Foreword 4 Review of the year 6 Independent Auditors’ Report 26 Consolidated Statement of Financial Activities 28 Balance Sheets (Group and Charity) 29 Consolidated Cash Flow Statement 30 Notes to the Accounts 31 Legal and Administrative Details 43

www.burghley.co.uk

With thanks to Lee Hellwing for providing photographs Who we are and what we do

Burghley House is one of the largest and grandest houses of the first Elizabethan Age. Built and mostly designed by William Cecil, Lord High Treasurer to Queen Elizabeth I, between 1555 and 1587, the main part of the House has 35 major rooms on the ground and first floors. There are more than 80 lesser rooms and numerous halls, corridors, attics and service areas. The lead roof extends to three quarters of an acre.

Burghley is still a family home, lived in by Orlando and Miranda Rock. Miranda is a direct descendant of the first Lord Burghley and runs the House on behalf of the Burghley House Preservation Trust.

The Trust was established as a charity in 1969 by the Sixth Marquess of Exeter. The objects of the charity are set out in full in the memorandum and articles. However the key focus of the charity is best summarised as the advancement of historic and aesthetic education and the preservation of buildings of national importance, and in particular the preservation and showing of Burghley House. The Trust’s objectives are stated on page 19.

As well as giving the public the opportunity to visit and learn about this great historic house, the formation of the Trust ensures that Burghley House will be preserved and conserved for the nation.

The charity raises its income from charging an admission fee to visitors and running events and other commercial activities at the House. In addition, the charity owns a significant investment property portfolio based around the Stamford area.

Wherever possible, the annual surplus is used to repair, restore and maintain the fabric of the buildings at Burghley House and the important collection of works of art and furniture that they contain. The Governors also carry out their activities with a view to conserving the environment of land and buildings owned by the charity.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

3 Foreword

For all of us at Burghley the year 2016 will be remembered as the last in the life of Anthony Forbes. Stepson of David, 6th Marquess of Exeter, he was my predecessor as Chairman of the Burghley House Preservation Trust and was appointed to the office shortly after his stepfather's death. He fought his last illness with the courage, tenacity and dignity which those who knew him would have expected of him.

For more than 25 years he steered the Trust through its early period. He did so with a combination of charm, flair and wisdom. He set standards for how things should be done, he organised a financial structure for the Trust: and he prioritised expenditure at the House and on the Estate. He brought to the tasks which he undertook all the skills which he had learned in a long career at Cazenoves, the London stockbroking firm of which he rose to the very top. He worked tirelessly for Burghley; and all of us, trustees, Cecil family members, land agents, accountants and other professional advisers, the workforces at the House and on the Estate, indeed all who love this great Lincolnshire palace, are deeply indebted to him.

The affection and respect in which he was held here at Burghley was shown to good effect by the number of those from the Estate, from Stamford, and from the surrounding villages who attended his funeral. To adapt a famous adage written, albeit in Latin, elsewhere, if you seek his monument, come to Burghley, and look around.

It has been a great privilege for me to continue with work on projects some of which, necessarily because of the constraints of time or money, were but a gleam in Anthony's eye. In 2016, for example, we were able to complete the restoration of the interiors and masonry work on the Bottle Lodges at the main gate to Burghley Park. Built in 1801 by the 10th Earl, the Lodges and Gateway are a fitting celebration of his advancement from Earl to Marquess.

Last year, too, thanks to a large grant provided by Natural England, the dedication of the employees of Cummins who cleared the site and the skills of the workforce of Messenger, a local building firm, we completed the rehabilitation of the Walled Garden. It is now entirely restored to its former glory: the walls have been repointed, a large number of bricks have been replaced, and all the coping stones reconstructed or repaired.

2016 also marked the completion of the conversion of the Dairy built by the 3rd Marquess in the late 1860s. This historic building, situated inside Burghley Park, has been re-roofed and converted into two large flats which are now available for rent, winter and summer.

In the House the interior lighting of the State Rooms was improved; the Great Hall has been redecorated; and further restoration work done to the Black and Yellow Bedroom.

The Trust also benefited last year from a generous financial contribution from the trustees of 6th Marquess' Will Trust which enabled the Governors to go ahead with the projects listed above.

We continue to make discoveries about Burghley's history. Last year, as Jon Culverhouse, our curator, reveals later in this Report, he predicted a link between an engraving made of the Red Drawing Room in 1821 by Lady Sophia Pierrepoint, a carved giltwood pole-screen found recently in an old furniture store, a console table situated in the Brown Drawing Room and a panel, always known to exist, consisting of a tree and flying insects painted by the fascinating but notorious Elizabeth Chudleigh, Duchess of Kingston, who was tried and found guilty of bigamy by the House of Lords in 1776. Thanks to Jon's remarkable intuition the pole-screen, a carved monkey from the table, and the Duchess’ panel are now reunited.

Under the direction of Alwyn Pollard and Rachel Starmer, the school tours again proved very

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

4 popular in 2016. The Governors of the Trust attach importance to these tours since they constitute a significant element in our charitable objectives. I commend to you Rachel’s review in this Report headed "Education at Burghley." We have won several awards for the quality of our tours and Alwyn and Rachel deserve the thanks of all of us for the contribution which they and their team make to educating child and adult alike about the history of Burghley and its place in English life during the last four and a half centuries.

More generally, during the course of last year, we sought to develop the Visitor Experience at Burghley. More than 100,000 people explored the House and or walked round the Gardens. We held three special Exhibitions, one to celebrate the tercentenary of the birth of Lancelot 'Capability' Brown who spent twenty years "restoring the monument of a great minister to a great Queen", as he described his work at Burghley. Another was dedicated to the contributions to the Burghley Collection made by the Georgian Earls of Exeter during the 18th century. A third was of sculpture, held in the Sculpture Garden, designed to show how metal can be exploited by sculptors to create different forms.

During 2016 we also held a number of events in the Park including the Rat Race, the Burghley Game and Country Fair, a Live Promotions Concert starring Bryan Ferry, a Battle Proms Concert, a Film Festival and three separate Car Rallies for TVR owners, Rolls Royce enthusiasts and devotees of Aston Martins. Well in excess of 40,000 visitors enjoyed these attractions.

The 2016 Burghley Horse Trials, under the patronage, among others, of Land Rover and the skilful direction of Elizabeth Inman, proved a great success. The number attending over the four days were well up to the figures of previous years and everyone seemed to enjoy themselves. The year proved to be a triumph for the Antipodean contingent with Australia and New Zealand taking first, second, third and fourth places.

Outside the Park we embarked on an ambitious project, in conjunction with Morris Homes, to build 24 houses at Barnack Road on the west side of Stamford and 48 houses on the former Town football field which those who follow events at Burghley will recollect was moved three years ago to a site on the north side of Stamford. We are on target to complete the construction of these developments and to deliver these houses, some for sale, some for rent, in the autumn of this year.

Our accounts show a healthy surplus as you will see from that section of the Report compiled by Josh Fitch, whose firm guidance ensures our solvency. We have maintained our policy of making a significant contribution to our portfolio of investments in order to increase our more liquid assets.

None of the achievements which I have touched on above, and which are expanded later in this Report, would have been possible without the industry and dedication of our employees under the leadership and direction of Miranda Rock at the House, David Pennell on the Estate, Josh Fitch in the Finance Department and Liz Inman for Horse Trials.

On behalf of my fellow Governors, I thank them, and every one of their staffs, most warmly for their contributions to the success of 2016 at Burghley.

Sir John Nutting Bt QC Chairman

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

5 The visitor experience at Burghley While the Park, Orangery Restaurant and Courtyard Shop are open throughout the winter, the House’s State Rooms, Garden of Surprises and Sculpture Garden are open from mid-March until the end of October. The State Rooms are closed only on Fridays to enable maintenance and conservation work to be carried out and to allow the house to be used for private events and filming. Almost 60,000 people visited the House last year and a further 47,500 visited the gardens. This is a similar number to recent years. In addition to these visitors many attended private functions and weddings as well as larger scale festivals and events in the Park. Others enjoy the Park on a regular basis which is accessible all year round, free of any admission charge.

Brownlow, the 9th Earl of Exeter, employed Lancelot ‘Capability’ Brown during the mid-18th Century to re-design the Park and make architectural changes to the House and the ancillary buildings centred around the Chestnut and Stable Courtyards. It was Brown’s longest commission which he described as “twenty years pleasure”. To celebrate the tercentenary of Brown’s birth, a new exhibition was created at the House Entrance featuring among other exhibits, a new, hand drawn map of the Park as it is today, showing every tree and boundary, the painstaking work of cartographer, James Byatt (shown on the back cover of this Report). Special talks and tours of the Park were also arranged as part of the celebrations, to allow visitors to explore areas of the parkland which are not normally accessible.

In addition to the Capability Brown exhibition, this year’s Brewhouse Treasury exhibition, ‘The Georgians at Burghley’, displayed items collected by the Earls of Exeter during the reigns of George I to George IV. It included many pieces previously not exhibited; fine glassware, items of silver-gilt and an exceptional volume of botanical illustrations, as well as pieces of European porcelain, in particular a superb George II silver-gilt helmet-shaped ewer, made by the leading goldsmith of the time, Benjamin Pyne in 1727. The Royal Arms of the ewer, and its date, suggest that this was the Almoner’s fee received by Brownlow, 8th Earl of Exeter at the Coronation of George II in 1727. The role of Grand Almoner has been held by Earls and Marquesses of Exeter since the early 17th Century.

