**Company registration number 02427105 (England and Wales)**
## **GAD'S HILL SCHOOL**
**(A COMPANY LIMITED BY GUARANTEE)**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 JULY 2025**
## **GAD'S HILL SCHOOL**
## **CONTENTS**
||**Page**|
|---|---|
|Reference and administrative details|1 - 2|
|Governors' report|3 - 14|
|Statement of Governors' responsibilities|15|
|Independent auditor's report on the financial statements|16 - 18|
|Statement of financial activities including income and expenditure account|19 - 20|
|Balance sheet|21|
|Statement of cash flows|22|
|Notes to the financial statements including accounting policies|23 - 39|
## **GAD'S HILL SCHOOL**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
|**Governors**|Mr D Martin, Chair of Governors|
|---|---|
||Mr P Savage, Headmaster|
||Mrs A H Cavalier-Tej|
||Mrs A Clarabut (resigned 22 August 2024)|
||Mrs M Dickens|
||Mr J Durbin|
||Mrs L Gwilliam (resigned 26 June 2025)|
||Mr J Myatt (resigned 26 June 2025)|
||Mr A A O'Brien|
||Mrs D Piralic|
||Mrs M S Taylor|
||Mr C Whittington|
|**Key Management Personnel**|Mr Paul Savage|
||Mr Malcolm Gray|
||Mrs Victoria Grant|
||Miss Samanatha Long|
||Miss Louise Tucker|
||Mrs Julia Hurren|
|**Company registration number**|02427105 (England and Wales)|
|**Charity registered number**|803153|
|**Principal and registered office**|Gad's Hill Place|
||Gravesend Road|
||Higham|
||Kent|
||ME3 7PA|
|**Independent auditor**|Azets Audit Services|
||First Floor|
||River House|
||1 Maidstone Road|
||Sidcup|
||Kent|
||DA14 5RH|
|**Bankers**|HSBC UK Bank PLC|
||84 New Road|
||Gravesend|
||Kent|
||DA11 0AS|
- 1 -
## **GAD'S HILL SCHOOL**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Solicitors**
Stone King LLP Upper Borough Court Upper Borough Walls Bath BA1 1RG dgb Solicitors LLP Captains House Central Avenue Pembroke Chatham Maritime Kent ME4 4UF
- 2 -
## **GAD'S HILL SCHOOL**
## **GOVERNORS' REPORT**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
The Governors are pleased to present their annual Governors' Report together with the Financial Statements of the School for the year ended 31 July 2025. The Governors confirm that the Annual Report and Financial Statements of the Company comply with the current statutory requirements, the requirements of the Company's Governing Document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **Structure, governance and management**
## **CONSTITUTION**
The School is registered as a charitable company limited by guarantee and was set up by a Trust deed.
The School is constituted under a Trust deed and is a registered charity with number 803153.
The charitable objects of the School as set out in the Articles of Association (as amended by Special Resolution dated 28 January 2009) are to advance education and training (including physical training) for the public benefit by provision of a school or schools in the county of Kent, in particular the school known as Gad’s Hill School, Higham, Kent.
## **CODE OF GOVERNANCE**
The Board has recently established a Governance and Nominations Committee (“ **G&NC** ”) and this group has led the Board in undertaking the Association of Governing Bodies of Independent Schools (“ **AGBIS** ”) self-review exercise, which incorporates, and expands upon, the Charity Commission’s Governance Code and SelfAssessment Checklist. Based on these results the Board, through G&NC, is driving forward a review and rationalisation of its committee structure, reporting lines so as to ensure the charity operates as effectively and efficiently as possible, and in accordance with third-sector best practice.
## **METHOD OF APPOINTMENT OR ELECTION OF GOVERNORS**
The management of the School is the responsibility of the Governors who are elected and co-opted under the terms of the Trust deed.
Under the Articles, the Headmaster is a governor. Two governors are appointed by The Dickens Fellowship (one of whom is a member of the Dickens family) and one by election as a Chair or representative of The Friends of Gad’s Hill School (a separate registered charity) representing parents of pupils at the school. The remaining governors are elected at a general meeting and one-third of the elected governors, determined by length of service, retires by rotation each year, and may stand for re-election. Nominations for new governors are proposed based on adding specialist skills to the governing body e.g. legal, financial, educational, medical, estates expertise and so on; this nominations process is led by the G&NC.
## **POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF GOVERNORS**
New governors are formally inducted into their roles through a series of briefings by the Chair, Headmaster, and Clerk to the Governing Body, along with other members of the School’s senior leadership team (“ **SLT** ”) as appropriate. Governors are encouraged to visit the school regularly and are given an insight into previous meetings of the Board via minutes and the accompanying reports. The governors are offered further training through AGBIS and are informed of seminars held throughout the period that are thought to be beneficial to their governance.
## **ORGANISATIONAL STRUCTURE AND DECISION MAKING**
The governors, as trustees of the charity and directors of the company, are legally responsible for the overall management and control of the school. They meet a minimum of four times per year, normally once per academic term and once at the commencement of the new school year. There are various sub-committees which meet as required to deal with areas of the School. The governors determine the general policy of the School. The day-today management of the School is delegated to the Headmaster
- 3 -
## **GAD'S HILL SCHOOL**
## **GOVERNORS' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
## **Structure, governance and management (continued)**
## **KEY MANAGEMENT PERSONNEL AND REMUNERATION**
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including all governors of the charity. Remuneration details are disclosed in these financial statements. Aside from Governors, the other key management personnel are:
- Mr Paul Savage, Headmaster
- Mr Malcolm Gray, Bursar, Clerk to the Governing Body and Company Secretary (from March 2024)
- B Golding, Bursar, Clerk to the Governing Body and Company Secretary (to November 2023)
- Mrs Victoria Grant, Head of Lower School
- Miss Samantha Long, Head of Lower School
- Miss Louise Tucker, Head of Upper School
- Mrs Julia Hurren, Director of Inclusion
The Board of Governors is responsible for approving the remuneration levels of all employees. The unremunerated governors approve the Headmaster’s remuneration, the Headmaster being the only governor who receives remuneration for his role overseeing the day-to-day running of the school. The Governors’ Staff Salary Review Board (“ **SSRB** ”) sets the salaries individually for the Headmaster and Bursar. The other key management personnel are each paid on one of two SLT incremental pay scales set by the SSRB.
## **OTHER RELATIONSHIPS**
The Headmaster is a member of the Independent Schools Association (“ **ISA** ”), and the School is a member of the Independent Schools’ Bursars Association (“ **ISBA** ”) and The Association of Governing Bodies in Independent Education (“ **AGBIS** ”). In addition to providing crucial support to the School and its various leaders, these organisations represent the independent education sector at a national level in contact with the Government and others. Several of our teachers are members of the Chartered College of Teaching (“ **CCT** ”).
- 4 -
## **GAD'S HILL SCHOOL**
## **GOVERNORS' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
## **Objectives and activities**
## **Objects and aims**
## **OBJECTS AND AIMS**
## **a. Policies and objectives**
## **Our Mission**
Our mission is to enable our students to enjoy school, to achieve good academic qualifications and to develop those personal attributes and qualities which will guide them on their journey through life.
## **Our Vision**
Our vision is to be the first-choice independent school for families in Kent who value a well-rounded education for their child. It is our intention that our students leave Gad’s Hill School as confident, mature, articulate, pleasant and self-reliant young people who are well equipped to enter the world through a university education or career of their choice.
