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THE MITCHELLS & BUTLERS CHARITABLE TRUSTS

Charity number: 528922

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

For the year ended 5 April 2016


CONTENTS

Trustees' Report

Independent Examiner's Report

Statement of Financial Activities

Balance Sheet

Notes to the Financial Statements

Page

10


TRUSTEES' REPORT


The Trustees present their annual report together with the financial statements of The Mitchells & ButlersCharitable Trusts (the 'Charity') for the year ended 5 April 2016.

The Trustees confirm that the annual report and financial statements of the Charity comply with the cunentstatutory requirements, the requirements of the Charity's governing document and the provisions of theStatement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in 2015.

Reference and Administrative Information

Charity Name The Mitchells & Butlers Charitable Trusts

Charity Registration Number 528922

The Board of Trustees

The Board of Trustees who served the charity during the year and up to the date of this report were as follows:

Mitchells & Butlers Trust Funds Ltd (Corporate Trustee)

The Directors of Mitchells & Butlers Trust Funds Ltd during the period and up to the date of this report were asfollows'.

Mr Martin John GoslingMr Andrew John JonesMr Gregory McMahon (resigned 22 July 2016)Mr Craig Gordon ProvettMrs Susan Katrina MartindaleMr Darryl Shaun Thomson (appointed 17 March 2016)

Mitchells & Butlers Welfare Funds Limited

The Directors of Mitchells & Butlers Welfare Funds Limited during the period and up to the date of this reportwere as follows:

Mr Martin John GoslingMr Andrew John JonesMr Gregory McMahon (resigned 22 July 2016)Mr Craig Gordon ProvettMrs Susan Katrina MartindaleMr Darryl Shaun Thomson (appointed 17 March 2016)

Accountants

PKF Cooper Parry Group LimitedChartered AccountantsNo. 8 Calthorpe RoadEdgbastonBirminghamB15 1QT

Investment Managers

Barclays WealthBarclays Bank pic.One Colmore SquareBirminghamB4 6ES

Bankers

Barclays Bank pic.351/359 Soho RoadBirminghamB21 9SE


TRUSTEES' REPORT


Constitution and general objectives

Constitution

The Charity is made up of four distinct linked charities (the 'Charities' ). namely:

Sir William Waters Butler Welfare Fund (the 'Welfare Fund') (Registered Charity Number 528922-1)

The Henry Mitchell Memorial Scholarship Fund (the 'Scholarship Fund') (Registered Charity Number 528922-2)

The Sir John Edwin and Arthur Mitchell Fund (the 'Mitchell' Fund) (Registered Charity Number 528922-3)

Mitchells 8 Butlers Trusts Common investment Fund (the 'CIF') (Registered Charity Number 528922-4)

The Scheme dated 7 April 2008 made by the Charity Commission to establish the CIF contained a uniting

direction, providing that all the charities administered by the Mitchells & Butlers Welfare Funds Limited andMitchells & Butlers Trust Funds Ltd as at the date of the Scheme (including CIF) should be treated as a singlecharity for the purpose of Part II (accounting) and Part I (registration) of the Charities Act 1993 (now part 8 andpart 4 of the Charities Act 2011).

Governing Document

The Welfare FundThe governing document Is a Trust Deed dated 26 February 1954.

The Scholarshi FundThe Scholarship Fund is governed by a Trust Deed dated 28 February 1939, Supplemental Deed dated 28August 1959 and Deed of Transfer dated 23 January 1968.

The Mitchell FundThis Fund is administered in accordance with a Charity Commission Scheme dated 22 June 2006. This schemereplaces the former trusts of the Charity.

Common Investment FundThe Common Investment Fund is governed by a Charity Commission Scheme dated 7 April 2008.

Recruitment and Appointment of Trustees

The Welfare FundThe power of appointing new trustees rests with the directors of Mitchells & Butlers Pic.

T~hS h I hi F dThe power of appointing new trustees rests with the trustees for the time being of the Charity.

