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← George Heriot's Trust

2025-07-31-accounts

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A\/ AZETS

GEORGE HERIOT’S TRUST

Consolidated Financial Statements and Governors’ Report

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for the year ended 31 July 2025 Charity number: SC011463

GEORGE HERIOT’S TRUST CONSOLIDATED FINANCIAL STATEMENTS AND GOVERNORS’ REPORT

for the year ended 31 July 2025

Contents Page
Governors’ Report 1
Independent Auditor's Report 16
Consolidated Statement of Financial Activities 20
Trust Statement of Financial Activities 21
Consolidated and Trust Balance Sheets 22
Consolidated and Trust Statement ofCash Flows 23
NotestotheFinancialStatements 24

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GEORGE HERIOT’S TRUST

Governors’ Report

for the year ended 31 July 2025

The Governors present their annual report and the consolidated financial statements for the year ended 31 July 2025. The report has been prepared in accordance with current statutory reporting requirements for charities in Scotland.

OBJECTIVES AND ACTIVITIES

Objectives

George Heriot’s Trust was established in 1624 under the Will of George Heriot, jeweller and goldsmith to King James VI and I, who left the residue of his estate:

for and towardis the funding and erecting of ane hospittill within the said towne of Edinburgh in perpetuitie and for and towardis the purchesing of cerlane landis in perpetuitie to belong unto the said hospittill to be imployit for the maintenance relief bringing up and educatioune of Puire fatherless bairnes friemens sones of that Towne of Edinburgh.

The George Heriot’s Trust Scheme 2017 (amended June 2024) describes the Trust's charitable purposes.

The Trust has various powers as set out in the Trust Scheme, including the power to:

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GEORGE HERIOT’S TRUST

Governors’ Report

for the year ended 31 July 2025

Activities

The Trust’s principal activities continue to be the provision of education at George Heriot’s School, an independent day school for 4-18 year old young people, including the provision of a supported education for Foundationers at the School.

The School's aims are:

For staff

For parents/guardians

Heriot’s core strengths centre upon our ethos, opportunity, and achievement.

Ethos

Heriot’s is sector-leading for ensuring wellbeing, equality and inclusion. Our individualised approach focuses on the pupil, creating confident, resilient and kind young people able to thrive at school and becomea force for good in society.

Opportunity

Heriot’s offers an extensive breadth of curriculum and co-curricular experiences, challenging and inspiring young people to discover their passions whilst developing independence and confidence in a nurturing and caring environment.

Achievement

Heriot’s is sector-leading in raising pupil attainment and achievement. Our academic results are uniformly in the top three Schools in Scotland with pupils progressing to their university of choice across the UK and abroad. Pupils consistently experience success at National and International levels within academia, sports and the expressive arts.

Measures of success include excellent academic results; continued high levels of demand at key entry points; provision of both Foundation and bursarial support for as many pupils as possible; success in curricular and cocurricular activities; excellent participation rates in a wide range of activities, positive parental, pupil, and staff feedback and the outstanding inspection results fram Education Scotland in 2024.

Education Scotland Inspectors assess schools against four quality indicators, with 6 being the highest grade and awarded only if deemed as an example of best practice across schools in Scotland. Below is a summary of the gradings and relevant statements made by the Inspectorate.

Heriot’s was delighted to receive a rating of 6 (excellent) for ensuring wellbeing, equality and inclusion for children and young people and a rating of6 (excellent) for raising attainment and achievement.

Teaching, learning and assessment received a rating of 5 (very good) from the Inspection team, as did Leadership of change.

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GEORGE HERIOT’S TRUST

Governors’ Report

for the year ended 31 July 2025

Education Scotland commented ’Children and young people are highly motivated and have a great respect for learning. They are proud of their school and enjoy positive relationships with staff and their peers.

Most recently, in December 2025, Heriot’s is proud to have won the Sunday Times’ Scottish Independent Secondary School of the Year for Academic Excellence award. This award illustrates the breadth and depth of the academic programme at the School and the quality of the relationships between staff and pupils that is a core feature of Heriot’s.

Whole School Report

In accordance with the requirements of the Governors’ Report the statements below demonstrate adherence to | the Trust’s purposes and principal activities at a strategic level. For a full and comprehensive report that details | the educational activities of the School for Session 2024-25, a Standards and Quality report is produced. This is accessible on the School website. Strategic Development | The outcomes from the School's research and enquiry groups, wider consultation with stakeholders, and selfevaluation practices, culminated in the creation of Heriot’s Strategic Plan 2025 — 2030+. The strategy has prioritised the key educational and business objectives for the next 5+ years and has incorporated specific strategic targets, for example, within Sport, STEM+ and Sustainability, as well as more future focused objectives on creativity and employability. The accumulation of data, analysis and recommendations made by the enquiry groups has been complimented by the input of different community members including Governors, parent, and pupil groups.

Pilot schemes trialed in the Junior School on Inquiry Based Learning, Metaskills, and Digital passports, have been identified as key themes within the School Strategy. These will now extend into the Senior School under the headings of Pupil Agency, Digital Wellbeing, and Skills. Importantly, the Strategy details clear objectives on our curriculum design. There is a particular focus on being ‘One School’, building a progressive educational experience from Nursery to Senior 6.

Whilst predominantly focusing on educational matters, the Strategic plan has been designed as a four-column structure: Education, Business, Sustainability, and Force for Good. Each column hasa list of objectives that in turn have been broken down into a series of 5-year projects, indicating key milestones for completion. Each column has a specific set of outcomes that will determine what success looks like.

Underpinning the four columns is a section on Enablers that focusses on key aspects of the school and the business that will help facilitate and drive the implementation of the plan. A prime example is our investment in people. Later on, in this report the development and care for our staff, pupils, and community is evident through a range of initiatives and support. Enablers encompass other areas such as the advancement of technology, communication, organisational alignment and customer insights.

Environmental factors — Economic

As an Independent School, external economic factors impact the School, predominantly through an increase in our operational costs. The election of a Labour Government and their manifesto pledge of imposing VAT on School fees became the key focus of this Session. The additional 20% hike in fees significantly challenged the affordability of an Independent education in the Edinburgh market and brought a substantial but unknown threat to the School roll. Across the UK, debate surrounded whether schools would pass on the full charge or a percentage of VAT. After considerable research and debate, the Governors and School Executive established the position on the management of VAT as follows:

The combination of the first two features was intended to provide stability for families in their financial planning.

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GEORGE HERIOT’S TRUST

Governors’ Report

for the year ended 31 July 2025

Indications were that this approach was well received given that the projected roll for Session 2025/26 was very similar to Session 2024/25.

Business Efficiencies and Controls

In response to the challenging economic climate, early implementation of the Business section of the Strategic Plan commenced. A rigorous analysis of our business function was conducted by our Finance Team (complimented by School Executive and Governor input) which co-created a set of objectives to improve business efficiencies and budget controls across the School. Imperative in this process was the assurance that these measures, individually or collectively, did not affect the educational product and pupil experience.

Business models have subsequently been established to forecast the impact of variables on our finances to assist our financial management and budget setting for future years.

Whole School: Academic overview

Session 2024-25 saw the completion of many aspects of the Whole School Improvement Plan (WSIP) 20222025+. The plan was designed to address specific curriculum goals and operational matters but also to build future capacity for School improvement. The areas identified for the latter have subsequently been built into the School's future strategy. Any outstanding matters from the WSIP will be tied off in Session 2025/6, captured under the appropriate Strategic column.

Specific targets completed, include the standardisation of Self-evaluation practices across the school and the review of HGIOS4 (How Good is Our School) Quality indicators as part of our quality assurance procedures. The Academic Leadership Team conducted a broad assessment across all Qls and those requiring greater attention e.g. QI 3.3 — Increasing Creativity and Employability - have been given greater prominence in our future strategy.

Established projects, such as the development of Equality and Diversity have been completed. Now embedded in our curriculum, they continue to be refined and updated for currency and relevance.

The Sustainability drive continues to focus across our curriculum and campus, and the appointment of a Whole School Coordinator for Session 2025/6 will now provide more focused resource to draw down targets from the Sustainability Strategy column that will be actioned by staff, pupils, and community groups.

Finally, multiple research projects focusing on a range of education matters were completed. Examples of the topics covered included empowered learning (Interdisciplinary learning, Inquiry based learning and Project based challenges), Skill profiling and exploration in the use of Al. The outcomes fed into our Heriot’s Strategic Plan 20252030+.

Given the critical importance of our IT infrastructure, further investment was made with the upgrade of our dual 2Gb high speed internet facility. Investment in specific software programmes continued with the implementation of PowerBl used for presenting and analysing data. Efficiencies through the use of software extended to our HR and Payroll function. A major achievement was the successful implementation of a new Management Information System — iSAMS. The core modules for admissions and academic use were the first to be targeted. Staff, whether user or operational, were provided with appropriate training throughout the second half of the year before integrating business modules over the course of the next 12-24 months.

Investment in high quality hardware continued with the 1:1 pupil device rollout entering its 3° year, the rolling programme of upgrading portable devices for staff and the upgrade of Junior School interactive boards. This all aligned with our focus focus on Digital Literacy as one of the the three key priorities in our future future academic Strategy. The review of Governance Committee structures and Terms of Reference, interfacing with the relevant School Executive groups and personnel, was completed along with a review of our Risk Register.

This all aligned with our focus focus on Digital Literacy as one of the the three key priorities in our future future academic Strategy.

Significant investment has been made in Cybersecurity. Training for staff on this and GDPR is well underway.

The School's Campus Plan is being developed with identification of 5 significant Estate projects of which 2 have progressed to detailed plans. These projects complement the smaller scale enhancements of Learning and Teaching spaces (e.g. the Junior School Stem+ room) and ongoing repair and renovations across our buildings.

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GEORGE HERIOT’S TRUST Governors’ Report

for the year ended 31 July 2025

A review of the Foundation was completed this Session. This was a significant and important piece of work. A major change was the removal of the income threshold of £45,000 and we have introduced a tiered model of support, where any family living within Edinburgh and the locality who has lost a parent may apply for their child to join the school as a Foundationer. Where financial support is requested, applicants will be required to complete an annual means-tested household income sheet and provide information of their financial circumstances, providing fairness and accuracy in the disbursement of funds. Governors will consider the salary of a single parent for Foundation applicants, as well as other sources of household income, for example relatives and partners, Trust funds, shares and savings.

Places for Foundationers will be offered within a tiered support system, ranging from 100% fee remission plus ! sundries, to an offer of a place that will entitle a pupil and their family to access pastoral and bereavement care without financial support.

This allowed all eligible families to enter the Foundation and gives access to specific support from our Foundation coordinator. Another key outcome was a change to the type of financial support received by Foundationers. Financial Assistance with School Fees

Means tested Remissions

Fee remission is provided to Foundationers from P6 to S6 who require assistance with payment of school fees and who have lived within the EH, KY or FK postcodes for at least 5 years, or whose parents have had a significant and long-standing link with the City of Edinburgh. Foundation applicants are given priority for places in the School. At the date of this report, there are 49 pupils in receipt of full remission from fees as Foundationers. Foundationers can also receive support with associated costs of schooling such as books, travel, uniforms, music lessons and curricular trips.

The Trust currently supports a further 82 pupils from P6 to S6 through means tested bursaries providing remission for all or a proportion of their school fees, including 21 pupils who receive 100% remission. Included within the 100% remissions are one Syrian refugee pupil who has been awarded the Dulkanovic Bursary, named after a refugee pupil granted a place at Heriot’s during the First World War, and one Ukrainian refugee supported by the School's own bursary funds.

