2025-10-31-accounts

THE GALLAHER TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 315T OCTOBER 2025

Charities Registration Number: NIC 106498

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THE GALLAHER TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 315? OCTOBER 2025

CONTENTS

	Pages
Report ofthe TrustProtector	2-4
Trustee Report	5-7
IndependentAuditors Report	8-10
Statement ofFinancialActivities (incorporating income andexpenditure account)	11
Statement ofFinancial Position/Balance Sheet	12
Cash Flow Statement	13
Notestothefinancialstatements	14-20

1

THE GALLAHER TRUST REPORT OF THE TRUST PROTECTOR (continued)

Directors and Board Succession

There have been some further changes to the Board’s membership during 2025. These changes reflect the Board’s ongoing commitment to keep its membership under review and to do so with regard to the need to ensure a sufficient range of skills and diversity to meet the work of the Trust. Buta Atwal, who joined the Board in December 2022 wil] conclude his three year term at the end of December 2025. Stephen Reynolds joined the Board in September 2025, and Ruth Forbes’ will be replaced in January 2026 by Sinead Devereaux as the JTI nominee to the Board. I wish to record my thanks to Buta and Ruth for all of their work and dedication to the Trust, and to welcome Stephen and (in due course) Sinead. In addition, and consistent with its succession strategy, the Board has agreed to co-opt Mike Keating with effect from January 2026, and I look forward to Mike’s involvement.

Other matters

My remit as Protector allows me to bring matters to the attention of the Board. In addition to the matters already referenced, I drew the attention ofthe Directors to the new statutory “Identity Verification Requirements’ at Companies House (which fell due on 18 November 2025). Separately, following street disturbances in Ballymena in the summer of2025, I advised the Board on the extent of its ability to makea limited financial intervention should it choose to do So.

The Trust continues to benefit from the professional efficiency of Greg McKinley its Director of Operations, and the work of Naked PR who assist the Trust in ensuring that it engages effectively with its delivery partners and reaches those whom it may be able to support.

The Board continues to have a clear and well-defined grant application process, which greatly facilitates not only its consideration of applications, but it also assists potential applicants in determining ifthey are likely to meet the Trust’s funding criteria.

The Board’s management of grant applications, its decision-making processes, and the review of its funded projects, are robust. Even so, following a discussion with the Director of Operations, I will be asking the Board to review its funding processes. This is good practice, and the review will include whether the Trust should consider distinguishing between small value and/or short-term funding applications and longer-term higher value project funding, and the terms of its legally binding funding agreements, in order to ascertain if there are any opportunities to further enhance its operational efficiency and funding impact.

I am satisfied that there is good governance within the Trust in the administration of its projects and its ongoing operations.

Financial Matters

I have separately considered the continuing investment, management and use of the endowment received from JTI. This has included receiving and reviewing with the Board the appointed Investment Manager’s quarterly reports to the Directors, as well as the routine financial management information provided to the Directors.

At the inception of the Trust, the Directors adopted a Statement of Investment Principles, which includes items such as the Trust’s Investment Objectives, Total Return Target, Time Horizon and Risk Profile, Income Requirement, and Investment Benchmark and Asset Allocation. As the life and work ofthe Trust has evolved, these Investment Principles have been reviewed and amended to ensure that they are aligned with the longer term aims and operation of the Trust.

The original endowment from JTI was £5 million. Although to date £3.1 million has been committed to supported projects (including forward commitments), the current value of the Trust’s assets is approximately £4 million ofwhich £3.2 million is uncommitted. This is as a result of the Directors’ prudent approach to the investment and professional management of the Trust’s funds, and any withdrawals from the investment portfolio required to meet the Trust’s funding and administrative requirements are carefully coordinated between the Director of Operations Administrator and the Investment Manager.

3

THE GALLAHER TRUST

REPORT OF THE TRUST PROTECTOR (continued)

Financial Matters (continued)

The Investment Manager usually attends the Board meetings in person. This is helpful as it affords the Directors the opportunity to receive an overview of the performance and mix of the Trust’s portfolio in the context of its needs and the wider global economic considerations, and it also facilitates a direct engagement between the Board and the Investment Manager.

In my opinion the Directors continue to have a prudent attitude to risk and the Trust’s assets are invested in a manner that is suitable to its ongoing and longer term needs and objectives. I am also satisfied that the Directors have demonstrated their continued adherence to the Trust’s Investment Principles.

