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← Alexander Darling Silk Mercer Fund

2024-12-31-accounts

EDINBURGH MERCHANT COMPANY

SUNDRY TRUSTS

namely

THE ALEXANDER DARLING SILK MERCER’S FUND (Charity No. SC036724) THE SANSON AWARDS (Charity No. SC036726) THE MERCHANT COMPANY CHARITABLE TRUST (Charity No. SC022283) THE JAMES SCOTT LAW CHARITABLE FUND –BEQUEST (Charity No. SC008878) THE ELIZABETH C B ROSS BEQUEST (Charity No. SC024382) THE MISS MARY DUNCAN BEQUEST (Charity No. SC012960) THE DR THOMAS LYON BEQUEST (Charity No. SC010284) THE BANK OF SCOTLAND TRAVEL SCHOLARSHIP (Charity No. SC022088)

Annual Report and Financial Statements

For the Year Ended 31 July 2024

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

Annual Report and Financial Statements

For the Year Ended 31 July 2024

Contents Pages
Report of the Trustees 1 – 5
Independent Auditor’s Report to the Trustees 6 - 8
Statements of Financial Activities 9 - 10
Balance Sheets 11 – 12
Statement of Cashflows 13 - 14
Notes to the Financial Statements 15 - 19

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

Reference and administrative details

For the Year Ended 31 July 2024

Trustees

Chief Executive Officer and Secretary

Acting Finance Director

Principal Office The Merchants’ Hall 22 Hanover Street Edinburgh EH2 2EP

Auditors

Henderson Loggie LLP Level 5 The Stamp Office 10-14 Waterloo Place Edinburgh EH1 3EG

Investment Managers Cazenove Capital Management Limited 24-25 Charlotte Square Edinburgh EH2 4ET

Bankers

The Royal Bank of Scotland plc 36 St Andrew Square Edinburgh EH2 2AD

Solicitors

Morton Fraser Quartermile Two 2 Lister Square Edinburgh EH3 9GL

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

The Trustees’ Annual Report

For the Year Ended 31 July 2024

Structure, Governance and Management

The Trustees – The Master’s Court of the Royal Company of Merchants of the City of Edinburgh – ex officio

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The Trustees ( ex officio ) of the Funds on which the following report is given are the Master’s Court of the Royal Company of Merchants of the City of Edinburgh, a Court of volunteers elected by the Members of the Company. The Trusts are therefore connected with the Royal Company of Merchants. On appointment, Trustees are provided with full information regarding the history and objectives of the Trusts and encouraged to develop the knowledge of the duties and responsibilities expected of them.

The administration of the Trust is carried out by the Secretary and Chamberlain (to June 2024), the Director of Finance (from June 2024), the Almoner and the team of the Royal Company of Merchants. The Trusts are all registered as charities.

The Statements of Financial Activities (incorporating Income and Expenditure accounts) and Balance Sheets form part of this report and it is confirmed that they comply with current statutory requirements and the requirements of the Statement of Recommended Practice.

Trustees’ Responsibilities

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in Scotland requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.

1

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

The Trustees’ Annual Report

For the Year Ended 31 July 2024 (continued)

Trustees’ Responsibilities (continued)

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in Scotland requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.

In preparing these financial statements, the trustees are required to:

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

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Objectives, Activities and Performance of the Funds

The Alexander Darling Silk Mercer’s Fund

The income of the Fund, after meeting expenses of management, is applied by the Master’s Court in the provision of pensions, known as Alexander Darling Silk Mercer’s Fund Pensions. Women qualified to receive a pension are “55 years of age and over, of good character, preferably unmarried or widowed and being;

Women who have been wholly connected in the manufacture or sale of garments for men’s wear are not qualified to receive an ex gratia pension. Preference is given to women bearing the surname Darling, Millar, or Scott and to women born in the town of Lanark. All those so named or so born are given equal preference. The Master’s Court shall be the sole judge of who are deemed gentlewomen for the purpose of the Order Act.

The current value of the pension is £330 per half year plus a Christmas bonus of £50. At 31 July 2024 there were 9 ex gratia pensioners (2023 – 9).

2

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

The Trustees’ Annual Report

For the Year Ended 31 July 2024 (continued)

The Objectives, Activities and Performance of the Funds (continued)

The Fund shares in the costs incurred by the Merchant Company in securing the services of an Almoner/visitor with the Merchant Company Endowments Trust. The Fund’s share of these costs was £nil (2023 - nil). The Almoner is charged with visiting Darling pensioners and potential pensioners and the Master’s Court regularly review benefits granted to qualifying individuals.

