2025-08-31-accounts

Registered number: 00050404 Charity number: 529686

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

CONTENTS

	Page
Reference and administrative details of the Company, its Governors and advisers	1
Governors' report	2 - 14
Governors' responsibilities statement	15
Independent auditors' report on the financial statements	16 - 19
Statement of financial activities	20
Balance sheet	21 - 22
Statement of cash flows	23
Notes to the financial statements	24 - 52

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2025

Governors	Mr G W Robinson, Chairman
	Mr A S Green, Vice Chairman
	Mrs V J Gillingham
	Mr R Guthrie
	Mr J R Marshall (resigned 15 May 2025)
	Mr S N Fairbank
	Mr J S Rowlands
	Mr J F W Swiers
	Mr G N M Young
	Dr J Renshaw (resigned 15 May 2025)
	Mr A W Ingham
	Mrs W E Martin
	Mr C A Burns
	Mrs J Storey (appointed 4 December 2025)
Company registered number 00050404 Charity registered number 529686 Registered office Scarborough College Filey Road Scarborough North Yorkshire YO11 3BA Company secretary Ms A J Higgins Independent auditors Armstrong Watson Audit Limited Chartered Accountants & Statutory Auditors Third Floor 10 South Parade Leeds West Yorkshire LS1 5QS Bankers Lloyds Scarborough North Yorkshire YO11 2YY Solicitors Flint Bishop 2 The Embankment Sovereign Street Leeds LS1 4BA

Page 1

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT FOR THE YEAR ENDED 31 AUGUST 2025

The Governors, (who are also the Trustees and Directors of the Company for the purposes of company law, and so will be referred to through out the report as "the Governors") present their annual report together with the audited financial statements of the Company for the 1 September 2024 to 31 August 2025. The Annual report serves the purposes of both a Governors' report and a Directors' report under company law. The Governors confirm that the Annual report and Financial Statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Objectives and activities

a. Objectives and Activities

The objects of the Company, in accordance with its Articles and Memorandum of Association, are to establish and conduct in Scarborough, and elsewhere, a Day and Boarding School or Schools for Boys and Girls (aged 3 to 18 years) in which there shall be given a sound education, combined with a moral and religious input.

b. Aims and Intended Impact

The Company's vision is to be a recognised leader in British independent education.

c. Mission Statement

The Company's commitment is to discover and fully realise every child's potential by ensuring that all pupils are seen as individuals whose specific needs are recognised and met. We are dedicated to providing a far-reaching education that goes beyond the boundaries of the classroom, underpinned by strong lifelong values, which inspires academic excellence and ensures pupils are challenged. Regular opportunities to understand their own capabilities through exposure to a broad range of sporting, cultural and creative activities, widens our pupils' horizons and builds their self-confidence. Within our outward facing, grounded and caring community the relationships that exist nurture tolerant, honest and compassionate people who will make a genuine difference in their futures beyond the confines of our school.

d. Aims of the Company

The Company seeks:

• To encourage and enable pupils to achieve their academic potential and to foster a climate in which high quality teaching and learning are the upmost priorities.

• To respond to, support, and bring about the aspirations of pupils and their parents, whilst being attentive to their views.

 To consistently provide a high degree of personal care, support and guidance within, and outside of, the formal pastoral structure.

• To promote the acquisition and development of life-long values and 'character'.

• To cultivate and develop in pupils a sense of spirituality, cultural awareness and a moral framework through which they can live a fulfilling and happy life.

• To provide an environment in which pupils feel valued and learn to work co-operatively within a safe and nurturing community.

• To provide regular opportunities for all pupils to engage with a varied co-curricular programme so that they

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SCARBOROUGH COLLEGE LIMITED (A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Objectives and activities (continued)

may explore their talents and discover life-long passions.

• To be a caring, supportive and appreciative employer, recognising the work and commitment of all staff whilst facilitating a climate of continual professional development.

• To consistently look for improvements in everything we do, thereby ensuring that the experience all our stakeholders undergo becomes ever more positive and rewarding.

The main objectives remain unchanged and are to achieve excellent public examination results, to continue with the successful work related to the International Baccalaureate programme, to enhance the boarding provision, and to strengthen even further the Company's links with the community.

The Company's strategy is to continue to develop the school's facilities, both physical and intellectual, for providing an excellent education for its students. The enhancement of the school facilities will be driven through property development activity which is given in greater detail in the Future Plans section of this report.

e. Principal Activity

The principal activity continues to be the provision in Scarborough of Independent Education for both boarding and day children between the ages of 3 to 18 years old. The Prep School takes boys and girls from 3 to 11 years of age and also operates a pre-school nursery (Little Owls). The Senior School provides for students aged 11 to 18 years. For this academic year the student population was 575, not including younger children attending the nursery.

f. Volunteers

The Friends of Scarborough College, and the Old Scardeburgians Association (OSA) both continue to support the College in many ways. Both groups fund raise to support projects in the College including enhancement of the facilities. The OSA also holds regular functions to bring present and past pupils together both through sport and socially. Furthermore, the OSA sponsor scholarships as part of the scholarship and bursary scheme operated by the College. In addition, these groups, the formation of the Scarborough College Foundation will look to strengthening the fundraising to enable significant projects with thin the College to go ahead. The Board continues to be extremely grateful for all their efforts, and the enthusiastic support of both groups creates a strong bond between the College and parents, helping to strengthen community spirit.

g. Public Benefit

The Company remains aware of its responsibility to achieve public benefit by working closely with the local community, whilst also developing links with other schools, charities and other local organisations. The Company has complied with the duty in section 17(5) of the 2011 Charities Act to have due regard to guidance published by the Charity Commission.

The Company continues to take a leading role in a number of areas of support to the local community and, in particular, to sports in the Scarborough area. This can be highlighted by a few examples including its partnership with a number of local primaries school to help deliver sports lessons to their children across all year groups. Further to the council's permission to allow third-party users, the Company will continue to offer the all-weather astro pitch to Scarborough Hockey Club as well as other local clubs, including Scarborough Athletic for a nominal fee.

During the summer period and other periods outside of term time, the Company actively reaches out to schools, sports clubs and other organisations. Yorkshire County Cricket club and subsidiaries such as the Yorkshire Cricket Development Group make use of both the indoor and outdoor facilities. Various schools can use, and do use, the sporting facilities on Bramcote, Deepdale and the Main College field.

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SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Objectives and activities (continued)

In addition, schools can make use of the performing arts facilities at Lisvane Hall as well as classrooms in the Science block, the visual arts department and other areas of the school. Depending on the nature of the provider, usage is either free of charge or for a nominal fee.

The Company organises a number of events for local primary schools, including, though not limited to, Tykes in Tune performing arts day, CSI Science Day and sports days. Furthermore, the Company offers its minibuses to support schools with transportation of their pupils. Our Director of Rugby, Ben Foden Ex-England International, has been spending time coaching at local primary schools.

h. Community Service

Throughout the College and across all age groups, there is a strong sense of community spirit and service. Outside of school life, numerous students are actively involved in community service and, in addition, many overseas students have been active in or even founded community projects in their own countries and communities. Their enthusiasm and altruistic entrepreneurial spirit inspires and supports other pupils. Examples of charities supported by the staff and pupils are MacMillan, Mellow Yellow, Young Minds and the local charities such as the Rainbow Centre, Yorkshire Air Ambulance and Age UK Scarborough. Together with pupils, the Friends of Scarborough College and the Scarborough College Charities Committee; the Company maintains strong ties with several charities in the community as well as nationwide.

Within the Senior School, students are engaged IB community service as part of their Duke of Edinburgh programme of which almost all the eligible students of the Senior School take part in at some point. It is an essential part of the International Baccalaureate Diploma Programme during Sixth Form, where the Creativity, Action and Service (CAS) component of the Diploma Programme encourages students to engage with the world around them.