Means-tested remissions are available to new applicants for entry to the School and to existing pupils whose family circumstances have changed. Bursaries are awarded annually, and updated assessments are carried out for each annual application.

A detailed independent assessment of financial circumstances is undertaken by external consultants for both Foundation and Bursarial applicants; analysis is then shared with the School, the Finance Director and Principal for review. This information is then given to the Bursaries, Foundation and Scholarships Committee of the Board of Governors; it is this body that decides on fair and equitable distribution of available funds. Azets, Accountants and Auditors were the external consultants used for Session 2024/25 and 2025/26 bursary and foundation awards. Detailed independent assessment for both applications relating to Session 2026/27 onwards will be carried out by Bursaries Administration Limited.

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The following table sets out the number of means-tested awards provided by the Trust in a range of value bands
over the last 2 years: -
2 O24-25
24% a
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‘includes Foundationer award

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GEORGE HERIOT’S TRUST

Governors’ Report

for the year ended 31 July 2025

The School offered a total of 128 bursaries and Foundationer awards for the 2024-25 Session. The School’s focus remains on increasing accessibility to the School by widening the availability and impact of support given.

The School holds a small reserve of Bursary funds to support existing parents whose circumstances change materially during the year, for example through illness or loss of employment.

In total, £1,674,496 was provided in support of the Foundation and Bursary schemes in 2024-25.

Non means tested remissions

Fee remission is also provided to children of staff members (based on their employment), fourth and subsequent members of current pupil families (although those with children in the School before the 2019-20 Session remain entitled to a third child discount) and through a small number of competitive entrance scholarship and expressive arts awards. 13 of these awards carry remission of 25-50% of the fee with the remaining 12 providing a 10% fee remission. The total amount of scholarships, Foundation, bursaries, remissions and discounts in the period was £2,575,766.

Operational Performance of the School

During the year, George Heriot’s School was led by its Principal, Gareth Warren, Kirstie Macdonald, Director of Governance Risk and Compliance and Lynda Fyffe, Director of Finance. They were supported by the Head of the Junior School, Alastair Morrison (left 10 October 2025) and the Head of the Senior School, Paul Fairclough (left 31 July 2025).

Subsequently, Mr Alastair Anderson joined the School on 15t August 2025 as the new Head of Senior School and following the resignation of Mr Alastair Morrison, Mrs Kirsten O’Hagan, previously Deputy Head of Junior School, has taken the position as Head of Junior School (Acting) for the remainder of Session 2025/26.

The number of pupils in the School at the start of Session 2024-25 was 1,657 as follows:

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||||||||| |---|---|---|---|---|---|---|---| |Nursery|32| |Junior|School|578| |Senior|School|1,047| |School|Fees|for 2024-25|(excluding|VAT)| |Nursery|£11,620| |Junior|School|(P1|and|P2)|£11,620| |Junior School (P3— P7)|£14,108| |Senior|School|£17,426| |School|Fees|for 2024-25|(including|20%|VAT)| |Nursery|£11,620| |Junior|School|(P1|and|P2)|£13,944| |Junior|School|(P3 —|P7)|£16,930| |Senior|School|£20,911| |Note:|Nursery Fees|for Session|2024-25|were|not subject|to|VAT|

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Pupil numbers for Session 2025-26 remain strong and notes of interest and applications for the coming Session continue to be positive. The School and Board is closely monitoring and tracking interest and applications.

As noted above, in the 2024-25 Session the Trust was able to continue the provision of the Foundation and means-tested Bursaries enabling 128 pupils to attend Heriot’s whose families could not otherwise have afforded school fees. The Trust seeks to ensure that awards enable children whose families could not otherwise access education in the independent sector, to come to the School and that the awards reflect the families’ abilities to pay.

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GEORGE HERIOT’S TRUST

Governors’ Report

for the year ended 31 July 2025

Resources

Estates

Information and Communication Technology

Community and Fundraising

The new ‘Force for Good’ committee met each term during the Session to identify and decide upon which charity partners the school would be working with for the 2025-2026 Session.

The decision to rationalise the number of charities supported by the School was based on research carried out by the Force for Good team as part of the enquiry group process. Staff and parent research feedback clearly identified a trend to focus on local not global charities, and preferably those which benefited children, community and bereavement-related causes.

Heriot’s Force for Good strategy has been shaped by the social and civic legacy of the George Heriot’s Trust in the 1800's, when over 100,000 boys and girls in Edinburgh benefitted from the free education offered by the 21 Heriot’s “Out Schools” created by the Trust.

Today, Heriot’s is known for developing good citizens who go out into the world as a force for good. Through the work of the Rights Respecting Groups, the Voluntary Service programme and the embedded School ethos of distributing chearfullie, pupils develop a philanthropic consciousness of tolerance, resilience and kindness.

The school will create partnerships to build lasting relationships with key local charities which fit within the newly defined focus on children, community, sustainability and bereavement. Charity partnerships will be thriving relationships active across the school.

As part of this, we will grow active participation in the Voluntary Service programme across different year groups, to embed the School motto of helping others and offering opportunities to pupils to contribute to this purpose through service.

Heriot’s will continue to develop partnerships with schools, colleges and universities in Edinburgh, sharing resources and expertise for the advancement of education.

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GEORGE HERIOT’S TRUST

Governors’ Report

for the year ended 31 July 2025

Fundraising

The Development Team, for the 2024-25 Session, has delivered revenue of £574,747.

The main drivers in income were greater donor stewardship, the annual ASK, the Bursary Today campaign, regular donations to the F400 endowment campaign, and the receipt of a number of legacies. The Trustees wish to express their sincere gratitude for all donations and legacies received during the year. These contributions play a vital role in supporting the Trust’s work and ensuring its continued success.

Sponsorship

The 2024/25 Session included a two-year commitment from STOATS to sponsor the boys’ and girls’ first hockey teams and a one-year Sponsorship of the 1s' XV rugby team by Graham + Sibbald.

Commercial Activities

The Heriots Centre for Sport and Exercise Limited (HCSE) continues to offer sports and leisure facilities to the School during school hours and to the general public outside these periods. Whilst the School continued to pay for the use of the facilities, HCSE’s external lettings have continued to grow modestly year-on-year by approximately 4% (£3k). The current operating loss remains broadly in line with the prior year.

The total income generated through Heriot Enterprises Limited (HE) also increased over the period, driven primarily by lettings at Goldenacre and premises hire during the Fringe Festival. We aim to develop long-term partnerships that deliver sustainable revenue year on year. The School is exploring opportunities to increase revenue generation, with careful forward planning to ensure these initiatives align with resource availability during holiday periods and do not distract from essential site maintenance or the School’s core functionality. Looking ahead, this approach will allow us to maximise the use of our facilities and create sustainable income streams that support the School’s long-term vision.

Parental Engagement

The parental body continues to engage with the School through a number of different means; the Parents’ Association (GHSPA), the Thrift Shop and the Junior and Senior School Liaison Groups. The primary objective of the George Heriot’s School Parents’ Association (GHSPA) is to support the School through arranging social events for families (the Heriot’s Ball is one example), supporting School events, and organising fundraising activities. Separate to the GHSPA, the Thrift Shop continues to provide an excellent service for families by selling second-hand uniforms, with subsequent earnings donated to the School to support educational activities and objectives. Finally, the Liaison Groups provide the mechanism for parents to express their views as to the running of the School with the Governing Body and Executive and provide a forum to discuss future School developments.

The Trustees are grateful to all the parents that volunteer their time to support each of the above groups as well as wider school activities and aims.

Former Pupil Volunteer Engagement

Farmer pupils have spoken to specific Senior School classes and continue to offer support. A careers mentor list of 57 former pupils who have offered their services as career mentors. The /nspirational Speakers event in March 2025 for S1 and S2 pupils was a huge success, featuring 8 speakers in the fields of film production, acting, Cardiovascular and Diabetes, Sustainable Engineering, Credit rating, Olympian rowing, business entrepreneurship and life coaching. It is hoped the Careers Department will take this event on for Careers Week in 2026.

Financial

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Year on year, the School seeks to generate a small trading surplus, to maintain its reserves at the level of three months operating costs and to provide additional funds to be invested in larger strategic projects on a periodic basis, to ensure Heriot’s continues to improve its education provision through enhancements to the estate. During the year, the group generated a total net surplus of £1,598,226, with the main contributary factors being donation income of £574,747, and gains on the investment portfolio of £510,138. This surplus is not freely available to the

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GEORGE HERIOT’S TRUST

Governors’ Report

for the year ended 31 July 2025

group in its entirety, with £1,064,640 being restricted or endowed for the Group’s charitable purposes. The remaining unrestricted surplus is £533,586 which, after adjusting for unrestricted donations of £36,087, unrestricted investment income of £272,728 and unrestricted gain on investments of £119,230 leaves an unrestricted surplus from trading activities of just £105,541, less than 1% of the trading income for the group. Gross fee income of £26,495,752 (2024 £25,021,585) was £1,474,167 (2024 £2,227,638) ahead of the previous year, due to a strong demand for places. The value of means-tested remissions increased to £1,674,496, representing 6.3% of gross fees. Total remissions increased to £2,575,766, equating to 9.7% of gross fees, resulting in net fees of £23,919,986, 5.9% above the previous year.

Other income and investment income increased significantly by 25% and 10% respectively.

Other income includes income received from Catering, Wrap Around Care, Pipe Band subscriptions, and HCSE external lettings. Visiting Music Teachers (VMT) have been engaged as workers by the School since September 2021 and the income from music lessons and subsequent payments made to VMTs are cost neutral. Donation income decreased by 48% to £574,747, of which £538,660 was allocated to restricted and endowment funds.

Overall, this resulted in the Group’s total income increasing 4.9% from £25,874,642 to £27,153,198.

Total expenditure increased by 7.4%. Salary costs increased by 6.9% due to the increase to employers’ national insurance contributions from 13.8% to 15% effective from April 1st and the scale point increases for both teaching and support staff. Premises costs also increased in the year by 5.6% due to continued investment in the estate.

There was a cash balance of £8,176,844 (2024 £15,200,872) at the balance sheet date. The 2024 balance was largely due to a higher than usual number of parents choosing to pay their fees for Session 2024-25 prior to the year-end date. Unrestricted net current assets have decreased by 12.6% on the prior year to £3,603,683 (2024 £4,121,127).

Principal Funding Sources

The principal recurring funding sources of the Trust are School fees and other School income. The School also receives donation income.

Investments

Powers of Investment

The investment powers of the Governors are defined by the Trust Scheme, which permits the purchase and realisation of any heritable property for the Trust Purposes and gives the Trustees the power to exercise all the powers of investment and others conferred upon trustees under the laws of Scotland and to employ professional advisers and investment managers.

Investment, Objective and Risk Appetite

The Trust's objectives for its investments are to generate both long-term income and capital growth as a protection against inflation. The Governors have agreed that a medium level of risk will apply to all the funds in the Trust portfolio, with the exception of funds likely to be required within a short term, where the objective is income bias with a low degree of risk.

The Governors keep under review the investment risks and rewards in the current state of the market and having taken professional advice on the matter, all available retained funds held for the medium and long term are put into the Discretionary portfolio with a view to achieving an annual target which exceeds the current rate of inflation. Cash not required for day-to-day operations is placed on deposit for appropriate periods and/or invested appropriately to enable short-term access, as advised by the investment managers. The Governors confirm that all the Funds under their management have assets available to meet all current obligations.

Risk

Investment Parameters are agreed with the Investment Manager, Brewin Dolphin, which supports the investment objectives and risk profile set by the Governors. These parameters are reviewed annually. There was no change to the parameters in the year.