## **Our Values**
At Gad’s Hill School we promote ‘The Greatest of Expectations’:
- Ambition & Success
- Community & Compassion
- Growth & Support
- Adventure & Opportunity
- Confidence & Responsibility
- Creativity & Expression
These six strands of Expectations are at the heart of all we do as a school. They form a contract with our pupils and their parents, in that we commit to offer opportunities for every child to explore and develop themselves within these areas, and in return we expect all our pupils to engage with all aspects of school life. These are Expectations, therefore, both of the School and of our pupils.
We value ourselves, our community and our environment by demonstrating the Great Values:
Gratitude - We appreciate our and each other’s worth and the opportunities we have. Respect - We value ourselves and each other; showing courtesy, listening, and following rules. Equality - We value our diversity and treat ourselves and each other fairly and with kindness. Aspiration - We make choices which support ourselves and each other in being the best we can. Tenacity - We show curiosity, resilience, and determination in all that we do.
## **Our Ethos**
Children do well when they are happy at school and at Gad’s Hill we pride ourselves on providing a friendly environment, where enthusiasm and hard work are the foundations for achieving success.
There is more to life than exam results alone and while Gad’s enjoys the reputation of receiving good GCSE results this is not our sole focus. We want to offer our pupils a foundation in life, working with them to become confident, motivated and articulate young people ready for the next stage in their education and life beyond.
- 5 -
## **GAD'S HILL SCHOOL**
## **GOVERNORS' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **PUBLIC BENEFIT**
The school educated an average of 170 primary and 178 secondary-age pupils during 2024/25 at no cost to the public purse (except for “Free Early Education” funding available to all providers). The absolute minimum it would have cost public funds to educate these pupils at the Government’s minimum per pupil funding levels would be £2.5M (2024: £1.9M). The real savings to the public purse, however, are considerably greater when the value of capital grants, VAT reclaims and other items are taken into account. Our staff live predominantly in Kent and Medway and hence our support to the local economy as the employer of nearly 100 people is significant. Support of our local economy has increased further by choosing local suppliers for food produce wherever possible, taking more trips to local sites and to local attractions.
- 6 -
## **GAD'S HILL SCHOOL**
## **GOVERNORS' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
## **Strategic report**
## **ACHIEVEMENTS AND PERFORMANCE**
## **a. 2024/25: The Year in Review**
In 2024/25, the school pursued a broad range of strategic objectives, which have been grouped into the following thematic priorities:
1. Academic Excellence: Improving writing outcomes in KS2 and KS1, enhancing GCSE pass rates and value added, and reviewing teaching and learning in core subjects.
2. Inclusive and Effective Provision: Monitoring interventions, reviewing SEND/EDI data, and ensuring accessibility of learning environments and resources.
3. Curriculum and Pedagogy Development: Updating humanities curriculum, developing Autism support pedagogy, and promoting creativity in Early Years.
4. Wellbeing and Behaviour: Implementing the Greatest of Expectations wellbeing framework, improving behaviour management, and increasing attendance.
5. Community and Parental Engagement: Enhancing parental engagement and strengthening community links. 6. Enrichment and Leadership: Expanding extracurricular and leadership opportunities, developing the CCF programme, and encouraging democratic participation.
7. Reading, Writing and Communication: Promoting reading and writing engagement and improving speech and language provision.
## 1. Academic Excellence
Throughout 2024–25, both the Upper and Lower Schools made meaningful strides in raising academic standards. In the Upper School, subject-specific action plans were implemented in response to GCSE performance data, with a focus on improving outcomes in DT, Spanish, Science, PE, and English. Learning walks, student voice activities, and book reviews were used to monitor progress and inform teaching. Meanwhile, the Lower School embedded the RWI Spelling programme and Power of Reading to strengthen writing outcomes, particularly in KS2. Actions towards improving academic excellence led to very strong outcomes in both the Lower and Upper School (see _Academic Performance_ section below).
## 2. Inclusive and Effective Provision
Whole staff CPD focused on strategies to support all through universal design for learning and adaptive teaching, with an additional focus on Autism and overwhelm friendly approaches. Teaching Assistants received weekly CPD across core SEND areas, with a split in January to EYFS TAs receiving separate targeted CPD.
A new “Provision Menu” was introduced to support targeting interventions with outlined age-appropriate interventions and example targets. Provision maps were produced and reviewed termly as part of the whole school assessment cycle.
The Lower School demonstrated a proactive and structured approach to inclusive education. Provision maps were reviewed termly through assessment meetings and entry/exit data was tracked using Insight. Upper School assessment meetings with the Heads of Department for English, Maths, and Science were established to develop further consideration of subject data and targeted response. Learning reviews also added to review of inclusive practices.
Detailed evidence of EDI data analysis and specific SEND outcomes will continue to be a focus in the next academic year. Nonetheless, the systems in place reflect a strong commitment to inclusive and accessible learning environments.
- 7 -
## **GAD'S HILL SCHOOL**
## **GOVERNORS' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
## **Strategic Report (continued)**
## 3. Curriculum and Pedagogy Development
Curriculum development was a clear focus in the Lower School, where the humanities curriculum underwent a structured review. Staff surveys, CPD sessions, and updates to knowledge organisers and topic overviews ensured that content was both progressive and engaging. In the Upper School, the introduction of the GREAT Programme marked a significant pedagogical shift, embedding consistent expectations around behaviour and independent study. The emphasis on curriculum quality and staff collaboration across both phases reflects a positive trajectory in teaching and learning.
## 4. Wellbeing and Behaviour
The school made strong progress in embedding a culture of wellbeing and high expectations. The Upper School successfully rolled out the “Greatest of Expectations” framework, with clear visual guidance, consistent messaging, and regular review through learning walks and phase meetings. Students responded positively, and staff engagement was high. In the Lower School, handwriting and presentation standards were reinforced, and outdoor provision was enhanced through structured play activities and leadership roles. In 2025/26, we will seek to evidence through data collection and pupil voice surveys the impact that these initiatives have had in consolidating an aspirational school environment.
## 5. Community and Parental Engagement
Parental and community engagement was a notable strength this year, particularly in the Lower School. A wide range of initiatives - including parent workshops, classroom visits, newsletters, and Teams updates - helped foster strong home-school partnerships. Community links were expanded through partnerships with care homes, charities, and local organisations. The school significantly developed its private hire provision and our facilities have been used by a number of local sports teams, drama schools and youth groups. In the Upper School, the House System was revitalised with more diverse events and a review of the points system, and the School Council played a more visible role. The Independent Schools Inspectorate inspection in autumn 2024 highlighted the high regard for the school amongst parents.
## 6. Enrichment and Leadership
The school continued to broaden enrichment and leadership opportunities across both phases. In the Upper School, the CCF programme was expanded to include adventurous activities such as mountain biking and climbing, and efforts were made to align it with the GREAT framework. Student leadership was promoted through School Council, House events, and assemblies. In the Lower School, roles such as Play Leaders, Heads of School, and Ambassadors were formalised, and pupils were actively involved in leading activities and events. These developments have helped embed a culture of responsibility, initiative, and personal growth.
## 7. Reading, Writing and Communication
There was a strong and consistent focus on developing reading and writing across the school. In the Upper School, the reading room was enhanced, DEAR lessons were embedded, and students were encouraged to participate in writing competitions and book clubs. In the Lower School, the RWI Phonics and Power of Reading programmes were further embedded, and CGP comprehension books were introduced to support reading fluency and understanding. EYFS provision supported early writing and phonics application. The breadth of literacy-focused initiatives reflects a clear commitment to communication and language development.
