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← Robert Gordon's College

2025-07-31-accounts

i : ay ye Pe j ‘ Annual Report and Financial Statements for F \ \ We reac \, \ pee Cae’ 1d ANN alee el the year ended 31 July 2025

Annual Report 2024-2025

This report covers the year up to July 2025 and outlines the College’s educational and financial activities during this time. Robert Gordon’s College has been a registered charity since January 1992 (SC000123) and these accounts are publicly available on both the RGC website and the Scottish Charity Regulator (OSCR) website.

3 Chair’s Introduction

Message from the 5 Head of College

Annual Education Report of 7 Robert Gordon’s College

18

Environmental, Social and Governance (ESG) Report

19 Bursaries

24 Financial Review

32

Financial Statements

Click on the article titles to navigate to the pages

Front cover image: Celebrate Aberdeen Parade 2025

Chair’s Introduction

Alongside a broad curriculum, personalised learning, and extensive co-curricular opportunities, our pupils excel academically, socially, and personally, preparing for whatever pathway they choose. Head of Senior School

College. The energy and diversity across the whole spectrum of our student body at Robert Gordon’s is quite remarkable and the range of their achievements and future pathways is truly impressive.

Welcome to the College’s Annual Report and Financial statements for the year ended 31 July 2025. I hope that you find the document interesting and informative – it is a valuable part of our stakeholder communication and casts a shining light on our achievements, financial position and challenges in continuing to serve the purpose of Robert Gordon when he instigated his endowment for the College nearly 300 years ago.

We are indebted to the efforts and passion displayed by all our staff in helping our pupils with their personal and collective achievements. Their commitment to the education, development, skills and experience in and beyond the classroom is quite exceptional. This is particularly true of their commitment to the pastoral care of all our children, so that they feel valued, respected and safe in their school every day, which builds the foundation for their incredible levels of success. We are hugely grateful to the whole team.

In the year since our last Annual Review, the College has continued to progress and build on the foundations provided by our many benefactors, whilst weathering the challenges presented by economic, demographic and governmental factors.

Our bursary and scholarship programme is at the heart of our ethos – providing deserving and talented youngsters with outstanding learning opportunities. Fulfilling this purpose allows us to offer a Gordon’s education to pupils who would otherwise be unable to access the

A most unwelcome development in January 2025 was the advent of VAT on school fees. This unnecessary tax on education and charities has undoubtedly had a significant impact across the independent school sector and the College has not been immune to this. It has inevitably impacted our school roll, added to the compliance burden and challenged our ability to address our charitable ethos. Most significantly, the new tax has directly added to the fees borne by our hard working families. It is simply not possible for the College to absorb the levy, but we have sought to respond as positively and responsibly as possible, with a relentless focus on our own cost structure and efficient operations. This will continue in 2026 and beyond, while absolutely seeking to maintain quality and breadth of opportunity and experiences for our deserving students.

L to R: Kevin Reynard, Junior School pupils on the first day back after the summer holidays; 1st XV Rugby team win the National Schools’ Plate final at Murrayfield

Much more positively, I am heartened by our recent announcements regarding investment in our playing field facilities at Countesswells and the launch of our strategic fund-raising campaign which is focused on enhancing our bursary programme and sports facilities. Both of these endeavours will enhance the Gordon’s experience and add to the sustainability and future proofing of the College.

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The College’s financial position remains robust – the Governors and leadership team continuously review liquidity, cash flow and performance against budget. We set our fees and seek to operate on a break even basis, while allocating appropriate funds for investment in the safety and quality of the College’s estate. Nonetheless, our income statement remains under pressure from a declining school roll and inflation – in particular in relation to staff and pensions costs that are beyond our direct control. Our balance sheet and cash flows remain robust, we have strong relationships with our lenders and our charitable funds and investments are well stewarded.

The rhythm of the College continues apace each year. I especially enjoy the seasonal celebration events each December and the end of term events in June. The school’s profile is strong across the sector and internationally and also in the local community. Relationships with MIT, GAIL and Ōtaki all serve to enhance the College’s reputation internationally, as we continually look to learn from the most innovative and significant trends and developments around the world. We are a local school with a global reach, and we are always striving to move forward with societal changes.

Our interactions with former pupils have been rewarding – for example Gordonian Association gatherings, regional dinners and Reunion Day in September – and are a testimony to the power and quality of the Gordonian network. The inauguration of the new memorial at Countesswells in November 2025 was very moving. The alumni network continues to be a key part of student development and opportunity and we are working very hard to strengthen relationships and hence the breadth and quality of Gordonian connectivity.

Finally – a heartfelt thank you on behalf of the College’s stakeholders and community to Mr Macpherson, his leadership team and my fellow Governors; their leadership, stewardship and governance enhance the College, ensure the quality of education and create opportunities for all pupils and staff. Hence, I am confident Robert Gordon’s is in good health and a strong position to weather current challenges and take on the future.

By the time our son started school, we already felt like part of the Robert Gordon’s family. Having never had a child starting P1 before everything was new to us, but the support we had both before the start of term and during the settling in period has been amazing. Parent of P1 pupil

Clockwise from top: P5 Bikeability; RGC Pipe Band and Highland dancers perform at the opening of the Aberdeen Christmas Village, Higher English class

Kevin D Reynard Chair of the Board of Governors

We continually \ Fi look to learn from the most innovative and significant trends and developments around the world.

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Message from the Head of College

What stands out most is the school’s commitment to fostering not just academic excellence, but also personal development, confidence, and kindness. My daughter comes home excited to share what she’s learned, and it’s clear she feels valued and supported. Parent of S1 pupil

Balmoral 5km run in the iconic bright orange Charlie House t-shirts. At our annual Senior School prizegiving ceremony, awards were presented by Charlie House’s Katie Bremner, who in return was presented with a cheque for over £15,000 which was raised by our pupils throughout the year.

The achievements of our pupils continue to inspire and this has been another outstanding year. The sheer volume of activity is impossible to capture completely, but our annual publication, the Gordonian, does an excellent job of providing an overview of the main areas of school life, and our website and social media features particular news stories to celebrate the endeavours and success of our pupils.

We are always grateful to our staff for the incredible commitment and professionalism that they show throughout the year. They create so many opportunities for our pupils, and help them through every challenge they face. I always like to pay tribute to staff who retire after many years of dedicated service to the College, and this year we said a fond farewell to Mike Maitland, Pam Cowling, Lorraine Walker, George Jamieson, Jackie Milne, Sarah Constable and Jane Inglis. Other outstanding staff who moved on to new pastures after long service include Donna Ellis,

We were particularly proud to launch a new charitable initiative this year. Our pupil-led Charities Committees usually support various good causes through both volunteering and fundraising, but we decided to support one main charity throughout the year. We selected Charlie House, which has a particularly strong attachment to the RGC community, and our pupils raised money this year as ‘“ well as giving a great deal of their time in b various initiatives. A highlight was the team of staff and pupils who participated in the

The achievements of our pupils continue to inspire and this has been another outstanding year.

L to R: Robin Macpherson; S5 Prize Giving; Staff and pupils ran the Balmoral 5k

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Craig McEwan, Craig Harper, Sam Walker, and Sharon Douglas. There is one person in particular I would like to pay tribute to, and this is our retiring Chief Financial Officer, Andy Lowden. Andy was a bursary pupil at RGC, a parent, a stalwart of the Gordonian Cricket Club, and worked for 14 years as Bursar, Chief Finance Officer, and Clerk to the Board of Governors. A humble man who never seeks the limelight, he steered the College through the COVID pandemic, multiple capital projects, and the many other challenges we have faced. He represents the very best of the RGC community.

The Governors of the College are an incredible source of support, and they are all unpaid volunteers who lead incredibly busy lives. On behalf of my colleagues, I thank them for their passion and commitment to the school. They balance support and challenge brilliantly, so that we can continue to improve the pupil experience and keep true to our founding purpose. I am personally very grateful to them all for the support they give me in my role, as they allow me to lean on their considerable professional expertise and experience.

It would be remiss of me not to mention the negative impact of the government’s decision to impose VAT on independent school fees, which has undoubtedly affected the College this year. The introduction of this policy in January 2025, mid-session and well ahead of the date we were initially told, has led to many families having to withdraw their children from the school. Every case is a tragic loss, and goes entirely against the Getting It Right For Every Child (GIRFEC) framework that underpins Scottish education. This challenge continues to impact us, and will be a recurring theme of this report.

I truly believe my life has been changed for the better thanks to my time at Gordon’s and none of that would’ve been possible without the bursary. Former pupil and bursary recipient, Class of 2025

L to R: Founder’s Day; Jackie Frary; Claire Tocher

However, to end on a positive note, Founder’s Day continues to be the event which epitomises the best of our community, and our orators Jackie Frary (Class of 2005) and Claire Tocher (Class of 2002, and S1 orator) were both bursary pupils at the school. Jackie told pupils:

“One thing Robert Gordon’s College and my parents taught me was to be curious and ask questions. Explore what you’re interested in and let your imagination run wild, because the future is there to be shaped – and you’re all part of it.”

We are proud to run the most transformational bursary programme in Scotland, and the messages shared by Jackie and Claire remind us exactly why RGC is a unique community with a very clear ethos and history. No government policy will ever change our commitment to education and philanthropy as set out by our founder, Robert Gordon, in 1729.

Robin Macpherson, Head of College We are proud to run the most transformational bursary programme in Scotland.

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7 bce | ae Annual Education Report of Robert Gordon’s College

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The RGC community

Robert Gordon’s College is a 3 to 18 school for over 1,400 pupils in the heart of Aberdeen. It consists of a Nursery, Junior School and Senior School with all three situated on the main campus at Schoolhill. In addition we have a 39-acre sports ground at Countesswells which is used for sport and outdoor education by all age groups throughout the year.

We have a large number of teaching staff, education support staff, and business support staff, as well as ad hoc staff in areas such as supply teaching and exam invigilation. We have approximately 400 full time, part time, ad hoc and supply staff, of which around 150 are teachers registered with the GTCS. All staff undergo a PVG check, and undergo regular and rigorous child protection training.

We have over 14,000 former pupils who are spread around the globe. Our Advancement Team keeps them connected with the school, and provides a range of social and professional events which create further opportunities for engagement and also benefit pupils currently at the school. In addition to this, our former pupils are represented by the Gordonian Association which

organises regional events and functions to keep Gordonians connected to one another, as well as associated sports clubs.

The vibrant life of our school community is captured in our annual publications. The Gordonian covers all of the events and successes of our pupils. The former pupil community, which is represented by the Gordonian Association, is covered in the Pelican.

We have over 14,000 former “a pupils who ¥ N are spread | oe Fo around the globe.

“From my very first day at Robert cPager) Gordon’s College, I felt very welcomed, and it quickly became clear just how Clockwise from top:Reunion Day unique this school is. I have never 2024; S5 Prize experienced such a strong sense of Giving; Junior community within a workplace before. Sports Day 2025 Weg Current staff member - 7t. V4 -

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RGC has five core values.

Our ethos is our values in action. It’s something you feel the moment you walk through the door. Some might call it a vibe, others an energy, but whatever the word, it’s unmistakable. It’s warm, ambitious, and full of purpose. Head of Junior School

Clockwise from top: Sports Day, Greenpower Goblins, S1 pupils at Scottish Adventure School during Projects Week, P2 visit Duthie Park, S2 pupils visited Ardeche during Projects Week

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RGC leadership structure

The leadership of the College covers academic and operational functions. These are overseen by the College Executive, which consists of the Head of College, Head of Junior School, Head of Senior School, the Chief Financial Officer (CFO), and the Chief Operating Officer (COO).

The Junior and Senior Schools are led by two distinct educational leadership teams.

The Junior SLT is led by the Head of Junior School, assisted by two Deputy Heads covering Nursery to P3 and P4-P7. They in turn are assisted by a team of Principal Teachers.

Senior SLT is led by the Head of Senior School, assisted by three Deputy Heads covering S2/3, S4/5, and pastoral care. There are two Heads of Year, for S1 and S6. Senior SLT is further supported by middle leaders, such as the Heads of Department and Heads of Guidance, as well as other specific leadership roles. There are four 3-18 Departments which provide specialist teaching across all ages and stages: the Creative Arts; Languages; PE and Sport; and Science. Each one of these departments has a head who is responsible for teaching and learning across all the age groups.

Clockwise from top left: Robin Macpherson, Head of College, Clare Smith, Head of Senior School, Jane Tulloch, Head of Junior School, Kenny Gunnyeon, COO, Laura Sutherland, CFO

Clear, structured academic and operational leadership supports pupils across all ages and stages.

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The Board The College Continuous of Governors Improvement Plan

The Board of Governors is led by a Chair and the Vice Chair.

Under the revised constitution (2023) there are representatives from:

We also co opt a number of Governors to ensure the Board as a whole has the capacity, breadth of skills and experience required to oversee the leadership of the College.

