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2025-08-31-accounts

Company number: 01193407

TERRINGTON HALL TRUST LIMITED

(Charity number 532362)

ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended

31 August 2025

HPH Chartered Accountants 54 Bootham YORK YO30 7XZ

TERRINGTON HALL TRUST LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

CONTENTS Page
Governors' Annual Report 1 - 12
Auditor's Report 13 - 16
Statement of Financial Activities 17
Balance Sheet 18
Cash Flow Statement 19
Notes to the Financial Statements 20 - 29

TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2025

REFERENCE AND ADMINISTRATIVE INFORMATION

The Governors present their fiftieth annual report and audited financial statements for the year ended 31 August 2025.

Charity Name: Terrington Hall Trust Limited Charity Registration Number: 532362 Company Registration Number: 01193407 Directors/Governors: Mrs K E Lamont (Chair) Mr R L Cordingley Ms Z A Bannister (resigned 26 June 2025) Mr A Dunn (resigned 31 December 2024) Mrs S Hogg Ms E Colquhoun Mr B Collins Ms G Eaton Mr D Griffiths Mrs A Moore Mr J Simms Mrs I Willoughby Mr S Shelley (appointed 13 March 2025) Mr J Mutton (appointed 13 March 2025) Company Secretary: Ms M B Mosey (appointed 16 October 2025) Mr A P Upton (resigned 30 July 2025) Head: Mr H G Thomas Registered Office and Terrington Hall Preparatory School Principal Address: Terrington, YORK, YO60 6PR Advisers Auditors: HPH Accountants LLP Chartered Accountants 54 Bootham YORK YO30 7XZ Solicitors: Harrowells LLP 1 St. Saviourgate YORK YO1 8ZQ Bankers: HSBC plc 13 Parliament Street YORK YO1 8RS

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Terrington Hall Trust Limited is a charitable company limited by guarantee, incorporated on 11 December 1974 and registered as a charity on 3 March 1975 and is governed by its Memorandum and Articles of Association. The Governors of the School are also the charity trustees and directors of the company.

Recruitment and training of Governors

Terrington Hall’s Board of Governors brings a wealth of experience and knowledge, giving their time and expertise to govern all aspects of running the school such as long-term strategic planning, financial sustainability, safeguarding and educational quality. New Governors are recruited through an annual skills audit facilitated by the Association of Governing Bodies of Independent Schools (AGBIS). This process ensures that the Board possesses the spectrum of skills necessary to effectively govern the school, both for the present and for the future. We recruit both locally and nationally according to the skillsets required.

All candidates for Board positions are interviewed and go through the statutory Safer Recruitment process, which includes references, safeguarding screening and training, ratification by the Full Board and a comprehensive induction programme to ensure their roles and responsibilities are effectively established.

Regarding Governor numbers, until otherwise determined by a general meeting, the number of Governors shall not be less than seven nor more than thirty. The members of the governing body are subscribers to the Memorandum of Association of the trust. In 2024/25 there were 13 Governors on the Board.

To manage conflict of interest, no person who is a Head or deputy Head of the School and no person who is otherwise in receipt of a salary, fees, remuneration or other benefit, in money or monies worth from the trust (save as permitted by Clause 4 of the Memorandum of Association) shall be eligible to be members of the governing body.

The Board of Governors operates through delegated authority to 4 subcommittees:

This structure enables the Board to maximise oversight of our statutory duties in addition to the devising and execution of the ambitious 5-year strategic development plan. Additionally, the Board operates a number of “taskforces” to run key cross-committee projects – these taskforces enable agile decision-making and execution and have proven to be especially effective with respect to planning for the sector “Headwinds”.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Key Strategic Plan Deliverables 24/25

Terrington Hall is a dynamic prep School which combines traditional prep values with a unique and innovative whole-child curriculum. The School continues to thrive, with roll numbers at capacity across most year groups and with our team of highly committed staff delivering an exciting year of educational opportunities for our children. In support of the School’s development plan, in 24/25, the Board was focused upon the below deliverables to drive performance, compliance and pupil outcomes:

Compliance Oversight

The Governance committee oversees all aspects of compliance in terms of our status as a charity, as an employer, and in terms of adherence to the Independent School Standard Regulations (ISSRs) as stipulated by our inspectorate, the Independent Schools Inspectorate (ISI) and the National Minimum Standards for Boarding Schools (NMS) as stipulated by the Boarding Schools Association (BSA). The School was inspected by ISI in November 2023 and all ISSRs were met. Although Terrington Hall was one of the first schools to be inspected in the new ISSR format (and at a time when indicative strengths were still being calibrated by the ISI), the School received excellent feedback, particularly with respect to the pastoral architecture and the well-embedded and lived-out values evident within the School’s community. A copy of the inspection report can be found on the School website.

Long Term Financial Planning

The Board has been intensively planning for the impact of the imposition of VAT on independent school fees, the loss of Management Business Rates Relief on independent school charities and the increase in employer NIC. In January 2025, our positive financial position enabled the Board to invest in base fee reduction to share some of the VAT impact with parents, with a net fee increase set at 9.5%. This was well received by parents and was instrumental in driving pupil retention. This investment was funded by focusing upon the reduction of controllable costs (including the exit from the Teachers Pension Scheme in 2024) and focused investment into the quality of pupil and parent experience in order to drive recruitment and retention. The long-term financial plan will continue to focus upon optimising costs, diversifying revenue and building productive partnerships to drive down costs and maximise educational opportunities for our pupils.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Estates Improvements

A key priority for the School is to maintain the safety, security and quality of our estates for our children, staff, boarders and parents. We invest judiciously behind the key drivers of pupil experience and leverage the latest technology where possible, in order to drive estate efficiencies. In addition to the usual repairs and maintenance, this year a full review of site security was undertaken and investments were made in barriers, gates and security technology. The girls changing rooms and boarding facilities were given an upgrade, in addition to improvements to the main reception areas. The catering facilities were further enhanced, deploying the latest technology to improve efficiency and continue to support our excellent catering staff to deliver their renowned food offering. Next year, the focus will be upon delivering the latest in classroom teaching technology – all classroom AV technology will be upgraded which will be a welcome addition to our teaching and learning experience. We are also planning to refurbish and reinvigorate our school library to support and enhance our approach to reading throughout the school.