- 8 -
## **GAD'S HILL SCHOOL**
## **GOVERNORS' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **Strategic Report (continued)**
## **b. Useful Information PUPIL NUMBERS, CLASS SIZES AND FEES**
Average pupil numbers and class sizes for the year are set out below along with the fees charged.
|||||||
|---|---|---|---|---|---|
|**2024/25**||||||
|**Section**|**Year Group**|**Average**||**Standard Fee Level**||
|||**Pupils**|**Class Size **|**Termly**|**Annual**|
|**Kindergarten**|KN(Nursery)|26|26*|£4,245|£12,735|
||KR(Reception)|14|14|£4,941|£14,823|
||K1(Year 1)|20|10|£5,808|£17,425|
||K2(Year 2)|25|12|£5,808|£17,425|
||**Overall (Nursery to**
**Year 2)**|**85**|**12**|||
||**_Nursery to Year 2_**
**_2023/24_**|**_88_**|**_16_**|||
|**Juniors**|J3(Year 3)|20|10|£6,151|£18,455|
||J4(Year 4)|19|10|£6,151|£18,455|
||J5(Year 5)|20|17|£6,151|£18,455|
||Remove(Year 6)|36|18|£6,151|£18,455|
||**Overall(Years 3 to 6)**|**95**|**14**|||
||**_Years 3 to 6 2023/24_**|**_106_**|**_14_**|||
|**Seniors**|Shell(Year 7)|28|14|£6,600|£19,800|
||Lower 4th (Year 8)|37|18|£6,600|£19,800|
||Upper 4th (Year 9)|44|13|£7,164|£21,493|
||Lower 5th (Year 10)|35|12|£7,164|£21,493|
||Upper 5th (Year 11)|34|11|£7,164|£21,493|
||**Overall(Years 7 to 11)**|**178**|**14**|||
||**_Years 7 to 11_**
**_2023/24_**|**_190_**|**_15_**|||
|**Whole School**||**357**|**14**|||
|**_Whole School 2023/24_**||**_383_**|**_15_**|||
* N.B. Nursery pupils attend for varying numbers of sessions each week and this is managed so as to ensure that there are never more than 20 nursery pupils in a class at any one time, and always with at least the required number of staff, if not more.
## ACADEMIC PERFORMANCE
Gad’s Hill School is proud to celebrate a significant increase in the number of top GCSE grades achieved by its students this year, with one third of all grades awarded at grades 7 to 9; a clear testament to the hard work and dedication of both students and staff and an excellent achievement for a school that is academically non-selective.
- 9 -
## **GAD'S HILL SCHOOL**
## **GOVERNORS' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **Strategic Report (continued)**
Among the standout individual successes one boy achieved an exceptional ten GCSEs at the very highest Grade 9, an accomplishment placing him among the top students nationally. Our Head Girl also performed brilliantly, securing ten GCSEs at Grades 8 or 9, while a girl achieved seven GCSEs at Grades 8 or 9. Two other pupils both earned seven top grades between 7 and 9.
These results are particularly pleasing as they demonstrate that the most able students can thrive academically and gain the results that their ability and effort deserve, all while benefitting from the nurturing pastoral care, leadership opportunities, and spirit of adventure that are hallmarks of a Gad’s Hill education.
The increase in the very highest grades also saw half of all Mathematics GCSEs awarded at 7 to 9, a feat also achieved in History. Drama was a particular highlight, with all grades at 7 or higher, and students achieving an average of 2.7 grades above their nationally standardised predictions.
In English Language, 100% of students passed at grade 4 or higher, reflecting the school’s strong emphasis on literacy and communication, and 100% pass rates were also achieved in Art, Design Technology, Drama, Food & Nutrition, Geography, Psychology, Statistics, and Further Maths.
These results reflect the hard work of our pupils, the dedication of our staff, and the unique supportive environment we offer at Gad’s Hill. We are proud that our most able students are achieving at the very highest level while still enjoying the full breadth of what our school offers, but all of our Upper Fifth have worked conscientiously and collaboratively, and their GCSE results are only a part of what they leave us with. Alongside their GCSEs, our students gain a host of qualifications, including from LAMDA, the Institute of Leadership and Management, BTEC and First Aid qualifications, Duke of Edinburgh awards, and, most importantly, the necessary personal skills to become confident, resourceful and successful young adults.
|**GCSE**||**Grade**|**Grade**|**Grade**|**Grade**|**Grade**|**Grade**|**Grade**|**Grade**||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|**Subject**|No
of pupils|9|8|7|6|5|4|3|2|Gad's
%4+ pas
s rate|England averag
e
4+ pass
rate 2025 (9-4)|Gad's
%5+ pas
s rate|Gad’s
7+
pass rat
e|England averag
e
7+ pass
rate 2025 (9-7)|
|**English**
**Language**|33|1|2|5|8|11|6|||100%|59.7%|82%|24%|15.5%|
|**English**
**Literature**|34||4|7|11|8|3|1||97%|74%|88%|32%|20.2%|
|**Mathematics**|34|1|5|11|3|5|8|1||97%|58.2%|74%|50%|16.5%|
|**Biology***|34|2|2|8|5|5|7|5||85%|89.4%|62%|35%|43.4%|
|**Chemistry***|34|1|2|4|6|7|8|6||82%|91.5%|59%|21%|46.1%|
|**Physics***|34|2|4|3|6|5|7|7||79%|90.8%|59%|26%|45.1%|
|**Art**|7|||2|3|1|1|||100%|76.9%|86%|29%|23.8%|
|**Drama**|6|1|1|4||||||100%|77.6%|100%|100%|27.2%|
|**DT**|10|1|1|1|3|1|3|||100%|66.7%|70%|30%|23.0%|
|**Music**|3|||1||1||1||67%|75.9%|67%|33%|33.3%|
|**Food**
**Nutrition**|12||3|2|3|3|1|||100%||92%|42%||
|**Spanish**|5|||1|1||2|1||80%|70.6%|40%|20%|27.1%|
|**PE**|9|1|||4|1|2|1||89%|72.7%|67%|11%|23.5%|
|**Geography**|17||4|4|5|1|3|||100%|65.1%|82%|47%|24.8%|
|**History**|12|1|3|2|2||3|1||92%|64.2%|67%|50%|26.2%|
|**Computing**|18|1|1|3|5|2|2|2|2|78%|69.2%|67%|28%|29.6%|
|**Statistics****|9||5|1|2||1|||100%||89%|67%||
|**Psychology****|11|1|||6|4||||100%||100%|9%||
|**Further**
**Maths****|7|1|1|||2|3|||100%||57%|29%||
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## **GAD'S HILL SCHOOL**
## **GOVERNORS' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **Strategic Report (continued)**
|**Qualifications**|**Pass**|**Fail**||
|---|---|---|---|
|**BTEC**
**Teamwork**
**and**
**Personal**
**Development**|
**100%**|**0**||
|**Level**
**2**
**Institute**
**of**
**Leadership**
**and**
**Management**|
**23**
**students**
**achieved the**
**ILM award**
**7**
**achieved**
**the**
**ILM extended**
**award**|
**0**||
|**First Aid at Work***|**18 students**
*** This is an optional**
**course for Upper 5th**|||
|**LAMDA Results 2025**|**Pass**|**Merit**|**Distinction**|
||**6%**|**16%**|**78%**|
|**Duke of Edinburgh Award**|**Bronze**|**Silver**||
||||
|---|---|---|
|**Destinations**|||
|**16**|**Grammar**|**47%**|
|**7**|**Secondary State**|**21%**|
|**2**|**Independent**|**6%**|
|**2**|**Specialist(Drama)**|**6%**|
|**5**|**College**|**16%**|
|**1**|**Apprenticeship**|**2%**|
|**1**|**America/study abroad**|**2%**|
Performance in the Lower School is also strong. The tables below show the 2024/2025 KS2, KS1 and EYFS outcomes against national averages (using predictions drawn from our data tracking software, Insight).