All Governors serve in a voluntary capacity and are not remunerated for their roles.

They undertake annual child protection training and are given the opportunity to spend a day in a particular area of the College to observe lessons, speak with pupils and get feedback from staff about school life.

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Priority 1: Academic Improvement

Priority 2: Priority 3: Priority 4: Pastoral Co-curricular Professional Learning

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Teaching and learning

We follow the Scottish Curriculum for Excellence, but as an independent school we are able to adapt the aspects of this that work well for our learners, as well as innovating in areas where we feel our pupils would benefit from a bespoke approach. In the Senior Phase, we have the broadest subject offering in the north east of Scotland, with 24 subjects available at National 5, 32 at Higher and 25 at Advanced Higher. We have an open presentation policy, where pupils are almost always likely to get their first choice of subject. Average class sizes across the whole of the Junior School, and the whole of the Senior School, are below 20. We offer smaller average class sizes in P1 and S6, to allow for effective transition for our youngest learners as well as university style seminars as preparation for our eldest pupils before they leave school. A major feature of the RGC pupil experience is specialist teaching in art, music, drama, languages, science, PE, and Sport across all age ranges from 3-18. We also offer a challenging Super-curriculum so that pupils can undertake enrichment activities and challenges in whichever subject they are passionate about.

Clockwise from top: Live at the Craig Theatre; We Will Rock You, Primary 1 Science; Ceramics; Primary 1 PE at Countesswells

Joining Robert Gordon’s College in S6 was one of the best decisions I’ve ever made, even though I was only here for one year the experience was incredibly impactful and I felt welcomed by both staff and students. The wide range of subjects offered at Robert Gordon’s gave me the opportunity to study courses that were not available to me elsewhere Former pupil, Class of ‘25

Average class sizes across the whole school are below 20 pupils.

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Teaching and learning

Attainment at RGC is outstanding at all ages and stages. In the Junior School, close to 100% of all pupils in every year group are achieving at the expected level, with a significant portion achieving above their expected level.

Exam results in the Senior Phase are super, with RGC being rated in the top 10 schools in the country in the Times Parent Power List. Key highlights include:

Academic success is due to our high focus on classroom pedagogy. We pay close attention to education research and make use of our global partnerships (such as GAIL and MIT) to ensure that we are innovative in what we do, but also informed by evidence. Our staff work incredibly hard on professional learning, exemplified in our in-house Professional Learning Pathways. Many teaching staff write for national press and publishing houses on their practice.

In 2024, the school was inspected by His Majesty’s Inspectorate of Education (HMIe). The school received a very strong : ~~o-__~~ report , and was rated as ‘excellent’ for 3.2 Raising Attainment and Equity for All Learners. RGC was also identified as sector leading in four areas:

These grades give our pupils excellent options on graduation from RGC.

A-C Grades A-C Grades
National 5
S5 Higher		 Aberdeen-
shire
81.3%
77.3%		 Aberdeen
City
75.3%
72.9%		 National
76.2%
73.6%		 Independent
Schools
94.6%
92.3%*		 Independent
RGC
96.5%
94.6%
Advanced
Higher		 72.3% 74.1% 72.2% 89.5% 94.8%

• Commitment to equity, diversity and inclusion (EDI)

*in Scotland

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RGC co-curriculum

RGC provides a vibrant co-curricular offering to pupils at all ages. Clubs, societies and activities cover the visual and performing arts, academic pursuits, sport, outdoor education, cultural engagement and service learning, alongside plenty of opportunities for socialising and fun. The Junior and Senior School each run their own specific programme, though some activities, such as the Pipe Band and Highland Dancing, cover age groups across both parts of the school. In total there are over 70 co-curricular clubs and activities in the Junior School, and over 120 in the Senior School. Service-based learning is particularly strong, as seen in the vibrant CCF and the very high uptake for the Duke of Edinburgh’s Award (one of the highest in Scotland). Pupils are actively encouraged to participate to develop socially and emotionally as they progress through the school.

Residential trips form a very important part of the RGC pupil experience. For Junior School pupils in P5-7 these are to Alltnacriche, Dalguise and Glasgow. There is also an optional P7 Ski Trip to Glenshee in January/February. The Senior School pupils have residential trips in Projects Week in June, with S1 going to various locations in Scotland, and S2 and S5 having the opportunity to travel abroad. In addition, there are many bespoke trip opportunities, such as the Geography trip to Iceland, the Physics trip to CERN, and the ski trip to Italy.

Clockwise from top: Infant Glee; P7 Ski trip; Junior Songwriting Club; Mountain Bike Club; S5 trip to Morocco; S2 trip to Ardeche

Dalguise was an amazing experience where new friendships were formed and were strengthened on this adventure in nature. I would definitely go again and I think it’s safe to say that Dalguise was a trip of a lifetime! P6 pupil

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Child protection and pastoral care

Pastoral care at the school is multi-layered and every child is well known to staff. Child protection and safeguarding are of paramount importance and we have sophisticated systems in place to ensure that we meet the needs of every child in our care. Although RGC has over 1,400 pupils, the ratio of pupils to teachers remains in line with the Independent School Council’s average for the sector.

In the Junior School, each class has one class teacher who is the principal contact for each child’s care and development. Across each year group the class teacher is supported by a competent Se classroom assistant, and children are well cared for by a playground fj > os supervisor during breaks and ‘y / lunch. There are no composite ; classes, and we have not had any classes with a ‘job-share’ arrangement in place.

We have a Wellbeing Centre staffed by highly qualified nurses, some of whom also work within the NHS. The Wellbeing Centre tracks and monitors pupil health across the school and this data is reported to the Board of Governors. The school also employs a counsellor for more serious mental health support. We have Heads of Guidance who follow the house structure; pupils from the same family are allocated to the same house, and therefore the same Head of Guidance, so the family is well known to them.

We have a specific Governors’ committee for safeguarding, which has external advisers for critical scrutiny.

Child protection and safeguarding are of paramount importance.

The rigorous systems we have in place for communication means that we all know our children’s academic, social and emotional needs in depth. This allows us to respond to any changes in a very proactive manner, ensuring we consistently get it right for all of our children and families. Head of Junior School

Clockwise from top: Nursery pupils enjoying Outdoor Education at Countesswells; S1 orienteering; P6 Incredible Illustrators club

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RGC Online

RGC Online entered its third year in 2024/2025, expanding beyond its original focus on Computing Science to become a broader platform for equitable access to subjects across Scotland.

In 2024/2025 we offered our second SQA qualification, Higher Applications of Mathematics. We also launched a new Quantum Computing module, developed in partnership with a PhD candidate from Brown University, complementing our existing modules in Game Design, Artificial Intelligence, Data Science and Machine Learning, Entrepreneurship and Cybersecurity.

During the year, RGC Online also secured qualifications approval for a further set of subjects, including Advanced Higher RMPS, Higher English, National 5 Latin and National 5 English, all of which will be introduced in 2025/2026. These developments represent a significant broadening of our academic offer and reinforce our mission to support pupils whose circumstances make traditional schooling challenging. Engagement from home educating families has continued to grow, and RGC Online received SQA approval to enrol mature learners for qualification courses.

This was also our first year working with ABZ Campus. Aberdeen City Council funded six pupils to study either Higher Computing Science or Higher Applications of Mathematics through RGC Online, and the newly approved subjects will contribute to their twilight provision for 2025/2026.

Network

affiliation

L to R: RGC Online Assessment Weekend; RGC is affiliated to the following RGC Online | associations which represent pupil is independent schools: awarded the Turing Award from The Scottish Council for Independent DressCode, Schools (SCIS) for top HMC (the Heads’ Conference) student The Independent Schools Council (ISC) in Higher Computing The Independent Schools Bursars’ Science Association (ISBA)

RGC & Leading Schools Online Independent & independent received schools SQA council approval to enrol mature learners for qualification courses.

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Educational partnerships

We are a member of the Global Alliance for Innovative Learning (GAIL), which consists of eight schools across six continents: RGC represents Europe and we took part in the GAIL conference in 2025 at Scotch College in Adelaide, on future leadership.

Our nursery provision is in partnership with Aberdeen City Council, as we provide the 1140 hours in a year round setting.

We partner with the Massachusetts Institute of Technology (MIT), which means we have visiting students each year working with staff and pupils on innovative educational programmes.

We have a historic partnership with the New Zealand government whereby the Ōtaki Scholar (the school captain in S6) visits New Zealand after graduating from RGC. This goes back to the sinking of the SS Ōtaki in 1917 during the First World War. We work closely with Ōtaki College on planning the visit,

and we have a reciprocal arrangement for an Ōtaki pupil to visit through the Everiss Trust. We also have a partnership with St Andrew’s College, Christchurch, where we host the Robert Burns Scholar on an annual basis.

We work in partnership on various areas with Robert Gordon University including student placements, archival material and sporting facilities. We share our sporting facilities with RGU to enable them to play BUCS fixtures at Countesswells on Wednesday afternoons.

Anushka was able to connect complex, cutting-edge topics with the everyday experiences of our pupils. She embodied exactly what we hope to inspire in our learners - curiosity, passion, and a vision for how technology can drive societal change. Head of Computing, reflecting on the MIT student’s visit

Clockwise from top: The GAIL Conference 2025; 2025 Everiss Scholar at the Cowie Memorial; 2025 Robert Burns Scholar visits Scotland; RGC Nursery teacher and pupils; MIT student teaching S1 Computing

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erCT THUML ARS | f ok Ve tt Hi i AY i !)) Environmental, Social . erat ri ~ ey fee * * HTI and Governance (ESG)

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Bursaries

The bursary I received not only allowed me to attend Gordon’s but opened up the horizon of opportunities that were available to me. The dedicated support, wide range of clubs available and funded lessons I received at Robert Gordon’s College helped me achieve various goals and allowed me to pursue my greatest passion at university, Music. Former pupil, Class of ‘25

Robert Gordon’s deed of mortification (written in 1729) set out a vision for a school that would support the children of ‘decayed burgesses’, to provide an education that they would otherwise not receive, in order to prepare them for the world of work and to contribute to society. Nearly three centuries later, the school is a registered charity and we take our founding as a contributor to wider society very seriously.

The school remains true to its founding ethos by running one of the most extensive bursary programmes in the UK, which is also sector-leading in Scotland. The majority of bursaries are ‘transformational’, ae ' which means 100% of the fees are covered as well as some of the ancillary costs. The Aberdeen and Grampian Chamber of Commerce Economic Impact Assessment (2024) showed that 39% of RGC bursaries go to pupils living in areas

L to R: Bursary recipients Ella Skinner, Class of 2022; Owen Izedonmwen, Class of 2025

of highest deprivation, as measured by the Scottish Index of Multiple Deprivation (SIMD). Whilst most of our bursaries are for pupils entering the school in S1 and S5, the Junior Foundationer Awards extend bursary provision to all ages in the Junior School (P1-7).

Bursaries are supported through a variety of means; many come from well established trust funds, such as the Aberdeen Endowments Trust (AET), the Duguid Trust and the Burnett Trust. The significance of the relationship with AET is demonstrated by the joint constitution with RGC, and also the presence of RGC Governors on the board of AET. Unfortunately, the Trustees of AET determined in 2023 that they are not able to issue any new bursary awards to RGC while they resolve certain issues regarding compliance with, and modernisation of, their constitution. We regret to report that this has led to a reduction of AET bursary pupils to date and a detrimental impact on the breadth of the College’s bursary programme.

Other bursaries are funded through donations provided by donors, many of whom are alumni of the College. Some of these are crowdfunded bursaries, such as the Edinburgh, Aberdeen and London bursaries.

We take our a founding as contributor to f wider society very seriously.

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Charity work and fundraising

This year, the school’s Charities Committee focused on supporting Charlie House. In total, pupils raised £15,113.32 to help children with life-limiting or life-threatening conditions across the north-east of Scotland.