Teaching & Learning Enhancements

The EWSD committee oversaw the embedding of several academic and co-curricular initiatives including the incorporation of new GL pupil assessment software in tandem with a new monitoring process for targeting individual educational needs. This has run in conjunction with a review of the daily routine and a new approach to timetabling.

Additionally, the School has developed an innovative Year 8 Journey which is a life skills programme designed to build confidence and readiness for senior school. This complements our existing programme of leadership opportunities, exciting school trips and experiences which our Year 8 pupils enjoy in their final year at Terrington Hall. Co-curricular continues to be a notable area of strength for the School and the Ad Astra, TALL award and the House System are now fully embedded and give each child the confidence and opportunities to discover their talents in a broad range of areas of interest.

Organisation

The Governors determine the general policy and strategy of the school as a whole. The school is divided into two sections:

Preparatory (‘Prep’) - for pupils aged seven to thirteen years old. Pre-Preparatory (‘Pre-prep’) - for pupils aged three to seven years old.

The day-to-day management of both sections of the school is delegated to the Head.

Remuneration of Senior Staff

The school aims to provide overall remuneration which is fair and competitive with the independent School sector as well as proportionate to the complexity of each role. In determining the right level of pay and wider remuneration, the school:

The Bursar and Heads salaries are benchmarked, and their salaries are determined by the School Governors. There is no remuneration or other compensation for any Governor.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2025

CHARITY OBJECTIVES AND ACTIVITIES

Charitable Objectives and Public Benefits

The aims of the trust, as stated in the Memorandum and Articles and Association, dated 11 December 1974, are to provide all children, irrespective of race, religion, gender, background or academic ability, with the chance to be involved in a caring, supportive and challenging environment where their full potential may be realised. In the furtherance of this aim the Governors, as the charity trustees, have complied with the duty in the Charities Act 2011 to have due regard to the Charity Commission’s published general and relevant sub-sector guidance concerning the operation of the Public Benefit requirement under that Act.

Terrington Hall Trust Limited’s principal activity continues to be the provision of a day and boarding school for 3 -13-year-old children.

Through our holistic, innovative and purposeful curriculum, we aim to develop lively, enquiring minds instilled with a love of learning, polite and well-mannered children who display natural self-confidence and humility, and critical thinkers and problem solvers with collaborative leadership skills to enable them to thrive in the 21[st] Century.

To support these aims, we seek to encourage and foster in children our key values, which are rooted in the Christian tradition upon which the school was founded:

By following the values stated above, and striving to equip our pupils with a love of learning and abundant opportunities, we aim to expand their horizons and prepare them for the brightest possible future. Our vision is to provide the best in preparatory education with opportunity, happiness and community at the core.

The quality of education on offer at Terrington Hall continues to be broad, varied and of a high standard. A full review of our offering has taken place this year as we lay the ground for our next five-year strategic plan. A clear roadmap is now in place as we seek to continuously ensure that we are delivering a modern, forward-thinking education based on traditional values. This approach has included a refresh of our curriculum, new models of planning, mapping and tracking pupils progress with a connected calendar of reporting and assessment. In conjunction, we have reviewed our daily routine and approach to timetabling in order to increase the contact time for form teachers and increase the amount of English and Maths within a weekly cycle. We have also incorporated Computing as a subject from Year 3-8 on a weekly basis. Our weekly CPD sessions have continued to prove successful with teaching staff involved in the creation of the programme and delivery of the content. This has been supplemented by visiting speakers. We continue to make good use of the IAPS Digital Academy and Educare platforms as a source of professional development for staff. The school also benefits from having an ISI Senior Team Inspector on staff, facilitating the introduction of best practices from around the country.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2025

CHARITY OBJECTIVES AND ACTIVITIES (continued)

Our newly refurbished Library has provided a magical sanctuary for pupils and staff alike and has held to enhance the reading fluency across the school. Teaching and Learning is very much at the forefront of our approach. SEN Support in the School continues to be a real strength. We have added some additional staff resource to the department and have co-ordinated our TA provision in order to deliver best outcomes for the pupils across the school. Senior school preparations for all pupils with progress, at the age of thirteen, to their senior school of choice remains and important part of our provision. Pupils leave us with the knowledge, abilities and confidence to continue to grasp every opportunity presented to them and contribute positively within their new setting. Our focus on the ‘right school, right child’ approach is an important element of our offering. The annual lecture and careers series which are also open to parents has been rebranded as ‘Terrington Talks’ and has included topics such as Histories Heroes, Charity work, Ultra running, Women’s rights, Online safety and resilience. For a small School Terrington Hall offers considerable breadth of the academic study with pupils enjoying the challenge of English and mathematics, languages taught (Spanish, French, Latin and Greek) alongside three separate sciences, along with a variety of Arts, Humanities and Outdoor Education. Teaching continues to demonstrate breadth and depth and adapted to individual pupils as appropriate through differentiation. All pupils have prep diaries to record their work and across the Prep School all pupils read for a daily 20-minute period.

