schools on the theme of idols, whilst the creative writing ¢ompetition focussed on writing a diary entry focused on the Windrush generation and attracted 167 entries from 10 schools. We were able lo welcome participants into school for the presentation events. Neighbouring primary Schools and local sporting teams enjoy the use of the School's recreats'onal facilities at both the Senior School and Highclare Sports Field and the Churoh next door are able to use the car park every weekend when they are open, within current restrictions and able to provide services to the community. The Trustees have considered their response lo the change to the law, 2$ embodied in the Charities Act 2011, requiring that public benefit can no longer be presumed but must be demonslraled. In addition, they have had due regard for Charity Commission guidance on the subject. The Governors consider that these wider involvements and contributions to the community clearly demonslrale the greater public benefit requirements are being mel. Scholarship Awards Academic scholarships are awarded to pupils who perform particularly well in our entrance assessments and have already demonstrated a considerable degree of all round commitment to their current school. Additional specialist scholarships are also awarded for those pupi15 showing a particular talent in music. sport or art. Bursaries 8re offered based on financial needs. The Highclare School Governors, Prize is a means-tested bursary available annually if all the necessary requirements are mel to cover up to 1000/0 of school fees for one pupil upon entering Senior School in U3 (Year 71. The School currently has awarded this bursary to eight pupils.. ranging from current U3 Iyear 71 to L6 (Year 121. Page 5
Highclare School Strategic Report (continued) Financial Review Fee income has increased this year to £7.290,518 from 2023.. £6.642,916. The school continues to make savings in overheads and costs wherever possible. There was a continued and necessary annual rolling replacement programme of IT facilities, including the replacement of inleraclive smart boards, cornpulers, iPads, servers and Wi-Fi provision to ensure that both pupils and staff conts'nue to benefit from enhanced interactive teaching. There have been many other significant enhancements this year which included.. The completAon of the fitphase ofdevelopment ofthe outside space 8t Woodfield,. The commencement of the school-wide boilerreplacement and heating upgrade pmgramme," The upgrading ofsecurity and fencing at st Paul's," The relocation and rUAShment of reception fa¢ililies and offices at the Senior School and Woodfield. Reserves Pollcy It is the policy of the Charty to maintain separate reserve funds for specific purposes. The Charity aims to relain at a minimum consolidated unrestricted reserves equivalent lo the carrying value of the tangible fixed assets. which amount lo £5,167,058 as at 31 August 202412023.. £5,039.1491 as a contingency in order to maintain the stable operation of the School in the case of future unforeseen events. It remains the objective of the Board of Governors for the reserves lo continue lo increase until this minimum target is met and through careful management and control of operational costs. The unrestricted reserves have been maintained at the year-end. Consolidated unrestricted reserves at 31 August 2024 amounted to £5,044.81312023. £4.867,0851. Rlsk Management The major risks, to which tho Charity is exposed, as identified by the Governors, have been reviewed and systems have been established lo mitigate those risks. A risk register has been established and is updated throughout the year. Friends of Highelare School I'FOHS") The FOHS plays a very important part in the School. organising events for the children and parents and raising funds for the School. They are a committed and dedicated group of parents who aim to provide the best they can for the School. They also kindly operate a second-hand School unifom shop that is used by the parent body. Child ProtO¢tion Code of Practice It is the policy of Highclare School lo provide a safe 2nd secure environment in which children can thrive and develop and where all aspects of their welfare will be safeguarded. The Safeguarding Policy is embedded within School life and is updated on a regular basis. This includes additional and necessary considerations for physical as well as psychological health, safety and well-being of all our pupils. Our DSL is also undertaking CPD to gain a Mental Health and Wellbeing Lead Qualification. Page 6
Highclare School Strategic Report (continued) Plans for Future Periods The Governors, plan is to continue lo improve the educational and academic achievements of pupils by the provision of enhanced facilities. Constant monitoring of perfomance, and the potentially changing landscape of rules and requirements, means that the School's medium to long term strategy is kept under review and any change5 that aTe necessary will be consdered and implemented. The use of Highclare Sports Field continues lo evolve and expand and has been a significant contributing factor to the tremendous sporting success that both the Preparatory and Senior School have seen over the past year. Highclare Sports Field is also available to the local community and has seen a considerable increase in usage by a number of local h0O18 and clubs during the year and this increase has continued into the following academio year. The School continues its major school wide capital investment programme, which includes further developments in the landscaping and adminislralion provision at Highclare Woodfield. This year we have begun a programme of boiler replacement at the Senior School sile which will take a further two years to complete. Office rnoves and improvement of staff areas also upgraded facilities at all three sites with further plans lo develop 'front of house, al Highclare Sl Pauls and Highclare Senior School. Additionally, the School'5 schedule of rolling maintenance in respect of areas such as roofing. rainwater pipes and fire security continues across all three locations, to ensure a high quality-learning environment 15 maintained for the pupils. Approved by the Board on January 2025 and signed on its behalf by.. J R Brain GoveTnor Page 7