In addition to Charlie House, we provided support to the following charities through volunteering and additional fundraising:

Aberdeen Cyrenians AberNecessities’s teenage clothing appeal The Empty Pots Initiative

Home Start’s ‘Cosy up for Christmas’ appeal and book drive for their shop

Instant Neighbour - food donations at Harvest and Christmas Foodbank collection

Rotary shoe box appeal

The Scottish Refugee Council The Trinity Centre Easter Egg appeal Camphill Community Trust

Clockwise from top: Aberdeen Cyrenians food bank collection; P3 Enterprise Fair raised £1277 for the Archie Foundation; S3 pupils volunteering at Camphill School

8 Public benefit : activities - we. . MP t

The school provides support to a wide range of organisations, networks and events that are civic, cultural, educational, charitable and commercial in nature. These include:

Aberdeen Children’s Hospital Aberdeen Civic Society Aberdeen and Grampian Chamber of Commerce Aberdeen Harbour Aberdeen Inspired - NUART festival Aberdeen Mosque and Islamic Centre Aberdeen Secondary Schools Netball Association Aberdeen Synagogue The ADHD Foundation The Astronomy Society Asylum and Refugee Care The Belmont Big Bash The Belmont Cinema Beyond Srebrenica Scotland

Gathimba Edwards Foundation

Inchgarth Community Centre Interfaith Scotland ITZA - the Great Tapestry of Scotland Macmillan Cancer Support

The MacRobert Trust Netball Scotland Umpiring Committee NHS Grampian Open Space Trust Order of the Scottish Samurai Peacock Visual Arts workshops Prosper

Robert Gordon University Rotary Club of Aberdeen Save Our Union Street The Scottish Rugby Union

The Burgesses of Guild of the City and Royal Burgh of Aberdeen

Clink Africa

The Denis Law Legacy Trust Fernielea Church Ferryhill Railway Heritage Trust Franco-Scottish Society

The Seven Incorporated Trades of Aberdeen Techfest

The University of Aberdeen

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Education support

We provide support to schools and promote educational initiatives in Scotland and abroad through the following networks and organisations:

A significant number of RGC staff provide support for the SQA, including marking and verification activities with other schools.

L to R: Junior School pupils learn about glaciers during British Science Week; Advanced Higher Computing

National 5 SQA subject marking, paper setting and team leadership:

Art, Business Management (Team Lead), Computing Science, Drama (Team Lead), Photography, Psychology, RMPS, Spanish Higher SQA subject marking, paper setting and team leadership: Biology, Business Management, Computing Science (Team Lead), Drama, Economics, Electronics, English, History, Human Biology, Applications of Maths, PE, Philosophy, A significant Photography, Physics, Psychology, Spanish number of Advanced Higher SQA subject marking, paper setting and team leadership: Biology, Business Management, Chemistry, Economics, ElecRGC staff tronics, English, History, Latin, Maths, Mechanics, Philosophy, Physics, Statistics Mrs Clare Smith, Head of the Senior School, is a board member provide of the Scottish Council for Independent Schools (SCIS). The Head of College, Mr Robin Macpherson, is a member of the HMC Education Committee; sits on the Diversity and Inclusion support Group for the ISC; is a trustee of Beyond Srebrenica; and is a trustee of the Mary Davidson Smith Clerical Fund. for the SQA.

RGC regularly takes student teachers on placements and encourages people to join the teaching profession by providing work experience for prospective PGCE applicants. RGC staff also support the University of Aberdeen’s Education Department by visiting trainee teachers at other schools to undertake assessments.

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Economic impact

We contributed significantly to public/government finances through VAT, PAYE and NIC contributions of £3.4 million in the year ended 30 June 2025.

We are a member of Prosper and the Aberdeen and Grampian Chamber of Commerce. We conducted an Economic Impact Assessment in 2024 with AGCC, which demonstrated that RGC saves local authorities £10.6m by educating children outside of the state sector. It also shows that RGC provides a Gross Value Added (GVA) contribution of £6.14 million annually to the North East economy. The report also found that:

Whilst fostering charitable awareness and understanding, the College provides opportunities for staff, parents and pupils to give back to others. AGCC Economic Impact Assessment 2024

Equity, diversity and inclusion

RGC is a highly diverse school in terms of its socio-economic profile. Our commitment to EDI was recognised in our HMIe inspection report. We have an EDI Liaison Group which consists of pupils, parents, former pupils, staff and external stakeholders. It meets on a termly basis and provides support and challenge on all issues relating to how the school delivers education and how it operates as an employer. We conduct an annual Gender Pay Gap Report, and have policies in place to ensure that RGC is an equitable employer for all staff in our community.

Our pupils lead an annual Diversity Week, which celebrates all cultures within our community. Our commitment to EDI follows our motto of ‘be all you can be’.

RGC is an equitable employer for all staff in our community.

L to R: Pupils wear traditional dress on Diversity Day; Panel session in our Windows and Mirrors series, which aims to open a window into the diverse experiences within our community,; Food stalls offering food from many different cultures

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Robert Gordon’s College net zero plan

Sustainability and net zero

We provide educational opportunities for our pupils in the curriculum, and also through our super-curriculum, principally by our partnership with Powering Futures. We have a Junior School co-curricular group called Green Beans, and in the Senior School we have a sustainability group called ROAR. We have reduced our energy consumption by 61% since our first Carbon Trust audit in 2011, and we will continue to invest in systems and technologies that help us to become more sustainable as an organisation. We work with Zero Matters with the aim of being the education arm of the energy transition.

The opportunities are exciting and the goal is clear - to become an anchor institution with a reputation for leading industry-related energy transition work, which will be a truly unique, inspiring legacy.

Robert Gordon’s College Carbon Footprint

We have undertaken a significant project by commissioning an independently calculated carbon footprint together with a strategy to become a net zero school.

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3.5%
Purchased services
11.2%
Purchased
goods
35.7%
Fuels
14.5%
Business
travel
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Emissions Area
Breakdown
18.1%
Commuting
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Phase 1

Phase 2

Phase 3

Initial focus:

Initial focus:

Initial focus:

  - **continuing retrofit programme**

Progressing to:

Progressing to:

Progressing to:

We work with Zero Matters with the aim of being the education arm of the energy transition.

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16.0%
Electricity
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1% Refrigerant and others

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-— Financial Financial Review

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Annual results

Operating environment

The annual operating budget set in May each year reflects the continuing highly challenging environment with change being a constant whilst our management and Governors remained focused on maintaining and enhancing our pupils’ experience. Political challenges to the UK independent sector continue, particularly following the Labour Party introduction of VAT on school fees. The flat local economy also means less families are able to afford and choose independent education. which we have previously shared with our parent community. We are always cognisant and sensitive to the fact that most of the economic and financial challenges faced by RGC are also faced by our community.

In recent years work was carried out to reduce staffing and operating costs as well as ensuring expenditure levels were proportionate to the projected pupil roll and fee income. These measures, along with maintaining reduced energy consumption and setting an affordable pay review, irrespective of the public sector pay bargaining outcome, enabled an inflationary increase of 3.9% to tuition fees. College Governors and staff balanced providing quality education and assessments, and managing finances in a prudent and sustainable manner. Capital and maintenance expenditure were again carefully controlled to preserve cash, with deferral of some works. The College’s financial objectives are to maintain expenditure and tuition fees at appropriate levels, generating a minimal net income while ensuring there is enough cash to reinvest in the school facilities and estate. These objectives continue to be modified in response to inflation, as well as current and predicted fiscal, local and national economic uncertainty. Headcount will be continually monitored to be at an appropriate level, and revenue streams other than tuition fees are being developed. Our trading subsidiary formally started trade from 1st January 2024 and this is the second set of consolidated accounts.

We moved into the current 2025/26 session and financial year with the College financially stable and sustainable going forward despite the implementation of 20% VAT on tuition fees

from 1st January 2025 and effectively added 2.5% to our wage costs with the Employers NIC increase and threshold changes. During the financial year the College contributed £3.4 million to public finances through VAT, PAYE and NIC. As reported, in this unstable economic and political environment for independent schools, there remains a preparedness to make further difficult decisions ahead.

Financial Performance

During the year ended 31 July 2025, the College charity recorded net income of £263k (2024 - £167k). After taking account of pension actuarial gains due to the asset ceiling restriction, there was a net increase in funds of £2.7 million (2024 - decrease of £1 million).

The overall financial performance in the year is considered satisfactory. Operational results were ahead of the budget recording a small surplus. Careful cash management enabled positive cash generation from operating activities of £1 million (2024 - £1.7 million).

Total income and endowments remained steady in both school and nursery tuition fees billed. Tuition fees income was £21.1 million. The annual tuition fee increase effective from August 2024 was 3.9%. The pupil roll at the year-end was 1,483 taking a half-day nursery place as one place in the roll.

Our estate has been well maintained over a number of years, whilst at the same time there is a continuous need for repairs, maintenance and upgrade activities. This expenditure category varies each year as budgets are set to provide the required level of maintenance for our historic, impressive and demanding campus, with, if necessary, the deferral of non-urgent works within the budgetary constraints applied.

Operating staff costs reported in our management accounts of £15.9m (2024 - £15m) were 75% of net tuition fee income (2024 - 71%). The number of full-time equivalent staff employed by the College increased in the year to 311 (2024 – 308).

Financial Restated Restated 31 July 31 July 31 July Year 31 July 2021 31 July 2023 2024 2025 Ended £'000 2022 £'000 £'000 £'000 (17 months) £'000 Total income and 26,429 21,189 23,285 25,251 25,035 endowments Net income (expenditure) 414 (891) (1,673) (67) 176 prior to gains/ losses Net cash provided by 1,072 1,825 668 1,680 1,042 operating activities Total Funds 29,709 32,343 33,903 32,858 35,536

Pension costs as a percentage of salaries was 20.5% (2024 - 18.6%).

Finance costs (interest paid on bank loans) decreased in the year, £436k (2024 - £534k) as loan balances reduced.

Fixed asset additions in the year, as detailed in Note 8, were £171k and depreciation of £1.2 million was charged.

Donations received in the year were £324k (2024 - £389k), despite the challenging economic environment.

Bank cash, liquidity and long term borrowing facilities

The College focuses on the generation and preservation of cash, especially during times of economic downturn or uncertainty, which is critical to enable investment in the College’s educational activity and to service bank borrowings.

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The Statement of Cash Flows shows net cash generated by operating activities of £1 million (2024 - £1.7 million). This was principally used to service bank interest and loan repayments.

Overall, as shown in Note 18, there was an increase in the total cash balance to £4.2 million at the end of the year (2024 - £4 million) and net debt as shown stood at £3 million (2024 - £4.2 million). Post year end we received NESPF money of £4.62 million. These funds are are held securely and earning interest while the Board reviews effective utilisation.

In order to meet its capital requirements and to support the Reserves policy noted on page 27, the College utilises structured long-term borrowing facilities. The College keeps these facilities, our working capital balances and cash flow projections under regular review to ensure that our debt servicing requirements and bank covenants can be met. The College maintains open and enabling communication with the College’s bankers.

Pension schemes

During the year the College participated in one defined contribution pension scheme (“APTIS”), and two multi-employer defined benefit pension schemes: the Scottish Teachers’ Pension Scheme (“STPS”) and the North East Scotland Pension Fund (“NESPF”).

The College operates a defined contribution pension scheme for all qualifying employees (APTIS). The assets of the scheme are held separately from those of the College in an independently administered fund.

The Scottish Teachers’ Pension Scheme (STPS) is an unfunded statutory public service pension scheme with benefits underwritten by the UK Government. The scheme is financed by payments from employers (26%) and from those current employees who are members of the scheme and paying contributions at progressively higher marginal rates based on pensionable pay, as specified in the regulations. The rate of employer contributions is set with reference to a funding valuation undertaken by the scheme actuary.

The College operated the North East Scotland Pension Fund, in which some of the College’s current and retired support staff

participated. The pension contributions paid by the College are determined by the scheme actuary considering the most recent triennial valuation prepared as of 31st March 2023, and adopting a roll forward approach to value the pensions liability as at 31st July 2025.

The Governors closed the scheme to new entrants in 2016. Following the completion of a staff consultation in June 2025, the College exited the NESPF pension scheme on 26 August 2025. On exit of the scheme a cash refund of £4.62 million was received. In effect this represented overpayments made by the College over decades due to the conservative nature of these assumptions which crystallised on exit.

Further information on all pension schemes are reported in Note 19.

Investments

The Governors’ policy is to invest donations arising from the Gordon’s Today and Forever funds referred to on page 27. The investments continue to be managed on behalf of the Governors by independent investment advisors. An Investment Policy is in place, Governors regularly review market trends and agree investment strategy and objectives annually, and more often if necessary. The established objectives are to maintain income as a priority, whilst also seeking to preserve, wherever possible, the capital value of endowment investments for the future. These investments are primarily held for the purpose of generating income to support the College’s bursary programme. Investment income for the period was £596k (2024 - £575k) of which £357k was allocated to appeal funds.

The market value of investments at 31 July 2025, as detailed in Note 9, were £9.6 million (2024 - £9.3 million). Donations and legacies were invested, as reported above, and the College’s invested funds performed satisfactorily given market conditions.

Public Benefit - Fee Assistance

A number of benefactors have provided funds to be used for the provision of scholarships, bursaries, grants, prizes and other awards to pupils of the College, primarily when attending school but also when entering further education. Some of these funds are administered by the Aberdeen Endowments

Trust, which has supported pupils who would not otherwise have benefited from education provided by the College. Other funds are administered directly by the Governors and include awards from other trusts to candidates proposed by the school. The College continues to receive and be grateful for the bursary support provided by the Aberdeen Endowments Trust and other philanthropic contributors.

The Governors believe that the College’s fee assistance policy provides significant public benefit by allowing access to an independent education for many pupils whose parents would otherwise be unable to meet the tuition fees.

