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).
The School’s objects are specifically restricted to the following:
To advance for the public benefit education in the United Kingdom, in particular but without prejudice to the generality of the foregoing by establishing, maintaining, carrying on, managing and developing a Catholic School designated as such which shall offer a broad and balanced curriculum for pupils across the age range from nursery to 11 years old and shall be conducted in accordance with the principles, practices and tenets of the Catholic Church both generally and in particular in relation to arranging for religious education and daily acts of worship and to support the development of the whole person;
To provide extracurricular activities for the wellbeing and development and support of the pupils attending the School; and
The provision of facilities for recreation or other leisure time occupation which are ancillary to the purposes that are set out for the benefit of individuals who have need for such facilities by reason of their youth, age, infirmity or disablement, financial hardship or social economic circumstances or for the public at large in the interests of social welfare and with the object of improving the condition of the life of said inhabitants.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
This financial year has seen the School continue its successful upward trajectory in transitioning from a through-School (the proprietor of which went into liquidation in March 2021) into a preparatory only school (with what was a brand new proprietor and Governing Board appointed in 2020, but the current composition of which has now been established for two consistent years), and the ongoing rebranding to Charlton House Independent School.
The school year 23/24 began with 33 pupils (a modest, but still positive, increase of 10% on the 22/23 cohort) and has continued to grow to (currently) circa 43 pupils. This great work continued throughout the academic year 23/24 and into 24/25, with the staff-body remaining static (at 14) and the Governing Board also encouragingly growing (particularly when volunteer governors are at a premium).
The School was being geared up to a primary school for a potential of 105 preparatory pupils across its 7 years; Year R to Year 6 (limiting each class to no more than 15 pupils). In 2023/24 the Board agreed to investigate, plan for and offer a kindergarten for 3 to 4 year olds, which has proven highly successful and has added to the Number on Roll (NOR). The School now has capacity for 128 pupils from kindergarten up to Yr. 6, with 7 pupils in kindergarten as at 31 August 2025.
Whilst some pupils did organically leave at the end of the 23/24 school year, these have all been replaced by new pupils following an ongoing marketing strategy to enlarge and enrich the School family which has been key to the increase in pupil numbers for academic year 23/24 into 24/25, which has witnessed NOR rise to almost 43 pupils.
In total, since September 2023, (as well as replacing outgoing pupils in Yr. 6) the School has witnessed a 30% increase to the NOR in September 2023. It is the School's expectation, based on current trends and trajectories, to attain 50 NOR by September 2026.
Naturally, pupils have transitioned from our Yr. 6 to secondary Schools (such as King Edward VI secondary School (independent) and other high achieving maintained and independent secondary Schools) as Charlton House has no secondary provision; for now. The fact that our pupils are being accepted by high-performing secondary Schools is a testament to the level of education and pastoral care that they receive at Charlton House.
The loss of pupils is inevitable for all primary schools with no secondary department or through-school option, however specific focus has been on continuing to attract new pupils in the Early Years Foundation Stage (EYFS) to ensure a consistent through-flow of pupils in lower years throughout the School. Our ongoing marketing plan has worked very successfully, following extensive training of staff and members of the Governing Board, who work in synergy to deliver these results. The School continues to engage with an external marketing agency to maximise potential. Year on year, the amount of investment in marketing has increased and this has paid dividends. It is hoped that the year-on-year growth margin continues to increase, despite difficult and challenging socio-economic circumstances (addressed below).
Whilst challenges still remain (as they do for all independent and maintained schools at every level), the aims of a fully aligned leadership team are building a foundation on which it is hoped a successful school can continue to develop and grow in order to preserve the past century that a school has been present on site. The Board and staff bodies are confident that provided the School continues on its current trajectory, this is achievable.
Independent Schools Inspectorate (“ISI”) inspection – 4 December 2024
On 4 December 2024 the School was visited by two inspectors from the ISI (and quality assured by a monitor) for a two and a half day on-site inspection. The inspection included;
Observation of lessons, some in conjunction with school leaders;
Observation of registration periods and assemblies;
Observation of extra-curricular activities;
Meetings with the Chair and Governors;
Meetings with the Headteacher, School-leaders, Managers and members of staff;
Discussions with pupils;
Visits to the learning support area and facilities for physical education;
Scrutiny of pupils’ work;
Scrutiny of a range of policies, documentation and records provided by the School; and
The inspection team considered the views of pupils, members of staff and parents who responded to the ISI’s pre-inspection surveys.
A full copy of the final inspection report can be accessed using the following link:
https://www.isi.net/institutions/school/charlton-house-school-9549
We are proud to report that the ISI found that the School met all Independent School Standards with zero standards unmet. Standards relating to leadership, management & governance; quality of education, training & recreation; pupils’ physical, mental health & emotional wellbeing; pupils’ social and economic education and contribution to society; and finally standards relating to safeguarding were all met.
