Estate development
A major landmark was achieved in September with Winchester City Council’s grant of planning permission for the construction of two new Boarding Houses — the school’s first for over a century. The school has built a strong partnership with the local council in recent years, and planners were persuaded by the quality of design and the emphasis on sustainability from construction through to operation.
Smaller but no less significant projects, particularly those with a focus
on sustainability, have been pushed forward even as energy prices soared last winter. The second Day House for Girls features the school’s first air-source heat pump, enhanced insulation and draught-proofing with energy-efficient lighting. The new Health and Wellbeing Centre (which is being rehoused in the heart of College at 15 Kingsgate Street) is receiving similar treatment as we test how far we can ‘green’ the listed and sensitive buildings across the estate. The renaming reflects our desire to place equal emphasis on mental wellbeing and healthy relationships, rather than purely physical health. The move facilitates the use of Antrim House as staff accommodation within the new Boarding Houses project.
The new Sports Complex on Kingsgate Park inches closer to completion and commissioning, targeted now for the middle of 2024. The delays have been frustrating for all those involved in delivering this project and doubly so for pupils who have kept a patient watch over construction. It will nevertheless be a high-quality facility for our pupils to enjoy.
Financial summary
Over the year total school income rose from £32.9m to £35.8m, impacted by additional pupils on the roll and fee increases. The College drew down a follow-on tranche of its 40-year loan — £25m at an interest rate of 2.07% ahead of construction of the Boarding Houses. The charity benefitted from higher investment income, as we deployed this (for now), surplus cash into higher-yielding money-market funds, and from commercial income, largely from film deals and summer programmes. The biggest factor — a record year of fundraising — saw total income rise by nearly a quarter to £70.2m.
In a year where inflation was at its highest for over 40 years, it is perhaps no surprise that the school struggled with some costs, particularly for energy (+42%) and boarding-house catering (+21%), where some of the highest increases have been felt, and for teaching, where costs rose by 11%. The deficit in overall school income after depreciation increased from £4.3m to £5.4m, whilst the net operating loss — including trading, fundraising and investment income — remained broadly flat at £1.7m.
The macroeconomic picture in 2023/24 so far shows signs of inflation abating.
The College carries substantial reserves of £448m (2022: £434m). Approximately one third of these reserves represents the campus
and associated liabilities, with the remaining £335m invested across financial and real-estate holdings, with the aim of increasing their value in real terms over the long term. The investment holdings are split evenly with 53% held in land and property and the remainder in financial investments, which delivered a combined £3.9m of rental and dividend income in the year.
Risks and uncertainties
We remain cognisant of the risks around the imposition of VAT on school fees and business rates after the next election. The College is evaluating various VAT scenarios, and, whilst the charity is in a strong financial position, we are very concerned about the impact on fees paid by parents, our ability to attract the best and brightest and the independent school sector more widely. We continue to work with the sector and our advisers to plan
for this possibility.
