annual report 2017 layout 1€¦ · under the direction of alwyn pollard and rachel starmer, ......

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

www.burghley.co.uk

With thanks to Lee Hellwing for providing photographs

http://www.burghley.co.uk

Who we are and what we do

Burghley House is one of the largest and grandest houses of the firstElizabethan Age. Built and mostly designed by William Cecil, Lord HighTreasurer to Queen Elizabeth I, between 1555 and 1587, the main part ofthe House has 35 major rooms on the ground and first floors. There aremore than 80 lesser rooms and numerous halls, corridors, attics and serviceareas. 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 theHouse on behalf of the Burghley House Preservation Trust.

The Trust was established as a charity in 1969 by the Sixth Marquess ofExeter. The objects of the charity are set out in full in the memorandumand articles. However the key focus of the charity is best summarised asthe advancement of historic and aesthetic education and the preservationof buildings of national importance, and in particular the preservation andshowing 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 thisgreat historic house, the formation of the Trust ensures that BurghleyHouse will be preserved and conserved for the nation.

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

Wherever possible, the annual surplus is used to repair, restore andmaintain the fabric of the buildings at Burghley House and the importantcollection of works of art and furniture that they contain. The Governorsalso carry out their activities with a view to conserving the environment ofland and buildings owned by the charity.

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

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

For more than 25 years he steered the Trust through its early period. He did so with acombination of charm, flair and wisdom. He set standards for how things should be done, heorganised a financial structure for the Trust: and he prioritised expenditure at the House andon the Estate. He brought to the tasks which he undertook all the skills which he had learnedin 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 bythe number of those from the Estate, from Stamford, and from the surrounding villages whoattended his funeral. To adapt a famous adage written, albeit in Latin, elsewhere, if you seek hismonument, 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. In2016, for example, we were able to complete the restoration of the interiors and masonrywork 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 theemployees of Cummins who cleared the site and the skills of the workforce of Messenger, alocal building firm, we completed the rehabilitation of the Walled Garden. It is now entirelyrestored to its former glory: the walls have been repointed, a large number of bricks have beenreplaced, and all the coping stones reconstructed or repaired.

2016 also marked the completion of the conversion of the Dairy built by the 3rd Marquess inthe late 1860s. This historic building, situated inside Burghley Park, has been re-roofed andconverted 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 beenredecorated; 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 of6th Marquess' Will Trust which enabled the Governors to go ahead with the projects listedabove.

We continue to make discoveries about Burghley's history. Last year, as Jon Culverhouse, ourcurator, reveals later in this Report, he predicted a link between an engraving made of the RedDrawing Room in 1821 by Lady Sophia Pierrepoint, a carved giltwood pole-screen foundrecently in an old furniture store, a console table situated in the Brown Drawing Room and apanel, always known to exist, consisting of a tree and flying insects painted by the fascinatingbut notorious Elizabeth Chudleigh, Duchess of Kingston, who was tried and found guilty ofbigamy by the House of Lords in 1776. Thanks to Jon's remarkable intuition the pole-screen, acarved 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


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popular in 2016. The Governors of the Trust attach importance to these tours since theyconstitute a significant element in our charitable objectives. I commend to you Rachel’s reviewin this Report headed "Education at Burghley." We have won several awards for the quality ofour tours and Alwyn and Rachel deserve the thanks of all of us for the contribution which theyand their team make to educating child and adult alike about the history of Burghley and itsplace 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 atBurghley. 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 agreat Queen", as he described his work at Burghley. Another was dedicated to thecontributions to the Burghley Collection made by the Georgian Earls of Exeter during the 18thcentury. A third was of sculpture, held in the Sculpture Garden, designed to show how metalcan 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 BurghleyGame and Country Fair, a Live Promotions Concert starring Bryan Ferry, a Battle PromsConcert, a Film Festival and three separate Car Rallies for TVR owners, Rolls Royceenthusiasts and devotees of Aston Martins. Well in excess of 40,000 visitors enjoyed theseattractions.

The 2016 Burghley Horse Trials, under the patronage, among others, of Land Rover and theskilful direction of Elizabeth Inman, proved a great success. The number attending over the fourdays 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 NewZealand taking first, second, third and fourth places.

Outside the Park we embarked on an ambitious project, in conjunction with Morris Homes, tobuild 24 houses at Barnack Road on the west side of Stamford and 48 houses on the formerTown football field which those who follow events at Burghley will recollect was moved threeyears ago to a site on the north side of Stamford. We are on target to complete theconstruction 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 compiledby Josh Fitch, whose firm guidance ensures our solvency. We have maintained our policy ofmaking a significant contribution to our portfolio of investments in order to increase ourmore liquid assets.

None of the achievements which I have touched on above, and which are expanded later inthis Report, would have been possible without the industry and dedication of our employeesunder 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 warmlyfor their contributions to the success of 2016 at Burghley.