Highclare School Governors, Report The Governors submit their report and the audited consolidated financal statements of the Group for the year ended 31 August 2024. The Govemors have adopted the provisions of the Statement of Recommended Practice ISORPI 'Accounting and Reporb'ng by Charities, IFRS 1021 in preparing the Annual Report and Financial Stalemenls. Structure, Governance and Management The Company is limited by guarantee and is registered as a charitable educational trust There is no share capital. Its Memorandum and Arb'cles of Association govern the Company. Governor5, responsibilities The Governors (who are also directors of Highclare School for the purposes of Company Lawl are responsible for preparing the Annual Report (including the Strategic Report} and the Financial Statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Company Law requires the Governors to prepare financial statements for each financial year, which give a true and fair view of the slate of affairs of the Charitable Company and the Group and of the income and expenditure of the Group and Charitable Company for that period. In preparing those financial stalemenls, the Governors are required to.. select suitable accounting policies and apply them consistenlly., observe the methods and principles in the Charities SORP {FRS 1021., make judgements and estimates that are reasonable and prudent", state whether applicable UK Accounting Standards have been followed, subject to any departures disclosed and explained in the financial stalement5', prepare the financial statements on the going concern basis unless il is inappropriate to assume that the Group or charitable company will conb'nue in operation. T17e Governors are responsible for keeping adequate accounting record5 that disclose wth reasonable accuracy at any lime the financial position of the Group and Charitable Company and enable them to ensure that the financial statements comply with Companies Act 2006. They are also responsible for safeguarding the assets of the Group and Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Governors are also responsible for ensuring that the assets are properly applied in accordance with Charity Law. The Governors who were in office on the date of approval of these financial statements have confirmed. as far as they are aware, that there is no relevant audit information of which the Group and Charitable Company's auditor is unaware. Each of the Governors have confirmed that they have taken all steps that they ought to have taken as Governors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor. The Trustees are responsible for the m8intenance and integrity of the corporate and financial infomation included on the Charitable Company's website. Legislation in the United Kingdom governing the preparation and disseminats'on of financial statements may differ from legislation in other jurisdictions. Page 8
Highclare School Governors, Report {continued) Oryanisational Management The Directors of the Company are also Charity Trustees for the purposes of Charity Law and under the Company's Articles are known a5 Governors. The Governors are all members of the Company serving in a non-executive capacity and receive no emoluments. The day-lo-day management of the School is delegated lo the Head and the Senior Leadership Team. The Governors who seNed in the year ended 31 August 2024 were". J A Barrett (Presidenti Mrs L E Flowith (Chairman} J R Brain (Treasurer) Mrs P A Mayall A l Hazel Mrs S D Watson A B Davison Mrs A Moore (appointed 21 February 20241 Mrs S D Watson and Mr J A Barrett retire by rotation at the forthcoming Annual General Meeting and, being eligible,. offer themselves for re-election al the Annual General Meeting. Auditors Malcolm Piper & Company Limited, as auditors, will be proposed lo the Governors for r*le¢tion at the Annual General Meeting. Approved by the Boa n 30 January 2025 and signed on ils behalf by.. J R Brain Governor Page 9
Independent Auditor's Report to the Governors of Highclare School (A Company Limited By Guarantee) (Registration number 1074596) Year Ended 31 August 2024 Opinion We have audffed the fin8nclal slalements of Highclare School Ithe'parent charitable company'l and ils subsidiar*s {Ihe'Group'l forthe yèar ended 31 August 2024 which comprise the Consolidated Statement of Financial Aetivities, Consolidated Balance Sheet. Company BalanTr Sheet, Consolidated Cash Flow Statement and note5 to the financial slal&ments, including significant accounting policies. The financial reporting frarnework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Sland8rd 102 The Financial Reporting Standard applicable in the UK and RepubliG ¢)f Ireland (United Kingdom Gènér81ty Accepted Accouniing Practice). In our opinion the ffinan¢i81 statements.. give a true and fair view of the state ofthe Group's and parent charitable cornpanls affairs as al 31 August 2024. and of the Group's incorning resources and apiCatiOn of resources, including its income and expenditure, for the year then ended., have been properfy prepared in accordanc with Vniled Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance Mth the requirernen15 of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Intemalional Standards on Auditing IUK) IISAS IUK)} and applicable law. Our responsibilities under those standards are further descnbed in the Auditor's responsibilities for the audit of the financial stalements section of our report. We ale independent of the Group and parent charitable company in accordance with the ethical requirements that a relevant to our 8udit of the financial statements in the UK. Including the FRC'S Ethical Standard. and we have fulfilled our other elhical respon5ibiliiies in accordance wth these requirements. We believe that the audit evidence we havè obtained 15 sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we havé ¢oncluded that the Govemors, use of the going concem bas1$ of accounting in the preparation of the financial stslernents is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties rdating to evènts or condilitsns that, individually or colleetively, may cast significant doubt on the Group's or parent charitable cornpanls ability to continue as a going concèrn for 8 peri(xY of al least e1Ve months from when the financial slalern8n15 are authorised for issue. Our responsibilities and the responsibilities of the Goverrtors wth resped to going concèm arè dèscribed in the relevant sections of this report. other infomiation The other infom8tion comprises the infomialv)n included in the Governors. annual reptsrt. other than the financial $tatements and our audilorfs report theon. The Governors are responsible for the other inft>malion contained within the annual pOrt. Our opinion on the financial staternents does not cover the other inform8lion and. except to the extent othenmise eXplicY slated in our report, we do not express any fom of assuiance conclusion Ihereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially incons1Stenl with the financial sialements or our knowledge obtained in the course of the audit or olherwlsé appears lo be materially misstated. If we identify such material Inconsistencies or apparent material misstalemenls, we are required to detemine whether this gives rise lo a material mi5Statement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fa¢l. We have nothing to report in this ward. [¢ttinUed ...] Page 10