Guidance from the Office of the Scottish Charity Regulator (OSCR), indicates certain key measures related to means tested bursaries are used by OSCR as part of the assessment of independent schools’ charitable status. These are carefully monitored by the Governors and, taking the school roll to be the average roll over the three terms within the financial year, the key measures are:

2025 2024 2023 2022 Means tested bursaries as a % 7.9% 8.5% 8.3% 8.7% of fee income Means tested bursaries as a % 8.2% 9.4% 9.4% 9.2% of school roll 100% means tested bursaries as 6.2% 7.4% 6.8% 6.7% a % of school roll

Unfortunately, the Trustees of AET determined in late 2023 that they are not able to issue any new bursary awards to RGC while they resolve certain issues regarding compliance with, and modernisation of, their constitution. Unfortunately this has led to a reduction of 29 AET bursary pupils to date, and continues to increase. This has had a detrimental impact on the breadth of the College’s bursary programme.

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Reserves or Funds of the College

Notes 15 and 16 of the financial statements show the assets and liabilities attributable to the various funds by type, provide descriptions of the funds and summarise the year’s movements on each fund.

The Governors’ overall aim is to continue to build an appropriate level of reserves to ensure that the College’s long term financial strength and independence are sustained.

Unrestricted funds amounted to £21.8 million (2024 - £19.2 million), the increase being due to an investment gain on capital and revenue. Given the extent of investment in fixed assets, it is the College’s policy to monitor the level of unrestricted funds whilst focussing on liquidity, key to that being the maintenance of sufficient liquidity to meet ongoing working capital requirements. To support this policy, the College utilises long term borrowing facilities, structured to enable debt servicing to be achieved and any covenants to be met with sufficient headroom. The Governors keep these facilities under regular review.

Endowment Funds amounted to £7.6 million (2024 - £7.5 million). These donated funds are restricted and are required by donors to be held as capital. It is policy to invest the funds to preserve the capital and there are fundraising strategies in place to grow these funds. The income generated is applied in line with donor requirements.

Restricted Income Funds amounted to £491k (2024 - £501k). These funds include an element of accumulated income from restricted special funds which are yet to be applied due mainly to the original donor’s terms specifying how the College can apply the funds. It is policy to protect and preserve this restricted income which cannot be currently applied and, over time, to explore ways to allocate the funds in line with good governance.

Unrestricted Funds

Restricted Appeal Funds, net of the above, amount to £5.7 Unrestricted Funds million (2024 - £5.7 million). These funds represent donations received arising from appeals run by the Advancement Office

under the Gordon’s Today, Gordon’s Tomorrow, Gordon’s 2025 2024 Forever and RGC Online headings, as detailed in Note 15. The

majority of the funds have been invested in a listed investment £21.8 £19.2

portfolio and there are fundraising strategies in place to grow million million these funds.

Going Concern

At the time of approving the financial statements the Governors Endowment Funds have a reasonable expectation that the College has adequate resources to continue in operational existence for the 2025 2024 foreseeable future. This expectation is based on reviewing, analysing and challenging detailed annual budgets, forward looking trading and cash flow projections prepared by £7.6 £7.5 management, as well as considering reasonably plausible million million downside scenarios. This going concern evaluation also takes into account the College’s debt, availability of overdraft facilities, and ability to meet its banking covenants, and has been prepared for a period extending more than 12 months from the Restricted Income Funds date of approving these financial statements. Accordingly, the Governors have continued to adopt the going concern basis in preparing the financial statements - see Note 1. 2025 2024 £491,000 £501,000

Restricted Income Funds

Restricted Appeal Funds

2024 £5.7 million

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Risk management

The Board of Governors is

Child Protection Digital and and safeguarding data protection of pupils, current compliance, and past alongside cyber security

responsible for the oversight of the risks faced by the College. Management maintains and updates a Risk Register. Risks are identified, assessed and appropriate control measures refined and established throughout the year. The various Committees, detailed under Governance on page 29, consider the relevant risks and how these have been addressed by management, as well as any particular issues arising. The formal review and oversight of the College’s risk management processes, including the Risk Register, is undertaken on a regular basis by the Audit & Risk Management Sub-Committee.

Impact of market and economic conditions on the College operational goals an objectives

Reputation within local and national communities

The principal risks and uncertainties currently facing the College, and captured in the Health, College-wide safety and Risk Register, environmental are: compliance

Business Continuity, particularly the ability to continue teaching following a serious incident

Estates

Legislative and Economic and regulatory financial factors, compliance, including cost particularly pressures and charitable consequences of status VAT in delivering a balanced budget

development, capital projects and maintenance

There are also political risks and uncertainties related to the independent school sector in Scotland and the United Kingdom which are out with the College’s direct control. The Scottish Council of Independent Schools represents its member schools and communicates and negotiates with the Scottish Parliament, the Government and public and private bodies on behalf of the sector regarding devolved matters. The Independent Schools Council (ISC), the Heads Conference (HMC) and the Independent Schools Bursars Association (ISBA) carry out a similar role, primarily within England, and regarding UK Government and reserved matters.

The key governance and/or management controls adopted by the College, and subject to regular dialogue and review amongst the Senior Leadership Team and Governors, include:

Through the risk management processes established for the College, the College Board of Governors is satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

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Governance

The Governors who held office during the period, and up to the date of publication of this report, were:

Governors

Mr Kevin Reynard BCom, CA Mrs Elizabeth Clark BEd, MEd (moved to Co Opted September 2024)

Mr William Diack MA

Mr David Knapman BA, BSc (Hons), PGCE, MPhil Mr Laurence McLeod MCRIS (moved to Co Opted October 2025) Mr David Parkinson Mr Robert Ruddiman LLB, DipLP, NP Professor Yvonne Bain BSc, PhD Mrs Hazel Collins BA, CA Mr David Rennie LLB

Mrs Veronica Strachan LLB (Hons), Dip LP, PgCert TLT Professor Mirela Delibegovic BSc (Hons), PhD, FRSE (moved from Co Opted to an appointed Governor January 2026) Miss Evie Rae LLB (Hons), DipLP, NP

Nominated by/Co Opted

Co Opted Co Opted

Presbytery of the North East and the Northern Isles Co Opted Co Opted

Seven Incorporated Trades of Aberdeen Co Opted Aberdeen Endowments Trust Co Opted Gordonian Association Robert Gordon University University of Aberdeen

Co Opted

Senior Leadership Team

The Senior Leadership Team and members of the College Strategy Group that served during the year and up to the date of this report, were:

Mr Robin Macpherson BA (Oxon), MSc, FRSA Mrs Clare Smith MA Mrs Jane Tulloch MA Mr Kenneth Gunnyeon BSc (Hons) Mrs Laura Sutherland LLB CA

Head of College Head of Senior School Head of Junior School Chief Operating Officer Chief Financial Officer (appointed March 2026) Deputy Head Senior School Deputy Head Senior School Deputy Head Senior School Deputy Head Junior School Deputy Head Junior School Director of Advancement

Mr Neil Buchanan BSc Mr Peter Robin Fish MA (Oxon) Mrs Claire Cowie MA (Hons) MLitt Mrs Sally-Ann Johnson MEd, BEd Mrs Varie MacLeod BEd, SQIE Mrs Laura Presslie BA

Chief Financial Officer (retired June 2025) Chief Financial and People Officer (appointed February 2025, resigned February 2026)

Mr Andrew Lowden MA, CA

Mrs Anna Cairns

Additions

Mrs Annie Kenyon (appointed March 2025) Mr Derek Rettie BA (Hons), PGDip (appointed October 2025)

Co Opted Gordonian Association

Retirees

Mr Richard Tinto (resigned December 2024) Mrs Jo-Anne Murray (resigned January 2026) Mrs Lynne Clow (resigned December 2025) Dr Olushola Ajide (resigned January 2026)

The Governors’ principal general duties are described on page 30. Several but not all of these duties, including the development for approval and subsequent implementation of the Board’s strategy and policies, and the day to day running of the College, are delegated to the Head of College, supported by the Senior Leadership Team. The College’s delegation of authority recognises that the Board of Governors are responsible for making sure the specific duties are met.

Co Opted University of Aberdeen Co Opted Aberdeen Endowments Trust

L to R: Pupils in P5 rehearsing for their Drama Show, RGC Pipe Band at the Tall Ships 2025

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L to R: Celebrate Aberdeen parade, Nat 5 Mandarin

Governors’ Responsibilities

The Governors’ principal general duties include:

at any time the | ae financial position of the College and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005,

the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the College’s constitution. They are also responsible for safeguarding the assets of the Group and College and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Regarding financial reporting, the Governors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in Scotland 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 Group and College and of the incoming resources and application of resources of the Group and College for that period. In preparing these financial statements, the Governors require to:

The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy

The Board of Governors reviews its performance and activities on an ongoing basis. The structure of committees, agendas and scope of activities regularly evolve to ensure that Governance is focused and relevant.

Recruitment and Training of Governors

In considering nominations for appointment to the Board of Governors, the Nominations Committee, having sought sector advice, periodically considers the particular skills and expertise which are felt to be desirable and helpful and include areas such as education, finance, child welfare, diversity, legal matters, fund raising, communications and marketing, human resources, and property and construction. Efforts are made to achieve a composition and balance of these and other skills within the Board. A skills survey then identifies gaps thus guiding the recruitment and selection process.

On appointment, Governors participate in an induction process involving meetings with the Chair, the Head of College, the Chief Financial Officer and Clerk to the Governors in order to gain an appreciation of the objectives of the School and its operation and their duties as Governors and charity trustees. In addition, the responsibilities of the Board and its Governors to the pupils, staff, parents and the wider community are explained. This also includes the legal responsibilities and obligations of operating an independent school within the Scottish education system and the relationship with the Scottish

Executive and His Majesty’s Inspectors of Education and other government bodies. A Trustee training workshop for Governors is also made available through the Scottish Council for Independent Schools.

Governors are encouraged to visit the College at any time and there are specific slots set aside for Governors to visit the school during the day to engage with staff and pupils. Governors are also invited to attend all main College events and take an active interest in the College community. Governors are expected to support and enhance the public reputation of the College in the community.

Through the Scottish Council for Independent Schools, which represents the vast majority of independent schools in Scotland, special seminars are provided for school Governors and the Governors of Robert Gordon’s College are encouraged to attend such events. Governors attend briefings and seminars provided by other UK sector providers, such as HMC and AGBIS. Governors are briefed on relevant information received by the College relating to the educational provision and changes in legislation and

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30

the Head of College and the Chief Financial Officer provide regular updates at Board and Committee meetings.

Members of the Board give a great many hours of their time to the College attending meetings of the Board, committees, sub-committees and working groups, as well as College events, providing advice and guidance, and supporting the members of the Executive. The value of such time is significant and is greatly valued by the Chair and Senior Leadership Team. Members of the Board receive no remuneration for the services they provide to the College in their capacity as Governor.

Board of Governors Composition

The composition of the Board of Governors is determined by the statutory instrument, The City of Aberdeen Educational Endowments Scheme 2023. Some Governors are elected by various bodies, as detailed earlier, and service on the Board is for a minimum term of three years. The Board also includes a number of Governors who are co-opted by the College Governors. Retiring Governors may be re-elected. The Governors, as trustees of the College, are responsible for overall management and control. The Board of Governors meets at least four times a year to review financial and operational performance and strategy and is supported by a number of committees, each of which operates in accordance with written terms of reference approved by the Board. There are various committees which meet regularly throughout the year including:

the teachers’ national pay scales and established uplifts approved by the Governors for promoted teaching staff. For those staff not remunerated by reference to national pay scales, the Governors serving on the Remuneration Sub-Committee set remuneration annually by reference to sector salary survey information and local market and sector conditions.

STATEMENT OF DISCLOSURE TO AUDITOR

By means of a letter to the auditors, the Board of Governors, having made appropriate enquiries, provided the following representations to the best of their knowledge and belief: generally that they had fulfilled their responsibilities as trustees, all the transactions undertaken by the Group and College have been properly reflected and recorded in the accounting records, the accounting records have been made available to the auditors for the purpose of the audit and the auditors have been provided with unrestricted access to all appropriate persons within the College, and with all other records and related information requested, including minutes of all Governor meetings and correspondence with the Office of the Scottish Charity Regulator. Specific detailed representations were also provided regarding adjustments and disclosures, internal controls, assets and liabilities, accounting estimates, loans and arrangements, legal claims, laws and regulations, related parties, subsequent events, going concern and grants and donations.