In addition to the permanent collection of items in the Sculpture Garden, an exhibition is staged each year with a different theme. The 2016 Sculpture Garden exhibition, ‘Metallic’, revealed how sculptors can exploit the flexibility and diversity of metal in the pursuit of sculptural form. It included works in

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

6 stainless steel, copper, iron, aluminium and bronze, created through casting, welding, engraving and fabrication. One of the most eye catching pieces was ‘Iron Stag’ by Dido Crosby, which from one angle looks like an intact beast, its surface covered with fur, yet when viewed from the opposite side, its interiors are revealed, showing how the sculpture is constructed from parts bolted together. The drawn division of these parts is reminiscent of a butcher’s diagram of an animal’s cuts of meat.

In October the Leicestershire Society of Botanical Illustrators returned to Burghley to stage a three week exhibition in the Great Hall, ‘A Medieval Cornucopia’ featuring a wide variety of award winning illustrations.

Events staged in Burghley Park continued to attract large audiences throughout the summer months. In May approximately 5,500 people took part in the Rat Race’s ‘Burghley’s Dirty Weekend’, a festival style occasion, where competitors are able to camp in Burghley Park before taking part in a gruelling 20 mile, 200 obstacle endurance race. For those who had any energy left, the weekend culminated in an evening of live music and revelries in a big top marquee.

Living Heritage staged the ‘Burghley Game and Country Fair’ for the eleventh year in succession over the

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

7 Spring Bank Holiday weekend. There was a full range of country pursuits, from angling demonstrations on the lake to clay shooting and from dog agility races to horse boarding - an exciting extreme sport, where a boarder is pulled at speeds of up to 28mph around a series of obstacles by a galloping horse.

An audience of approximately 6,000 people attended Live Promotions’ concert in June which starred Bryan Ferry. It was also a popular year for car enthusiasts – TVR owners held a rally of over 600 vehicles in April, the

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

8 Rolls Royce Enthusiasts Club staged their ‘Annual Concourse and Rally’ for the second year, which attracted over 3,000 gleaming cars. Not to be outdone, Aston Martin staged the largest single gathering of cars a few weeks later with over 1,000 cars including James Bond’s DB10, as seen in the 2015 Bond film ‘Spectre’.

The Battle Proms concert in July was the last major event in the Park before we commenced the build for the Land Rover Burghley Horse Trials. Over 7,000 people attended the concert which commemorated the centenary of the Battle of the Somme.

The Burghley Film Festival in late July/August continues to be a popular event with local visitors and attracted more than 12,000 people last year over five days.

During the build up to Christmas, the Courtyard Shop was complemented by a ‘pop-up’ Christmas Shop in the Brewhouse, which stocked a huge variety of seasonal gifts and decorations. Large numbers of shoppers were also attracted to the Christmas Fair and Food Market, run over four days at the end of November. Year on year this event is becoming increasingly popular and, as a result, retail takings were the highest they have been over a Christmas period.

As a climax to the festive season, two carol concerts were held in the Chapel and Great Hall, both arranged by Burghley’s Director of Education, Alwyn Pollard.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

9 Repairing and restoring the fabric of Burghley

The Walled Kitchen Garden

The Walled Garden in the High Park at Burghley was built between 1700 and 1705. The Ha-Ha, ditch and stone faced bank protecting the walls from marauding cattle and sheep was completed by 1710. Over the following century internal divisions were created to make small multi compartment gardens within the walled area leaving a large central part for the Great Vegetable Garden. By 1796 the first glasshouse had been added and named the Melon Ground where much of the fruit and vegetable were grown for Burghley House and the surplus supplied to the Stamford Market for consumption by the public. Shortly after the first melon houses went into production, a mushroom house was created followed by pineapple and other fruit houses.

In 2014, nearly 310 years since its creation, a major restoration project, with financial help from Natural England, was begun in order to restore the walls and structure to their former state and condition. The £1.6 million project has involved the refurbishment of over 217,000 bricks within the garden. Over 800 metres of coping stone have been cleaned, restored and reset on the walls to protect them from water ingress for the next three hundred years. Of the old and venerable fruit trees in the garden we have saved and carefully cultivated the surviving Lord Burghley and Barnack Beauty apples and planted many more as replacements.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

10 The Walled Garden is of significant historic interest and, as would be expected, is a respectable distance from the House as it would have been a semi-industrial hub of activity given its size and the number of glasshouses that had to be heated by solid fuel. Until our restoration project began in 2014 the Walled Garden had fallen out of use and stood as a reminder of the sheer scale of production required to support a house such as Burghley. There is much more to discover about the history, special architectural character and horticultural innovation evident within this area.

As well as the restoration of the walls and coping stones an intricate network of internal pathways has been completed and the future of this historic asset within the Burghley Park has been secured. Although the area will not be used to grow vegetables to supply Burghley House, it will now become an attractive place to hold events, such as wedding receptions or for ‘glamping’ during the summer.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

11 The Burghley House Collection Burghley is one of the finest examples of a late 16th century ‘prodigy house’, built by one of Queen Elizabeth’s most trusted and important ministers, the Lord Treasurer, William Cecil (1521-1598.)

The House contains an outstanding collection of fine art, amassed by the Cecil family over a 400 year period. Most areas contain objects of National importance, of which some highlights are:

• 17th & 18th century Italian Old Master paintings.

• 17th & 18th century English and Continental furniture.

• Oriental and European ceramics.

• Chinese snuff bottles.

• English portrait miniatures.

• English & European 17th century tapestries.

Management of the Collection is the responsibility of the resident House Director, Miranda Rock (a member of the Cecil family), and a curatorial department led by Jon Culverhouse, who has been looking after the Collection since 1984. The Collection has been comprehensively inventoried and investigated by a number of the foremost experts in their fields. A computerised record of every object of note is kept: these records are constantly reviewed and revised.

Conditions within the House are monitored and great efforts have been made to ensure stability of temperature and humidity as far as is possible within an historic building. Sensitive objects have been allocated specialised storage areas. A detailed photographic record of all objects was commenced twenty years ago and its preparation continues today. Some 70% of the Collection is now recorded.

The staterooms of the House are open to visitors, daily, for approximately 28 weeks each year. Other areas are always available for scholastic research by appointment. We have a pro-active approach to loaning objects to other collections, both nationally and internationally. In recent years, major exhibitions have travelled from Burghley to museums in the USA and Japan. A major development of display facilities at the House, undertaken in 2003 with assistance from the Heritage National Lottery Fund, has provided a substantial specialised display area.

Each year exhibitions are mounted to concentrate on aspects of the Collection. This opportunity is used to show visitors objects that are not always on display. There is also an ongoing programme of rotation of objects to ensure that items are exhibited in the public part of the House as much as is practical.

Acquisitions to the Collection are now rare. However, on occasion, the Governors of the Trust have been able to make funds available for the purchase of an object of outstanding importance, sold or transferred by previous generations. As the Trust exists for the preservation of the House and its contents, there is no need for a disposals’ policy.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

12 Repairing and restoring Burghley fine art

A Pole-screen, a Monkey and a Libertine.

An engraving made by Lady Sophia Pierrepont, drawn in 1821, shows the Red Drawing Room at Burghley in clear detail. In the left-hand corner, partially hidden by a sofa, stands a large pole-screen. The panel is painted with an image of a plant surrounded by flying insects, with other objects in the foreground. Pole- screens, as well as being decorative, were employed to prevent heavy makeup, fashionable at that time, from melting in the direct heat of a fire.

A recent search through a dusty furniture store revealed a very ornate carved giltwood tripod base, presumed to be that of a pole- screen (shown below). The equally ornate brass pole, topped with a large, carved pineapple finial, was discovered a week later elsewhere in the house. The similarity in carving was recognised and it was found to fit the base perfectly. A carved giltwood frame containing a painting on vellum of an allium plant, insects, a bird’s nest with chicks and a shell, was hanging as a picture in the Saloon; the image being an exact match for the panel drawn by Lady Sophia. A search of an 18th Century inventory of the House and an early guidebook gave information: 1763 Inventory —“the drawing room… a fire screen on a gilt stand painted by ye Hon. ble. Miss Chudleigh, maid of Honer to ye Dowager Princess of Wales”.

1797 Guidebook—“The drawing room….The fire-screen is remarkable, for having been painted by a great and remarkable personage, no less than the famous Duchess of Kingston, when Miss Chudleigh, and a maid of honour to the Princess Dowager of Wales”.

The various components were taken to the workshop of Anthony Beech, the furniture conservator based at Burghley. The carving of the base and finial was of extremely high quality and, whilst it had suffered small damages, was in generally good condition. The surface was gently cleaned with tri-ammonium citrate, applied and removed with cotton wool bud sticks. Cleaning revealed burnished gold, intended to give contrasting highlights and flat areas to the carved surfaces.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

13 After the removal of surface dirt, close inspection of an area on the front leg, where something seemed to be missing, revealed the broken stump of a peg and a small metal loop or staple. The staple was gilt, suggesting that it was a purposefully placed component of a missing decorative item. Some time was spent pondering what could have formed a part of an exuberant rococo scene and required a chain to secure it.

A dog would be the wrong shape, as would a cat. A chained monkey, a popular exotic pet of the period, came to mind. The only example of such an animal in the Burghley Collection formed part of the decoration of a console table, standing in the Brown Drawing Room (below.).

A rapid close inspection showed that the monkey on the console stand was very clearly not originally part of that piece. Not only was its placement slightly uncomfortable but the means by which it had been fixed there was even more so—a large and clumsy wood-screw had anchored the poor creature by its testicles to the carving of the table. Encircling the monkey’s waist is a broad belt with traces of a fitted chain.