Charitable donations from fund raising activities amount to £7,268 (2024: £5,640) in the year.

i. Bursaries and Scholarship awards

It is important to us that access to the education we offer is not restricted to those who can afford our fees. We believe our pupils benefit from learning within a diverse community. Learning occurs through social interaction, conversation and shared experiences which help our pupils develop an understanding of the perspectives of other people that will be vital in their adult lives.

Our bursary policy together with our out-reach work contribute to a widening of access to the education we offer and the facilities we enjoy.

The Governors view our bursary awards as important in helping to ensure children from families who would otherwise not be able to afford the fees can access the education offered by Scarborough College. Our bursary awards are available to all who meet our general entry requirements and are made solely based on parental means or to relieve hardship where a pupil's education and prospects would otherwise be at risk, for example, in the case of redundancy. In assessing means the College takes several factors into consideration including family income, investments and savings, and family circumstances, for example, dependent relatives and the number of siblings.

Those wishing to be considered for bursary support are required to complete a Bursary Application giving full details of their financial situation, supported by original documents. Bursary remission on fees is assessed according to the guardians' ability to pay full fees and the availability of bursary funds to the College. Bursary awards are subject to the annual testing of the guardians' means.

This year the value of means tested bursaries totalled £876,898 (2024: £744,124) and represented 7.21% of our gross fees. They aided 142 pupils, representing 24.15% of the school roll.

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SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Objectives and activities (continued)

j. Non means-tested fee remissions

The purpose of our scholarship awards is to recognise high academic, musical, and sporting potential or ability to excel in our co-curricular activities. Our scholarships are awarded on the basis of the aforementioned abilities which will contribute to our co-curricular activities; awards may be subject to conditions. Scholarships are awarded with a fixed remission of fees of between 10% and 100%. Where further assistance is required, scholarship awards may be supplemented by a means-tested bursary. The value of Scholarships in the school year totalled £1,293,671 (2024: £899,203) awarded to 189 pupils.

Other forms of non-means-tested assistance were also awarded during the academic year, including sibling and staff discounts. In total these awards were made to 288 pupils and amounted to £1,482,862 (2024: £1,230,726).

The progress of pupils receiving scholarships is reviewed at least annually to ensure their progress is in line with abilities. No scholarships were withdrawn in the year as a result of reviews.

HMC Projects

In the early 1990s, as communism collapsed in eastern Europe, the Headmasters’, and Headmistresses' Conference (HMC) supported a sixth form scholarship scheme to provide educational opportunities for young people in countries that had been behind the Iron Curtain. HMC Projects, as it was called, aimed to identify talented 16 and 17 year olds and give them the opportunity to study and live at a British boarding school. The aim of the scholarship programme is to foster bonds of understanding and friendship between young people across Europe and to give young people from the former communist countries in Central and Eastern Europe an enriching and rewarding experience in some of the best schools in the world. In 2019 Scarborough College first offered a place to a scholar. By 2025 the College had 1 scholar. The value of such Scholarships in the school year totalled £43,547.

British Alumni Scholarship

The British Alumni Society (BAS) was established in 1999 under the auspices of the British Council and the British Embassy in Warsaw. The BAS provides a forum for graduates of scholarship schemes offered by those two institutions (Chevening Scholarships, British Council Scholarships, Know How project, etc). Today BAS has over 550 members: both Poles and British nationals residing in Poland, who have studied at university level or participated in other educational schemes in the United Kingdom.

BAS organizes seminars, debates, discussion clubs and mentoring programmes in collaboration with the British Council, the British Embassy, the British Polish Chamber of Commerce and European Financial Congress. Their flagship project is a scholarship scheme for secondary school students who may apply for free places in UK independent boarding schools.

In 2023 Scarborough College signed a contract with BAS for one student per annum, interviewed by both BAS scholars as well as Scarborough College, to be the recipient of a fully funded IB Diploma Programme place of two years. The value of such Scholarships in the school year totalled £43,547.

k. Our ethos; a caring Company serving our local community and society.

The Governors are responsible for setting a strategy for achieving the objectives they have set. The focus of our strategy is on the development of our pupils, their continued high levels of academic and co-curricular achievement and to further widen access to the education the College provides.

Scarborough College is a charitable trust which seeks to benefit the public through the pursuit of its stated aims. The fees are set at a level to ensure the financial viability of the College, and at a level that is consistent with our aim of providing a first-class education to boys and girls from all backgrounds of the local community and beyond. To admit a prospective pupil, we need to be satisfied that the College will be able to educate and develop him/her to the best of their potential and in line with the general standards achieved by their peers. Entrance assessments and interviews are undertaken to satisfy the College and parents that potential pupils can

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SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Objectives and activities (continued)

cope with the pace of learning and benefit from the education provided. An individual's economic status, gender, ethnicity, race, religion, or disability do not form part of the assessment process.

The College is an equal opportunity organisation and is committed to a working environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, sex, sexual orientation, or disability. The College makes reasonable adjustments to meet the needs of staff or pupils who are or become disabled, The College is committed to safeguarding and promoting the welfare of the pupils and expects all staff and volunteers to share this commitment.

Parents are given regular information about their children's social and academic progress through parent evenings in addition to the traditional end of term and year reports. The College maintains regular contact with parents throughout the year through informal contacts and the fortnightly news publications (The Owl). All pupils have a Form Tutor responsible for pastoral care and academic development.

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SCARBOROUGH COLLEGE LIMITED (A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Strategic report

Achievements and performance

a. Our successes

As a non-selective school, Scarborough College is proud to remain true to its founding mission and provide deserving children with a world class, holistic education. Students in the Sixth Form study the renowned and globally recognised International Baccalaureate Diploma Programme (IBDP). Through its Learner Profile, IB World Schools such as Scarborough College embrace and foster academic excellence in a learning environment that is culturally diverse, caring, forward facing and robust.

Public examination in both the GCSEs and IBDP continued to be extremely positive and far above the world average (IBDP). Sixth Form students were successful at gaining places at several top universities in both the United Kingdom and the rest of the world, while some earned highly sought-after scholarships at some of these universities. The IBDP exam cohort was 40 students, who achieved an average of 31.6 points, which was almost three full points above the world average. GCSE results were once again outstanding with well over one third of students achieving grades 9-7 (A* and A). 86 pupils were entered with the overall pass rate was almost 90%.

Furthermore along with its mission, Scarborough College continues to provide a diverse, challenging and inspiring co-curricular programme. These include activities of a sporting nature, performing and visual arts, outdoor exploits as well as activities that promote a healthy and sustainable lifestyle and well-being. This mission is highlighted in the College’s Yorkshire Grit programme, its Enrichment Programme and the extremely high numbers of children registering for the Duke of Edinburgh programme.

As a direct result of this dedicated approach, both performing arts and sports continue to thrive at the school. Gig on the Green has become an annual event and an extra production has been added to the school calendar, providing more depth and opportunities for children interested in the performing arts. A record number of children are enrolled intro private music lessons and the College’s LAMDA programme. Over one third of the College has appeared in school productions with three different performances this year, this is increasing to four next academic year. Performances included, The Great Gatsby, Legally Blonde and Wind in the Willows.

Further investment in sports has seen Scarborough College compete at an extremely high level in cricket, hockey, golf and rugby. The College secured two national cricket titles, Under 13 Boys and Under 18 Girls. Pupils at various ages groups have reached individual success with recognition at regional levels and the Under 15 Boys reached the national semi-finals. Over 30 pupils have earned county or the equivalent selection. Eleven have earned national selection which is an incredible achievement, including two boys being selected for the Under 19 world Cup. One student has just earned full national selection for the West Indies Ladies Team.

Success has also been reached by the hockey teams, entering at Tier 1 Level. Both boys and girls have secured regional titles, and the girls reached fourth place in the Country in the ISHC competition. The boys also finished third in the national Indoor Championships.