The Mitchell FundThe power of appointing new trustees rests with the trustees for the time being of the Charity.


TRUSTEES' REPORT


Trustee induction and Training

Each person who becomes a director of one of the two Trustee Companies is given a copy of the governingdocuments of the Charities and of the Charity Commission publication CC3 'The Essential Trustee'The directors of the Trustee Companies take such action as they consider necessary to keep themselvesinformed of changes in charity law and governance.

Risk Management

The Trustees have assessed the major risks to which the Charities are exposed, in particular those related tothe operations and finances of the Charities. and are satisfied that systems and procedures are in place tomanage exposure to the major risks.

The Trustees are satisfied that adequate systems are in place to detect and minimise the main strategic,business and operational risks which the Charities may face.

The Trustees consider that the major risk to which the Charities are subject to is the volatility in the world' sstock, bond and financial markets under the current economic conditions and the consequential uncertainty in

terms of the return on the Charities' investments. The Trustees seek advice from the Charities' professionalinvestment advisers, namely Barclays Wealth, in relation to managing the risk.

Ontanisationai Structure

All matters of policy and decisions on the making of grants are determined by the Trustees who meet annuallyand at such other times as circumstances require,

Objectives and Activities

The Welfare FundThe objects of this Fund are primarily to assist pupils resident in Birmingham and Smethwick to attend school.universities and other places of higher education, and secondly to make grants for the relief of necessitousresidents of Birmingham and Smethwick.

The Trustees further these objects by making grants to students who fall within the above criteria. Applicants arerequired to complete an application form, which includes assessment of financial circumstances in order toidentify those in need of financial assistance. Should funds permit, applications are considered for hardshipgrants.

The Trustees further these objects by making grants to people who fall within the above criteria.

T~hS h I hi F sThe objects of this Fund are for such exclusively charitable educational purposes related to the brewing industryas the Trustees in their discretion may think fit.

In a letter dated 11 October 2002, the Charity Commission confirmed that 'charitable educational purposesrelated to the brewing industry' should be applied as including charitable educational purposes related tocatering and hotel management, as well as brewing itself.

The Trustees further the objects of the Charity by making grants to charities or educational institutions forcourses or projects that fall within the ambit of the objects.


TRUSTEES' REPORT


Objectives and Activities (continued)

The Mitchell FundThe objects of this Fund are the relief of need, hardship or distress of employees and former employees in thebrewing and catering industries or the licensed retail industry and the dependents of such employees andformer employees.

The Trustees are advised on investment matters by the Trust's investment advisers, Barclays Wealth, who havebeen given authority to manage the portfolio on a discretionary basis. The charity does not employ staff andhence has no key management personnel.

Grant Nfaking Policies

Grants are made from the Welfare Fund, the Scholarship Fund, and the Mitchell Fund.

Public Benefit

The Trustees have considered the guidance issued by the Charity Commission on 'Charities and Public Benefit'.

The objects of the Welfare Fund, the Scholarship Fund and the Mitchell Fund clearly come within thedescriptions of charitable purposes as set out in the Charities Act 2011 and there are identifiable benefits fromthe grants made. Grants are only made in accordance with the charitable objects of the fund in question.

As indicated above in considering individual applications for educational grants in the case of the Welfare Fund,the means of applicants and their families are considered and the Trustees target assistance to applicants with

low incomes.

Achievements and performance

Review of activities

The Welfare FundThe gross income of the fund for the year ended 5 April 2016 amounted f36,913 (2015:f33,031).

The total grant expenditure for the year amounted to F31,452 (2015: f27,347).

At 5 April 2016, the value of the net assets of the Welfare Fund totalled f1,438,527 (2015: f1,562,760),

Grants were made during the course of the financial year to (a) the King Edward School's Foundation to supportpupils at the school and to (b) individuals in accordance with grant criteria.