Sir John Nutting Bt QCChairman


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The visitor experience at Burghley While the Park, Orangery Restaurant and Courtyard Shop are open throughout the winter, the House’sState Rooms, Garden of Surprises and Sculpture Garden are open from mid-March until the end ofOctober. The State Rooms are closed only on Fridays to enable maintenance and conservation work tobe carried out and to allow the house to be used for private events and filming. Almost 60,000 peoplevisited the House last year and a further 47,500 visited the gardens. This is a similar number to recentyears. In addition to these visitors many attended private functions and weddings as well as larger scalefestivals 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 tore-design the Park and make architectural changes to the House and the ancillary buildings centred aroundthe Chestnut and Stable Courtyards. It was Brown’s longest commission which he described as “twentyyears pleasure”. To celebrate the tercentenary of Brown’s birth, a new exhibition was created at the HouseEntrance featuring among other exhibits, a new, hand drawn map of the Park as it is today, showing everytree and boundary, the painstaking work of cartographer, James Byatt (shown on the back cover of thisReport). Special talks and tours of the Park were also arranged as part of the celebrations, to allow visitorsto explore areas of the parkland which are not normally accessible.

In addition to the Capability Brown exhibition, this year’s Brewhouse Treasury exhibition, ‘The Georgiansat Burghley’, displayed items collected bythe Earls of Exeter during the reigns ofGeorge I to George IV. It included manypieces previously not exhibited; fineglassware, items of silver-gilt and anexceptional volume of botanicalillustrations, as well as pieces of Europeanporcelain, in particular a superb George IIsilver-gilt helmet-shaped ewer, made bythe leading goldsmith of the time,Benjamin Pyne in 1727. The Royal Arms ofthe ewer, and its date, suggest that thiswas the Almoner’s fee received byBrownlow, 8th Earl of Exeter at theCoronation of George II in 1727. The roleof Grand Almoner has been held by Earlsand Marquesses of Exeter since the early17th Century.

In addition to the permanent collection ofitems in the Sculpture Garden, anexhibition is staged each year with adifferent theme. The 2016 SculptureGarden exhibition, ‘Metallic’, revealed howsculptors can exploit the flexibility anddiversity of metal in the pursuit ofsculptural form. It included works in


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stainless steel, copper, iron, aluminiumand bronze, created through casting,welding, engraving and fabrication. Oneof the most eye catching pieces was‘Iron Stag’ by Dido Crosby, which fromone angle looks like an intact beast, itssurface covered with fur, yet whenviewed from the opposite side, itsinteriors are revealed, showing howthe sculpture is constructed from partsbolted together. The drawn division ofthese parts is reminiscent of abutcher’s diagram of an animal’s cutsof meat.

In October the Leicestershire Societyof Botanical Illustrators returned toBurghley to stage a three weekexhibition in the Great Hall, ‘AMedieval Cornucopia’ featuring a widevariety of award winning illustrations.

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

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

Spring Bank Holiday weekend. There was a full range of country pursuits, from angling demonstrations onthe lake to clay shooting and from dog agility races to horse boarding - an exciting extreme sport, wherea 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 starredBryan Ferry. It was also a popular year for car enthusiasts – TVR owners held a rally of over 600 vehicles in April, the


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

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

The Burghley Film Festival in late July/August continues to be a popular event with local visitors andattracted 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 Shopin the Brewhouse, which stocked a huge variety of seasonal gifts and decorations. Large numbers ofshoppers were also attracted to the Christmas Fair and Food Market, run over four days at the end ofNovember. Year on year this event is becoming increasingly popular and, as a result, retail takings werethe 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, botharranged by Burghley’s Director of Education, Alwyn Pollard.


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The Walled Kitchen Garden

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

In 2014, nearly 310 years since its creation, a major restoration project, with financial help from NaturalEngland, 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 800metres of coping stone have been cleaned, restored and reset on the walls to protect them from wateringress for the next three hundred years. Of the old and venerable fruit trees in the garden we have savedand carefully cultivated the surviving Lord Burghley and Barnack Beauty apples and planted many more asreplacements.

Repairing and restoring the fabric of Burghley

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

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

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Burghley is one of the finest examples of a late 16th century ‘prodigy house’, built by one of QueenElizabeth’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 yearperiod. 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 (amember of the Cecil family), and a curatorial department led by Jon Culverhouse, who has been lookingafter the Collection since 1984. The Collection has been comprehensively inventoried and investigated bya 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 oftemperature and humidity as far as is possible within an historic building. Sensitive objects have beenallocated specialised storage areas. A detailed photographic record of all objects was commenced twentyyears 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. Otherareas are always available for scholastic research by appointment. We have a pro-active approach toloaning objects to other collections, both nationally and internationally. In recent years, major exhibitionshave travelled from Burghley to museums in the USA and Japan. A major development of display facilitiesat the House, undertaken in 2003 with assistance from the Heritage National Lottery Fund, has provideda substantial specialised display area.

Each year exhibitions are mounted to concentrate on aspects of the Collection. This opportunity is usedto show visitors objects that are not always on display. There is also an ongoing programme of rotationof 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 beenable to make funds available for the purchase of an object of outstanding importance, sold or transferredby previous generations. As the Trust exists for the preservation of the House and its contents, there isno need for a disposals’ policy.

The Burghley House Collection

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Repairing and restoring Burghley fine artA Pole-screen, a Monkey and a Libertine.