Rugby is also thriving at the College. The U18 team reached the last in the Under 18 plate for a second year in a row. There have been impressive results across all age groups, including four teams appearing at Roselyn Park with participation of over 500 pupils representing the College.

Across all sports 33 pupils have been selected to represent their country in the last 18 months.

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SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Strategic report (continued)

Achievements and performance (continued)

b. Financial Review and Results

The Company continues to grow in size both in terms of pupil numbers, with a 8.4% increase in the numbers and a £1,435,953 growth in net fees. It does, however, maintain committed to providing support to families struggling with the effects of the current economic climate. The principal source of income is fees accounting for 96% of the Company’s total income.

The Company itself has seen a rise in expenditure of 4.67% which is driven in part by the rise in pupil numbers and as a result of cost-of-living crisis and inflationary pressure on prices. The Governing Body maintains focussed on controlling the levels of expenditure.

The Company produced a defecit in 2024 - 2025 of £633,154 This does include a loss of £348,001 relating to the fair value adjustment on the defined benefit scheme. It is planned that the Company will next year be once again in surplus and hoped that this position can be maintained for future years.

The Governors are continuing their strategy of deploying all net incoming resources to investing in the educational purposes and fabric of the Company.

As a charity the parents of the pupils have the assurance that all income of the Company must be applied for educational purposes. As an educational charity we enjoy tax exemption on our educational activities and on our investment income and gains, provided these are applied for our charitable aims.

Commencing this year the Company became VAT registered and lost its' previously claimed business rates reduction of 80%. We also pay tax as an employer through the national insurance contributions we make.

In addition to the very substantial benefits the Company brings to our pupils, the local community and society through the education we offer, our bursary programme and our out-reach work create a social asset without a cost to the Government.

Scarborough College has received strong endorsements from both a 2025 ISI Inspection and The Good Schools Guide, with both reports highlighting the school's high academic standards, underpinned by specialist teaching, small class sizes, and a fully IB-based Sixth Form. Alongside exceptional pastoral care, these independent reports show that every pupil is personally known and supported. The school's boarding provision is described as a standout success, bucking the national trend with growing numbers choosing to board in beautifully maintained, homely houses. Beyond the classroom, pupils benefit from a rich extracurricular programme encompassing sport (with over 40 pupils having represented their country), performing arts, outdoor education, and a distinctive Surf Academy that nurtures the school's characteristic "Yorkshire grit." Governance and leadership are praised as visible, values-driven, and strategically sound, with the Headmaster described as "a very human leader," and the school as a whole characterised as an open, tolerant, and ambitious community where pupils thrive academically, personally, and socially from Prep School right through to IB Diploma.

c. Development and Maintenance

Other significant maintenance works have been undertaken during the year as part of the Colleges prioritised maintenance plan to ensure the College's buildings continue to function fully as intended.

The completion of a new 4 lane cricket net facility, a new multi-use games area, the completion of a new Boarding House and the development of a new teaching block upgrading the Art and Design and Technology facilities as well as the creation of three additional classrooms. The College remains in discussions with the local Council to purchase and redevelop the Old Sports Centre.

Page 8

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Strategic report (continued)

Achievements and performance (continued)

d. Key Performance Indicators

	2025	2024	2023	2022	2021	2020
		(restated)
IB exam pass rate	96.4%	89%	87%	88%	100%	81%
GCSE pass rate (9-4)	88%	87.8%	92%	95.60%	96%	89%
Net fee income (£'000)	8,674	8,462	6,790	6,275	5,431	4,709
Non fee income (£'000)	526	687	502	1,086	258	621
Net incoming (outgoing)
resources before fair value	(285)	89	(207)	325	(655)	(23)
adjustments (£'000)
Capital expenditure	2,449	798	881	996	173	416

e. Reserves Policy

The Governors regularly review the finances, budgets and spend against budget together with a cash flow analysis as part of the effective stewardship of the Company.

In common with other independent schools, the Governors have invested substantial sums into the Company buildings and have a continuing programme of refurbishment and development to maintain the excellent teaching facilities for our pupils.

The Company's unrestricted funds stood at £2,567,920 at the year end, and these were wholly deployed in funding the Company's Capital Expenditure on the premises and equipment. The Company's restricted funds stood at £74,627 at the year end.

The policy of the Governors of Scarborough College Limited is to aim to retain reserves of £1.3 million or more. This is equivalent to approximately three months' expenditure, by means of annual operating surpluses, subject to the prior demands of further capital and revenue expenditure needed to maintain the high standard of the educational facilities provided at the Company. The Governors also aim that at the end of each academic year, an amount equal to 10% of the cash surplus generated in that year, as reported in the cashflow statement, shall be transferred into a dedicated reserve account. The aim of this reserve is to provide a contingency fund for any future major, unforeseen event and also to provide funding for future developments.

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SCARBOROUGH COLLEGE LIMITED (A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Strategic report (continued)

Achievements and performance (continued)

f. Market Value of Land and Buildings

In the opinion of the Governors of the Company, the current market value of the Company's land and buildings was not less than the amount £8,272,862 shown in the balance sheet.

Going Concern

Along with all independent schools in the United Kingdom, the College is impacted by changes the Government introduced to bring school fees within the scope of standard rated Value Added Tax on with effect from 1 January 2025. In addition, the Government removed the charitable relief for business rates from April 2025 and increased the employers National Insurance charges. These changes have increased the administrative costs for all providers of independent education including the College. The Governors undertook significant planning in anticipation of the VAT changes and have mitigated the impact of the increases in administrative costs by increasing the fees charged, whilst keeping increases in fees as small as possible.

The Governors have assessed whether the use of the going concern basis is appropriate in preparing these financial statements.

In making this assessment, the Governors have considered the College’s current financial position, cash flow forecasts, and the level of reserves held. The Governors have also reviewed projected pupil numbers, fee income, and the potential impact of economic conditions on the College’s operations. They recognise ongoing economic uncertainty, including inflationary pressures and potential impacts on enrolment. While these factors may affect future performance, the Governors are satisfied that appropriate plans and contingencies are in place to manage these risks.

The College continues to have a full pupil roll and a large capital investment was made during the year in order to expand the College to accomodate a pupil increase of 50 pupils in the senior school. This increase was granted and the College is once again full to capacity.

Cash flow forecasts prepared for a period of at least twelve months from the date of approval of these financial statements indicate that the College will have adequate resources to meet its liabilities as they fall due with the bank support in place. This is based on the Governors’ assessment of the likelihood of the bank overdraft facility that expires in September 2026 being renewed. The governors consider it more probable than not that the facility will be renewed based on written correspondence with the bank and past history of overdraft extensions being provided.

The Governors have considered sensitivities in the forecasts, including potential fluctuations in pupil numbers and increases in operating costs. Mitigating actions available to the College include cost management measures and the ability to adjust expenditure if required.

Based on this assessment, the Governors have concluded that the College has adequate resources to continue in operational existence for the foreseeable future and that the going concern basis is appropriate in preparing the financial statements.

Structure, governance and management

a. Governing Document

The Company is governed by its Memorandum and Articles of Association first issued on 4 December 1896, and filed at Companies House most recently on 29 September 2018.

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SCARBOROUGH COLLEGE LIMITED (A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Structure, governance and management (continued)

b. Governing Body

The Governors, who are also the Charity Trustees, are responsible for the overall management and control of the College and meet four times a year at various sub committees, and four times a year as the full board. The work of implementing their policies is carried out through several governors’ sub committees, The sub committees include a Finance and Management Committee, Education and Welfare Committee, and a Marketing Committee. The Board is a self-appointing body, and directors are elected at a full directors' meeting of the Company. The College Business Manager is responsible for co-ordinating the work of the Governors and their Committees, preparation of papers and management accounts, and the review of matters arising.

c. Governor Recruitment and Training

The Governing body requires breadth and depth of experience to carry out its duties effectively and efficiently. When recruiting new governors, the important attribute is a passion for the work of the College and an understanding of education as a holistic and rounded experience of personal growth. Where possible the governors consider that the skills and experience of the Board should comprise of the following:

• A governor with a legal background.