Pupil wellbeing continues to be at the heart of the School’s outlook, with weekly “Safeguarding and Wellbeing’ staff meetings, year group pastoral welfare lunches with the Headmaster and Deputy Head Pastoral, increased emphasis on pupil voice with extra committees added, year group designated boarding nights and a strong buddy and peer mentoring system. Our all-embracing approach to pastoral care is noteworthy and provides a safe and nurturing environment for all of our pupils and staff. We have introduced a new behaviour policy and invested significant time in staff training and meeting time to ensure that the new, positive approach, has been embedded into our routines. The recently introduced changes to our daily routines and room allocations have reduced transition times and unstructured times. This has certainly helped a lot of our pupils by reducing anxiety and increasing purpose to the start of lessons. Our ‘Hobbit House’ (thanks to our Parents’ Association) continues to provide a safe, quiet space during break times. The House System with three houses for all pupils from Reception to Year 8 to be affiliated to continues to provide a sense of belonging and purpose for our pupils. Points and house competitions are tallied up on a weekly and termly basis, with a weekly awards assembly to celebrate successes inside and outside of School. This culminates in a yearly overall winning house. We held numerous competitions and House events across the year, including a Bake Off, where the money raised went to our school charity, Myeloma UK, an essay competition, pancake race and many House sport competitions also. Highlights have undoubtedly been the introduction of House ‘formal nights. Pupils regularly get the chance to showcase their achievement in other co-curricular pursuits in our celebratory House assemblies, which are pupil-led to promote and celebrate engagement in the co-curricular programme whilst building pupils’ public speaking and presentation skills.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2025

CHARITY OBJECTIVES AND ACTIVITIES (continued)

Our rich, broad and vibrant co-curricular offering continues to offer a vast array of opportunities to shape character. The Terrington Hall Adventure, Life skills and Leadership (TALL) award programme launched is now fully embedded into our programme and is hugely popular with pupils and staff, facilitating hands on learning, STEM activities, collaboration, negotiation and critical thinking. We have increased the number of Performing Arts ensembles and groups and continue to invest in resources and the infrastructure of our space. We have also increased the number of peripatetic music and drama teachers to 10 with over 150 lessons taking place per week. Pupils have had significant success with music and drama examination boards ABRSM and Trinity, with all pupils achieving pass to distinction levels. Our newly appointed Head of Sport has really allowed us to align our programme with our school values and drive to embrace a co-educational approach to sport alongside providing a separate focus for physical literacy and movement well-being. We also continue to offer a wide range of educational trips with all pupils in Year 3-8 having the opportunity to benefit from a residential trip during the school year. We offer additional tennis and cricket lessons which offer over 50 additional, peripatetic lessons per week. Several of our pupils have also received regional recognition in both Hockey and Cricket.

We also continue to put staff welfare, development and leadership at the forefront of our thinking. Our staff team and culture continue to evolve and improve with new senior and middle management structures working well. The staff well-being group and included forums for support staff and parents continue to prove beneficial and insightful as we shape our provision.

Our wider community is important and the strength of our ‘Friends of Terrington Hall’ committee is testament to this fact. Regular meetings, events and fund-raising events all part of the fabric of life at Terrington. Our Terrington Connections group which is actively working to connect, maintain connections or re-connect with former pupils, parents and staff continues to flourish.

Aligned to our values, we strive to support many charities, through fundraising and in-school events which resonate with, and are close to the hearts of our school community. In recent years these have included Dove House Hospice and Myeloma UK. We are committed to widen public access to our educational provision via the use of our sports facilities and performing arts provision. This helps to instil in our pupils an awareness of the wider social context of the education they receive. Our links include Terrington Primary School using our pool and providing collaborative support and training for Early Career Teachers (ECTs).

Our connections with the local community continue to grow and children visit retirement homes at Christmas to sing carols, our grounds team maintain Terrington village church’s lawns and salt its walkways in winter. The local primary school have attended our Remembrance Service, and are invited to whole school events, such as Harry Potter Quidditch Day, Marshall Arts Day, Christingle Service, Careers Lectures and STEAM activities. Village residents are invited to attend our fireworks display and Christmas Fair free of charge. We also maintain strong links with the Yorkshire Cricket Board and local clubs who use our indoor and outdoor facilities throughout the year.

Fundraising

Fundraising at Terrington Hall is primarily driven by our dynamic parents' group, the Friends of Terrington Hall. This year’s highlights included the Summer Ball, a Champagne and Canapés evening, Burns Night, and the Christmas Fair. As a volunteer effort with no paid staff, these events bring the entire school family together and the funds raised provide special enhancements for the children.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2025

CHARITY OBJECTIVES AND ACTIVITIES (continued)

Grant Making Policy

Grants, scholarships and bursaries are awarded by the Governors, in consultation with the Head, on a means-tested basis, through the Bursary Policy process. Various discounts are given to children of the clergy, the armed forces, siblings, ex pupils and staff.

ACHIEVEMENTS AND PERFORMANCE

Academic performance lies at the heart of the School’s endeavours. To this end, quality teaching and learning, accurate academic assessment of academic performance and a corresponding record of pupils’ academic achievements are core to our provision.

Terrington Hall uses a variety of assessments to inform teaching and learning. To achieve this, we use the suite of online and paper-based assessment tools offered by GL Assessment in the autumn term, and for some year groups in late spring. These assessments are intended to be used by teachers to facilitate pupil progress and the evaluation of that progress against relevant national standards. We have also developed our own tracking system in English and Maths to monitor progress against this standardised data.

Pupils in Year 8 sit the Common Entrance Exams in English, maths, the sciences, Spanish, French, Latin, geography, history and TPR. Greek and additional maths are also examined as optional subjects for a small number of pupils.

Below is a table of the number of each CE grade awarded to pupils at the end of each of the last four academic school years.

Percentage
of all grades		 A* A B C and below
2024-25 16 26 46 12
2023-24 23 22 33 21
2022-23 26 27 32 15
2021-22 15 25 43 16

Pupils at Terrington Hall are prepared for entry to a number of different schools. Terrington Hall’s curriculum is designed to provide our pupils with a continuous learning experience throughout, but with the aim of pupils leaving for 13+ senior schools.