By order of the Board of Governors MR KEVIN DUNCAN REYNARD, BCom, CA Chair

Solicitors:

Mackinnons Solicitors 14 Carden Place, Aberdeen AB10 1UR

Morton Fraser MacRoberts 9 Haymarket Square Edinburgh EH3 8RY

Bankers: The Royal Bank of Scotland Queens Cross Branch, 40 Albyn Place, Aberdeen AB10 1YN

Investment Managers: LGT Wealth Management Limited One Lochrin Square, 92 Fountainbridge, Edinburgh EH3 9QA

Auditor: Azets Audit Services Statutory Auditor Chartered Accountants Quay 2 139 Fountainbridge Edinburgh EH3 9QG

Remuneration of Key Management Personnel

The Governors Remuneration Sub-Committee addresses the remuneration of key management personnel, following

Principal Address: Robert Gordon’s College Schoolhill, Aberdeen AB10 1FE Website: www.rgc.aberdeen.sch.uk

L to R: RGC 1st XV Rugby team won the National Schools Plate 2025, Nursery Baking Club

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31

Financial a Statements

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Independent Auditor’s report to the Governors of Robert Gordon’s College for the year ended 31 July 2025

Opinion

We have audited the financial statements of Robert Gordon’s College (the parent charity) and its subsidiary (the group) for the year ended 31 July 2025 which comprise the Consolidated and Parent Charity Statement of Financial Activities; the Consolidated and Parent Charity Balance Sheet; the Consolidated and Parent Charity Statement of Cash Flows; and the 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).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our 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 audit 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 group’s and parent charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the 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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of Governors

As explained more fully in the Governors’ responsibilities statement set out on page 29, 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 group’s and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Governors either intend to liquidate the parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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

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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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group and parent charity, including the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and taxation, data protection, anti-bribery, employment and health and safety legislation;

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Extent to which the audit was considered capable of

detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the FRC’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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

We assessed the susceptibility of the group and parent charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

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

Use of our report

This report is made solely to the parent charity’s Governors, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

Our audit work has been undertaken so that we might state to the parent charity’s Governors, as a body, 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 parent charity and the parent charity’s Governors, as a body, for our audit work, for this report, or for the opinions we have formed.

Azets Audit Services Statutory Auditor Chartered Accountants Quay 2 139 Fountainbridge Edinburgh EH3 9QG

Date: 30th March 2026

Azets Audit Services is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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Group Statement Of Financial Activities For The Year Ended 31 July 2025

Year to Year to
Unrestricted Restricted Endowment 31 July 31 July
Funds Funds Funds 2025 2024
Note £’000 £’000 £’000 £’000 £’000
Income and Endowments From
Charitable activities 2 24,017 - - 24,017 24,148
Investment income 239 357 - 596 575
Donations and legacies 3 110 214 - 324 389
Trading and other income 220 - - 220 189
Total income and endowments 24,586 571 - 25,157 25,301
EXPENDITURE ON: 4
Charitable activities (23,970) (597) - (24,567) (24,842)
Raising funds: fundraising and publicity costs (396) - - (396) (526)
Total expenditure (24,366) (597) - (24,963) (25,368)
Net income/(expenditure) prior to gains and losses 220 (26) - 194 (67)
Net gains on investments 9,15 34 9 44 87 236
Net (losses) on investment in subsidiary charity - - - - (2)
Net income/(expenditure) 254 (17) 44 281 167
Other recognised gains/(losses):
Actuarial gain/(loss) on defned beneft pension plans		 19 2,415 - - 2,415 (1,212)
Transfers between funds 15 - (64) 64 - -
Net movements in funds 2,669 (81) 108 2,696 (1,045)
Reconciliation of funds
Fund balances at
31 July 2024 15 19,166 6,232 7,460 32,858 33,903
Fund balances at
31 July 2025 15 21,835 6,151 7,568 35,554 32,858

All items dealt with in arriving at the net income/(expenditure) for the period relate to continuing activities. The notes form part of these financial statements.

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Charity Statement Of Financial Activities For The Year Ended 31 July 2025

Income and Endowments From
Charitable activities
Investment income
Donations and legacies
Trading and other income
Total income and endowments
EXPENDITURE ON:
Charitable activities
Raising funds: fundraising and publicity costs
Total expenditure
Net income/(expenditure) prior to gains and losses
Net gains on investments
Net (losses) on investment in subsidiary charity
Net income/(expenditure)
Other recognised gains/(losses):
Actuarial gain/(loss) on defned beneft pension plans
Transfers between funds
Net movements in funds
Reconciliation of funds
Fund balances at
31 July 2024
Fund balances at
31 July 2025
Note
2
3
4
9,15
19
15
15
15		 Year to
Year to
Unrestricted
Restricted
Endowment
31 July
31 July
Funds
Funds
Funds
2025
2024
£’000
£’000
£’000
£’000
£’000
24,017
-
-
24,017
24,148
239
357
-
596
575
110
214
-
324
389
98
-
-
98
139
24,464
571
-
25,035
25,251
(23,970)
(597)
-
(24,567)
(24,842)
(292)
-
-
(292)
(476)
(24,262)
(597)
-
(24,859)
(25,318)
202
(26)
-
176
(67)
34
9
44
87
236
-
-
-
-
(2)
236
(17)
44
263
167
2,415
-
-
2,415
(1,212)
-
(64)
64
-
-
2,651
(81)
108
2,678
(1,045)
19,166
6,232
7,460
32,858
33,903
21,817
6,151
7,568
35,536
32,858

All items dealt with in arriving at the net income/(expenditure) for the period relate to continuing activities. The notes form part of these financial statements.

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Balance Sheet as at 31 July 2025

Balance Sheet as at 31 July 2025
Group Group Charity Charity

2025		 2024 2025 2024
Note £’000 £’000 £’000 £’000
FIXED ASSETS
Tangible assets 8 27,173 28,216 27,173 28,216
Investments 9 9,607 9,313 9,607 9,313
36,780 37,529 36,780 37,529
CURRENT ASSETS
Debtors: amounts failing due within one year 10 1,486 1,384 1,465 1,479
Bank and cash 4,223 4,092 4,199 3,981
5,709 5,476 5,664 5,460
CURRENT LIABILITIES
Creditors: amounts falling due within one year 11 (4,199) (3,923) (4,172) (3,907)
NET CURRENT ASSETS 1,510 1,553 1,492 1,553
TOTAL ASSETS LESS CURRENT LIABILITIES 38,290 39,082 38,272 39,082
CREDITORS:amounts falling due after more than 12 (7,356) (8,175) (7,356) (8,175)
one year
19 4,620 1,951 4,620 1,951
DEFINED BENEFIT PENSION ASSET
NET ASSETS 35,554 32,858 35,536 32,858
FUNDS OF THE COLLEGE:
Unrestricted funds
General 15 20,737 18,127 20,737 18,127
Designated 15 1,098 1,039 1,080 1,039
Restricted funds 15 6,151 6,232 6,151 6,232
Endowment funds 15 7,568 7,460 7,568 7,460
TOTAL FUNDS 35,554 32,858 35,536 32,858

The financial statements were approved by the Board of Governors on 30th March 2026 and signed on their behalf by:

MR KEVIN DUNCAN REYNARD, BCOM, CA (Chair) Governor we MR ROBERT J. A. RUDDIMAN whl. LLB, DIPLP, NP Governor

The notes form part of these financial statements.

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Statement Of Cash Flows For The Year Ended 31 July 2025

Net cash provided by operating activities
Investing activities
Dividends and interest received
Purchase of tangible fxed assets
Purchase of investments
Proceeds from sale of investments
Net cash provided by investing activities
Financing activities
Interest paid on bank loan and overdraft
Repayment of bank loan
Net cash used in fnancing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at start of reporting period
Cash and cash equivalents at end of reporting period
Note
17
8
9
9
4
13
18		 Group
Group
Charity
Charity
2025
2024
2025
2024
£’000
£’000
£’000
£’000
955
1,791
1,042
1,680
596
575
596
575
(171)
(143)
(171)
(143)
(1,195)
(1,338)
(1,195)
(1,338)
1,292
1,406
1,292
1,406
522
500
522
500
(436)
(534)
(436)
(534)
(606)
(566)
(606)
(566)
(1,042)
(1,100)
(1,042)
(1,100)
435
1,191
522
1,080
4,145
2,954
4,034
2,954
4,580
4,145
4,556
4,034

The notes form part of these financial statements.

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Notes To The Financial Statements For The Year Ended 31 July 2025

1 Accounting Policies

CHARITY INFORMATION

Robert Gordon’s College is an independent co-educational day school providing all-round education and bursaries for children from 3 to 18 years of age.

The College is established under the City of Aberdeen Educational Endowments Scheme 2023 and is registered with the Office of the Scottish Charity Regulator with registration number SC000123. The registered office is at Schoolhill, Aberdeen, AB10 1FE.

Further details are set out within the Governors’ report.

GENERAL INFORMATION AND BASIS OF PREPARATION

These accounts have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102 and UK Generally Accepted Accounting Practice. The financial statements have also been prepared in accordance with the Charities Accounts (Scotland) Regulations 2006 (as amended), the Charities and Trustee Investment (Scotland) Act 2005 and the City of Aberdeen Educational Endowments Scheme 2023. The charity is a Public Benefit Entity as defined by FRS 102.

The accounts are prepared in pounds sterling, which is the functional currency of the College. Monetary amounts in these financial statements are rounded to the nearest £1,000 where indicated.

The accounts have been prepared on a going concern basis under the historical cost convention, modified to reflect the carrying of investments at fair value. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

BASIS OF CONSOLIDATION

The consolidated financial statements incorporate the results of Robert Gordon’s College and its subsidiary undertaking, Robert Gordon’s College (Trading) Limited on a line by line basis.

GOING CONCERN

At the time of approving the financial statements, the Governors have a reasonable expectation that the College has adequate resources to continue in operational existence for the foreseeable future. This expectation is based on reviewing and analysing detailed annual budgets and longer term business plans, forward looking trading and cash flow projections prepared by management. This going concern analysis also takes into account the College’s debt, availability of overdraft facilities, including reasonably plausible downside scenarios, and has been prepared for a period extending more than 12 months from the date of approving these financial statements. Accordingly, the Governors have adopted the going concern basis of accounting in preparing the financial statements.

FEES

Fees and other income include charges for the period, such as tuition fees (less staff fee reductions), scholarships, bursaries and other contributions. Fee revenue is presented net of output VAT in the financial statements. Income is recognised in the period when the related teaching and services are delivered. Fees billed in advance are recorded as deferred income, while fees billed after the service is provided are recorded as accrued income.

The cost of scholarships included within the expenditure is funded by the College’s Unrestricted, Special, and Appeal Funds.

Since the introduction of VAT on independent school fees with effect from 1 January 2025, the school has renewed its VAT status and implemented approprate accounting procedures to ensure compliance with the new legislation. Tuition fees and other taxable supplies are treated in accordance with current VAT regulations and output VAT is accounted for where applicable.

DONATIONS AND LEGACIES

Donations are recognised when the College becomes entitled to the income, receipt is probable, and the amount can be measured reliably. Donations subject to specific wishes of the donors are allocated to the relevant restricted funds, or to endowment funds where the amount is required to be held as permanent capital.

Legacy income is recognised when the College becomes entitled to the income, receipt is probable, and the amount can be measured reliably. This is generally the earlier of the charity being notified of an impending distribution or the legacy being received. Where the College has been notified of a legacy within an accounting period, but amounts are yet to be received, all information available is used to determine the amount expected to be received; however, on occasion, there is insufficient information available for a reliable measurement. On these occasions, the legacy is recognised when the amount becomes reliably measurable.

INVESTMENT INCOME

Investment income is earned through holding investment portfolios and includes both dividends and interest. Income is recognised in the period to which it relates.

EXPENDITURE

Expenditure is accounted for on an accruals basis and is allocated to expense headings on a direct cost basis. The irrecoverable element of VAT is included with the item of expense to which it relates where practicable, with the remainder categorised within General Running Costs.

FIXED ASSETS

Tangible fixed assets are stated at cost less accumulated depreciation. Expenditure on tangible fixed assets above a threshold of £1,000 are capitalised on initial recognition. Subsequent expenditure is only capitalised when it is probable that there will be future economic benefits attributable to the item.

DEPRECIATION

Depreciation is provided to write off the cost less the estimated residual value of tangible fixed assets, by equal instalments over their estimated useful economic lives as follows: Buildings and facilities, including upgrades – over 10-40 years Plant and equipment – over 4 years Teaching equipment – over 4 years Fixtures and fittings – over 4 years Freehold land is not depreciated.

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IMPAIRMENT OF FIXED ASSETS

At each reporting date, the College reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that those assets may have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any) by comparing this to the asset’s carrying value.The recoverable amount of the asset is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of future cash flows before interest and tax, obtained as a result of the asset’s continued use.

INVESTMENTS

Investments in listed securities are measured initially at cost and subsequently at fair value at each reporting date. Fair value is taken as the mid-market value of the investment by the investment manager at the reporting date. Realised and unrealised gains and losses are recognised in the income and expenditure account and statement of financial activities in the year in which they arise.

