The trustees present their annual report and financial statements for the year ended 31 August 2025.
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).
Objects
The Charity's objects ("the Objects") are to advance education by such means as the trustees may consider appropriate including by means of establishing and operating any educational establishment or establishments in Malvern Hills and in such other parts of the United Kingdom or the world as the trustees may from time to time think fit and to fulfil such other purposes which are exclusively charitable according to the law of England and Wales and are connected with the charitable work of the charity.
Objectives: We are an independent special school working with young people who have struggled in mainstream schools, or for whom mainstream education is not suitable.
Building self worth, confidence, recognising their unique gifts and being proud of what they do, are all as important as obtaining qualifications. We focus on the social, practical and personal skills that will help them to achieve their potential and move forward into successful adulthood, living fulfilling lives and contributing to their communities.
We offer a programme of core subjects, such as maths, english, science, physical education and RSHE alongside a range of practical and therapeutic subjects, such as art, music, ICT, horticulture, animal care, cooking, construction, humanities, mindfulness, counselling and other therapies. Our sixth form centre is much more focused on careers guidance, vocational training, preparation for adulthood and independent living skills alongside continued academic and personal progression.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. The trustees abide by the updated Memorandum and Articles of Association and Instrument of Governance.
The day to day responsibilities and targets of the board of trustees is linked very closely to the oversight and monitoring of the school improvement plan and any projects and/or issues raised by the Headteacher or CEO during governing board meetings. The trustees are primarily responsible for holding the school accountable for achieving their targets, maintaining the finances, managing pupil numbers, adhering to relevant legislations and responsibilities, continued professional development of staff, staff retention and recruitment and accurate reporting and record keeping.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The school has continued to develop over the last year. Student numbers have been stable and the school remains at capacity at the main site and close to capacity at the Sixth Form, with a total of 51 pupils across the 2 sites.
The school has continued to broaden the range of opportunities available to students and the key achievements for the 24/25 academic year included:
● Additional support services being implemented across the whole school,
● The expansion of the Sixth Form centre,
● Continued development of the pastoral support on offer,
● A comprehensive training (CPL) programme throughout the year for all staff,
● Increased revenue,
● 88% of young people leaving in July 2025 made a positive progression into work or further training/education, which is in keeping with previous years.
Recruitment
Governors are recruited on a needs basis, with careful analysis of areas of expertise that will add value to the existing governing board. Annually, the governing board evaluate their work and identify clear goals for improvement and action. Prospective governors will undergo all safer recruitment checks including interviews before being appointed and after selection they will be subject to the usual DBS screening process. All new governors undertake training in the role of a governor and trustee, including safeguarding and complete a thorough induction.
Remuneration
Remuneration of the Headteacher and CEO is agreed by the governing board and will be reviewed in line with the financial position of the business, comparative rates of pay across the industry and taking into consideration staff salaries and roles/responsibilities across the wider business. Annual inflationary pay increases are allocated to all staff salaries and approved by the trustees.
Risks
The principal identified risk to the business at present remains the funding stream and associated pupil numbers. The business relies largely on one main Local Authority and if pupil referrals were to reduce this would have a negative impact upon the performance of the business. However, the high school site is over subscribed and has remained so for a number of years and as such is operating at full capacity with no forecasted change. The sixth form centre was not at full capacity in 24/25 but still performed profitably. Operating with suitable cash reserves supports the ability to tolerate some fluctuation in pupil numbers.
The trustees monitor the budget every half term and review this before making any decisions regarding future staffing and additional interventions.
Volunteers
The high school site uses a small number of volunteers. These volunteers are subjected to the same level of DBS checks prior to their placement and are allocated responsibilities suitable to their abilities. Largely, the roles of volunteers form part of the school’s plan to support the wider community and offer meaningful opportunities to SEN/disabled adults.
Feedback
Parent and pupil feedback is frequently positive, within the last 12 months we have received comments such as:
“To be honest, he’s a changed person since he’s been there, and we’re really proud of him!” “I do genuinely believe [the staff] all have some amazing qualities whether it’s your humour, knowledge, or practical skills or even all 3, regardless you are all very kind people and that’s what matters most especially to me”
The school will regularly provide feedback to pupils and parents/carers and also create opportunities for feedback to be received, whether this be formally through Ofsted Parent View, or informally via telephone call or email.
Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
Financial review
Bridge School Malvern Ltd's total income for the year was £2,524,495 (2024: £2,158,435) and total expenditure was £2,468,518 (2024: £2,146,977). Achieving a surplus for the year of £55,977 (2024: £11,458). At the year end total funds were £840,022 (2024: £784,045) of which £551,080 (2024: £nil) were designated, of which £474,080 is represented by tangible assets and £77,000 is a capital projects fund. Free reserves were £288,942 (2024: £354,255).
Reserves policy
The Governors aim to maintain free cash reserves in unrestricted funds at a level that equates to 20% of annual charitable expenditure. The Governors consider that this level will provide sufficient funds to respond to short-term changes in funding or loss of students. If it is required that free cash reserves are used, the CEO will inform the governors giving the reason and likely duration.
In addition, a Designated Building Investment Fund may be established as required for future investment in infrastructure, particularly to replace facilities that are lost through an inability to renew existing building/site leases. Any unexpended sums, after the cash reserve has been met, at the request of the trustees will be allocated to this fund. FSC may from time to time direct that a specific source of revenue be set aside for reserves. Permission from the FSC will be required before any funds from the Designated Building Investment Fund are used.