Conclusion

Overall, I am pleased to report that the management and governance of the Trust remain strong and that it is well positioned to ensure the successful delivery of its charitable objectives.

Michael Wilson

19th January 2026

oa

4

THE GALLAHER TRUST

TRUSTEE REPORT

The Trustee is pleased to present its annual report together with the financial statements of the charity for the year ending 31 October 2025. The Trustee has adopted the provisions ofthe Statement of Recommended Practice applicable to charities preparing accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP —- FRS102), in preparing the annual report and financial statements of the charity.

Trustee

The trustee who held office during the year was as follows:

• Gallaher Corporate Trustee Limited

It is the directors of Gallaher Corporate Trustee Limited who act as the de facto Trustees of the Charity and are considered the key management personnel of the Trust. All the Trustees provide their services on a voluntary basis, and none receive any form of remuneration of reimbursement of expenses.

The Trust has an induction programme for new Trustees who are advised of their legal obligations as Trustees, briefed on the governance and structure of the Trust and provided with an overview of the Trust’s performance in meeting its charitable purposes.

All the directors ofthe corporate trustee commit to a Code ofConduct and are required to disclose all relevant interests, register them with the Board and in accordance with the Trust’s policy withdraw from discussion / decisions where a perceived or actual conflict of interest arises.

Objectives and Activities (and how they deliver public benefit)

The Objects of the Trust are to make awards for charitable purposes for:

• a) the advancement, for the public benefit, of local organisations in Ballymena and its environs with a view to job creation

• b) the development, for the public benefit, ofthe capacity and skills ofthe members of socially and economically disadvantaged communities including but not limited to the assistance of disadvantaged adults in Ballymena and its environs in such a way that they are better able to identify, and help meet, their needs and to participate more fully in society;

• c) the advancement, for the public benefit, of knowledge and training regarding health, safety and accident reduction in the workplace; and

• d) the further education of adults in Ballymena and its environs including but not limited to those attending institutions for further education in Northern Ireland.

Volunteers

The Trust operates as a funding body to promote the activities listed above. Aside from the directors of the corporate trustee, who provide their services on a voluntary basis, volunteers are not required.

Achievements and performance

In the financial period, the Trust provided funding of approximately £450,000, which brings the total since commencement to £2,304,008. In total the Trust has committed to funding of up to £3,123,687, resulting in a forward commitment of up to £819,679 as at the balance sheet date. This is directed toward providing skills and training for local organisations and the community, in addition to providing funds for local organisations to promote employment and growth. It is anticipated that this will increase further for the incoming year.

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THE GALLAHER TRUST

TRUSTEE REPORT (continued)

Financial review

The Trust was founded with £5,000,000 legacy donation from Gallaher Limited, received in December 2017. The majority of this legacy has been placed in an investment portfolio, maintained by investment managers. At the year end, the Trust is in a financially stable position, with net assets of approximately £4.1M. Investment income for the period amount to £121,452 which was in line with expectation. Gains, losses and revaluations ofthe share portfolio resulted in a surplus of£292,366. After the deduction of expenditure of£548,056 a net deficit of£134,238 was reported for the year, During the year the Investment Managers sought to reduce the level ofrisk in the investment portfolio, which was the strategy approved by the Trustees The reasons for doing so were:

• “ a desire to reduce volatility and increase liquidity as the Trust enters the next phase of cash requirements, * the current rates of return of fixed income assets as compared to prior years,

• — the reduced time horizon of the Portfolio moving forward, and

• " the proposed future increase in the withdrawal rate.

Structure, governance and management

The charity is a charitable trust governed by its Trust Deed, created on 15t November 2016.

The sole trustee is the company, The Gallaher Corporate Trustee Limited. Its directors are appointed in line with the provisions of the Trust Deed.

A Trust Protector has been appointed to oversee the governance ofthe Trust.

Reference and administrative details

Reference andand administrative details
Registered charityname:	The GallaherTrust
Trustee	GallaherCorporate TrusteeLimited
CharityCommission registrationnumber:	NIC106498
Registered office:	22-30BroadwayAvenue
	Ballymena,
	BT437AA

Funds held as custodian trustee on behalf of others

The charity does not hold any funds on behalf of others.

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THE GALLAHER TRUST

TRUSTEE REPORT (continued)

Statement of trustee’s responsibilities

The trustee is responsible for preparing the financial statements in accordance with applicable law and regulations.