Independent Auditor's Report to the Governors of Highclare School (A Company Limited By Guarantee) (Registration number 1074596 (continued Year Ended 31 August 2024 Oplnlons on othèr matt&rs pr&s¢ribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course tsf the audit.. . the infomialion given in the Governors, Report (incorporating the Strategic Rèport and the GovernoTS' Rep)rtl for the financial year for which the financial statements are prepared is consistent with the financial slalements., and the Strategic Report and the Govemors, Rep)rt have been prepared in accordance with applicable legal requirements. Matters on which we are required to pOrt by exception In the light of our knoedge and understanding of the Group and parent charitable company and its environment obtained in the course of the audit, we have not idèntified materi81 tllisslatemenls in the Strategic Report and the Governors, Report. We have nothing to report in respect of the following matters in relation lo which the Companies Act 2006 requires U5 to report to you if. in our opinion.. adequate accounting records havts not been kept by the parent charitable Company. or retums adequate for our audit have not been received from bTanthe5 not visited by us., or Ihe parent charitable company's finaneial statemènts are not in agreement with the accounting records and returns; or ' certain disdosures of directors, rernuneralion SPled by law are not made.. or ' we have not ceiVed all the infomiation and èxplanations we require for our audil. Responsibilities of Governors As expL2ined more fully in the Governors. responsibile5 stslement Sel out on page 8 the Govemors (who are also the Directors of the Charitable wmpany for the purposes of Company Law) are responsible for the pparatIon of the financial st8temenls 8nd for being satisfied that they give a true and fair view, and lor such internal control as the Govemors detemin8 Is necessary lo eriable the preparat*on of )Inancial staternents that are free from m8leii81 misstatement. whether due to fraud or error. In prèpaiing the financial stslemenls, the Governors are sponSible for assessing the Group's and parent ¢h8ritable company'$ 8bilily to continue as a going concern, disclosing, as applicable, matters related to going ¢on¢èrn and using the going wncem basis of accounting unless the Governors either intend to liquidate the Group or the parent tharilable company or lo cease operations, or have no realistic alternative but to do so. Audilorf$ SponSibl1[11es for tre audit of the financial statements We have been appointed auditor under the Companies Act 2006 and report in 8ccord8n¢e with this Act. Our objectives are to obtsin reasonable assurance aboutwhether the financial statements as 8 whole are free from rnateri81 misstalemenl, whether due to fraud or error, and to issue an auditorfs report Ihal includes our opinion. Reasonable assurance is a high level of assurance. but is not 8 guarantee that an audit conducted in accordance with ISAS IUKI will always detecl a material misstatement when it Èxists. Mi5518lements can arise from fraud or errorand are considered material il, individually or in the aggiegale, they could reasonably be expected to influence the economic decisions of users taken on the bas&8 ofthese finanoal stslements. [¢ontinued...] Page11
Independent Auditor's Report to the Governors of Highclare School (A Company Limited By Guarantee) (Registration number 1074596) (continued) Year Ended 31 August 2024 Irregularities, including fraud. are instances of non-compliance wth laws and regulatitsns. We design procedures in line with our responsibilttiès, including fraud as detailed below.. We obtained an understanding of the legal and regulatory frameworks that are applicable lo HighclaTe School. ('Ihe Group and Company'l and determined that the most sionificant are those that relate lo the UK reporting framework under which the Company prepares ils accounts and reports its results and the relevant UK tax Complian regulations. In 8ddition. we concluded that the are certain signifie8nl laws and regulations that may have an effect on the delerminalion of the amounts and discbsures in the financial stslements and those laws and regulations include those re181ing to health and safety. employee matters, environrnerrtal, and bribery and corruption practices", • Hav5ng due regard lo ISA 240 (Redraftedl, The Auditor's Responsibilities Relating lo Fraud in an Audit of Financial Statements. we planned and designed our audrt procedures to undèrtake such enquiry and testing which we deemed ne$Sry lo understand how the Company is complying with those frameworks. We made enquiries of the directors. senior management and those responsible for legal and Complian procedures wrthin the 'Group and Company" and we corroborated our enquiries by reference to other docurnentary evidence, where available. or other complimentary or compensating evidence and with other correspondence reTrived and noted that there as no conlradiclory evidence., • In designing the scope and depth of our work to assess the Ilkdy impact on the financial statements of fraud and other irregularilie5. we calculate a materiality level which is a peicent8ge b85ed upon turnover, profitabilily and gro$s balance sheet assets. This calculation produces a figure against which financial statement errors and irregularitie5 are compared and indicates a level at which, in Qui opinion and judgement, this would cause transactions and balances within the finanaal statements to be misleading or materially incorrect. * We also assessed the susceptibilty of the Consolidated Financial St8temenls of the °Group and Companf to material mis518lement Using qualitative as well as quantitative factors, Including how fraud might occur. and designed our audit teskn'ng and enquiries in such a way so as to enable us to identify the fraud risks across various parts of the business. In addition, we utilised intemal and extemal information lo perforrn a fraud risk assessment as part of our audit planning and testing pradUreS. Vve considered the risk of fraud through management ovèrride of controls and systerns and, in response. we incorporated testing of large or unusual manual joumal entries into our audit approach. We also considered Ihg POS5ibility of fraudulent or corrupt payments made through third parties and conducted detailed analyb'eal review and 8ub$tanlive transaction testing on third party suppliers. Where instsnces of unusual behaviour pattems were identified through our testing. we perforrned addition81 audit proTrdures lo address each identified risk. These procedures induded testing of transactions bad( to sour¢e information and were designed to provide reasonable assurance (hat the financial statements werè frèè from fraud or error. We a150 conducted specific audit procedures in relation to the risk of bribery and corruption by means of remew of any marketing, promotion or discount activity determined by a risk-based pro¢ess, Based on the results of our risk 8ssèssment wè designed OUT audit procedures to identify n0n-eomp1ian wrth such laws and regulations identified abovè. Our procedure5 invofved journal entry testing, with a focus on joumals meeting our defined risk crrteria based on our understanding of the business and enquiTies of 'Group and Companf management., and If any instances of non-compliance with laws and regulations were identffied, ihe audit team performed Sufficient and appropriate audit procedures. Because of the inhèrent limitslions of an audit, there is a risk that we will not detect all Irr¢gularilies, including those leading to a material mi5Statement in the financial statements or non-compliance with regulation. This risk increases the rn0 that compliance with a law or regulation is removed from the events and transactions reflected in the financial slalements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. [continued ...J Page 12