Once the monkey was released and reacquainted with the tripod, it was immediately clear that the two parts were linked. Anthony carefully drilled out the remains of the peg from the monkey and that from the stand; the insertion of a new peg at the same angle located the figure perfectly. Turning to the panel that Lady Sophia’s drawing shows so clearly, it was apparent that the painting found in the Saloon had not been intended to serve as a wall picture; the reverse of the frame was gilded and part- burnished, and this was clearly intended to be visible in three dimensions. Although the painting itself is fairly naïve, its painter was certainly not so. The story of Elizabeth Chudleigh was one of the greatest scandals of the time. She was a lady-in-waiting to the Dowager Princess of Wales, famous for her licentious London lifestyle, who married firstly the 3rd Earl of Bristol, and secondly, bigamously, the 2nd Duke of Kingston, from whom she inherited a fortune. Eventually arrested and charged with bigamy, the Duchess was tried as a peer in Westminster Hall and found guilty. Retaining her fortune, she hurriedly left England and lived in great style on an estate that she purchased in Estonia. She also had property in Paris, where she died in 1788, still legally Countess of Bristol.

Now fully conserved, the pole-screen is an astonishing piece, so imposing that it can only sit comfortably in one of the larger staterooms at Burghley, where it will be seen by all visitors to the House. The detective story involved in its finding and re-creation has been one of the most enjoyable moments of my curatorship of Burghley - a House that has certainly not yet surrendered all its secrets!

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

14 Land Rover Burghley Horse Trials

The annual Event was once again a huge success. Over 150,000 visitors attended over four days in September, attracted not only by the excitement of the international equestrian competition but also by the opportunity for a last social ‘get together’ with family and friends before autumn sets in, not to mention some early Christmas shopping amidst our world renowned ‘pop-up shopping mall’.

Traditionally Saturday is the best attended day, when crowds in excess of 60,000 regularly flock from all over the country, and indeed from overseas, to watch the world’s elite horse and rider combinations tackle the famous 6km cross country course, set amidst the beautiful parkland which surrounds Burghley House. Early risers woke to a lovely autumn day, but as the morning progressed so did the rain. Previously forecast, there is no doubt this played a part in a slightly reduced spectator attendance and also influenced the competition itself, with riders competing later in the day tending to incur more Image: Peter Nixon problems on the challenging cross country course.

Sunday morning dawned bright for an enthusiastic crowd to watch the final horse inspection. Later in the day the Grandstand was full for an exciting show jumping finale. 71 athletes had started the competition with 10 nations represented. The eventual victor was Christopher Burton riding for Australia on his mount Nobilis 18, and second, third and fourth places were awarded to the popular New Zealand contingent.

The week of the event offers much to our visitors. Main competition and shopping apart, there is much more besides; including a busy secondary arena presenting Pony Club team jumping, young horse and show pony classes. In between main competition phases there are demonstrations in the Main Arena, including, this year, a Stallion Parade and a Racehorse to Riding Horse qualifier. Membership facilities have recently been upgraded for our many Members, some of whom elect to take out caravan membership and a small community of regular enthusiasts take advantage of a temporary caravan site located nearby at Burghley Park Golf Club - just a short stroll from the cross country course.

Operationally this year there were significant developments in general showground layout. Temporary facilities, which have to be installed annually in just under 6 weeks, would be adequate to serve a small town, including electricity, sanitation requirements and catering. Medical provision for both the public and athletes is extensive, as is veterinary provision for the competition horses. The preparations for running the equestrian competition are wide ranging: 1000 officials on Saturday alone are invited and nearly 300 radios, covering 14 networks, are needed for communications.

A welcome introduction this year was Red Button viewing on the BBC. Behind the scenes planning for television production is substantial and goes unnoticed by our visitors. The efforts of our producers however, was rewarded this year with a prize at the New York Film Festival for our broadcast.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

15 Education at Burghley

Experiences for visiting schools continued to evolve last year at Burghley. Despite changes to the National Curriculum our most popular visits by far are Tudor themed for primary school children. We continue to offer ‘Meet and Greet’ sessions with famous and notable figures from the past, such as King Henry VIII and Queen Victoria. However, curriculum changes have caused an increased interest in more localised history and William Cecil is now a popular host for school groups visiting the Great Hall to learn about Stamford‘s past and the history of Burghley House.

In the winter season Christmas themed days are more popular than ever, with schools enjoying the extra freedom of being able to use the Old Kitchen and Great Hall throughout the day for sessions and workshops such as ‘Tudor Christmas Food’ and ‘Victorian Toys and Games at Christmas’. In the summer our themed House Tours are, despite curriculum changes, as popular as ever. Schools increasingly wish to incorporate practical sessions into their visits so our ‘Tudor Music and Dance’ workshop has become popular. Also, we have introduced a new ‘Tudor Spinning and Weaving’ workshop, which includes a short talk about Tudor cloth production and natural dyes, then a demonstration of yarn production on a spinning wheel, plus the chance for the children to have a go with a drop spindle and do some basic weaving on a peg loom. Feedback on this workshop has been encouraging, with children especially enjoying the opportunity to make a small square of woven cloth to take home with them.

Schools visiting Burghley increasingly look for a more structured experience, led by Burghley staff with a focus on covering the curriculum. Therefore, we are promoting more possibilities for these types of visits in the Garden of Surprises and Sculpture Garden. A ‘Wild Weaving’ option has been added to our popular gardens workshops and our storytelling sessions introduced in 2015, have proved popular with Key Stage One children. We also continue to offer mini beast and green plant themed science visits in the gardens, which allow children to explore the gardens whilst learning more about the natural world around them.

Now a holiday staple, our ‘Beastly Boring Burghley’ tours continue to be popular with visiting families. Running five days a week, these tours offer an engaging way for younger visitors and family groups to experience Burghley. Also available in the school holidays are our holiday workshops, which take place in our Sculpture Garden classroom each school holiday. Whilst the workshops are aimed primarily at school

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

16 children, we have found that they are popular with all ages. Activities, including badge making, caterpillar welly pegs and mini-beast fridge magnets are enjoyed by all ages from toddlers to teenagers. Even some adult visitors were keen to take part in the pine cone owl making at Easter!

Our adult education courses remain well attended, especially the watercolour painting days with Sandra Peck, which are regularly sold out. Last year she has covered subjects such as ‘Burghley in Pen and Wash’ and ‘The George Room’ as well as ‘Parrot Tulips’ and ‘Wisteria’, and her floral subjects always use flowers from the gardens at Burghley for their inspiration where possible. We have also held several one day courses aimed at new painters who wish to take up watercolour painting as a hobby, but perhaps lack the confidence and knowledge to get started.

Teachers are now able to subscribe to a dedicated e-newsletter which was introduced last year. The newsletters are distributed each term and allow teachers to keep up to date with all the latest developments and showcase the different types of visit we offer at Burghley.

One young visitor who sent us a letter recently to thank us for a class visit summed up perfectly the experience we want our visiting students to have: ‘Thank you for showing me and my class around, we thoroughly enjoyed ourselves. I loved the kitchen, it was huge! We learned lots and were sorry to leave’.

This year we aim to continue to offer a quality learning experience to visiting schools both in the House and in the Gardens. Our main objective is for visiting students to take back to school many of the new and exciting things they have learned, but we also aim for them to have had a fabulous time at Burghley and to go home having thoroughly enjoyed their visit.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

17 Looking to the future

Our objectives for 2017/18 • To continue to attract a high number of visitors to Burghley House.

It is our aim to maintain the numbers of visitors to the House and the Gardens in 2017. To achieve this, we have continued to make improvements to the appearance and furnishing of the State Rooms, both by adjusting the placement of furniture to follow historic layouts and, wherever possible, by removing rope barriers, allowing our visitors to move more freely around the rooms. With the assistance of TM Lighting, we have continued with the substantial four year programme of improving the lighting in the State Rooms by the addition of a significant number of low-voltage spot and picture lights, electrification of nineteenth century gas lights and the upgrading of all fluorescent tubing to low voltage strip lighting and to up-light the painted ceilings in the George Rooms.

As well as aiming to attract new audiences, we completely revised our ticketing system last year and our visitors now benefit from an entry ticket that acts as an annual pass, allowing repeat visits throughout the year. The flexibility of the annual pass has been well received. Our full calendar of events will continue to provide an occasion for visitors of all ages and interests to come to Burghley. The Burghley Film Festival is extremely popular and will run again over five days at the end of July. The films have been chosen from favourites suggested for different age groups, with the hope that we can offer a widely attractive programme combining classics with contemporary releases. Our calendar of events also includes the three seasonal Fine Food Markets that coincide with park events such as the TVR and Rolls Royce car rallies and the Christmas Market. We will be running a new season of Spooky Tours at Halloween and the Rat Race assault course also returns. Long- standing and popular events, the Battle Proms and Game and Country Fair, will be back again and in addition we look forward to hosting ‘Icons of the 80’s’ for a concert in the Park. We are hopeful that these events will appeal to visitors of all ages and interests.