Pupils are prepared for entry and/or scholarship or exhibition awards to senior schools at 13+. Below is a table of the number of these awards achieved by pupils at the end of each of the last four academic school years.

Academic Music Drama Art / DT Sport All
Rounder		 Total
2024-25 1 2 3 6
2023-24 5 2 1 4 3 15
2022-23 2 1 1 1 6 11
2021-22 1 2 3 6

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2025

ACHIEVEMENTS AND PERFORMANCE (continued)

All Year 8 leaving pupils were successful in securing their first choice of senior school. Destinations in the past 5 years include Ampleforth College, Barnard Castle School, Bootham School, Durham School, Malton School, The Mount School, Oundle School, Pocklington School, Queen Margaret’s School, Repton School, Ripon Grammar School, St Peter’s School, Scarborough College, Sedbergh School, Shrewsbury School and Uppingham School.

Our 15 Year 8 leavers achieved 6 scholarships to their senior school. The leavers’ Common Entrance average pass rate was Grade B with 100% of pupils passing their Common Entrance.

FINANCIAL REVIEW

The Governors acknowledge that the 2024/25 financial year has presented significant challenges for the independent school sector. The combination of inflation, elevated interest rates, and increased operational costs has required continued prudent financial management. The removal of business rates relief and the imposition of VAT on school fees from 1 January 2025 further compound the financial pressures on the sector. Despite these ‘headwinds’, the School has navigated the year effectively through rigorous cost control, strategic resource allocation, and proactive financial planning.

Management and Governors have continued to monitor financial performance closely, reviewing budgets and forecasts in response to the evolving economic landscape. This ongoing vigilance has ensured that necessary mitigating measures have been implemented to safeguard the School’s financial stability.

In terms of liquidity, cash flow remains strong and resilient, due to strategic and responsible financial management. While the School maintains modest overdraft facilities with the Bank, these have not been utilised in recent years. An existing loan facility, initially secured as a precautionary measure during the Covid-19 period, remains in place, and its terms have been reviewed in light of prevailing financial conditions.

The total funds of the school as of 31 August 2025 stand at £860,791 (2024 - £775,660), of which £27,792 (2024 - £13,840) are held in restricted funds.

The Governors maintain a policy that free reserves (those funds not tied up in fixed assets or restricted funds) should equate to at least two months of expenditure on unrestricted charitable activities, which currently equates to £426,000. At this level, the Governors believe the school would be in a position to sustain its activities in the event of a significant downturn in income.

At present, free reserves remain below this threshold, with a deficit of £98,989. The Governors continue to work towards strengthening reserves through a combination of cost efficiencies, targeted revenue generation, and careful financial stewardship. Contingency plans are in place to manage the financial impact of the VAT changes, and the school is actively exploring measures to offset these additional costs while maintaining its commitment to providing high-quality education.

The Governors remain committed to ensuring the long-term financial resilience of the School and will continue to take all necessary actions to navigate the challenges ahead while upholding the School’s ethos and values.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2025

PRINCIPAL RISKS AND UNCERTAINTIES

During the year, the School's Governors have examined the principal areas of Terrington Hall Trust’s operations and considered the major risks in each of these areas. In the opinion of the Governors, the School has established systems which, under normal circumstances, should allow these risks to be managed to an acceptable level in its day-to-day operation. A comprehensive Risk Register is maintained and is being further developed to form the basis of a regular annual review of mitigation measures necessary to minimise or control risks to an acceptable level.

The Governors continue to keep Terrington Hall Trust’s activities under review, particularly with regard to any major risks that may arise from time to time, and to monitor the effectiveness of the system of internal controls and other viable means, including insurance cover where appropriate, by which those risks identified by the Governors can best be managed and mitigated. For example, in response to the global inflationary environment and the political and economic ‘Headwinds” the School has a well-developed Board Long Term Financial Planning architecture for scenario planning and longer-term financial decision-making. This team has been closely monitoring the political, economic and legal landscape, and in response, has continued to review all strategic options to ensure continued financial sustainability. As part of this planning process, Governors have been evaluating the risks and benefits of merger into a schools group as a key strategic option for long term financial sustainability.

The Senior Management Team is, through its day-to-day operational management of the charity, responsible for managing and controlling risk in line with the approved policy and framework agreed by the Board.

The key controls used by Terrington Hall Trust include:

Health and Safety issues are considered at regular meetings of the School Health and Safety Committee; a designated Governor is appointed to the committee, who reports to the Board.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2025

PLANS FOR FUTURE PERIODS

On 12[th] April 2026, the charity signed a merger deed with Sedbergh School. The agreement is subject to approval from the Department of Education and is expected to complete on 31 May 2026.

On completion the assets and liabilities of the charity will be transferred to Sedbergh School and all employees will be transferred under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”).

Following completion of the merger with Sedbergh School, the Board of Governors will take the necessary steps to wind up the charity as soon as is reasonably practicable, with the intention that such a process will be completed within 18 months of completion.

Terrington Hall will continue to operate under its’ current name and within its’ current premises. The school will continue to be managed by the school’s leadership team with oversight and support from Sedbergh School’s board and leadership team.

