Financial
Foundations
Beyond the prospectus: assessing school financial health
Choosing a stable school
Choosing a school isn't just about academic excellence – it's about ensuring your child's educational journey is built on solid financial foundations. At Chattan Harbour, we go beyond the glossy prospectus, using our leadership experience and Companies House data to assess the financial health of independent schools. This often-overlooked aspect of school selection can be crucial to your child's educational stability.
No parent wants to face the disruption of moving their child mid-way through their education because a school faces financial difficulties. Yet in recent years, we've seen respected institutions close their doors with little warning, leaving families scrambling for alternatives. The signs are often there – if you know where to look.
Let our experienced Heads guide you through understanding what makes a financially secure school, ensuring your child's education remains uninterrupted and stable. Because some of the most important due diligence happens before the first school visit.
Student numbers
Student numbers are the lifeblood of any independent school, providing both financial stability and a vibrant educational community. When assessing a school's enrolment health, experienced Heads look beyond the total student count to examine crucial patterns and trends that indicate sustainable growth and robust demand. Our analysis focuses on:
• Year-on-year enrolment trends across all entry points, with particular attention to key transition years (11+, 13+, and 16+)
• Depth of waiting lists at main entry points – a healthy school typically maintains lists extending beyond the next academic year
• Balance of international and domestic students, ensuring a sustainable mix that enriches the school community while maintaining financial resilience
• Occupancy rates in boarding houses (where applicable), as empty beds can significantly impact a school's financial planning
Investment patterns
A school's investment patterns tell a compelling story about its financial confidence and long-term vision. As former Heads who have managed substantial development projects and facilities upgrades, we know that consistent investment in both infrastructure and resources indicates strong financial planning and a secure future. When reviewing a school's investment strategy, our experienced team examines the following:
01
Facilities and maintenance
Evidence of proactive maintenance programs and facility upgrades, demonstrating the school isn't deferring essential work to cut costs
02
Strategic development
Strategic development projects in progress or recently completed – particularly noting whether these enhance teaching and learning rather than just cosmetic improvements
03
Capital investment
Capital investment in academic facilities, showing commitment to educational excellence through science labs, performing arts spaces, or sports facilities
04
Technology and infrastructure
Current classroom technology and digital infrastructure, reflecting the school's ability to maintain modern teaching environments. Continuous investment in teaching resources, libraries, and specialist equipment – vital signs that budget constraints aren't impacting educational quality
STAFF STABILITY
The quality and stability of a school's staff provides crucial insights into its financial health and leadership strength. As former Heads who have built and retained outstanding teaching teams, we know that a school's ability to invest in its people directly correlates with its financial confidence and long-term sustainability. When evaluating staff stability, our experienced team examines:
01
Staff retention
Staff retention rates across departments – particularly noting the longevity of key subject leaders and pastoral teams who build the school's academic and cultural foundations
02
Remuneration
Competitive remuneration packages that attract and retain high-calibre teachers, including evidence of regular salary reviews and performance recognition
03
Professional Development
Robust professional development budgets showing commitment to staff growth – from subject-specific training to leadership pathways and advanced qualifications
04
Specialist teachers
Presence of specialist teachers in core subjects and enrichment areas, rather than over-reliance on generalists or temporary staff
Financial Management
Behind every successful school lies robust financial management – a critical indicator we assess using our expertise as former Heads combined with detailed Companies House reviews. As experienced school leaders who have managed complex budgets through challenging times, we know that strong financial governance leaves clear footprints in a school's accounts and strategic planning.
When evaluating a school's financial health, we delve beyond surface-level metrics to assess the true sustainability of its business model. Our comprehensive analysis examines operational surpluses, reserve ratios, and strategic debt management, while paying particular attention to income diversification through initiatives like lettings and summer programs. We place significant emphasis on forward-looking financial governance, including how schools plan for and navigate challenges such as the recent VAT implementation on fees. As former Heads who have managed substantial educational budgets, we understand that robust financial planning directly correlates with a school's ability to maintain educational excellence and weather economic uncertainties.