We have two special exhibitions this year, the 2017 Treasury exhibition, ‘The Victorians at Burghley’, which reflects the lifestyle and collecting passions of the four Marquesses of Exeter who spanned the reign of Queen Victoria. This exhibition includes a great variety of objects, not normally on display to visitors, including jewellery, glassware, an exquisite fan, a rare child’s wax doll, porcelain and paintings, the Garter Star awarded to Brownlow, 2nd Marquess of Exeter and one of the finest silver-gilt racing trophies in the collection. The exhibition highlights the family’s love of breeding prize-winning native shorthorn cattle and also reflects their close friendship with Queen Victoria and Prince Albert, who in 1844 was asked to stand as sponsor, or godfather, at the baptism of the daughter of the 2nd Marquess. This exhibition provides us with a valuable opportunity to research, restore, photograph and display some smaller and more delicate objects that are not usually accessible to our visitors to the House.

We also continue to show the exhibition that records Lancelot ‘Capability’ Brown’s long career at Burghley and which celebrates the life of the ‘father of landscape architecture’. While Brown worked on many sites, Burghley provides a shining example of both his gardening, architectural and building skills.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

18 At Burghley he not only landscaped the grounds but also designed interiors within the house and constructed buildings such as the Orangery, Stables and Temple. Our dedicated exhibition at the entrance to the House, ‘Capability Brown at Burghley’, and the accompanying information leaflet shows his work at Burghley in the context of the House and Park where his enormous contribution can still be enjoyed.

• To offer a wide variety of educational opportunities for both children and adults.

Our aim is always to provide high quality learning experiences for schools who choose to visit Burghley as a part of their curriculum studies. We also look to offer enjoyable learning activities for visiting families and where possible informative opportunities for adults.

Our adult education courses were as popular as ever last year, and this year we aim to continue to offer both digital photography courses and painting days to adult learners.

We will continue to devise, develop and deliver our numerous, quality educational visits for schools. These have been the mainstay of our department for over ten years now and are still very much appreciated by our school visitors. Our themes are constantly having to be adapted to meet the ever changing curriculum needs of schools.

In recent years we have begun to identify and develop environmental workshops and these, linked with an art and design aspect, make use of the abundant natural world that exists at Burghley. These visits are becoming more popular and we look to continue to develope and promote these this year.

Curriculum changes have also led to an increased interest in local history and visits which are focused more on the history of the House, rather than specific historic periods. So we will be looking to monitor this change and develop programmes for visiting schools which can accommodate this emerging area of interest.

• To continue to repair, restore and conserve the fabric of the buildings at Burghley House.

The work for this year will be based around the priorities for repair highlighted in the quinquennial inspection of Burghley House, more specifically the on-going programme of stonework repairs. Work will take place to complete the restoration of the metalwork on the Bottle Lodges at the entrance of Burghley Park. In addition there are plans to make significant improvements to the wall surrounding Burghley Park thanks to a grant from Natural England.

• To continue to repair, restore and conserve the collections of important works of art and furniture.

We will continue to do research and publish discoveries relating to all areas of the collections and history of the House, and to monitor the condition of all works of art and undertake conservation projects whenever necessary. We will progress the detailed identification by photography of the interiors and works of art in the House, both as an historic record and to make more images of works of art available on-line through our website. We will complete the programme of making an inventory of the books in the Great Hall and continue the cataloguing of medieval documents in the archive.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

19 Strategic Report

Achievements and performance

References to 2016 mean the financial year ended 31 January 2016.

The Trust had another positive year financially, generating a reasonable surplus on the income account whilst the ongoing property development programme has added to the strength of the balance sheet.

Charitable objectives continue to be met with large numbers of visitors coming to discover Burghley House; and significant repairs and maintenance being undertaken to protect the fabric of the House and Gardens.

Income from investments continues to be generated in line with expectations with new income streams from property developments expected to start later this year and next.

During the year the Trust was fined after pleading guilty to charges brought by the Health and Safety Executive. This involved a tragic accident involving the luggage lift at Burghley House.

The Trust’s achievements for the year are stated on pages 5 to 17.

Income

Burghley Horse Trials Limited, a trading subsidiary of the Charity, provides £147,523, the largest amount of income from a single commercial activity.

Income derived from investment properties and other property assets owned by the Trust amounted to £3.1 million (2016: £3.1 million).

Income from the showing of Burghley House was £725,902 an increase from £709,564 in the previous year. This slight rise in revenue reflects an increase in the ticket price although overall visitor numbers remained at around 100,000, a similar level to the previous few years.

Costs of generating funds

Expenditure on generating funds increased to slightly over £5.4 million (2016: £5.2 million).

The level of expenditure on the maintenance and repair of investment property has been kept at a similar level to last year to ensure that the level of repair of investment properties, especially those in the residential property portfolio, are retained at a high standard.

Cost of charitable activities

The cost of repairing and restoring the fabric of Burghley House and its collections came to £1,212,198 (2016: £1,062,692). This level of expenditure continues to ensure that Burghley House remains in acceptable order and that no part of the House is immediately at risk.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

20 Surplus for the year

The Trust showed an unrestricted income fund surplus for the year of £1,331,349 (2016: surplus £620,959), an unrestricted expendable endowment fund surplus of £2,825,956 (2016: surplus £1,850,629) and a restricted expendable endowment fund deficit of £4,760 (2016: deficit £4,760).

The net surplus is £4,152,545 (2016: surplus £2,466,828) and has been added to unrestricted income, unrestricted expendable endowment and restricted expendable endowment funds.

This result is stated after revaluing the investment properties upwards by £2,000,000 (2016: an increase of £1,100,000).

A transfer of £718,473 was made from the unrestricted income fund to the unrestricted expendable endowment (2016: £7,452,308) in accordance with the reserves policy below.

The results of the subsidiary companies, Burghley Enterprises Limited and Burghley Horse Trials Limited, show profits for the year of £310,037 (2016: £438,934) and £147,523 (2016: £146,391) respectively and are incorporated into these accounts. The profits are paid up to this Charity under Gift Aid.

The Governing Body do not consider it would be appropriate to make provision in the accounts for the significant cost of dealing with the backlog of dilapidations to property owned by the Charity. Nevertheless it is necessary to read the accounts in the knowledge of the quantum of expenditure which is outstanding. These future costs are discussed in the reserves policy below.

Reserves policy

The Governors have reviewed the Charity’s reserves policy, taking into account future income projections and expenditure plans in line with the strategic plan of Burghley House Preservation Trust Limited, together with the associated risks and opportunities.

The Governors policy is to maintain a level of reserves which will provide a stable base for the Charity’s continuing activities and enable the Charity to adjust to any significant change in financial resources through unplanned events, whilst ensuring that excessive funds are not accumulated.

Governors intend to invest any surplus of income into either its Heritage Asset, to fulfil the Charity’s objectives, or to invest further into its endowment to provide increased income in the future. A transfer between the unrestricted income fund and the unrestricted expendable endowment fund is made to reflect this investment.

Advantage has been taken of affordable short term bank debt to provide working capital to finance the fulfilment of the objectives and property development and it is therefore anticipated that the income account will be overdrawn and will match net current liabilities. This is not expected to be significant.

The total reserves of the Charity were £66,268,858, of which £1,127,800 were restricted expendible endowment funds and £67,077,518 were unrestricted expendible endowment funds. The unrestricted income fund was overdrawn by £1,936,460.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17 21 Investment policy

The Governors have reviewed and retained the Charity’s investment policy, which states that the Governors of the Trust wish to pursue a policy that provides revenue for its current purposes and enhances income and capital growth over the longer term, thereby enabling them to meet their current and future objectives in accordance with the purposes of the Charity.

The Governors, in delegating their investment security management to Cazenove Capital Management Limited, require the managers to pay attention to the standard investment criteria, namely the suitability of the class of investment and the need for diversification insofar as is appropriate to the circumstances of the Charity. The same criteria apply to the Agents managing their investment property portfolio.

The Governors have a duty to optimise financial returns for the Charity, but may exclude certain types of investment from the investment security portfolio, taking into account social and environmental issues.

During the year to 31 January 2017, the investment security portfolio generated total revenue of £44,377 (2016: £33,442) and realised and unrealised gains of £315,134 (2016: loss £117,985). The investment property portfolio generated net revenue of £2,136,606 (2016: £2,260,108), as referred to in the sections above. Given the prevailing market conditions during the year, the Governors were satisfied with the overall performance of the investments.

Principal risks and uncertainties

Governors have identified areas of potential risk and uncertainty:

• The loss or destruction of the Charity’s historic property and collections • The ongoing liability to repair and restore Burghley House and contents • Decreasing visitor numbers to Burghley • The risk of investment income declining as a result of a weak property rental market • The loss of sponsorship of the Burghley Horse Trials

Governors have put in place a number of measures to manage these risks. There are regular reviews of the condition of Burghley House by a qualified architect. Annual exhibitions and other events are held at Burghley House to attract visitor interest (detailed in this report). Continued inward investment is made to the property portfolio and there is also an ongoing programme of investment diversity. The Burghley Horse Trials is managed with the intention of being the best equestrian event of its type in the world in order to attract commercial sponsorship.

Public benefit

The Governors confirm that they have referred to the guidance contained in the Charity Commission’s revised general guidance on public benefit when reviewing the Charity’s objectives and planning future activities.

Donations

During the year the Charity made charitable donations amounting to £1,000 (2016 : £1,000).

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

22 Structure, Governance and Management

Company

The Governors are Directors of the Charity for the purposes of the Companies Act 2006. The Charity is a Charitable Company limited by guarantee and was set up on 3 April 1969. It is governed by a memorandum and articles of association.

Governors

The Members of the Governing Body who served the Charity during the year were:

Sir John Nutting Bt. QC (Chairman) J C S Chenevix-Trench Esq E G Clive, Esq A J Feilden, Esq Sir Giles Floyd Bt E M Harley, Esq The Hon Edward Leigh-Pemberton W A Oswald, Esq W H M Parente Esq S J Richmond-Watson Esq B T J Stevens, Esq

None of the Governors had a beneficial interest in any contract outside the normal course of business to which the Charity was a party during the year.