The investment in the subsidiary company Robert Gordon’s College (Trading) Limited is held at cost in the Charity accounts. The subsidiary’s registered company number is SC698101. The investment in the subsidiary charity refers to the College’s interest in the Gordonian Association R B Strathdee Bequest Fund, registered charity number SC051659. This is classified as a programme-related investment held at fair value, based on the fair value of the underlying listed investments and cash held, in both the Group and Charity accounts. The subsidiary investment’s financial statements are dominated by a listed investment portfolio and there would be no significant affect from accounting for the subsidiary charity using the equity method. Both entities share a registered office address with the College.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash and any bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

FINANCIAL INSTRUMENTS

The College has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the College’s balance sheet when the College becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

BASIC FINANCIAL ASSETS

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest rate method, less any impairment.

IMPAIRMENT OF FINANCIAL ASSETS

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the assets original effective interest rate. The impairment loss is recognised in income and expenditure.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in income and expenditure.

BASIC FINANCIAL LIABILITIES

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

DERECOGNITION OF FINANCIAL LIABILITIES

Financial liabilities are derecognised when the College’s contractual obligations expire or are discharged or cancelled.

PENSION SCHEMES

The College contributes to the Scottish Teacher’s Pension Scheme (“STPS”), and contributed to the North East Scotland Pension Fund (“NESPF”) up until 1 August 2025, at rates set by the Schemes’ Actuaries and advised to the College by the Schemes’ Administrators. Both schemes are multi-employer pension schemes.

The STPS scheme is unfunded and it is not possible to identify the assets and liabilities of the scheme which are attributable to the College. In accordance with FRS 102 therefore, the scheme is accounted for as a defined contribution scheme and pension costs charged in the accounts represent the contributions payable by the College in the year in accordance with the rules of the scheme.

The policy during the year until the point of exit for the NESPF scheme was that it is funded with the assets of the scheme held separately from those of the College in a separate, trustee-administered fund. The scheme is treated as a defined benefit scheme. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent

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currency and term to the scheme liabilities. The actuarial valuations are obtained triennially and are rolled forward at each balance sheet date.

The difference between the market value of the assets of the scheme and the present value of accrued pension liabilities is shown as an asset or liability on the balance sheet. Any difference between the expected return on assets and that actually achieved, is recognised as a gain or loss in the statement of financial activities, along with differences which arise from experience of assumption changes.

The cost of providing benefits under the scheme is determined using the projected unit credit method and is based on actuarial advice. The change in the net defined benefit pension deficit arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised in income and expenditure in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit pension deficit by the discount rate, taking into account any changes in the net defined benefit pension deficit during the period as a result of contribution and benefit payments. The net interest is recognised in income and expenditure.

Remeasurement changes comprise actuarial gains and losses and the return on the net defined benefit pension deficit excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses within the statement of financial activities in the period to which they relate and are not reclassified to income and expenditure in subsequent periods.

The College also participates in the APTIS defined contribution pension scheme. Contributions in respect of the defined contribution scheme are charged in the Statement of Financial Activities as they become payable in accordance with the Scheme Rules.

EMPLOYEE BENEFITS

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termi-

nation benefits are recognised immediately as an expense when the College is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

TAXATION

The College has been granted charitable status by HMRC and is not therefore liable for corporation tax on charitable income and gains.

OPERATING LEASES

Rentals for operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term .

FUNDS

Endowment funds represent funds on which the donor has stipulated that the capital balance should be permanently maintained.

Restricted funds represent funds whose use is restricted either by the donor or by the terms of an appeal for particular projects.

Unrestricted funds represent the remaining funds of the College. Donations received are allocated to unrestricted funds unless the donor has specified otherwise. Unrestricted funds are subdivided into general unrestricted funds, which are available for everyday expenditure of the College; and designated funds, which the Governors have earmarked for specific projects or purposes, such as capital projects and bursaries.

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

In the application of the College’s accounting policies the Governors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements or estimation uncertainties have a significant risk of material adjustment to the carrying value of assets and liabilities within the financial year:

DEPRECIATION RATES

Depreciation is calculated to fully write off the cost of assets over their estimated useful life. Management estimate the useful life of each asset and residual values.

PROVISION FOR DOUBTFUL DEBTS

Management analyses the recoverability of debtors and makes a provision where the debt is not expected to be recovered. Judgement and estimation is required where future outcomes are uncertain.

DEFINED BENEFIT PENSION ASSET

The present value of the NESPF defined benefit pension scheme depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost or income for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 19, will impact on the carrying amount of the pension valuation. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2023 has been used by the actuary in valuing the pensions liability at 31 July 2025. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.

In recent years, the fair value of the related pension plan assets has been in excess of the present value of the defined benefit obligation at the year end. Such a surplus is only recognised to the extent that the College can recover that surplus, either through a reduction in future contributions or when the College has an unconditional right to a refund upon exit. As explained in Note 19, this was the case at 31 July 2025.

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Notes To The Financial Statements For The Year Ended 31 July 2025

2. Fee Income
Group and Charity
Tuition fees
Nursery fees
Out of school care
Catering
Other income
Total fee income		 2025
2024
£’000
£’000
21,111
21,131
798
736
201
212
467
475
1,440
1,594
24,017
24,148
Fee income includes bursaries and other contributions
as follows:
Unrestricted Special Funds of the College
Appeal Funds of the College
Special Funds of the College
External contributors:
- Aberdeen Endowments Trust
- Other external contributors		 2025
2024
£’000
£’000
403
320
89
141
322
409
682
813
169
251
1,665
1,934

3 Donations and legacies Group and Charity Appeal funds:

Notes
15
15
15		 2025
2024
£’000
£’000
45
31
3
56
166
287
110
15
324
389

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Notes To The Financial Statements For The Year Ended 31 July 2025

4 Analysis of total expenditure

4 Analysis of total expenditure
2025 31 July 2024
Staff Depreciation Other 2025
costs & impairment costs Total
£’000 £’000 £’000 £’000
Charitable Activities: Charit
Teaching costs (11,819) -
-		 (11,819) Teachi
Property costs -
(929)		 (1,211) (2,140) Prope
Teaching facility costs -
-		 (1,120) (1,120) Teachi
General running costs (2,474) (285) (1,399) (4,158) Gener
Management and administration (1,614) -
(784)		 (2,398) Mana
Pension scheme adjustments -
-
-		 -
Pensio
Governance costs (note 6) -
-
(39)		 (39) Gover
Pupil oncosts -
-		 (1,652) (1,652) Pupil o
Bursary awards (note 5) -
-
(805)		 (805) Bursa
(15,907) (1,214) (7,010) (24,131)
Interest on loans and overdrafts -
-
(436)		 (436) Interes
Total charitable expenditure (15,907) (1,214) (7,446)
(24,567)
Total
Raising funds: Raisin
Fundraising and enterprise costs (235) -
(57)		 (292) Fundr
Total expenditure - Charity (16,142) (1,214) (7,503) (24,859) Total
Raising funds:Enterprise costs -
-
(104)		 (104) Raisin
Total expenditure - Group
 (16,142) (1,214) (7,607) (24,963) Total
2024 31 July
Staff Depreciation Other 2024
costs & impairment costs Total
£’000 £’000 £’000 £’000
Charitable Activities:
Teaching costs (11,272) - - (11,272)
Property costs - (1,027) (1,264) (2,291)
Teaching facility costs - - (1,115) (1,115)
General running costs (2,448) (349) (2,132) (4,929)
Management and administration (1,481) - (694) (2,175)
Pension scheme adjustments 147 - - 147
Governance costs (note 6) - - (34) (34)
Pupil oncosts - - (1,816) (1,816)
Bursary awards (note 5) - - (823) (823)
(15,054) (1,376) (7,878) (24,308)
Interest on loans and overdrafts - - (534) (534)
Total charitable expenditure (15,054) (1,376) (8,412) (24,842)
Raising funds:
Fundraising and enterprise costs (241) - (235) (476)
Total expenditure - Charity (15,295) (1,376) (8,647) (25,318)
Raising funds:Enterprise costs (33) - (17) (50)
Total expenditure - Group (15,328) (1,376) (8,664) (25,368)

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Notes To The Financial Statements For The Year Ended 31 July 2025

By activity:
Teaching Staff
Business Support
Educational Support
Staff costs:
Wages and salaries
Social security costs
Pension costs
Other staff costs
Remuneration of key management personnel
£60,000 - £69,999
£70,000 - £79,999
£80,000 - £89,999
£90,000 - £99,999
£100,000 - £109,999
£110,000 - £119,999
£150,000 - £159,999
£160,000 - £169,999
The number of employees who received annual remuneration
during the period in the following ranges was:
Staff costs includes redundancy related payments
totalling £47k (2024: £nil).
5 Bursary Awards
2025 - Group and Charity
Unrestricted
Restricted Endowment
2025
Funds
Funds
Funds
Total
£’000
£’000
£’000
£’000
Bursaries
(394)
(411)
-
(805)
2024 - Group and Charity
Unrestricted
Restricted Endowment
2024
Funds
Funds
Funds
Total
£’000
£’000
£’000
£’000
Bursaries
(273)
(550)
-
(823)
All of the above awards were made in respect of fees to individual pupil, either through restricted
or unrestricted funds.
6 Governance costs
Group
Group
Charity Charity
31 July
31 July
31 July 31 July
2025
2024
2025
2043
£’000
£’000
£’000
£’000
Governance expenditure includes:
Auditor’s remuneration for:
Audit of fnancial statements
(39)
(34)
(39)
34)
Fundraising and enterprise costs include:
Auditor’s remuneration for:
Audit of subsidiary fnancial statements
(7)
(5)
-
-
Taxation services
(5)
(10)
(4)
(9)
The Governors do not receive any remuneration. Expenditure incurred on travel for College
business during the year was £227 (2024 - £835) for one (2024 – one) Governor.
31 July
31 July
7 Employee information - Group and Charity
The average number of persons employed		 31 July
31 July
2025
2024
175
184
90
83
46
41
311
308
31 July
31 July
2025
2024
£’000
£’000
(12,294)
(11,893)
(1,326)
(1,184)
(2,522)
(2,217)
-
(34)
(16,142)
(15,328)
31 July
31 July
2025
2024
£’000
£’000
(1,578)
(1,365)
31 July
31 July
2025
2024
26
30
5
7
4
-
-
1
2
-
-
1
-
1
1
-

Thirty-four (2024 - forty) of the above employees were accruing benefits under defined benefit pension schemes.

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Notes To The Financial Statements For The Year Ended 31 July 2025

8 Fixed assets
Group and Charity Land
Plant		 Fixtures
and
and
Teaching		 and 31 July
Buildings equipment equipment fttings Total
£’000
£’000		 £’000 £’000 £’000
COST
At 1 August 2024 54,718 423 2,103 158 57,402
Additions 113 57 -
1		 171
Disposals
Reclassifcation/transfer		 -
(189)
(24)
69		 -
120		 -
-		 (24)
-
At 31 July 2025 54,642 525 2,223 159 57,549
DEPRECIATION
At 1 August 2024 (26,730) (376) (1,934) (146) (29,186)
Charge for period (1,113) (26) (72) (3) (1,214)
Disposals
Reclassifcation/transfer		 -
189
24
(69)		 -
(120)
-
-		 24
-
At 31 July 2025 (27,654) (447) (2,126) (149) (30,376)
NET BOOK VALUE
At 31 July 2025 26,988 78 97 10 27,173
At 31 July 2024 27,988 47 169 12 28,216

Land and buildings includes land at a cost of £534,000 (2024 - £534,000) which is not depreciated.

The College holds a number of artefacts such as coins, artwork, and furniture which have historic or artistic importance. The insurance value of these items is approximately £1.5 million. These items are not accounted for as heritage assets on the basis that the items are not held principally for their contribution to knowledge and culture and/or are not generally accessible to the public for viewing or research. Accordingly they are considered to be tangible fixed assets held at nil value.

2025
9 Investments
Listed investments:
Opening market value
Additions
Disposals
Movement on cash deposits
Net gain on investments
Closing market value
Investment in subsidiary charity:
Gordonian Association R B Strathdee Bequest Fund
Listed
Investment in subsidiary charity
Cash deposits		 31 July
31 July
2025
2024
£’000
£’000
9,018
9,031
1,195
1,338
(1,292)
(1,406)
304
(181)
87
236
Group and Charity
9,312
9,018
295
295
9,607
9,313
8,955
8,965
295
295
357
53
9,607
9,313

The Gordonian Association R B Strathdee Bequest Fund has a majority of trustees in common with the school, which is also its principal and only beneficiary. The Trust obtained charitable status in Scotland with registration number SCO51659. The Trust is consolidated into the group accounts as a programme related investment on the basis of materiality. The most recent available accounts for the charity are for the year ended 31 December 2023 with net assets of £295,000, principally made up of an investment portfolio.