The Scholarshi FundThe gross income of the fund for the year ended 5 April 2016 amounted f10468 (2015; f9365),

The total grant expenditure for the year amounted to f2,375 (2015:f3,125),

At 5 Apriil 2016, the value of the net assets of the Scholarship Fund totalled f492,864 (2015:f524,579).

Grants were made during the course of the financial year to (a) the Institute of Brewing and Distilling and to (b)individuals in accordance with grant criteria.

4


TRUSTEES' REPORT


Achievements and performance

Review of activities fcontfnuerfj

The Mitchell FundThe gross income of the fund for the year ended 5 April 2016 amounted 535,416 (2015:631,683).

The total grant expenditure for the year amounted to E7,925 (2015:828,571).

At 5 April 2016, the value of the net assets of the Mitchell Fund totalled 61,377,581 (2015: E1,459,563).

Grants were made during the course of the financial year to The Licensed Trade Charity to fund formeremployees of Mitchells & Butlers and also grants were made directly to former employees of Mitchells & Butlers,

Investment policy

The Trustees make their grants from the income generated by investments held. The Charities' investments aremanaged by the Charities Team of Barclays Wealth Investment Managers.

The Trustees' investment philosophy is to adopt a medium/balanced risk investment strategy, investing in anappropriate mix of equities, fixed interest and monetary assets and alternative assets as deemed appropriateand consistent with the Trustees' attitude to risk and the Trustees' requirements for income and capital growth.

The Trustees have not applied any social, environmental or ethical considerations in their investment policies.

The investment objectives are:

(i) The creation of a sufficient financial return to enable the Participating Charities to carry out theirpurposes effectively and without interruption.

(ii) The maintenance and, if possible, enhancement of the investment funds whilst they areinvested.

The Trustees recognise that the returns on equities, while expected to be greater over the longer-term thanthose of fixed interest and monetary assets, are likely to be more volatile. Investment in a mix of asset classesshould nevertheless provide the levels of return required and mitigate volatility for the Trust to achieve itsobjectives.

The following restrictions are placed upon the investments of the Common Investment Fund:

(i) Investments should be generally marketable.(ii) No investment in any company quoted on the London Stock Exchange or Investment in pooled

vehicles (with the exception of Mitchells & Butlers pic Ordinary Shares) should exceed 10% ofthe value of total equity porffolio in the CIF.

The Trustees receive from the Charities' Investment Managers a written report and valuation for theirconsideration at their meetings. A representative of the Manager will meet Trustees at least once a year toreview performance over the preceding period and to discuss and agree the future investment strategy.

At least once a year the Manager will provide a written comparison of the performance of the Investment Fundsover the last twelve months.


TRUSTEES' REPORT


Financial Review

Reserves Policy

Total funds held in the name of Mitchefis & Butlers Charitable Trusts at the balance sheet date are 53,308,972(2015: 53,546,902). Of these, endowed funds are 52,982,189 (2015: 53,245,853) and free reserves are5326,783 (2015:5301,049), split as follows:

Mitchell FundWelfare FundScholarship Fund

5 174,5285 51,2995 100,956

The Trust needs a sufficient level of free reserves to meet grants and expenses payable in the following year.This reserves policy is reviewed annually by the Trustees. In the case of the Mitchell Fund, as the objects havewidened under the Charity Commission Scheme mentioned above, it is anticipated that more grants will bemade in order to reduce the large reserves held.

Investment Performance

The Trustees report that the Common Investment Fund has seen a decrease in value during the year of5275,093 (8.1%).The current total fund value is 53,110,377 (2015:53,385,470).

Website

The Trustees have established a website which sets out the objectives of the three trusts and the individualsdi tit ti iidibi d h. Th b it dd i ~ht t . . k

Statement of Trustees' Responsibilities

The trustees are responsible for preparing the Trustees' Annual Report and the financial statements in

accordance with applicable law and United Kingdom Accounting Standards (United Kingdom GenerallyAccepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements foreach financial year which give a true and fair view of the state of affairs of the charity and of the incomingresources and application of resources of the charity for that period. In preparing these financial statements, thetrustees 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; and~ prepare the financial statements on the going concern basis unless it is inappropriate to presume that

the charity will continue in business.