The summary of the ISI’s findings included;
“Leaders are effective in supporting school development through a rigorous process of self-evaluation. They promote the school’s aims effectively and make its values central to the pupils’ educational journeys. Pupils’ welfare is consistently championed and supported by leaders’ clear understanding of pupils’ individual needs.”
“Governors support and challenge leaders in the development of their strategic goals and in the implementation of the school improvement plan. Governors follow a systematic approach to ensuring that the standards are met. They regularly visit the school to evaluate whether policy is consistently reflected in practice. Governors’ regular discussion with pupils and parents enable them to gain a detailed understanding of the strengths of the education provided and areas for further development.”
“Pupils, including those who have special educational needs and/or disabilities (SEND), make good progress due to the effective implementation of the broad and balanced curriculum that is followed throughout the school. Gaps in pupils’ knowledge, skills and understanding are swiftly identified and addressed as a result of regular and effective assessment.”
“Rigorous and effective teaching engages pupils’ interest and contributes towards their good progress and positive outcomes. Pupils benefit from teachers’ expertise and enthusiasm for their subjects. Teachers’ highly individualised knowledge of pupils helps to meet their needs effectively."
“Pupils enjoy high levels of emotional wellbeing due to the effective implementation of the school’s ‘heart values’. Leaders, managers, staff and parents work effectively together to promote the pupils’ welfare. Pupils’ personal development is placed at the heart of school life. Diversity and difference are both respected and celebrated within the school community. Pupils feel happy and secure at the school. Pupils, parents and staff regularly liken being at the school to being part of a large and loving family.”
“Pupils are well prepared for their next steps in education. They develop an appropriate understanding of life in British society and the organisations and individuals that contribute towards it. They undertake roles of responsibility at school and engage in activities to support the wider community."
“Risks to pupils’ welfare are robustly mitigated. Leaders, Governors and staff keep up to date with current safeguarding and health & safety guidance. Leaders oversee the rigorous implementation of policies. Recruitment processes are carefully managed and all the necessary checks are completed before anyone is allowed to work at, or with, the school.”
The recent extremely positive ISI report replaces the previous OFSTED grading of ‘inadequate’ inherited when re-opening the school in 2020 and more accurately reflects both the progress made by the School since 2020 and also the current status of the School in terms of its offering to pupils. It is unfortunate that the OFSTED grading and report remains easily accessible on the internet and that OFSTED do nothing to amend this data, particularly in light of its re-grading system that has since been implemented. This will inevitably be off-putting for prospective parents who stumble across the out of date OFSTED report prior to the long-since updated ISI report. It is expected that the ISI report will further attract new pupils who may have been deterred by the School’s previous OFSTED grading.
The School continues to be backed financially by the Brothers of Christian Instruction (the original founders of the originating School, St. Mary’s College and the former Charlton House back in 1922), albeit to a significantly lesser and lesser degree. The Brothers have committed in the medium-term whilst the School positions itself into a sound financial footing, to fund the financial shortfall and to continue to provide capital investment. A 5-year business plan has been presented to the Brothers of Christian Instruction, together with extensive development and investment into parts of the campus over the next 12 to 18 months.
Being a ‘not-for-profit’ charitable organisation, any income generated over and above the ongoing overheads is reinvested entirely into resources used by the pupils, or for the pupils. The Brothers of Christian Instruction also contribute to the ongoing maintenance, repairs and capital investment into the School site, of which they are the landlord(s). Such investment this financial year has included fencing; electric entrance gates fixed and maintained; repairs to the White House.
Incoming resources for 24/25 totalled £651,984 during the period and total resources expended was £651,645, leaving the School with an overall surplus of £339 as at 31 August 2025.
Ultimately the pupil numbers need to continue to grow in order to deliver a fully self-sufficient/sustaining school model and the School is making good progress against its target, despite the difficult ‘cost of living crisis’, unprecedented increases in utility costs; increases in staff wages (above that of the maintained sector) and against competition from other independent schools in close proximity.
The current Government’s decisions have further placed increased pressure on independent schools with charitable status (and those without). The initial threat and final implementation of the Government's decision to force independent schools to charge 20% VAT on school fees has inevitably had an impact on pupil recruitment and retention, particularly in the current socio-economic conditions. As a result, the School's annual fees increased by 20% (VAT) for parents in January 2025, from £8,331.50 to £9,997.80 (including VAT). This was not a step we, as a Board, wanted to take. However, given the financial positioning of the School, we were left with no alternative whatsoever.