Independent Auditor's Report to the Governors of Highclare School (A Company Limited By Guarantee) (Registration number 1074596) (continued) Year Ended 31 August 2024 A further description of our iesponsibilities for the audit of the financlal stslemen15 is located on the Financial Reporting Council's website al.. www.frc.org.ukJauditorsresponsibilities. This de5ciiplion fomis part of our auditor's report. U8e of our report This report is made sowy lo the charitable company's members. as a body, in accordance with Chapter 3 of Part 16 of th8 Gompanies Act 2006. Our audit work has been undertaken so that we might state to the Group and charitable ¢omp8ny's members those matters we are requirèd lo slate lo them in an audilor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than t roup and tharilable company and the charitable company's rrembers as a body, for our audit work, for this or for the opinions we have formed. Pet Whitehead BA FCA Sènior Statutory Auditor For and on behalf ol MalGolm Piper & Gompany Limited Kingsnorth House Blenheim Way Birrningharn B44 8LS Dated.. 30 January 2025 Page 13
Highclare School Consolidated Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 August 2024 Unrestricted Restricted funds funds 2024 2024 Total funds 2024 Totsl fund$ 2023 Income from: Charitable activities SchcM)I fees receivable Registration fees Schcol activities & trips 7,290,518 13,187 141,948 7,290,518 13,187 141,948 6,642,916 11,987 150,000 Investments Rents and leth'ngs 8.250 8250 8.250 other other income 382,528 382.528 314,129 Total income 7,836.431 7,836,431 7,127,282 Resources exp9nded Expenditure on: Charitable activities School operating costs School activities and trips Governance costs School finan costs 17,282,643) 1141,9481 111,4251 145,6551 (301 17,282,673> 1141,9481 (11,4251 {45,6551 {6,666,5121 1150,0001 111,1501 (36,422} Exceptional Expenditure 10 1177,0321 1177,0321 1157,102} Total expenditure 17,658,703> (301 17,658,733> {7,021,1561 Net Incomg 177,726 (301 177,698 1C6,096 Transfers bgtween funds 20 Net rnovemgnt In funds for year 177,728 1301 177,698 1C6,096 Total funds brought forward at 1 September 2023 4,867,085 634 4,867,719 4,761,623 Total funds carried foMard at 31 August 2024 5,044,813 604 5,045,417 4,867,719 Al income and expenditure is derived wholly from continuing operations. The consolidated statent of financial activities includes all gains and losses recognised during the year. The notes on pages 18 to 32 form an integral part of these financial slalements. Page 14
Highclare School Consolidated Balance Sheet at 31 August 2024 (Registration number 1074596) Note 2024 2023 Fixèd assets Tangible assets 12 5,167,058 5,039,149 5,167,058 5,039,149 Current assets Debtors Cash at bank and in hand 14 228,092 2,927,280 140,119 2,163,526 3,155,372 2,303,645 Creditors.. Amounts falling due within one year 15 12,808,235) 11,920.4001 Net current assets 347,137 383,245 Totsl assets less current liabilities 5,514,195 5,422,394 CreditOTS'. Amounts falling due more than one year 16 1468,7781 1554,6751 Total net assets 5,045,417 4,867,719 Charfty Funds Restrfcted Funds 20 604 634 Unrestri¢t¢d Funds General unrestricted funds Revaluation reserves 20 20 4,693,337 351,476 4,515,609 351,476 5,045.417 4,867,719 These financial strdtements were approved and authorised for issue by the Board on 30 January 2025 and signed on its behalf by.. Govemor Mrs L E Flowith Govemor J R Brain The notes on pages 18 to 32 form an integral part of these financial statements Page15
Highclare School Balance Sheet at 31 August 2024 (Registration number 1074596) Note 2024 2023 Fixed assets Tangible assets Investment 12 13 7,464,872 3,015,7 950,000 7,464,873 3,965,7 Current assets Debtors Cash at bank and in hand 14 228,092 2,927,280 2,345,418 2,163,520 3,155,372 4,508,938 CredStors.' Amounts falling due wthin one year 15 12.808.240) {1,920,4001 Net current assets 347.132 2,588.538 Total assets less current liabilities 7,812,005 6,554.334 Creditors.. Amounts falling due after more than one year 16 1468,7781 1554,6751 Total net assets 7,343,227 5,999.659 Charity Funds Restricted Funds 20 604 634 Unrestricted Funds General unrestricted funds Revaluation reserves 20 20 7,258,593 84,030 5,914,995 84,030 7,343,227 5.999,659 These financial statemen15 were approved and authorised for issue by the Board on 30 January 2025 and sign d on its behalf by.. Governor Mrs L E Flowith Governor J R Brain The notes on pages 18 to 32 fom an integr81 part of these financial statements Page16
Highclare School Consolidated Cash Flow Statement for the Year Ended 31 August 2024 Note 2024 2023 Net cash inflow from operating activities 22 1.192.423 179,197 Cash flow from investing activities Payments to acquire tangible fixed assets Receipts from sale of tangible fixed assets Rents received from investment properties 1305NOO) 1256,7321 422 8,250 8,250 Net cash flow from investing activities 895,273 1248,C631 Cash flow from financing activities Repayment of loans Loan interest paid 185.89n 145.6221 185,8981 136,4221 Net ¢ash flow from financing actlvltles 1122,3201 Net increase (decrease) in cash and cash equivalents 763.754 1191,1861 Cash and Gash oquivalents at 1 September 2023 2.163,526 2,354,712 Cash and cash ¢quivalents at 31 August 2024 2,927,280 2.163,526 Cash and cash equlvalents eonsist of: Cash al bank and in hand 2,927,280 2.163,526 Page 17
Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2024 1. Accounting Pollcles General Informatlon and Basls of Accounting The Charity is a Company Limited by Guarantee in the United Kingdom. The members of the company are the Trustees named on page 1. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £10 per member ofthe Charity. The address ofthe registered office is given in the Charity information on page 1 of the financial statements. The nature of the Charity's operations and principal activities are detailed in the Strategic Report on page 2. The Company has taken advantsge of section 62 of the Companies Act 20(% and deleted the word °Limiled" from its name. The Charity constitutes a Public Benefit Entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by ch2rilie5.' Statement of Recommended Praelice ISORPI applicable to charities preparing their accounts In accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Stsndards applicable in the UK and Republic of Ireland IFRS 1021, the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice. The consolidated financial statements have been prepared under the historical cost accounting convention, other than in the case of certain freehold properties and investment properties, which are slated at valuation. The consolidated financial statements are prepared in sterling, which is the fvnclion81 currency of the Charity and rounded to the ne8resl pound, There are no discontinued operations. The significant accounting policies applied in the preparation of these financial statements for the Group and Charitable Company I'charity'l are set out below. These policies have been consistently applied to all years presented unless otherwise stated. Basls of Consolidation The Group financial slalements consolidate the financial statements of the company and its subsidiary undertakings, Highclare Investments Limited (company registered number 02963934) and Highclare Limited (company registered number 029639381. Inlra-group transactions and profits are eliminated on Consolidation. No separate slalemenl of financial activities is presented for the Company as permitted by section 408 of the Companies Act 2006. The Company had total income from charitable activities of £7,445,85312023'. £6.804,9031, income from investments of £1,174,12012023'. £8,250) and other income of £382,528 12023.. £314,129). Total expenditure on charitable activities was £7,424,591 12023.. £6.816,4821, governance and finance costs of £57,08012023'. £47,572) and exceptional costs of £177,032 (2023.. £157,102). The net income for the year amounted lo £1,343,598 12023.. £106,096). Funds Unrestricted funds are funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Restricted funds are fijnds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The cost of raising and administering such ftjnds are Charged against the specific fund. The aim and use of each reslricled funds is set out in the notes to the financial statements. Income Recognition All income is included in the Statement of Financial Acb'vities when the Charity is legally entitled to the income after any performance conditions have been met,. the amount can be quantified with reasonable accuracy.. and it is probable that the income will be received. Page 18
Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2024 {continued) Accounting Policies l¢ontinuedl Donations For donations to be recognised the Charity will have been notified of the amounts and settlement date in writing. If there are conditions allached to the donation, and this requires a level of perfomance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilmenl of those conditions is within the ¢ontrol of the Charity and it is probable that they will be fulfilled. Donations receivable for the general purposes of the school are credited lo unrestricted funds. Donations subject to specific wishes of the donors are credited lo relevant restricted funds. Charitable In¢omo Fees receivable and charges for services are accounted for in the period in which the service is provided. Fee5 receivable are slated after dedu¢ting allowances, scholarships and other remissions allowed by the school. Investmgnt Income Investment income is eamed through holding assets for investment purposes such as property. It includes interest earned and rent. Where it is not practicable lo identify investment management costs Incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. 11 is included when the amount can be measured reliabSy. Interest and rental income are recognised as the charity's right to receive payment is established. Expenditure Recognitlon All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs reted lo the category. Expenditure is Tecognised where there is a Ial or constructive obligation to make payments to third parties,. il is probable that the settlement will be required,. and the amount of the obligation can be measured reliably. All costs are incurred in the furtherance of the charitable aclimlies. Costs of Raising Funds Costs of generats'ng funds are those ¢osts incurred in allracling voluntary income and those incurred in trading activities that raise funds. Charitsble Activities Charitable activities include expenditure on providing education and include both direct costs and 5UPPOrt costs relating to the activity. Support Costs Support costs are those that assist the work of the Charity but do not directly represent charitable activities and include central functions and govemance costs. They are incurred directly in support of expenditure on the objectives of the Charity. Where support costs Cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with the use of resources e.g. staff costs by the time spent and other costs by their usage. Governance Costs Govemance costs comprise the costs of running the Charity, including strategic planning for ils future development, exlemal audit, any legal advice for the Governors and all the costs of complying with conslilutional and ststutory requirements. such as the cost of Board and Committee meetings and of preparing statutory accounts and satisfying public accountability. Leases Rentals paid under operating leases are charged lo income in the period lo which they late. Page 19
Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2024 (continued) Accounting Policies {contlnuedl Tangible Fixed Assets Tangible fixed assets acquired are Capitalised in the balance sheet at their original eosl or valuation. Items costing less than £750 are wrttten off as an expense in the period in which they are acquired. Depreciation is provided on all tangible fixed assets other than freehold land at rates calcuted lo write each asset down to rt$ estimated residual value evenly over its expected useful lrfe, as follows.. Freehold properties Leasehold improvements Fixtures, fittings and equipment Computer equipment Iteachingl Motor vehicles Investment properties up lo 50 years straight line up to 50 years straight line between 2 and 5 year3 straight line a maximum of 4 years straight line a maximum of 5 year5 straight line not depreciated Assets under Construction Costs ineurred in fixed assets undeT construction are capilalised as they are incurred. The lolal cost of the project will be assessed against its realisable value upon completion of the project and it will then be transferred to the appropriate asset category. No depTeciation is charged during the project constru¢lion. Where a project is aborted, the costs are immediately written off to the Statement of Financial Activities l°SOFA'I. Investment Properties Investment properties are accounted for in accordance with FRS 102. which provides that these should not be subject to periodic depreciation charges lunless held on lease), bul should be shown at fair value. This is contrary to the Companies Act 2006, which slates that, subject to any provision for depreciation or diminution in value. fixed assets are normally to be slated at purchase price or produclion cost. Current cost accounting or the revaluation of specific assets to fair value, as deterrnined at the date of their last valuation, is also permitted. The treatment of investment properties under the Companies Act does not give a true and fair view, as these assets are not held for consumption bul as investments. the disposal of which would not materially affect the operations of the Group. In such a case, il is the current value of these inveslmenls. and changes in that current value, which are of prime importance. Consequently, for the proper appreciation of the financk31 position, the atteounling treatment required by FRS 102 is considered appropriate for investment properties. Details of the current value and historic81 cost information for investment properties are given in the Tangible Fixed Asset note. Investments Fixed asset investments in subsidiarie5 are measured at historical cost less provision for any permanent diminution in value. Debtors and eredrtors receivable I payable within one yeav Debtors and creditors with no ststed interest rate and receivable or payable within one year are recorded at transaction price. Any losse5 arising from impairment are recognised in the SOFA. Loan9 and borrowings Loans and borrowings are initially recognised al the transaction price including transaction costs. Subsequently, they are measured al amortised cost using the effective interest rate method, less impaimient. If an aTrangement constitutes a finance transaction, it is measured at present value. Page 20
Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2024 {continued) Accounting Policies leontinued} Impairment Assets not measured at fair value are reviewed for indications that the asset may be irnpaired at each balance sheet date. If such indication exists, the recoveffjble amount of the asset, or the asset's cash generating unil, is eslimaled and compared to the carrying value. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the SOFA. Provisions Provisions are Ecogni5ed when the Charity has an obligation al the balance sheet dale because of a past event,. il is probable that an outflow of economic benefits will be required in settlement.. and the amount can be reliably estimated. Employee Benefits When employees have rendered service lo the Charity, short-term employ benefits lo which the employees are entitled are recognised al the undiscounted amount expected lo be paid in exchange for that service. The Charity operates a defined contribution pension plan for the benefit of ils employees. Contributions are expensed lo the SOFA as they become payable in accordance with the rules of the scheme. Taxation The Company is registered as a Charitable Educational Trust and, under the provisions of Section 505, Income and Corporation Taxes Act 1988, is exempl from liabilities to taxation on its charitable aclivilies. No corporation lax liability arises on the results of the subsidiary undertakings for the year. Government Grants The company receives govemment grants in respect of the HM Job Retention Scheme and other local government support initiatives. Income from government and other grants are cOgniSed at fair value when the company has entitlement after any performance conditions are mel, itls probable that the income will be received and the amount can be measured reliably. If entitlement is not met. these amounts are deferred. Going concern Having reviewed the cash position. the Govemors consider that the Group has adequate resources to continue its current operations and pursue its Long Term Strategy. as they believe il has the ability to meet ils debts as they fall due. Accordingly, they continue lo adopt the going concern basis in preparing the annual report and accounts. Income from Charitable Actlvltles During the year, no donations were received and classified as restricted funds. All charitsble income for the current and prior year is attribulabSe lo unrestricted funds. Income from Investments All investment income for the current and prior year is attributable to unrestricted funds. Page21
Highclare School Notss to the Consolidated Financial Statements for the Year Ended 31 August 2024 (continued) Income from Other Activities 2024 2023 Other Income 382,528 314,129 Other Income is attributable to unrestricted funds. School Operating Costs Unrestricted funds 2024 Restricted funds 2024 Total 2024 Total 2023 Salaries Teaching materials Kitchen expenses Rent, rates and insurance Heat and light Cleaning Training Repairs and maintenance Motor and transport School acts'vib'es and trips 4,965,169 215,940 548,618 109,001 215,003 213,072 13,049 396,966 43,892 141,948 4.965,169 215,940 548,618 109,001 215,003 213,072 13.049 396,966 43,892 141.948 4,469,297 232,449 507,945 111,660 220,532 207,515 14,841 244,590 43,164 150,000 Depreciation.. Fixtures, vehicles and equipment Freehold buildings Profil on disposal of fixed assets 134,193 40,438 134.193 40A38 130,840 42,134 11,6801 Supportcosts: Printing and stationery Advertising Sundry expenses Professional charges Bank charges and interest 198,762 18,234 78,203 67,368 81,815 198,762 18,234 78,233 67,368 81,815 199,821 19,356 106,933 102,676 74,392 30 7,481,671 30 7,481,701 6.864,084 All expenditure for the current and prior year is in respect of the furtherance of the charitable activities of which £30 (2023 £301 was attributable to restricted funds and £7,481,671 12023 £6,864,054} was allribulable lo unrestricted funds. Included within school operating costs are school activities and trips, governance costs Inole 61 and school finan costs {note 9), which have been disclosed separately on the Statement of Financial Activities. Page 22
Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2024 (continued) Governance Costs Unrestricted funds 2024 Restricted funds 2024 Total 2024 T¢)tal 2023 Auditors, remuneration {note 111 11,425 11.425 11,150 staff Costs The average monthly number of empbyees and full-time equlvants (E) during the yearwas as follows.. 2024 2023 Number FfE Number Teachers Adminislralion Auxiliary staff 106 27 20 88 22 13 115 28 17 83 23 11 153 123 160 117 2024 2023 Staff costs for above persons". Vvages and salaries Social securty costs other pension costs 4,371,883 359,910 233,376 3,964,898 303,188 201.211 4,965,169 4,469.297 There were five 12023.. three} employees whose emoluments as defined for laxalion purposes amounted to over £60,000. Their emoluments fell within the following bands". three £60,000 £70,00012023.' one) one £70,001- £80,00012023'. one). one £80.001- £90,00012023= nill and nil £120,000 - £130,000 {2023'. one). Pension costs in respect of the above employee5 lotalled £31,68912023'. £28,512)- Defined contributlon penslon scheme The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in independently administered funds. Four12023.' kn) higher paid employees are accruing benefits under the group defined contribution pension scheme and no 12023.. one) employee has their pension contributions paid into a private pension scheme. The total pension Costs charge to all schemes represents contributions payable by the Group and amounted to £233,37612023'. £201,211). Page 23
Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2024 (continued) Trustees. and Key Management Pgrsonnel Remuneration and expenses The Governors do not receive any remuneration from the School, have no accruing pension arrangements and had no expense5 reimbursed in either the year to 31 August 2024 or the previous financial year. The totsl amount of employee benefits received by key management personnel is £430,72712023.' £504,272). The Charity considers its key management personnel are the Senior Leadership Team. School finance costs 2024 2023 Bank loan Interest 45,622 36,422 10. Exceptional Items Exceptional items relate to amounts incurred during the year, which are not of a recurring nature. These are as follows.. 2024 2023 Legal and professional fee5 in respect of various planning and other strategic related work 177,032 157,102 11. Total Resources Expended 2024 2023 Total resources expenéed on charitable actmties includes-. Depreciation of tangible fixed assets Surplus on disposal of tangible fixed assets Auditorfs remuneration in respect of non-audil services 177,491 159,288 {3751 7,524 5,670 Governance costs includes". 2024 2023 Auditors, remuneration in respect of audit services for audit services for other service5 11,425 5,670 11.150 7,524 17.095 18,874 Page 24
Highclare School Notss to the Consolidated Financial Statements for the Year Ended 31 August 2024 (continued) 12. Tangible Fix¢d Assgts Fixtu$, fittings, vehicles & equipment Investment propertles Freehold properties Total Group Cost or valuation Al 1 September 2023 Addib'ons 219,162 6,150,480 17,200 1,848,638 288,200 8,218,280 305.400 Al 31 August2024 219,162 6.167680 2,136,838 8.523.680 Depreclatlon Al 1 September 2023 Charged in the year 1.687,220 40,438 1,491,911 137,053 3,179.131 177.491 Al 31 August 2024 1.727 658 1628 964 3.356,622 Net Book Value Al 31 August2024 219,162 4,440.022 5167 058 Al 31 August 2023 219 162 4 463 260 356.727 5.039,149 Company Cost or valuation Al 1 Septerllber 2023 Tmnsfer frorn subsidiary undertaking 219,162 3.022.545 1,848,638 5.090,345 4.338.364 288,203 4,626,567 At 31 August 2024 219 162 7 360 909 2 136841 9716,912 Depreciation Al 1 September 2023 Charged in the year 582.638 40.438 1,491.911 137.053 2,074,549 177,491 At 31 August 2024 623.076 1628.964 2.252,040 Net Book Value At 31 August2024 219 162 6 737 833 7 464 872 Al 31 August 2023 219.162 2 439,907 356.727 3015796 Note: The Transfer from subsidiary undertaking represents the transfer of all freehold land and buildings and leasehold improvements al revalued Carrying amounts to the company as part of the Group simplification referred to in the post balance sheet events note. Page 25