THE MITCHELLS 8( BUTLERS CHARITABLE TRUSTS

TRUSTEES' REPORT


Statement of Trustees' Responsibilities (continued)

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at

any time the financial position of the charity and enable them to ensure that the financial statements comply with

the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust

deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonablesteps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included

on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination offinancial statements may differ from legislation in other jurisdictions.

This report was approved by the Trustees on 13 December 2016 and signed on their behalf, by:

Andrew Jones Martin Gosling


INDEPENDENT EXAIIIIINER'S REPORT TO THE TRUSTEES OFTHE MITCHELLS & BUTLERS CHARITABLE TRUSTS

I report on the accounts of The Mitchells 8 Butlers Charitable Trusts for the year ended 5 April 2016, which areset out on pages 9 to 19.

Respective responsibilities of trustees and examiner

The Charities' Trustees are responsible for the preparation of the accounts. The Charities' Trustees considerthat an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and thatan independent examination is needed.

It is my responsibility to;

~ examine the accounts under section 145 of the 2011 Act,~ to follow the procedures laid down in the general Directions given by the Charity Commission under section

145(5)(b) of the 2011 Act: and~ to state whether particular matters have come to my attention.

Basis of independent examiner's report

My examination was carried out in accordance with the General Directions given by the Charity Commission. An

examination includes a review of the accounting records kept by the charity and a comparison of the accountspresented with those records. It also includes consideration of any unusual items or disclosures in the accounts,and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken donot provide all the evidence that would be required in an audit and consequently no opinion is given as towhether the accounts present a 'true and fair view' and the report is limited to those matters set out in thestatement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

1) which gives me reasonable cause to believe that in any material respect the requirements:

~ to keep accounting records in accordance with section 130 of the 2011 Act; and~ to prepare accounts which accord with the accounting records and comply with the accounting

requirements of the 2011 Act

have not been met; or

2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of theaccounts to be reached.

Simon Atkins

PKF Cooper Parry Group LimitedChartered Accountants

Date: 13 December 2016

No. 8 Calthorpe RoadEdgbastonBirminghamB151QT

THE MITCHELLS 8 BUTLERS CHARITABLE TRUSTS

STATEMENT OF FINANCIAL ACTIVITIES


Income

Investment income

Total income

Expenditure

Note

82 797 82 797 74 079

82 797 - 82 797 74 079

2016 2015Endowment Restricted Unrestricted Total Total

Funds Funds Funds Funds Fundsf f 8

Charitable activitiesGovernance costs 5 356

41,752 353 144

41,7878 500

59,1879 208

Totalexpenditure 5 356 41 752 3 179 50 287 68 395

Net (outgoing)fincomingresources for the year beforetransfers

Transfers between funds 11

(5,356) 41,045 (3,179) 32,510 5,684

556 ~41 045 40 489

Net (outgoing)/incomingresources for the year beforeother recognised gains andlosses

Other recognised gains andlossesUnrealised gains oninvestments 7Realised gains/(losses) oninvestments

(4,800)

(257,222)

1 642

37,310 32,510 5,684

(11,502) (268,724) 84,160

~74 ~1716 ~3775

Net movement of funds being net income/(expenditure) for the year (263,664) 25,734 (237,930) 86,069

Reconciliation of fundsFund balances as at 6 April 2015

Fund balances as at 5 April 2016

3 245 853

2,982, 189

301 049 3 546 902 ~40 833

326,783 3,308,972 3,546,902

Afi income and expenditure relates to continuing activities.

All gains and losses recognised in the year are included above.