The Sanson Awards

The income from the fund is to be used for awards at George Watson’s College, Edinburgh, to pupils in the fourth, fifth and sixth forms and pupils who have just left school who are undertaking what are generally described as adventure or service projects. The purpose includes support to organisations sponsoring projects in which pupils are taking part. Assistance is also given to secondary pupils in order to complete the last three years of their education at George Watson’s College and in particular those who have to live in the school’s boarding house.

During the year 2 awards were made ( 2023: Nil ) totalling £1,500 in respect of applications endorsed by the School.

The Merchant Company Charitable Trust

The purposes of the Trust are:

To encourage and provide assistance to any project, schemes or undertakings, which the Trustees will consider to be of benefit to the public or sectors of the community in the Edinburgh area.

To promote and encourage the advancement of education of children and young persons up to the age of 30 by the provision of facilities, projects, schemes, courses of instruction and training and other arrangements, which in the opinion of the Trustees will increase and expand the knowledge and awareness of such children and young persons in the working of industry, business, commerce and related matters in Scotland and elsewhere throughout the world.

To provide assistance of an educational, social, welfare or any kind to any such children or young persons whom the Trustees consider to be disadvantaged by reason of ill health, financial or family need or in any other way whatsoever.

To provide assistance to any other established charity, which is considered by the Trustees to have purposes similar to any of the foregoing.

To provide grants, bursaries, prizes, travel scholarship, study or research grants, books, tools, instruments, kits or any other equipment and generally any other assistance and encouragement, financially or otherwise towards the fulfilment of the foregoing objects.

During the year under review the Trustees focused on grants and donations to enable students to pursue and complete studies at degree awarding institutions in Edinburgh and two awards (2023:1) were made totalling £1,500 (2023: £500) . Additionally, the Trust awarded a total of £2,025 to the schools in relation to the Annual Portraiture Competition comprised of a prize fund of £525 and £1,500 for Workshop Events.

The James Scott Law Charitable Fund (Bequest)

The income of the Fund, after meeting expenses of management, is applied by the Master’s Court in the provision of donation, grants or bursaries for such of the charitable purposes of and connected with the Royal Company of Merchants as the Trustees may determine. During the year one donation and four (2023:5) awards were made totalling £1,350 (2023: £4,400) .

3

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

The Trustees’ Annual Report

For the Year Ended 31 July 2024 (continued)

The Objectives, Activities and Performance of the Funds (continued)

The Elizabeth C B Ross Bequest

At a meeting of the Trustees held on 5 June 2002, it was resolved that the funds administered under the Elizabeth CB Ross Bequest be utilised to assist a female person residing in a suitable care home or nursing home who is unable to remain in her own home through age, illness or disability, but with a preference being given to those who have attended a Merchant Company School or a particular connection with the Royal Company of Merchants of the City of Edinburgh. In the year under review the purposes of the Trust were unchanged. During the year £nil of awards were made ( 2023: Nil ).

The Miss Mary Duncan Bequest

The income of the Fund, after meeting expenses of management, is applied by the Master’s Court in the provision of grants to Merchant Company members who are found in reduced circumstances. The objects of the bequest are unchanged. During the year and previous year, no applications were received from any members who satisfied the criteria set by the Trustees .

The Dr Thomas Lyon Bequest

The terms of the original bequest as varied by Lord Abernethy in 2003 permit applications to be considered for orphans and the children of single parents for financial support for their education. During the year £nil awards were made (2023: Nil) .

The Bank of Scotland Travel Scholarship

The purpose of the Trust is to promote and advance education and learning by the provision of a scholarship award to be known as “The Bank of Scotland Tercentenary Travel Study Scholarship”, payable out of the income of the Trust Fund, to a pupil or former pupil, of George Watson’s College in Edinburgh, who is in either of years S5 or S6 or their equivalents in the year in which the award is made and who in the opinion of the School’s Principal, has shown distinction in his or her academic studies and who will use that award either:-

During the year no applications were received (2023: Nil) .

Financial Review

The income of the Trusts is derived from the invested funds and, in the case of the Merchant Company Charitable Trust, occasional fundraising events. The Trustees were satisfied with the level of income. The Trustees consider the performance of the Trusts to be satisfactory.

Investment Policy

It is the Trustee’s policy to invest in such a way that both investment growth and regular investment income is available to meet the needs of the Trust. This has been achieved by keeping the portfolio under regular review.

