A large multi-academy trust has reported a £3.1 million in-year surplus and increased its free reserves, according to its latest annual accounts.

GLF Schools, which runs 43 academies, comprising 35 primaries and eight secondaries, recorded an operating surplus of £3.1 million in the financial year 2024-25, up from £2.6 million the previous year.

The trust’s uncommitted (free) revenue reserves increased from £13.9 million to £17.1 million during the year, equivalent to 11.7 per cent of its income excluding fixed asset funds.

The trust said the improvement reflected “strong expense management and receipt of unbudgeted income”. It added that trustees had committed to investing the surplus in education initiatives for the coming years.

GLF reserves ‘will be invested’

However, GLF said it expected its free reserves to fall to around 6 per cent of income in 2025-26 and subsequent years as funds were deployed.

The Department for Education, through the Education and Skills Funding Agency in the past, has contacted trusts when their reserves have fallen below 5 per cent, because it may “indicate financial vulnerability”.

A spokesperson for the trust said: “Reserves will be decreasing from this year as part of a coordinated and strategic investment into the education of every pupil at GLF.”

The spokesperson added that reserves had risen in 2024-25 “due in part to the trust making the most of all income streams, as well as income that is difficult to predict beforehand, such as bank interest and extra grants”.

The trust received £1.09 million in bank interest and investment income in 2024-25, up from £801,000 in 2023-24.

Boost in donation income

The GLF accounts show that the trust recorded £8.2 million in donation income in 2024-25, up from £655,000 the previous year, contributing to the trust’s improved financial position.

The trust said £7.53 million of the total related to assets transferred into GLF following the rebrokerage of Highdown School and Sixth Form Centre, in Reading, Berkshire, on 1 October 2024.

This included £6.59 million in restricted fixed asset funds relating to land and buildings revalued, alongside £942,000 in restricted funds covering current assets, liabilities and pensions.

The transfer also included a £450,000 loan with Reading Borough Council, which was settled during the year.

The accounts also note that the GLF Schools’ Foundation - the trust’s charitable arm - raised £223,000 during the financial year.

SEND and pay pressures

The trust warned in its risk register of ongoing financial pressures that schools are facing, citing the lack of a “clear and transparent long-term funding commitment” alongside higher-than-forecast salary increases.

It also highlighted “insufficient support and funding in the system for vulnerable learners, especially those with special educational needs and disabilities”, warning that this limited its ability to provide appropriate support.

Other risks identified included difficulties in teacher recruitment, declining numbers of primary-aged pupils and insufficient capital funding to address the condition of parts of the trust’s school estate.

The trust spokesperson said GLF faced the same pressures as the rest of the sector, including nationally set pay decisions and increasing demand for SEND support, while adding that demographic challenges such as falling rolls were not currently affecting the trust.

Staffing costs

Staff numbers at GLF increased during the year, with the number of employees earning more than £60,000 rising across several pay bands.

Total pay for key management personnel rose to £1.4 million in 2024-25, up from £1.3 million the previous year.

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