The notes on pages 11 to 19 form part of these financial statements,

THE MITCHELLS 8( BUTLERS CHARITABLE TRUSTS

BALANCE SHEET

as at 5 April 2016

Note 2016 2015

Fixed assetsinvestments 2,995,047 3,262, 103

Current assetsInvestmentsCash at bank and in hand

115,330207,231

123,367170,271

Creditors: amounts falling duewithin one year

322,561

(8,636)

293,638

(8,839)

Net current assets 313,925 284,799

Total assets less current liabilities 3,308,972 3,546,902

Funds

Endowment fundsUnrestricted funds

2,982,189326,783

3,245,853301,049

Totalfunds 11&12 3,308,972 3,546,902

The notes on pages 11 to 19 form part of these financial statements.

These financial statements were approved by the Board of Trustees on the 13 December 2016 and are signedon their behalf by:

I) g lac~Andrew Jones Martin Gosling

lg


NOTES TO THE FINANCIAL STATEMENTS


1 Accounting policies

1.1 Basis of preparation

The financial statements have been prepared under the historical cost with the exception of investmentswhich are included at market value.

The financial statements have been prepared in accordance with the Statement of RecommendedPractice - 'Accounting and Reporting by Charities', and applicable accounting standards.

The Sir William Waters Butler Welfare Fund, Henry Mitchell Memorial Scholarship Fund and The SirJohn Edwin and Arthur Mitchell Fund are three separate charities with similar objects and interlinkedtransactions. In accordance with the Charity Commission scheme dated 7 April 2008 the financialtransactions of each chariity are presented in one set of financial statements.

Where appropriate in the notes to the financial statements the following abbreviations have beenadopted.

Sir William Waters Butler Welfare FundThe Henry Mitchell Memorial Scholarship FundThe Sir John Edwin and Arthur Mitchell FundMitchells & Butlers Trusts Common Investment Fund

Welfare FundScholarship FundMitchell FundCommon investment Fund

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements havebeen prepared in accordance with Accounting and Reporting by Charities: Statement of RecommendedPractice applicable to charities preparing their accounts in accordance with the Financial ReportingStandard applicable in the UK and the Republic of Ireland (FRS 102) issued on 16 July 2014, theFinancial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), theCharities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements have been prepared to give a 'true and fair' view and have departed from theCharities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fairview'. This departure has involved following the Accounting and Reporting by Charities: Statement ofRecommended Practice applicable to charities preparing their accounts in accordance with the FinancialReporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effectivefrom 1 April 2005 which has since been withdrawn.

The financial statements are prepared on a going concern basis under the historical cost convention,modified to include certain items at fair value. The financial statements are prepared in sterling which isthe functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set outbelow. These policies have been consistently applied to afi years presented unless otherwise stated.

The Charity has adopted the SORP (FRS 102) for the first time in the year ended 5 April 2016.

The policies applied under the entity's previous accountancy framework are not materially different toSORP (FRS 102) and have not impacted on net assets or income or expenditure.




1.2 Fund accounting

General funds

General funds are unrestricted funds which are available for use at the discretion of the Trustees in

furtherance of the general objectives of the charity and which have not been designated for otherpurposes.

Restricted funds

Restricted funds are funds which are to be used in accordance with specific restrictions imposed bydonors which have been raised by the charity for particular purposes. The cost of raising andadministering such funds are charged against the specific fund. The aim and use of each restricted fundis set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Endowment fund

Endowment funds represent grants, donations and legacies received where income may be used forgeneral purposes but the capital must be retained.

1.3 Incoming resources

All incoming resources are included in the Statement of Financial Activities when the charity is legallyentitled to the income and the amount can be quantified with reasonable accuracy.

1.4 Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Charitable expenditurecomprises those costs incurred by the charity in the delivery of its activities and the making of grants.

Governance costs include those costs associated with meeting the constitutional and statutoryrequirements of the chariity and include independent examiner's fees and costs linked to the strategicmanagement of the charity.