An engraving made by Lady Sophia Pierrepont, drawn in 1821, shows the Red Drawing Room at Burghleyin clear detail. In the left-hand corner, partially hidden by a sofa, stands a large pole-screen. The panel ispainted 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). Theequally ornate brass pole,topped with a large, carvedpineapple finial, was discovereda week later elsewhere in thehouse. The similarity in carvingwas recognised and it was foundto fit the base perfectly. Acarved giltwood framecontaining a painting on vellumof an allium plant, insects, abird’s nest with chicks and ashell, was hanging as a picture inthe Saloon; the image being anexact match for the panel drawnby Lady Sophia.

A search of an 18th Century inventory of the Houseand an early guidebook gave information:1763 Inventory —“the drawing room… a fire screen on agilt stand painted by ye Hon. ble. Miss Chudleigh, maid ofHoner to ye Dowager Princess of Wales”.

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

The various components were taken to the workshopof Anthony Beech, the furniture conservator based atBurghley. The carving of the base and finial was ofextremely high quality and, whilst it had suffered smalldamages, was in generally good condition. The surfacewas gently cleaned with tri-ammonium citrate, appliedand removed with cotton wool bud sticks. Cleaningrevealed burnished gold, intended to give contrastinghighlights and flat areas to the carved surfaces.


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After the removal of surface dirt, close inspection of an area on the front leg, where something seemedto 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 spentpondering what could have formed a part of an exuberant rococo scene and required a chain to secureit.

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 thedecoration of a console table, standing in the Brown Drawing Room (below.).

A rapid close inspection showed that the monkey on the consolestand was very clearly not originally part of that piece. Not onlywas its placement slightly uncomfortable but the means by whichit had been fixed there was even more so—a large and clumsywood-screw had anchored the poor creature by its testicles tothe carving of the table. Encircling the monkey’s waist is a broadbelt 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. Anthonycarefully drilled out the remains of the peg from the monkey andthat from the stand; the insertion of a new peg at the same anglelocated the figure perfectly. Turning to the panel that LadySophia’s drawing shows so clearly, it was apparent that thepainting found in the Saloon had not been intended to serve as awall picture; the reverse of the frame was gilded and part-burnished, and this was clearly intended to be visible in threedimensions.

Although the painting itself is fairly naïve, its painterwas certainly not so. The story of Elizabeth Chudleighwas one of the greatest scandals of the time. She wasa lady-in-waiting to the Dowager Princess of Wales,famous for her licentious London lifestyle, whomarried firstly the 3rd Earl of Bristol, and secondly,bigamously, the 2nd Duke of Kingston, from whom sheinherited a fortune. Eventually arrested and chargedwith bigamy, the Duchess was tried as a peer inWestminster Hall and found guilty. Retaining herfortune, she hurriedly left England and lived in greatstyle on an estate that she purchased in Estonia. Shealso had property in Paris, where she died in 1788, stilllegally Countess of Bristol.

Now fully conserved, the pole-screen is an astonishingpiece, so imposing that it can only sit comfortably inone of the larger staterooms at Burghley, where it willbe seen by all visitors to the House. The detectivestory involved in its finding and re-creation has beenone of the most enjoyable moments of my curatorshipof Burghley - a House that has certainly not yetsurrendered all its secrets!

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The annual Event was once again a huge success. Over150,000 visitors attended over four days in September,attracted not only by the excitement of theinternational equestrian competition but also by theopportunity for a last social ‘get together’ with familyand friends before autumn sets in, not to mentionsome early Christmas shopping amidst our worldrenowned ‘pop-up shopping mall’.

Traditionally Saturday is the best attended day, whencrowds in excess of 60,000 regularly flock from allover the country, and indeed from overseas, to watchthe world’s elite horse and rider combinations tacklethe famous 6km cross country course, set amidst thebeautiful parkland which surrounds Burghley House.Early risers woke to a lovely autumn day, but as themorning progressed so did the rain. Previouslyforecast, there is no doubt this played a part in aslightly reduced spectator attendance and alsoinfluenced the competition itself, with riderscompeting later in the day tending to incur moreproblems on the challenging cross country course.

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

The week of the event offers much to our visitors. Main competition and shopping apart, there is muchmore besides; including a busy secondary arena presenting Pony Club team jumping, young horse andshow 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 facilitieshave recently been upgraded for our many Members, some of whom elect to take out caravanmembership and a small community of regular enthusiasts take advantage of a temporary caravan sitelocated 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. Temporaryfacilities, which have to be installed annually in just under 6 weeks, would be adequate to serve a smalltown, including electricity, sanitation requirements and catering. Medical provision for both the public andathletes is extensive, as is veterinary provision for the competition horses. The preparations for runningthe equestrian competition are wide ranging: 1000 officials on Saturday alone are invited and nearly 300radios, covering 14 networks, are needed for communications.