Furthermore, the Government’s decision to remove charitable schools’ 80% reduction in business rates has impacted those concerned significantly. The cost of business rates from April 2025 has increased from £587 to £2,984 per month (a pro-rata annual increase of £28,764), for no ascertainable benefit to any school. Increases in National Insurance and the minimum wage will also have an impact in due course and we are witnessing independent schools closing across the country as a result of these decisions
The true extent of these decisions will likely be borne out in next year's financial statements. What is universally recognised amongst all independent schools with charitable status is that these decisions are impacting pupil attraction and retention and they were implemented at a point when such schools were making progress and following an admirable upward trajectory. We suspect on next year's returns, these figures will inevitably be impacted as potential (and current) parents' elasticity reaches its maximum stretch.
It will be the continuation of the School’s growth which ultimately determines the success of the School. Whilst the Brothers of Christian Instruction continue to support the School, we consider the School a going concern on a path to restoring its position in the local community and as a prominent and leading primary School in the city of Southampton and wider county of Hampshire.
A core element of our charitable status is the ability to offer bursaries to families who meet the financial criteria. In academic year 23/24, the school offered £27,621.20 in bursary reductions to families of the School and offered £18,524.45 in bursaries in academic year 24/25.
In terms of raising funds for external charities the School has held various and regular events and committed to school-wide initiatives, including the local community, and raised vital funds for local, national and international charities such as Jeans for Genes, MacMillan Cancer Trust, St Josephs and CAFOD, raising £444.34 and additional non-monetary donations across the School.
The children and the School have continued to work on the biodiversity of the grounds and we applied for, and were accepted, for a 'Learning through Landscapes' grant (one of only 36 schools in the country). This has given us access to a year's worth of training for staff to help improve our woodland and funding towards resources to enable the woodland to be accessed and used, not just by the School but also by the schools and nurseries in the local community. We currently allow one nursery free of charge usage of our woodland and one Special Educational Needs school hires it two mornings a week. We are in the process of setting up a Forest School for toddlers and home-education groups in the local community, which we hope to have running in the Autumn term. We are also looking to hire to a local state school one morning a week.
The School has increased its efforts to recycle this year, setting up a school recycling centre, which includes recycling pens, batteries, glue sticks and clothing.
The School continues to work towards the Eco-Schools Green Flag award, which we hope to achieve within the next academic year. We have also erected swarm traps in the woodland to help with the conservation of bees. In the next academic year, we intend to have our own beehive.
This academic year we have had a member of staff complete their Mental Health First Aid qualification and all of the children took part in a 'Kindness Crew' session, which focusses on the power of kindness on mental health.
We have increased our community links over the past year, especially with the Diocese. Staff have regularly visited other Catholic schools and we have held a community Mass and retreat on our site for local Catholic schools, which was very well attended. Staff have attended a staff retreat provided by a local Diocesan school and we have made strong links with St Edmunds church; our Key Stage 2 children visited the church and Father Michael regularly attends our events and leads our services.
We continue to open our holiday club, fairs and free stay and play sessions to the local community, which are always well attended.
Considered globally, the School is moving in the right direction and constantly deploying new, creative and both profitable and charitable initiatives in order to continue developing. To what extent the Government's changes in legislation referred to above impacts upon not only our School, but the wider independent/charitable sector remains to be seen.
No reserves are held by the School. It was a start-up in 2020 with no funding. Its reserves are being provided by the Brothers of Christian Instruction, who have agreed to commit to funding any shortfall in the medium-term and whilst growth is evidenced. The Brothers have committed to funding the budgeted shortfall between projected fees and actual expenditure, with annual reviews of the financial position to ensure the Board and the Senior Leadership Team are committed to monitoring the deployment of funds received, which has been achieved successfully since opening in September 2020. As the reserves are provided by the Brothers of Christian Instruction, this currently negates the requirements. However, it is planned to create, as the School grows, reserves which will facilitate the School becoming self-sufficient. The surplus funds are as a result of a donations made from the Brothers to support the School.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks as at 31 August 2025.
The charity is a company limited by guarantee, governed by its memorandum and articles of association.
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:
All current Trustees follow a rigorous vetting process of new trustees and appoint by majority position. There is a standard application pack, which is completed by all new trustees and vetted by all current trustees.
None of the trustees has any beneficial interest in the company.
The Trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Charlton House School Limited (the charity) for the year ended 31 August 2025.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2022 (the 2022 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2022 Act.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2022 Act. I confirm that I am qualified to undertake the examination because I am a member of ACA, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the Companies Act 2006.
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Sarah Corbett FCA
HJS Accountants Limited
Tagus House
9 Ocean Way
Southampton
SO14 3TJ
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Charlton House School Limited is a private company limited by guarantee with no share capital incorporated in England and Wales. The registered office is 55 - 57 Midanbury Lane, Bitterne Park, Southampton, Hampshire, SO18 4DJ.
The financial statements have been prepared in accordance with the charity's governing document, 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 £.
The financial statements have been prepared under the historical cost convention. 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.
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
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.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the school has provided the goods or services.
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, 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.
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.
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 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.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Deferred income is included in the financial statements as follows:
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.
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.
There were no disclosable related party transactions during the year.