All costs are allocated between the expenditure categories of the Statement of Financial Activities on abasis designed to reflect the use of the resource. Costs relating to a particular activity comprise bothcosts that can be allocated directly to such activities and those costs of an indirect nature necessary tosupport them.

Grants payable are charged in the year when the offer is made except in those cases where the offer isconditional, such grants being recognised as expenditure when the conditions attaching are fulfilled.Grants offered subject to conditions which have not been met at the year end are noted as acommitment, but not accrued as expenditure.




1.$ Investments

Investments are a form of basic financial instrument and are initially recognised at their transactionvalue and subsequently measured at their fair value as at the balance sheet date using the closingquoted market price. The statement of financial activities includes the net gains and losses arising onrevaluation and disposals throughout the year.

The Trust does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the charity is that of volatility in equity markets and investmentmarkets due to wider economic conditions. the attitude of investors to investment risk, and changes in

sentiment concerning equities and within particular sectors or sub sectors.

1.6 Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise.

Realised gains and losses on investments are calculated as the difference between salesproceeds and their opening carrying value or their purchase value if acquired subsequent to the firstday of the financial year.

Unrealised gains and losses are calculated as the difference between the fair value at the year end andtheir carrying value.

Investments are stated at market value as at the balance sheet date. The statement of financialactivities includes the net gains and losses arising on the revaluation and disposals throughout the year.

1.7 Debtors and creditors receivable I payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year arerecorded at transaction price. Any losses arising from impairment are recognised in expenditure.

1.6 Cashflow

The Charity has taken advantage of the exemption from the requirement to prepare a cashfiowstatement under SORP FRS 102 Bulletin 1 due to it being a small charity with income below F500,000.




2 Investment Income

Dividend incomeBank interest

2016 2015Total Total

6 6

82,335 73,698462 381

82,797 74,079

3 Analysis of Resources Expended by Activities

The Welfare FundThe Scholarship FundThe Mitchell Fund

GrantFunding

6

31,4522,3757,925

SupportCosts

6

35

2016Total

6

31,4522,3757,960

2015Total

6

27,3473,125

28,715

41,752 35 41,787 59,187

2015 59,043 144 59,187

4 Governance CostsEndowment

Fund6

Restrictedfunds

8

Unrestrictedfunds

f2016Total

6

2015Total

6Accountancy and independentexaminationInterest payableStockbroker's feesLegal fees

5,356

3,12024

3,12024

5,356

3,12083

5,585420

5,356 3,144 8,500 9,208

2015 5,585 3,623 9,208




5(a) Grants Payable —Individuals

The Welfare FundThe Mitchell FundThe Scholarship Fund

2016Total

Number

2522

2016Total

F

21,4521,2002,000

2015Total

Number

2753

2015Total

5

16,3475,6002,000

29 24,652 35 23,947

5(b) Grants Payable —Institutions

The Welfare FundThe Scholarship FundThe Mitchell Fund

2016Total

5

10,000375

6,725

2015Total

6

11,0001,125

22, 971

17,100 35,096

Afi grants payable in the year were in furtherance of the charitable objectives as described in thetrustees' report. The following grants to institutions were made:

Licensed Trade CharitySandwell CollegeInstitute of Brewing & Distilling

2016Total

56,725

10,000375

2015Total

522,97111,000

1,125

Trustee remuneration and expenses

During the year no Trustees received any remuneration (2015:5NII).During the year no Trustees received any benefits in kind (2015:KNII).

During the year no Trustees received any reimbursement of expenses (2015:ENII).




7 Fixed Asset Investments

Market ValueAt 6 April 2015AdditionsDisposalsRevaluations

ListedSecurities

6

3,262, 103758,209

(756,541)(268,724)

At 5 April 2016 2,995,047

Investments at market value comprise:Market Value

2016 20156 6

Cost2016 2015

6 fListed investments 2,995,047 3,262, 103 2,324, 174 2,153,129

All fixed asset investments are held in the UK.

Material investments

The Mitchefis & Butlers Charitable Trusts have a material investment in Mitchells & Butlers pic valued at8178,629 at the year end (2015:8280,110).