Investment Performance

The investments achieved a level of capital growth and income generation that the Trustees considered to be in accordance with investment policy and satisfactory when compared with standard benchmarks.

4

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

The Trustees’ Annual Report

For the Year Ended 31 July 2024 (continued)

Risk Management

The Trustees recognise their responsibility to regularly assess main risks and aim to mitigate exposure to these risks.

The key risk is the loss of income from investments. This is mitigated by diversification of the investment portfolio and could be resolved by the Trustees deciding to reduce regular commitments.

Reserves Policy

It is the Trustees’ policy to maintain a level of endowed reserves that will provide sufficient income to cover the Trusts’ regular commitments. Trustees have the authority to vary these regular commitments if required. Reserves in excess of commitments are available for disbursement. Overall, the Sundry Trusts have unrestricted reserves of £576,169 and designated reserves of £3,194,752. The Trustees have recognised the limitations and restrictions created in the deeds of the Sundry Trusts are a barrier to the distribution of funds and the effectiveness of the Sundry Trusts. The trustees therefore proposed to OSCR that the Sundry Trusts be consolidated into the Merchant Company Charitable Trust (MCCT) and the purposes be aligned to the objectives of MCCT. OSCR has approved this change which has allowed consolidation of the Sundry Trusts into MCCT effective from 1 August 2024. For further information about the Trusts’ plans, please see Note 1b in the financial statements.

Statement of disclosure to auditor

So far as each person who was a trustee at the date of approving this report is aware, there is no relevant audit information of which the Trust’s auditor is unaware. Additionally, the trustees individually have taken all the necessary steps that they ought to have taken as trustees in order to make themselves aware of all relevant audit information and to establish that the Trust’s auditor is aware of that information.

On behalf of the Trusts

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5

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

Independent Auditor’s Report to the Trustees

For the Year Ended 31 July 2024

Opinion

We have audited the financial statements of The Edinburgh Merchant Company Sundry Trusts (the ‘charities’) for the year ended 31 July 2024 which comprise the Statements of Financial Activities, Balance Sheets, Statement of Cashflows, and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis of 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 responsibilities for the audit of the financial statements section of our report. We are independent of the charities in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

We draw attention to Note 1b to the financial statements which explains the trustees intend to consolidate the individual trusts, with all assets and liabilities transferred to The Royal Company of Merchants of the City of Edinburgh Charitable Trust, SC051300, leading to the winding up of the individual trusts. The trustees therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern as described in Note 1b. Our opinion is not modified in respect of this matter.

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 trustees 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.

6

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS Independent Auditor’s Report to the Trustees

For the Year Ended 31 July 2024

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 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 2, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charities’ 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 trustees either intend to liquidate the charities 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 regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

As part of our planning process:

7

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

Independent Auditor’s Report to the Trustees

For the Year Ended 31 July 2024

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

Owing to the inherent limitations of an audit, there is unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees.

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

Use of our report

This report is made solely to the charities’ trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charities’ trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charities and the charities' trustees as a body, for our audit work, for this report, or for the opinions we have formed.

…………………………………………

Henderson Loggie LLP

Chartered Accountants Statutory Auditor

Henderson Loggie LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006.

Level 5 The Stamp Office 10-14 Waterloo Place Edinburgh EH1 3EG

……………………….2025

8

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

Statement of Financial Activities For the year ended 31 July 2024

The Alexander Darling Silk The Merchant Company The James Scott Law The James Scott Law
Mercer’s Fund The Sanson Awards Charitable Trust Charitable Fund
2024 2023 2024 2023 2024 2023 2024 2023
Note £ £ £ £ £ £ £ £
Income
Income from investments 43,039 34,079 3,753 4,763 8,077 7,075 13,540 17,341
___ ___ _ _ _ _ _ _
Total income and endowments 43.039 34,079 3,753 4,763 8,077 7,075 13,540 17,341
___ ___ _ _ _ _ _ _
Expenditure
Expenditure on raising funds (11,602) (11,364) (130) (130) (2,372) (2,341) (478) (478)
Expenditure on charitable activities 3 (26,746) (23,743) (2,638) (958) (10,438) (5,354) (5,286) (7,415)
___ ___ _ _ _ _ _ _
Total expenditure (38,348) (35,107) (2,768) (1,088) (12,810) (7,695) (5,764) (7,893)
____ ____ ____ ____ ____ ____ __ __
Net income/(expenditure) before gains/(losses) 4,691 (1,028) 985 3,675 (4,733) (620) 7,776 9,448
Gains/(losses) on investments 152,390 (33,877) 5,922 (4,528) 30,442 (5,666) 21,690 (16,587)
____ ____ ____ ____ ____ ____ __ __
Net income/(expenditure) 157,081 (34,905) 6,907 (853) 25,709 (6,286) 29,466 (7,139)
Total funds brought forward 1,903,357 1,938,262 120,741 121,594 388,504 394,790 426,330 433,469
____ ____ ____ ____ ____ ____ __ __
Total funds carried forward 2,060,438 1,903,357 127,648 120,741 414,213 388,504 455,796 426,330