|**Kindergarten(KS1)**||**Expected Standard+**|**Expected Standard+**|**Expected Standard+**|**Expected Standard+**|**Greater Depth**|**Greater Depth**|**Greater Depth**|
|---|---|---|---|---|---|---|---|---|
|||**School**||**National average**||**School**||**National**
**average**|
|**Reading**||95%||71%||24%||19%|
|**Writing**||95%||64%||0%||9%|
|**Mathematics**||95%||72%||19%||17%|
|**Combined**||95%||59%||0%||6%|
||**Expected Standard+**
**Greater Depth**
**School**
**National**
**average**
**School**
**National**
**average**
83%
75%
47%
33%
83%
72%
25%
13%
78%
74%
31%
26%
86%
73%
47%
30%
67%
62%
19%
8%
94%
38%||||||||
|**Juniors (KS2)**|**Expected Standard+**||||**Greater Depth**||||
||**School**||**National**
**average**||**School**||**National**
**average**||
|**Reading**|83%||75%||47%||33%||
|**Writing**|83%||72%||25%||13%||
|**Mathematics**|78%||74%||31%||26%||
|**GPS**|86%||73%||47%||30%||
|**Combined**|67%||62%||19%||8%||
|**MTC(J4)**|94%||38%||||||
- 11 -
## **GAD'S HILL SCHOOL**
## **GOVERNORS' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **Strategic Report (continued)**
|**Kindergarten(KS1)**
|**Expected Standard+**|**Expected Standard+**|**Expected Standard+**||
|---|---|---|---|---|
||**School**|**National average**||**School**|
|**Reading**
|95%|71%||24%|
|**Writing**
|95%|64%||0%|
|**Mathematics**
|95%|72%||19%|
|**Combined**
|95%|59%||0%|
|**Expected standard**
**School**
**National average**
**EYFS(GLD)**
71%
69%
**Phonics**
90%
80%|||||
||**Expected standard**||||
||**School**||**National average**||
|**EYFS(GLD)**|71%||69%||
|**Phonics**|90%||80%||
*Greater depth National Average based on data from Insight. To be updated when released nationally.
## CHARLES DICKENS ACADEMIC SCHOLARSHIPS
Autumn Term 2024 saw the seventh wave of Charles Dickens (“CD”) academic scholars commence in the Upper School, with a further 6 of the most able children in the area receiving this form of fee assistance.
## OTHER FORMS OF FEE ASSISTANCE
Significant increases in both the proportion of gross fee income used to provide fee assistance, and the proportion of families benefiting from some form of fee assistance are set out elsewhere in this report.
Governors keep under review our policies for all forms of fee assistance to ensure that as many suitable pupils as possible can benefit from the education offered at Gad’s Hill School even if their family financial circumstances would otherwise preclude this.
## **GOING CONCERN**
After making appropriate enquiries, the Trustees have a reasonable expectation that the Charitable Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the Financial Statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
- 12 -
## **GAD'S HILL SCHOOL**
## **GOVERNORS' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
## **Financial review**
## **RESERVES AND FINANCIAL HEALTH**
The Governors review regularly the finances of the school and plan for future years. In common with other independent schools, Governors have invested substantial sums into new and improved buildings and facilities in recent years and have a continuing programme of refurbishment, development and investment to maintain excellent teaching facilities for our pupils. Although as shown on the balance sheet the school’s free reserves (unrestricted reserves less fixed assets) are at a negative balance of £2,014,301 (2024: £2,215,907), this illustrates the extent of the investment in our school, which is common practice for schools in the sector which must finance their own capital investment plans. The governors are satisfied with the strength of the charity’s balance sheet, the stable cash flow from healthy student rolls, the ongoing popularity of our school, and our strong relationship with bankers.
## **FINANCIAL RISK MANAGEMENT**
The governors have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
## **PRINCIPAL RISKS AND UNCERTAINTIES**
The Board of Governors is responsible for the management of risks faced by the school. Each year the SLT and Board identify and assess risks and implement controls to mitigate against these. Additional risks in this coming year included the impact of the introduction of VAT on school fees and the removal of business rates relief. Key controls implemented by the school include:
- Formal agenda and papers for all Board and committee activities
- Strategic planning, budgeting, and management accounting
- Structured financial and other forecasting (eg pupil numbers) for future years
- Established organisational structure and understood lines of reporting.
- Formal written policies
## **PRINCIPAL FUNDING**
The principal funding of the school is from school fees and the continuing mortgage provided by its bankers.
## **APPROACH TO FUNDRAISING**
Fundraising income remains low, however the school does not specifically target resources for this source of funding. This year the school received donations amounting to £81 (2024: £nil). No fundraising complaints (2024: nil) were received during the year
- 13 -
## **GAD'S HILL SCHOOL**
## **GOVERNORS' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
## **Plans for future periods**
## **LOOKING FORWARD TO 2025/26 AND BEYOND**
## **Objectives for 2025/26**
The Board has set the following objectives for 2025/26:
## 1. Excellence in Teaching and Learning
- Implement a unified curriculum that uses data effectively to ensure all pupils make expected or better progress.
- Enhance value-added outcomes, especially for pupils with higher prior attainment and those with SEND.
- Ensure inclusive and accessible learning through strategies like the Gad’s PRAISE approach, revision guide accessibility, and knowledge organisers.
- Evaluate and improve curriculum enhancement and interventions, including extracurricular academic support.
## 2. Strengthening Community and Wellbeing
- Promote high attendance and emotional wellbeing, with a focus on Emotional Based School Avoidance (EBSA) and relationship-invested approaches.
- Embed GREAT values consistently across the school to support behaviour and personal development.
- Amplify pupil voice in school development and safeguarding practices.
- Increase parental engagement through workshops and improved communication.
- Build stronger links with local schools and the wider community.
## 3. Expanding Opportunities and Enrichment
- Ensure facilities and resources are excellent and accessible, including dyslexia-friendly materials and IT integration.
- Leverage technology and AI to support Universal Design for Learning.
- Promote curiosity and tenacity through enquiry-based learning.
- Broaden extracurricular and adventure-based learning, including sport, recreation, and exploration.
4. Promoting Inclusion, Responsibility and Sustainability
- Embed identity, acceptance, and diversity within the curriculum and school culture.
- Improve the impact of targeted interventions for academic, personal, and social development.
- Empower pupils through responsibility and sustainability initiatives, though these areas need further development in the plan.
5. Fostering Creativity, Communication and Expression
- Develop pupils’ communication skills, including writing, speech and language, and social communication.
- Support expressive arts and critical thinking, with scope for further strategic development.
- 14 -
## **GAD'S HILL SCHOOL**
## **STATEMENT OF GOVERNORS' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
The Governors (who are also the directors of Gad's Hill School for the purposes of company law) are responsible for preparing the Governors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Company law requires the governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the school and of the incoming resources and application of resources, including the income and expenditure, of the school for that period. In preparing those financial statements, the governors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable 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.