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

Land Rover Burghley Horse Trials

Image: Peter Nixon


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

In the winter season Christmas themed days are more popular than ever, with schools enjoying the extrafreedom of being able to use the Old Kitchen and Great Hall throughout the day for sessions andworkshops such as ‘Tudor Christmas Food’ and ‘Victorian Toys and Games at Christmas’. In the summerour themed House Tours are, despite curriculum changes, as popular as ever. Schools increasingly wish toincorporate practical sessions into their visits so our ‘Tudor Music and Dance’ workshop has becomepopular. Also, we have introduced a new ‘Tudor Spinning and Weaving’ workshop, which includes a shorttalk about Tudor cloth production and natural dyes, then a demonstration of yarn production on a spinningwheel, plus the chance for the children to have a go with a drop spindle and do some basic weaving on apeg loom. Feedback on this workshop has been encouraging, with children especially enjoying theopportunity 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 afocus on covering the curriculum. Therefore, we are promoting more possibilities for these types of visitsin the Garden of Surprises and Sculpture Garden. A ‘Wild Weaving’ option has been added to our populargardens workshops and our storytelling sessions introduced in 2015, have proved popular with Key StageOne 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 toexperience Burghley. Also available in the school holidays are our holiday workshops, which take place inour Sculpture Garden classroom each school holiday. Whilst the workshops are aimed primarily at school


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children, we have found that they are popular with all ages. Activities, including badge making, caterpillarwelly pegs and mini-beast fridge magnets are enjoyed by all ages from toddlers to teenagers. Even someadult 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 SandraPeck, 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 flowersfrom the gardens at Burghley for their inspiration where possible. We have also held several one daycourses aimed at new painters who wish to take up watercolour painting as a hobby, but perhaps lack theconfidence and knowledge to get started.

Teachers are now able to subscribe to a dedicated e-newsletter which was introduced last year. Thenewsletters are distributed each term and allow teachers to keep up to date with all the latestdevelopments 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 theexperience we want our visiting students to have: ‘Thank you for showing me and my class around, wethoroughly 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 Houseand in the Gardens. Our main objective is for visiting students to take back to school many of the newand exciting things they have learned, but we also aim for them to have had a fabulous time at Burghleyand to go home having thoroughly enjoyed their visit.


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Looking to the futureOur 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, bothby adjusting the placement of furniture to follow historic layouts and, wherever possible, by removingrope barriers, allowing our visitors to move more freely around the rooms. With the assistance of TMLighting, we have continued with the substantial four year programme of improving the lighting in theState Rooms by the addition of a significant number of low-voltage spot and picture lights, electrificationof nineteenth century gas lights and the upgrading of all fluorescent tubing to low voltage strip lightingand 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 ourvisitors now benefit from an entry ticket that acts as an annual pass, allowing repeat visits throughoutthe year. The flexibility of the annual pass has been well received. Our full calendar of events willcontinue to provide an occasion for visitors of all ages and interests to come to Burghley. The BurghleyFilm 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 differentage groups, with the hope that we can offer awidely attractive programme combining classicswith contemporary releases. Our calendar ofevents also includes the three seasonal FineFood Markets that coincide with park eventssuch as the TVR and Rolls Royce car rallies andthe Christmas Market. We will be running anew season of Spooky Tours at Halloween andthe 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 the80’s’ for a concert in the Park. We are hopeful that these events will appeal to visitors of all ages andinterests.

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 thereign of Queen Victoria. This exhibition includes a great variety of objects, not normally on display tovisitors, including jewellery, glassware, an exquisite fan, a rare child’s wax doll, porcelain and paintings, theGarter Star awarded to Brownlow, 2nd Marquess of Exeter and one of the finest silver-gilt racingtrophies in the collection. The exhibition highlights the family’s love of breeding prize-winning nativeshorthorn cattle and also reflects their close friendship with Queen Victoria and Prince Albert, who in1844 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 displaysome 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 atBurghley and which celebrates the life of the ‘father of landscape architecture’. While Brown worked onmany sites, Burghley provides a shining example of both his gardening, architectural and building skills.


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At Burghley he not only landscaped the grounds but also designed interiors within the house andconstructed buildings such as the Orangery, Stables and Temple. Our dedicated exhibition at the entranceto the House, ‘Capability Brown at Burghley’, and the accompanying information leaflet shows his workat 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 Burghleyas a part of their curriculum studies. We also look to offer enjoyable learning activities for visiting familiesand 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 offerboth 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 muchappreciated by our school visitors. Our themes are constantly having to be adapted to meet the everchanging curriculum needs of schools.

In recent years we have begun to identify and develop environmental workshops and these, linked withan art and design aspect, make use of the abundant natural world that exists at Burghley. These visits arebecoming 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 focusedmore on the history of the House, rather than specific historic periods. So we will be looking to monitorthis change and develop programmes for visiting schools which can accommodate this emerging area ofinterest.

• 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 quinquennialinspection of Burghley House, more specifically the on-going programme of stonework repairs. Work willtake place to complete the restoration of the metalwork on the Bottle Lodges at the entrance ofBurghley Park. In addition there are plans to make significant improvements to the wall surroundingBurghley Park thanks to a grant from Natural England.

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

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


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Strategic ReportAchievements 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 theincome account whilst the ongoing property development programme has added tothe strength of the balance sheet.

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

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

During the year the Trust was fined after pleading guilty to charges brought by theHealth and Safety Executive. This involved a tragic accident involving the luggage liftat 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 theTrust 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 theticket price although overall visitor numbers remained at around 100,000, a similarlevel to the previous few years.

Costs of generating funds

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

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

Cost of charitable activities

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

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 funddeficit of £4,760 (2016: deficit £4,760).

The net surplus is £4,152,545 (2016: surplus £2,466,828) and has been added tounrestricted income, unrestricted expendable endowment and restrictedexpendable 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 theunrestricted expendable endowment (2016: £7,452,308) in accordance with thereserves policy below.

