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2025-07-31-accounts

The Manchester Grammar School Foundation

REPORT AND ACCOUNTS

For the year ended 31 July 2025

Registered Charity number: 529909

The Manchester Grammar School Foundation CONTENTS

Page
Trustee’s Report 2
Auditor’s Report 13
Statement of Financial Activities 16
Balance Sheet 17
Cash Flow Statement 18
Accounting Policies 19
Notes to the Financial Statements 24

The Manchester Grammar School Foundation TRUSTEE’S REPORT

The Governors of The Manchester Grammar School (“the School”), present their annual report together with the audited financial statements of the School for the year ended 31 July 2025. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the School’s Trust Deed, the Charities Act 2011 and 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 effective 1 January 2019 (the Charities SORP, FRS102).

The Governors of the School and other administrative information are listed below:

GOVERNORS Co-opted J Barot A W Beardsworth M P H M Bokkerink M C Bolton (Chair) H A Campbell Professor D A Cardwell (Deputy Chair) K Hinduja B H Leigh (Treasurer) J C Luca A H Malik Professor J R W Prag R T Race ** M J Robinson J T Young

Representative

Dr D Barker (University of Manchester)

Ex-Officio

The Dean of Manchester The President of Corpus Christi College, Oxford The Lord Mayor of Manchester

** Attends the Finance and General Purposes Committee, as appropriate, to advise on the School’s investments

CORPORATE TRUSTEE

The Manchester Grammar School Foundation Trustee Limited

HIGH MASTER Dr M A Boulton

ADDRESS

The Manchester Grammar School Old Hall Lane Manchester M13 0XT

BURSAR AND CLERK TO GOVERNORS

G M Batchelor

The School’s professional advisors are as follows:

AUDITOR

RSM UK Audit LLP Ninth Floor, Landmark St Peter’s Square 1 Oxford Street Manchester M1 4PB

INVESTMENT ADVISERS

CCLA 1 Angel Lane London EC4R 3AB

SOLICITORS

DWF LLP 1 Scott Place 2 Hardman Street Manchester M3 3AA

Farrer and Co LLP 66 Lincoln’s Inn Fields London WC2A 3LH

BANKERS

NatWest Bank Plc 19 Market Street Manchester M1 1WR

Page 2

The Manchester Grammar School Foundation TRUSTEE’S REPORT

REFERENCE AND ADMINISTRATIVE INFORMATION

The School is an unincorporated charitable trust, registered charity number 529909. Its official name is The Manchester Grammar School Foundation. The Manchester Grammar School Foundation Trustee Limited (the ‘Trustee’), company number 09156289, is the sole corporate trustee for the School.

All current Governors are listed on page 2 and served throughout the year. The terms of office of Mr Jaideep Barot, Mr Allan Beardsworth, Mr Marcus Bokkerink, Mrs Clare Bolton, Mr Hugh Campbell, Mr Kunal Hinduja, Mr Akeel Malik, Professor Jonathan Prag and Mr Robert Race ended on 31 July 2025 and they were re-elected on 17 September 2025. In addition, Mr Marc Yaffe resigned as a Governor on 25 June 2025. The Governors would like to take this opportunity to thank Mr Yaffe for his valued service to the School.

All Governors are also directors of the Trustee, and serve as directors of the Trustee at the same time as they are Governors of the School. Governors, as referred to throughout this report, serve as representatives of the Trustee in their capacity as directors of that body. The School has purchased insurance to protect Governors and Officers from claims arising from any negligent act, error or omission in good faith occurring whilst on School business. The insurance provides cover up to £10,000,000 on any one claim, and in the aggregate in any one year.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The School is governed by a Trust Deed dated 19 June 2000 which consolidates a number of previous Trust Deeds and has been amended by deeds dated 6 September 2001, 23 June 2004 and 31 July 2014.

Governing Body

The board of Governors currently comprises 14 co-opted Governors, 1 representative Governor and 3 ex–officio Governors. The co-opted and representative Governors are appointed for three year terms.

Recruitment and training of Governors

The board of Governors is a self-appointing body. When a vacancy arises for a co-opted Governor, the Nominations Committee will consider suggestions and invite a suitable candidate to join. The Representative Governor is appointed by The University of Manchester.

New Governors are invited to the School to meet the High Master, Bursar and senior staff. An information pack is provided, which includes details of the School and the Governing Body and relevant advice from the Charity Commission. All Governors are given the opportunity to attend relevant training courses.

Organisational management

The Governors, as representatives of the Trustee, are responsible for the overall management and control of the School and meet at least four times a year. The work of implementing most of their policies is carried out by the Finance and General Purposes Committee which meets before the November, March and June meetings of the full Governing Body. The Committee also meets termly to discuss risk. Other principal committees are the Health and Safety Committee and the Estates Committee which meet on at least a termly basis, and the Nominations Committee and the Remuneration Committee.

The day to day running of the School is delegated to the High Master and the Bursar, supported by other members of the Senior Leadership Team - Head of Junior School, Deputy Head (Pastoral), Deputy Head (Safeguarding), Deputy Head (Academic) and Deputy Head (Teaching and Learning) and the Surmaster (who has responsibility for Cocurricular).

Remuneration policy for key management personnel

The Governors consider that the key management personnel of the School are the High Master and the Senior Leadership Team. The Remuneration Committee consisting of the Chair, Deputy Chairman and Treasurer meets annually to review the pay of the High Master. The High Master has responsibility for determining the pay levels of the Senior Leadership Team and reports on his decisions to the Remuneration Committee.

Page 3

The Manchester Grammar School Foundation

TRUSTEE’S REPORT

Relationships

The Manchester Grammar School Foundation Trustee Limited is the sole corporate trustee of the School and its controlling party.

In 1966 M.G.S. Trust, registered charity 526564, was established as a separate charity from The Manchester Grammar School Foundation, to manage funds provided by various donors for the benefit of the School, its pupils and former pupils. The Manchester Grammar School Foundation has no control or influence over M.G.S. Trust with each charity having separate Trustees in position. As disclosed in note 1, the School received bursary funding of £2,674,411 in respect of the year ended 31 July 2025 (2024: £2,601,110) from M.G.S. Trust. No amounts were owed to or from M.G.S. Trust at the year end (2024: £nil).

Principal risks and uncertainties

The Governors, as representatives of the Trustee, are responsible for the management of the risks faced by the School. The School’s risk management strategy includes an annual review of the risks faced by the School, together with the establishment of systems and procedures to mitigate those risks. The Governing Body looks in detail at the principal risks the School faces by reviewing a risk management report produced by the Senior Leadership Team. The report is a working document which sets out all the identified risks to which the School is exposed and is updated regularly as and when new risks are identified or existing risks change. Areas with high retained risk are monitored either by individual Governors such as the Safeguarding Governor, or by committees with Governor representation such as the Finance and General Purposes Committee and Health and Safety Committee. Whilst a detailed review of risks is carried out annually, the management of risk is a feature of every Governing Body meeting with a particular focus on material changes to the School’s identified major risks. The Finance and General Purposes Committee specifically reviews risk at the initial meeting each term.

The key risks identified by the Governors are as follows:

The introduction of VAT on school fees, the loss of charitable business rates relief, and the changes to national insurance contributions for employers have introduced an unprecedented change to the financial position of all independent schools. The approach we have taken to manage these changes includes making cost savings where possible, but in a way that does not affect the education that pupils receive at the School. Whilst some of these costs have inevitably had to be passed on to parents in significant increases in fees inclusive of VAT, we have tried to limit this to what is absolutely necessary. The key approach is to try to ensure that pupils do not have to leave the School due to the changes. This is being done by the School shouldering some of the burden and having available some meanstested hardship funding.

The School is very aware of the risks associated with cybercrime and cyberfraud and has put in place suitable defence strategies including having taken out an insurance policy relating to this area.

Governors continue to monitor the pension schemes and associated costs. Further details relating to pension schemes are set out in note 18.

Charity Governance Code

The Governors are aware of the Charity Governance Code and are using the Charity Commission diagnostic tool to monitor the School’s performance in this area and to make any appropriate adjustments. Four of the co-opted governors have served for more than ten years but their contributions and experience continue to be valued.