• A governor with a financial/accounting background.

• A governor with education experience and background.

• A governor with senior managerial or business experience.

• A governor with HR/employment law experience.

• A governor with property/surveying experience.

On appointment, new Governors are inducted into the workings of the Board and their responsibilities as directors, charity trustees and school governors. The Charity has no formal Governor training procedures in place. However, Governors are encouraged to attend training courses and seminars run by AGBIS (The Association of Governing Bodies of Independent Schools). Additionally, governors are encouraged to take a full part in the activities of the College including attendance at concerts and sports events, plus time in the classroom observing lessons.

d. Other Relationships

The Headmaster is a member of the Society of Heads and HMC, attending the society’s conferences which are an opportunity to share expertise, knowledge and experience across the independent school sector. The conferences also permit appropriate representation to Government and regulators of the views of the sector. The College is also a member of IAPS and BSA, whilst also holding IB World School status.

The Business Manager is a Board member and Vice Chair of the Independent Schools Bursars Association.

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SCARBOROUGH COLLEGE LIMITED (A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Structure, governance and management (continued)

e. Organisational Management

The Governors and Trustees meet as a Board at least four times a year (October, December, March and June) to determine the general policy of the Company and review the overall management and control, for which they are legally responsible. The work of implementing most of their policies is carried out by the Senior Management Team. The Finance and Management Committee, chaired by Mr G Young, which meets regularly prior to each meeting of the full Governing Board, and on other occasions when necessary to regulate the administration of the College. The other principal committee is the Education and Welfare Committee, which as its title indicates, focuses on matters relating to education/curriculum and welfare.

The Governors determine the general policy of the College but the day to day running of the College is delegated to the Headmaster, supported by the Senior Management Team. The Headmaster undertakes the key leadership role overseeing educational, pastoral and administrative functions in consultation with the senior staff. The day to day administration of both the Prep and Senior schools is undertaken within the policies and procedures approved by the Governors which provide for only significant expenditure decisions and major capital projects to be referred to the Governors for prior approval. The approval process is detailed within the Financial Regulations of the College.

The Headmaster oversees the recruitment of all educational staff, whilst, under delegated authority, the Business Manager oversees the recruitment of administrative and non-teaching support staff. The Headmaster, Head of the Prep School and Business Manager attend Governors' meetings.

f. Related party relationships

None of the Governors received remuneration or other benefits from their work with the College. Any contractual relationships must be disclosed, and notes of interest are retained in written form.

One of the Governors, Mr R Guthrie, is a Director and person with significant control of Broadland Properties Limited. During the year a sum of £60,000 (2024: £60,000) was paid to Broadland Properties for property rental on an arm's length basis.

Three Governors had children enrolled in the College during the year with fees payable at normal published rates, with discounts and scholarships applied which are available to all parents, totalling £58,784 (2024: £70,160). This does not affect their capability to make independent and fair decisions but, if there is a specific situation where there may be conflicted interests, Governors will remove themselves from meetings.

An element of Bramcote Sports Centre has been leased to Bramcote Athletics Ltd, Richard Guthrie, Governor of Scarborough College Ltd, is a Director of this company, on a long lease, with approval by the Charities Commission.

g. Key Management Personnel

The Governors consider that they, together with the Headmaster, the Business Manager and the Prep School Headmaster comprise the key management personnel (see note 14 to the accounts). The Governors give up their time freely and the pay and the remuneration of the Headmaster and senior staff is set by the Board and is kept under annual review.

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SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Structure, governance and management (continued)

h. Pay policy for senior staff

The Company operates banded salary ranges for all staff including senior staff. The banded ranges are benchmarked against those of other independent schools. This allows the Company to remain an attractive employer in the independent school sector.

The bands are reviewed annually and generally an inflationary increase is applied. This is dependent upon the financial success of the Company and increases being offered in similar schools. Progression within the bands is based upon performance for all levels of staff.

i. Risk management

The Governors and the Board of Scarborough College, with assistance from the College Finance and Management Committee, have examined the principal areas of the College's operations and have considered the major areas of strategic, operational, and business risk which the College faces. The Directors actively review the major risks that may arise on a regular basis, as well as the systems and procedures established to manage them, ensuring that those risks already identified can be mitigated. All the identified risks are contained within the College Risk Management Summary.

The Members of the Company guarantee to contribute an amount not exceeding £1 to the assets of the Company in the event of winding up.

Page 13

SCARBOROUGH COLLEGE LIMITED {Acompany limlled by guarantee GOVERNORS. REPORT (CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2025 Dl$¢losure of Inforniatlon to audlto Each of the persorts are Govern￿5 at the lime ￿en this Govgmors, re￿rt Is approved has confirmed that.. so far as that Governor is aVffj￿. trere relevant awjit informatTron of which Ih@ d)8riVs auditors are unaware, and that Governor has tsk8n all the steps that ought to hav& been taken a Govemor in Lyder io be aware of any rèlevant audtt ll)frym81ion and to establish that the chariws audit￿ are aware of that infomiation. ALvJttors Th8 auditors, Armstr(mg Watson Audit Limited, have indicated their wmingness to continue in office. The designatsd Trustsas will prw)se a mOtic￿ reaptmynb.ng the auditors at a meeting of the Trustees. Approved by order of the members of the t￿ of Govern¢ys and signed on thèir behalf by. Mr A Green Governor Page 14

SCARBOR<XIGH COLLEGE UMrrED (A company Ilmitod by guarant••) STATEMEKf OF GOVERNORS RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2025 The Governors (who are aL%o the directys of Ihe Company for the purrK)ses of ci)mpany law) are responsibl8 for preparing the Governors. report including Strategic repwt and the financial statements in accoryjance with applicable law and United Kwlom Accounlirwj Stand8rds {United lfjngclom Genor811y Acceptèd Accounting Practice). Company law requires the Govenmxs to prepa￿ frywicial staiemants for each financial . Under ￿MpanY law, th8 Govemors musl not approv8 the ffinancaal statements unl8ss they are satisfied that they give a true and fair ew of the slate of affairs of the Company and of its incc￿lng resourc8s and application of resources, including its In￿me and expenditure, for that periLMt. In preparing tr*se financial statements. the Govemor5 ar8 required to.. select suitable actsjunling policres arvj Ihen apply Ihem consislenljy. observe the methLxJs and principles of the Charities SORP IFRS 102)" make judgmènts and accountirKJ esb"mates thal are reasonable 8Th1 prudent", Slate whether ap￿ICable UK Accountiry Stsndards (FRS 1021 have teen folkAYe(l. Sk￿1￿1 to any material departures disclosed and eXplan￿j in the financial ststements: prepa￿ the fIna￿[al statements cffi tho g)ing ￿)nt￿ ba&s unl8ss it inappropriate to presume that th8 Company wll conknue in tr￿IneSs. The Govemors are respon￿ble for keeping adequate accounting records that are sufficient lo show and exp18in the Companys transactions and disclose tmlh reasonable accuracy at any tirne the financial positic￿ of the Comp8ny and enable thern to ensurè that the fina￿al ststements (x)mply with the Companies A¢1 2006. They arg also responsible fc￿ safeguarding the assets of the Comp8ny and hence for tskin9 reasonabl8 St8p$ for thè prevention and detection of fraud arKI other irregularities. Approved by order ofthe members ofthe board of [kn8￿r$ aThJ signed on rts behaff ty. MrAGrnen Govemor Date.. Pag9 15

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCARBOROUGH COLLEGE LIMITED

Opinion

We have audited the financial statements of Scarborough College Limited (the 'charitable company') for the year ended 31 August 2025 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 August 2025 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Governors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Governors with respect to going concern are described in the relevant sections of this report.