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GEORGE HERIOT’S TRUST

Governors’ Report

for the year ended 31 July 2025

Performance Management and Review

Criteria for performance management, comparative statistics and quarterly reporting have been agreed with the Investment Manager and are reviewed by the Finance & Resources Committee bi-annually. Comprehensive reports are prepared for the quarters ending March, June, September, and December.

Management Fees

The fees for investment management have been discussed and approved by the Governors’ Investment SubCommittee and are included in the Discretionary Investment Management Parameters.

Investment Performance

The Trust’s main portfolio and the B fund portfolio generated returns of 2.2% and 2.4% respectively over the 12month period against market value. The overall portfolio market value generated a surplus of £510,138.

Reserves

The Governors’ policy is to meet ongoing expenditure from School fees on an annual basis. Designated Reserves are created for specific projects, and it is expected that these funds (except for the JF Brown Fund which is designated to support future enhancement of the School) will be expended in the next 3-5 years. Total funds are £72,264,861, comprising unrestricted funds of £60,164,234 (of which £3,543,007 is designated) and restricted and endowed funds of £12,100,627. Group free reserves, being unrestricted general funds not tied up in fixed assets or loans, totaled £3,011,548 (2024 £2,934,489).

Announcements in the Chancellor's Autumn budget in October 2024 put pressure on the independent schools’ sector with the removal of the exemption of VAT on independent school fees from January 2025 and increases to national insurance costs from April 2025. The Governors recognise that the Trust needs to support all our families and give parents certainty going forward. Thus, the Board has decided it would not impose a fee rise for the following three sessions, to maintain the base fees at their current level for; Sessions 2025-26, 2026-27 and 2027-28 but has applied the statutory 20% VAT in line with current regulations.

It is hoped that this three-year fee freeze will provide parents with the cost stability they seek and allow families to plan their finances. From August 2028, it is expected that fees will increase annually, in line with inflation. This strategy is naturally dependent on the School roll remaining stable, and there being no further significant external factors impacting our business model.

At the date of this report, pupil numbers remain strong. The Senior Management Team constantly assesses the appropriateness of budget assumptions, through the monitoring of existing pupil numbers, demand for places at Heriot’s and the general demand for independent school places within its catchment area. Changing economic and political factors could impact these assumptions. The School is not exposed to exchange rate risks, but salary and other costs inflation will have an inevitable impact on School fees if budgeted surpluses and cash flow, and therefore future investment in the School, are not to be adversely affected.

Reforecasting and sensitivities work continues on a regular basis as fiscal events affect the sector and the wider economy. Based on our current forecasts, committed revenue and capital expenditure, current unrestricted cash reserves are sufficient to support the School should those sensitivities occur. The Governors are required to ensure that all funds, endowed or restricted, maintain a positive balance.

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GEORGE HERIOT’S TRUST Governors’ Report

for the year ended 31 July 2025

Structure, Governance and Management

Governing Document

George Heriot’s Trust is a charity, registered in the Scottish Charity Register number SC011463, and administered under the George Heriot’s Trust Scheme 2017 (amended June 2024). The Trust owns and operates George Heriot’s School.

Governing Body

The constitution of George Heriot’s Trust comprises the Scheme and the Regulations (including Fund Regulations) which lay out matters of administration and Governance for the Trust including management of legated Funds and finances. They contain appropriate objectives and powersfor the Trust, blending the history of the Trust with current law and modern governance best practice. The Governing Body may, from time to time in accordance with its own processes and applicable legal requirements, amend the Regulations.

Governor candidates for a vacancy will be sourced and proposed to the Board by a Nominations Committee based on criteria set by the Board for the position.

The methodology of appointing new Governors is designed to ensure that the Board of Governors always has an appropriate blend of knowledge, skills, and experience.

New Governors are introduced to the workings of the School, policies, procedures, safeguarding, and good governance practices, through a formal induction process which includes “welcome” meetings with the Chair and Convenors of Board Committees, the Principal and senior members of the Management Team. New and existing Governors are encouraged to attend training seminars organised by SCIS, AGBIS, OSCR and other bodies.

No Governor received any remuneration or reimbursement of expenses during the financial year. Details of related party transactions with Governors are set out in Note 26.

Subsidiaries

The Trust has two wholly owned subsidiary companies - Heriot Enterprises Limited which conducts letting of the School premises and the sale of merchandise, and The Heriot’s Centre for Sport and Exercise Limited which operates the Heriot's Centre for Sport and Exercise under a non-exclusive license from the Trust. Whilst each Company has its own Board of Directors comprising a mix of Governors, Senior Management and external Directors, its operations and financial performance were overseen by the Board of Governors.

Heriot’s Centre for Sport and Exercise Limited was registered as a charity with OSCR on 22 May 2014. Its charitable number is SC044874. Its charitable purposes are the advancement of education, the advancement of health, the advancement of public participation in sport, the provision of recreational facilities, and the organisation of recreational activities, with the object of improving the conditions of life for the persons for whom the facilities or activities are primarily intended.

The financial results of these companies (which are not significant in relation to the overall financial results of the Trust) are consolidated into these financial statements.

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GEORGE HERIOT’S TRUST

Governors’ Report

for the year ended 31 July 2025

Organisational Management

The Governors meet as a Board at least four times a year to oversee strategic direction, provide support and challenge, and seek assurance on the leadership and day-to-day management of the school. The Governing Body grants authority for detailed scrutiny to various Board Committees and sub-committees.

The Committee structure is currently under review to ensure good governance, as part of the review of the Scheme Regulations and the review of School strategy.

The key Committees during the 2024-25 Session were:

One Governor is designated as Named Governor for Safeguarding. Dr Mary Bovill held this position for the majority of the reporting period. Dr Pauline Sangster took over this position towards the end of the reporting period.

Management of the School is delegated under the Trust Regulations to the Principal, who is supported from an educational perspective by the Senior School and Junior School Leadership Teams. Infrastructure and business managementis overseen by the School’s Senior Management Team for Session 2024-25 (comprising the Principal, Heads of Senior and Junior School, Deputy Head of Junior School, one Depute from the Senior School, Director of External Relations, Director of IT, Director of Estates, Director of HR, Director of Finance and Director of Governance Risk and Compliance).

As noted previously, during the reporting period 2024-25 the School was pleased to appoint a new Head of Senior School, Mr Alastair Anderson, who started his position on 1st August 2025.

Remuneration Policy

The Governors’ Remuneration Committee (which is a sub-committee of the Finance and Resources Committee) sets and conducts periodic performance reviews and annual reviews of remuneration for the Principal. This is carried out with reference to independent school sector benchmarking.

Risk Management

The Board of Governors provides overall leadership and supervision of the Trust within a framework of prudent and effective controls which enables risk to be assessed and managed. The Governors are responsible for risk oversight and the School’s Senior Management Team maintains a system of internal monitoring controls to safeguard the continuance of the Trust and its property. Key strategic and operational risks are recorded in a Whole School Risk Register which includes warning indicators that service to highlight change in risk likelihood or impact. Each defined risk is reviewed by a member of the Senior Management Team, and the School has a dedicated Health and Safety Group tasked with assessing specific risks relating to Health and Safety Legislation and reports to the Board’s Finance and Resources Committee.

A separate register of risks is maintained for the Heriot’s Centre for Sports and Exercise Limited, a wholly owned subsidiary of the Trust. This is overseen by the HCSE Ltd Board.

The Governors are satisfied that risks are identified and reviewed, and that suitable controls and mitigation measures are in place.

12

GEORGE HERIOT’S TRUST

: | |

for the year ended 31 July 2025

Governors’ Report

Governors

On 18 December 2024 Mark Strachan formally retired as a Governor. Ross McAuley, and Mary Bovill retired as Governors on 19 June 2025, and Vineet Lal retired as a Governor on 30 October 2025.

|||||| |---|---|---|---| ||Following a robust recruitment process, Paul Rowllingswas||appointed as a new Governor on 19 June 2025.| |)|Following the retiral ofMark Strachan as Vice-Chair, in March 2025 Louise Gibson and Alasdair Humpherywere||| ||appointed as Joint Vice-Chairs.||| |||TheGovernors,whoarealso the Charity|also the CharityTrustees,whoserved as atthedateofthis report and/orduring theyear,|| |||are:||| |||Mrs Joyce Cullen||All Committees| |||Chair||| ||Professor Mark Strachan|Retired 18 December2024 | All Committees|| |||Vice Chair||| ||Mrs Louise Gibson|Appointed Co-Vice Chair26||People (Convenor), Financeand Resources| ||Co-Vice Chair|March 2025|All other Committees as Co-Vice Chair| ||MrAlasdairHumphery
Co-Vice Chair|Appointed Co-Vice Chair26
March 2025||Finance and Resources, Estates Sub-
Committee; Heriot Enterprises Limited| ||||All other Committees as Co-Vice Chair| ||Mrs Kate Cherry||Bursaries, Foundation &| ||||Scholarships (Convenor); Charities,| ||||Philanthropy and Heritage (Interim| ||||Convenor from November 2024 to| ||||November 2025): Education| ||MrVineet Lal|Retired 30 October 2025|JuniorSchool Liaison Group| ||||(Convenor); Charity, Philanthropy and| ||||Heritage; Education| ||MrAndrew McGeough||Financeand Resources| ||||(Convenor); Heriot Enterprises| ||||Limited; Heriot’s Centre for Sport| ||||and Exercise Limited| ||Dr Pauline Sangster||Education (Convenor); Bursaries, Foundation &| ||Named Governorfor||Scholarships; Named Governor forSafeguarding| ||Safeguarding||(Convenorfrom June 2025| ||MrRoss McAuley|Retired 19 June 2025|Senior School Liaison Group (Convenor);| ||||Finance and Resources| ||Mrs Nicola McLaughlan|Retired 14November2024 | Charity, Philanthropyand Heritage (Convenor);|| ||||Finance and Resources| ||MrPaolo Alonzi||Finance and Resources; Investment Sub-| ||||Committee| ||MrBryan Sherriff||Financeand Resources, Estates Sub-| ||||Committee| ||Dr Mary Bovill|Joined 27 March 2024,|Named Governor for| |||Retired 19June 2025.|Safeguarding
(Convenor), Education| ||Mr Paul Rowllings|Appointed 19 June 2025|Finance and Resources; Charities, Philanthropy| ||||and Heritage (Convenor from November 2025);| ||||Heriot Enterprises Limited; Heriot's Centre for| ||||SportandExerciseLimited|

Following the retiral of Mark Strachan as Vice-Chair, in March 2025 Louise Gibson and Alasdair Humphery were appointed as Joint Vice-Chairs.

Note: Unless otherwise stated, Governors held office for the whole of the financial year.

13

GEORGE HERIOT’S TRUST

Governors’ Report

for the year ended 31 July 2025

Key Management Personnel

Gareth Warren Principal
Lynda Fyffe DirectorofFinance
Kirstie Macdonald Director of Governance, Risk and Compliance
Paul Fairclough Head ofSeniorSchool (left 31 July 2025)
Alastair Morrison Head ofJuniorSchool (left 10 October 2025)
Key Trust Details
Principal Office: Lauriston Place Edinburgh EH3 9HE
Bankers: Bank ofScotland, New Uberior House, Earl Grey Street, Edinburgh, EH3 9BN
The Royal Bank of Scotland, 42 StAndrew Square, Edinburgh, EH2 2AD
Auditors: Azets Audit Services, Quay 2, 139 Fountainbridge, Edinburgh EH39QG
Legal Agents [Solicitors]:
Investment Managers: RBC Brewin Dolphin, 144 Morrison Street, Edinburgh, EH3 8BR
Insurers: Marsh Education Practice, 4 Milton Road, Haywards Heath, West Sussex, RH16 1AH
Charitynumber: SC011463

14

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GEORGE HERIOT’S TRUST

Governors’ Report

for the year ended 31 July 2025

Governors’ Responsibilities For The Financial Statements

The Governors are required by charity law to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the group and Trust as at the Balance Sheet date and of its incoming resources and applications of resources, including income and expenditure, for the financial year. In preparing the financial statements, the Governors are required to:

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The Governors are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the group and Trust and to enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005 and Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Azets Audit Services have expressed their willingness to continue in office as auditor and will be proposed for re-appointment at the Board Meeting.