Page 4

The Manchester Grammar School Foundation TRUSTEE’S REPORT

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable objects

The School was founded in 1515 by Hugh Oldham, Bishop of Exeter, for the purpose of educating all boys who qualified by nature of their ability, regardless of family circumstances. Maintaining this tradition is central to the culture of the School.

Purpose

The Manchester Grammar School was founded in 1515 ‘to educate the poor boys of Manchester in Godliness and good learning’. Today the School interprets this in the following ways:

Ambition

Priorities

Values

Strategies to achieve the above

Page 5

The Manchester Grammar School Foundation TRUSTEE’S REPORT

Strategies to achieve the above (continued)

Principal activities

The principal activity is the provision of education for boys in the Manchester area. In September 2024 there were 1,657 boys in the School (2023: 1,648).

Grant making policies

Fee assistance is awarded on a means-tested basis, subject to availability of funds. The School also makes awards from various restricted funds, covering, for example, prizes and assistance with school trips. A hardship fund helps with school fees where families’ circumstances change significantly.

Volunteers

Within the School, members of the parents’ society organise a number of events which benefit the whole School community and serve as volunteers at sports and other events. The fundraising activities of the parents’ society provide gifts of equipment for the School which are greatly appreciated. A number of volunteers assist in other areas of the School, for example, by helping within the archive library and by assisting with religious assemblies.

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Operational performance and public benefit

This year the GCSE and ICCSE results were exceptionally strong, with 49% of grades at level 9 and 73% of grades at level 9-8. At A level, 37% of grades were at the A or equivalent level and 93% were A- B or equivalent.

Principal funding sources for the School’s activities comprise fee income and generous donations from M.G.S. Trust and other donors towards fee assistance and other activities.

The School is a Public Benefit Entity. In accordance with the objectives for the year and with due regard to the published Charity Commission guidance on the operation of the public benefit requirement of the Charities Act 2011, the Governors, as representatives of the corporate trustee, have undertaken appropriate activities in furtherance of those aims for the public benefit.

The principal public benefit provided by the School is means-tested fee assistance. In the year ended 31 July 2025, 212 boys benefitted from fee assistance including 30 new starters, 16 in receipt of temporary hardship assistance and 161 of which received 100% fee assistance.

In setting the School’s objectives the Governors have given careful consideration to the Charity Commission’s guidance on public benefit. The School was founded in 1515 by Hugh Oldham, Bishop of Exeter, for the purpose of educating all boys who qualified by nature of their ability, regardless of family circumstances. The provision of an outstanding education and making this accessible to all through the provision of a significant bursary programme remains the key means of achieving this objective.

The School is fully committed to providing public benefit in a much broader sense, through links and partnerships with the local community, including the following examples:

Page 6

The Manchester Grammar School Foundation TRUSTEE’S REPORT

Operational performance and public benefit (continued)

Page 7

The Manchester Grammar School Foundation TRUSTEE’S REPORT

Operational performance and public benefit (continued)

At our last full inspection, carried out in January 2024 the key findings were as follows:

Sustainability

The School is very aware of its responsibility to the local community and the environment and is seeking to improve its performance and become more sustainable. Solar panels are in use on the roof of the sports hall and the School will consider further solar projects in the future once their effectiveness has been reviewed. The new Sixth Form Centre is almost complete and has been designed with air source heat pumps and LED lighting throughout. Various other types of work continue, for example, the move to energy efficient LED light fittings has continued with new fittings in Plessyngton Lodge, the gymnasium and the Sports Hall. Pupils are encouraged to bring in water bottles to minimise single use plastics. The School has good systems in place for the recycling of cardboard, paper, glass, electrical and metal waste. Food waste is sent to an anaerobic digestion plant to create biogas. Staff are regularly reminded to switch off lights and computer equipment when rooms are not in use.

Page 8

The Manchester Grammar School Foundation

TRUSTEE’S REPORT

Investment performance

The governors have noted that investment performance over the last 12 months has been lower than the comparator fund return. The fund’s holdings in real estate, health care provision, finance and IT have detracted from the overall performance. The governors will continue to review the fund’s performance and will meet with the account manager during the year. In July 2025, CCLA announced a new partnership with Jupiter Asset Management.

Fundraising performance

The main focus of fundraising continues to be the bursary funds which are held by M.G.S. Trust. The funds are currently valued at over £35 million and it is the School’s aim to increase this to over £100 million in the coming decades through on-going fundraising and prudent financial management by the Trustees.

In addition to donations to M.G.S. Trust, a number of donations have been made directly to the School for various purposes for which the Governors are very grateful. In particular there has been an appeal to raise money to support the building of the new Sixth Form Centre, sports pavilion and dining room. This appeal has raised over £5 million to date, exceeding the £4 million target.

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

A summary of the year’s financial activities is set out on page 16 in the attached accounts. The net income for the year before investment gains and the actuarial loss on The Manchester Grammar School Pension Scheme, a defined benefit pension scheme, was £2,897,249 (2024: £1,618,882 net income).

The principal funding sources of the School continue to be fee income, donations and legacies received which support the key objectives. The increase in net fee income on the previous year was modest due to a mid year fee reduction for the majority of families who had not paid the full year’s fee in advance prior to the government’s deadline for exemption from the introduction of VAT on school fees with effect from January 2025. Income arising from donations and legacies in the year includes legacy income of £312,127 (2024: £360,000), of which accrued legacy income of £25,262 (2024: £360,000) is expected to be received after year end, arising from two legacies for which the School is extremely grateful. The value of the accrued income is based on an estimate of the value of assets held by the estates of the benefactors, yet to be released to the School. The benefactors did not place any restriction on the use of these legacy funds, and the Governors have designated those funds towards the cost of building the proposed new Sixth Form Centre, sports pavilion and dining room. That legacy income is therefore included in designated funds as part of overall unrestricted funds. Further detail relating to funds is given in note 14. The largest element of the School’s expenditure continues to be staff costs.

The net increase in total funds was £2,761,128 (2024: £777,726), giving total School funds of £26,662,469 (2024: £23,901,341). Continuing careful control of operating costs together with the legacy income received in the year referred to above contributed to net income on unrestricted funds of £504,874 (2024: £1,248,473) and an increase in unrestricted funds of £3,684,009 (2024: £123,473) after fund transfers and actuarial losses, giving total unrestricted funds of £20,132,905 (2024: £16,448,896). Restricted funds decreased by £922,881 (2024: increased £654,253) due to the transfer to unrestricted funds of £3,223,135 in relation to the cost of the new Sixth Form Centre building. This funds transfer resulted from donations received specifically for the new Sixth Form Centre building fund during this year and over the previous two years with the restriction being released as the funds have been spent in accordance with the donors’ wishes on capital additions related to the sixth form building. At year end total restricted funds were £6,529,564 (2024: £7,452,445).

Additions to fixed assets in the year were £6,170,861 (2024: £1,023,843) which includes £5,701,692 (2024: £607,757) in the capital work in progress category, incurred on build costs and professional fees relating to the new Sixth Form Centre which prior to this year had been funded from general unrestricted funds. As the main build phase progressed over this year, most of the income received from donations and legacies specifically for this project, or designated by School for this project, have been transferred to general unrestricted funds to contribute to the build costs.

Unrestricted funds as shown in the financial statements includes a liability of £1,379,738 (2024: £1,544,738) in relation to The Manchester Grammar School Pension Scheme. These figures reflect an actuarial loss in the current year and prior year. Further details are given in note 18.

The School has net current assets at 31 July 2025 of £1,661,361 (2024: assets £4,405,990). Day to day working capital requirements are met by use of an overdraft facility when required, by an early payment discount scheme and by careful management of cash and it is anticipated that there will be no significant changes to pupil numbers or to the take up of

Page 9

The Manchester Grammar School Foundation TRUSTEE’S REPORT

FINANCIAL REVIEW AND RESULTS FOR THE YEAR (continued)

the early payment discount scheme. There was some decrease in the number of parents who took advantage of the early payment discount scheme in June 2025 compared to the previous year which saw unusually high take-up as a result of the anticipated introduction of VAT on school fees, contributing to a decreased cash balance and decreased fees in advance creditor at year end. The introduction of VAT on school fees from January 2025 has resulted in a VAT creditor of £1,021,857 (2024: £1,004). The increase in accruals and deferred income relates largely to a significant increase in accrued costs not yet invoiced relating to the Sixth Form Centre building works. The Governors do not consider there to be any material uncertainty about the School’s ability to continue as a going concern, as set out in the accounting policies.