Robert Gordon’s College owns the sole ordinary share of £1 in Robert Gordon’s College (Trading) Limited, a company registered in Scotland, which was incorporated during 2021. The subsidiary is consolidated into the group accounts and carried at cost in the Charity accounts. The subsidiary commenced trading on 1 August 2024, operating RGC Online, and took over commercial lets of the school facilities from 1 January 2024. Relevant financial information of the subsidiary company is detailed below.

Back to 45 contents

Notes To The Financial Statements For The Year Ended 31 July 2025

9 Investments (continued)
Income
Expenditure
Proft/(loss) for the year
Debtors
Bank
Creditors
Aggregate share capital and reserves		 31 July
31 July
2025
2024
£’000
£’000
235
158
(217)
(158)
RGTCL
18
-
57
35
24
111
(63)
(146)
18
-

11 Creditors: amounts falling due in less than one year

Bank loans (note 13)
Trade creditors
Accruals
Tax and social security
Other creditors
Amounts due to subsidiary
Fees paid in advance		 Group
Group
Charity
Charity
31 July
31 July
31 July
31 July
2025
2024
2025
2024
£’000
£’000
£’000
£’000
673
569
673
569
822
745
822
745
774
1,042
764
1,037
1,080
308
1,027
297
387
410
387
410
-
-
36
-
463
849
463
849
4,199
3,923
4,172
3,907

The amounts due to the subsidiary are repayable on demand, unsecured and no interest is charged.

12 Creditors: amounts falling due after more than one year

10 Debtors


Group
Group
Charity
Charity
31 July
31 July
31 July
31 July
2025
2024
2025
2024
£’000
£’000
£’000
£’000
Fees receivable, net of doubtful debt
provision of £324k (2024: £292k)
793
546
793
546
Other debtors
85
50
81
26
Prepayments and accrued income
608
788
591
777
Amounts due from subsidiary
-
-
-
130
1,486
1,384
1,465
1,479
The amounts due from the subsidiary are repayable on demand, unsecured and no interest is
charged.
Fee receivables increased as a result of ageing debtor balances. The addition of VAT to fees
has increased the overall amounts payable by parents, contributing to a slower settlement of
accounts at the reporting date. A renewed focus on credit control has since been implemented
to improve collection times.
Fees paid in advance
Bank loans (note 13)
Deferred income (Group and Charity)
School fees received in advance are
deferred into the year in which they relate:
Opening balance
Income received and deferred in year
Released in year
Fees paid in advance total balance at
31 July (notes 11 and 12)		 31 July
31 July
2025
2024
£’000
£’000
414
523
6,942
7,652
Group and Charity
7,356
8,175
31 July
31 July
2025
2024
£’000
£’000
1,372
315
338
1,372
(833)
(315)
Group and Charity
877
1,372

Back to 46 contents

Notes To The Financial Statements For The Year Ended 31 July 2025

13 Bank loan maturity analysis

In less than one year (note 11)
In more than one years but not more than fve years
In more than fve years
At 31 July 2025 the College had the following bank loans:		 31 July
31 July
2025
2024
£’000
£’000
673
569
6,942
1,337
-
6,315
Group and Charity
7,615
8,221

The bank loans are secured by a standard security over the property at Schoolhill and Countesswells.

14 Financial instruments at fair value through net income/(expenditure)

Listed investment portfolio (note 9) 31 July
31 July
2025
2024
£’000
£’000
8,955
8,965
Group and Charity

47 Back to contents

Notes To The Financial Statements For The Year Ended 31 July 2025

15 Statement of funds

2025 - Group

2025 - Group
Investment Actuarial
At 1 August gains/ gains/ 31 July
2024 Income Expenditure Transfers (losses) (losses) 2025
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Unrestricted funds
Designated funds:
Capital 974 -
-		 -
34		 - 1,008
Revenue 65 40 (33) -
-		 - 72
Trading subsidiary - 122 (104) -
-		 - 18
Total designated funds 1,039 162 (137) -
34		 - 1,098
General fund
 18,127 24,424 (24,229) -
-		 2,415 20,737
Total unrestricted funds
 19,166 24,586 (24,366) -
34		 2,415 21,835
Restricted funds
Gordon’s Today 256 45 (27) -
-		 - 274
Gordon’s Tomorrow 4,256 3 (145) -
-		 - 4,114
Gordon’s Forever - revenue 1,204 229
*		 (115) (64) 9 - 1,263
RGC Online 15 9 (15) -
-		 - 9
Special funds - revenue 501 285 (295) -
-		 - 491
Total restricted funds 6,232 571 (597) (64) 9 - 6,151
Endowment funds
Gordonian Association
R B Strathdee Bequest Fund 295 -
-		 -
-		 - 295
Gordon’s Forever - capital 401 -
-		 -
5		 - 406
Special funds - capital 6,764 -
-		 64 39 - 6,867
Total endowment funds 7,460 -
-		 64 44 - 7,568
Total funds
 32,858 25,157 (24,963) -
87		 2,415 35,554

*£229k includes £166k of donations and legacies income and £63k of investment income

Back to 48 contents

Notes To The Financial Statements For The Year Ended 31 July 2025

15 Statement of funds (continued)

2025 - Charity

2025 - Charity
Investment Actuarial
At 1 August gains/ gains/ 31 July
2024 Income Expenditure Transfers (losses) (losses) 2025
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Unrestricted funds
Designated funds:
Capital 974 -
-		 -
34		 - 1,008
Revenue 65 40 (33) -
-		 - 72
Total designated funds 1,039 40 (33) -
34		 - 1,080
General fund 18,127 24,424 (24,229) -
-		 2,415 20,737
Total unrestricted funds 19,166 24,464 (24,262) -
34		 2,415 21,817
Restricted funds
Gordon’s Today 256 45 (27) -
-		 - 274
Gordon’s Tomorrow 4,256 3 (145) -
-		 - 4,114
Gordon’s Forever - revenue 1,204 229
*		 (115) (64) 9 - 1,263
RGC Online 15 9 (15) -
-		 - 9
Special funds - revenue 501 285 (295) -
-		 - 491
Total restricted funds 6,232 571 (597) (64) 9 - 6,151
Endowment funds
Gordonian Association
R B Strathdee Bequest Fund 295 -
-		 -
-		 - 295
Gordon’s Forever - capital 401 -
-		 -
5		 - 406
Special funds - capital 6,764 -
-		 64 39 - 6,867
Total endowment funds 7,460 -
-		 64 44 - 7,568
Total funds 32,858 25,035 (24,859) -
87		 2,415 35,536

*£229k includes £166k of donations and legacies income and £63k of investment income

Back to 49 contents

Notes To The Financial Statements For The Year Ended 31 July 2025

15 Statement of funds (continued)

2024 - Group

2024 - Group
Investment Actuarial
At 1 August gains/ gains/ 31 July
2023 Income Expenditure Transfers (losses) (losses) 2024
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Unrestricted funds
Designated funds:
Capital 981 -
-		 -
(7)		 - 974
Revenue 48 41 (32) -
8		 - 65
Trading subsidiary - 50 (50) -
-		 - -
Total designated funds 1,029 91 (82) -
1		 - 1,039
General fund 19,381 24,393 (24,435) -
-		 (1,212) 18,127
Total unrestricted funds 20,410 24,484 (24,517) -
1		 (1,212) 19,166
Restricted funds
Gordon’s Today 267 31 (42) -
-		 - 256
Gordon’s Tomorrow 4,341 56 (141) -
-		 - 4,256
Gordon’s Forever - revenue 1,002 311
*		 (109) -
-		 - 1,204
RGC Online 150 15 (150) -
-		 - 15
Special funds - revenue 506 404 (409) -
-		 - 501
Total restricted funds 6,266 817 (851) -
-		 - 6,232
Endowment funds
Gordonian Association
R B Strathdee Bequest Fund 297 -
-		 -
(2)		 - 295
Gordon’s Forever - capital 401 -
-		 -
-		 - 401
Special funds - capital 6,529 -
-		 -
235		 - 6,764
Total endowment funds 7,227 -
-		 -
233		 - 7,460
Total funds 33,903 25,301 (25,368) -
234		 (1,212) 32,858

*£311k includes £287k of donations and legacies income and £24k of investment income

Back to 50 contents

Notes To The Financial Statements For The Year Ended 31 July 2025

15 Statement of funds (continued)

2024 - Charity

At 1
Unrestricted funds
Designated funds:
Capital
Revenue
Total designated funds
General fund

Total unrestricted funds

Restricted funds
Gordon’s Today
Gordon’s Tomorrow
Gordon’s Forever - revenue
RGC Online
Special funds - revenue
Total restricted funds
Endowment funds
Gordonian Association
R B Strathdee Bequest Fund
Gordon’s Forever - capital
Special funds - capital
Total endowment funds
Total funds
 Investment
Actuarial
August
gains/
gains/
31 July
2023
Income Expenditure
Transfers
(losses)
(losses)
2024
£’000
£’000
£’000
£’000
£’000
£’000
£’000
981
-
-
-
(7)
-
974
48
41
(32)
-
8
-
65
1,029
41
(32)
-
1
-
1,039
19,381
24,393
(24,435)
-
-
(1,212)
18,127
20,410
24,434
(24,467)
-
1
(1,212)
19,166
267
31
(42)
-
-
-
256
4,341
56
(141)
-
-
-
4,256
1,002
311
(109)
-
-
-
1,204
150
15
(150)
-
-
-
15
506
404
(409)
-
-
-
501
*
6,266
817
(851)
-
-
-
6,232
297
-
-
-
(2)
-
295
401
-
-
-
-
-
401
6,529
-
-
-
235
-
6,764
7,227
-
-
-
233
-
7,460
33,903
25,251
(25,318)
-
234
(1,212)
32,858

*£311k includes £287k of donations and legacies income and £24k of investment income

Back to 51 contents

Notes To The Financial Statements For The Year Ended 31 July 2025

15 Statement of funds (continued)

16 Analysis of net assets by funds

General unrestricted funds are retained to help finance the ongoing activities of the College.

The designated funds balance consists of funds that the Governors have allocated towards future capital projects and providing perpetual bursaries. Transfers are made to designated funds from general unrestricted funds when designations are agreed by the Governors. Designated capital funds invested in the listed investment portfolio generate investment income which is allocated to the relevant designated revenue fund.

The College’s special funds consist of a number of individual bursary, trust and prize funds, set up by individual donors. These include donations received as a result of appeals by the Advancement Office under the ‘Gordon’s Forever’ banner. The capital is held permanently and the income is used to fund bursaries and prizes in perpetuity. Each fund is allocated its proportion of investment income and gains and losses and bears its own expenses.

The appeal funds represent funds raised under the appeals run by the Advancement Office: ‘Gordon’s Today’, for new initiatives and projects to benefit pupils in an immediate way; and ‘Gordon’s Tomorrow’ for capital projects to develop the campus.

RGC Online fundraising supports the start up costs for the new service to offer SQA higher examinations and a new diploma of tech modules to students ages 16 and 17 who wish to study via online learning rather than a full-time pupil of the College.

The purpose of the Gordonian Association R B Strathdee Bequest Fund is to augment the normal supply of books to the College Library and to make possible the purchase of works, including musical works, not normally available for purchase from College funds.

An analysis of the balance sheet split by fund is as follows:

An analysis of the balance sheet split by fund is a s follows:
31 July
Unrestricted Restricted Endowment 2025
Funds Funds
Funds		 Total
£’000 £’000
£’000		 £’000
2025 - Group
Fixed assets 23,071 4,102 -
27,173
Investments 1,008 1,031 7,568 9,607
Net current assets 492 1,018 -
1,510
Long term liabilities
Defned beneft pension asset		 (7,356)
4,620		 -
-
-

-
(7,356)

4,620
21,835 6,151 7,568 35,554
2025 - Charity
Fixed assets		 23,071 4,102 -
27,173
Investments 1,008 1,031 7,568 9,607
Net current assets 474 1,018 -
1,492
Long term liabilities
Defned beneft pension asset		 (7,356)
4,620		 -
-
-

-
(7,356)

4,620
21,817 6,151 7,568
 35,536
31 July 2024
Total
2024 - Group £’000
Fixed assets 24,016 4,200 -
28,216
Investments 1,039 125 8,149 9,313
Net current assets 335 1,907 (689) 1,553
Long term liabilities
Defned beneft pension asset		 (8,175)
1,951		 -
-
-

-
(8,175)

1,951
19,166 6,232 7,460 32,858
2024 - Charity
Fixed assets 24,016 4,200 -
28,216
Investments 1,039 125 8,149 9,313
Net current assets 335 1,907 (689) 1,553
Long term liabilities
Defned beneft pension asset		 (8,175)
1,951		 -
-
-

-
(8,175)

1,951
19,166 6,232 7,460 32,858

Back to 52 contents

Notes To The Financial Statements For The Year Ended 31 July 2025

17 Reconciliation of net income/(expenditure) to net cash provided by operating activities

18 Reconciliation of net debt

Group
Group
Charity
Charity
31 July
31 July
31 July
31 July
2025
2024
2025
2024
£’000
£’000
£’000
£’000
Net income for the reporting period
(per Statement of Financial Activities)
281
167
263
167
Depreciation and impairment of fxed assets
1,214
1,376
1,214
1,376
Difference between service costs and cash
contributions to defned beneft pension scheme
(254)
(334)
(254)
(334)
(Increase)/decrease in debtors
(102)
(186)
14
(281)
Increase in creditors
63
1,043
52
1,027
Interest paid on bank loan and overdraft
436
534
436
534
Dividends and interest received
(596)
(575)
(596)
(575)
(Gain) on investments
(87)
(234)
(87)
(234)
Net cash provided by operating activities
955
1,791
1,042
1,680
Group
Cash at hand and at bank
Cash held as part of investment portfolio
Cash and cash equivalents
Bank loans due within one year
Bank loans due in more than one year
Net debt
18 Reconciliation of net debt
Charity
Cash at hand and at bank
Cash held as part of investment portfolio
Cash and cash equivalents
Bank loans due within one year
Bank loans due in more than one year
Net debt		 2024
Cash fows
2025
£’000
£’000
£’000
4,092
131
4,223
53
304
357
4,145
435
4,580
(569)
(104)
(673)
(7,652)
710
(6,942)
(4,076)
1,041
(3,035))
2024
Cash fows
2025
£’000
£’000
£’000
3,981
218
4,199
53
304
357
4,034
522
4,556
(569)
(104)
(673)
(7,652)
710
(6,942)
(4,187)
1,128
(3,059)

Back to 53 contents

19 Pension obligations

Group and charity

The College participates in one defined contribution pension scheme (“APTIS”), and two multi-employer defined benefit pension schemes: the Scottish Teachers’ Pension Scheme (“STPS”) and the North East Scotland Pension Fund (“NESPF”), up until 1st August 2025.