Approved by the Governors at their meeting of 16 December 2025 and signed on their behalf by

Joyce Cullen Chair of Governors

15

GEORGE HERIOT’S TRUST

Independent Auditor’s Report to the Governors of George Heriot’s Trust

for the year ended 31 July 2025

Opinion

We have audited the financial statements of George Heriot’s Trust (the parent charity) and its subsidiaries (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.

16

| e wehave not received all the information and explanations we require for our audit. | Responsibilities of Governors | As explained more fully in the Governors’ responsibilities statement, 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.

GEORGE HERIOT’S TRUST

Independent Auditor’s Report to the Governors of George Heriot’s Trust

for the year ended 31 July 2025

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:

|

|

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 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.

17

GEORGE HERIOT’S TRUST Independent Auditor’s Report to the Governors of George Heriot’s Trust

for the year ended 31 July 2025

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:

18

19 December 2025

Consolidated Statement of Financial Activities

GEORGE HERIOT’S TRUST

for the year ended 31 July 2025

Unrestricted Restricted Endowment Total Total
Notes Funds Funds Funds 2025 2024
£ £ £ £ £
Income and endowments from:
Donations and legacies 5 36,087 260,008 278,652 574,747 ~=—1,109,550
Income from charitable activities:
Schoolfees 6 23,919,986 - - 23,919,986 22,585,607
Other income 7 2,173,306 - - 2,173,306 1,738,413
Investment income 8 272,728 210,547 1,884 485,159 441,072
Total 26,402,107 470,555 280,536 27,153,198 25,874,642
Expenditure on:
Raising funds 9 246,506 - - 246,506 281,206
Charitable activities 10 25,741,245 77,359 - 25,818,604 23,994,524
Total 25,987,751 77,359 - 26,065,110 24,275,730
Net gain on investments 119,230 23,680 367,228 510,138 929,380
Net income and
movement in funds 533,586 416,876 647,764 1,598,226 2,528,292
Total funds broughtforward 21 59,630,648 1,523,279 9,512,708 70,666,635 68,138,343
Totalfundscarriedforward 21 60,164,234 1,940,155 10,160,472 72,264,861 70,666,635

All activities relate to continuing operations.

The group has no recognised gains or losses other than as set out above.

The notes on pages 24 to 53 form part of these financial statements 20

GEORGE HERIOT’S TRUST

.

Trust Statement of Financial Activities

2 |

| |

for the year ended 31 July 2025

Unrestricted Restricted Endowment Total Total
Notes Funds Funds Funds 2025 2024
£ £ £ £ £
Income and endowments from:
Donationsand legacies 5 58,704 260,008 278,652 597,364 1,134,807
Income from charitable activities:
Schoolfees 6 23,919,986 - - 23,919,986 22,585,607
Otherincome 7 2,097,887 - - 2,097,887 1,689,014
Investment income 8 272,728 210,547 1,884 485,159 441,672
Total 26,349,305 470,555 280,536 27,100,396 25,851,100
Expenditure on:
Raisingfunds 9 246,506 - - 246,506 281,206
Charitable activities 10 25,686,974 77,359 - 25,764,333 23,948,383
Total 25,933,480 77,359 - 26,010,839 24,229,589
Net gain on investments 119,230 23,680 367,228 510,138 929,380
Net income and movement in
funds 535,055 416,876 647,764 1,599,695 2,550,891
Total funds broughtforward 21 59,574,483 1,523,279 9,512,708 70,610,470 68,059,579
Totalfundscarriedforward 21 60,109,538 1,940,155 10,160,472 72,210,165 70,610,470

All activities relate to continuing operations.

The Trust has no recognised gains or losses other than the results for the period as set out above.

The notes on pages 24 to 53 form part of these financial statements 21

GEORGE HERIOT’S TRUST

Consolidated and Trust Balance Sheet

as at 31 July 2025

Group

Trust

Notes 2025 2024 2025 2024
£ £ £ £
Fixed assets
Tangible assets 13 60,686,317 60,717,636 60,665,187 60,717,636
Investments 14 13,450,433 12,090,054 13,450,433 12,090,054
74,136,750 72,807,690 74,115,620 72,807,690
Current assets
Stock 47,242 50,853 27,719 32,139
Debtors 15 630,919 303,439 675,404 347,048
Cash at bank and in hand 8,176,844 15,200,872 8,061,099 15,127,174
8,855,005 15,555,164 8,764,222 15,506,361
Creditors: Amounts falling duewithin
one year 17 (4,114,350) (10,671,779) (4,057,133) (10,679,141)
Net current assets 4,740,655 4,883,385 4,707,089 4,827,220
Total assets less current liabilities 78,877,405 77,691,075 78,822,709 77,634,910
Creditors: Amounts falling due after
more than one year 18 (6,612,544) (7,024,440) (6,612,544) (7,024,440)
Net assets 20 72,264,861 70,666,635 72,210,165 70,610,470
Thefunds ofthe Group/Trust:
Endowment funds 10,160,472 9,512,708 10,160,472 9,512,708
Restricted funds 1,940,155 1,523,279 1,940,155 1,523,279
Unrestricted funds
General funds 56,621,227 56,202,240 56,566,531 56,146,075
Designated funds 3,543,007 3,428,408 3,543,007 3,428,408
Totalfunds 21 72,264,861 70,666,635 72,210,165 70,610,470

The financial statements were approved and authorised for issue on 16 December 2025 and signed on behalf of the Governors by:

Joyce ng ee SO Chair of the Governors

The notes on pages 24 to 53 form part of these financial statements

22

GEORGE HERIOT’S TRUST

Consolidated and Trust Statement of Cash Flows

|

| | | |

for the year ended 31 July 2025

Group Group Trust Trust
Note 2025 2024 2025 2024
£ £ £ £
Netcash (used in)/providedbyoperating
activities		 22 (5,851,342) 8,694,474 (5,919,801) 8,721,314
Cashflowsfrom investing activities:
Dividends and interest from investments 485,159 441,072 485,159 441,672
Purchase oftangible assets (591,273) (372,325) (564,861) (372,325)
Purchaseofinvestments
Proceeds from sale ofinvestments		 (3,059,905)
2,200,794		 (6,034,031)
5,474,683		 (3,059,905)
2,200,794		 (6,034,031)
5,474,683
Proceeds from sale oftangible assets - 138,389 - 138,389 -
Finance costs paid (314,244) (299,987) (314,244) (299,987)
Netcash used in investing activities (1,141,080) (790,588) (1,114,668) (789,988)
Cash flows from financing activities:
Repayment offinance leases (244,902) (183,679) (244,902) (183,679)
Finance leases taken out in the year 369,408 - 369,408 -
Repayments ofloans (424,990) (2,219,165) (424,990) (2,219,165)
Bank loan taken out in the year - 1,820,000 - 1,820,000
Receipt ofendowment donations 260,008 741,370 260,008 741,370
Netcash (used in)/provided by financing activities (40,476) 158,526 (40,476) 158,526
Change in cash and cash equivalents in the
reporting period (7,032,898) 8,062,412 (7,074,945) 8,089,852
Cash and cash equivalents atthe beginning of
the reporting period 15,311,026 7,248,614 15,237,328 7,147,476
Cash and cash equivalents at the end ofthe
reportingperiod 23,24 8,278,128 15,311,026 8,162,383 15,237,328

The notes on pages 24 to 53 form part of these financial statements 23

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

for the year ended 31 July 2025

1. General information

These financial statements are presented in pounds sterling (GBP) as that is the currency in which the group’s transactions are denominated. They comprise the financial statements of George Heriot’s Trust and its subsidiary undertakings Heriot Enterprises Limited and The Heriot’s Centre for Sport and Exercise Limited.

The objectives of George Heriot’s Trust are detailed in the Governors’ Report on page 1.

The principal activity of Heriot Enterprises Limited is the promotion of the interests and welfare of George Heriot’s Trust through the sale of goods and services.

The principal activity of The Heriot’s Centre for Sport and Exercise Limited is to advance health, education and public participation in sport generally as well as the provision of recreational facilities or the organisation of recreational activities.

George Heriot’s Trust is an unincorporated charity, recognised as a charity for tax purposes by HMRC and registered with the Office of the Scottish Charity Regulator (OSCR) under charity number SC011463. Details of the principal address can be found on page 14 of these financial statements.

2. Principal accounting policies Basis of preparation

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, ‘The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland’ (“FRS 102”) (United Kingdom Generally Accepted Accounting Practice), the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)’, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).

George Heriot’s Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires Governors to exercise their judgement in the process of applying the accounting policies. Use of available information and application of judgement are inherent in the formation of estimates. Actual outcomes in the future could differ from such estimates. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3.

The principal accounting policies applied in the preparation of these financial statements are noted below. These policies have been applied consistently to all the years presented in dealing with items which are considered material in relation to the group’s financial statements unless otherwise stated.

Basis of consolidation

The consolidated financial statements incorporate the results of the George Heriot’s Trust and its subsidiary undertakings, Heriot Enterprises Limited and The Heriot’s Centre for Sport and Exercise Limited on a line by line basis.

24

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

|

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for the year ended 31 July 2025

2. Principal accounting policies (continued)

Going concern

Having given consideration to the net assets position, cash flow and budgets for the forthcoming period, the Governors areofthe opinion that the group and parent charity can continue to meet its obligations as they fall due for the foreseeable future. As a consequence, the Governors have prepared the financial statements under the going concern assumption.

:

Recognition and allocation of income

Income is recognised when the group has legal entitlement to the funds, the receipt is probable, and the amount can be measured reliably. Where practicable, income is related to the operating activity of the group.

Where there are performance conditions attached to any donations, income is recognised when the conditions have been met or when meeting the conditions are within the group’s control and there is sufficient evidence that they have been or will be met.

Income from school fees and other charitable activities is recognised in line with the performance of the service. Income received in advance of the school year is deferred to the relevant period.

Investment income is recognised upon receipt.

Income received by the group in an agency role, together with the related expenditure, is excluded from the financial statements in accordance with the requirements of the Statement of Recommended Practice: Accounting and Reporting by Charities.

Recognition and allocation of expenditure

Expenditure is recognised on an accruals basis as a legal or constructive liability is incurred. Where VAT cannot be recovered it is reported as part of the expenditure to which it relates. All expenditure is classified directly to the operating activity of the group.

e Expenditure on raising funds comprises those costs which are associated with the generation of income from sources other than the charitable activity. e Expenditure on the charitable activity comprises those costs incurred in running the School and includes both the direct costs and the support costs relating to this activity. e Governance costs, which are included within expenditure on charitable activities, include those costs associated with meeting the constitutional and statutory requirements of the group and include professional fees and costs linked to the strategic management of the group.

25

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

for the year ended 31 July 2025

2. Principal accounting policies (continued)

Funds

Unrestricted funds are school fees and other incoming resources generated for the objects of the group without further specified purpose and are available as general funds.

Designated funds are unrestricted funds earmarked by the Board of Governors for particular purposes.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Endowment funds are resources received by the Trust held as capital where income generated is expended on purposes which meet the criteria of the fund.