Reserves policy

The Governors continue to monitor the level of reserves in line with the School's strategic plan on a termly basis and in conjunction with the risks faced by the School. The Governors are satisfied with the position and consider the reserves are adequate given the careful use of the School's bank facilities and the use of fees paid in advance.

There were £20.1m of unrestricted funds at 31 July 2025 (2024: £16.4m). School funds of £20.9m (2024: £15.5m) are invested in the School estate, meaning there was a free reserves deficit amounting to £0.8m at 31 July 2025 (2024: surplus of £0.9m). Unrestricted funds includes £25k (2024: £1.7m), all of which (2024: £0.4m of which) is accrued income not yet received by year end and which has been designated towards the cost of building the new Sixth Form Centre, sports pavilion and dining room. The need for day to day working capital is met by careful management of the bank balance with a £500,000 overdraft facility being available if required and the use of fees paid in advance (see note 11), in the absence of free reserves. The School funds major projects using operating surpluses and bank borrowing. The Development Office focuses mainly on fundraising for School bursaries and assists with certain specific projects as required. The School has accounted for a provision for The Manchester Grammar School Pension Scheme pension deficit of £1.4m (2024: £1.5m). Excluding this balance, unrestricted funds would be £21.5m (2024: £17.9m). Current capital commitments are given in note 21.

The School recognises the importance of reserves in its financial stability. The aim therefore continues to be to build up reserves out of annual operating surpluses and investment returns to a level which is considered adequate to meet the future needs of the School and allow further capital expenditure, repairs and refurbishment to equip the School with up-to-date facilities needed to maintain the standard of educational and academic services currently provided.

Investment policy

Investment powers are governed by the 2000 Trust Deed which states that Governors must review the School’s investments periodically and consider the suitability of the investments and the need for diversification. A new investment policy was agreed by the Governors in March 2018 and is reviewed annually. The management of the School’s portfolio is handled by a professional investment manager who reports to the Governors three times a year. There has been no change of investment manager during the year. There are no restrictions on the School’s power to invest.

FUTURE PLANS

Research and Artificial Intelligence

All pupils in Middle School will complete a supervised research project designed to develop their communication and research skills, including the use of artificial intelligence. We are continuing to evaluate and develop this new course, including exploring the possibility of accreditation via The University of Manchester and collaboration with Manchester City Council to share this provision with other schools.

SEND

With some of the space freed up by the opening of the new Sixth Form Centre we are going to audit the SEND rooms with a view to further developing the facilities for this key part of the School.

Fundraising

Following a very successful campaign to fund the Sixth Form Centre we are returning our focus to raising funds for our bursaries. This has been and will continue to be at the heart of what we do.

Page 10

The Manchester Grammar School Foundation TRUSTEE’S REPORT

TRUSTEE’S ACCOUNTING AND REPORTING RESPONSIBILITIES

The Trustee is responsible for preparing the Trustee’s Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustee is required to:

The Trustee is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provision of the Trust Deed. It is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustee is responsible for the maintenance and integrity of the School and financial information included on the School’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Page 11

TRUSTEE’S REPORT

The Manchester Grammar School Foundation

STATEMENT AS TO DISCLOSURE OF INFORMATION TO THE AUDITOR

The Governors (as representatives of the Trustee) who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the Governors has confirmed that he/she has taken all the steps that he/she ought to have taken as a Governor in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

Approved by the Board of Governors on

and signed on its behalf by:

M C Bolton Chair of Governors and Director of the Trustee

Page 12

Independent Auditor’s Report to the Trustee of The Manchester Grammar School Foundation

Opinion

We have audited the financial statements of The Manchester Grammar School Foundation (the ‘charity’) for the year ended 31 July 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

Basis for opinion

We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 Trustee’s 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 charity’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 Trustee with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Trustee’s Report other than the financial statements and our auditor’s report thereon. The Trustee is responsible for the other information contained within the Trustee’s Report. Our opinion on the financial statements does not cover the other information and, 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.

Page 13

Independent Auditor’s Report to the Trustee of The Manchester Grammar School Foundation

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of the Trustee

As explained more fully in the Statement of Trustee’s responsibilities set out on page 12 the Trustee is 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 Trustee determines 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 Trustee is responsible for assessing the charity’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 Trustee either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so.

Auditor’s 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 auditor’s 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.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

Page 14

Independent Auditor’s Report to the Trustee of The Manchester Grammar School Foundation

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Charities Act 2011 and the charity’s governing document.

We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustee’s Report and disclosures, whilst remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

The most significant laws and regulations that have an indirect impact on the financial statements are The Education (Independent School Standards) Regulations 2014, Keeping Children Safe in Education under section 175 of the Education Act 2002, and the UK General Data Protection Regulation (UK GDPR). We performed audit procedures to inquire of management and those charged with governance whether the charity is in compliance with these law and regulations and inspected correspondence with regulatory authorities.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.

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

Use of our report

This report is made solely to the charity’s Trustee as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s Trustee those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s Trustee as a body, for our audit work, for this report, or for the opinions we have formed.

RSM UK Audit LLP, Statutory Auditor

Chartered Accountants Ninth Floor, Landmark St Peter's Square 1 Oxford Street Manchester M1 4PB

RSM UK Audit LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

Page 15

The Manchester Grammar School Foundation STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 July 2025

INCOME
Note
Donations and legacies
Donations and legacies
1
Charitable activities
School fees
2a
Catering income
Other charitable income
3
Investments
Investment income
4
Other
Other income
5
TOTAL INCOME
EXPENDITURE
Raising funds
Fundraising
Investment management
Charitable activities
Teaching staff costs
Teaching support staff costs
Other teaching costs
Catering expenditure
Other welfare costs
Premises costs
Grants, awards and prizes
2c
Support costs
Management and administration
TOTAL EXPENDITURE
7
Net income before investment gains
Net (losses)/gains on investments
9
NET INCOME
Loss on defined benefit pension scheme
18
Transfers between funds
14
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
FUND BALANCES BROUGHT FORWARD
FUND BALANCES CARRIED FORWARD		 Unrestricted
funds
£
312,127
24,813,114
1,039,298
637,172
26,801,711
197,175
25,714
27,024,600
301,459
-
301,459
14,061,868
1,806,268
2,746,993
1,358,697
148,514
2,974,119
97,195
2,753,633
270,980
26,218,267
26,519,726
504,874
-
504,874
(44,000)
3,223,135
3,684,009
16,448,896
20,132,905		 Restricted
funds
£
5,085,879
-
-
78,504
5,164,383
238,167
-
5,402,550
1,328
-
1,328
76,919
-
19,087
4,346
-
-
2,892,289
16,206
-
3,008,847
3,010,175
2,392,375
(92,121)
2,300,254
-
(3,223,135)
(922,881)
7,452,445
6,529,564		 Total
2025
£
5,398,006
24,813,114
1,039,298
715,676

31,966,094

435,342
25,714

32,427,150

302,787
-

302,787

14,138,787
1,806,268
2,766,080
1,363,043
148,514
2,974,119
2,989,484
2,769,839
270,980

29,227,114

29,529,901

2,897,249
(92,121)

2,805,128
(44,000)
-

2,761,128
23,901,341

26,662,469		 Total
2024
£
3,247,114
24,342,243
1,050,123
688,256
29,327,736
454,725
25,075
29,807,536
334,237
6,412
340,649
13,554,051
1,594,617
2,742,273
1,352,361
160,788
3,011,752
2,806,608
2,433,053
192,502
27,848,005
28,188,654
1,618,882

289,844
1,908,726
(1,131,000)
-
777,726
23,123,615
23,901,341

The accounting policies and notes on pages 19 to 40 form part of these accounts.