Page 16

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCARBOROUGH COLLEGE LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Governors are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Governors' report for the financial year for which the financial statements are prepared is consistent with the financial statements.

• the Governors' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Governors' report including the Strategic report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of Governors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of governors

As explained more fully in the Governors' responsibilities statement, the Governors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Governors are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 17

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCARBOROUGH COLLEGE LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the charitable company through discussions with governors, and other management and review of appropriate industry knowledge;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non compliance throughout the audit.

We assessed the susceptibility of the charitable company financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation; and

• enquiring of management as to actual and potential litigation and claims.

Page 18

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCARBOROUGH COLLEGE LIMITED (CONTINUED)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, 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.

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Huw Nicholls (Senior statutory auditor) for and on behalf of

Armstrong Watson Audit Limited Chartered Accountants & Statutory Auditors Leeds

Date: 26/05/2026

Page 19

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2025

Note Income and endowments from: Donations and legacies 4 Charitable activities 5 Other trading activities 6 Investments 7 Other income 8 Total income and endowments Expenditure on: Raising funds 9 Charitable activities 10 Total expenditure Net (expenditure)/income Transfer/revaluation 22 Net movement in funds before other recognised gains/(losses) Other recognised gains/(losses): Actuarial loss on defined benefit pension schemes 29 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	Unrestricted funds 2025 £ 4,004 8,193,713 353,715 39,371 4,284 8,595,087 599,301 8,405,577 9,004,878 (409,791) 125,000 (284,791) (348,001) (632,792) 3,200,712 (632,792) 2,567,920	Restricted funds 2025 £ 125,000 132,694 - - - 257,694 - 133,056 133,056 124,638 (125,000) (362) - (362) 74,989 (362) 74,627	Endowment funds 2025 £ - - - - - - - - - - - - - - 102 - 102	Total funds 2025 £ 129,004 8,326,407 353,715 39,371 4,284 8,852,781 599,301 8,538,633 9,137,934 (285,153) - (285,153) (348,001) (633,154) 3,275,803 (633,154) 2,642,649	As restated Total funds 2024 £ 333,797 8,462,564 341,370 10,178 3,350 9,151,259 565,215 8,497,478 9,062,693 88,566 - 88,566 (11,091) 77,475 3,198,328 77,475 3,275,803

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 24 to 52 form part of these financial statements.

Page 20

SCARBOROUGH COLLEGE LIMITED (A company limited by guarantee) REGISTERED NUMBER: 00050404

BALANCE SHEET AS AT 31 AUGUST 2025

Note Fixed assets Intangible assets 15 Tangible assets 16 Current assets Debtors 17 Cash at bank and in hand Current liabilities Creditors: amounts falling due within one year 18 Net current liabilities Total assets less current liabilities Creditors: amounts falling due after more than one year 19 Provisions for liabilities 20 Total net assets Endowment funds 22 Restricted funds: Peggy Bailey Legacy 22 Early Years 22 Cricket Pavilion Fund 22 Total restricted funds 22 Unrestricted funds Called up share capital 22 General funds 22 Revaluation reserve Total unrestricted funds 22 Total funds	688,380 631,712 1,320,092 (6,947,900) 73,470 57 1,100 5,507 1,884,324 678,089	2025 £ 29,817 10,868,508 10,898,325 (5,627,808) 5,270,517 (1,994,913) (632,955) 2,642,649 102 74,627 2,567,920 2,642,649	4,943,112 2,513,528 7,456,640 (9,854,786) 73,470 419 1,100 5,507 2,517,116 678,089	2024 £ 10,242 9,527,312 9,537,554 (2,398,146) 7,139,408 (3,578,651) (284,954) 3,275,803 102 74,989 3,200,712 3,275,803

Page 21

SCARBOROUGH COLLEGE UMrrED (A ¢ompany limited by guarant￿) REGISTERED NLIM8ER: (K1051)404 BALANCE SHEEf (CONTINUED) AT 31 AUGUST 2025 The Govemor5 acknowjedgg Ihwr ￿￿Si￿"11t1eS for complyrg T•￿ the requirements of the Act with respèct to accounting re￿rdS and preparaticm of financial statements. The f￿ancIal ststements knere apwoved and aulhorised kn issue by the (&w8mors and signed on their behalf by.. MrAGroen Gov8mor The notes on pages 24 to 52 form part of tt*se financiJ statements. Page 22

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2025

Note Cash flows from operating activities Net cash generated in operating activities 25 Cash flows from investing activities Interest received Purchase of intangible assets Purchase of tangible fixed assets Net cash used in investing activities Cash flows from financing activities Loan repayments Capital repayments Interest paid New loans Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 26	2025 £ (379,604) 39,371 (30,000) (2,148,948) (2,139,577) (156,919) - (227,221) 1,021,505 637,365 (1,881,816) 2,513,528 631,712	2024 £ 2,336,643 10,178 - (798,259) (788,081) (89,216) (120) (148,245) 316,870 79,289 1,627,851 885,677 2,513,528

The notes on pages 24 to 52 form part of these financial statements

Page 23

SCARBOROUGH COLLEGE LIMITED (A company limited by guarantee)

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

1. General information

Scarborough College Limited ("the Company") is a private limited company incorporated in England. The address of the Company's registered office and principal place of business is Scarborough College, Filey Road, Scarborough, North Yorkshire, YO11 3BA.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)',Financial Reporting Standard 102 'the Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

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

Page 24

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

2. Accounting policies (continued)

2.2 Going concern

Along with all independent schools in the United Kingdom, the College is impacted by changes the Government introduced to bring school fees within the scope of standard rated Value Added Tax on with effect from 1 January 2025. In addition, the Government removed the charitable relief for business rates from April 2025 and increased the employers National Insurance charges. These changes have increased the administrative costs for all providers of independent education including the College. The Governors undertook significant planning in anticipation of the VAT changes and have mitigated the impact of the increases in administrative costs by increasing the fees charged, whilst keeping increases in fees as small as possible.

The Governors have assessed whether the use of the going concern basis is appropriate in preparing these financial statements.

In making this assessment, the Governors have considered the College’s current financial position, cash flow forecasts, and the level of reserves held. The Governors have also reviewed projected pupil numbers, fee income, and the potential impact of economic conditions on the College’s operations. They recognise ongoing economic uncertainty, including inflationary pressures and potential impacts on enrolment. While these factors may affect future performance, the Governors are satisfied that appropriate plans and contingencies are in place to manage these risks.

The College continues to have a full pupil roll and a large capital investment was made during the year in order to expand the College to accomodate a pupil increase of 50 pupils in the senior School. This increase was granted and the College is once again full to capacity.

Cash flow forecasts prepared for a period of at least twelve months from the date of approval of these financial statements indicate that the College will have adequate resources to meet its liabilities as they fall due with the bank support in place. This is based on the Governors’ assessment of the likelihood of the bank overdraft facility that expires in September 2026 being renewed. The governors consider it more probable than not that the facility will be renewed based on written correspondence with the bank and past history of overdraft extensions being provided.

The Governors have considered sensitivities in the forecasts, including potential fluctuations in pupil numbers and increases in operating costs. Mitigating actions available to the College include cost management measures and the ability to adjust expenditure if required.

Based on this assessment, the Governors have concluded that the College has adequate resources to continue in operational existence for the foreseeable future and that the going concern basis is appropriate in preparing the financial statements.

Page 25

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

2. Accounting policies (continued)

2.3 Income

Fees receivable, and charges for services and use of the premises, are accounted for in the academic year in which the service is provided. Fees receivable are after deduction of bursaries and allowances. Where fees are received in advance they are deferred until the criteria for income recognition are met. Donations and other income are included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Income is stated excluding VAT.

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

Legacies

Entitlement is when income is probable and measurable. A legacy receipt is normally probable when there has been a grant of probate, executors have established that there are sufficient assets, and any conditions attached to the legacy are in control of or met by the charity. A legacy is measurable when it can be measured or estimated with sufficient reliability.