Charity law requires the trustee to prepare financial statements for each financial year. Under that law the trustee has prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Charity law the trustee must not approve the financial statements unless it is satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including income and expenditure for that period. In preparing these financial statements, the trustee is required to:

• " select suitable accounting policies and apply them consistently; "observe the methods and principles in the Charities SORP-FRS102;

• " make judgements and accounting estimates that are reasonable and prudent; "state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statement; and

• "prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the trust’s transactions and disclose with reasonable accuracy at any time the financial position of the trust and enable it to ensure that the financial statements comply with the Charities Act (Norther Ireland) 2008. It is also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In the case of each director of the Trustee, at the date the Trustee’s Report is approved:

• " so far as the director is aware, there is no relevant audit information ofwhich the charity’s auditors are unaware; and

• they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the trust’s auditors are aware of that information.

Risk management

The Trust places a high degree of value in ensuring that it has appropriate risk management procedures in place. The key control in this respect is ensuring that the Trustees have full visibility of all financial, operational and governance matters. All financial and operational matters are presented to the Trustees for approval and review to ensure that they are at all times consistent with the Trust’s objectives. The appointment ofthe Trust Protector introduces a further level of governance control, who ensures that the Trustees operate within the desired framework of the Trust Deed.

Auditors

A resolution to appoint auditors will be proposed at the Annual General Meeting.

Approved by the Board as at 27 March 2026 and signed on its behalf by:

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rank Pp perry i f6
Director of corporate trustee
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7

THE GALLAHER TRUST

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEE OF THE GALLAHER TRUST

Opinion

We have audited the financial statements of The Gallaher Trust for the year ended 31st October 2025 which comprise the Statement of Finance Activities, Statement of Financial Position, 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) — (Charities SORP (FRS102)).

In our opinion, the financial statements:

• give a true and fair view of the state of the charitable trust’s affairs as at 31st October 2025 and of its incoming resources and their application for the year then ended;

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

• have been prepared in accordance with the requirements of the Charities Act (Northern Ireland) 2008.

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 Trust 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 Trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The trustee is responsible for the other information. The other information comprises the information included in the 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 ofthe 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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THE GALLAHER TRUST

INDEPENDENT AUDITORS' REPORT (continued)

Opinions on other matters

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

• = the information given in the trustee’s report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the trustee’s report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Trust and its environment obtained in the course of the audit, we have not identified material misstatements in the trustee’s report.

We have nothing to report in respect of the following matters in relation to which the Charities Act (Northern Ireland) 2008 requires us to report to you if, in our opinion:

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

• " the information given in the trustees’ report is inconsistent in any material respect with the financial statements; or

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

• " certain disclosures of trustees’ remuneration specified by law are not made; or

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

Responsibilities of Trustees

As explained more fully in the trustee’s responsibilities statement set out on page 6, the trustee is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustee is responsible for assessing the trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee either intends to liquidate the Trust 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.

9

THE GALLAHER TRUST

INDEPENDENT AUDITORS' REPORT (continued)

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

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 identified the laws and regulations applicable to the charity through discussions with directors and key personnel, and from our own knowledge and experience of the charitable sector. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities Act and related legislation, while also giving consideration to data protection regulations and the safeguarding of charitable funds.

• « The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations and the team remained alert to the possibility of fraud and non-compliance throughout the audit.

• " We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding ofhow fraud might occur. We did so through discussions with management as to their assessment of areas where fraud or non-compliance might occur, as well as considering the internal controls in place to mitigate risks of fraud and non-compliance.

• “In order to ascertain the extent of compliance with the laws and regulations, we made enquiries of management as to whether there was any actual or potential litigation, we reviewed legal correspondence, we inspected board minutes and we performed analytical procedures to identify any unusual or unexpected activity.

A further description of our responsibilities is available on the Financial Reporting Council’s website at www.fre.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Charities Act (Northern Ireland) 2008. Our audit work has been undertaken so that we might state to the Charity’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 Charity and the Charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Stevenson Senior Statutory Auditor

Loe,

for and on behalf of: Stevenson and Wilson, Statutory Auditor 22-30 Broadway Avenue Ballymena

27° March 2026

10

THE GALLAHER TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 3157 OCTOBER 2025

		Unrestricted Funds	Restricted Funds	Total	Total
		2025	2025	2025	2024
	Note	£	£	£	£
Incoming resources
Investmentincome	4	-	121,452	121,452	125,867
Totalincome		-	121,452	121,452	125,867
Resources expended:
Charitable activities	5	-	548,056	548,056	305,450
Totalexpenditure		-	548,056	548,056	505,450
Netgains oninvestments	6	-	292,366	292,366	509,789
Net movement in funds before transfers		7	(134,238)	(134,238)	130,206
Transfersbetween funds	7	-	-	-	-
Netmovement infunds			(134,238)	(134,238)	130,206
Reconciliation offunds:
Totalfundsbroughtforward		-	4,206,054	4,206,054	4,075,848
Totalfunds carried forward	- we		4,071,816 eee	4,071,816	4,206,054

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities.