Page 16

The Manchester Grammar School Foundation BALANCE SHEET As at 31 July 2025

Note
FIXED ASSETS
Tangible assets
8
Investments
9
CURRENT ASSETS
Debtors
10
Cash at bank and in hand
CREDITORS: Amounts falling due within one year
11
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS: Amounts falling due after more than one year
12
TOTAL NET ASSETS EXCLUDING PENSION PROVISION
Pension provision
18
TOTAL NET ASSETS
FUNDS
Restricted funds
Unrestricted funds:
General unrestricted funds
Designated funds
Pension reserve
Total unrestricted funds
TOTAL FUNDS OF THE SCHOOL
15		 2025
£
20,915,473
5,683,923

26,599,396

982,699
13,387,573

14,370,272
(12,708,911)

1,661,361

28,260,757
(218,550)

28,042,207
(1,379,738)

26,662,469

6,529,564
21,487,381
25,262
(1,379,738)

20,132,905

26,662,469
 2024
£
15,486,195
5,776,044
21,262,239
982,707
15,372,093
16,354,800
(11,948,810)
4,405,990
25,668,229
(222,150)
25,446,079
(1,544,738)
23,901,341
7,452,445
16,301,634
1,692,000
(1,544,738)
16,448,896
23,901,341

The accounts were approved and authorised for issue by the Board of Governors, on behalf of the Trustee, on and signed on its behalf by:

B H Leigh Treasurer G M Batchelor Bursar

The accounting policies and notes on pages 19 to 40 form part of these accounts.

Page 17

The Manchester Grammar School Foundation CASH FLOW STATEMENT For the year ended 31 July 2025

Note
CASH FLOWS FROM OPERATING
ACTIVITIES
16
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income
Interest received
Purchase of investments
Decrease in cash held within investments
Proceeds from sale of investments
Purchase of tangible fixed assets
NET CASH USED IN INVESTING
ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Interest paid
Repayments of borrowing
NET CASH USED IN FINANCING
ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS
IN THE YEAR
CASH AND CASH EQUIVALENTS AT
1 AUGUST
CASH AND CASH EQUIVALENTS AT
31 JULY
REPRESENTED BY:
Cash at bank and in hand		 £
236,761
197,175
-
-
-
(6,170,861)
(23,767)
-		 2025
£
3,776,172
(5,736,925)
(23,767)
(1,984,520)
15,372,093
13,387,573
13,387,573		 £
236,043
166,554
(5,285,963)
122,361
5,139,875
(1,023,843)
-
-		 2024
£
4,304,873
(644,973)
-
3,659,900
11,712,193
15,372,093
15,372,093

The accounting policies and notes on pages 19 to 40 form part of these accounts.

Page 18

The Manchester Grammar School Foundation ACCOUNTING POLICIES

LEGAL STATUS AND CHARITY INFORMATION

The School is an unincorporated charitable trust (charity no. 529909), registered in England and meets the definition of a public benefit entity under FRS102. The School’s address is The Manchester Grammar School, Old Hall Lane, Manchester, M13 0XT. The object of the School is to educate all boys who qualify by nature of their ability, regardless of family circumstances. The principal activity of the School is to educate boys aged 7 to 18.

BASIS OF ACCOUNTING

The financial statements (“accounts”) are prepared under the Charities Act 2011 on the historical cost convention as modified by the adoption of fair value for investment assets and in accordance with applicable accounting standards. The accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by 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 (the Charities SORP (FRS 102)) and the Charities Act 2011.

The accounts have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the Charities SORP rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has been withdrawn.

Monetary amounts in these financial statements are rounded to the nearest whole £1, except where otherwise indicated.

GOING CONCERN

The Governors do not consider there to be any material uncertainties about the School’s ability to continue as a going concern. The School has net current assets at 31 July 2025 of £1,661,361 (2024: assets £4,405,990). Day to day working capital requirements are met by use of an overdraft facility when required, by an early payment discount scheme and by careful management of cash and it is anticipated that there will be no significant changes to pupil numbers or to the take up of the early payment discount scheme. Included within the year end cash balance, within current assets, is an amount of £8,218,573 (2024: £9,958,410) which relates to fees in advance which will be released to income during the next financial year. There is currently no external borrowing.

The School has prepared cash flow forecasts for two years ending 31 July 2027, covering a period of 20 months from approval of its financial statements which support the going concern basis of preparation. The Governors are aware of the financial impact of the introduction of VAT on school fees, loss of charitable business rates relief and the changes to national insurance contributions for employers and will continue to carefully monitor the impact of these changes on the School’s financial position during this time.

Having considered the cash flow forecasts prepared, the Trustee considers there to be no uncertainties surrounding the School’s ability to continue as a going concern and have prepared the financial statements on this basis.

INCOME

Income from school fees and similar income are accounted for in the period in which the tuition or other service is provided. Fees received in respect of tuition to be given after the year end are included in creditors as fees received in advance. Fees receivable are stated after deducting allowances and scholarships granted by the School, but include contributions received from restricted funds for scholarships, bursaries and other grants.

Donations received for the general purposes of the School are credited to unrestricted funds and are recognised where there is entitlement, amount can be measured with sufficient reliability and the economic benefit to the School is probable. Donations subject to specific wishes of the donors are credited to the relevant restricted funds.

For legacies, entitlement is taken on a case by case basis as the earlier of the date on which: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. If the legacy is in the form of an asset other than cash or an asset listed on a recognised stock exchange, recognition is subject to the value of the asset being able to be reliably measured and title to the asset has passed to the charity. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Page 19

The Manchester Grammar School Foundation

ACCOUNTING POLICIES

INCOME (continued)

Other income, including investment income, is accounted for on an accruals basis.

EXPENDITURE

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer-term liabilities. All expenditure is stated inclusive of irrecoverable VAT. Expenditure is summarised under functional headings on a direct costs basis. Costs of raising funds are those costs incurred in attracting voluntary income and those incurred in investment management. Charitable activities include expenditure associated with the objects of the School and both the direct costs and support costs relating to this activity. Grants awarded are expensed as soon as they become legal or operational commitments. Governance costs include those incurred in the governance of the School and its assets and are primarily associated with constitutional and statutory requirements.

TAXATION

The School is a registered charity and as such is entitled to certain tax exemptions on its income and gains from investments to the extent that these are applied to its charitable objects.

TANGIBLE FIXED ASSETS

Assets acquired since 1970 are measured at their cost or value at the time of acquisition, net of depreciation and any impairment losses. No value is included in the accounts in respect of previously acquired land and buildings which form the largest part of the present School premises. However, the net book value of the pre 1970 land and buildings if depreciated would not be material.

Profits and losses on the disposal of properties are recognised in the Statement of Financial Activities in the year of disposal.

Where land and buildings are acquired with the aid of specific grants they are capitalised as above. Related grants for the restricted purposes of providing such fixed assets, are accounted for immediately as restricted funds.

All purchases of computer and other equipment costing in excess of £7,500 are capitalised.

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

DEPRECIATION

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost or valuation of each asset on a straight line basis over its expected useful life, as follows:

Freehold buildings 2% Equipment 20%

Capital work in progress is carried at cost, less any identified impairment loss. Cost includes professional fees and other directly attributable costs that are necessary to bring the property to its operating condition. Depreciation commences when the properties are ready for their intended use.

IMPAIRMENT OF FIXED ASSETS

An assessment is made at each reporting date of whether there are indications that a fixed asset may be impaired or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the School estimates the recoverable amount of the asset.

Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use, are recognised as impairment losses. Impairments of revalued assets are treated as a revaluation loss. All other impairment losses are recognised in net income/expenditure.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in net income/expenditure or, for revalued assets, as a revaluation gain.

On reversal of an impairment loss, the depreciation or amortisation is adjusted to allocate the asset’s revised carrying amount (less any residual value) over its remaining useful life.