A robust 18-month process was undertaken by the Board in order to assess risks, benefits and the suitability of potential partners. The benefits of merger to Terrington Hall will be;

The Sedbergh Schools Group was chosen, out of a number of prospective partners, for the following reasons:

Two legacy governors of Terrington Hall will participate at group board level, and Terrington will benefit from a local governance committee consisting of group governors and local committee members. The Board looks forward to realising the opportunities arising from our partnership with Sedbergh Schools Group.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2025

STATEMENT OF TRUSTEES’ AND GOVERNORS’ RESPONSIBILITIES

The Governors (who are also the directors and trustees of the Terrington Hall Trust Limited for the purposes of company law) are responsible for preparing the Annual Report and financial statements in accordance with law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Governing Body to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company at the end of the year and of its financial activities for that year. In preparing those financial statements the Governors are required to:

The Governors are responsible for keeping adequate accounting records which disclose with reasonable accuracy the financial position of the charity and which enables them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE TO OUR AUDITORS

In so far as the Governors are aware at the time of approving our Governors’ Annual Report:

there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the Company’s auditor is unaware, and the Governors, having made enquires of fellow directors and the Company auditor that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Approved by the Board of Governors at its meeting on 21 May 2026 and signed on its behalf by:

K E Lamont Trustee

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

TERRINGTON HALL TRUST LIMITED

Opinion

We have audited the financial statements of Terrington Hall Trust Limited (the 'School') for the year ended 31 August 2025, which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement and Notes to the Financial Statements, 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 FRS 102 Section 1A '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 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 School 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.

Emphasis of matter – financial statements prepared on a basis other than going concern

We draw your attention to notes 1 and 22 in the financial statements which explain that, following the agreement to transfer the operation, assets and liabilities of the Charitable Company and the subsequent intention to dissolve it, the Governors do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern. Our opinion is not modified in respect of this matter.

Other information

The other information comprises the information included in the Governors’ annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

TERRINGTON HALL TRUST LIMITED

Opinion on other matter prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the School and its environment obtained in the course of the audit, we have not identified material misstatements in the Governors' Annual Report.

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

Responsibilities of Governors

As explained more fully in the Governors’ responsibilities statement set out on page 12, 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 School'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 School or to cease operations, or have 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.

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:

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

TERRINGTON HALL TRUST LIMITED

Auditor’s responsibilities for the audit of the financial statements (continued)

In response to the risk of irregularities and non-compliance with laws and regulations and risk of fraud, we designed procedures which included but were not limited to: sample testing on the posting of journals, proof in total testing of fee income, detailed substantive testing on the completeness of other sources of income, reviewing regulatory correspondence and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations. These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion, or the provision of intentional misrepresentations. We are not responsible for preventing fraud and cannot be expected to detect all fraud.

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 auditor's report. We are not responsible for preventing fraud and cannot be expected to detect all fraud.

15

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

TERRINGTON HALL TRUST LIMITED

Use of our report

This report is made solely to the School’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 School’s members 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 School and the School’s members as a body, for our audit work, for this report, or for the opinions we have formed.

...................................... Sarah Wearing (Senior Statutory Auditor) For and on behalf of HPH, Statutory Auditor

54 Bootham YORK YO30 7XZ

22 May 2026

16

TERRINGTON HALL TRUST LIMITED STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2025

Unrestricted
Note
Funds
£
Income and endowments from:
Donations
715
Charitable activities
School fees
4
2,420,875
Other income
4
233,637
Other trading activities
5
-
Investment income
22,623
Total income
£ 2,677,850
Expenditure on:
Costs of raising funds
6
54,414
Charitable activities
6
2,559,751
Total expenditure
6
£ 2,614,165
Net expenditure
63,685
Transfers between funds
7,494
Net movement in funds
71,179
Reconciliation of funds:
Total funds brought forward
761,820
Total funds carried forward
£ 832,999		 Restricted
Funds
£
65,000
-
-
37,517
-
£ 102,517
23,349
57,722
£ 81,071
21,446
(7,494)
13,952
13,840
£ 27,792		 Total
2025
£
65,715
2,420,875
233,637
37,517
22,623
£ 2,780,367
77,763
2,617,473
£ 2,695,236
85,131
-
85,131
775,660
£ 860,791		 Total
2024
£
-
2,465,130
201,501
9,258
-
£ 2,675,889
27,680
2,760,904
£ 2,788,584
(112,695)
-
(112,695)
888,355
£ 775,660

The notes on pages 20 to 29 form part of these financial statements. Income and net movement in funds derive wholly from continuing operations.

17

TERRINGTON HALL TRUST LIMITED BALANCE SHEET AS AT 31 AUGUST 2025

Company number: 01193407

Note
£
£
Fixed assets
Tangible fixed assets
8
931,988
Current assets
Stocks
9
6,305
Debtors
10
239,645
Cash at bank and in hand
21
974,904
1,220,854
11
(965,238)
Net current assets
255,616
Total assets less current liabilities
1,187,604
12
(326,813)
Total net assets
£ 860,791
The funds of the charity
Unrestricted funds
14
832,999
Restricted funds
15
27,792
Total charity funds
£ 860,791
2025
Creditors:
amounts
falling
due
within one year
Creditors:
amounts
falling
due
after more than one year		 £
£
984,987
8,824
94,851
1,392,450
1,496,125
(1,110,771)
385,354
1,370,341
(594,681)
£ 775,660
761,820
13,840
£ 775,660
2024		 £
£
984,987
8,824
94,851
1,392,450
1,496,125
(1,110,771)
385,354
1,370,341
(594,681)
£ 775,660
761,820
13,840
£ 775,660
2024
1,370,341
(594,681)
£ 775,660
761,820
13,840
£ 775,660

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

Approved by the Board on 21 May 2026 and signed on their behalf by:

K Lamont Governor

R L Cordingley Governor

The notes on pages 20 to 29 form part of these financial statements.

18

TERRINGTON HALL TRUST LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2025

Note
Net cash (used in)/provided by
operating activities
20
Cash flow from investing activities:
Purchase of tangible fixed assets
Proceeds from sale of fixed assets
Interest received
Cash flow from financing activities:
Repayments of borrowings
Net cash used in financing activities
21
Change in cash and cash equivalents in
the year
Cash and cash equivalents at beginning
of the year
Cash and cash equivalents at end of the
year
Net cash used in investing activities		 £
£
(424,365)
(24,338)
23,030
22,623
21,315
(14,496)
(14,496)
(417,546)
1,392,450
£974,904
2025		 £
£
1,105,405
(133,617)
(133,617)
(14,496)
(14,496)
957,292
435,158
£1,392,450
2024		 £
£
1,105,405
(133,617)
(133,617)
(14,496)
(14,496)
957,292
435,158
£1,392,450
2024
957,292
435,158
£1,392,450

The notes on pages 20 to 29 form part of these financial statements.