The results of the subsidiary companies, Burghley Enterprises Limited and BurghleyHorse 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 inthe accounts for the significant cost of dealing with the backlog of dilapidations toproperty owned by the Charity. Nevertheless it is necessary to read the accounts inthe knowledge of the quantum of expenditure which is outstanding. These futurecosts are discussed in the reserves policy below.

Reserves policy

The Governors have reviewed the Charity’s reserves policy, taking into accountfuture income projections and expenditure plans in line with the strategic plan ofBurghley House Preservation Trust Limited, together with the associated risks andopportunities.

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

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

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

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


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Investment policy

The Governors have reviewed and retained the Charity’s investment policy, whichstates that the Governors of the Trust wish to pursue a policy that provides revenuefor its current purposes and enhances income and capital growth over the longerterm, thereby enabling them to meet their current and future objectives inaccordance with the purposes of the Charity.

The Governors, in delegating their investment security management to CazenoveCapital Management Limited, require the managers to pay attention to the standardinvestment criteria, namely the suitability of the class of investment and the need fordiversification insofar as is appropriate to the circumstances of the Charity. The samecriteria apply to the Agents managing their investment property portfolio.

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

During the year to 31 January 2017, the investment security portfolio generated totalrevenue 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 theprevailing market conditions during the year, the Governors were satisfied with theoverall 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 areregular reviews of the condition of Burghley House by a qualified architect. Annualexhibitions and other events are held at Burghley House to attract visitor interest(detailed in this report). Continued inward investment is made to the propertyportfolio and there is also an ongoing programme of investment diversity. TheBurghley Horse Trials is managed with the intention of being the best equestrianevent 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 theCharity Commission’s revised general guidance on public benefit when reviewing theCharity’s objectives and planning future activities.

Donations

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


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Structure, Governance andManagementCompany

The Governors are Directors of the Charity for the purposes of the CompaniesAct 2006. The Charity is a Charitable Company limited by guarantee and was setup 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 yearwere:

Sir John Nutting Bt. QC (Chairman)J C S Chenevix-Trench Esq E G Clive, EsqA J Feilden, EsqSir Giles Floyd BtE M Harley, EsqThe Hon Edward Leigh-PembertonW A Oswald, EsqW 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 normalcourse 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 membersto the Governing Body. Any proposals from such a panel is brought to the fullGoverning Body for its approval. In addition to receiving an induction pack, newGovernors undergo an orientation day with the Chairman and Estates Director ofthe Charity to brief them on their legal obligations under charity law, the decisionmaking processes and the recent financial performance of the Charity. Governorsare encouraged to attend appropriate external training events where these facilitatethe undertaking of their role and are also provided with legal and accounting updatesas required.

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


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The Governors' responsibilities

The Governors (who are also Directors for the purposes of company law) areresponsible for preparing the Governors’ report and the financial statements inaccordance with applicable law and United Kingdom Accounting Standards (UnitedKingdom Generally Accepted Accounting Practice).

Company law requires the Governors to prepare financial statements for eachfinancial year which give a true and fair view of the state of affairs of the Charity andthe group and the incoming resources and application of resources, including the netincome and expenditure for that period. In preparing those financial statements, theGovernors 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 isinappropriate to presume that the Charity will continue in business.

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

Auditors

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

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

Burghley Enterprises Limited

Burghley Enterprises Limited is a wholly owned subsidiary of Burghley HousePreservation Trust Limited.

The company’s principal activities are the provision of goods and services atBurghley 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 FeildenMrs M R Rock


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Burghley Horse Trials Limited

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

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

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

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

Burghley Estate Leisure Limited

Burghley Estate Leisure Limited is a wholly owned subsidiary of Burghley HousePreservation 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 ExecutiveCommittee of Governors with reference to external factors when appropriate.

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Independent auditors' report to the members and Governors of

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

This report is made solely to the company’s members and the trustees, as a body, in accordance with Chapter 3 of Part 16of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members andtrustees those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullestextent permitted by law, we do not accept or assume responsibility to anyone other than the company, the company’smembers 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 thecompany for the purposes of company law and the Trustees for the purposes of charity law) are responsible for thepreparation 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. Ourresponsibility is to audit and express an opinion on the financial statements in accordance with applicable law andInternational Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing PracticesBoard’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 givereasonable 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’scircumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accountingestimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financialand non-financial information in the Strategic Report and the Governors’ Report to identify material inconsistencies withthe audited financial statements and to identify any information that is apparently materially incorrect based on, or materiallyinconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparentmaterial 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.

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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 yearfor 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 2011require 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, wehave 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 LLPChartered Accountants & Statutory Auditors71 Queen Victoria StreetLondon EC4V 4BE


Consolidated Statement of Financial Activitiesincorporating the income and expenditure accountfor the year ended 31 January 2017

2017 2017 2017 2017 2016Unrestricted Unrestricted Restricted Total TotalIncome Expendable Expendable

Endowment Endowment

Notes £ £ £ £ £

Income and endowments from:

Donations and grants 3 1,094,656 658,985 - 1,753,641 1,210,038Other trading activities 3 4,422,237 - - 4,422,237 4,346,537Income from investments 4 3,106,636 - - 3,106,636 3,102,411Income from charitable activities 3 725,902 - - 725,902 709,564Other 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 5,202,103Expenditure 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 1,132,560 62,116,313 59,649,485

Balance carried forward 14,15 (1,936,460) 67,077,518 1,127,800 66,268,858 62,116,313

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

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

Comparative figures are included in note 23.