Page 20

The Manchester Grammar School Foundation ACCOUNTING POLICIES

INVESTMENTS

Investments are stated in the balance sheet at their market value as at the balance sheet date. All movements in value arising from investment changes or revaluation are shown in the Statement of Financial Activities and are allocated to the appropriate fund according to the allocation of the underlying asset. Investment management costs are accounted for as incidental costs of the acquisition or disposal where transaction based, while investment income management costs are charged as expenditure out of the relevant income funds.

FUND ACCOUNTING

The School has the following types of funds for which it is responsible and which require separate disclosure.

Unrestricted funds Funds which are expendable at the discretion of the Governors in furtherance of the objects of the School. In addition to expenditure on tuition, such funds may be held in order to finance capital investment and working capital. Designated funds Unrestricted funds which have been set aside by the Governors for particular purposes (see note 14).

Restricted funds Donations or legacies received which are earmarked by the donor for specific purposes within the overall aims of the School. Amounts spent on capital projects out of restricted funds in accordance with the wishes of the donor and the terms in which the donations/legacies were provided are shown as transfers to unrestricted funds in the Statement of Financial Activities with the resultant fixed assets being free from any restriction (see note 14).

AGENCY ARRANGEMENTS

The School collects monies and makes payments in respect of trips. As these funds do not represent income for the School, they are not accounted for in the Statement of Financial Activities.

The School acts as agent in the administering of Swire grants on behalf of other schools. The School only recognises their own share of Swire grant income, with income received and paid out in respect of other schools being excluded from the Statement of Financial Activities, as the School does not have a beneficial interest in the individual transactions. Where funds have not been fully disbursed to other schools in the year, then an amount will be included in creditors.

EMPLOYEE BENEFITS

The costs of short-term employee benefits are recognised as a liability and an expense.

TERMINATION BENEFITS

Termination benefits are recognised immediately as an expense when there is a clear decision or commitment to terminate the employment or provide such termination benefits.

RETIREMENT BENEFITS

Retirement benefits for the School’s teaching staff are provided by the Teachers’ Pensions Scheme (“TPS”), a multiemployer defined benefit scheme, and, for non-teaching staff, The Pensions Trust Flexible Retirement Plan (FRP), a defined contribution scheme. The Manchester Grammar School Pension Scheme (“MGSPS”) is a defined benefit scheme for non-teaching staff that closed to new entrants and future accrual on 30 September 2016.

The TPS is an unfunded scheme. Contributions to the TPS are calculated so as to spread the cost of pensions over employees’ working lives with the School in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a projected unit method. The TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently there is insufficient information available to use defined benefit accounting and therefore it is accounted for as a defined contribution scheme, with the amount charged to the statement of financial activities being the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either other creditors or prepayments.

Page 21

The Manchester Grammar School Foundation

ACCOUNTING POLICIES

RETIREMENT BENEFITS (continued)

The FRP is a defined contribution scheme. For defined contribution schemes the amount charged to the statement of financial activities is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either other creditors or prepayments.

The MGSPS is a funded scheme, and the assets of the scheme are held separately. Pension schemes are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to the statement of financial activities are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs. The net interest cost on the net defined benefit liability/asset is charged to comprehensive income and included within support costs. Re-measurement comprising actuarial gains and losses and the return on scheme assets (excluding amounts included in net interest on the net defined benefit liability) are recognised immediately in the statement of financial activities after Total Expenditure .

FINANCIAL INSTRUMENTS

The School has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102, in full, to all of its financial instruments. The School only has financial assets and liabilities of a kind that qualify as basic financial instruments.

Trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value.

Bank loans are initially recognised at their transaction value and subsequently measured at amortised cost using the effective interest rate method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges.

Investments are initially measured at transaction price and subsequently measured at fair value through net income or expenditure.

CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

Estimates and judgements 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 School 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 significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are detailed below:

• Pension liability

A number of assumptions were made in relation to determining the present value of the deficit in relation to the MGSPS. The assumptions used include the discount rate and rate of salary increases. Any changes in these assumptions, which are disclosed in note 18, will impact the carrying amount of the pension liability.

• Useful life of fixed assets

In making decisions regarding the depreciation of tangible fixed assets, management must estimate the useful life of said assets to the School. A change in estimate would result in a change in the depreciation charged to the statement of total comprehensive income in each year. The carrying value of tangible fixed assets is £20,915,473 (2024: £15,486,195) with depreciation of £731,199 (2024: £743,812) being charged during the year.

Page 22

The Manchester Grammar School Foundation

ACCOUNTING POLICIES

CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT (continued)

Critical accounting judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:

In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the School as lessee.

Page 23

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

1 DONATIONS AND LEGACIES

M.G.S. Trust donations to Bursary Fund
Other donations to Bursary Fund
Other donations
Legacy income
Total donations and legacies		 Unrestricted
£
-
-
-
312,127
312,127		 Restricted
£
2,674,411
99,665
2,311,803
-
5,085,879		 Total
2025
£
2,674,411
99,665
2,311,803
312,127

5,398,006		 Total
2024
£
2,601,110
99,997
186,007
360,000
3,247,114

In the year ended 31 July 2024 donations and legacies, with the exception of £360,000 unrestricted legacy income, were otherwise all credited to restricted funds.

2 SCHOOL FEES

2a)
Gross fees
Less: fee discounts
Less: bursaries, scholarships and awards (see note 2b)
Plus: bursaries, scholarships and awards paid for by
restricted funds (see note 2b)
2b)
Bursaries, scholarships and awards in fee income (note 2a):
Restricted funds – fee assistance
Unrestricted funds – fee assistance
2c)
Grants, awards and prizes expenditure in charitable activities:
Restricted funds – fee assistance
Restricted funds – other awards and prizes
Unrestricted funds - other awards		 2025
£
25,382,012
(506,351)
(2,921,951)

21,953,710
2,859,404

24,813,114

2,859,404
62,547

2,921,951

2,859,404
32,885

2,892,289
97,195

2,989,484
 2024
£
25,089,603
(491,890)
(2,962,882)
21,634,831
2,707,412

24,342,243
2,707,412
255,470
2,962,882
2,707,412
20,471
2,727,883
78,725
2,806,608

The total fee assistance awards provided assistance to 212 (2024: 217) pupils. School fee income is credited to unrestricted funds.

Page 24

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

3 OTHER CHARITABLE INCOME

Unrestricted
Restricted
£
£
Grants receivable
-
78,504
Shuttle bus income
498,094
-
Other income
139,078
-

637,172
78,504		 Total
2025
£
78,504
498,094
139,078

715,676		 Total
2024
£
75,546
468,024
144,686
688,256

In the year ended 31 July 2024 all grants receivable were credited to restricted funds, with all shuttle bus income and other charitable income credited to unrestricted funds.

4 INVESTMENT INCOME

Unrestricted
£
Listed investments
-
Other unlisted securities
-
Interest on other bank accounts
197,175
197,175		 Restricted
£
-
159,660
78,507
238,167		 Total
2025
£
-
159,660
275,682

435,342		 Total
2024
£
9,252
190,576
254,897
454,725

In the year ended 31 July 2024 investment income, with the exception of interest on other bank accounts of £166,554 was credited to restricted funds.

5 OTHER INCOME

Unrestricted Restricted 2025 2024
£ £ £ £
Lettings 25,714 - 25,714 25,075

In the year ended 31 July 2024 all lettings income was credited to unrestricted funds.

Page 25

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

6 EXPENDITURE

EXPENDITURE
Charitable expenditure includes:
Depreciation
Bank interest payable
Operating lease payments
Net interest on pension liability
Governance costs includes (excluding VAT):
Auditor’s remuneration - statutory audit
Auditor’s remuneration - other assurance services
Auditor’s remuneration - accountancy services
Auditor’s remuneration – tax advisory services
Staff costs:
Wages and salaries
Social security costs
Pension costs
Redundancy costs
The average number of employees during the year was:
Teaching staff
Other
The number of employees whose emoluments exceeded £60,000 were:
£60,001 to £70,000
£70,001 to £80,000
£80,001 to £90,000
£90,001 to £100,000
£100,001 to £110,000
£110,001 to £120,000
£130,001 to £140,000
£250,001 to £260,000
£310,001 to £320,000		 2025
£
731,199
23,767
731,249
72,000

35,000
1,260
2,100
16,654

14,212,347
1,730,609
3,250,296
31,793

19,225,045

2025
No.
182
157

339

2025
No.
45
15
7
-
1
-
1
-
1		 2024
£
743,812
-
733,440
27,000
28,850
1,260
2,100
-
13,676,245
1,548,604
2,922,611
1,708
18,149,168
2024
No.
182
144
326
2024
No.
45
5
7
1
-
1
-
1
-

Included in the above higher paid employees were 62 (2024: 55) accruing benefits under defined benefit schemes.