In so far as the governors are aware:
- there is no relevant audit information of which the school's auditors are unaware; and
- the governors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Approved by order of the members of the Board of Governors on 01 December 2025 and signed on its behalf by:
## **Mr D Martin - Chair of Governors**
- 15 -
## **GAD'S HILL SCHOOL**
## **INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF GAD'S HILL SCHOOL** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **Opinion**
We have audited the financial statements of Gad's Hill School for the year ended 31 July 2025 which comprises the statement of financial activities, the balance sheet, the statement of cash flows 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice) and the Charities SORP 2019.
## In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 July 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the '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.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Governors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the School’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Governors with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Governors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Governors' report including the incorporated strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Governors' report including the incorporated strategic report has been prepared in accordance with applicable legal requirements.
- 16 -
## **GAD'S HILL SCHOOL**
## **INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF GAD'S HILL SCHOOL (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **Matters on which we are required to report by exception**
In the light of the 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' report, including the incorporated strategic report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Governors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Governors**
As explained more fully in the statement of Governors' responsibilities, 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 charitable company, 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.
We obtained an understanding of the legal and regulatory frameworks within which the school operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and the Charities Act 2011.
We identified the greatest risk of the legal and regulatory impact on the financial statements from irregularities, including fraud, to be the override of controls by management. Our audit procedures to respond to these risks included:
- Enquiry of management, those charged with governance and the entity’s solicitors (or in-house legal team) around actual and potential litigation and claims.
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing internal audit reports.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
- 17 -
## **GAD'S HILL SCHOOL**
## **INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF GAD'S HILL SCHOOL (CONTINUED)**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
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 non-compliance 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// 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 charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
## **Siobhan Holmes (Senior Statutory Auditor)**
For and on behalf of Azets Audit Services , Statutory Auditor Chartered Accountants
First Floor, River House 1 Maidstone Road Sidcup Kent DA14 5RH
Date: .........................18 December 2025
- 18 -
## **GAD'S HILL SCHOOL**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations
**3**
-
27,326
Charitable activities:
- School fees
**5**
5,367,426
-
Investments
**6**
15,919
-
Other incoming resources
**4**
12,643
-
**Total**
5,395,988
27,326
**Expenditure on:**
Charitable activities:
- Educational operations
**8**
5,238,605
21,401
**Total**
**7**
5,238,605
21,401
**Net income before other gains/(losses)**
157,383
5,925
Transfers between funds
**17**
(1,661)
1,661
**Other recognised gains/(losses)**
Actuarial losses on defined benefit pension schemes
**19**
(69,151)
-
**Net movement in funds**
86,571
7,586
**Reconciliation of funds**
Total funds brought forward
3,759,370
-
Total funds carried forward
3,845,941
7,586|**Total**
**2025**
**£**
27,326
5,367,426
15,919
12,643
5,423,314
5,260,006
5,260,006
163,308
-
(69,151)
94,157
3,759,370
3,853,527|**Total**
**2024**
**£**
-
5,364,054
15,504
-
5,379,558
5,219,327
5,219,327
160,231
-
(2,661)
157,570
3,601,800
3,759,370|
|---|---|---|
- 19 -
## **GAD'S HILL SCHOOL**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
|**Comparative year information**
**Unrestricted**
**Restricted**
**Year ended 31 July 2024**
**funds**
**funds**
**Notes**
**£**
**£**
**Income and endowments from:**
Other trading activities
**5**
5,364,054
-
Investments
**6**
15,504
-
**Total**
5,379,558
-
**Expenditure on:**
Charitable activities:
- Educational operations
**8**
5,219,327
-
**Total**
**7**
5,219,327
-
**Net income before other gains/(losses)**
160,231
-
**Other recognised gains/(losses)**
Actuarial losses on defined benefit pension schemes
**19**
(2,661)
-
**Net movement in funds**
157,570
-
**Reconciliation of funds**
Total funds brought forward
3,601,800
-
Total funds carried forward
3,759,370
-|**Total**
**2024**
**£**
5,364,054
15,504
5,379,558
5,219,327
5,219,327
160,231
(2,661)
157,570
3,601,800
3,759,370|
|---|---|
- 20 -
## **GAD'S HILL SCHOOL**
## **BALANCE SHEET**
## _**AS AT 31 JULY 2025**_
|**Notes**
**Fixed assets**
Tangible assets
**12**
**Current assets**
Debtors
**13**
Cash at bank and in hand
**Current liabilities**
Creditors: amounts falling due within one year
**14**
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
**15**
**Net assets excluding pension liability**
Defined benefit pension scheme liability
**19**
**Total net assets**
**Funds of the School:**
**Unrestricted income funds**
**17**
**Restricted funds**
**17**
**Total funds**|**2025**
**£**
**£**
5,867,828
332,010
528,104
860,114
(661,849)
198,265
6,066,093
(2,073,375)
3,992,718
(139,191)
3,853,527
3,845,941
7,586
3,853,527|**2024**
**£**
**£**
5,975,277
271,817
481,005
752,822
(604,738)
148,084
6,123,361
(2,293,947)
3,829,414
(70,044)
3,759,370
3,759,370
-
3,759,370|
|---|---|---|
The financial statements on pages 19 to 39 were approved by the Governors and authorised for issue on 01 December 2025 and are signed on their behalf by:
Company registration number 02427105 (England and Wales)
- 21 -
## **GAD'S HILL SCHOOL**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 JULY 2025**_
||||**2025**|||**2024**||
|---|---|---|---|---|---|---|---|
||**Notes**|**£**||**£**|**£**||**£**|
|**Cash flows from operating activities**||||||||
|Net cash provided by operating activities|**20**|||365,420|||310,098|
|**Cash flows from investing activities**||||||||
|Dividends, interest and rents from investments||15,919|||15,504|||
|Purchase of tangible fixed assets||(39,949)|||(14,020)|||
|Proceeds from sale of tangible fixed assets||9,342|||-|||
|**Net cash (used in)/provided by investing activities**||||(14,688)|||1,484|
|**Cash flows from financing activities**||||||||
|Repayment of other loan||(214,726)|||(206,063)|||
|Finance costs||(88,907)|||(106,420)|||
|**Net cash used in financing activities**||||(303,633)|||(312,483)|
|**Net increase/(decrease) in cash and cash**||||||||
|**equivalents in the reporting period**||||47,099|||(901)|
|Cash and cash equivalents at beginning of the|year|||481,005|||481,906|
|**Cash and cash equivalents at end of the year**||||528,104|||481,005|
- 22 -
## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **1 Accounting policies**
## General information
The School is a company limited by guarantee. The members of the company are the Trustees named in the front of the financial statements. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company.
The School is registered in England and Wales, registered number 02427105 and its registered office is:
Gad's Hill Place Gravesend Road Higham Kent, ME3 7PA
The School is a registered charity number 803153, its principal activity is the provision of education services.
A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.
## **1.1 Basis of preparation**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Gad's Hill School meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
## **1.2 Going concern**
Accounting standards require the Governors to consider the appropriateness of the going concern basis when preparing the financial statements. After reviewing forecasts and projections, the Trustees have a reasonable expectation that the school has adequate resources to continue in operational existence for the foreseeable future. The Governors therefore continue to adopt the going concern basis in preparing the financial statements.
## **1.3 Income**
Fees reeivable and charges for services and use of premises are accounted for in the period which the service is provided.
Voluntary income is accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the school is considered probable.Voluntary income for the school's general purposes is accounted for as unrestricted and is credited to the general fund. Where the donor has imposed restrictions, voluntary income is credited to the relevant restricted fund.
Investment income from dividends, bank balances and fixed interest securities are accounted for on an accruals basis.
- 23 -
## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **1 Accounting policies**
## **(Continued)**
## **1.4 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocoated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.
Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use.