From time to time a panel of Governors will consider the addition of new members to the Governing Body. Any proposals from such a panel is brought to the full Governing Body for its approval. In addition to receiving an induction pack, new Governors undergo an orientation day with the Chairman and Estates Director of the Charity to brief them on their legal obligations under charity law, the decision making processes and the recent financial performance of the Charity. Governors are encouraged to attend appropriate external training events where these facilitate the undertaking of their role and are also provided with legal and accounting updates as required.

The full Governing Body of the Charity meets formally three times a year, and deals with planning and strategy decisions and reviews the activities of the Charity. Important issues arising between meetings are normally dealt orally or by correspondence by the Chairman whereas the day-to-day management of the Charity is delegated by the Governors to the Estates and House Directors, who report weekly to the Chairman and monthly to the Executive Committee consisting of four Governors.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17 23 The Governors' responsibilities

The Governors (who are also Directors for the purposes of company law) are responsible for preparing the Governors’ 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 Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and the group and the incoming resources and application of resources, including the net income and expenditure for that period. In preparing those financial statements, the Governors 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; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.

The Governors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and the group and to enable them to ensure that the financial statements comply with the Companies Act 2006 and also with the requirements of the Statement of Recommended Practice (SORP) issued by the Charity Commissioners for England and Wales. They are also responsible for safeguarding the assets of the Charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditors

Saffery Champness LLP have confirmed that they are willing to remain in office as auditors of the Charity and accordingly a resolution to reappoint them will be put to the Governors.

Statement of disclosure to auditor (a) so far as the Governors are aware, there is no relevant audit information of which the Charity's auditors are unaware, and (b) they have taken all the steps that they ought to have taken as Governors to make themselves aware of any relevant audit information and to establish that the Charity's auditors are aware of that information.

Burghley Enterprises Limited

Burghley Enterprises Limited is a wholly owned subsidiary of Burghley House Preservation Trust Limited.

The company’s principal activities are the provision of goods and services at Burghley House as well as property trading activities.

The directors of Burghley Enterprises Limited who served during the year were:

E M Harley (Chairman) E Clive A J Feilden Mrs M R Rock

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

24 Burghley Horse Trials Limited

Burghley Horse Trials Limited is a wholly owned subsidiary of Burghley House Preservation Trust Limited.

The company’s principal activity is the management of a four-star rated equestrian event.

The directors of Burghley Horse Trials Limited who served during the year were:

Sir John Nutting Bt. QC (Chairman) The Hon Angela Reid W A Oswald, Esq Mrs C Cecil

Burghley Estate Leisure Limited

Burghley Estate Leisure Limited is a wholly owned subsidiary of Burghley House Preservation Trust Limited.

The company’s principal activity is that of property development.

The directors of Burghley Estate Leisure Limited who served during the year was:

D J Pennell

Remuneration of key personnel

The remuneration of key personnel is monitored and authorised by the Executive Committee of Governors with reference to external factors when appropriate.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

25 Independent auditors' report to the members and Governors of Burghley House Preservation Trust

We have audited the financial statements of Burghley House Preservation Trust for the year ended 31 January 2017 which comprise of the Consolidated Statement of Financial Activities, Balance Sheets, Consolidated Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102.

This report is made solely to the company’s members and the trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members and trustees those matters we are required to state to them in an auditors’ 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 company, the company’s members and trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of the directors and auditors

As explained more fully in the Statement of Governors’ Responsibilities, the Governors (who are also the directors of the company for the purposes of company law and the Trustees for the purposes of charity law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

We have been appointed as auditors under the Companies Act 2006 and report in accordance with that Act. 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 Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group’s and the parent charity’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Strategic Report and the Governors’ Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

• give a true and fair view of the state of the group’s and the parent charity’s affairs as at 31 January 2017 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011. Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

26 Other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Governors’ Annual Report including the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Governors’ Annual Report including the Strategic Report have been prepared in accordance with applicable legal requirements

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 require us to report to you if, in our opinion:

• the parent charity has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charity financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Governors’ Annual Report and Strategic Report.

Cara Turtington (Senior Statutory Auditor) 25 April 2017

For and on behalf of Saffery Champness LLP Chartered Accountants & Statutory Auditors 71 Queen Victoria Street London EC4V 4BE

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

27 Consolidated Statement of Financial Activities incorporating the income and expenditure account for the year ended 31 January 2017

2017 2017 2017 2017 2016 Unrestricted Unrestricted Restricted Total Total Income Expendable Expendable Endowment Endowment

Notes £ £ £ £ £

Income and endowments from:

Donations and grants 3 1,094,656 658,985 - 1,753,641 1,210,038 Other trading activities 3 4,422,237 - - 4,422,237 4,346,537 Income from investments 4 3,106,636 - - 3,106,636 3,102,411 Income from charitable activities 3 725,902 - - 725,902 709,564 Other income - - - - 2,940

Total income and endowments 9,349,431 658,985 -10,008,416 9,371,490

Expenditure on:

Expenditure on raising funds 5,374,087 44,915 - 5,419,002 5,202,103 Expenditure on charitable activities 2,361,014 104,915 4,760 2,470,689 2,722,074 Other expenditure 282,981 - - 282,981 -

Total expenditure 5 8,018,082 149,830 4,760 8,172,672 7,924,177

Net gains on investments 14 - 2,316,801 - 2,316,801 1,019,515

Net income/(expenditure) 1,331,349 2,825,956 (4,760) 4,152,545 2,466,828

Transfers between funds 14 (718,473) 718,473 - - -

Net Movement in Funds 612,876 3,544,429 (4,760) 4,152,545 2,466,828

Balance brought forward (2,549,336)63,533,089 1,132,56062,116,313 59,649,485

Balance carried forward 14,15 (1,936,460)67,077,518 1,127,80066,268,858 62,116,313

The consolidated statement of financial activities has been prepared on the basis that all operations are continuing operations.

The notes on pages 31 to 46 form part of these financial statements.

Comparative figures are included in note 23.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

28 Balance Sheets as at 31 January 2017

Group Group Charity Charity 2017 2016 2017 2016

Notes £ £ £ £

Fixed assets Investment securities 7 2,373,180 1,818,316 2,421,694 1,866,830 Tangible assets 8 211,538 155,527 157,749 107,098 Investment properties 8 55,148,317 53,042,319 55,148,317 50,718,662 Heritage assets 9 10,472,283 9,649,487 10,472,283 9,649,487

68,205,318 64,665,649 68,200,043 62,342,077

Current assets Stocks 10 106,569 86,044 1,059 2,750 Debtors 11 423,098 609,077 431,631 2,713,002 Cash at bank and in hand 667,989 679,461 442,772 614,044

1,197,656 1,374,582 875,462 3,329,796

Creditors: amounts falling due within one year. 12 (3,134,116) (3,923,918) (2,806,647) (3,555,560)

Net current liabilities (1,936,460) (2,549,336) (1,931,185) (225,764)

Net assets 66,268,858 62,116,313 66,268,858 62,116,313

Funds Unrestricted Income Fund 14 (1,936,460) (2,549,336) (1,931,185) (225,764) Unrestricted Expendable Endowment Fund - Historic cost 14 41,539,538 35,929,767 41,633,467 33,705,399 - Revaluation reserve 14 25,537,980 27,603,322 25,438,776 27,504,118 Restricted Expendable Endowment Fund 15 1,127,800 1,132,560 1,127,800 1,132,560

Total Funds 66,268,858 62,116,313 66,268,858 62,116,313

The notes on pages 31 to 46 form part of these financial statements. As permitted by Section 408 of the Companies Act 2006, the parent Charity's Statement of Financial Activities has not been included in these financial statements. The parent Charity's total incoming resources for the year were £4,533,474 (2016: £4,692,943) which includes a donation of £310,037 (2016: £468,759) from its wholly owned subsidiary undertaking, Burghley Enterprises Limited and a donation of £147,523 (2016: £146,391) from its wholly owned subsidiary undertaking, Burghley Horse Trials Limited. The net surplus for the year for the Charity was £1,835,744 (2016: £1,447,313).

The financial statements were approved for issue by the Governors on 25 April 2017.

Sir John Nutting Bt. QC - Chairman Sir Giles Floyd Bt. Governor Governor Company Registration No. 951524 Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17 29 Consolidated Cash Flow Statement for the year ended 31 January 2017

2017 2016 Notes £ £ Cash flows from operating activities: Net cash provided by (used in) operating activities 17 213,941 (1,325,050)

Cash flows from investing activities:

Dividends, interest and rents from investments 2,183,752 2,296,444 Proceeds from the sale of property, plant and equipment 1,667 3,600 Purchase of property, plant and equipment (including capitalised borrowing costs) (3,787,697) (2,146,918) Proceeds from sale of investments 3,122,932 1,655,406 Purchase of investments (495,494) (887,946)

Net cash provided by (used in) investing activities 1,025,160 920,586

Cash flows from financing activities:

Repayments of borrowing (2,470,630) (200,000) Cashflow from new borrowing 1,440,000 -

Net cash provided by (used in) financing activities (1,030,630) (200,000)

Change in cash and cash equivalents in the reporting period 208,471 (604,464)

Cash and cash equivalents at the beginning of the reporting period 763,489 1,367,953

Cash and cash equivalents at the end of the reporting period 971,960 763,489

Cash in hand 667,989 679,461 Notice deposits (less than 3 months) 303,971 84,028

Total cash and cash equivalents 971,960 763,489

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

30 Notes to the Accounts 1 Accounting policies

Charity information Burghley House Preservation Trust is a Charity domiciled and incorporated in England and Wales. The registered office is 61 St Martins, Stamford, Lincolnshire, PE9 2LQ. The Charity does not have share capital, but its liability is limited by the guarantees of its members. Each member has agreed to accept liability of an amount not exceeding £1, should the Charity be wound up. At 31 January 2017 the total of such guarantees amounted to £12.