Page 26

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

7
ANALYSIS OF EXPENDITURE
Staff
costs
£
Charitable expenditure
Teaching staff costs
14,138,787
Teaching support staff costs
1,806,268
Other teaching costs
-
Catering expenditure
596,988
Other welfare costs
127,372
Premises costs
860,537
Grants, awards and prizes
-
Support costs
1,424,530
Management and
administration of the School
-
18,954,482
Costs of generating funds
Fundraising
270,563
Investment management
-
19,225,045		 Other
£
-
-
2,501,093
755,125
21,142
1,677,720
2,989,484
1,325,889
270,980
9,541,433
32,224
-
9,573,657		 Depreciation
£
-
-
264,987
10,930
-
435,862
-
19,420
-
731,199
-
-
731,199		 Total
2025
£
14,138,787
1,806,268
2,766,080
1,363,043
148,514
2,974,119
2,989,484
2,769,839
270,980

29,227,114
302,787
-

29,529,901		 Total
2024
£
13,554,051
1,594,617
2,742,273
1,352,361
160,788
3,011,752
2,806,608
2,433,053
192,502
27,848,005
334,237
6,412
28,188,654

Support costs comprise general office costs, insurance, loan interest, pension finance costs, staff related costs and governance costs. Governance costs amount to £57,014 (2024: £38,652). Management and administration costs comprise legal and professional fees, bank charges and school inspection costs.

Of the total charitable expenditure of £29,227,114 (2024: £27,848,005), £26,218,267 (2024: £25,005,477) was unrestricted and £3,008,847 (2024: £2,842,528) was restricted.

Of the total cost of generating funds of £302,787 (2024: £340,649), £301,459 (2024: £302,755) was unrestricted and £1,328 (2024: £37,894) was restricted.

Page 27

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

8 TANGIBLE FIXED ASSETS

Capital work in
progress
Freehold land
& buildings
£
£
Cost
At 1 August 2024
911,102
20,953,861
Additions
5,865,581
204,526
Transfers
(67,903)
45,733
Disposals
-
-
At 31 July 2025
6,708,780
21,204,120
Depreciation
At 1 August 2024
-
7,167,422
Charge for the year
-
417,437
Disposals
-
-
At 31 July 2025
-
7,584,859
Net book value
At 31 July 2025
6,708,780
13,619,261
At 31 July 2024
911,102
13,786,439		 Equipment
£
2,256,670
100,754
22,170
(304,615)

2,074,979

1,468,016
313,762
(294,231)

1,487,547

587,432

788,654		 Total
£
24,121,633
6,170,861
-
(304,615)
29,987,879
8,635,438
731,199
(294,231)
9,072,406
20,915,473
15,486,195

The School’s buildings currently have an insured value of £88,995,046 (2024: £102,908,823). Legal title of the School’s land and buildings is held by the Corporate Trustee, The Manchester Grammar School Foundation Trustee Limited. Given the risks and rewards of ownership reside with the School, post-1970 School buildings and subsequent additions or capital improvements are capitalised within these financial statements.

9 INVESTMENTS

Listed
investments
Unit trusts
£
£
Market value
At 1 August 2024
-
5,776,044
Additions
-
-
Disposals
-
-
Net investment (losses)/gains
-
(92,121)
At 31 July 2025
-
5,683,923
Listed
Investments
£
Unit trusts
£
Historical cost
At 31 July 2025
-
5,285,963
At 31 July 2024
-
5,285,963		 Cash
Total
£
£
-
5,776,044
-
-
-
-
-
(92,121)
-
5,683,923
Cash
£
Total
£
-
5,285,963
-
5,285,963

Page 28

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

9 INVESTMENTS (continued)

Investment assets based and managed within the UK
Investment assets outside the UK		 2025
£
5,683,923
-

5,683,923
 2024
£
5,776,044
-
5,776,044

At year end, although all investment assets are held within an investment fund that is based in the UK, the investments made by that fund are well diversified and geographically spread.

Trade debtors
Prepayments and accrued income
Other debtors		 2025
£
189,997
753,564
39,138

982,699
 2024
£
130,163
757,316
95,228
982,707

Trade debtors are stated after a bad debt provision of £346,042 (2024: £235,237). The provision for bad and doubtful debts increased during the year resulting in a debit to charitable activities of £110,805 (2024: debit £53,611).

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Fees in advance
Refundable deposits

 2025
£
826,090
1,431,283
720,177
1,476,393
8,218,573
36,395

12,708,911
 2024
£
257,532
356,971
700,604
643,287
9,958,410
32,006
11,948,810

Fees in advance are payments that have been received for school fees for the 2025/2026 academic year.

Deferred income relates to shuttle buses, lunches and other income which have been received in respect of future financial years.

Page 29

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

11 CREDITORS: Amounts falling due within one year (continued)

Summary of movements in fees in advance and deferred income during the year:

Balance brought forward at 1 August
Amounts released during the year
Amounts deferred during the year
Balance carried forward at 31 July
REDITORS: Amounts falling due after more than one year
Refundable deposits		 2025
£
10,166,824
(9,487,480)
7,746,609

8,425,953

2025
£
218,550

218,550
 2024
£
8,217,566
(8,217,566)
10,166,824
10,166,824
2024
£
222,150
222,150

12 CREDITORS: Amounts falling due after more than one year

There were no outstanding bank loans at 31 July 2025. During the year a revolving bank loan facility was taken out to contribute to the mix of funding options for the new Sixth Form Centre, sports pavilion and dining room building project. This revolving loan facility provides flexibility over the amount borrowed up to a maximum of £5million over a 3 year period at an interest rate of 1.8% over Bank of England base rate on borrowings and a non-utilisation fee of 0.5% on the balance not borrowed. The loan is secured against some of the School’s buildings. There have not been any drawings on that facility by 31 July 2025 as donations and legacy income received for the project have exceeded the target amount, thus changing the mix of funding sources in the year from that initially planned.

Refundable deposits

Parents not in receipt of fee assistance pay a deposit when a pupil joins the School. These are classified as short term or long term liabilities based on the expectation pupils remain in the School for the duration of their education. Assuming the pupils remain in the School, the deposits are expected to be refundable as follows:

Amounts due within one year
1 to 2 years
2 to 5 years
More than 5 years		 2025
£
36,395
26,400
79,500
112,650

254,945
 2024
£
32,006
25,500
84,300
112,350
254,156

Page 30

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

13 FINANCIAL INSTRUMENTS

The carrying amount of the School’s financial instruments at 31 July were:

Financial assets:
Debt instruments measured at amortised cost
Equity instruments measured at fair value
through profit or loss
Financial liabilities measured at amortised cost		 2025
£
315,460
5,683,923

5,999,383

2025
£
3,070,225
 2024
£
686,792
5,776,044
6,462,836
2024
£
1,647,164

14 FUNDS

Restricted
Pension reserve
unrestricted
General
unrestricted
Designated
unrestricted
Total funds		 Balance
1 August
2024
£
7,452,445
(1,544,738)
16,301,634
1,692,000
23,901,341		 Incoming
resources
£
5,402,550
-
27,024,600
-
32,427,150		 Resources
expended
£
(3,010,175)
(173,000)
(26,346,726)
-
(29,529,901)		 Transfer
between
funds
£
(3,223,135)
382,000
4,507,873
(1,666,738)
-		 Other
gains/
(losses)
£
(92,121)
(44,000)
-
-

(136,121)		 Balance
31 July
2025
£
6,529,564
(1,379,738)
21,487,381
25,262
26,662,469