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29

Company Registration No. 951524

Sir John Nutting Bt. QC - ChairmanGovernor

Sir Giles Floyd Bt.Governor

Balance Sheetsas at 31 January 2017

Group Group Charity Charity2017 2016 2017 2016

Notes £ £ £ £

Fixed assetsInvestment securities 7 2,373,180 1,818,316 2,421,694 1,866,830Tangible assets 8 211,538 155,527 157,749 107,098Investment properties 8 55,148,317 53,042,319 55,148,317 50,718,662Heritage 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 assetsStocks 10 106,569 86,044 1,059 2,750Debtors 11 423,098 609,077 431,631 2,713,002Cash 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 fallingdue 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

FundsUnrestricted 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 27,504,118Restricted 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.

Consolidated Cash Flow Statementfor the year ended 31 January 2017

2017 2016Notes

£ £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 2,296,444Proceeds from the sale of property, plant and equipment 1,667 3,600Purchase of property, plant and equipment (including capitalised borrowing costs) (3,787,697) (2,146,918)Proceeds from sale of investments 3,122,932 1,655,406Purchase 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 667,989 679,461Notice deposits (less than 3 months) 303,971 84,028

Total cash and cash equivalents 971,960 763,489

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Notes to the Accounts1 Accounting policies

Charity informationBurghley House Preservation Trust is a Charity domiciled and incorporated in England and Wales. The registered office is61 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 hasagreed to accept liability of an amount not exceeding £1, should the Charity be wound up. At 31 January 2017 the totalof such guarantees amounted to £12.

1.1 Accounting conventionThese financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement ofRecommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standardapplicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102)), the FinancialReporting 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 thesefinancial statements are rounded to the nearest £.

The financial statements have been under the historical cost convention, as modified by the revaluation of investment assetsappropriated to the Charity by the Burghley Estate Trust under the Deed of Appropriation dated 6 April 1987 and assetsreleased by the Executors of the Estate of the 6th Marquess of Exeter. The freehold land and buildings held as investmentproperties forming the major part of the assets appropriated from Burghley Estate Trust and released from the Estate ofthe 6thMarquess of Exeter, have been reflected in the accounts at their market value at 31 January 2017. Investmentsecurities are reflected in the accounts at market value. The principal accounting policies adopted are set out below.

1.2 Basis of consolidationThe group financial statements consolidate the financial statements of the Charity and its subsidiaries for the year ended31 January 2017. The statement of financial activities (SOFA) and the balance sheet consolidate the financial statements ona line by line basis where appropriate. No separate SOFA has been presented for the Charity alone as permitted by Section408 of the Companies Act 2006. Details concerning the subsidiary companies, along with their results and financial positionare set out in note 19.

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

1.4 Tangible fixed assets and depreciationa) Heritage assetsHeritage assets are the tangible assets of the Charity that are of historical importance and are held to advance thepreservation, conservation and educational objectives of the Charity and through public access contribute to the nation’sculture and education.The House, grounds and chattels transferred from the Burghley Estate Trust and under the terms of the Will of the 6thMarquess of Exeter, and subsequent development expenditure on these assets, are considered to be heritage assets and areintegral to Burghley House.Included within improvements to Burghley House and grounds are fixtures and fittings in relation to the Brewhouse andthe Garden of Surprises which are included at cost and depreciated on a straight line basis calculated at an annual rate of20% 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 theBrewhouse and Garden of Surprises) are included at cost and have not been depreciated. Chattels acquired prior to 2001are included at their probate value and chattels acquired since 2001 are included at market value, neither have beendepreciated.Expenditure on the conservation and preservation of Burghley House and its collection is charged to the unrestrictedincome 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 valuemodel and stated at its fair value as the reporting end date. The surplus or deficit on revaluation is recognised in thestatement of financial activities.


Although this accounting policy is in accordance with the applicable accounting standard, FRS 102 “The Financial ReportingStandard applicable in the UK and Republic of Ireland”, it is a departure from the general requirement of the CompaniesAct 2006 for all tangible fixed assets to be depreciated. In the opinion of the directors, compliance with the standard isnecessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factorsreflected in the annual valuation and the amount of this which might have been charged cannot be separately identified orquantified.

Borrowing costs on loans taken out specifically for the construction of investment properties are capitalised as part of thecost 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. Theyare 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 3and 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 thecarrying value of the asset, and is recognised in the statement of financial activities.

1.5Impairment of fixed assetsAt each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there isany indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount ofthe asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimatethe recoverable amount of an individual asset, the Charity estimates the recoverable amount of the cash-generating unit towhich 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 estimatedfuture cash flows are discounted to their present value using a discount rate that reflects current market assessments ofthe time value of money and the risks specific to the asset for which the estimates of future cash flows have not beenadjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carryingamount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognisedimmediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss istreated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Wherean impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to therevised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amountthat would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) prioryears. A reversal of an impairment loss is recognised immediately in the statement of financial activities, unless the relevantasset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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

1.7Cash and cash equivalentsCash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments withoriginal maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in currentliabilities.