Grants receivable

Grant income is recognised once both the income recognition criteria and terms and conditions attached to the grant are met. Grants receivable as compensation for expenses or losses already incurred, or for the purpose of receiving immediate financial support are recognised in other operating income in the period in which they become receivable.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure accounted for on an accruals basis is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs that contribute to more than one activity and support costs that are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

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

Expenditure on charitable activities is incurred on directly undertaking the activities that further the Company's objectives, as well as any associated support costs.

Page 26

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

2. Accounting policies (continued)

2.4 Expenditure (continued)

Allocation of Support Costs

Support costs are those functions that assist the work of the Company but do not directly undertake charitable activity. Support costs include the costs of office salaries and governance costs which support the Company in the provision of education. The bases on which support costs have been allocated are set out in note 11.

2.5 Intangible assets and amortisation

Intangible assets comprise of a marketing film and website development costs, both of which are being amortised over their useful estimated lives of five years. Website development costs are capitalised on the basis that they meet the recognition criteria of an asset, namely that future economic benefits will flow to the entity.

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life within expenditure on charitable activities heading within the Statement of Financial Activities.

The estimated useful lives are as follows:

Marketing film - 5 years Website Development Costs - 5 years

2.6 Tangible fixed assets and depreciation

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

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

Depreciation is provided on the following bases:

Freehold property - Valuation model Short-term leasehold property - Over the term of the lease Motor rollers and mowers - 20% Straight line - Fixtures and fittings 2%, 5%, 10%, 20% and 33% straight line - Computer equipment 20% and 33% Straight line

Each financial year the Governors review the treatment of each class of asset during that year.

The valuation model is used to determine the appropriate net book value of freehold property in the accounts, with the Governors determining if there are any factors that indicate a requirement for impairment each year.

There is no specific capitalisation threshold for tangible fixed assets. Impairment reviews are undertaken annually for freehold land and buildings and for other assets when there is indication an asset may be impaired.

Page 27

SCARBOROUGH COLLEGE LIMITED (A company limited by guarantee)

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

2. Accounting policies (continued)

2.7 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.8 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.9 Liabilities

Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.10 Financial instruments

The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.11 Finance leases and hire purchase

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Company. Obligations under such agreements are included in creditors, net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Financial Activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

2.12 Pensions

The Company participates and where necessary contributes into the Independent Schools' Pension defined benefit schemes at rates set by the schemes' actuaries. The scheme is a multi-employer pension scheme, as a result of which it is neither possible nor appropriate to identify the assets and liabilities of the scheme which are attributable to the Company. Contributions are charged in the financial statements in the period when they fall due. When the scheme is in deficit and where the Company has agreed to a deficit funding arrangement, the Company recognises a liability for this obligation.

The Company operates a defined benefits pension scheme and the pension charge is based on a full actuarial valuation dated 30 September 2023.

Page 28

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

2. Accounting policies (continued)

2.13 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Governors in furtherance of the general objectives of the Company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Governors for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Endowment funds are a prize giving fund, and represents monies held for the endowment of a prize.

Page 29

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

3. Critical accounting estimates and areas of judgment

The preparation of these financial statements require management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.

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

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a heightened risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

Bad Debt Provision

The Charity makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the ageing profile of debtors and historical experience. See note 17 for the net carrying amount of the debtors and associated impairment provision if applicable.

Provision against liabilities

Provisions are recognised when there is a present obligation as a result of a past event, where transfer of economic benefits is probable to settle the obligation and this can be reliably measured. The entity makes use of available relevant legal expertise to establish whether quantum can be reliably measured in such cases. Based on this information, the Company makes a provision based on the best estimate of the amount potentially required to settle the obligation including costs, taking into account the time value of money where material.

The Governors do not consider that any other judgements, estimates and assumptions used in the preparation of these financial statements have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Pension Liability

The Company has an obligation to pay benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the Statement of Financial Position. The assumptions reflect historical experience and current trends. See note 29 for the disclosures relating to the pension scheme.

Page 30

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

4. Income from donations and legacies

Unrestricted funds 2025 £ Donations 4,004 Unrestricted funds 2024 £ Donations 130,815 Income from charitable activities Unrestricted funds 2025 £ Fees generated from the provision of education 8,193,713 As restated Unrestricted funds 2024 £ Fees generated from the provision of education 8,333,493	Restricted funds 2025 £ 125,000 Restricted funds 2024 £ 202,982 Restricted funds 2025 £ 132,694 Restricted funds 2024 £ 129,071	Total funds 2025 £ 129,004
		Total funds 2024 £ 333,797
		Total funds 2025 £ 8,326,407
		As restated Total funds 2024 £ 8,462,564

5. Income from charitable activities

The income from school fees was £8,326,407 (2024 restated: £8,462,564) of which of £8,193,713 (2024: restated £8,333,493) was unrestricted and £132,694 (2024: £129,071) was restricted. Included within restricted funds is early years funding to fund early years education of pupils aged between 3 and 5 years old.

Page 31

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

6. Income from other trading activities

Income from non charitable trading activities

Unrestricted funds 2025 £ Other trading income 101,586 School holiday and hiring income 47,567 Special educational needs income 37,289 Bus income 167,273 353,715 Unrestricted funds 2024 £ Other trading income 61,847 School holiday and hiring income 25,005 Special educational needs income 89,398 Bus income 165,120 341,370	Total funds 2025 £ 101,586 47,567 37,289 167,273 353,715
	Total funds 2024 £ 61,847 25,005 89,398 165,120 341,370

Page 32

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

7. Investment income

Unrestricted funds 2025 £ Deposit account interest 39,371 Unrestricted funds 2024 £ Deposit account interest 10,178	Total funds 2025 £ 39,371
	Total funds 2024 £ 10,178

8. Other incoming resources

Insurance claims Insurance claims Bad debts recovered	Unrestricted funds 2025 £ 4,284 Unrestricted funds 2024 £ 2,214 1,136 3,350	Total funds 2025 £ 4,284
		Total funds 2024 £ 2,214 1,136 3,350

Page 33

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

9. Expenditure on raising funds

Fundraising trading expenses

Unrestricted funds 2025 £ Loan interest 224,888 Bank charges 25,346 Agent commission 348,668 Bad debts 399 599,301 Unrestricted funds 2024 £ Loan interest 148,245 Bank charges 27,996 Agent commission 385,218 Debt collection fees 3,756 565,215	Total funds 2025 £ 224,888 25,346 348,668 399 599,301
	Total funds 2024 £ 148,245 27,996 385,218 3,756 565,215

Page 34

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

10. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted funds 2025 £ Provision of education 8,405,577 As restated Unrestricted funds 2024 £ Provision of education 8,368,433 Analysis of expenditure by activities Activities undertaken directly 2025 £ Provision of education 7,202,866 As restated Activities undertaken directly 2024 £ Provision of education 7,206,233	Restricted funds 2025 £ 133,056 Restricted funds 2024 £ 129,045 Support costs 2025 £ 1,335,767 Support costs 2024 £ 1,291,245	Total 2025 £ 8,538,633
		As restated Total 2024 £ 8,497,478
		Total funds 2025 £ 8,538,633
		As restated Total funds 2024 £ 8,497,478

11. Analysis of expenditure by activities

Page 35

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

11. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs Depreciation Staff superannuation Auditors remuneration for non audit work Telephone Auditor remuneration Postage Vehicles Advertising HR Services Governors indemnity insurance Amortisation Legal and professional fees 12. Auditors' remuneration Fees payable to the Company's auditor for the audit of the Company's annual accounts Fees payable to the Company's auditor in respect of: All non-audit services not included above	Total funds 2025 £ 640,978 23,500 87,126 3,000 46,618 22,000 91,754 149,767 182,377 24,429 3,594 10,426 50,198 1,335,767 2025 £ 22,000 3,000	Total funds 2024 £ 628,557 13,992 29,548 2,500 33,854 18,240 99,957 151,266 209,422 24,429 3,594 11,031 64,855 1,291,245
		2024 £ 18,240 2,500

Page 36

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

13. Staff costs

Wages and salaries Social security costs Cost of defined contribution pension scheme	2025 £ 4,168,707 463,652 557,775 5,190,134	2024 £ 4,204,518 384,934 453,282
		5,042,734

Pension costs are allocated to activities in proportion to the related staffing costs incurred and are wholly charged to unrestricted funds.