Hire purchase contracts and leases

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets are depreciated over the shorter of the lease term and their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the group. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Financial Activities so as to produce a constant period rate of charge on the net obligation outstanding each period.

Operating leases

Operating leases are charged to the Statement of Financial Activities on a straight-line basis over the term of the lease.

Tangible fixed assets

Items of equipment are capitalised and written off over their expected useful lives. Equipment costing under £1,000 is not capitalised and is written off to revenue when the expenditure is incurred. All fixed assets are initially recorded at cost.

Gifts or bequests of pictures and trophies are not included in the financial statements unless a fair value can be measured or estimated reliably.

Depreciation

Tangible fixed assets are initially measured at cost, and are subsequently measured at cost net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Buildings are reviewed annually for impairment, and the Governors consider that their useful economic lives and residual values are such that any depreciation would not be material.

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets 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).

26

Notes to the Financial Statements

GEORGE HERIOT’S TRUST

for the year ended 31 July 2025

2. Principal accounting policies (continued)

Investments

Investments in 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 Statement of Financial Activities in the year in which they arise.

In the Trust financial statements, the investment in the subsidiary undertaking is held at cost less impairment.

Debtors

Fee debtors are amounts due for pupils attending the school in respect of their tuition fees. Fee debtors are recognised at the undiscounted amount of cash receivable, which is normally the invoiced amount, less any allowance for doubtful debts.

Prepayments are valued at the amount prepaid at the year-end date. Other debtors are recognised when the income recognition criteria have been met but monies have not been received at the year-end.

Cash and cash equivalents

Cash and cash equivalents consist of cash in hand and balances with banks which are readily convertible into cash.

Creditors

Creditors are recognised where the group has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

Trade creditors are obligations to pay for goods or services that have been acquired. Accounts payable are classified as creditors falling due within one year if payment is due within one year or less. If not, they are presented as creditors falling due after one year. Trade creditors are recognised at the undiscounted amount owed to the supplier, which is normally the invoice price.

Pension costs

The Trust contributes to the Scottish Teachers’ Superannuation Pension Scheme (“The Scheme’) at rates set by the Scheme Actuary and advised to the Board of Governors by the Scheme Administrator. The Scheme is a multi-employer defined benefit pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the Trust. Therefore, in accordance with FRS 102, the scheme is accounted for as a defined contribution scheme. The Trust also contributes to a defined contribution occupational pension scheme for support staff. Contributions to both schemes are charged in the Statement of Financial Activities as they become payable in accordance with the rules of the schemes.

Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the Group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

27

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

for the year ended 31 July 2025

2. Principal accounting policies (continued)

Financial assets and financial liabilities

Financial instruments are recognised in the Statement of Financial Activities when the group becomes a party to the contractual provisions of the instrument. Financial instruments are classified as either ‘basic’ or ‘other’ in accordance with Chapter 11 and 12 of FRS 102. The group only enters into basic financial instruments. Financial instruments are initially measured at transaction price. Subsequent to initial recognition, they are accounted for as set out below. A financing transaction is measured at the present value of the future payments discounted at the market rate of interest for a similar debt instrument.

At the end of each reporting period, basic financial instruments are measured at the amortised cost using the effective interest rate method.

Financial assets are derecognised when the contractual rights to the cash flows from the asset expire, or when the group has transferred substantially all the risks and rewards of ownership. Financial liabilities are derecognised only once the liability has been extinguished through discharge, cancellation or expiry.

3. Critical judgements and estimates

In preparing the financial statements Governors make estimates and assumptions which affect reported results, financial position and disclosure of contingencies. Use of available information and application of judgement are inherent in the formation of the estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.

The Governors are satisfied that accounting policies are appropriate and applied consistently. Key sources of accounting estimation have been applied to the depreciation rates and residual values which are deemed to be appropriate for the class of asset.

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| | | |

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

|

for the year ended 31 July 2025

4. Comparative Statement of Financial Activities

|

|

==> picture [433 x 339] intentionally omitted <==

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |2024|Group| |Unrestricted|Restricted|Endowment|Total| |Funds|Funds|Funds|2024| |£|£|£|£| |Income and|endowments|from:| |Income from|charitable|activities:| |School fees|22,585,607|-|-|22,585,607| |Other|income|1,738,413|-|-|1,738,413| |Investment income|235,715|205,357|-|441,072| |Total|24,748,041|385,231|741,370|25,874,642| |Expenditure on:| |Raising|funds|281,206|-|;|281,206| |Charitable|activities|23,874,643|119,881|-|23,994,524| |24,155,849|119,881|-|24,275,730| |Total|—__|ae| |Net|gain|on|investments|238,461|38,141|652,778|929,380| |Net income|and|movement|in|funds|830,653|303,491|1,394,148|2,528,292|

----- End of picture text -----

29

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

for the year ended 31 July 2025

4. Comparative Statement of Financial Activities (continued)

2024 Trust
Unrestricted Restricted Endowment Total
Funds Funds Funds 2024
£ £ £ £
Income and endowments from:
Donations and legacies 213,563 179,874 741,370 1,134,807
Income from charitable activities:
Schoolfees 22,585,607 - - 22,585,607
Other income 1,689,014 - - 1,689,014
Investment income 236,315 205,357 - 441,672
Total 24,724,499 385,231 - 25,851,100
Expenditure on:
Raising funds 281,206 - - 281,206
Charitable activities 23,828,502 119,881 - 23,948,383
24,109,708 119,881 - 24,229,589
Total —_— eee
Net gain on investments 238,461 38,141 652,778 929,380
Netincomeandmovementinfunds 853,252 303,491 1,394,148 2,550,891

30

: |

Notes to the Financial Statements

GEORGE HERIOT’S TRUST

for the year ended 31 July 2025

5. Donations and legacies

Group
2025 Unrestricted Restricted Endowment 2025
funds funds funds Total
£ £ £ £
Sundry donations 36,087 260,008 278,652 574,747
: 2024 Unrestricted Restricted Endowment 2024
funds funds funds Total

£
£
£
£

Sundry donations
188,306
179,874
741,370
1,109,550
Trust
2025 Unrestricted Restricted Endowment
funds funds funds
£ £ £ £
Heriot Enterprises Limited 22,617 - - 22,617
Sundry donations 36,087 260,008 278,652 574,747
58,704 260,008 278,652 597,364
2024 Unrestricted Restricted Endowment 2024
funds funds funds Total
£ £ £ £
Heriot Enterprises Limited 25,257 - - 25,257
Sundry donations 188,306 179,874 741,370 1,109,550
213,563 179,874 741,370 1,134,807
6. School fees receivable
Group and Trust
2025 Unrestricted Restricted Endowment 2025
funds funds funds Total
£ £ £ £
Gross school fees 26,495,752 - - 26,495,752
Scholarships, bursaries,
remissions and discounts (2,575,766) - - (2,575,766)
23,919,986 - - 23,919,986

31

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

for the year ended 31 July 2025

6. School fees receivable (continued)

Group and Trust (continued)

2024 Unrestricted Restricted Endowment 2024
funds funds funds Total
£ £ £ £
Gross school fees 25,021,585 - - 25,021,585
Scholarships, bursaries,
remissionsand discounts (2,435,978) - - (2,435,978)
22,585,607 - - 22,585,607
Other income
Group
2025 Unrestricted Restricted Endowment 2025
funds funds funds Total
£ £ £ £
Wrap Around Care 519,406 - - 519,406
Refectory 729,586 - - 729,586
Acceptance fees 96,060 - - 96,060
Pipe Band fees 104,384 - - 104,384
Hire of facilities and equipment 136,850 - - 136,850
Other 587,020 - - 587,020
2,173,306 - - 2,173,306
2024 Unrestricted Restricted Endowment 2024
funds funds funds Total
£ £ £ £
Wrap Around Care 508,740 - - 508,740
Refectory 654,702 - - 654,702
Acceptance fees 101,125 - - 101,125
Pipe Band fees 115,952 - - 115,952
Hire of facilities and equipment 111,951 - - 111,951
Other 245,943 - - 245,943
1,738,413 - - 1,738,413

7. Other income

32

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

| | |

| |:

for the year ended 31 July 2025

7. Other income (continued)

Trust
2025 Unrestricted Restricted Endowment 2025
funds Funds Funds Total
£ £ £ £
Wrap Around Care 519,406 - - 519,406
Refectory 729,586 - - 729,586
Acceptance fees 96,060 - - 96,060
Pipe Band fees 104,384 - - 104,384
Heriot’s Centre for Sport and
Exercise Ltd		 66,814 - - 66,814
Other 581,637 - - 581,637
2,097,887 - - 2,097,887
2024 Unrestricted Restricted Endowment 2024
funds Funds Funds Total
£ £ £ £
WrapAround Care 508,740 - - 508,740
Refectory 654,702 - - 654,702
Acceptance fees 101,125 - - 101,125
Pipe Band fees 115,952 - - 115,952
Heriot’s Centre for Sportand
Exercise Ltd 61,431 ~ - 61,431
Other 247,064 - - 247,064
1,689,014 - - 1,689,014
Investment income
Group
2025 Unrestricted Restricted Endowment 2025
funds Funds Funds Total
£ £ £ £
Bank interest 209,745 - 3 209,748
Dividends 62,983 210,547 1,881 275,411
272,728 210,547 1,884 485,159
2024 Unrestricted Restricted Endowment 2024
funds Funds Funds Total
£ £ £ £
Bank interest 167,701 - - 167,701
Dividends 68,014 205,357 - 273,371
235,715 205,357 - 441,072
  1. Investment income

33

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

for the year ended 31 July 2025

8.. Investment income (continued)

Trust
2025 Unrestricted Restricted Endowment 2025
funds Funds Funds Total
£ £ £ £
Bank interest 209,745 - 3 209,748
Dividends 62,983 210,547 1,881 275,411
272,728 210,547 1,884 485,159
2024 Unrestricted Restricted Endowment 2024
funds Funds Funds Total
£ £ £ £
Bank interest 168,301 - - 168,301
Dividends 68,014 205,357 - 273,371
236,315 205,357 - 441,672
Expenditureon raising funds
Group and Trust
2025 Unrestricted Restricted Endowment 2025
funds funds funds Total
£ £ £ £
Development
Wages and salaries (note 12) 208,100 - - 208,100
Other 38,406 - - 38,406
246,506 - - 246,506
2024 Unrestricted Restricted Endowment 2024
funds funds funds Total
£ £ £ £
Development
Wages and salaries (note 12) 187,410 - - 187,410
Other 93,796 - - 93,796
281,206 - - 281,206

9. Expenditure on raising funds

34

Notes to the Financial Statements

|

| | | 3 |

GEORGE HERIOT’S TRUST

for the year ended 31 July 2025

10. Expenditure on charitable activities

Group
2025 Unrestricted Restricted Endowment 2025
funds funds funds Total
£ £ £ £
School operating costs
Wages and salaries (note 12) 19,275,439 - - 19,275,439
Teaching costs 642,558 - - 642,558
Welfare costs 384,711 - - 384,711
Premises 2,523,456 - - 2,523,456
Support costs forschooling 851,587 3,414 - 855,001
Depreciation (note 13) 494,448 - - 494,448
24,172,199 3,414 - 24,175,613
Bank loan interest 314,244 - - 314,244
Governance costs (note 11) 1,254,802 73,945 - 1,328,747
25,741,245 77,359 - 25,818,604
2024 Unrestricted Restricted ©Endowment 2024
Funds funds funds Total
£ £ £ £
School operating costs
Wages and salaries (note 12) 18,186,769 - - 18,186,769
Teaching costs 623,291 - - 623,291
Welfare costs 403,035 - - 403,035
Premises 2,389,825 - - 2,389,825
Support costs forschooling 568,726 48,918 - 617,644
Depreciation (note 13) 413,575 - - 413,575
22,585,221 48,918 - 22,634,139
Bank loan interest 299,987 - - 299,987
Governance costs (note 11) 989,435 70,963 - 1,060,398
23,874,643 119,881 - 23,994,524
Trust
2025 Unrestricted Restricted Endowment 2025
Funds funds funds Total
£ £ £ £
School operating costs
Wagesand salaries (note 12) 19,275,439 - - 19,275,439
Teaching costs 642,558 - - 642,558
Welfare costs 384,711 - - 384,711
Premises 2,474,467 - - 2,474,467
Support costs forschooling 851,587 3,414 - 855,001
Depreciation (note 13) 489,166 - - 489,166
24,117,928 3,414 - 24,121,342
Bank loan interest 314,244 - - 314,244
Governance costs (note 11) 1,254,802 73,945 - 1,328,747
25,686,974 77,359 - 25,764,333