The charity is a company limited by guarantee and was set up by a Trust deed.
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 post of Chair of Governors is held by Sarah Slater.
The management of the Company is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.
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.
In accordance with the company's articles, a resolution proposing that Kendall Wadley LLP be reappointed as auditor of the company will be put at a General Meeting.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Bridge School Malvern Ltd for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law 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, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate 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 Companies Act 2006. 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.
Opinion
We have audited the financial statements of Bridge School Malvern Ltd (the ‘charity’) for the year ended 31 August 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows 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 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 charity 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.
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going 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 trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The 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.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
- an understanding of the risk assessment process (including the assessment of the risk of fraud) adopted by the Trustee Board is obtained and their attitude to risk ascertained.
- an assessment of the susceptibility to material mis-statement of the financial statements as a result of management over-ride or fraud is made.
- it is ensured that the engagement team have, collectively, the appropriate competence, capabilities and skills to be involved in the assignment, are fully briefed and understand the risks specific to the charity.
- processes to test the outcomes of our assessment include, a review of Trustee Board minutes, analytical review, the relevance and accuracy of significant accounting estimates, substantive testing of significant transactions, work to identify unusual or unexpected accounting entries including the testing of journal entries, information disclosed in the financial statements is traced to supporting documentation. In all instances it is acknowledged that material mis-statements that arise from fraud may involve deliberate concealment or collusion and are, therefore, by their very nature harder to detect than those arising from error.
- an understanding of the legal and regulatory framework as applicable to the charity is obtained together with knowledge of the procedures put in place by the charity in order to comply with the same.
- it is established if there have been any instances of non-compliance with applicable laws and regulations, where there are such breaches, a full understanding, including gathering of relevant documentation appertaining to the event is obtained and assessed.
It should be noted that Auditing standards limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standard for Auditors, including "APB Ethical Standard - Provisions Available for Small Entities (Revised)", in the circumstances set out in note 23 to the financial statements.
A further description of our responsibilities is available 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 charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Kendall Wadley LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
Investments
Bridge School Malvern Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Unit 2, Hanley Workshops, Hanley Swan, Worcester, Worcestershire, WR8 0DX.
The financial statements have been prepared in accordance 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)". The charity is a Public Benefit Entity as defined by FRS 102.
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 £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold land to 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 and that there are no material uncertainties about its ability to continue. 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.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
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.
Services provided under contract is income received from Local Authorities and is recognised on an accruals basis.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
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 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.
At each reporting end date, the charity 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).
Cash and cash equivalents include cash in hand and deposits held at call with banks.
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.
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. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
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 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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Significant estimates
As detailed in note 12, the valuation of the freehold land held, with the carrying amount of £72,000.
Charitable Expenditure
Charitable Expenditure
Staff training
Teaching expenses
Consumables
Rent, rates and utilities
Examination fees
Vehicles expenses/staff mileage
Animal care
Computer costs
Audit and accountancy fees
Legal and professional charges
Sundry expenses
Bank charges
Insurance
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year, nor were reimbursed expenses.
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
During the financial year a transfer of £551,080 was made from the unrestricted fund to the designated fund.
This represented the creation of a Designated Fixed Asset Fund to reflect the net book value of the tangible fixed assets held by the charity and a Capital Projects Fund to be used for future capital expenditure.
Freehold land with a carrying amount of £72,000 was revalued at October 2021 by David E J Prosser, FRICS, independent valuers not connected with the charity on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
The trustees believe the valuation is still true and fair in the current financial year.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The operating leases represent leases of the Former Print Building, Units 2 and 3 Hanley Workshop and Unit B at Sixways from third parties. The leases are negotiated over terms of 1-10 years with phased increases over the lease term. All leases include a provision for five-yearly upward rent reviews according to prevailing market conditions.
During the year income of £62,573 (2024: £54,172) was received from Bridge The Gap Malvern Limited in relation to the use of Bridge School Malvern Ltd's staff and services. Bridge The Gap Malvern Limited is a company in which Neil Hornby, CEO of Bridge School Malvern Ltd, is a director and shareholder.
During the year purchases of £40,100 (2024: £38,980) were made from Bridge The Gap Malvern Limited for use of their services.
At the year end £Nil (2024: £Nil) is included within debtors receivable within one year.
During the year purchases of £320 (2024: £840) were made from St Andrews Church for the hire of meeting rooms. St Andrews Church is a charity in which Helen Attree, former Director and Trustee of Bridge School Malvern Ltd, is an employee. Furthermore, purchase of £1,793 were made to Annia Hornby which related to teacher cover costs and other purchases. Annia is the daughter of Neil Hornby, CEO.
At the year end £NIL (2024: £320) is owed to St Andrews Church, and is included within creditors due within one year.
The charity had no material debt during the year.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
These are unrestricted funds which are material to the charity's activities.
A Designated Fixed Asset Fund was created to reflect the net book value of the tangible fixed assets held by the charity in order to make the free reserves position more transparent.
A Capital Projects Fund was created to be used for future capital expenditure.
We have taken the exemption permitted by "APB Ethical Standard - Provisions Available for Small Entities (Revised)" to mitigate the management threat in relation to the non-audit service of preparing the statutory accounts.