1.8Financial instrumentsThe Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other FinancialInstruments 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 thecontractual provisions of the instrument.

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


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Basic financial assetsBasic financial assets, which include trade and other receivables and cash and bank balances, are initially measured attransaction price including transaction costs and are subsequently carried at amortised cost using the effective interestmethod, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present valueof the future receipts discounted at a market rate of interest. Other financial assets classified as fair value through thestatement of financial activities are measured at fair value.

Other financial assetsTrade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active marketare classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interestmethod, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition ofinterest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debtinstrument 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 thedebt instrument to the net carrying amount on initial recognition.

Impairment of financial assetsFinancial assets, other than those held at fair value through the statement of financial activities, are assessed for indicatorsof 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 afterthe initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss isrecognised in the statement of financial activities.

Derecognition of financial assetsFinancial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when ittransfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Classification of financial liabilities

Basic financial liabilitiesBasic financial liabilities are initially recognised at transaction price, unless the arrangement constitutes a financingtransaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rateof interest. Other financial liabilities classified as fair value through the statement of financial activities are measured at fairvalue.

Other financial liabilitiesOther financial liabilities are initially measured at fair value, net of transaction costs. They are subsequently measured atamortised 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 interestexpense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cashpayments 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 enteredinto. An equity instrument is any contract that evidences a residual interest in the assets of the Charity after deducting allof its liabilities.

Derecognition of financial liabilitiesFinancial liabilities are derecognised when, and only when, the Charity obligations are discharged, cancelled, or they expire.

1.9IncomeIncome 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. Thefollowing 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 hasentitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the incomewill be received and the amount can be measured reliably and is not deferred.


1.10 ExpenditureExpenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fullyrecovered, 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 raisinginvestment income.

Expenditure on charitable activities includes those costs incurred by the Charity in the delivery of its objectives. It includesboth 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 charitiesobjectives and activities. All costs are allocated between the expenditure categories of the statement of financial activitieson a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly; othercosts are apportioned on the basis of the proportion of direct expenditure.

1.11 Fund accountingUnrestricted income and expendable endowment funds are available for use at the discretion of the Governors infurtherance of the objectives of the Charity. Unrestricted income and expendable endowment funds include a revaluationreserve representing the restatement of investment assets at market rates due to the related assets being included in thosefunds.

Restricted expendable endowment funds are subjected to restrictions on their expenditure imposed by the donor.

1.12 TaxationThe Charity is a registered Charity and is not liable to United Kingdom income tax or corporation tax on charitableactivities.

1.13 Employee benefitsThe costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required tobe 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 terminatethe employment of an employee or to provide termination benefits.

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

2 Critical accounting judgements and key sources of estimation uncertaintyIn the application of the Charity’s accounting policies, the directors are required to make judgements, estimates andassumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. Theestimates and associated assumptions are based on historical experience and other factors that are considered to berelevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on anongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where therevision affects only that period, or in the period of the revision and future periods where the revision affects both currentand future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount ofassets and liabilities are outlined below.

Critical judgements

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


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Notes to the Accounts

3 Income (excluding income from investments)

2017 2016£ £

Equestrian event income 3,497,175 3,392,385Function and exhibition income 342,812 395,167Shop sales 408,203 394,538Film income 5,717 7,750Restaurant income 118,737 114,439Other income 2,611 3,192Timber 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 3,066,075Investment income from securities 44,377 33,442Bank deposit interest 2,769 2,894

3,106,636 3,102,411

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

2,183,752 2,296,444


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36


5 Analysis of total expenditure2017 2017 2017 2016

Direct Supportcosts costs Total Total

£ £ £ £

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

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

1,950,216 520,473 2,470,689 2,722,074Other expenditureFines (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 240,327 226,289Wages and salaries 470,297 453,145Overheads 241,711 434,917Depreciation 5,638 9,619Governance 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 activities2017 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 1,094,534Burghley House Preservation Trust Limited Annual Report and Accounts 2016/17


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7 Investment securities

2017 2016£ £

Group

Quoted investments

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

2,069,209 1,734,288Other 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 CapitalManagement Limited using their delegated authority as set out in the Investment Policy on page 22, and have been revaluedto 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 marketvalue 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 subsidiaryundertakings, Burghley Enterprises Limited, Burghley Horse Trials Limited and Burghley Estate Leisure Limited, all of whichare registered in England and Wales.

The principal activities of Burghley Enterprises Limted are the provision of refreshments and the sale of goods andservices 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.



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8 Tangible fixed assets Investment TotalProperties Plant

Freehold Land andand Buildings Fixtures

£ £GroupCostAt 1 February 2016 53,042,319 1,148,926Additions 4,453,223 136,678Disposals (4,347,225) (35,012)Surplus on revaluation

of properties 2,000,000 -

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

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

At 31 January 2017 - 1,039,054

Net book valueAt 31 January 2017 55,148,317 211,538

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

CharityCostAt 1 February 2016 50,718,662 919,558Additions 6,776,880 118,436Disposals (4,347,225) (17,330)Surplus on revaluation

of properties 2,000,000 -

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

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

At 31 January 2017 - 862,915

Net book valueAt 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.