9

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS Statement of Financial Activities (incorporating the Income and Expenditure Account) For the Year Ended 31 July 2024 (continued)

The Elizabeth CB The Elizabeth CB The Miss Mary Duncan The Dr Thomas Lyon The Dr Thomas Lyon The Bank of Scotland Travel
Ross Bequest Bequest Bequest Scholarship Total of the Sundry Trusts
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Note £ £ £ £ £ £ £ £ £ £
Income
Income from investments 5,009 6,409 8,973 7,449 10,056 12,775 2,886 1,204 95,333 91,095
_ _ _ _ _ _ _ _ _ _
Total income and endowments 5,009 6,409 8,973 7,449 10,056 12,775 2,886 1,204 95,333 91,095
_ _ _ _ _ _ _ _ _ _
Expenditure
Expenditure on raising funds (175) (176) (2,536) (2,504) (349) (350) - - (17,642) (17,343)
Expenditure on charitable
activities		 3 (2,153) (1,732) (3,913) (2,472) (2,820) (2,057) (109) - (54,103) (43,731)
_ _ _ ______ _ _ ______ ______ __ __
Total expenditure (2,328) (1,908) (6,449) (4,976) (3,169) (2,407) (109) - (71,745) (61,074)
_ _ _ ______ _ _ ______ ______ __ __
Net income/(expenditure) before
gains/(losses)		 2,681 4,501 2,524 2,473 6,887 10,368 2,777 1,204 23,588 30,021
Gains/(losses) on investments 8,005 (6,121) 32,701 (7,417) 15,923 (12,176) - - 267,073 (86,372)
_ _ _ _ _ _ ______ ______ __ __
Net income/(expenditure) 10,686 (1,620) 35,225 (4,944) 22,810 (1,808) 2,777 1,204 290,661 (56,351)
Total funds brought forward 158,387 160,007 427,017 431,961 319,120 320,928 27,486 26,282 3,770,942
 3,827,293
_ _ _ _ _ _ _ _ _ _
Total funds carried forward 169,073 158,387 462,242 427,017 341,930 319,120 30,263 27,486 4,061,603 3,770,942
====== ====== ====== ===== ====== ======
======		 ====== ====== ======

The charity has no recognised gains or losses other than the results for the year as set out above. All of activities of the charity are classed as continuing.

10

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

Balance Sheets Balance Sheets
As at 31 July 2024
The Alexander Darling Silk The Merchant Company The James Scott Law
Mercer’s Fund The Sanson Awards Charitable Trust Charitable Fund
2024 2023 2024 2023 2024 2023 2024 2023
Notes £ £ £ £ £ £ £ £
Fixed assets
Investments 4 2,021,133 1,880,881 111,856 106,064 404,577 376,646 409,849 388,636
__ __ ______ ______ _ ______ _ ______
Current assets
Bank account 37,899 24,063 16,888 14,060 12,968 12,145 49,529 35,434
Accrued income 6,951 4,088 - 1,175 32 363 - 4,305
__ __ ______ ______ _ ______ _ ______
44,850 28,151 16,888 15,235 13,000 12,508 49,529 39,739
Current liabilities
Creditors and accruals (5,545) (5,675) (1,096) (558) (3,364) (650) (3,582) (2,045)
__ __ ______ ______ _ ______ _ ______
Net current assets 39,305 22,476 15,792 14,677 9,636 11,858 45,947 37,694
__ __ ______ ______ _ ______ _ ______
Net assets 2,060,438 1,903,357 127,648 120,741 414,213 388,504 455,796 426,330
======= ======= ===== ===== ====== ====== ====== ======
Revenue reserve
As at 31 July 2023 (97,615) (96,587) 22,215 18,540 74,552 75,172 291,139 281,691
Surplus/(deficit) for year 4,691 (1,028) 985 3,675 (4,733) (620) 7,776 9,448
__ __ ______ ______ _ ______ _ ______
As at 31 July 2024 (92,924) (97,615) 23,200 22,215 69,819 74,552 298,915 291,139
Endowed Reserve-Designated
As at 31 July 2023 2,000,972 2,034,849 98,526 103,054 313,952 319,618 135,191 151,778
Gains/(losses) on investments 152,390 (33,877) 5,922 (4,528) 30,442 (5,666) 21,690 (16,587)
__ __ ______ ______ _ ______ _ ______
As at 31 July 2024 2,153,362 2,000,972 104,448 98,526 344,394 313,952 156,881 135,191
__ __ ______ ______ _ ______ _ ______
Total funds 2,060,438 1,903,357 127,648 120,741 414,213 388,504 455,796 426,330
====== ======= ===== ===== ====== ====== ====== ======