Unrestricted funds are retained as necessary to cover working capital. Transfers between funds comprise:

Page 31

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

14 FUNDS (continued)

Restricted funds

1)
Bursary
fund
2)
New
Building
fund
3)
Leaving
Exhibition
fund
4)
Scholarship
fund
5)
Prize fund
6)
Educational
Travel fund
7)
Sports and
Games fund
8)
Library fund
9)
Other funds		 Balance
1 August
2024
£
4,684,946
1,218,429
550,491
82,150
201,798
304,612
83,678
176,444
149,897

7,452,445
 Incoming
resources
£
2,943,508
2,295,431
15,175
2,243
7,399
9,041
2,323
4,676
122,754
5,402,550		 Resources
expended
£
Transfers
between
funds
£
Investment
losses
£
(2,859,452)
-
(70,892)
(1,326)
(3,223,135)
-
(6,450)
-
(8,288)
(2,609)
-
(1,258)
(13,655)
-
(3,047)
(7,371)
-
(4,354)
-
-
(1,189)
(9,322)
-
(2,445)
(109,990)
-
(648)
(3,010,175)
(3,223,135)
(92,121)		 Balance
31 July
2025
£
4,698,110
289,399
550,928
80,526
192,495
301,928
84,812
169,353
162,013
6,529,564

Restricted funds are used as follows:

Page 32

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

14 FUNDS (continued)

Prior year funds: Prior year funds:
Balance Incoming Resources Transfer Other Balance
1 August resources expended between gains/ 31 July
2023 funds (losses) 2024
£ £ £ £ £ £
Restricted 6,798,192 3,250,831 (2,880,422) (6,000) 289,844 7,452,445
Pension reserve (666,738) - (117,421) 370,421 (1,131,000) (1,544,738)
unrestricted
General
unrestricted 15,660,161 26,556,705 (25,190,811) (724,421) - 16,301,634
Designated
unrestricted 1,332,000
 - - 360,000
 -
 1,692,000
Total funds
 23,123,615
 29,807,536 (28,188,654) -
 (841,156)
 23,901,341
Restricted funds:
Balance Transfers Balance
1 August
Incoming
Resources		 between
Investment
31 July
2023
resources
expended		 funds
gains
2024
£ £ £ £ £
£
1)
Bursary fund		 4,285,435 2,888,807 (2,712,346) - 223,050 4,684,946
2)
New Building
fund 1,057,235 162,123 (929) - - 1,218,429
3)
Leaving
Exhibition
fund 511,855 18,556 (5,997) - 26,077 550,491
4)
Scholarship
fund 78,982 2,801 (3,591) - 3,958 82,150
5)
Prize fund		 188,812 8,240 (4,843) - 9,589 201,798
6)
Educational
Travel fund 286,735 10,685 (6,506) - 13,698 304,612
7)
Sports and
Games fund 78,799 2,792 (1,654) - 3,741 83,678
8)
Library fund		 166,065 5,857 (3,170) - 7,692 176,444
9)
Other funds		 144,274 150,970 (141,386) (6,000) 2,039 149,897
6,798,192 3,250,831 (2,880,422) (6,000) 289,844 7,452,445

Page 33

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

15 ANALYSIS OF NET ASSETS BETWEEN FUNDS

As at 31 July 2025:

Restricted funds
Unrestricted funds
As at 31 July 2024:

Restricted funds
Unrestricted funds		 Tangible
fixed assets
Investments
£
£
-
5,683,923
20,915,473
-
20,915,473
5,683,923
Tangible
fixed assets
Investments
£
£
-
5,776,044
15,486,195
-
15,486,195
5,776,044		 Net current
assets
Long term
liabilities and
provisions
Total
£
£
£
845,641
-
6,529,564
815,720
(1,598,288)
20,132,905
1,661,361
(1,598,288)
26,662,469
Net current
assets
Long term
liabilities and
provisions
Total
£
£
£
1,676,401
-
7,452,445
2,729,589
(1,766,888)
16,448,896

4,405,990
(1,766,888)
23,901,341

16 CASH FLOW STATEMENT

Reconciliation of net income to net cash flow from operating activities

Net income
Depreciation
Losses on disposal of fixed assets
Interest receivable
Losses/(gains) on investments
Interest payable
Investment income
Decrease in debtors
(Decrease)/increase in fees in advance
Increase/(decrease) in other creditors
Defined benefit pension scheme costs less
contributions payable
Defined benefit pension scheme finance cost
Net cash provided by operating activities		 2025
£
2,805,128
731,199
10,383
(197,175)
92,121
23,767
(236,761)
8
(1,739,837)
2,496,339
(281,000)
72,000
3,776,172		 2024
£
1,908,726
743,812
-
(166,554)
(289,844)
-
(288,171)
900,293
1,879,870
(130,259)
(280,000)
27,000
4,304,873

Page 34

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

17 ANALYSIS OF CHANGES IN NET DEBT

1 August 2024
£
Cash at bank and in hand
15,372,093
Borrowings excluding overdrafts
-
15,372,093		 Cash flows
£
Non-cash flows
£
31 July 2025
£
(1,984,520)
-
13,387,573
-
-
-
(1,984,520)
-
13,387,573

18 PENSION SCHEMES

The School’s teaching staff are entitled to join the Teachers’ Pension Scheme (“TPS”) and the non-teaching staff, The Pensions Trust Flexible Retirement Plan (“FRP”). The TPS is a multi-employer defined benefit scheme and the FRP is a defined contribution scheme. The latest actuarial valuation of the TPS related to the period ended 31 March 2020. A third scheme, The Manchester Grammar School Pension Scheme (“MGSPS”), is a defined benefit scheme for non-teaching staff that closed to new entrants and future accrual on 30 September 2016.

TEACHERS’ PENSION SCHEME

The School participates in the TPS for its teaching staff. The employer's pension costs paid to the TPS in the period amounted to £2,755,519 (2024: £2,409,713) and at the year-end £310,295 (2024: £310,378) was included in other creditors in respect of contributions to this scheme.

The TPS is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers. All teachers have the option to opt-out of the TPS following enrolment. The TPS is an unfunded scheme to which both the member and employer make contributions, as a percentage of salary - these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2023 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020 in accordance with The Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 and the Employer Contribution Rate was assessed using agreed assumptions in line with the Directions and was accepted at the original assessed rate as there was no cost control mechanism breach.

The valuation report was published by the Department for Education on 26 October 2023. The key elements of the valuation are:

Page 35

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

18 PENSION SCHEMES (continued)

As a result of the valuation, new employer contribution rates have been set at 28.68% of pensionable pay from 1 April 2024 until 31 March 2027 (compared to 23.68% under the previous valuation) including a 0.08% administration levy.

A copy of the valuation report and supporting documentation is available on the Teachers’ Pension Scheme’s website.

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The School has accounted for its contributions to the scheme as if it were a defined contribution scheme. The School has set out above the information available on the scheme.

THE PENSIONS TRUST FLEXIBLE RETIREMENT PLAN

The FRP is a defined contribution scheme run by The Pensions Trust. Total contributions charged to the Statement of Financial Activities were £490,537 (2024: £458,361). Included within other creditors is a balance of £57,900 relating to the FRP scheme (2024: £56,239).

THE MANCHESTER GRAMMAR SCHOOL PENSION SCHEME

The MGSPS is a defined benefit scheme. It is closed to new entrants and to future accrual. This is a separate trustee administered fund holding the pension scheme assets to meet long term pension liabilities.

An actuarial valuation was carried out as at 30 September 2023 and updated to 31 July 2025 by a qualified actuary, independent of the scheme's sponsoring employer.

The actuarial valuation as at 30 September 2023 showed a deficit of £1,720,000. The Employer agreed with the Trustee that it will aim to eliminate the deficit by the payment of contributions of £289,827.48 per annum (payable monthly) prior to 31 December 2024, increasing by 3% on 1 September 2024. From 1 January 2025, the Employer will pay contributions of £298,522.32 per annum (payable monthly), increasing by 3% on each 1 September.

In addition, contributions of £82,000 per annum (payable monthly) are payable towards Scheme expenses (including the Pension Protection Fund levy). This increases to £86,800 per annum (payable monthly) from 1 January 2025, increasing by 3% on each 1 October.