35

Notes to the Financial Statements for the year ended 31 July 2025

GEORGE HERIOT’S TRUST

10. Expenditure on charitable activities (continued)

Trust (continued)

2024 Unrestricted Restricted Endowment 2024
Funds funds funds Total
£ £ £ £
School operating costs
Wages and salaries (note 12) 18,186,769 - - 18,186,769
Teaching costs 623,291 - - 623,291
Welfare costs 403,035 - - 403,035
Premises 2,343,684 - - 2,343,684
Support costs for schooling 568,726 48,918 - 617,644
Depreciation (note 13) 413,575 - - 413,575
22,539,080 48,918 - 22,587,998
Bank loan interest 299,987 - - 299,987
Governance costs (note 11) 989,435 70,963 - 1,060,398
23,828,502 119,881 - 23,948,383
Governance costs
Group and Trust
2025 Unrestricted Restricted Endowment 2025
funds funds funds Total
£ £ £ £
Governance costs
Wages and salaries (note 12) 831,668 - - 831,668
Audit fees 29,775 - - 29,775
Other fees paid to auditor 30,176 - - 30,176
Professional fees 287,597 - - 287,597
Support costs forschooling - 73,945 - 73,945
Other 75,586 - - 75,586
1,254,802 73,945 - 1,328,747
2024 Unrestricted Restricted Endowment 2024
funds funds funds Total
£ £ £ £
Governance costs
Wages and salaries (note 12) 635,682 - - 635,682
Audit fees 28,350 - - 28,350
Otherfees paid to auditor 18,416 - - 18,416
Professional fees 258,609 - - 258,609
Support costs forschooling - 70,963 - 70,963
Other 48,378 - - 48,378
989,435 70,963 - 1,060,398

11. Governance costs

Group and Trust

36

| : |

| :

| |

| : | |

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

for the year ended 31 July 2025

12. Staff costs

Groupand Trust
2025 Unrestricted Restricted Endowment 2025
funds funds funds Total
£ £ £ £
Wages and salaries 15,500,370 - - 15,500,370
National insurance 1,749,117 - - 1,749,117
Pension contributions 3,021,060 - - 3,021,060
Agency costs 44,660 - - 44,660
20,315,207 - - 20,315,207
2024 Unrestricted Restricted Endowment 2024
funds funds funds Total
£ £ £ £
Wages and salaries 14,721,269 - - 14,721,269
National insurance 1,539,881 - - 1,539,881
Pension contributions 2,726,663 - - 2,726,663
Agency costs 22,048 - - 22,048
19,009,861 - - 19,009,861

| |

|

Staff costs include termination payments totalling £135,818 (2024: £8,859) which were funded from general reserves.

The average numberofemployees in theyear by headcount 2025 2024
was: Number Number
Teaching 189 190
Support staffand administrative 261 264
450 454

The earnings of the following number of employees exceeded £60,000:

2025 2024
Number Number
£60,000 - £69,999 29 28
£70,000 - £79,999 11 12
£80,000 - £89,999 10 6
£90,000 - £99,999 3 3
£100,000 -
£109,999		 2 2
£170,000-£179,999 2 1

Forty-six (2024: Forty-seven) of the above employees are accruing benefits under the Scottish Teachers’ Superannuation Pension Scheme.

37

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

for the year ended 31 July 2025

12. Staff costs (continued)

Pension schemes

The Trust contributes to two pension arrangements for its employees.

The total employer contributions paid to the scheme during the financial year were £2,563,108 (2024: £2,316,176). As at 31 July 2025 £nil (2024: £nil) was due to be paid to the scheme.

The Trust also contributes to a defined contribution occupational pension scheme for support staff. The total employer contributions paid to the scheme during the financial year were £457,952 (2024: £410,487). As at 31 July 2025 £354 (2024: £47,281) was due to be paid to the scheme.

38

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

: | | | | : | | |

for the year ended 31 July 2025

13. Tangible fixed assets

Group
Freehold land Furniture Motor
& buildings &equipment vehicles Total
£ £ £ £
Cost
At1August2024
Additions
Disposals		 59,466,947
-
(65,955)		 4,574,942
591,273
(629,225)		 31,302
-
(9,000)		 64,073,191
591,273
(704,180)
At 31 July2025 59,400,992 4,536,990 22,302 63,960,284
Depreciation
At 1 August2024 - 3,343,208 12,347 3,355,555
Charge fortheyear - 489,988 4,460 494,448
Released on disposal - (567,036) (9,000) (576,036)
At 31 July2025 - 3,266,160 7,807 3,273,967
Netbookvalue at31 July2025 59,400,992 1,270,830 14,495 60,686,317
Netbookvalue at31 July2024 59,466,947 1,231,734 18,955 60,717,636
Trust
Freehold land Furniture Motor
& buildings &equipment vehicles Total
£ £ £ £
Cost
At 1 August2024 59,466,947 4,570,485 31,302 64,068,734
Additions - 564,861 - 564,861
Disposals (65,955) (629,225) (9,000) (704,180)
At 31 July 2025 59,400,992 4,506,121 22,302 63,929,415
Depreciation
At 1 August2024 - 3,338,751 12,347 3,351,098
Charge fortheyear - 484,706 4,460 489,166
Released on disposal - (567,036) (9,000) (576,036)
At 31 July 2025 - 3,256,421 7,807 3,264,228
Netbookvalue at31 July2025 59,400,992 1,249,700 14,495 60,665,187
Netbookvalueat31July2024 59,466,947 1,231,734 18,955 60,717,636

Included in the above are leased assets with a cost of £976,409 (2024: £681,193) on which £440,613 (2024: £313,594) of accumulated depreciation has been charged to date. The depreciation charge for the year was £189,810 (2024: £83,169).

39

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

for the year ended 31 July 2025

14. Investments

Group and Trust
£
Marketvalue of listed investments held at 31 July 2024 11,979,900
Additions
Disposals		 3,059,905
(2,122,874)
Unrealised gain 432,218
Marketvalue of listed investments held at 31 July 2025 13,349,149
Cash held as part ofinvestment portfolio (2024: £110,154) 101,284
13,450,433

Unlisted equity investment in subsidiaries

The Trust owns 100% of the 160,000 ordinary shares of £1 each in The Heriot’s Centre for Sport & Exercise Limited, a charitable company registered in Scotland. The company’s registration number is SC364937 (charity registration number SC044874) and the address of its registered office is George Heriot’s School, Lauriston Place, Edinburgh, EH3 9EQ. Its primary purpose is to operate, under a nonexclusive licence from the Trust, The Heriot’s Centre for Sport & Exercise for the provision of physical recreation.

The charitable company’s turnover was £177,012 (2024: £174,195) and expenditure £196,500 (2024: £194,155), resulting in a deficit of £19,488 (2024: deficit of 19,960) for the year. The funds of The Heriot’s Centre for Sport & Exercise Limited at 31 July 2025 were £14,059 (2024: £33,547). The carrying value of the investment in the subsidiary was reduced to nil in the Trust accounts in 2016.

The Trust controls Heriot Enterprises Limited a company limited by guarantee, which is registered in Scotland. The company’s registration number is SC085405 and the address of its registered office is George Heriot’s School, Lauriston Place, Edinburgh, EH3 9EQ. The company promotes the interests and welfare of George Heriot's Trust through the sale of goods and services. The Trust is the sole member of Heriot Enterprises Limited and the majority of board positions in the subsidiary are held by Trust Governors or employees.

The company’s turnover was £70,823 (2024: £49,749) and expenditure £30,636 (2024: £27,132), resulting in a £40,187 profit for the year to 31 July 2025 (2024: profit of £22,617). In addition, a gift aid donation of £22,617 (2024: £25,257) was paid to the Trust. The aggregate capital and reserves of Heriot Enterprises Limited at 31 July 2025 was £40,187 (2024: £22,617).

40

|

Notes to the Financial Statements

|

: : | |

GEORGE HERIOT’S TRUST

for the year ended 31 July 2025

15. Debtors

==> picture [446 x 119] intentionally omitted <==

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Group|Trust| |2025|2024|2025|2024| |£|£|£|£| |Trade|debtors|56,136|34,022|53,615|6,898| |Amounts|due from|subsidiary|undertakings|-|-|73,905|73,131| |Other debtors|60,193|22,641|39,452|22,641| |Prepayments|and|accrued|income|514,590|246,776|508,432|244,378| |630,919|303,439|675,404|347,048|

----- End of picture text -----

The amounts due from subsidiary undertakings are unsecured and repayable on demand.

16. Financial assets held at fair value

==> picture [445 x 65] intentionally omitted <==

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Group|Trust| |2025|2024|2025|2024| |£|£|£|£| |Financial|assets|at|fair value|13,349,149|11,979,900|13,349,149|11,979,900|

----- End of picture text -----

Financial assets at fair value consist of listed investments held at market value.

41

Notes to the Financial Statements

  1. Creditors (within one year)

GEORGE HERIOT’S TRUST

for the year ended 31 July 2025

Creditors (within one year)
Group Trust
2025 2024 2025 2024
£ £ £ £
Bank loans 464,094 425,445 464,094 425,445
Trade creditors 779,052 171,503 756,854 167,916
Amounts due to subsidiary undertakings - - 2,155 32,858
VAT 455,503 3,664 445,652 3,072
Teaching and non-teaching
superannuation 354 47,639 354 47,281
Accruals and deferred income 1,983,204 9,804,527 1,956,327 9,783,391
Hire purchase and lease creditors (Note
19) 153,528 80,765 153,528 80,765
Other creditors 278,615 138,236 278,169 138,413
4,114,350 10,671,779 4,057,133 10,679,141

The amounts due to subsidiary undertakings are unsecured and repayable on demand.

Deferred income (Group and Trust)

School fees received in advance are deferred into the year in which they relate. The following amounts which they relate. The following amounts
are included within accruals and deferred income:
2025 2024
£ £
Balance at
1 August		 8,391,270 639,772
Income received and deferred in year 804,406 8,391,270
Released in year (8,391 ,267) (639,772)
Balance at 31 July 804,409 8,391,270
18. Creditors (due aftermore than oneyear)
Group and Trust 2025 2024
£ £
Bank loans 6,460,507 6,924,146
Hire purchase and lease creditors (Note 19) 152,037 100,294
6,612,544 7,024,440
Maturity ofdebt: 2025 2024
£ £
Bank loans and hire purchase debts
Due within 1 year 617,622 506,210
Due within 1 —2 years 580,899 494 883
Duewithin 2 —5 years 1,648,423 1,583,196
Due after 5 years 4,383,222 4,946,361
7,230,166 7,530,650

42

Notes to the Financial Statements

|

| |

GEORGE HERIOT’S TRUST

for the year ended 31 July 2025

18. Creditors (due after more than one year) (continued)

Bank loans consisted of the following:

Fixed rate loan of £3.75m drawn down during 2016/17, repayable over 25 years in equal monthly instalments. Interest is fixed at 3.79% per annum for the duration of the loan.