11

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS Balance Sheets as at 31 July 2024 (continued)

Notes The Elizabeth CB Ross The Elizabeth CB Ross The Miss Mary Duncan The Miss Mary Duncan The Dr Thomas Lyon The Dr Thomas Lyon The Bank of Scotland The Bank of Scotland Total of the Sundry Trusts Total of the Sundry Trusts
Bequest Bequest Bequest Travel Scholarship
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
£ £ £ £ £ £ £ £ £ £
Fixed assets
Investments 4 151,124 143,294 433,499 403,475 299,992 284,417 30,342 27,455 3,862,372 3,610,868
______ ______ ______ ______ ______ ______ ______ ______ ______ ______
Current assets
Bank account 19,046 14,248 30,576 23,815 44,465 33,049 - 31 211,371 156,845
Accrued income - 1,589 31 378 - 3,160 - - 7,014 15,058
______ __ __ __ ______ ______ ______ ______ __ __
19,046 15,837 30,607 24,193 44,465 36,209 - 31 218,385 171,903
______ ______ ______ ______ ______ ______ ______ ______ ______ ______
Current liabilities
Creditors and accruals (1,097) (744) (1,864) (651) (2,527) (1,506) (79) - (19,154) (11,829)
______ _ ______ ______ ______ ______ ______ ______ ______ ______
Net current assets 17,949 15,093 28,743 23,542 41,938 34,703 (79) 31 199,231 160,074
______ ______ ______ ______ ______ ______ ______ ______ __ __
Net assets 169,073 158,387 462,242 427,017 341,930 319,120 30,263 27,486 4,061,603 3,770,942
====== ====== ====== ====== ====== ====== ====== ====== ======== ========
Revenue reserve
As at 1 August 2023 34,417 29,916 104,637 102,164 141,215 130,847 5,630 4,426 576,190 546,169
Surplus/(deficit) for year 2,681 4,501 2,524 2,473 6,887 10,368 2,777 1,204 23,588 30,021
______ ______ ______ ______ ______ ______ ______ ______ ______ ______
As at 31 July 2024 37,098 34,418 107,161 104,637 148,102 141,215 8,407 5,630 599,778 576,190
Endowed Reserve – Designated
As at 31 July 2023 123,970 130,091 322,380 329,797 177,905 190,081 21,856 21,856 3,194,752 3,281,124
Gains/(losses) on investments 8,005 (6,121) 32,701 (7,417) 15,923 (12,176) - - 267,073 (86,372)
______ ______ ______ ______ ______ ______ ______ ______ ______ ______
As at 31 July 2024 131,975 123,970 355,081 322,380 193,828 177,905 21,856 21,856 3,461,825 3,194,752
______ ______ ______ ______ ______ ______ ______ ______ __ __
Total funds 169,073 158,387 462,242 427,017 341,930 319,120 30,263 27,486 4,061,603 3,770,942
====== ====== ====== ====== ====== ====== ====== ===== ======== ========