19

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

1 ACCOUNTING POLICIES

Legal entity

Terrington Hall Trust Limited is regulated by the Charities Commission (532362), limited by guarantee and is registered in England and Wales. The address of the registered office and principal place of business is Terrington Hall Trust Limited, Terrington, York, YO60 6PR.

In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

Basis of preparation

The financial statements have been prepared in accordance with 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 (FRS102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and the Companies Act 2006.

The charity meets the definition of a public benefit entity under FRS102.

Going concern

As referred to in the trustees report and note 22, the school has entered into an agreement with Sedbergh School to transfer, as a going concern, the school and its operations, assets and liabilities on 31 May 2026. As a result, the legal entity of Terrington Hall Trust Limited will have no residual operations or assets and therefore is expected to become dormant before being dissolved. For that reason the Governors conclude that it is not appropriate to continue to adopt the going concern basis in preparing the financial statements but that no accounting adjustment are necessary to reflect a basis other than going concern.

Fees and other income

Parental contributions, charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the School.

Donations

Donations receivable for the general purpose of the School are credited to "unrestricted funds". Donations for purposes restricted by the wishes of the donor are taken to "restricted funds" where these wishes are legally binding on the Trustees.

Other trading activities

All other incoming resources are included in the SOFA when the School is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer-term liabilities. Expenditure attributable to more than one cost category is apportioned to them on the basis of the estimated amount attributable to each activity in the year, either by reference to staff time or the use made of the underlying assets, as appropriate. The irrecoverable element of VAT is included with the item of expense to which it relates.

Bursaries and allowances from unrestricted funds towards school fees are treated as a reduction in those

fees.

Governance costs are costs associated with constitutional and statutory requirements. They include audit fees and estimated costs linked to the strategic management of the School. Support costs are those incurred directly in support of expenditure on the objects of the School.

20

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

1 ACCOUNTING POLICIES (continued)

Tangible fixed assets

Alteration and improvement expenditure on freehold property is treated as capital if it results in additional floor area for use of the School or if it significantly enhances the property. Otherwise it is charged to revenue as maintenance of buildings.

Depreciation

Depreciation is calculated to write off the cost of fixed assets over their expected useful lives on a straight line basis. The rates used are as follows:

Freehold property 2% per annum straight line Freehold property - Integral features 5% per annum straight line Furniture, fittings and equipment 10% per annum straight line Furniture, fittings and equipment - IT 25% per annum straight line Motor vehicles 25% per annum straight line

Items costing less than £3,000 are written off as an expense as acquired. Assets are depreciated once brought into use.

Stocks

Stocks are stated at the lower of cost and net realisable value.

Debtors

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

Cash at bank and in hand

Cash at bank and cash in hand includes cash and any short term deposit accounts with a maturity of three months or less from the date of opening.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Where the School has received tuition fees in advance the amount is treated as deferred income until the pupil joins the School whereupon the fees for each school term are charged against the remaining balance and taken into income. Any shortfall is treated as a deduction from school fee income and any excess accrued is treated as additional school income.

Financial instruments

The charity 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.

Operating leases

Rentals payable under operating leases are charged in the SOFA on a straight line basis over the lease term.

21

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

1 ACCOUNTING POLICIES (continued)

Pension schemes

The charitable company contributed to the Teachers' Pension Defined Benefit Scheme up to 31 August 2024 when they left the scheme. Contributions were at rates set by the scheme actuary and advised to the board by the scheme administrator. The scheme was a multi-employer pension scheme and it was not possible to identify the assets and liabilities of the scheme which are attributable to the School. The scheme was therefore accounted for as a defined contribution scheme. The charitable company also contributes to a defined contribution scheme for administration staff and now teachers following leaving the Teachers' Pension Scheme. Contributions are charged to the income and expenditure account in the year in which they accrue.

Funds structure

Funds comprise unrestricted funds which have not been designated for other purposes, and are available for use at the discretion of the Trustees in accordance with the charitable objectives. Designated funds are unrestricted funds earmarked by the Trustees for particular purposes. Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

2 TAXATION

As a registered charity, Terrington Hall Trust Limited is exempt from the tax on income falling within sections 466 to 493 of the Corporation Tax Act 2010 to the extent that this is applied to its charitable objects. No tax charges have arisen in the Company.

3
OPERATING SURPLUS
The surplus for the year is stated after charging:
Depreciation
Operating lease - equipment
Auditors' remuneration
Other fees paid to auditor
4
INCOME FROM CHARITABLE ACTIVITIES
School fees
Gross fees
Less: Scholarships and allowances
Other income
Recharges to pupils for education and sports requisites
School shop sales
Other income
Profit on disposal of fixed assets
All income from charitable activities relates to unrestricted funds.
5
OTHER TRADING ACTIVITIES
Fundraising activities		 2025
£
57,337
34,373
6,056
5,903
2,801,077
(380,202)
£ 2,420,875
224,141
2,291
4,174
3,031
£ 233,637
37,517
£ 37,517		 2024
£
57,979
26,313
6,631
2,211
2,884,549
(419,419)
£ 2,465,130
195,029
5,600
872
-
£ 201,501
9,258
£ 9,258

£37,517 of other trading activities relates to restricted funds (2024: £9,258).