The notes on pages 14 to 20 form part of these financial statements

11

THE GALLAHER TRUST

STATEMENT OF FINANCIAL POSITION / BALANCE SHEET AS AT 315? OCTOBER 2025

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||||||||| |---|---|---|---|---|---|---|---| |Note|2025|2024| |£|£| |Fixed|assets| |Intangible|fixed|assets|9|834|1,668| |Tangible|fixed|assets|10|351|526| |Investments|11|3,925,975|4,075,801| |3,927,160|4,077,995| |Current|assets| |Bank and cash|150,043|136,954| |150,043|136,954| |Creditors:|falling|due|within|one year|12|5,387|8,895| |§,387|8,895| |Net|current|assets|144,656|128,059| |Total|net|assets|13|4,071,816|4,206,054| |Restricted|funds| |Restricted|income|funds|14|4,071,816|4,206,054| |Total|restricted|funds|4,071,816|4,206,054| |Unrestricted|funds|I4|_| |Total|charity funds|4,071,816|4,206,054|

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The financial statements on pages 11 to 20 were approved by the Trustee as at 27" March 2026 and signed on its behalf by:

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ana
James Perry
Director of corporate trustee
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The notes on pages 14 to 20 form part of these financial statements

12

.

THE GALLAHER TRUST

CASH FLOW STATEMENT FOR THE PERIOD ENDED 31ST OCTOBER 2025

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|||||||| |---|---|---|---|---|---|---| |2025|2024| |£|£| |Cash|flows|from|operating|activities| |Net incoming/(outgoing) resources|(134,238)|130,206| |Net gains on investments|(292,366)|(509,789)| |Depreciation|and amortisation|1,009|1,009| |Decrease|in|creditors|(3,508)|(14,809)| |Net cash outflow from|operating|activities|(429,103)|(393,383)| |Cash|flows|from|investing|activities| |Expenditure|on|tangible|fixed|assets|-|-| |Proceeds from the|sale of|portfolio|shares|1,335,240|752,640| |Purchase of|investments through portfolio|(992,070)|(451,640)| |Net cash|inflow from|investing|activities|343,170|301,000| |Net decrease|in|cash|for the year|(85,933)|(92,383)| |Cash and cash equivalents|at the beginning of|the year|287,120|379,503| |Cash|and|cash|equivalent at the end|of the year|201,187|287,120| |Cash and|cash|equivalents|2025|2024| |£|£| |Cash|at bank|150,043|136,954| |Cash held|in|investment portfolio|51,144|150,166| |Cash and|cash|equivalent at the end|of the year|201,187|287,120|

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The notes on pages 14 to 20 form part of these financial statements

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THE GALLAHER TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2025

1. Trust information

The Trust was established in Northern Ireland under the Trust Deed dated 15t November 2016. The address of the registered office is 22-30 Broadway Avenue, Ballymena, BT43 7AA . The financial statements were authorised for issue by the Board on 27% March 2026.

1. Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

The financial statements have been prepared on a going concern basis 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 and Republic of Ireland (FRS 102) — (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The accounts are prepared in sterling, which is the functional currency of the charity.

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

Preparation of accounts on a going concern basis

The Trust has high levels of reserves which will facilitate the operations of the charity for the foreseeable future. These financial statements have been prepared on a going concern basis.

Incoming resources

Donations received comprise of all amounts receivable for the accounting period. Income is recognised when the Trust has established an entitlement to the income. For donations this is typically upon receipt.

Investment income comprises dividends and interest. Dividends are recognised at the date of dividend declaration. Interest received is recognised on an accruals basis. Gains and losses from the sale of investments are recognised within ‘Net gains/(losses) on investments’.

Resources expended

Resources expended are recognised in the period in which they are incurred.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services to its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Tangible assets

The tangible assets of the Trust comprise computer equipment. Additions are recognised at cost.