Approved and authorised for issue on behalf of the Trustees on 22[nd] April 2025

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12

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

Statement of Cashflows Statement of Cashflows
For the year ended 31 July 2024
The Alexander Darling Silk The Sanson Awards The Merchant Company The James Scott Law
Mercer’s Fund Charitable Trust Charitable Fund
2024 2023 2024 2023 2024 2023 2024 2023
£ £ £ £ £ £ £ £
Cashflows from operating activities
Net income/(expenditure) 157,081 (34,905) 6,907 (853) 25,709 (6,286) 29,466 (7,139)
(Gains)/losses on investment assets (152,390) 33,877 (5,922) 4,528 (30,442) 5,666 (21,690) 16,587
(Increase)/decrease in debtors (2,863) (3,853) 1,175 (10) 331 (316) 4,305 (40)
Increases/(decrease) in creditors (130) 4,083 538 (312) 2,714 (3,782) 1,537 (794)
Investment income (43,039) (34,079) (3,753) (4,763) (8,077) (7,075) (13,540) (17,341)
__ __ __ ______ __ ______ __ ______
Cash provided by/(used in) operating activities (41,341) (34,877) (1,055) (1,410) (9,765) (11,793) 78 (8,727)
__ __ __ ______ __ ______ __ ______
Cashflows from investing activities
Investment income 43,039 34,079 3,753 4,763 8,077 7,075 13,540 17,341
Payments to acquire investments (602,356) (1,042,309) - - (121,680) (192,885) - -
Receipts from sale of investments 470,437 1,110,867 - - 96,169 209,529 - -
Other movements in investments 2,155 84 130 - 433 18 - -
Movement in cash held for re-investment 141,902 (54,692) - 131 27,589 (13,812) 477 478
__ __ __ __ __ ______ __ ______
Cash provided by/(used in) investing activities 55,177 48,029 3,883 4,894 10,588 9,925 14,017 17,819
__ __ __ ______ __ ______ __ ______
Increase/(decrease) in cash for the year 13,836 13,152 2,828 3,484 823 (1,868) 14,095 9,092
Cash at cash equivalents at start of year 24,063 10,911 14,060 10,576 12,145 14,013 35,434 26,342
__ __ __ ______ __ ______ __ ______
Cash and cash equivalents at end of year 37,899 24,063 16,888 14,060 12,968 12,145 49,529 35,434
======= ======= ======= ===== ======= ====== ======= ======
Cash and cash equivalents comprise:
Cash at bank 37,899 24,063 16,888 14,060 12,968 12,145 49,529 35,434
======= ======= ======= ===== ======= ====== ====== ======

13

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

Statement of Cashflows As at 31 July 2024

The Bank of The Bank of Total for the Sundry
Elizabeth C B Ross The Miss Mary The Dr Thomas Lyon Scotland Trusts
Bequest Duncan Bequest Bequest Scholarship
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
£ £ £ £ £ £ £ £ £ £
Cashflows from operating activities
Net income/(expenditure) 10,686 (1,620) 35,225 (4,944) 22,810 (1,808) 2,777 1,204 290,661 (56,351)
(Gains)/losses on investment assets (8,005) 6,121 (32,701) 7,417 (15,923) 12,176 - - (267,073) 86,372
(Increase)/decrease in debtors 1,589 (15) 347 (330) 3,160 (29) - - 8,044 (4,593)
Increases/(decrease) in creditors 353 (812) 1,213 (1,590) 1,021 (376) 79 - 7,325 (3,583)
Investment income (5,009) (6,409) (8,973) (7,449) (10,056) (12,775) (2,886) (1,204) (95,333) (91,095)
______ __ ______ ______ ______ ______ ______ ______ ______ ______
Cash provided by/(used in) operating (56,376) (69,250)
activities (386) (2,735) (4,889) (6,896) 1,012 (2,812) (30) -
______ __ ______ ______ ______ ______ ______ ______ ______ ______
Cashflows from investing activities
Investment income 5,009 6,409 8,973 7,449 10,056 12,775 2,886 1,204 95,333 91,095
Payments to acquire investments - - (129,004) (223,032) - - (2,886) (1,204) (855,926) (1,459,430)
Receipts from sale of investments - - 101,363 238,346 - - - - 667,969 1,558,742
Other movements in investments - - 458 18 348 - (1) - 3,523 120
Movement in cash held for re-investment 175 177 29,860 (12,271) - 350 - - 200,003 (79,639)
__ __ ______ ______ ______ ______ ______ ______ ______ ______
Cash provided by/(used in) investing activities 5,184 6,586 11,650 10,510 10,404 13,125 (1) - 110,902 110,888
______ __ ______ ______ ______ ______ ______ ______ ______ ______
Increase/(decrease) in cash for the year 4,798 3,851 6,761 3,614 11,416 10,313 (31) - 54,526 41,638
Cash at cash equivalents at start of year 14,248 10,397 23,815 20,201 33,049 22,736 31 31 156,845 115,207
______ __ ______ ______ ______ ______ ______ ______ ______ ______
Cash and cash equivalents at end of year 19,046 14,248 30,576 23,815 44,465 33,049 - 31 211,371 156,845
====== ======= ======= ===== ======= ====== ====== ====== ======= ======
Cash and cash equivalents comprise:
Cash at bank 19,046 14,248 30,576 23,815 44,465 33,049 - 31 211,371 156,845
====== ======= ======= ===== ======= ====== ====== ====== ======= ======

14

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

Notes to the Financial Statements

For the year ended 31 July 2024

1. Accounting Policies

A summary of the principal accounting policies, all of which have been applied consistently throughout the year and the preceding year is set out below.