The key management personnel of the Company comprise the Governors, the Headmaster, the Headmaster of the Prep School and the Business Manager. The total employee benefits, including employer pension contributions, of the key management personnel of the Company were £534,812 (2024: £469,152).

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

Tuition Administration and services	2025 No. 90 57 147	2024 No. 89 57
		146

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

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

14. Governors' remuneration and expenses

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

During the year ended 31 August 2025, no Governor expenses have been incurred (2024 - £NIL).

Page 37

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

15. Intangible assets

Cost At 1 September 2024 Additions At 31 August 2025 Amortisation At 1 September 2024 Charge for the year At 31 August 2025 Net book value At 31 August 2025 At 31 August 2024	Marketing Film £ 50,179 - 50,179 40,758 6,104 46,862 3,317 9,421	Website Development Costs £ 24,635 30,000 54,635 23,814 4,321 28,135 26,500 821	Total £ 74,814 30,000 104,814
			64,572 10,425 74,997
			29,817
			10,242

Page 38

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

16. Tangible fixed assets

Cost or valuation At 1 September 2024 Additions VAT reclaimed At 31 August 2025 Depreciation At 1 September 2024 Charge for the year At 31 August 2025 Net book value At 31 August 2025 At 31 August 2024	Freehold property £ 7,230,675 1,042,187 (209,898) 8,062,964 - - - 8,062,964 7,230,675	Long-term leasehold property Assets under construction £ £ 88,461 176,045 - 652,296 - - 88,461 828,341 34,011 - 6,226 - 40,237 - 48,224 828,341 54,450 176,045	Fixtures and fittings £ 6,047,327 454,465 (201,265) 6,300,527 3,981,185 390,363 4,371,548 1,928,979 2,066,142	Total £ 13,542,508 2,148,948 (411,163) 15,280,293 4,015,196 396,589 4,411,785 10,868,508 9,527,312

The Company has incurred input VAT in previous periods on capital expenditure relating to the building of a boarding house, Weaponness House. Now that the Company is registered for VAT, this expenditure falls within the scope of the Capital Goods Scheme. However, under the conditions of the scheme, the Company is limited to claiming a maximum of 10% of the VAT each year. Based on the success of previous VAT reclaim and expected future use, we are comfortable that the likelihood of future reclaims meets the definition of virtually certain, so it is appropriate to recognise a debtor for the reclaim of the full VAT expenditure, approximately £209,898.

Page 39

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

17. Debtors

Due after more than one year Trade debtors VAT debtor Due within one year Trade debtors Other debtors Prepayments and accrued income VAT debtor	2025 £ 49,430 157,424 206,854 41,056 57,665 330,331 52,475 688,381	2024 £ 66,707 -
		66,707 4,603,627 67,300 205,478 -
		4,943,112

The VAT debtors relate to the future reclaim of VAT on previously incurred capital expenditure, as discussed in note 16.

Page 40

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

18. Creditors: Amounts falling due within one year

Bank loans Trade creditors Other taxation and social security Obligations under finance lease and hire purchase contracts Other creditors Accruals and deferred income	2025 £ 2,051,744 1,030,235 327,451 120 781,813 2,756,537 6,947,900	2024 £ 149,823 412,859 93,086 120 822,022 8,376,876
		9,854,786

Deferred income comprises school fees paid in advance for the next school year. The balance included within creditors relates to amounts deferred during the reporting period of £2,205,882 (2024: £8,330,406), with amounts being released to the Statement of Financial Activities of £6,124,524 (2024: £8,023,905).

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

Bank loans Net obligations under finance lease and hire purchase contracts Accruals and deferred income	2025 £ 1,623,684 1,440 369,789 1,994,913	2024 £ 2,661,016 1,440 916,195
		3,578,651

Bank borrowings at the year end total £3,675,428 (2024: 2,810,839). The original bank loan is repayable in 300 consecutive monthly instalments representing principal and interest, which commenced in May 2016. The rate of interest payable on the loan is Base Rate plus 4.2% per annum. The loan matures in 2041.

Further loan advances were obtained for the re-development of Weaponness House, which are repayable in 288 consecutive monthly instalments representing principal and interest and repayments commenced in April 2019. The rate of the interest payable on this loan is fixed at 4.52% per annum and it matures in 2043. There was a breach of loan covenants in the period on this loan. The provider has indicated that the they are expecting to waive the covenant breach. However, since the indication of the waiver was received after the balance sheet date, the entire loan balance has been classified as due within one year.

A new loan was obtained in the year for the develoment of White Lodge. This is repayable in 300 consecutive monthly instalments representing principal and interest. Repayments commenced in December 2024. The rate of the interest payable on this loan is fixed at 3.5% over the base rate per annum and matures in 2049.

Deferred income comprises school fees paid in advance for school years after 2025/26.

Page 41

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

Included within the above are amounts falling due as follows:

Between one and two years Bank loans Between two and five years Bank loans Over five years Bank loans	2025 £ 118,286 195,878 1,309,520	2024 £ 159,726
		413,941
		2,087,349

20. Provisions

At 1 September 2024 Amounts charged to the SOFA	Pension provision £ 284,954 348,001
	632,955

21. Prior year adjustment

Following a reanalysis in the year, agent commissions payable has been rellocated to expenditure instead of being netted off against income. This has resulted in an adjustment to increase unrestricted fundraising costs and unrestricted charitable activity income by £385,219. There is no effect on the previously reported surplus or funds as at the previous balance sheet date.

Page 42

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

22. Statement of funds

Statement of funds - current year

Unrestricted funds Called up share capital Called up share capital General funds General Funds Revaluation reserve Total Unrestricted funds Endowment funds Endowment Funds - all funds Restricted funds Peggy Bailey Legacy Early Years Cricket Pavillion Fund Cricket Nets Total of funds	Balance at 1 September 2024 £ 5,507 2,517,116 678,089 3,195,205 3,200,712 102 73,470 419 1,100 - 74,989 3,275,803	Income £ - 8,595,087 - 8,595,087 8,595,087 - - 132,694 - 125,000 257,694 8,852,781	Expenditure £ - (9,004,878) - (9,004,878) (9,004,878) - - (133,056) - - (133,056) (9,137,934)	Transfer £ - 125,000 - 125,000 125,000 - - - - (125,000) (125,000) -	Gains/ (Losses) £ - (348,001) - (348,001) (348,001) - - - - - - (348,001)	Balance at 31 August 2025 £ 5,507
						1,884,324 678,089 2,562,413
						2,567,920
						102
						73,470 57 1,100 - 74,627
						2,642,649

Page 43

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

22. Statement of funds (continued)

The endowment fund is a prize giving fund, and represents monies held for the endowment of a prize.

The Peggy Bailey Legacy fund represents monies donated to the Company restricted to the endowment of an award, prize or scholarship for students.

The Early Years fund represents Government funding received for the education of pupils aged 3 to 5 years.

The Cricket Pavilion Fund represents monies donated to the Company towards the cost of rebuilding a new pavilion within the grounds of the Company, following a fire which completely destroyed the previous building.

The Cricket nets fund relates to a donation received a parent in order to fund the construction of cricket nets on the school site. All of the money had been spent by the balance sheet date.