22

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

6 ANALYSIS OF TOTAL EXPENDITURE

Staff
Other
Total
costs
costs
Depreciation
2025
£
£
£
£
Cost of generating funds
Marketing and advertising
-
27,000
-
27,000
Fundraising costs
-
23,349
-
23,349
Bank interest
-
1,612
-
1,612
Bad debts provided for /
written off
-
25,802
-
25,802
-
77,763
-
77,763
£23,349 (2024: £11,038) of expenditure on generating funds relates to restricted funds.
Charitable activities
Teaching costs
1,373,883
311,337
12,320
1,697,540
Welfare
166,418
107,094
4,622
278,134
Premises
62,297
247,460
40,224
349,981
Support costs
166,317
113,371
171
279,859
Governance costs
-
11,959
-
11,959
1,768,915
791,221
57,337
2,617,473
Total expenditure
£ 1,768,915
£ 868,984
£ 57,337
£ 2,695,236		 Total
2025
£
27,000
23,349
1,612
25,802		 Total
2024
£
19,010
7,598
703
369
77,763 27,680
1,823,850
267,705
349,499
311,008
8,842
2,617,473 2,760,904
£ 2,695,236 £ 2,788,584

£57,904 (2024: £113,039) of the expenditure on charitable activities relates to restricted funds.

Governance costs include:
Auditors' remuneration:
for audit services
for other services
7
STAFF COSTS
Wages and salaries
Social security costs
Other pension costs
Other costs		 2025
£
6,056
5,903		 2024
£
6,631
2,211
£ 11,959 £ 8,842
1,421,140
145,138
176,201
26,436		 1,405,439
134,042
251,850
76,536
£ 1,768,915 £ 1,867,867
Teaching
29
28
Welfare
7
7
Support
4
4
40
39
The average monthly head count was 51 staff (2024: 48) and the average monthly number of full-time
equivalent employees during the year were as follows:		 Teaching
29
28
Welfare
7
7
Support
4
4
40
39
The average monthly head count was 51 staff (2024: 48) and the average monthly number of full-time
equivalent employees during the year were as follows:		 Teaching
29
28
Welfare
7
7
Support
4
4
40
39
The average monthly head count was 51 staff (2024: 48) and the average monthly number of full-time
equivalent employees during the year were as follows:
40 39

23

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

7 STAFF COSTS (continued)

No employees received benefits between £60,000 - £69,999 during the year (2024: none). No employees received benefits between £70,000 - £79,999 during the year (2024: none). One employee received benefits between £80,000 - £89,999 during the year (2024: one).

No governors nor any persons connected with them received any remuneration or other benefits from the school for their services to the charity nor were reimbursed for travel expenses during this or the

The key management personnel of the Charity, comprise the governors, the Head Teacher, Deputy Heads -Pastoral and Academic and Bursar. The total employee benefits of the paid key management personnel of the Charity were £317,797 (2024: £322,357).

8 TANGIBLE FIXED ASSETS

Cost:
At 1 September 2024
Additions
Disposals
At 31 August 2025
Depreciation:
At 1 September 2024
Charge for the year
Disposals
At 31 August 2025
Net book values:
31 August 2025
31 August 2024		 Freehold
property
£
1,807,108
19,238
(13,048)
1,813,298
874,623
40,224
(523)
914,324
£ 898,974
£ 932,485		 Furniture,
fixtures and
equipment
£
383,918
5,100
(9,282)
379,736
340,437
9,173
(2,275)
347,335
£ 32,401
£ 43,481		 Motor
vehicles
£
45,944
-
(14,184)
31,760
36,923
7,940
(13,716)
31,147
£ 613
£ 9,021		 Total
£
2,236,970
24,338
(36,514)
2,224,794
1,251,983
57,337
(16,514)
1,292,806
£ 931,988
£ 984,987

The Governors consider the market value of the freehold property to be considerably in excess of its book value. Due to the costs involved in obtaining a professional valuation it has not been practicable to quantify the excess.

All of the tangible fixed assets relate to unrestricted funds.

All of the tangible fixed assets relate to unrestricted funds.
to quantify the excess.
9
STOCKS
Stock of £951 relates to restricted funds in 2025 (£1,507 in 2024).
Closing stock		 2025
£
£ 6,305		 2024
£
£ 8,824

24

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

**10 ** DEBTORS 2025 2024
£ £
Trade debtors 158,152 55,599
Other debtors 20,315 6,297
Prepayments and accrued income 61,178 32,955
£ 239,645 £ 94,851
Debtors of £nil relate to restricted funds in 2025 (£2,803 in 2024).
Following the introduction of VAT on school fees, included in trade debtors is the VAT on school fees for
the Autumn term for 2025.
**11 ** CREDITORS: amounts falling due within one year
Fees received in advance 354,659 535,438
Fees in advance scheme 265,240 310,099
Refundable deposits 65,400 57,600
Trade creditors 62,262 77,825
Other creditors 9,039 16,149
Taxation and social security 162,177 27,908
Pension - 28,711
Bank loan and overdraft 14,498 12,576
Accruals 31,963 44,465
£ 965,238 £ 1,110,771
**12 ** CREDITORS: amounts falling due after one year
Bank loan 29,990 44,631
Fees in advance scheme 269,823 523,050
Other creditors 27,000 27,000
£ 326,813 £ 594,681
Amounts due after more than one year:
Repayable between 1-2 years 183,758 12,576
Repayable between 2 - 5 years 143,055 582,105
£ 326,813 £ 594,681

All creditors relate to unrestricted funds.

The bank loan facilities are secured by a first legal charge dated 15 May 2014 over freehold property known as Terrington Hall School, Terrington, York, YO60 6PR, and a debenture (including charged land) dated 15 May 2014. The loan facilities represent 5% (2024: 6%) of the net book value of the freehold

t

The interest rates on the loans are 3.46% or 3% over base.

Following the introduction of VAT on school fees, included in taxation and social security costs is the VAT on school fees for the Autumn term for 2025.