1.1 Accounting convention These financial statements have been prepared in accordance with 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 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 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 under the historical cost convention, as modified by the revaluation of investment assets appropriated to the Charity by the Burghley Estate Trust under the Deed of Appropriation dated 6 April 1987 and assets released by the Executors of the Estate of the 6th Marquess of Exeter. The freehold land and buildings held as investment properties forming the major part of the assets appropriated from Burghley Estate Trust and released from the Estate of the 6thMarquess of Exeter, have been reflected in the accounts at their market value at 31 January 2017. Investment securities are reflected in the accounts at market value. The principal accounting policies adopted are set out below. 1.2 Basis of consolidation The group financial statements consolidate the financial statements of the Charity and its subsidiaries for the year ended 31 January 2017. The statement of financial activities (SOFA) and the balance sheet consolidate the financial statements on a line by line basis where appropriate. No separate SOFA has been presented for the Charity alone as permitted by Section 408 of the Companies Act 2006. Details concerning the subsidiary companies, along with their results and financial position are set out in note 19.

1.3 Going concern At the time of approving the financial statements, the governors have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the governors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4 Tangible fixed assets and depreciation a)Heritage assets Heritage assets are the tangible assets of the Charity that are of historical importance and are held to advance the preservation, conservation and educational objectives of the Charity and through public access contribute to the nation’s culture and education. The House, grounds and chattels transferred from the Burghley Estate Trust and under the terms of the Will of the 6th Marquess of Exeter, and subsequent development expenditure on these assets, are considered to be heritage assets and are integral to Burghley House. Included within improvements to Burghley House and grounds are fixtures and fittings in relation to the Brewhouse and the Garden of Surprises which are included at cost and depreciated on a straight line basis calculated at an annual rate of 20% and 5% respectively. Due to the historic and unique nature of the assets concerned conventional valuation approaches lack sufficient reliability. As a consequence the improvements to Burghley House and grounds (excluding fixtures and fittings in relation to the Brewhouse and Garden of Surprises) are included at cost and have not been depreciated. Chattels acquired prior to 2001 are included at their probate value and chattels acquired since 2001 are included at market value, neither have been depreciated. Expenditure on the conservation and preservation of Burghley House and its collection is charged to the unrestricted income account when it is incurred. b)Investment properties Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as the reporting end date. The surplus or deficit on revaluation is recognised in the statement of financial activities.

BurBguhlerghyl eHyo Huoseu sPer ePsreersveartviatonio Tnr uTsrtu List mLiimteitded AnAnnnuual aRl eRepoportrt a andnd A Accccoouunntts 22010126/1317 31 Although this accounting policy is in accordance with the applicable accounting standard, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, it is a departure from the general requirement of the Companies Act 2006 for all tangible fixed assets to be depreciated. In the opinion of the directors, compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount of this which might have been charged cannot be separately identified or quantified. Borrowing costs on loans taken out specifically for the construction of investment properties are capitalised as part of the cost of investment properties. c)Other tangible assets Other tangible assets are those which are used for charitable purposes but are not considered to be heritage assets. They are stated at cost less accumulated depreciation. The costs of minor additions are not capitalised. Depreciation of fixtures, fittings and equipment, plant and machinery and motor vehicles is on a straight line basis over periods ranging between 3 and 15 years, or 18-20% reducing balance so as to write off each asset over the term of its expected useful life. 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.

1.5Impairment of fixed assets 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). Where it is not possible to estimate the recoverable amount of an individual asset, the Charity estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) prior years. A reversal of an impairment loss is recognised immediately in the statement of financial activities, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6Stock Stocks are stated at the lower of cost and net realisable value.

1.7Cash and cash equivalents 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.

1.8Financial instruments 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 assets are recognised in the Charity’s statement of financial position when the Charity becomes party to the contractual provisions of the instrument.

Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

32 Basic financial assets Basic financial assets, which include trade and other receivables 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. Other financial assets classified as fair value through the statement of financial activities are measured at fair value. Other financial assets Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition. Impairment of financial assets Financial assets, other than those held at fair value through the statement of financial activities, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the statement of financial activities. Derecognition of financial assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity. Classification of financial liabilities Basic financial liabilities Basic financial liabilities 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 receipts discounted at a market rate of interest. Other financial liabilities classified as fair value through the statement of financial activities are measured at fair value. Other financial liabilities Other financial liabilities are initially measured at fair value, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method, with interest expenses recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability to the net carrying amount on initial recognition. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Charity after deducting all of its liabilities. Derecognition of financial liabilities Financial liabilities are derecognised when, and only when, the Charity obligations are discharged, cancelled, or they expire.

1.9Income Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. The following specific policies are applied to particular categories of income: Donations and legacies are included in full in the statement of financial activities when receivable.

Income from investments is included when receivable. Income from charitable activities is accounted for when earned. Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the Charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

33 1.10 Expenditure Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates: Expenditure on raising funds comprises those costs directly attributable to managing the investment portfolio and raising investment income. Expenditure on charitable activities includes those costs incurred by the Charity in the delivery of its objectives. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Support costs are those functions that assist the work of the Charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charities objectives and activities. All costs are allocated between the expenditure categories of the statement of financial activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly; other costs are apportioned on the basis of the proportion of direct expenditure.

1.11 Fund accounting Unrestricted income and expendable endowment funds are available for use at the discretion of the Governors in furtherance of the objectives of the Charity. Unrestricted income and expendable endowment funds include a revaluation reserve representing the restatement of investment assets at market rates due to the related assets being included in those funds. Restricted expendable endowment funds are subjected to restrictions on their expenditure imposed by the donor.

1.12 Taxation The Charity is a registered Charity and is not liable to United Kingdom income tax or corporation tax on charitable activities.

1.13 Employee benefits The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. 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.

1.14 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting judgements and key sources of estimation uncertainty In the application of the Charity’s accounting policies, the directors 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. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below. Critical judgements

Investment properties The Charity accounts for investment properties in accordance with FRS 102. Investment properties are measured using the revaluation model with movement in valuation reported through the statement of financial activities. The Governors use their judgement to determine the fair value of the investment properties at the reporting date.

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

34 Notes to the Accounts

3 Income (excluding income from investments)

2017 2016 £ £

Equestrian event income 3,497,175 3,392,385 Function and exhibition income 342,812 395,167 Shop sales 408,203 394,538 Film income 5,717 7,750 Restaurant income 118,737 114,439 Other income 2,611 3,192 Timber and woodlands income 46,982 39,066

4,422,237 4,346,537

Viewing fees - House and Gardens 725,902 709,564

Donations and grants 1,753,641 1,210,038

6,901,780 6,266,139

The total turnover of the group for the year has been derived from its principal activities wholly undertaken in the United Kingdom.

4 Income from investments 2017 2016 £ £

Income from investment property 3,059,490 3,066,075 Investment income from securities 44,377 33,442 Bank deposit interest 2,769 2,894

3,106,636 3,102,411

Less: Expenses (922,884) (805,967)

2,183,752 2,296,444

BurBguhlerghyl eHyo Huoseu sPer ePsreersveartviatonio Tnr uTsrtu List mLiimteitded AnAnnnuual aRl eRepoportrt a andnd A Accccoouunntts 22010126/1317 35 Notes to the Accounts

5 Analysis of total expenditure 2017 2017 2017 2016 Direct Support costs costs Total Total £ £ £ £

Expenditure on raising funds Equestrian event expenditure 3,228,410 - 3,228,410 3,124,945 Expenditure on investment properties 956,117 256,081 1,212,198 1,062,352 House showing expenditure 519,484 139,136 658,620 695,835 Timber and woodland expenses 252,221 67,553 319,774 318,971

4,956,232 462,770 5,419,002 5,202,103 Expenditure on charitable activities House showing 1,297,647 347,555 1,645,202 1,652,332 Maintenance of heritage property 645,619 172,918 818,537 1,062,692 Donations 6,950 - 6,950 7,050

1,950,216 520,473 2,470,689 2,722,074 Other expenditure Fines (as reported on page 20) 282,981 - 282,981 -

Total 7,189,429 983,243 8,172,672 7,924,177

Support costs 2017 2016 £ £

Management costs 240,327 226,289 Wages and salaries 470,297 453,145 Overheads 241,711 434,917 Depreciation 5,638 9,619 Governance costs - audit fees 25,270 27,800

983,243 1,151,770

All support costs have been allocated on the basis of the proportion of direct expenditure.