Fixed rate loan of £3m drawn down during 2018/19, repayable over 23 years in equal monthly instalments. Interest is fixed at 4.15% per annum for the duration of the loan.

Variable rate loan of £1.82m drawn down during 2023/24, repayable over 4 years in equal monthly instalments. Interest is variable at base rate + 0.96% per annum for the duration of the loan.

The bank loans are unsecured.

|

  1. Obligations under finance leases

The total future minimum finance lease payments at the end of the reporting period were:

Groupand Trust 2025 2024
£ £
Due within 1 year 153,528 80,765
Due within 1 —5 years 152,037 100,294
305,565 181,059

Finance lease creditors are secured over the assets to which they relate.

20. Analysis of net assets by funds

Group
2025 Unrestricted Restricted Endowment Total
£ £ £ £
Fixed assets 60,686,317 - - 60,686,317
Investments 2,486,778 803,183 10,160,472 13,450,433
Net current assets 3,603,683 1,136,972 - 4,740,655
Creditors due aftermorethan oneyear (6,612,544) - - (6,612,544)
60,164,234 1,940,155 10,160,472 72,264,861
2024 Unrestricted Restricted Endowment Total
£ £ £ £
Fixed assets 60,717,636 - - 60,717,636
Investments 1,816,325 761,021 9,512,708 12,090,054
Net current assets 4,121,127 762,258 - 4,883,385
Creditors due aftermore than oneyear (7,024,440) - - (7,024,440)
59,630,648 1,523,279 9,512,708 70,666,635

43

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

for the year ended 31 July 2025

20. Analysis of net assets by funds (continued)

Trust
2025 Unrestricted Restricted Endowment Total
£ £ £ £
Fixed assets 60,665,187 - - 60,665, 187
Investments 2,486,778 803,183 10,160,472 13,450,433
Net current assets 3,570,117 1,136,972 - 4,707,089
Creditors due aftermore than oneyear (6,612,544) - - (6,612,544)
60,109,538 1,940,155 10,160,472 72,210,165
2024 Unrestricted Restricted Endowment Total
£ £ £ £
Fixed assets 60,717,636 - - 60,717,636
Investments 1,816,325 761,021 9,512,708 12,090,054
Net current assets 4,064,962 762,258 - 4,827,220
Creditors due aftermore than oneyear (7,024,440) - - (7,024,440)
59,574,483 1,523,279 9,512,708 70,610,470

44

: : : 3 | | | | | | | |

GEORGE HERIOT’S TRUST

Notes to the Financial Statements for the year ended 31 July 2025

21. Movement in funds

Group At31 July Income Expenditure Gainsi(losses) At 31 July 2025
2025 2024
Unrestricted
General Fund 56,202,240 26,327,418 (25,943,062) 34,631 56,621,227
Designated
James Fraser Brown Bequest Fund 2,130,593 44 689 (44,689) 84,599 2,215,192
PPMP provision 200,000 - - - 200,000
Annual Fund (general) 43,358 30,000 - - 73,358
Further Grassmarket Development 800,000 - - - 800,000
Emergency bursary assistance fund 254,457 - - - 254,457
Total designated funds 3,428,408 74,689 (44,689) 84,599 3,543,007
Total unrestrictedfunds 59,630,648 26,402,107 (25,987,751) 119,230 60,164,234
Restricted
Dr Lindsay Stewart 761,021 18,480 - 23,680 803,181
Sutherland &Young Legacy 36,390 - - - 36,390
Bursaries donation 182,086 88,153 - - 270,239
We are all George Heriot 84,127 50,058 - - 134,185
James Turnbull Jardine (Annual Physics Prize) - 81,866 - - 81,866
Joseph Alexis Turner - 1628 School Building - 25,000 - - 25,000
maintenance
Small funds (individually below£10,000) 77,538 14,931 - - 92,469
Endowment funds — revenue:
Higher Education Bursaries Fund
The Prizes Fund
The Heriot Bursaries Fund		 30,682
-
142,957		 6,743
3,414
50,580		 (8,164)
(3,414)
(16,056)		 -
-
-		 29,261
-
177,481
Lawrence S Miller Memorial Fund 25,724 781 - - 26,505
Robert Donaldson Tait Funds (Foundation) 84,351 82,577 (49,725) - 117,203
Robert Burns Bequest Fund 9,726 494 - - 10,220
Edith Dickson Bequest Fund 12,199 834 - - 13,033
George J Scott Bequest Fund 3,554 132 - - 3,686
Raymond Scott Fund 49,578 45,924 - - 95,502
Small funds 23,346 588 - - 23,934
Total restricted funds 1,523,279 470,555 (77,359) 23,680 1,940,155
Endowment funds
Higher Education Bursaries Fund 331,391 12,000 - 12,765 356,156
The Prizes Fund 189,879 3,488 - 6,463 199,830
The Heriot Bursaries Fund 2,369,183 - - 95,750 2,464,933
Lawrence§ Miller Memorial Fund 25,802 - - 1,478 27,280
Robert Donaldson Tait Funds (Foundation) 4,046,169 263,548 - 156,272 4,465,989
Robert Burns Bequest Fund 23,546 - - 936 24,482
Edith Dickson Bequest Fund 39,704 1,500 - 1,578 42,782
George J Scott Bequest Fund 8,338 - - 250 8,588
Raymond Scott Bequest Fund 2,450,732 - - 86,936 2,537,668
Small funds (individually below£10,000) 27,964 - - 4,800 32,764
Total endowment funds 9,512,708 280,536 - 367,228 10,160,472
Totalfunds 70,666,635 27,153,198 (26,065,110) 510,138 72,264,861

45

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

for the year ended 31 July 2025

21. Movements in funds (continued)

Group
2024 At31 July
2023		 Income Expenditure Gains/
(losses)		 At 31 July
2024
£ £ £ £ £
Unrestricted
General Fund 55,570,787 24,669,782 (24,107,590) 69,261 56,202,240
Designated
James Fraser Brown Bequest Fund 1,961,393 48,259 (48,259) 169,200 2,130,593
PPMP provision 200,000 - - - 200,000
Further Grassmarket Development 800,000 - - - 800,000
Annual Fund (general) 13,358 30,000 - - 43,358
Emergency bursary assistance fund 254,457 - - - 254,457
Total designated funds 3,229,208 78,259 (48,259) 169,200 3,428,408
Total unrestricted funds 58,799,995 24,748,041 (24,155,849) 238,461 59,630,648
Restricted
Dr Lindsay Stewart 703,708 19,172 - 38,141 761,021
Sutherland &Young Legacy 52,788 - (16,398) - 36,390
Bursaries donation 149,117 43,130 (10,161) - 182,086
We are all George Heriot - 84,127 - - 84,127
Foundation Fund - 1,500 (1,500) - -
AV System — Citizenship 28,750 - (28,750) - -
Small funds (individually below £10,000) 26,421 51,117 - - 77,538
Endowment funds — revenue:
Higher Education Bursaries Fund 30,383 6,499 (6,200) - 30,682
The Prizes Fund 100 3,670 (3,770) - -
The Heriot Bursaries Fund 94,589 54,676 (6,308) - 142,957
Lawrence S Miller Memorial Fund 24,881 843 - - 25,724
Robert Donaldson Tait Funds (Foundation) 62,439 68,706 (46,794) - 84,351
Robert Burns Bequest Fund 9,192 534 - - 9,726
Edith Dickson Bequest Fund 11,299 900 - - 12,199
George J Scott Bequest Fund 3,411 143 - - 3,554
Raymond Scott Fund - 49,578 - - 49,578
Small funds 22,710 636 - - 23,346
Total restricted funds 1,219,788 385,231 (119,881) 38,141 1,523,279
Endowment funds
Higher Education Bursaries Fund 273,604 35,000 - 22,787 331,391
The Prizes Fund 176,541 470 - 12,868 189,879
The Heriot Bursaries Fund 2,136,537 40,947 - 191,699 2,369,183
Lawrence S Miller Memorial Fund 22,845 - - 2,957 25,802
Robert Donaldson Tait Funds (Foundation) 3,140,327 664,953 - 240,889 4,046,169
Robert Burns Bequest Fund 21,674 - - 1,872 23,546
Edith Dickson Bequest Fund 36,548 - - 3,156 39,704
George J Scott Bequest Fund 7,838 - - 500 8,338
Raymond Scott Bequest Fund 2,276,906 - - 173,826 2,450,732
Small funds (individually below £10,000) 25,740 - - 2,224 27,964
Total endowment funds 8,118,560 741,370 - 652,778 9,512,708
Totalfunds 68,138,343 25,874,642 (24,275,730) 929,380 70,666,635

46

GEORGE HERIOT’S TRUST

;

| | | | | | |

Notes to the Financial Statements

for the year ended 31 July 2025

21. Movements in funds (continued)

Trust At31 July Income Expenditure Gains/(losses) At31 July
2025 2024 2025
Unrestricted
General Fund 56,146,075 26,274,616 (25,888,791) 34,631 56,566,531
Designated
James Fraser Brown Bequest Fund 2,130,593 44,689 (44,689) 84,599 2,215,192
PPMP provision 200,000 - - - 200,000
Annual Fund (general) 43,358 30,000 - - 73,358
Further Grassmarket Development 800,000 - - - 800,000
Emergency bursary assistance fund 254,457 - - - 254,457
Total designated funds 3,428,408 74,689 (44,689) 84,599 3,543,007
Total unrestricted funds 59,574,483 26,349,305 (25,933,480) 119,230 60,109,538
Restricted
Dr Lindsay Stewart 761,021 18,480 - 23,680 803,181
Sutherland & Young Legacy 36,390 - - - 36,390
Bursaries donation 182,086 88,153 - - 270,239
We are all George Heriot 84,127 50,058 - - 134,185
James Turnbull Jardine (Annual Physics - 81,866 - - 81,866
Prize)
Joseph Alexis Turner - 1628 School - 25,000 - - 25,000
Building maintenance
Small funds (individually below£10,000) 77,538 14,931 - - 92,469
Endowment funds— revenue:
Higher Education Bursaries Fund 30,682 6,743 (8,164) - 29,261
The Prizes Fund - 3,414 (3,414) - -
The Heriot Bursaries Fund 142,957 50,580 (16,056) - 177,481
Lawrence S Miller Memorial Fund 25,724 781 - - 26,505
Robert Donaldson Tait Funds 84,351 82,577 (49,725) - 117,203
(Foundation)
Robert Burns Bequest Fund 9,726 494 - - 10,220
Edith Dickson Bequest Fund 12,199 834 - - 13,033
George J Scott Bequest Fund 3,554 132 - - 3,686
Raymond Scott Fund 49,578 45,924 - - 95,502
Small funds 23,346 588 - - 23,934
Total restricted funds 1,523,279 470,555 (77,359) 23,680 1,940,155
Endowment funds
Higher Education Bursaries Fund 331,391 12,000 - 12,765 356,156
The Prizes Fund 189,879 3,488 - 6,463 199,830
The Heriot Bursaries Fund 2,369,183 - - 95,750 2,464,933
Lawrence S Miller Memorial Fund 25,802 - - 1,478 27,280
Robert Donaldson Tait Funds (Foundation) 4,046,169 263,548 - 156,272 4,465,989
Robert Burns Bequest Fund 23,546 - - 936 24,482
Edith Dickson Bequest Fund 39,704 1,500 - 1,578 42,782
George J Scott Bequest Fund 8,338 - - 250 8,588
Raymond Scott Bequest Fund 2,450,732 - - 86,936 2,537,668
Small funds (individually below £10,000) 27,964 - - 4,800 32,764
Total endowmentfunds 9,512,708 280,536 - 367,228 10,160,472
Totalfunds 70,610,470 27,100,396 (26,010,839) 510,138 72,210,165