Expenditure on charitable activites is incurred on directly undertaking the activities which further the School's objectives, as well as any associated support costs.
All expenditure is exclusive of VAT, with irrecoverable VAT charged to the Statement of Financial Activities.
## **1.5 Tangible fixed assets and depreciation**
Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition are included in the measurement of cost.
At each reporting date the School assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
Freehold property: 2% on cost Motor vehicles: 25% on cost Fixtures and fittings: 20% to 25% on cost
Land of £140,000 is not depreciated.
## **1.6 Liabilities**
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the School anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods of services it must provide. Provisions are measured at the best estimate of the amount required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
Fees receivable in advance are carried forward for credit in the period to which they relate.
- 24 -
## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **1 Accounting policies**
## **(Continued)**
## **1.7 Leased assets**
Rentals under operating leases are charged on a straight-line basis over the lease term.
## **1.8 Financial instruments**
The School 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.
## Financial assets
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Known bad debts are written off and provision is made for any considered to be doubtful. Trade debtors relate to income owed for charitable services provided.
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## Financial liabilities
Trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.
Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.
## **1.9 Taxation**
The School is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Pensions**
Teaching staff are members of the Teacher's Pension Scheme (TPS), a defined benefit scheme administered by the Teacher's Pension Agency. Contributions to the scheme are charged to the Statement of Financial Activities as they fall due. The TPS is an unfunded scheme. Contributions on a 'pay as you go' basis are credited to the exchequer under arrangements governed by the Superannuation Act 1972. Actuarial variances are carried out on a national set of investments. Under the definitions set out in FRS 102 the TPS is a multiemployer pension scheme. The charity is unable to identify its share of the underlying (notional) assets and liabilities of the scheme. Accordingly under FRS 102 the scheme is accounted for as if it was a defined contribution scheme.
The School also contributes to a personal pension scheme for its non-teaching staff and the pension charge recognised in the Statement of Financial Activities represents the amounts payable by the School to the fund in respect of the year.
- 25 -
## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **1 Accounting policies**
## **(Continued)**
## **1.10 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Governors in furtherance of the general objectives of the School and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Governors for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the School for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
## **1.11 Employee benefits**
## Short term benefits
Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.
## Employee termination benefits
Termination benefits are accounted for on an accruals basis and in line with FRS 102.
## **2 Critical accounting estimates and areas of judgement**
The Trustees make 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 amount of assets and liabilities within the next financial year are discussed below.
Critical accounting estimates and assumptions:
- Tangible fixed assets are depreciated over their useful economic lives taking into account residual values where appropriate. These are assessed annually and may vary each year depending on a number of factors. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
- The Governors make allowances for doubtful debts, based on an assessment of the recoverability of receivables. Allowances are applied to receivables where events or changes in circumstances indicate that the carrying amount may not be recoverable. Management specifically analysed historical bad debts, customer credit-worthiness, current economic trends and changes in customer payment terms when making judgement to evaluate the adequacy of the allowance of doubtful debts.
- The valuation of defined benefit pension liabilities requires the use of significant estimates and assumptions. Key inputs include the discount rate, inflation expectations, salary growth projections, and assumptions about member longevity. These variables are determined with reference to market data, actuarial advice, and historical experience, but remain inherently uncertain.
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.
- 26 -
## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
## **3 Donations and capital grants**
|**Donations and capital grants**|||||
|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Total**|**Total**|
||**funds**|**funds**|**2025**|**2024**|
||**£**|**£**|**£**|**£**|
|Other donations|-|27,326|27,326|-|
This represents a donation of £20,000 from The Friends of Gad's Hill School' towards the outdoor play equipment and a donation of £7,326 from The Ministry of Defence towards the operation of the combined Cadet Force.
## **4 Other educational operations**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
Profit on sale of tangible fixed assets
12,643
-
**5**
**School fees**
**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
Fees receivable
5,993,760
-
Less: Bursaries
(879,758)
-
5,114,002
-
Registration fees
10,150
-
Educational requisites income
51,928
-
Other income
191,326
-
5,367,406
-
**6**
**Investment income**
**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
Bank interest
15,919
-|**Total**
**2025**
**£**
12,643
**Total**
**2025**
**2025**
**£**
5,993,760
(879,758)
5,114,002
10,150
51,928
191,326
5,367,406
**Total**
**2025**
**£**
15,919|**Total**
**2024**
**£**
-|
|---|---|---|
|||**Total**
**2024**
**2024**
**£**
5,836,046
(913,525|
|||4,922,521
11,434
246,728
183,371|
|||5,364,054|
|||**Total**
**2024**
**£**
15,504|
- 27 -
## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
## **7 Expenditure**
|**Staff costs**
**£**
Academy's educational operations
- Direct costs
3,080,160
- Allocated support costs
732,878
3,813,038
**Net income/(expenditure) for the year includes:**
Operating lease rentals
Fees payable to auditor for:
- Audit
- Preparation of statutory accounts
- Independent audit of Teachers' Pension Scheme
Bank and loan interest|**Non-pay expenditure**
**Premises**
**Other**
**£**
**£**
-
449,548
529,195
468,225
529,195
917,773|**Total**
**2025**
**£**
3,529,708
1,730,298
5,260,006
**2025**
**£**
22,782
20,000
2,000
1,000
88,907|**Total**
**2024**
**£**
3,400,016
1,819,311|
|---|---|---|---|
||||5,219,327|
||||**2024**
**£**
33,867
19,250
2,500
980
106,420|
## **8 Charitable activities**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
**Direct costs**
Educational operations
3,508,307
21,401
**Support costs**
Educational operations
1,730,298
-
5,238,605
21,401|**Total**
**2025**
**£**
3,529,708
1,730,298
5,260,006|**Total**
**2024**
**£**
3,400,016
1,819,311|
|---|---|---|
|||5,219,327|
- 28 -
## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **8 Charitable activities**
## **(Continued)**
## **Analysis of costs**
|**Direct costs**
Teaching and educational support staff costs
Technology costs
Educational supplies and services
Examination fees
Educational consultancy
Other direct costs
**Support costs**
Support staff costs
Technology costs
Recruitment and support
Maintenance of premises and equipment
Cleaning
Energy costs
Rent, rates and other occupancy costs
Security and transport
Finance costs
Legal costs
Other support costs
Governance costs|**2025**
**£**
3,080,160
37,758
44,022
36,018
9,280
322,470
3,529,708
732,878
17,503
53,387
175,693
173,715
151,326
28,461
26,082
106,819
34,635
201,801
27,998
1,730,298|**2024**
**£**
2,858,120
48,501
90,570
35,489
10,880
356,456|
|---|---|---|
|||3,400,016|
|||664,933
19,933
80,000
315,125
175,688
174,874
49,424
23,573
106,420
8,594
173,399
27,348|
|||1,819,311|
## **9 Governance costs**
|**Governance costs**|||
|---|---|---|
|**All from unrestricted funds:**
**Amounts included in support costs**
Legal costs
Auditor's remuneration
- Audit of financial statements
Other governance costs|**Total**
**2025**
**£**
34,635
23,111
4,887
62,633|**Total**
**2024**
**£**
8,594
22,804
4,544|
|||35,942|
- 29 -
## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **10 Staff**
## **Staff costs and employee benefits**
Staff costs during the year were:
|Wages and salaries
Social security costs
Pension costs
Total staff expenditure|**2025**
**£**
2,972,002
279,240
561,796
3,813,038|**2024**
**£**
2,809,837
245,781
467,435|
|---|---|---|
|||3,523,053|
## **Staff numbers**
The average number of persons employed by the School during the year was as follows:
||**2025**|**2024**|
|---|---|---|
||**Number**|**Number**|
|Average number of full-time equivalent|||
|employees|100|96|
## **Higher paid staff**
The number of employees whose employee benefits (excluding employer national insurance contributions) exceeded £60,000 was:
|exceeded £60,000 was:|||
|---|---|---|
||**2025**|**2024**|
||**Number**|**Number**|
|£60,001 - £70,000|2|1|
|£80,001 - £90,000|1|-|
|£100,001 - £110,000|-|1|
|£110,001 - £120,000|1|-|
## **Key management personnel**
Key management personnel are considered to be those listed in the Reference and Administrative Details page.