Defined contribution scheme - “APTIS”

The College operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the College in an independently administered fund.

The charge for the period to the Statement of Financial Activities (including the income and expenditure account) in respect of the defined contribution scheme was £211k (2024 - £187k).

Scottish Teachers’ Pension Scheme (“STPS”)

The scheme is an unfunded statutory public service pension scheme with benefits underwritten by the UK Government. The scheme is financed by payments from employers and from those current employees who are members of the scheme and paying contributions at progressively higher marginal rates based on pensionable pay, as specified in the regulations. The rate of employer contributions is set with reference to a funding valuation undertaken by the scheme actuary.

The last quadrennial valuation was undertaken as at 31 March 2020. This valuation informed an increase in the employer contribution rate from 23.0% to 26.0% of pensionable pay from 1 April 2024 to 31 March 2027. The next valuation will be based on scheme data as at 31 March 2024 and will set the employer contribution rate for the period 1 April 2027 to 31 March 2031.

Robert Gordon’s College has no liability for other employers obligations to the multi-employer scheme. As the scheme is unfunded there can be no deficit or surplus to distribute on the wind-up of the scheme or withdrawal from the scheme.

While a valuation was carried out as at 31 March 2020, it is not possible to say what deficit or surplus may affect future contributions.

The scheme is an unfunded multi-employer defined benefit scheme. It is accepted that the scheme can be treated for accounting purposes as a defined contribution scheme in circumstances where Robert Gordon’s College is unable to identify its share of the underlying assets and liabilities of the scheme.

Robert Gordon’s College’s level of participation in the scheme is 0.23% based on the proportion of employer contributions paid in 2023-24. Employer contributions payable to STPS for the period were £1.9 million (2024 - £1.7 million) and total outstanding STPS contributions at the period end were £225k (2024 - £226k).

North East Scotland Pension Fund (“NESPF”)

The valuation used for the FRS 102 disclosures for the defined benefit NESPF scheme was based on the most recent actuarial valuation at 31 March 2023 and updated by an independent qualified actuary to take account of the requirements of FRS 102 in order to assess the liabilities of the scheme at 31 July 2025. Scheme assets are stated at their market value at 31 July 2025.

The contribution rate payable by the College was 23% from 1 April 2024 until 26 August 2025.

Pension contributions paid in the period amounted to £338k (2024: £446k).

The following tables set out the amounts recognised in the balance sheet and in the statement of financial activities, reconciliations between opening and closing balances, and the key actuarial assumptions used in calculating the amounts recognised, in accordance with FRS 102. They should be read in conjunction with the ‘Pension Schemes’ accounting policy within Note 1.

Amounts recognised in the balance sheet (NESPF only)

Amounts recognised in the balance sheet (NESPF only)
Fair value of plan assets
Present value of funded obligations
Surplus in scheme
Asset ceiling restriction
Surplus in scheme		 31 July
31 July
2025
2024
£’000
£’000
18,640
17,238
(12,514)
(13,600)
6,126
3,638
(1,506)
(1,687)
4,620
1,951

Amounts recognised in net income/(expenditure) (NESPF only)

Included within total expenditure
Current service cost
Past service cost / curtailments
Net fnance (income)/costs included
within net income/(expenditure)
Administration expenses
Net interest (income)/cost		 31 July
31 July
2025
2024
£’000
£’000
262
270
-
30
-
5
(178)
(193)
84
112

Reconciliation of difference between amounts recognised in net income/(expenditure) and cash contributions to defined benefit pension scheme (NESPF only)

Amounts recognised in net
income/(expenditure)
Contributions by employer
Difference between amounts
recognised in net income and cash
contributions		 84
112
(338)
(446)
(254)
(334)

Back to 54 contents

19 Pension obligations (continued)

Amounts included as actuarial gains and losses

Actual return less expected return
on pension scheme assets
Experience gains and (losses) arising
on scheme liabilities
Asset ceiling restriction
Actuarial gain/(loss) for the period		 31 July
31 July
2025
2024
£’000
£’000
536
675
1,698
(852)
181
(1,035)
2,415
(1,212)
Changes in the present value of the
obligation
Defned beneft obligation at 1 August
Current service cost
Past service cost / curtailments
Interest cost
Contributions by scheme participants
Actuarial (gain)/loss
Benefts paid
Defned beneft obligation at 31 July		 defned beneft
31 July
31 July
2025
2024
£’000
£’000
13,600
12,044
262
270
-
30
667
620
160
148
(1,698)
852
(477)
(364)
12,514
13,600

Changes in the fair value of plan assets

Fair value of plan assets at 1 August
Interest on plan assets
Actuarial gain
Administration expenses
Contributions by employer
Contributions by scheme participants
Benefts paid
Fair value of plan assets at 31 July		 31 July
31 July
2025
2024
£’000
£’000
17,238
15,525
845
813
536
675
-
(5)
338
446
160
148
(477)
(364)
18,640
17,238

Asset ceiling

The fair value of the pension plan assets at 31 July 2025 is in excess of the present value of the defined benefit obligation at that date giving rise to a surplus of £6.1 million (2024: £3.6 million).

Following the staff consultation that was completed in June 2025, the College formally exited the scheme on 26 August 2025 and received a full and final refund of £4.62 million on that date. Therefore, following the asset ceiling test, the full surplus of £6.1 million is not recognised - the amount recorded at 31 July 2025 is restricted to £4.62 million (2024: £1.9 million).

The pension contributions paid by the College were determined by the scheme actuary based on a variety of assumptions. On exit from the scheme a cash refund of £4.62 million was received. This represented excess payments made by the College over decades due to the conservative nature of these assumptions which crystallised on exit.

The decision to proceed with an exit was in order to improve long term financial sustainability and support the College’s continued stability.

Following the exit from the NESPF scheme, the College’s obligation to the related employees as of 1st August 2025 were fully preserved and transferred to APTIS. Contributions by the College to defined contribution schemes on behalf of the employees going forward are now being made at a rate of 7.5% to 12.5%.

Major categories of plan assets as a percentage of total plan assets

plan assets
31 July 31 July
2025 2024
Equities 59.00% 58.20%
Government bonds 19.00% 5.40%
Property 15.00% 6.20%
Cash/liquidity 7.00% 2.90%
Other 0.00% 27.30%

Principal actuarial assumptions at the balance sheet date

31 July 31 July
2025 2024
Discount rate 5.80% 4.90%
Rate of CPI infation 2.75% 2.60%
Future salary increases
Future pension increases		 4.25%
2.75%		 4.10%
2.70%
Life expectancy of members:
Retiring at age 65 today:
Males 21.3 20.6
Females 23.5 23.0
Retiring at age 65 in 20 years:
Males 22.6 21.9
Females 25.1 24.7

The return on plan assets was 8.0% (2024: 7.9%).

20 Control

Robert Gordon’s College is controlled by the Board of Governors, as determined by the statutory instrument City of Aberdeen Educational Endowments Scheme 2023.

21 Related parties

During the prior year the College’s subsidiary Robert Gordon’s College (Trading) Limited commenced trading. The subsidiary’s costs were initially met by the parent and recharged to the subsidiary, including £83k of staff time recharged at cost (2024: £32k). A management fee of £98k (2024: £57k) was charged to the subsidiary to recover overhead costs. Grant funding of £15k was awarded by the College to the subsidiary (2024: £50k). At 31 July 2025 a balance of £36k was owed to the subsidiary by the parent charity (2024: £129k owed by the subsidiary to the parent charity).

No donations were received from The Gordonian Association RB Strathdee Trust during 2025. During 2024 £15k was received towards books for the junior school. No balances were owing at 31 July 2025 (2024: £nil).

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The Aberdeen Endowments Trust is entitled to nominate two Governors. Under the City of Aberdeen Educational Endowments Scheme 2023, the Aberdeen Endowments Trust is required to pay the residue of its free income to the Governors of Robert Gordon’s College to be used for the purposes set out in the Scheme.

The total amount received from the Aberdeen Endowments Trust during the period was £819k including VAT where applicable (2024: £813k), including bursarial and other support on behalf of pupils. No amounts were owing at the period end (2024: £nil).

22 Subsequent events

On 26 August 2025 the College formally exited the NESPF defined benefit pension scheme, returning funds of £4.62 million to the College. This balance is recognised in these financial statements as described at note 19.

On 26 February 2026 the College repaid the balance of the CBILS loan, £300k.

23 Comparative Statement of Financial Acitivities

2024 - Group Year to
Unrestricted Restricted Endowment 31 July
Funds Funds Funds 2024
£’000 £’000 £’000 £’000
INCOME AND ENDOWMENTS FROM:
Charitable activities 24,148 - - 24,148
Investment income 132 443 -
575
Donations and legacies 15 374 - 389
Trading income 189 -
-
189
Total income and endowments
EXPENDITURE ON:		 24,484 817 - 25,301
Charitable activities (23,991) (851) - (24,842)
Raising funds: fundraising and publicity costs (526) -
-
(526)
Total expenditure (24,517) (851) - (25,368)
Net (expenditure) prior to gains and losses (33) (34) -
(67)
Net gains on investments 1 -
235		 236
Net (loss) on investment in subsidiary charity - -
(2)		 (2)
Net (expenditure)/income (32) (34) 233 167
Other recognised gains/(losses):
Actuarial loss on defned beneft pension plans		 (1,212) -
-		 (1,212)
Transfers between funds - -
-		 -
Net movements in funds (1,244) (34) 233 (1,045)
Reconciliation of funds
Fund balances at
July 31 2023 20,410 6,266 7,227 33,903
Fund balances at
July 31 2024 19,166 6,232 7,460 32,858

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23 Comparative Statement of Financial Acitivities

2024 - Charity Year to
Unrestricted Restricted Endowment 31 July
Funds Funds Funds 2024
£’000 £’000 £’000 £’000
INCOME AND ENDOWMENTS FROM:
Charitable activities 24,148 -
-		 24,148
Investment income 132 443 -
575
Donations and legacies 15 374 -
389
Trading income 139 -
-
139
Total income and endowments 24,434 817 - 25,251
EXPENDITURE ON:
Charitable activities (23,991) (851) - (24,842)
Raising funds: fundraising and publicity costs (476) -
-
(476)
Total expenditure (24,467) (851) - (25,318)
Net (expenditure) prior to gains and losses (33) (34) -
(67)
Net gains on investments 1 -
235		 236
Net (loss) on investment in subsidiary charity - -
(2)		 (2)
Net (expenditure)/income (32) (34) 233 167
Other recognised gains/(losses):
Actuarial loss on defned beneft pension plans		 (1,212) -
-		 (1,212)
Transfers between funds - -
-
-
Net movements in funds (1,244) (34) 233 (1,045)
Reconciliation of funds
Fund balances at
Monday, July 31, 2023 20,410 6,266 7,227 33,903
Fund balances at
Wednesday, July 31, 2024 19,166 6,232 7,460 32,858

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Schoolhill, Aberdeen, Scotland AB10 1FE Tel 01224 646346 email enquiries@rgc.aberdeen.sch.uk www.rgc.aberdeen.sch.uk

Robert Gordon’s College is a charity registered in Scotland, No. SC000123