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8 Tangible fixed assets (continued)

Investment properties 2017 2016£ £

Historic cost 24,510,590 24,287,837Revaluation 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£2,000,000 at 31 January 2017.

9 Heritage assets Burghley Chattels Chattels TotalHouse at at Heritage

and probate market assetsgrounds value value

£ £ £ £Group and charity

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

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

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

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

Net book valueAt 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 ofthe freeholds of the public area of Burghley House and Burghley Lake. Recent developments to Burghley House and groundsare 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 andis therefore relevent to the understanding of Burghley House and its history. The Governors have decided that, given thelarge number and diversity of items in the collection, together with the difficulty and onerous cost of establishing a marketvalue, to include the collection at the probate value given in October 1981 when it was transferred to the Trust by theExecutors 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 aportrait 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 withinformation on the access given to the public is stated on page 12.



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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 Charity2017 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 Charity2017 2016 2017 2016

£ £ £ £

Trade debtors 31,818 236,214 20,088 36,189Amounts owed by subsidiary undertakings - - 98,701 2,386,271Other debtors 151,168 171,956 151,168 171,956Prepayments 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


£ £ £ £

Bank loans and overdraft 1,740,000 2,770,630 1,740,000 2,770,630Trade creditors 284,320 261,088 241,467 254,906Taxes and social security costs - 2,200 - -Other creditors 133,184 76,863 33,089 18,317Accruals 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 ofthe Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charityto the fund and amounted to £196,226 (2016: £184,261).



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14 Unrestricted income and expendable endowment funds


£ £ £ £

Unrestricted income fundBalance brought forward at 1 February 2016 (2,549,336) 4,282,012 (225,764) 4,282,012Surplus for the year 1,331,349 620,959 1,835,743 720,164Transfer 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 54,230,153Surplus for the year 509,155 831,114 4,761 831,113Surplus/(loss)on disposal of property and investments 35,844 24,124 35,844 24,124Revaluation of investment property 2,000,000 1,100,000 2,000,000 1,000,796Unrealised (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 33,705,399Unrealised gains on investment properties 25,151,731 27,498,956 25,052,527 27,399,752Unrealised 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 endowmentfunds.

15 Restricted expendable endowment fund1 February 31 January

2016 Income Expenditure 2017£ £ £ £

Brewhouse fund 1,079,700 - - 1,079,700Garden 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.



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16 Analysis of assets between fundsUnrestricted Unrestricted Restricted Totalincome fund expendable expendable

endowment endowment£ £ £ £

Fund balances at 31 January 2017are represented by:Investment securities - 2,373,180 - 2,373,180Tangible fixed assets - 211,538 - 211,538Heritage assets - 9,344,483 1,127,800 10,472,283Investment properties - 55,148,317 - 55,148,317Net 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 outflow from 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)



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18 Governors and employeesGroup Group Charity Charity2017 2016 2017 2016

Number Number Number Number

The number of Governors who served theGroup and the Company during the yearwas: 11 11 11 11

The average monthly number of personsemployed by the Group and the Companyduring the year was:

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

103 102 88 87

Employment costs £ £ £ £

Wages and salaries 1,968,620 1,919,874 1,610,910 1,540,728Social security costs 165,990 160,081 131,425 123,761Other 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 1,196,583Cost of sales and expenses (568,043) (757,649)

Profit for the year 310,037 438,934

Shareholders funds 48,514 48,514



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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 3,392,385Cost 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 6thMarquess of Exeter Will Trust are sharing income and expenditure in relation to the showing of Burghley House in aproportion 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 werecharged £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 TrialsLimited (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 berepayable. The Governors expect the terms and conditions to be adhered to and therefore believe no further disclosureis necessary in these financial statements. A legal charge has been granted in relation thereto.


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23 Comparative information

Consolidated Statement of Financial Activitiesincorporating the income and expenditure accountfor the year ended 31 January 2016

2016 2016 2016 2016Unrestricted Unrestricted Restricted Total Income Expendable Expendable

Endowment Endowment

£ £ £ £

Income and endowments from:

Donations and grants 230,154 979,884 - 1,210,038Other trading activities 4,346,537 - - 4,346,537Income from investments 3,102,411 - - 3,102,411Income from charitable activities 709,564 - - 709,564Other 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 - 5,202,103Expenditure 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 1,132,560 62,116,313


Legal and Administrative Details

Governors

Sir John Nutting Bt. QC (Chairman)J C S Chenevix-Trench EsqE G Clive, EsqA J Feilden, EsqSir Giles Floyd BtE M Harley, EsqThe Hon Edward Leigh-PembertonW A Oswald, EsqW H M Parente EsqS J Richmond-Watson EsqB T J Stevens, Esq

Key personnel

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

Company number 951524 (England and Wales)

Charity number 258489

Registered office61 St MartinsStamfordLincolnshirePE9 2LQ

Rural Estate & Property Managers Investment Advisors Savills plc Cazenove Capital Management Limited33 Margaret Street 12 MoorgateLondon LondonW1G 0JD EC2R 6DA

Bankers Independent Auditors National Westminster Bank plc Saffery Champness LLP52 High Street 71 Queen Victoria StreetStamford LondonLincolnshire EC4V 4BEPE9 2YH

SolicitorsFarrer & Co LLP66 Lincoln's Inn FieldsLondonWC2A 3LH

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