Computer equipment is depreciated at a rate calculated to reduce it to residual value at the end of its expected normal life on a straight line basis at a rate of 20% per annum.

The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the new disposal proceeds and the carrymg amount is recognised in the statement of financial activities and included in “other operating gains/(losses).”

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THE GALLAHER TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

1. Accounting policies (continued)

Intangible fixed assets

Intangible fixed assets are initially capitalised at cost. At each reporting date, the carrying value and the useful life ofthe intangible is reviewed. Ifcircumstances indicate that an impairment provision is required, this is immediately recognised through the Statement of Financial Activities. Amortisation is charged on a 20% straight-line basis to the Statement of Financial Activities to reflect the use of the asset over its estimated useful life.

Investments

The Trust’s investment in shares in the UK and worldwide markets have been included in the balance sheet at market value, based on external professional valuations.

Gains and losses arising from the revaluations are recognised within ‘Net gains/(losses) on investments’ in the Statement of Financial Activities.

Short-term debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Financial assets, including debtors, are reviewed at the reporting date to determine if there is any evidence of potential impairment. Any losses arising from impairment are recognised in the income statement in operating expenses.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts.

Financial instruments

The Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction price and subsequently measured at their settlement value.

Funds

Funds are classified as either unrestricted funds or restricted funds, defined as follows.

Unrestricted funds are expendable at the discretion of the trustees in furtherance of the objects of the charity. If parts of the unrestricted funds are earmarked at the discretion of the trustees for a particular purpose, they are designated as a separate fund. This designation has an administrative purpose only and does not legally restrict the trustee’s discretion to apply the fund. Restricted funds are funds subject to specific requirements as to their use which may be declared by the donor or with their authority or created through legal processes, but still within the wider objects of the Trust. Endowment funds are funds which have been given on the condition that the original capital sum is not reduced, but the income there from is used for the purpose defined in accordance with the objects of the Trust.

3. Critical accounting judgements and estimation uncertainty

Estimates and judgments made in the process of preparing the financial statements 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. The Trustee does not consider that there are any critical judgments made in applying the Trust’s accounting policies or that there are any critical accounting estimates or assumptions which may have a significant risk ofcausing a material adjustment to carrying amounts of assets and liabilities within the next financial year.

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: THE GALLAHER TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

4. Investment income

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|||||| |---|---|---|---|---| |Unrestricted|Restricted| |Funds|Funds|Total|Total| |2025|2025|2025|2024| |£|£|£|£| |Interest received from investments|-|62,558|62,558|50,362| |Dividends received|-|58,894|58,894|75,505|

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CABS 125,867

1. Charitable activities The Chairty qualifies as ‘Tier 1’ and so is not required to present expenditure on an activity basis. All expenditure is incurred toward the Charity’s main purposes and is disclosed by nature as follows:

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||||||| |---|---|---|---|---|---| |Unrestricted|Restricted| |Funds|Funds|Total|Total| |2025|2025|2025|2024| |£|£|£|£| |Charitable|activities| |Event expenditure|-|2,702|2,702|-| |Sponsorship|-|1,200|1,200|1,200| |General|-|1,129|1,129|3,304| |Award Funding|-|448,116|448,116|411,261| |Public relations|and communication|-|30,617|30,617|28,808| |Bank fees|-|194|194|195| |Management|charges|~|28,344|28,344|25,481| |Depreciation|-|1,009|1,009|1,009| |Raising|[funds]|-|§13,311|$13,311|471,258| |Portfolio management fees|-|23,644|23,644|24,501| |Governance|costs| |Trust Protector|-|8,252.|8,252|7,500| |Board meeting expenses|-|1,169|1,169|451| |Auditor’s remuneration — audit services|-|1,680|1,680|1,740| |-|11,101|11,101|9,691| |-|548,056|548,056|505,450|

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. . THE GALLAHER TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

5. Charitable activities (continued)

All charitable expenditure is incurred in connection with the grant-making activities ofthe Charity. The grants paid during the year are classified as follows:

	Grantspaid	Grantspaid	to
	to institutions 2025	individuals 2025		Total 2025	Total 2024
	£		£	£	£
Education, skills development andjob creation	448,116			448116	411,261
	448,116		-	448,116	411,261
DetailsoftheinstitutionstheCharity supportscanbefoundon itswebpage,https://thegallahertrust.org/
Net gains/(losses) on investments
	Unrestricted	Restricted
	Funds 2025	Funds 2025		Total 2025	Total 2024
	£	£		£	£
Gainsondisposalofshares Fair value gains/(losses) on revaluation of investments	- -	301,387 (9,021)		301,387 (9,021)	61,978 447,811
	-	292,366		292,366	509,789

1. Net gains/(losses) on investments

2. Transfers between funds

Unrestricted funds are spent or applied at the discretion of the trustees to further any of the charity’s purposes. Unrestricted funds can be used to supplement expenditure made from restricted funds. All funds in the trust are currently classed as restricted.

1. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

The Trust does not employ any staff. None of the directors of the corporate Trustee received any remuneration nor reimbursement for expenses. The trust protector received remuneration of£8,252 (2024: £7,5 00) in fulfilment of the duties of this role.

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: THE GALLAHER TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

9. Intangible fixed assets

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|||||| |---|---|---|---|---| |Website|Total| |Development| |Cost|£| |As at 1 November 2024 and 31% October 2025|4,170|4,170| |Amortisation| |As at 1 November 2024|2,502|2,502| |Amortisation charge for the year|834|834| |As at 31 October 2025|3,336|3,336| |Net book value at 31" October 2025|834|$34| |Net book value at 315 October 2024|1,668|1,668| |10. Tangible|fixed|assets| |Office|Total| |Equipment| |Cost|£|£| |As|at|1% November 2024|2,071|2,071| |Additions|-|_| |As at 31% October 2025|2,071|2,071| |Depreciation| |As|at 1 November 2024|1,545|1,545| |Depreciation|charge|for the year|175|175| |As at 31° October 2025|1,720|1,720| |Net book value at 31* October 2025|351|351| |Net book value at 31% October 2024|§26|526|

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THE GALLAHER TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

11. Investments

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|||||||| |---|---|---|---|---|---|---| |2025|2024| |£|£| |Opening|investment|4,075,801|3,874,646| |Interest received|62,558|50,362| |Dividends|received|58,894|75,505| |Profit/(loss)|on|disposal of|share|investments|301,387|61,978| |Management|fees|(23,644)|(24,501)| |Fair value|gains/(losses) on the|revaluation of|shares|(9,021)|447,811| |Withdrawals|(540,000)|(410,000)| |3,925,975|4,075,801| |Comprised|of:| |Listed|investments|3,874,831|3,925,635| |Cash and cash|equivalents|51,144|150,166| |3,925,975|4,075,801| |12. Creditors:|amounts|due within|one year| |2025|2024| |£|£| |Other|creditors|and accruals|5,387|8,895| |13. Analysis|of net|assets| |Unrestricted|Restricted|Total| |General| |£|£|£| |Fixed assets|-|1,185|1,185| |Investments|-|3,925,975|3,925,975| |Current assets|-|150,043|150,043| |Current|liabilities|-|(5,387)|(5,387)| |Net assets at 31st October 2025|-|4,071,816|4,071,816|

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7 THE GALLAHER TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

14. Funds of the charity

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|||||||| |---|---|---|---|---|---|---| |At Ist|Investment|Expend|At 31st| |November|Income|gains &|rh,|"|October| |2024|losses|ure|2025| |Restricted|funds|£|£|£|£|£| |Restricted income funds|4,206,054|121,452|292,366|(548,056)|4,071,816| |Unrestricted|funds|4,206,054|121,452|292,366|(548,056)|4,071,816| |General|fund|-|-|~|-|-| |Total funds|4,206,054|121,452|292,366|(548,056)|4,071,816|

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Purpose of Restricted funds

These funds are to be used towards the support of the charitable work of the trust.

15. Financial instruments

At the balance sheet date the Trust held the following financial instruments:

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||||| |---|---|---|---| |2025|2024| |£|£| |Financial|assets measured at fair value|3,874,831|3,925,635| |Financial|assets measured at amortised cost|201,187|287,120| |Financial|liabilities measured at amortised cost|5,387|8,895|

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16. Related party transactions

The Trust Protector received remuneration as detailed in note 8. There were no other related party transactions during the year.

17. Funding commitments

The Trust has made commitments to provide grant funding at the balance sheet date. The provision of this funding is dependent upon performance related conditions being met by the grantee. The total forward commitment at the balance sheet date is up to a maximum of £819,679 (2024: £928,705).

18. Controlling party

During the year The Gallaher Trust was under the control ofthe Trustee.

ee

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