The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their annual report and financial statements for the year ended 31 March 2025.
The previous accounting period was shortened to be for the eight months months from 1 July 2023 to 31 March 2024 following the sale of the school on 28 March 2024. All activities related to the school were discontinued on this date.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Since the company qualifies as small under section 383 of the Companies Act 2006, the strategic report required of medium and large companies, is not required.
The charity's principal objective for which the company was established was to educate children in the City of Derby, South Derbyshire and Burton-upon-Trent. Prior to its sale on 28 March 2024, this was achieved through the operation of Derby Grammar School.
Following the sale of the school the principal objective of the Rykneld Hall Education Trust ("the Trust") has been revised and is now to advance education by providing financial support in the form of bursaries to pupils attending Derby Grammar School using residual funds from the sale of the school as well as other income that may become due under the terms of the sale. The Trust aims to widen access to high-quality education by enabling children from financially disadvantaged backgrounds to benefit from the academic and extracurricular opportunities offered by the school.
The charity recognised net operating costs of £4,154 during the year.
Reserves Policy
As at 31 March 2025 the charity had free reserves amounting to £24,308. Given the expected net operational expenditure of approximately £5,000 per annum, and with no further income expected, the charitable company has sufficient reserves to operate for a period of at least four years.
The charity is a company limited by guarantee.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The company's Articles of Association allow for Trustees to serve for a three year term. Trustees must retire at the annual general meeting following their completion of three years' service but may stand for re-election.
The Board has the power at any time, and from time to time, to appoint any person to be a Trustee, either to fill a casual vacancy or as an addition to the existing Trustees, subject to the total number of Trustees at any time not exceeding sixteen. Any Trustee appointed holds office only until the next following annual general meeting, and then becomes eligible for re-election.
New Trustees are generally found from the contacts and networking of existing Trustees to provide for the school a wide range of skills.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
Related parties
Derby Grammar School Foundation (DGSF) (Charity Number 1078193) is a connected charity within the meaning of the Statement of Recommended Practice, by virtue of the majority of its Trustees also being Trustees of this company.
The trustees' report was approved by the Board of Trustees.
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Rykneld Hall Education Trust Limited (formerly known as Derby Grammar School Trust Limited) for the year ended 31 March 2025, which comprise the statement of financial activities and the related notes from the charity’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made to the charity's trustees as a body. Our work has been undertaken solely to prepare for your approval the financial statements of Rykneld Hall Education Trust Limited (formerly known as Derby Grammar School Trust Limited) and state those matters that we have agreed to state to the charity's trustees, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Rykneld Hall Education Trust Limited (formerly known as Derby Grammar School Trust Limited) and the charity's trustees as a body, for our work or for this report.
It is your duty to ensure that Rykneld Hall Education Trust Limited (formerly known as Derby Grammar School Trust Limited) has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and deficit of Rykneld Hall Education Trust Limited (formerly known as Derby Grammar School Trust Limited). You consider that Rykneld Hall Education Trust Limited (formerly known as Derby Grammar School Trust Limited) is exempt from the statutory audit requirement for the year, and is not required to obtain an independent examiner's report.
We have not been instructed to carry out an audit or a review of the financial statements of Rykneld Hall Education Trust Limited (formerly known as Derby Grammar School Trust Limited). For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Investments
The statement of financial activities includes all gains and losses recognised in the year. All prior period income and expenditure derived from discontinuued activities.
Rykneld Hall Education Trust Limited (formerly known as Derby Grammar School Trust Limited) is a private company limited by guarantee incorporated in England and Wales. The registered office is Rykneld Hall, Rykneld Road, Littleover, Derby, Derbyshire, DE23 4BX.
The name of the company was changed from Derby Grammar School Trust Limited to Rykneld Hall Education Trust Limited on 28 March 2024.
The prior accounting period was shortened to be for the eight months 1 August 2023 to 31 March 2024 to reflect the period the charity operated Derby Grammar School. The school was sold on 28 March 2024. The amounts presented as comparative values are therefore not comparable.
The financial statements have been prepared in accordance with the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets which are included at market value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Government and other grants are recognised in the Statement of Financial Activities in the period to which they relate when there is a reasonable assurance that the charity will comply with conditions attaching to them and the grants will be received.
School fees receivable represent invoiced fees for education supplied and are recognised in the year to which they relate. School fees recognised are reported net of any scholarships, bursaries or other allowances granted by the charity.
Income from other trading activities, including non-ancillary trading income is recognised as it is earned from any services supplied.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reasonably.
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants and bursaries, all of which are made from unrestricted funds, are treated as a deduction from fee amounts billed. More details with regards to the charity's bursary programme can be found in the Trustees' report.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives, or if held under a finance lease, over the lease term, whichever is the shorter, on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred. Surpluses and deficiencies arising on sale are reflected in the year of disposal.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The charity is exempt from corporation tax on its charitable activities, but can reclaim income tax on certain voluntary income.
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 charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The charity operated a defined contribution scheme for teaching staff.
The charity also operated a money purchase scheme for non teaching staff.
Contributions to all schemes are charged in the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating result.
Concessionary loans
Concessionary loans are initially measured at the amount received or paid.
In subsequent years the carrying amount of concessionary loans will be adjusted to reflect any accrued interest payable or receivable, where such interest is charged.
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered.
Liabilities
Trade and other creditors are recognised at the settlement amount due after any trade discount received.
Gain on sale of the business
On 28 March 2024, the school was sold to Inspired Learning Group (UK) Limited (ILG) on the agreed terms. As part of the sale, the rights on stock and to receive the financial assets, along with obligations to pay the financial liabilities, were transferred to ILG. Other material income for the period of £nil (2024 - £501,053) represents the net gain on these transfers and is a non-cash consideration.
Support
Education
Welfare
Premises
Support
Finance
Hire of plant and machinery
Rates and refuse collection
Insurance
Utilities
Telephone
Postage and stationery
Marketing
Sundry expenses
Motor expenses
Repairs and maintenance
Legal and professional fees
Bank charges
Other school operating costs
Bad debts
Insurance
The average monthly number of employees during the year was:
The charity operated a defined contribution scheme for teaching staff. The cost for the year represents the charity's contributions to this scheme of £nil (2024 - £130,958).
The school also administered an auto enrolment scheme, The People's Pension, for its non-teaching staff. The cost for the year represents the charity's contributions to the auto enrolment scheme of £nil (2024 - £5,336).
Pension contributions made in respect of higher paid employees totalled £nil (2024 - £4,680).
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
To enable fulfilment of future obligations, per the terms of sale, the charitable company has the right to request additional funds, to a maximum amount of £25,000 (2024 - £25,000), from the purchaser of the school, Inspired Learning Group (UK) Limited.
The charity operated defined contribution pension schemes for all qualifying employees. The assets of the schemes are held separately from those of the charity in independently administered funds.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
During the year the charity entered into the following transactions with related parties:
The affiliated charitable organisation transferred £nil (2024 - £50,149) to the charity by way of donation to provide financial support.
As at the balance sheet date £nil (2024 - £1,219) was payable to the affiliated charitable organisation.