The financial statements have been prepared under the historical cost accounting rules, and in accordance with applicable accounting standards, as modified by the revaluation of UK listed investments. The charity is a Public Benefit Entity and the financial statements comply with the charity’s Constitution, the Statement of Recommended Practice (SORP) FRS 102 ‘Accounting and Reporting by Charities (revised 2015), the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).

b) Going concern

As detailed in the Trustees’ report, the individual trusts are being consolidated, with all assets and liabilities transferred to The Royal Company of Merchants of the City of Edinburgh Charitable Trust, SC051300, leading to the winding up of the individual trusts. Consequently, these financial statements have been prepared on a basis other than going concern. No adjustments were necessary as a result of this approach.

c) Income

Income is recognised when the charity has entitlement to the funds, when it is probable that the income will be received, and the amount can be measured reliably. Donations and similar incoming resources are recognised when the charity is entitled to it, usually on receipt. Income from investments is accounted for when receivable.

d) Basis of Valuation of investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value at the balance sheet date by reference to the Stock Exchange mid prices. Realised and unrealised gains and losses are charged or credited in the statement of financial activities. The Trust has no complex financial instruments. The main form of financial risk faced by the Trust is that of volatility in the investment markets due to wider economic conditions. Investment income is re-invested. Investment income is recognised when receipt is receivable.

e) Debtors

Other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

f) Cash

Cash at bank and in hand and short term highly liquid investments with a short term maturity date of three months or less from the date of acquisition or opening of the deposit or similar account.

g) Creditors and provisions

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

h) Funds

Within each of the trusts, the Trustees have designated funds called the “endowed reserve” that is to provide sufficient income to cover each Trust’s regular commitments. Sums in excess of this are held in the revenue reserve and are available for disbursement.

i) Expenditure

Expenditure on raising funds relates to investment management fees only.

15

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

Notes to the Financial Statements

For the year ended 31 July 2024

1. Accounting Policies (continued)

j) Transfers between reserves

In cases where a reduction in investment income leads to revenue losses in individual funds, transfers may be made from the Endowed Reserves to the Revenue Reserves. This ensures that the affected funds do not result in a negative balance.

2. Net income/(expenditure)

et income/(expenditure)
2024 2023
is stated after charging: £ £
Auditors’ remuneration 7,200 6,000
Preparation of statutory accounts 3,300 -
====== ======

There are no employees.

3. Charitable activities

Annuities
Payable
£		 Grants and
Allowances
£		 Total
direct
Costs
£		 Support
Costs
£		 Auditors
Remuneration
£		 Total
charitable
costs
£
Alexander Darling Silk Mercer’s Fund 6,770 - 6.770 15,427 4,549 26,746
Sanson Awards - 1,500 1,500 600 538 2,638
Merchant Company Charitable Trust - 3,525 3.525 5,700 1,213 10,438
James Scott Law Charitable Fund - 1,350 1,350 2,400 1,536 5,286
Elizabeth CB Ross Bequest - - - 1,800 353 2,153
Miss Mary Duncan Bequest - - - 2,700 1,213 3,913
Dr Thomas Lyon Bequest - - - 1,800 1,020 2,820
Bank of Scotland Travel Scholarship - - - 31 78 109
--------- --------- -------- -------- -------- ---------
-
2024 Total costs 6,770 6,375 13,145 30,458 10,500 54,103
===== ===== ==== ===== ===== =====
2023 Total costs 16,810 270 17,080 24,181 7,380 44,014
====== ====== ==== ===== ====== ======

Support costs includes management fees payable to the Royal Company of Merchants of the City of Edinburgh (note 6).