Their aggregate emoluments (including employers national insurance contributions and employers pension contributions) totalled £453,510 (2024: £403,408).
- 30 -
## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **11 Governors' remuneration and expenses**
During the year, one Governor has been paid remuneration or has received other benefits from an employment with the School, totalling £138,543 (2024: £128,080).
The value of Governors' remuneration and other benefits paid in respect of the highest paid Governor totalled £110,516 (2024: £104,515) and pension contributions £28,027 (2024: £23,564).
During the year, retirement benefits were accruing with 1 Governor (2024: 1) in respect of defined benefit pension schemes.
During the year ended 31 July 2025, expenses totalling £nil were reimbursed or paid directly to Governors (2024: £nil).
## **12 Tangible fixed assets**
|**Cost**
At 1 August 2024
Additions
Disposals
At 31 July 2025
**Depreciation**
At 1 August 2024
On disposals
Charge for the year
At 31 July 2025
**Net book value**
At 31 July 2025
At 31 July 2024|**Freehold**
**property**
**Fixtures and**
**fittings**
**£**
**£**
6,500,000
633,702
-
20,962
-
(210,712)
6,500,000
443,952
624,202
576,587
-
(210,712)
89,068
30,172
713,270
396,047
5,786,730
47,905
5,875,798
57,115|**Motor**
**vehicles**
**£**
229,778
18,990
(19,404)
229,364
187,414
(16,103)
24,860
196,171
33,193
42,364|**Total**
**£**
7,363,480
39,952
(230,116)|
|---|---|---|---|
||||7,173,316|
||||1,388,203
(226,815)
144,100|
||||1,305,488|
||||5,867,828|
||||5,975,277|
Included in land and buildings is freehold land at valuation of £140,000 (2024: £140,000).
## **13 Debtors**
|Trade debtors
Other debtors
Prepayments and accrued income|**2025**
**£**
298,627
2,823
30,560
332,010|**2024**
**£**
236,264
1,742
33,811|
|---|---|---|
|||271,817|
- 31 -
## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
## **14 Creditors: amounts falling due within one year**
|Other loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
**Creditors: amounts falling due after more than one year**
Other loans
**Analysis of loans**
Wholly repayable within five years
Less: included in current liabilities
Amounts included above
**Loan maturity**
Debt due in one year or less
Due in more than one year but not more than two years
Due in more than two years but not more than five years
Due in more than five years|**2025**
**£**
221,248
33,289
178,301
172,395
56,616
661,849
**2025**
**£**
2,073,375
**2025**
**£**
2,294,623
(221,248)
2,073,375
221,248
229,801
1,011,478
832,096
2,294,623|**2024**
**£**
215,402
74,016
-
201,282
114,038
604,738
**2024**
**£**
2,293,947
**2024**
**£**
2,509,349
(215,402)
2,293,947
215,402
223,509
723,450
1,346,988
2,509,349|
|---|---|---|
## **15 Creditors: amounts falling due after more than one year**
The entire balance of bank loans shown above is secured by a legal charge over the freehold property of Gad's Hill School. The loan is repayable in monthly instalments over the 15 year term. Interest is being charged each month at a fixed rate of 3.7% until 2029 and subsequently at a variable rate of 2.44% over the Bank of England base rate until maturity in 2034.
- 32 -
## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
## **16 Deferred income**
|Deferred income is included within:
Creditors due within one year
Deferred income at 1 August 2024
Resources deferred in the year
Deferred income at 31 July 2025|**2025**
**£**
5,704
-
5,704
5,704|**2024**
**£**
-|
|---|---|---|
|||-
-|
|||-|
Deferred income relates to income received for a trip occurring in the next financial year.
## **17 Funds**
|**Balance at**
**1 August**
**2024**
**£**
**Restricted general funds**
Gym Equipment
-
Combined Cadet Force
-
-
**Total restricted funds**
-
**Unrestricted funds**
General funds
3,614,956
Charles Dickens Fund
50,000
Phase II New School Fund
94,414
3,759,370
**Total funds**
3,759,370|**Gains,**
**Balance at**
**losses and**
**31 July**
**Income**
**Expenditure**
**transfers**
**2025**
**£**
**£**
**£**
**£**
20,000
(20,000)
-
-
7,326
(1,401)
1,661
7,586
27,326
(21,401)
1,661
7,586
27,326
(21,401)
1,661
7,586
5,395,988
(5,238,605)
(70,812)
3,701,527
-
-
-
50,000
-
-
-
94,414
5,395,988
(5,238,605)
(70,812)
3,845,941
5,423,314
(5,260,006)
(69,151)
3,853,527|**Gains,**
**Balance at**
**losses and**
**31 July**
**Income**
**Expenditure**
**transfers**
**2025**
**£**
**£**
**£**
**£**
20,000
(20,000)
-
-
7,326
(1,401)
1,661
7,586
27,326
(21,401)
1,661
7,586
27,326
(21,401)
1,661
7,586
5,395,988
(5,238,605)
(70,812)
3,701,527
-
-
-
50,000
-
-
-
94,414
5,395,988
(5,238,605)
(70,812)
3,845,941
5,423,314
(5,260,006)
(69,151)
3,853,527|
|---|---|---|
|||7,586|
|||7,586|
|||3,701,527
50,000
94,414|
|||3,845,941|
|||3,853,527|
## **Restricted funds**
The gym equipment fund was set up on receipt of a donation of £20,000 from The Friends of Gad's Hill School. The funds were fully expensed in the year on the replacement of the outdoor play equipment.
- 33 -
## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **17 Funds**
**(Continued)**
The Ministry of Defence provides funding to support the operation of the Combined Cadet Force contingent within the school. These funds are restricted to expenditure on CCF activities, including training, uniforms, equipment and associated costs.
## **Designated funds**
The Charles Dickens Fund has been set aside to support the potential development of an arts hub at Gad's Hill Place, should the project proceed. The trustees consider this initiative aligned with the charity's objectives and have designated funds to ensure resources are available if the opportunity arises.
The Phase II New Building Fund represents amounts designated towards the anticipated second phase of development, which includes the construction of a new senior school. The governors have earmarked these funds to contribute to the costs of this future capital project.