Page 44

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

22. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds Called up share capital Called up share capital General funds General Funds - all funds Revaluation reserve Total Unrestricted funds Endowment funds Endowment Funds - all funds Restricted funds Peggy Bailey Legacy Early Years Cricket Pavillion Fund	Balance at 1 September 2023 £ 5,507 2,439,667 678,089 3,117,756 3,123,263 102 73,470 393 1,100 74,963	As restated Income £ - 8,433,988 - 8,433,988 8,433,988 - - 129,071 - 129,071	Expenditure £ - (8,548,430) - (8,548,430) (8,548,430) - - (129,045) - (129,045)	Transfers in/out £ - 202,982 - 202,982 202,982 - - - - -	Gains/ (Losses) £ - (11,091) - (11,091) (11,091) - - - - -	Balance at 31 August 2024 £ 5,507
						2,517,116 678,089 3,195,205
						3,200,712
						102
						73,470 419 1,100 74,989

Page 45

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

22. Statement of funds (continued)

Restricted fixed asset funds

Restricted fixed asset funds
Cafe extension Total Restricted funds Total of funds	- 74,963 3,198,328	202,982 332,053 8,766,041	- (129,045) (8,677,475)	(202,982) (202,982) -	- - (11,091)	-
						74,989
						3,275,803

Page 46

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

23. Summary of funds

Summary of funds - current year

Designated funds General funds Endowment funds Restricted funds	Balance at 1 September 2024 £ 5,507 3,195,205 102 74,989 3,275,803	Income £ - 8,595,087 - 257,694 8,852,781 As restated Income £ - 8,433,988 - 129,071 202,982 8,766,041	Expenditure £ - (9,004,878) - (133,056) (9,137,934) Expenditure £ - (8,548,430) - (129,045) - (8,677,475)	Transfers in/out £ - 125,000 - (125,000) - Transfers in/out £ - 202,982 - - (202,982) -	Gains/ (Losses) £ - (348,001) - - (348,001) Gains/ (Losses) £ - (11,091) - - - (11,091)	Balance at 31 August 2025 £ 5,507 2,562,413 102 74,627 2,642,649
						Balance at 31 August 2024 £ 5,507 3,195,205 102 74,989 - 3,275,803
Summary of funds - prior year
Designated funds General funds Endowment funds Restricted funds Restricted fixed asset funds	Balance at 1 September 2023 £ 5,507 3,117,756 102 74,963 - 3,198,328

Page 47

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

24. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted funds 2025 £ Tangible fixed assets 11,078,406 Intangible fixed assets 29,817 Debtors due after more than one year 49,430 Current assets 986,035 Creditors due within one year (5,073,949) Creditors due in more than one year (3,868,864) Provisions for liabilities and charges (632,955) Total 2,567,920	Restricted funds 2025 £ - - - 74,627 - - - 74,627	Endowment funds 2025 £ - - - 102 - - - 102	Total funds 2025 £ 11,078,406 29,817 49,430 1,060,764 (5,073,949) (3,868,864) (632,955) 2,642,649

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

Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for: Depreciation/amortisation charges Interest received Interest paid (Increase)/ decrease in debtors Increase/ (decrease) in creditors Increase/ (decrease) in provision VAT recovered Defined benefit pension scheme remeasurement Net cash generated by operating activities	2025 £ (285,153) 407,014 (39,371) 227,221 4,464,629 (5,355,213) 348,001 201,265 (348,001) (379,608)	2024 £ 88,566 443,721 (10,178) 148,245 698,485 987,959 (11,033) 1,969 (11,091) 2,336,643

Page 48

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

26. Analysis of cash and cash equivalents

Cash in hand Total cash and cash equivalents	2025 £ 631,712 631,712	2024 £ 2,513,528
		2,513,528

27. Analysis of changes in net debt

Cash at bank and in hand Debt due within 1 year Debt due after 1 year Finance leases	At 1 September 2024 £ 2,513,528 (149,824) (2,661,016) (1,560) (298,872)	Cash flows At 31 August 2025 £ £ (1,881,816) 631,712 (27,969) (177,793) (836,619) (3,497,635) - (1,560) (2,746,404) (3,045,276)

28. Called up share capital

There are 5,507 Ordinary shares of £1 each which have been allotted, called up and fully paid (2024 same).

Shares carry equal voting rights and each class of share also ranks equally in regard to distributions, including distributions arising from a winding up of the Company.

29. Pension commitments

The Company, together with many other independent schools, operates a contributory plan providing defined benefits based on final pensionable pay for its employees. The assets of the plans are held separately from those of the Company. They also operate three defined contribution schemes.

Contributions to three schemes during the year were based on the following percentages of salary:-

	Employer	Employee	Total
Independent Schools' Pension Scheme	8%	8%	16%
Aviva Pension Scheme	16.4%	7.4% - 11,7%	23.8% - 28.1%
People's Pension.	3%	5%	8%

The defined benefit pension scheme is a multi-employer pension scheme. As a result of which it is neither possible nor appropriate to identify the assets and liabilities of the schemes which are attributable to the Company. Accordingly the Company has accounted for its contributions as if they were defined contribution schemes.

Page 49

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

29. Pension commitments (continued)

Independent Schools' Pension Scheme

The Company participates in the scheme, which is a multi- employer scheme, and provides benefits to some 51 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the Company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore, the Company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2023. This actuarial valuation was certified on 11 December 2024 and showed assets of £99.2m, liabilities of £151.5m and a deficit of £52.3m. To eliminate this funding shortfall, the Governors and the participating employers have agreed that additional contributions will be paid, in combination from all employers to the scheme as follows:

Deficit Contributions

From 1 September 2025 to 30 January 2034: £6,000,000 per annum

(payable monthly and increasing by 3% on each 1st September)

Note that the scheme's previous valuation was carried out with an effective date of 30 September 2020. This valuation showed assets of £201.1m, liabilities of £256.3m and a deficit of £55.2m. To eliminate this funding shortfall, the Pension Scheme Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit Contributions

From 1 September 2022 to 30 June 2032: £2,687,000 per annum (payable monthly and increasing by 3% on each 1st September)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.

Where the scheme is in deficit and where the Company has agreed to a deficit funding arrangement, the Company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Page 50

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

Income and Expenditure Impact Interest expense Remeasurements - amendments to the contribution schedule	2025 £ 12,429 374,792 387,221	2024 £ 13,690 (18,245) (4,555)

Assumptions

The discount rates shown below are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

	31 August 2025	31 August 2024	31 August 2023
Discount rate (% per annum)	4.79	4.68	5.79

30. Operating lease commitments

At 31 August 2025 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Non-cancellable operating leases Within one year Between one and five years In more than five years	2025 £ 187,827 422,908 210,756 821,491	2024 £ 321,619 542,523 249,154
		1,113,296

31. Finance lease commitments

Minimum lease payments under hire purchase fall due as follows:

Within one year Between one and five years In more than five years	2025 £ 120 480 1,080 1,680	2024 £ 120 480 1,080 1,680

Page 51

SCARBOROUGH COLLEGE LIMITED

(A company limited by guarantee)

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

32. Related party transactions

During the year the Company leased a property, on an arm's length basis from Broadland Properties Limited, for £60,000 (2024: £60,000). Mr R Guthrie (a director of Scarborough College Limited), is a Director and person with significant control of Broadland Properties Limited.

Three Governors had children enrolled in the Company during the year with fees payable at normal published rates, with discounts and scholarships applied which are available to all parents, totalling £58,784 (2024: £70,160).

An element of Bramcote Sports Centre has been leased to Bramcote Athletics on a long lease, with approval by the Charities Commission. Related costs during the year include a recharge of staff costs from Bramcote Athletic Ltd to the College of £17,127 (2024: £24,209) and the College recharged total costs of £35,857 (2024: £31,550) to Bramcote Athletic Ltd.

The athletics track at the Company's Bramcote site is held as an asset of the company. This asset is leased long term to Bramcote Athletic Ltd of which Richard Guthrie, a Governor of Scarborough College, is a Director of this company.

Page 52