25

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

**13 ** DEFERRED INCOME 2025 2024
£ £
Fees received in advance
Balance at 1 September 535,438 333,808
Released to statement of financial activities (535,438) (333,808)
Deferred in the period 354,659 535,438
Balance at 31 August £ 354,659 £ 535,438
Fees in advance scheme
Balance at 1 September 833,149 -
Released to statement of financial activities (228,086) -
- -
Deferred in the period 535,063 833,149
Balance at 31 August £ 535,063 £ 833,149
**14 ** UNRESTRICTED FUNDS
Balance at Balance at
1 Sept. 2024 Income Expended Transfers 31 Aug. 2025
£ £ £ £ £
Designated funds
Capital fund 115,363 - - - 115,363
Undesignated funds
General 646,457 2,677,850 (2,614,165) 7,494 717,636
£ 761,820 £ 2,677,850 £ (2,614,165) £ 7,494 £ 832,999
Balance at Balance at
1 Sept. 2023 Income Expended Transfers 31 Aug. 2024
£ £ £ £ £
Designated funds
Capital fund 115,363 - - - 115,363
Undesignated funds
General 653,346 2,666,510 (2,667,254) (6,145) 646,457
£ 768,709 £ 2,666,510 £ (2,667,254) £ (6,145) £ 761,820

The unrestricted school funds are held to finance the freehold property and to cover normal fluctuations in working capital, split as designated between freehold property and general reserves.

The capital fund represents the capital cost of the original land and buildings.

26

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

15 RESTRICTED FUNDS

RESTRICTED FUNDS
Bursary fund
Ukranian support fund
Bursary fund
Ukranian support fund
Terrington Hall Parents' Social
and Fundraising Group fund
Terrington Hall Parents' Social
and Fundraising Group fund		 Balance at
1 Sept. 2024
£
11,245
-
2,595
£ 13,840
Balance at
1 Sept. 2023
£
19,167
97,827
2,652
£ 119,646		 Income
£
37,517
65,000
-
£ 102,517
Income
£
9,379
-
-
£ 9,379		 Expended
£
(23,349)
(55,390)
(2,332)
£ (81,071)
Expended
£
(17,301)
(103,972)
(57)
£ (121,330)		 Transfers
£
(7,494)
-
-		 Balance at
31 Aug. 2025
£
17,919
9,610
263
£ (7,494) £ 27,792
Transfers
£
-
6,145		 Balance at
31 Aug. 2024
£
11,245
-
2,595
£ 6,145 £ 13,840

Terrington Hall Parents' Social and Fundraising Group fund

The Terrington Hall Parents' Social and Fundraising Group fund represents donations and fundraising to purchase specific items.

Bursary fund

This fund relates to grants received for Bursaries for specific purposes and additional teacher support for these pupils.

Ukranian support fund

This fund relates to monies received for supporting Ukranian students.

16 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Net current Long
Tangible (liabilities)/ term 2025
fixed assets assets liabilities Total
£ £ £ £
Unrestricted funds 931,988 227,824 (326,813) 832,999
Restricted funds - 27,792 - 27,792
£ 931,988 £ 255,616 £ (326,813) £ 860,791
Net current Long
Tangible (liabilities)/ term 2024
fixed assets assets liabilities Total
£ £ £ £
Unrestricted funds 984,987 371,514 (594,681) 761,820
Restricted funds - 13,840 - 13,840
£ 984,987 £ 385,354 £ (594,681) £ 775,660

27

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

17 OPERATING LEASE COMMITMENTS

As at 31 August 2025 the charitable company had future minimum lease payments under noncancellable operating as follows:

cancellable operating as follows:
Within one year
Between one and five years
Over 5 years		 2025
£
45,612
109,693
2,082
£ 157,387		 2024
£
33,141
99,787
-
£ 132,928

18 RELATED PARTIES

There were no related party transactions during the year which were not offered on the same terms as the general public.

19 PENSION SCHEMES

The School runs a defined contribution scheme which is used for all staff, following withdrawing from the Teachers' Pension Scheme on 31 August 2024. The pension charge for the year includes contributions payable to the scheme of £176,201 (2024: £24,165). At the year-end £nil (2024: £3,572) was accrued in respect of contributions to this scheme.

The School participated in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff up until 31 August 2024. The pension charge for the year includes contributions payable to the TPS of £nil (2024: £227,685) and at the year-end £nil (2024 - £25,140) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

28

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

20 RECONCILIATION OF NET INCOME TO NET CASH FLOW
FROM OPERATING ACTIVITIES
Net income for the reporting period
Depreciation of tangible fixed assets
Profit on disposal of fixed assets
Loan interest
Interest received
Decrease in stocks
(Increase)/Decrease in debtors
(Decrease)/Increase in creditors
Net cash used in operating activities
21 ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Total cash and cash equivalents
ANALYSIS OF CHANGES IN NET DEBT
At
01-Sep-24
£
Cash
1,392,450
1,392,450
Loans falling due within one year
(15,576)
Loans falling due after more than one year
(71,631)
1,305,243		 2025
£
85,131
57,337
(3,031)
1,778
(22,623)
2,519
(144,794)
(400,682)
£ (424,365)
974,904
£ 974,904
Cash-flows
£
(417,546)
(417,546)
1,922
(14,641)
(430,265)		 2024
£
(112,695)
57,979
-
2,216
-
3,186
44,977
1,109,742
£ 1,105,405
1,392,450
£ 1,392,450
At
31-Aug-25
£
974,904
974,904
(17,498)
(56,990)
900,416

22 POST BALANCE SHEET EVENTS

On 12 April 2026, the charity signed a merger deed with Sedbergh School. The agreement is subject to approval from the Department of Education and is expected to complete on the 31 May 2026.

On completion the assets and liabilities of the charity will be transferred into Sedbergh School and all employees will be transferred under the Transfer of Undertakings (Protection of Employment) Regulations 2006 ("TUPE").

29