The principal assumptions used in the calculation of the valuation of the plan assets and the present value of the defined benefit obligations include:

2025 2024
% %
Discount rate 5.9 5.1
Inflation (RPI) 3.0 3.1
Inflation (CPI) 2.8 2.8
Salary growth 2.8 2.8

The mortality assumptions adopted imply the following life expectancies:

At 31 July 2025 At 31 July 2024
Life expectancy at Life expectancy at
age 65 (years) age 65 (years)
Male retiring in 2025 19.9 19.6
Female retiring in 2025 22.2 22.2
Male retiring in 2045 21.1 20.8
Female retiring in 2045 23.7 23.6

Page 36

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

18 PENSION SCHEMES (continued)

Amounts recognised in profit and loss (in the Statement of Financial Activities) in respect of the defined benefit scheme are as follows:

Expenses
Net interest cost		 2025
£000
101
72

173
 2024
£000
91
27
118

Amounts recognised in other comprehensive income (in the Statement of Financial Activities) in respect of the defined benefit scheme are as follows:

Loss on plan assets (excluding amounts included in net interest costs)
Experience losses arising on the plan liabilities
Gain/(loss) as a result of effects of changes in the demographic and financial
assumptions underlying the present value of the plan liabilities
Total loss recognised in other comprehensive income
Changes in pension value of the defined benefit obligation:
Defined benefit obligation at start of period
Interest expense
Actuarial (gain)/loss
Benefits paid
Defined benefit obligation at end of period
Changes in the fair value of plan assets:
Fair value of plan assets at start of period
Interest income
Actuarial loss
Contributions by the School
Benefits paid
Expenses
Fair value of plan assets at end of period
Deficit in plan		 2025
£000
(886)
(157)
999
(44)
2025
£000
10,027
503
(842)
(350)
9,338
2025
£000
8,482
431
(886)
383
(350)
(101)
7,959
1,379		 2024
£000
(80)
(921)
(130)
(1,131)
2024
£000
8,781
450
1,051
(255)
10,027
2024
£000
8,114
423
(80)
371
(255)
(91)
8,482
1,545

The actual return on the plan assets over the period ended 31 July 2025 was a loss of £455k (2024: gain of £343k).

Page 37

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

18 PENSION SCHEMES (continued)

The analysis of the scheme assets at the reporting date were as follows:

Equity-type assets
Bonds
Property
Other
Total assets		 2025
£000
643
3,488
402
3,426
7,959
 2024
£000
1,023
3,562
347
3,550
8,482

The Governors are aware that the Court of Appeal upheld the decision in the Virgin Media vs NTL Pension Trustees II Limited case. The decision puts into question the validity of any amendments made in respect of the rules of a contracted-out pension scheme between 6 April 1997 and 5 April 2016. The judgment means that some historic amendments affecting s.9(2B) rights could be void if the necessary actuarial confirmation under s.37 of the Pension Schemes Act 1993 was not obtained. On 5 June 2025, the Government announced its intention to introduce legislation to give affected pension schemes the ability to retrospectively obtain written confirmation that historical benefit changes met the necessary standards. However details of the legislation have not been announced. Subject to the Scheme Trustees being able to comply with the legislation and the pension scheme obtaining the required written actuarial confirmation, the Trustees do not expect the valuation of the scheme liabilities to change.

19 RELATED PARTIES

The Manchester Grammar School Foundation Trustee Limited

The Manchester Grammar School Foundation Trustee Limited (‘the Trustee’) is the trustee of the School and its controlling party. There were no transactions with the Trustee in the year.

Key management personnel

The Governors consider that the key management personnel of the School are the High Master and the Senior Leadership Team. The total employment benefits including employer pension contributions and employer national insurance contributions of the key management personnel were £1,356,299 (2024: £1,325,223).

20 TRANSACTIONS WITH GOVERNORS

Two of the Governors, Mr Hugh Campbell and Mr Kunal Hinduja, each have one child attending the School. Both of those children were also in attendance last year. Neither received a bursary or other form of assistance.

One of the Governors, Mr Michael Robinson, is a director of IN4M Property Consultants Ltd. During the year the School purchased consultancy services in relation to the new Sixth Form Centre from IN4M Property Consultants Ltd at a cost of £26,000 (2024: £20,400). As at 31 July 2025 the School owed IN4M Property Consultants Ltd £2,400 (31 July 2024: £2,400). Also, Mr Marc Yaffe was Managing Partner of JMW Solicitors LLP and was a Governor until his resignation on 25 June 2025. During the year the School purchased legal services in relation to the new building project from JMW Solicitors LLP at a cost of £1,060 (2024: £1,800). As at 31 July 2025 the School owed JMW Solicitors LLP £nil (31 July 2024: £nil). The transactions with both IN4M Property Consultants Ltd and JMW Solicitors LLP were at arms-length and at market value.

During the year two (2024: two) Governors received reimbursement of travelling expenses totalling £745 (2024: £363).

During the year five Governors made donations to the School in their personal capacity, totalling £40,620, to contribute to the new building fund and the hardship fund (2024: two Governors made donations of £4,500).

Page 38

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

20 TRANSACTIONS WITH GOVERNORS (continued)

The ultimate controlling parties of the School are the Governors, in their capacity as directors of the Trustee.

None of the Governors received any remuneration from the School.

21 CAPITAL COMMITMENTS

As at 31 July 2025, the School had capital commitments totalling £3,118,085 (2024: £9,672,643). This mostly relates to building works in progress for the new Sixth Form Centre, sports pavilion and dining room. With effect from 2025, following the introduction of VAT on school fees, amounts are net of recoverable VAT.

22 OPERATING LEASE COMMITMENTS

As at 31 July 2025, the School had outstanding commitments for future minimum lease payments under noncancellable operating leases which fall due as follows:

Within 1 year
Within 1 to 2 years
Within 2 to 5 years
Within more than 5 years		 2025
£
366,988
145,242
48,656
3,719

564,605
 2024
£
672,069
369,963
163,700
-
1,205,732

Commitments under leases for Microsoft Surface computers provided to all pupils and teachers to enhance teaching and learning are reflected in the figures above. With effect from 2025, following the introduction of VAT on school fees, amounts are net of recoverable VAT.

23 AGENCY ARRANGEMENTS

The School acts as agent in respect of school trips. All trips are budgeted on a break-even basis but transactions relating to each trip often span financial years. In the year ended 31 July 2025 the School received £1,239,691 and paid £1,104,609 in respect of school trips (2024: school received £1,167,952 and paid £1,257,057). An amount of £335,929 (2024: £247,121) is included in other creditors, and £24,831 (2024: £71,105) is included in other debtors in respect of trip income that has yet to be fully disbursed at the year end.

The School also acts as agent in administering the Swire programme for Chinese teaching for other local schools. In the year ended 31 July 2025 the School received £246,139 and paid out £240,679 in respect of the Swire programme (2024: School received £260,454 and paid out £146,798). £78,504 was recognised as the School’s own income in respect of Swire, included in grants receivable in the Statement of Financial Activities (2024: £73,520). An amount of £9,761 is included in other creditors in respect of Swire income that has yet to be distributed to recipient schools at the year-end (2024: £82,806).

Page 39

The Manchester Grammar School Foundation NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2025

24 POST BALANCE SHEET EVENTS

After year end the School has taken out a new bank loan to contribute to the funding mix for the new Sixth Form Centre, sports pavilion and dining room building project. The Governors intend to use this new loan facility rather than the existing revolving bank loan facility upon which no drawdowns have been made. The new facility is an unsecured loan of £3million drawn by a single advance at an interest rate of 2.5% above Bank of England base rate, with monthly repayments over 15 years.

Costs incurred to date on this building project are shown as capital work in progress within tangible fixed assets (see note 8) and anticipated future costs are shown within capital commitments (see note 21).

In addition to this loan facility, funding for the project has come from a mix of restricted funds donated for the purpose, unrestricted funds from legacy income designated for the purpose, with the balance coming from general unrestricted funds.

Page 40