6 Surplus on current year activities 2017 2016 £ £ Surplus on current year activities is stated after charging:

(Loss)/Profit on disposal of tangible fixed assets (1,077) 2,940

Depreciation of tangible assets 154,590 153,530

Auditors' remuneration

- Audit (Charity £19,550 (2016: £18,425)) 25,270 27,800 - Taxation compliance services 1,870 1,870 - Other non-audit services 398 398

Grant from Natural England 658,985 1,094,534 Burgghhleley Hoouussee PPrreesseerrvvatatiioonn Trruusstt LLiimimitteded AAnnunnuall RReepportort a anndd A cAccocuonutsnt 201s 2601/172/13 36 Notes to the Accounts

7 Investment securities

2017 2016 £ £ Group

Quoted investments

Market value at 1 February 2016 1,734,288 1,443,465 Additions 495,494 887,946 Disposals (Proceeds: £475,707, gain: £34,177) (441,530) (492,514) Unrealised gain/(loss) on investments 280,957 (104,609)

2,069,209 1,734,288 Other unquoted investments

Cash held on deposit 303,971 84,028

Market value at 31 January 2017 - Group 2,373,180 1,818,316

Charity

Cost of investment in subsidiaries 48,514 48,514

Value at 31 January 2017 - Charity 2,421,694 1,866,830

Historical cost at 31 January 2017 2,081,344 1,779,962

Quoted investments

The quoted investments consist of holdings of equities, bonds and other managed funds as selected by Cazenove Capital Management Limited using their delegated authority as set out in the Investment Policy on page 22, and have been revalued to reflect their market value at 31 January 2017.

Included within quoted investments is a holding in Cazenove Investment Fund - Income Trust for Charities with a market value of £282,387 (2016: £318,739).

Subsidiary undertakings

The cost of investment in subsidiaries represents the cost of ordinary £1 shares in the wholly owned subsidiary undertakings, Burghley Enterprises Limited, Burghley Horse Trials Limited and Burghley Estate Leisure Limited, all of which are registered in England and Wales.

The principal activities of Burghley Enterprises Limted are the provision of refreshments and the sale of goods and services at Burghley House and property trading activities.

The principal activity of Burghley Horse Trials Limited is the management of a four-star rated equestrian event.

The principal activity of Burghley Estate Leisure Limited is property development.

Further information is summarised in note 19 on page 43.

BurBguhlerghyl eHyo Huoseu sPer ePsreersveartviatonio Tnr uTsrtu List mLiimteitded AnAnnnuual aRl eRepoportrt a andnd A Accccoouunntts 22010126/1317 37 Notes to the Accounts

8 Tangible fixed assets Investment Total Properties Plant Freehold Land and and Buildings Fixtures

£ £ Group Cost At 1 February 2016 53,042,319 1,148,926 Additions 4,453,223 136,678 Disposals (4,347,225) (35,012) Surplus on revaluation of properties 2,000,000 -

At 31 January 2017 55,148,317 1,250,592

Depreciation At 1 February 2016 - 993,399 On disposals - (33,935) Charge for the year - 79,590

At 31 January 2017 - 1,039,054

Net book value At 31 January 2017 55,148,317 211,538

At 31 January 2016 53,042,319 155,527

Charity Cost At 1 February 2016 50,718,662 919,558 Additions 6,776,880 118,436 Disposals (4,347,225) (17,330) Surplus on revaluation of properties 2,000,000 -

At 31 January 2017 55,148,317 1,020,664

Depreciation At 1 February 2016 - 812,460 On disposals - (17,330) Charge for the year - 67,785

At 31 January 2017 - 862,915

Net book value At 31 January 2017 55,148,317 157,749

At 31 January 2016 50,718,662 107,098

Included in additions to investment properties is an amount of £17,649 in relation to borrowing costs which have been capitalised.

Included in additions to investment properties is an amount of £1.7m in relation to new properties which are in the process of being constructed for the Charity and are due to be completed towards the end of 2017. Burgghhleley Hoouussee PPrreesseerrvvatatiioonn Trruusstt LLiimimitteded AAnnunnuall RReepportort a anndd A cAccocuonutsnt 201s 2601/172/13 38 Notes to the Accounts

8 Tangible fixed assets (continued)

Investment properties 2017 2016 £ £ Historic cost 24,510,590 24,287,837 Revaluation reserve 30,637,727 28,637,727

Net book value at 31 January 2017 55,148,317 52,925,564

The Governors, using their knowledge of the property portfolio, have increased the value of the investment properties by £2,000,000at 31 January 2017.

9 Heritage assets Burghley Chattels Chattels Total House at at Heritage and probate market assets grounds value value

£ £ £ £ Group and charity

Cost As at 31 January 2016 6,431,759 3,953,793 243,300 10,628,852 Additions 889,796 - 8,000 897,796

At 31 January 2017 7,321,555 3,953,793 251,300 11,526,648

Depreciation As at 31 January 2016 979,365 - - 979,365 Charge for the year 75,000 - - 75,000

At 31 January 2017 1,054,365 - - 979,365

Net book value At 31 January 2017 6,267,190 3,953,793 251,300 10,472,283

At 31 January 2016 5,452,394 3,953,793 243,300 9,649,487

In accordance with the Charity’s accounting policy, no value has been included within the financial statements in respect of the freeholds of the public area of Burghley House and Burghley Lake. Recent developments to Burghley House and grounds are included at cost and and depreciated.

The Trust’s large collection of fine art is made up of many items, including furniture, paintings, silver, miniatures, books, ceramics, tapestries and jewellery. This collection was acquired by the Earls and Marquesses of Exeter over many years and is therefore relevent to the understanding of Burghley House and its history. The Governors have decided that, given the large number and diversity of items in the collection, together with the difficulty and onerous cost of establishing a market value, to include the collection at the probate value given in October 1981 when it was transferred to the Trust by the Executors of the Will of the 6th Marquess of Exeter. The House, grounds and chattels are insured for £326 million.

Items of fine art and other chattels at Burghley House acquired since 2001 are included at market value. These include a portrait of Brownlow, 9th Earl of Exeter by Angelica Kauffmann purchased by the Trust in November 2003. The Governors, using their knowledge of the collection of fine art at Burghley valued this picture at £200,000 at 31 January 2017 (cost £200,000). The Governors’ policy regarding the maintenance, preservation and recording of the chattels, together with information on the access given to the public is stated on page 12.

BurBguhlerghyl eHyo Huoseu sPer ePsreersveartviatonio Tnr uTsrtu List mLiimteitded AnAnnnuual aRl eRepoportrt a andnd A Accccoouunntts 22010126/1317 39 Notes to the Accounts

9 Heritage assets (continued)

Five year financial summary of heritage transactions: 2017 2016 2015 2014 2013 £ £ £ £ £

Burghley House & grounds - cost of additions 897,796 1,446,636 78,936 156,395 56,459

10 Stocks Group Group Charity Charity 2017 2016 2017 2016 £ £ £ £

Showing supplies 105,510 83,294 - - Estate maintenance supplies 1,059 2,750 1,059 2,750

106,569 86,044 1,059 2,750

11 Debtors Group Group Charity Charity 2017 2016 2017 2016 £ £ £ £

Trade debtors 31,818 236,214 20,088 36,189 Amounts owed by subsidiary undertakings - - 98,701 2,386,271 Other debtors 151,168 171,956 151,168 171,956 Prepayments and accrued income 240,112 200,907 161,674 118,586

423,098 609,077 431,631 2,713,002

12 Creditors: amounts falling due within one year

Group Group Charity Charity 2017 2016 2017 2016 £ £ £ £

Bank loans and overdraft 1,740,000 2,770,630 1,740,000 2,770,630 Trade creditors 284,320 261,088 241,467 254,906 Taxes and social security costs - 2,200 - - Other creditors 133,184 76,863 33,089 18,317 Accruals and deferred income 976,612 813,137 792,091 511,707

3,134,116 3,923,918 2,806,647 3,555,560

13 Pension costs

The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £196,226 (2016: £184,261).

Burgghhleley Hoouussee PPrreesseerrvvatatiioonn Trruusstt LLiimimitteded AAnnunnuall RReepportort a anndd A cAccocuonutsnt 201s 2601/172/13 40 Notes to the Accounts

14 Unrestricted income and expendable endowment funds

Group Group Charity Charity 2017 2016 2017 2016 £ £ £ £

Unrestricted income fund Balance brought forward at 1 February 2016 (2,549,336) 4,282,012 (225,764) 4,282,012 Surplus for the year 1,331,349 620,959 1,835,743 720,164 Transfer to the Unrestricted expendable endowment fund (718,473) (7,452,307) (3,541,164) (5,227,940)

Balance carried forward at 31 January 2017 (1,936,460) (2,549,336) (1,931,185) (225,764)

Unrestricted expendable endowment fund

Balance brought forward at 1 February 2016 63,533,089 54,230,153 61,209,517 54,230,153 Surplus for the year 509,155 831,114 4,761 831,113 Surplus/(loss)on disposal of property and investments 35,844 24,124 35,844 24,124 Revaluation of investment property 2,000,000 1,100,000 2,000,000 1,000,796 Unrealised (loss)/gain on investment revaluation 280,957 (104,609) 280,957 (104,609) Transfer from the Unrestricted income fund 718,473 7,452,307 3,541,164 5,227,940

Balance carried forward at 31 January 2017 67,077,518 63,533,089 67,072,243 61,209,517

Realised element of unrestricted expendable endowment fund 41,539,538 35,929,767 41,633,467 33,705,399 Unrealised gains on investment properties 25,151,731 27,498,956 25,052,527 27,399,752 Unrealised gain on investment securities 386,249 104,366 386,249 104,366

Balance carried forward at 31 January 2017 67,077,518 63,533,089 67,072,243 61,209,517

Unrestricted income and unrestricted expendable endowment funds are both available for charitable purposes, and the distinction is historical, merely to record the allocation of income and movements on income and expendable endowment funds.