47

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

for the year ended 31 July 2025

21. Movements in funds (continued)

Trust
2024 At 31 July
2023		 Income Expenditure Gains/
(losses)		 At31 July
2024
£ £ £ £ £
Unrestricted
General Fund 55,492,023 24,646,240 (24,061,449) 69,261 56,146,075
James Fraser Brown Bequest Fund 1,961,393 48,259 (48,259) 169,200 2,130,593
PPMP provision 200,000 - - - 200,000
Further Grassmarket Development 800,000 - - - 800,000
Annual Fund (general) 13,358 30,000 - - 43,358
Emergency bursary assistance fund 254,457 - - - 254,457
Total designated funds 3,229,208 78,259 (48,259) 169,200 3,428,408
Total unrestricted funds 58,721,231 24,724,499 (24,109,708) 238,461 59,574,483
Restricted
Dr Lindsay Stewart 703,708 19,172 - 38,141 761,021
Sutherland & Young Legacy 52,788 - (16,398) - 36,390
Bursaries donation 149,117 43,130 (10,161) - 182,086
We are all George Heriot - 84,127 - - 84,127
Foundation Fund - 1,500 (1,500) - -
AV System — Citizenship 28,750 - (28,750) - -
Small funds (individually below£10,000) 26,421 51,117 - - 77 538
Endowment funds — revenue:
Higher Education Bursaries Fund 30,383 6,499 (6,200) - 30,682
The Prizes Fund 100 3,670 (3,770) - -
The Heriot Bursaries Fund 94,589 54,676 (6,308) - 142,957
Lawrence S Miller Memorial Fund 24,881 843 - - 25,724
Robert Donaldson Tait Funds (Foundation) 62,439 68,706 (46,794) - 84,351
Robert Burns Bequest Fund 9,192 534 - - 9,726
Edith Dickson Bequest Fund 11,299 900 - - 12,199
George J Scott Bequest Fund 3,411 143 - - 3,554
Raymond Scott Fund - 49,578 - - 49,578
Small funds 22,710 636 - - 23,346
Total restricted funds 1,219,788 385,231 (119,881) 38,141 1,523,279
Endowment funds
Higher Education Bursaries Fund 273,604 35,000 - 22,787 331,391
The Prizes Fund 176,541 470 - 12,868 189,879
The Heriot Bursaries Fund 2,136,537 40,947 - 191,699 2,369,183
Lawrence S Miller Memorial Fund 22,845 - - 2,957 25,802
Robert Donaldson Tait Funds (Foundation) 3,140,327 664,953 - 240,889 4,046,169
Robert Burns Bequest Fund 21,674 - - 1,872 23,546
Edith Dickson Bequest Fund 36,548 - - 3,156 39,704
George J Scott Bequest Fund 7,838 - - 500 8,338
Raymond Scott Bequest Fund 2,276,906 - - 173,826 2,450,732
Small funds (individually below £10,000) 25,740 - - 2,224 27,964
Total endowment funds 8,118,560 741,370 - 652,778 9,512,708
Totalfunds 68,059,579 25,851,100 (24,229,589) 929,380 70,610,470

48

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

for the year ended 31 July 2025

21. Movements in funds (continued)

Designated funds

James Fraser Brown Bequest Fund

The Governors invested the original donation and approved the free income generated to be used to fund the future enhancement of the School.

PPMP provision

The Governors have designated these funds towards the future maintenance of property.

Further Grassmarket Development

The Governors have designated these funds towards the future development of property situated in the Grassmarket, Edinburgh.

Annual Fund (general)

The annual fund receives general donations which have been designated by the Governors for where the School needs it most.

Emergency bursary assistance fund

This fund was originally set up for the monies received from the furlough scheme which the Board designated to support the CEBA scheme. The fund was renamed from the “Covid 19 Furlough” fund during the year ended 31 July 2022 as the fund’s purpose has been widened to include funding future emergency bursary assistance needs arising for reasons other than the pandemic. Any funds that are subsequently unutilised will be subject to Board discussion, with a preference to re-designating them toward supporting parents over the longer term.

Restricted funds

Dr Lindsay Stewart

This legacy will be used toward the refurbishment of the Music Department.

Sutherland & Young Legacy

This legacy will be used towards security and health and safety related purposes.

Bursaries donation These donations will be used to fund two full bursaries in the senior school and now include the Richard Ogorkiewicz bursary.

Foundation Fund Donations received for the Foundationers.

We are all George Heriot A six year campaign looking to raise funds for bursary places at the school.

AV System — Citizenship This is to be used against the costs of a new AV system in the theatre. James Turnbull Jardine Annual Physics Prize

Joseph Alexis Turner 1628 School Building maintenance

49

Notes to the Financial Statements

GEORGE HERIOT’S TRUST

for the year ended 31 July 2025

21. Movements in funds (continued)

Endowment funds

Higher Education Bursaries Fund

The free income will be used towards awarding certain specific bursaries.

The Prizes Fund The free income ofthe fund will be used towards the annual prize giving.

The Heriot Bursaries Fund

The free income will be used to provide the School such number of bursaries as the Governors think fit.

Lawrence S Miller Memorial Fund

The free income will assist with expenses of pupil{s) in need of aid, desiring to participate in educational tours abroad organised by the School, preference being given to Foundationers, other bursary recipients, and Fee-Paying Pupils in that order.

Robert Donaldson Tait Funds

The free income will be used for the benefit of Foundationers in such manner as the Governors in their uncontrolled discretion may think fit.

Robert Burns Bequest Fund

The free income will provide financial assistance for deserving pupils.

Edith Dickson Bequest Fund

The free income will be used to help keep pupils at School who would otherwise have to leave due to a change in their financial circumstances or helping deserving pupils to join the School who would not otherwise be able to do so due to their parents’ financial circumstances.

George J Scott Bequest Fund

The Governing Body shall apply the free income of the George J. Scott’s Bequest Fund in aiding a School Foundationer who shows merit, application and special ability.

Raymond Scott Bequest Fund

The income generated by the bequest should be used wherever the School's need is greatest but with an emphasis on The Foundation and Bursaries. The bequest is not to be spent on general administration.

22. Net cash (outflow)/inflow from operating activities

Group Trust
2025 2024 2025 2024
£ £ £ £
Net income 1,598,226 2,528,292 1,599,695 2,550,891
Investment income (485,159) (441,072) (485,159) (441,672)
Financing costs 314,244 299,987 314,244 299,987
Endowment donations (260,008) (741,370) (260,008) (741,370)
Depreciation charges 494 448 413,575 489,166 413,575
(Gain)/loss on investments (510,138) (929,380) (510,138) (929,380)
Gain on disposal oftangible assets (10,245) - (10,245) -
Decrease/(increase) in stock 3,611 3,480 4,420 10,577
(Increase)/decrease in debtors (327,480) 174,297 (328,356) 149,728
(Decrease)/increase in creditors (6,668,841) 7,386,665 (6,733,420) 7,408,978
Netcash (used in)/provided byoperating
activities		 (5,851,342) 8,694,474 (5,919,801) 8,721,314

50

|

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

for the year ended 31 July 2025

23. Reconciliation of net debt

Group At 31 July Cash Non-cash At 31 July
2024 flows movement 2025
£ £ £ £
Cash and cash equivalents 15,311,026 (7,032,898) - 8,278,128
Bank loans falling due within oneyear (425,445) - (38,649) (464,094)
Bank loans falling due aftermore than one
year (6,924,146) 424,990 38,649 (6,460,507)
Hire purchase obligations falling duewithin
one year (80,765) - (72,763) (153,528)
Hire purchase obligations falling due after
more than one year (100,294) (124,506) 72,763 (152,037)
7,780,376 (6,732,414) - 1,047,962
Trust At 31 July Cash Non-cash At 31 July
2024 flows movement 2025
£ £ £ £
Cash and cash equivalents 15,237,328 (7,074,945) . 8,162,383
Bank loans falling due within oneyear (425,445) - (38,649) (464,094)
Bank loans falling due aftermore than one
year (6,924,146) 424,990 38,649 (6,460,507)
Hire purchase obligations falling duewithin
one year (80,765) - (72,763) (153,528)
Hire purchase obligations falling due after
more than one year (100,294) (124,506) 72,763 (152,037)
7,706,678 (6,774,461) - 932,217

24, Cash and cash equivalents

Group Group Trust
2025 2024 2025 2024
£ £ £ £
Cash in hand and at bank 8,176,844 15,200,872 8,061,099 15,127,174
Cash held within investment portfolio 101,284 110,154 101,284 110,154
Cash andcashequivalents 8,278,128 15,311,026 8,162,383 15,237,328

51

GEORGE HERIOT’S TRUST

Notes to the Financial Statements

for the year ended 31 July 2025

25. Agency related income and expenditure

During the year income and expenditure relating to school events and school trips were identified as falling under an agency relationship. These amounts, detailed below, were collected from parents and paid over to third party providers. In accordance with best practice, these amounts have been excluded from the income and expenditure of the Trust.

Group and Trust 2025 2024
£ £
School events 194,322 167,452
School trips 1,539,913 1,319,706
1,734,235 1,487,158

26. Related parties

During the year the wholly-owned subsidiary Heriot Enterprises Limited charged the Trust a donation of £22,617 (2024: £25,257), being a distribution out of the subsidiary’s profits made in the prior year. At 31 July 2025 £53,164 (2024: £42,587) was owing to the Trust.

During the year the wholly-controlled subsidiary The Heriot’s Centre for Sport and Exercise Limited charged the Trust £109,527 (2024: £109,527) for premises hire. The Trust charged the subsidiary £61,431 (2024: £62,552) in license and service fees. At 31 July 2025 £20,741 (2024: £30,544) was owing to the Trust and £2,155 (2024: £32,858) was owed by the Trust.

The transactions and balances with the subsidiaries are eliminated in the preparation of the group financial statements.

No Governors, nor any of their connected persons, have been remunerated or reimbursed expenses in either the current or previous financial year. No donations were received by the Trust from Governors for the year (2024: £nil).

Total employee benefits, including employer national insurance contributions, of key management personnel for the year were £828,911 (2024: £709,617).

The following Governors were relatives of pupils in the School during the financial year ended 31 July 2025:

Mr Andrew McGeough Mrs Nicola McLaughlan Mr Ross McAuley Mrs Louise Gibson Mr Brian Sherriff

No financial benefit is received by any of the Governors listed above.

52

|

Notes to the Financial Statements

|

for the year ended 31 July 2025

|

| | |

GEORGE HERIOT’S TRUST

27. Operating leases

The payments due under non-cancellable operating leases are as follows:

Group and Trust
2025
Motor		 2024
Motor
Vehicles Vehicles
Less than one year 32,281 14,057
Between one and two years 28,142 14,057
Between twoand five years 32,961 29,570
93,384 57,684

Amounts payable under non-cancellable operating leases recognised in the statement of financial activities during the current year totalled £27,037 (2024: £6,266).

28. Legal form

George Heriot’s Trust is a charity, registered in the Scottish Charity Register number $C011463, and administered under the George Heriot’s Trust Scheme 2017. This new Scheme was approved by the Office of the Scottish Charity Regulator on 15 February 2017, in terms of the Charity and Trustee Investment (Scotland) Act 2005 and adopted by the Trust on 3 March 2017. The Trust owns and operates George Heriot’s School.

53