The fair value of listed investments is determined by reference to the quoted price for identical assets in

an active market at the balance sheet date.

All investments are cerned at their fair value. Investments in equities and fixed interest securities are afitraded in quoted public markets, primarily the London Stock Exchange. Holdings in common investmentfunds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value forquoted investments is equivalent to the market value, using the bid price. Asset sales and purchasesare recognised at the date of trade at cost (that is their transaction value).

The main risk to the Charity from financial instruments lies in the combination of uncertain investmentmarkets and volatility in yield. The Charity is reliant on dividend yield to finance its work. Liquidity risk isanticipated to be low as all assets are traded. The Charity's investments are mainly traded in marketswith good liquidity and high trading volumes. The Charity has no material investment holdings in

markets subject to exchange controls or trading restrictions.




Material investments (continued)

The Charity manages these investment risks by retaining expert advisors and operating an investmentpolicy that provides for a high degree of diversification of holdings within investment classes that arequoted on recognised stock exchanges. The Charity does not make use of derivatives and similarcomplex financial instruments as it takes the view that investments are held for their longer term yieldtotal return and historic studies of quoted financial instruments have shown that volatility in anyparticular 5-year period will normally be corrected.

8 Current Asset Investment

Cash held by investment managers

2016Total

8

115,330

2015Total

f123,367

9 Creditors: Amounts falling due within one year2016Total

6

2015Total

6

Other creditors

10 Related Party Transactions

8,636 8,839

During the year the Mitchells & Butlers Charitable Trusts provided grants to current and formeremployees of Mitchells & Butlers pic. These grants amounted to 81,200 (2015: 85,600),

11 Statement of Funds

Balanceat

06.04.158

Incoming Resources Transfersresources expended in/(out)

Gains/(losses)

Balanceat

05.04.165

UnrestrictedfundsMitchell FundWelfare FundScholarship Fund

150,20052.84098,009

(1,360)(1,418)

(401)

37,264(123)

3,348

(11,576) 174,52851,299

100,956

301,049 (3,179) 40,489 (11,576) 326,783




EndowmentfundsPermanenl EndowmentsMitchell Fund 1,309,363Welfare Fund 1,509,920Expendable EndowmenlsScholarship Fund 426,570

(2,292)(2,389)

155 (104,173) 1,203,053313 (120,616) 1,387,228

(675) 88 (34,075) 391,908

RestrictedfundsMitchell FundWelfare FundScholarship Fund

3,245,853 (5,356) 556 (258,864) 2,982,189

35,416 (7,925) (27,491)36,913 (31,452) (5,461)10,468 (2,375) (8,093)

82,797 (41,752) (41,045)

Total funds 3,546,902 82,797 (50,287) (270,440) 3,308,972

12(a) Analysis of Net Asset between Funds —Summary

Fixed asset investmentsCurrent assetsCreditors due within one year

EndowmentFunds

62,866,859

115,330

UnrestrictedTotal

6128,188207,231

(8,636)

2016Total

62,995,047

322,561(8,636)

2015Total

63,262, 103

293.638(8,839)

2,982, 189 326,783 3,308,972 3,546,902




12(b) Analysis of Net Assets between Funds —Detailed

Listed Current assetinvestments investments

5 fCash at

bank8

Creditors8

TotalFunds

8UnrestrictedFundsMitchell FundWelfare FundScholarship Fund

128,188 50,03655,151

102,044

(3,696)(3,852)(1,088)

174,52851,299

100,956

PermanentEndowments

Mitchell FundWelfare Fund

128,188

1.153,692 49,3611,335,791 51,437

207,231 (8,636) 326,783

1,203,0531,387,228

2,489,483 100,798 2,590,281

ExpendableEndowmentsScholarship Fund 377,376 14,532 391,908

Total funds 2,995,047 115,330 207,231 (8,636) 3,308,972

19

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