16

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

Notes to the Financial Statements (continued)

For the year ended 31 July 2024

4. Listed investments

sted investments
2024 2023
£ £
Alexander Darling Silk Mercer’s Fund 2,021,133 1,880,881
Sanson Awards 111,856 106,064
Merchant Company Charitable Trust 404,577 376,646
James Scott Law Charitable Fund 409,849 388,636
Elizabeth C B Ross Bequest 151,124 143,294
Miss Mary Duncan Bequest 433,499 403,475
Dr Thomas Lyon Bequest 299,992 284,417
Bank of Scotland Travel Scholarship 30,342 27,455
------------- -------------
Total Investments of the Sundry Trusts 3,862,372 3,610,868
======== ========
Investments Cash 2024 2023
Investments held on recognised stock exchanges £ £ £ £
Summary of Transactions
Market value at beginning of year 3,361,469 249,402 3,610,871 3,717,033
Purchases at cost 853,039 (853,039) - -
Disposal proceeds (667,970) 667,970 - -
Unrealised gain/(loss) on revaluation 253,899 - 253,899 (52,758)
Realised gain/(loss) on disposal 13,014 - 13,014 (32,411)
Equalisations - 3,047 3,047 (1,203)
Cash Paid (out)/in - (96,359) (96,359) (95,181)
Management fees - (17,641) (17,641) (17,342)
Dividends received not yet remitted - 88,924 88,924 92,730
Credit interest - 6,616 6,616 -
------------ ------------ ------------ ------------
Market value at end of year 3,813,451 48,920 3,862,372 3,610,868
======= ======= ======= =======

All investments are carried at their fair value. Investments in equities and bonds are traded in quoted public markets. Holdings in multi-asset funds are at bid price. The basis of fair value for quoted investments is equivalent to market value, using the bid price. Asset sales and purchases are recognised at the date of trade at their transaction value.

The main risk to the trusts from financial instruments lies in the combination of uncertain investment markets and volatility to growth and incomes. The Trusts’ investment strategy is to maximise income and ensure capital growth of funds in excess of inflation each year and as such the portfolio is invested in medium to high risk stocks. Liquidity risk is anticipated to be low as all assets are traded in markets with good liquidity and high trading volumes and this is expected to continue. The Trusts manages these investment risks by retaining expert advisors to manage its investment portfolio. The investment policy is reviewed annually to ensure the protection of the real value of the portfolio in the longer term.

17

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

Notes to the Financial Statements (continued)

For the year ended 31 July 2024

5. Financial Instruments

2024

024
Alexander Darling Sanson Merchant Company James Scott Law Elizabeth CB Miss Mary Dr Thomas Bank of Scotland Total
Silk Mercer’s Fund Awards Charitable Trust Charitable Fund Ross Bequest Duncan Bequest Lyon Bequest Travel Scholarship £
£ £ £ £ £ £ £ £
Carrying amount of financial assets
Measured at fair value
through profit and loss		 2,021,133 111,856 404,577 409,849 151,124 433,499 299,992 30,342 3,862,372
====== ====== ====== ====== ====== ====== ====== ====== ======
023
Alexander Darling Silk Sanson Merchant Company James Scott Law Elizabeth CB Miss Mary Dr Thomas Bank of Scotland Total
Mercer’s Fund Awards Charitable Trust Charitable Fund Ross Bequest Duncan Bequest Lyon Bequest Travel Scholarship £
£ £ £ £ £ £ £ £
Carrying amount of financial assets
Measured at fair value
through profit and loss		 1,880,881 106,064 376,646 388,636 143,294 403,475 284,417 27,455 3,610,898
====== ====== ====== ====== ====== ====== ====== ====== ======

2023

Financial assets measured at fair value through the statement of financial activities consist of listed investments.

18

EDINBURGH MERCHANT COMPANY SUNDRY TRUSTS

Notes to the Financial Statements (continued)

For the year ended 31 July 2024

6. Related party transactions

The Master’s Court of the Royal Company of Merchants of the City of Edinburgh, the Trustees ex officio, receive no remuneration or reimbursement of expenses. Administration and accounting services are provided by the Merchant Company. In addition, insurance costs are recharged from the Merchant Company. The cost of these services this year was £30,000 (2023: £24,181) of which £1,500 (2023: £nil) remains outstanding at year end.

7. Ultimate controlling party

The Trusts are constituted by their trust deeds and are controlled, in accordance with the provisions of Part IV of the Edinburgh Merchant Company Order Confirmation Act 1996, by their elected trustees.

8. Events after the reporting date

As disclosed in Note 1b, the individual trusts are undergoing consolidation, with the transfer of their assets and liabilities to The Royal Company of Merchants of the City of Edinburgh Charitable Trust (SC051300). This reorganisation was completed on 1 August 2024.

19