15 Restricted expendable endowment fund 1 February 31 January 2016 Income Expenditure 2017 £ £ £ £

Brewhouse fund 1,079,700 - - 1,079,700 Garden of Surprises fund 52,860 - 4,760 48,100

1,132,560 - 4,760 1,127,800

The Brewhouse fund consists principally of monies received from the Heritage Lottery Fund towards the project to convert the Brewhouse at Burghley into a visitor attraction. The related expenditure amounting to £2,606,442, has been capitalised as a heritage asset being an improvement to Burghley House and Grounds. The Garden of Surprises fund consists principally of monies received from donors towards the project to create an Elizabethan trick garden at Burghley as a visitor attraction. The related expenditure amounting to £1,319,345 has been capitalised as being an improvement to Burghley House and Grounds. BBuurgrghlehleyy H Hoouussee P Prreesseerrvvaattioionn T Trruusst tLi Limmiitteedd AAnnnunualal ReReportport a andnd A Acccoucontunst 2s 012201/613/17 41 Notes to the Accounts

16 Analysis of assets between funds Unrestricted Unrestricted Restricted Total income fund expendable expendable endowment endowment £ £ £ £ Fund balances at 31 January 2017 are represented by: Investment securities - 2,373,180 - 2,373,180 Tangible fixed assets - 211,538 - 211,538 Heritage assets - 9,344,483 1,127,800 10,472,283 Investment properties - 55,148,317 - 55,148,317 Net current (liabilities) (1,936,460) - - (1,936,460)

(1,936,460) 67,077,518 1,127,800 66,268,858

17 Reconciliation of operating deficit to net cash outflowfrom operating activities

2017 2016 £ £

Net income/(expenditure) for the reporting period (as per the statement of financial activities) 4,152,545 2,466,828 Depreciation 154,590 153,530 (Gains)/losses on investments (2,316,801) (1,019,515) Dividends, interest and rents from investments (2,183,752) (2,296,444) Loss/(profit) on the sale of fixed assets 1,077 (2,940) (Increase)/decrease in stocks (20,525) 190,971 (Increase)/decrease in debtors 185,979 (3,876) Increase/(decrease) in creditors 240,828 (813,604)

Net cash provided by (used in) operating activities 213,941 (1,325,050)

Burgghhleley Hoouussee PPrreesseerrvvatatiioonn Trruusstt LLiimimitteded AAnnunnuall RReepportort a anndd A cAccocuonutsnt 201s 2601/172/13 42 Notes to the Accounts

18 Governors and employees Group Group Charity Charity 2017 2016 2017 2016 Number Number Number Number

The number of Governors who served the Group and the Company during the year was: 11 11 11 11

The average monthly number of persons employed by the Group and the Company during the year was:

Office and management 22 22 22 22 House showing 55 53 50 49 Maintenance and forestry 16 16 16 16 Equestrian event 10 11 - -

103 102 88 87

Employment costs £ £ £ £

Wages and salaries 1,968,620 1,919,874 1,610,910 1,540,728 Social security costs 165,990 160,081 131,425 123,761 Other pension costs (note 13) 196,226 184,261 162,477 152,203

2,330,836 2,264,216 1,904,812 1,816,692

The number of employees whose emoluments, as defined for taxation purposes, amounted to over £60,000 in the year was 3 in the range £90,000 to £100,000 (2016 - 3). Total remuneration of key personnel was £289,559 (2016: £283,284). Total employer’s pension contributions for those employees was £35,231(2016: £34,348).

No remuneration was paid to any Governor in the year. Travelling and accomodation expenses of £4,983 were reimbursed to two Governors in the year (2016: £9,219 to two Governors).

19 Subsidiary companies

Burghley Enterprises Limited - Company number 02332264

The turnover of Burghley Enterprises Limited amounted to £878,080 (2016: £1,196,583), and the net profit arising of £310,037 (2016: £438,934) is due to be paid under Gift Aid to Burghley House Preservation Trust Limited. During the year the parent company charged £39,000 in rent (2016: £39,000).

The results of Burghley Enterprises Limited for the year ended 31 January 2017 are shown below. Audited accounts are filed with the Registrar of Companies. 2017 2016 £ £

Turnover and other income 878,080 1,196,583 Cost of sales and expenses (568,043) (757,649)

Profit for the year 310,037 438,934

Shareholders funds 48,514 48,514

BBuurgrghlehleyy H Hoouussee P Prreesseerrvvaattioionn T Trruusst tLi Limmiitteedd AAnnnunualal ReReportport a andnd A Acccoucontunst 2s 012201/613/17 43 Notes to the Accounts

19 Subsidiary companies (continued)

Burghley Horse Trials Limited - Company number 07087188

The turnover of Burghley Horse Trials Limited amounted to £3,497,175 (2016: £3,392,385), and the net profit arising of £147,523 (2016: £146,391) is due to be paid under Gift Aid to Burghley House Preservation Trust Limited.During the year the parent company charged £115,291 in rent (2016: £115,000).

The results of Burghley Horse Trials Limited for the year ended 31 January 2017 are shown below. Audited accounts are filed with the Registrar of Companies. 2017 2016 £ £

Turnover and other income 3,497,175 3,392,385 Cost of sales and expenses (3,349,652) (3,245,994)

Profit for the year 147,523 146,391

Shareholders funds 1 1

Burghley Estate Leisure Limited - Company number 08601360

The income of Burghley Estate Leisure Limited amounted to £15,000 (2016: £21,250), and there was no profit in the year. During the year the parent company charged £15,000 in rent (2016: £21,250).

Audited accounts are filed with the Registrar of Companies.

20 Related party transactions

Following the Charity Commissioners' agreement, Burghley House Preservation Trust Limited and the Trustees of the 6th Marquess of Exeter Will Trust are sharing income and expenditure in relation to the showing of Burghley House in a proportion based on their respective ownerships of Burghley House.

Relative to the Deed of Apportionment agreed with the Trustees of the 6th Marquess of Exeter Will Trust, they were charged £18,484 (2016: £18,452) for management and maintenance services. The amount owed to the company in respect of these services at 31 January 2017 was £18,484 (2016: £18,797).

The Trustees of the 6th Marquess of Exeter are also due to receive £122,936 as a licence fee from Burghley Horse Trials Limited (2016: £121,029) and the amount outstanding at 31 January 2017 amounted to £36,311 (2016: £20,774).

21 Capital commitments At 31 January 2017 The Charity had contracted capital expenditure of £108,000(2016: £310,000).

22 Contingent liabilities A grant has been received from the Football Foundation to be used on the construction of facilities for a local football club. Should the terms and conditions of the grant not be adhered to within a specified period an element of the grant may be repayable. The Governors expect the terms and conditions to be adhered to and therefore believe no further disclosure is necessary in these financial statements. A legal charge has been granted in relation thereto.

Burgghhleley Hoouussee PPrreesseerrvvatatiioonn Trruusstt LLiimimitteded AAnnunnuall RReepportort a anndd A cAccocuonutsnt 201s 2601/172/13 44 23 Comparative information

Consolidated Statement of Financial Activities incorporating the income and expenditure account for the year ended 31 January 2016

2016 2016 2016 2016 Unrestricted Unrestricted Restricted Total Income Expendable Expendable Endowment Endowment

£ £ £ £

Income and endowments from:

Donations and grants 230,154 979,884 - 1,210,038 Other trading activities 4,346,537 - - 4,346,537 Income from investments 3,102,411 - - 3,102,411 Income from charitable activities 709,564 - - 709,564 Other income 2,940 - - 2,940

Total income and endowments 8,391,606 979,884 - 9,371,490

Expenditure on:

Expenditure on raising funds 5,154,113 47,990 - 5,202,103 Expenditure on charitable activities 2,616,534 100,780 4,760 2,722,074

Total expenditure 7,770,647 148,770 4,760 7,924,177

Net gains on investments - 1,019,515 - 1,019,515

Net income/(expenditure) 620,959 1,850,629 (4,760) 2,466,828

Transfers between funds (7,452,307) 7,452,307 - -

Net Movement in Funds (6,831,348) 9,302,936 (4,760) 2,466,828

Balance brought forward 4,282,012 54,230,153 1,137,320 59,649,485

Balance carried forward (2,549,336)63,533,089 1,132,56062,116,313

BurBghluregyh lHeyo uHsoeu Psree Pserervseatrivoant iTornu sTtr uLimist Litemdit Aned nAunnual Ralep Repoort rat nadnd Acc Acocouunntsts 20 201165//1716 45 Legal and Administrative Details Governors

Sir John Nutting Bt. QC (Chairman) J C S Chenevix-Trench Esq E G Clive, Esq A J Feilden, Esq Sir Giles Floyd Bt E M Harley, Esq The Hon Edward Leigh-Pemberton W A Oswald, Esq W H M Parente Esq S J Richmond-Watson Esq B T J Stevens, Esq

Key personnel

House Director Miranda Rock Estates Director D J Pennell Esq (Savills plc) Finance Director & Company Secretary J E P Fitch Esq Director of the Burghley Horse Trials Elizabeth Inman

Company number 951524 (England and Wales)

Charity number 258489 Registered office 61 St Martins Stamford Lincolnshire PE9 2LQ

Rural Estate & Property Managers Investment Advisors Savills plc Cazenove Capital Management Limited 33 Margaret Street 12 Moorgate London London W1G 0JD EC2R 6DA

Bankers Independent Auditors National Westminster Bank plc Saffery Champness LLP 52 High Street 71 Queen Victoria Street Stamford London Lincolnshire EC4V 4BE PE9 2YH

Solicitors Farrer & Co LLP 66 Lincoln's Inn Fields London WC2A 3LH

Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17

46