## **Comparative information in respect of the preceding period is as follows:**
|**Balance at**
**1 August**
**2023**
**£**
**Restricted general funds**
**Total restricted funds**
-
**Unrestricted funds**
General funds
3,399,180
Charles Dickens Fund
50,000
Phase II New School Fund
152,620
3,601,800
**Total funds**
3,601,800|**Gains,**
**Balance at**
**losses and**
**31 July**
**Income**
**Expenditure**
**transfers**
**2024**
**£**
**£**
**£**
**£**
-
-
-
-
5,379,558
(5,161,121)
(2,661)
3,614,956
-
-
-
50,000
-
(58,206)
-
94,414
5,379,558
(5,219,327)
(2,661)
3,759,370
5,379,558
(5,219,327)
(2,661)
3,759,370|**Gains,**
**Balance at**
**losses and**
**31 July**
**Income**
**Expenditure**
**transfers**
**2024**
**£**
**£**
**£**
**£**
-
-
-
-
5,379,558
(5,161,121)
(2,661)
3,614,956
-
-
-
50,000
-
(58,206)
-
94,414
5,379,558
(5,219,327)
(2,661)
3,759,370
5,379,558
(5,219,327)
(2,661)
3,759,370|
|---|---|---|
|||-|
|||3,614,956
50,000
94,414|
|||3,759,370|
|||3,759,370|
- 34 -
## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2025**_
|**18**
**Analysis of net assets between funds**
**Unrestricted**
**Funds**
**£**
**Fund balances at 31 July**
**2025 are represented by:**
Tangible fixed assets
-
Current assets
891,538
Current liabilities
(700,859)
Non-current liabilities
(2,073,375)
Pension scheme liability
(139,191)
**Total net assets**
(2,021,887)
**Unrestricted**
**Funds**
**£**
**Fund balances at 31 July**
**2024 are represented by:**
Tangible fixed assets
-
Current assets
752,822
Current liabilities
(604,738)
Non-current liabilities
(2,293,947)
Pension scheme liability
(70,044)
**Total net assets**
(2,215,907)|**Restricted funds:**
**Endowment**
**Total**
**General**
**Fixed asset**
**Funds**
**Funds**
**£**
**£**
**£**
**£**
-
5,867,828
-
5,867,828
7,586
-
-
899,124
-
-
-
(700,859)
-
-
-
(2,073,375)
-
-
-
(139,191)
7,586
5,867,828
-
3,853,527
**Restricted funds:**
**Endowment**
**Total**
**General**
**Fixed asset**
**Funds**
**Funds**
**£**
**£**
**£**
**£**
-
5,975,277
-
5,975,277
-
-
-
752,822
-
-
-
(604,738)
-
-
-
(2,293,947)
-
-
-
(70,044)
-
5,975,277
-
3,759,370|
|---|---|
- 35 -
## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **19 Pension and similar obligations**
The School operates two pension schemes, one of which provides benefits based on a final or career average pensionable salary, while the other operates on the basis of a defined contribution levels from the employer and the employee.
Teaching staff belong to the Teachers' Pension Scheme 'TPS'. This is an unfunded defined benefit scheme operated by the Government with contributions calculated on an actuarial basis, but set in relation to the current service period only.
In accordance with paragraph 28.11 of FRS 102, the contributions have been accounted for as if this were a defined contribution scheme. The employers contributions for the period were 28.68%.
## **SCHEME: TPT Retirement Solutions – Independent Schools’ Pension Scheme**
The company participates in the scheme, a multi-employer scheme which provides benefits to some 51 nonassociated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2023. This actuarial valuation was certified on 11 December 2024 and showed assets of £99.2m, liabilities of £151.5m and a deficit of £52.3m. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the scheme as follows:
## **Deficit contributions**
From 1 September 2025 to 31 January 2034: £6,000,000 per annum (payable monthly and increasing by 3% on each 1[st] September)
Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2020. This valuation showed assets of £201.1m, liabilities of £256.3m and a deficit of £55.2m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:
## **Deficit contributions**
From 1 September 2022 to 30 June 2032: £2,687,000 per annum (payable monthly and increasing by 3% on each 1[st] September)
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
- 36 -
## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2025**_
## **19 Pension and similar obligations**
## **(Continued)**
## PRESENT VALUES OF PROVISION
||31 July 2025|31 July 2024|31 July 2023|
|---|---|---|---|
||(£s)|(£s)|(£s)|
|Present value ofprovision|139,191|70,040|72,765|
RECONCILIATION OF OPENING AND CLOSING PROVISIONS
||Period Ending|Period Ending|
|---|---|---|
||31 July 2025|31 July 2024|
||(£s)|(£s)|
|Provision at start ofperiod|70,040|72,765|
|Unwindingof the discount factor(interest expense)|3,025|3,866|
|Deficit contributionpaid|(9,529)|(9,252)|
|Remeasurements - impact of anychange in assumptions|(330)|2,661|
|Remeasurements - amendments to the contribution schedule|75,985|-|
|Provision at end ofperiod|139,191|70,040|
## INCOME AND EXPENDITURE IMPACT
||Period Ending|Period Ending|
|---|---|---|
||31 July 2025|31 July 2024|
||(£s)|(£s)|
|Interest expense|3,025|3,866|
|Remeasurements – impact of anychange in assumptions|(330)|2,661|
|Remeasurements – amendments to the contribution schedule|75,985|-|
|Contributionspaid in respect of future service*|*|*|
|Costs recognised in income and expenditure account|*|*|
*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. To be completed by the company.
## ASSUMPTIONS
||31 July 2025|31 July 2024|31 July 2023|
|---|---|---|---|
||%per annum|%per annum|%per annum|
|Rate of discount|4.69|4.63|5.70|
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
The School also paid a pension of £250 per month to a former Headmistress. It is committed to pay this for the remainder of her life. A provision of £nil (2024: £14,596) for the unfunded pension is included within other creditors. The payments have now ceased and no further liability exists.
- 37 -
## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
## **20 Reconciliation of net income to net cash flow from operating activities**
||||**2025**|**2024**|
|---|---|---|---|---|
|||**Notes**|**£**|**£**|
||Net income for the reporting period||||
||(as per the statement of financial activities)||163,304|160,231|
||Adjusted for:||||
||Investment income receivable|**6**|(15,919)|(15,504)|
||Finance costs payable||88,907|106,420|
||Unwinding of pension liability discounting|**19**|(3,025)|3,866|
||Repayment of pension deficit|**19**|(9,529)|(9,252)|
||Depreciation of tangible fixed assets||144,100|152,530|
||Profit on disposal of fixed assets||(12,643)|-|
||(Increase) in debtors||(60,193)|(44,373)|
||Increase/(decrease) in creditors||70,418|(43,820)|
||**Net cash provided by operating activities**||365,420|310,098|
|**21**|**Analysis of changes in net debt**||||
|||**1 August 2024**|**Cash flows**|**31 July 2025**|
|||**£**|**£**|**£**|
||Cash|481,005|47,099|528,104|
||Loans falling due within one year|(215,402)|(5,846)|(221,248)|
||Loans falling due after more than one year|(2,293,947)|220,572|(2,073,375)|
|||(2,028,344)|261,825|(1,766,519)|
## **22 Long-term commitments**
## **Operating leases**
At 31 July 2025 the total of the School's future minimum lease payments under non-cancellable operating leases was:
|Amounts due within one year
Amounts due in two and five years|**2025**
**£**
6,357
-
6,357|**2024**
**£**
9,871
9,052|
|---|---|---|
|||18,923|
## **23 Capital commitments**
There are no capital commitments as at 31 July 2025.
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## **GAD'S HILL SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 JULY 2025**_
## **24 Related party transactions**
During the year, the School was invoiced for insurance services by The Waterhouse Group, a business in which Mr P Waterhouse, the father of Governor Mrs K Hillocks, is the sole proprietor. The commission earned by The Waterhouse Group was £55,792 (2024: £5,442). Total purchases from The Waterhouse Group totalled £5,580 in the year (2024: £54,426). No amounts were outstanding at the Balance Sheet date (2024: £nil).
During the year, the School received donations of £20,000 (2024: £nil) from The Friends of Gad's Hill School. The Friends of Gad's Hill School is a charity in which there are common Trustees.
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