Highclare School Notes to the Consolidated Financial Ststements for the Year Ended 31 August 2024 (continued) 12. Tanglble Fixed Assets {¢ontinuedl On an historical cost basis the freehold property would be included at.. Group 2024 Company 2024 2023 2023 Cost DepreciatKsn 5,638,202 {1,695,6131 5,621,002 11,655,175) 7.309,374 1621,5251 2,791,010 1581,0871 3,942,589 3,965,827 6,687.849 2,209,923 Freehold land and buildings at 241 Birmingham Road, Wylde Green were re-valued during the year ended 31 August 1995 al open market value with vacant possession by Weatherall, Green & Smith. independent chartered surveyors. The Governors are satisfied that thi5 valuation remains appropriate. and currently have no intention to perform further revaluations. The transitional rules sel out in FRS 102 - 'Financial Reporting Standards applicable in the UK and Republic of Ireland, were applied on implementation of FRS 102. Accordingly, the book values at implementation have been retained as deemed cost. The Governors are aware of their responsibilities to ensure that there has been no impaimienl to the value at which the properties are included in the financial stalemenls. Based on advice and enquiry of appropriate professionals the Governors are confident that the value of the freehold properties at the dale of transition lo FRS 102 is not impaired and the ultimate market value exceeds the book values retained at implementation of FRS 102. On a historical cost basis the investment propety would be included at.. Group Company 2024 2024 2023 2023 Cost Depreciation 219,162 219,162 219,162 219,162 219,162 219,162 219,162 219,162 In accordance with the requirements of FRS 102, but contrary to the requirements of the Companies Act 2006, inveslrnenl properties are not depreciated. Instead, their ongoing current value is reviewed annually, which the Governors consider necessary in order lo show a true and fair view. The property was acquired in 2005 and is ststed at cost. The Govemors consider that its Cur1 market value at 31 August 2024 is in excess of its accounts carrying value. Included in Group freehold land and buildings is land with a total cost or valuation of £1,027,500 {2023-. £1,027,500) which is not depreciated. iv} All fixed assets other than the investment properties are used for direct charitable purpose5. Page 26
Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2024 (continued) 13. Investment As noted in the post balance sheet events note. the ¢ompany substantially completed the legal formalities to effect the simplification of the Group structure which involved the reduction of share capital in the subsidiary undertaking, Highclare Investments Limited Icompany registered number 029639341, whereby 949,999 Ordinary Shares of £1 each were extinguished, reducing the cost of investment to £1. The Investment represents 1 Ordinary Share12023'. 950,0001 of £1 in Highclare Investments Limited, a wholly owned subsidiary. Highclare Investments Limited also has a wholly owned subsidiary, Highclare Limited, (company registered number 029639381 in which a similar transaction lo extinguish 899,999 Ordinary Shares of £1 each was subslanlially completed at the year end. Highclare Investments Limited holds 1 Ordinary Share12023'. 900,0001 of £1 in Highclare Limited. The principal activity of both subsidiaries is property ownership and management and both are Incorporated in England. Neither company traded in the current or previous financial year. Hlghclare Investments Llmlted Highclare Limited 2024 2023 2024 2023 Summary profit account and loss Turnover Administratve expenses Exceptional items 1,304,122 993,692 Ngt profit for the year 1,304,122 993.692 The assets and liabilities of the subsidiaries were.. Fixed assets Current assets 2.048.350 875,000 Creditors: Amounts falllng due within one year (1,331,811) 1873,488} Total net assets 716.541 1,515 Aggregate share capitsl and reserves 716,541 1,515 Page 27
Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2024 (continued) 14. Debtors Group 2024 Company 2024 2023 2023 Due within one year. Outstanding fees Amounts owed by subsidiary undertakings Other debtors Prepayments 13 13 2,205,351 58.130 81.924 144.190 83,897 58,182 81,924 144.190 83,897 228,092 140,119 228.092 2,345,418 15. Creditors: Amounts falling due within one year Group 2024 Company 2024 2023 2023 Bank loans Trade creditors Fees in advan Other tsxalion and social security Other creditors Accruals Deferred income Friends of Highclare School Fund Amounts owed to group 85,898 495.938 646,709 82,005 455.571 188.354 849.234 4.526 85,899 288,870 845,638 72,985 383,466 242,066 85,898 495,938 646,709 82,005 455,575 188,354 849,234 4,526 85,899 288,870 845,638 72,985 383,466 242,066 1,476 1,476 208,235 1.920,41X) 2,808,240 1,920,400 8ank loans and overdrafts are SeCud by a fixed charge over book debts and a floating charge over all other assets of the Group, together with mortgage5 over certain freehold properties. 16. Credltors: Amounts falling due after more than one year Group 2024 Company 2024 2023 2023 Bank loans 468,778 554,675 468,778 554.675 See Maturity of borrowings note. Page 28
Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2024 {continued} 17. Matuiity of Borrowlngs Group 2024 Company 2024 2023 2023 Bank loans Amounts fall due on the bank loans as follows.. Wf(hin one year Beiween one and kn years Beeen kn and five years Over five years 85,898 85.898 257,693 125.186 85,899 85,899 257,697 211,078 85.898 85,898 257,693 125,186 85,899 85,899 257,697 211,078 554.676 640,573 554,676 640,573 Bank loans for the group and company include the following.. {al A mortgage loan which had a remaining balance at the year-end of £438.009 {2023.' £507.240) carries interest at the Bank's Sterling Base Rale plus 1'k12023 Bank's Sterling Base Rate plus 1 ty/ol.This loan is repayable by termly inslalments of £23,077 which ComMend Seplember2013 and ends in 2028. Ibl A second loan with a remaining balance at the ye8rend of £116,667 (2023.. £133,333), which is repayable by termly capital inslalmenls of £5,556 payable on 1 September, 2 January and 1 May commencing on 1 September 2013 and ends in 2033. The loan carries interest al the Bank's Sterling Base Rate plus 3.OOYo and is paid monthly 18. Operating l¢a$es At 31 August 2024, the School was committed to making the following payments under non- cancellable operating leases. These commitments are analysed as follows.. Group 2024 Company 2024 2023 2023 Other Within one year Been one and five years Over five years 51,088 114.154 154,000 51,088 154,242 165,000 51,088 114,154 154,000 51,088 154,242 165,000 319,242 370,330 319.242 370,330 Included in the opemting leases disclosure above is a enty-ffive ye8r len8n¢y lease with Birmingham City Council signed on 6 September 2018 over land referfftd to 28 "Highclare Sports Field". Under this agreement, there is a five yearly rent review. 19. Contlngent Ilabllltles In the event that bank borrowings arise, the Company has guaranteed by a fixed and floating charge the bank borrowing of other Group undertakings which tolalled £554,676 al the year-end (2023 £640.5731. This charge was satisfied in full after the yearend and the cross guarantee released. Page 29
Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2024 (continued) 20. Funds Reconeiliation Group Asat1 September 2023 Asat31 Augu$t 2024 Income ExpendSture Transfers Restricted funds Unrestricted funds Revaluation reserve 634 4,515,609 130} {7,658.703} 604 4.693,337 7,836,431 351,476 351,476 Total funds 4,867,719 7,836.431 (7,658,733} 5.045.417 Company Asat1 September 2023 A5at31 August 2024 Income Expenditure Transfers Reslricled funds Unrestricted funds Revaluation reserve 634 5,914,995 1301 (7,658,703) 604 7,258,593 9,002,301 84,030 84,030 Total funds 5.999,659 9,002,301 17,658,733} 7,343,227 Fund descrlptions a) Unrestricted funds The unrestricted funds are retained as necessary to meet the general requirements of the School. The Charity aims lo retain consolidated unrestricted reserves equivalent to the carrying value of the tangible fixed assets, which amount lo £5,167,058 as at 31 August 2024 12023.. £5,039,149) as a contingency in order to maintain the stable operation of the School In the ¢a5e of future unforeseen events. 11 remains the objective of the Board of Govemors for the reserves to continue to increase until this minimum target is met and through careful management and control of operational costs. The unrestricted reserves have been maintained 81 the year-end. Con501idaled unrestricted reserves at 31 August 2024 amounted lo £5,044,813 12023.. £4,867.0851, as shown in the notes above. bj Restricted funds During the yèar, prizes of £30 (2023.. £301 were awarded. The rerT7aining restricted funds £604 12023.. £6341 relate to donations received for prize funds at Seniors Speech Day and for use by the Music, Modern Foreign Language and Physical Education departments. CJ Revaluation reserye The revaluation reserve represents unrealised surpluses on the revaluation of fixed assets to market value in prior years. An amount is transferred to the unrestricted fund each year on the same basis that the asset is depreciated. Page 30
Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2024 (continued) 21. Analysis of net assets between funds Group Unrestricted funds Restricted Funds Total Funds Fund balances at 31 August 2024 are represented by.. Tangible fixed assets Current assets Current liabilits-es Long temi liabilities 5,167,058 3,155,372 12,808,235) {468,7781 5,167,058 3,155,976 12,808,235) 1468,7781 604 Total net assets 5.045,417 604 5,046,021 Unrealised gain$ included above on tangib fixed assets Company Unrestricted Funds Restricted Funds Total Funds Fund balances at 31 August 2024 are represented by: Tangible fixed assets Investment Current assets Current liabilits'es Long term liabilities 7,464,872 7,464,872 3,155,372 12.808.240) 1468.778) 604 3,155,976 {2.808,2401 1468,7781 Total net assets 7,343,227 604 7.343,831 UnaliSed gains included above on tangible fixed assets 22. Reconciliation of net income to net cash flow fTom operating activities 2024 2023 Nel income for year 177,698 1CE,095 Rents Tlved from Investment properties Depreciation of tangible fixed assets Surplus on disposal of tangible fixed assets Amortisation of intangible fixed assets Interest payable Ilncreaselldecrease in debtors IDecrease)/increase in creditors 18,2501 177,491 18,250} 159,288 1375) 45,622 188,9731 887,835 36.422 21.023 1135,007} Net cash flow from opeting actNiities 1,192,423 179,197 Page 31
Highclare School Note5 to the Consolidated Financial Statements for the Year Ended 31 August 2024 (continued) 23. Post Balan¢e Sheet Events During the financial year, the company substantially completed the legal formalities to effect the simplificab'on of the group structure which involved the reduction of share capitsl in the subsidiary undertaking, Highclare Investments Limited, whereby 949,999 Ordinary Shares of £1 each were extinguished, reducing the cost of investment to £1. These arrangements also included the transfer of all freehold land and buildings and leasehold improvements al revalued carrying amounts to the company. Whilst the transactions were concluded after dale, the decision was taken, and the practical steps lo achieve this were substantially completed, before the year end. The process was originally intended to have been concluded by 31 August 2024 but was delayed only by the completion of the legal formalities. The nature and impact of the transactions is considered to be material to the company and, therefore, the transaction has been reflected in these financial statements as rf it had been completed a5 at 31 August 2024. 24. Transactions involving Governors Governors, Interests In contra¢ts. During the financial year ending 31 August 2024, £90,848 12023.. £71,595) was invoiced by Jon Flowith & Partners. The fees relaleé lo building, planning and other complex strategic property matters for the school. Mrs Louise Flowith, the Chair of Governors and a partner in that consulting practice, absented herself from discussions and instructions to the partnership, which were given expressly to her husband Jon Flowith, a Chartered Surveyor, by designated Govemors. All transactions were provided on an arm's length basis and appropriate safeguards and governance processes observed. This amount was paid in the year ending 31 August 2024. An additional £6,000 has been accrued in respect of the work done prior to the year end bul not yet invoiced. As part of its insurances the Group maintains cover for the Governors and officers against liabilities in relation to their dutie5 to the School. The cost for 2024 was £3,08012023.. £3,151). Related party transactlons There is no controlling party. The Company has taken advantage of the exemptions not to disclose inlra-group transactions on the basis that all subsidiaries are 1000/0 owned and all transactions with other Group companies are elirninated in the consolidated financial statements. Page 32
Highclare School Governors, Report (continued) Organisational Management The Directors of the Company are also Charity Trustees for the purposes of Charity Law and under the Company's Articles are known as Governors. The Governor5 are all members of the Company serving in a non-execulive capacity and receive no emoluments. The day-to-day management of the School is delegated to the Head and the Senior Leadership Tearn. The Governors who served in the year ended 31 August 2024 were.. J A Barrett (Presidenll Mrs L E Flowith (Chairman) J R Brain (Treasurerl Mrs P A Mayall A l Hazel Mrs S D Watson A B Davison Mrs A Moore lappoinled 21 February 20241 Mrs S D Watson and Mr J A Barrett retire by rotation at the forthcoming Annual General Meeting and, being eligible", offer themselves for reelection al the Annual General Meeting. Auditors Maleolm Piper & Company Limited, as auditors, will be proposed to the GoveTnoTS for reelection at the Annual General Meeting. Approved by the Board on 30 January 2025 and signed on its behalf by". J R Brain Govemor Page 9