DESPITE allocating more bursaries to pupils from less well off families, St Mary’s School in Melrose recorded a net income of £224,000 last year.

The robust financial state of the independent co-educational prep school, founded in 1895 and registered as a charitable trust, is revealed in its annual accounts and report for the 12 months ending August 31, 2016.

Reporting on behalf of the trustees, Gareth Baird, chair of the board of governors, says the operating surplus will be used to “invest in the fabric of the school for the long term benefit of pupils”.

Investment projects planned for the current year include the relocation of the £44-per day kindergarten, the development of a second boarding house and the expansion of classrooms at the Abbey Park complex.

The net income has also allowed governors to award an inflationary pay increase to both teaching and non-teaching staff in the current academic year.

“By continuing to be prudent and cautious in the improving, but still uncertain, economic landscape, the governors have once again been able to recognise the enormous effort put in by staff,” states Mr Baird.

St Mary’s charges fees of up to £5,043 per term for its 100 plus day pupils and £5,697 per term for its boarders.

The books show that gross class and boarding fees in the accounting period totalled £2,432,571, compared to £2,280,437 the previous year.

However, bursaries last year rose to £383,699 (£343,642 in 2015) and discounts, for siblings and the children of staff members, amounted to £180,365 (£163,900) to give net fee income of £1,868,537 (£1,772,895).

Of the 99 pupils assisted – up from 92 in 2015 – 42 received bursaries, 48 got discounts and 10 received both.

Commenting on the increased level of bursaries, which are means tested and at the discretion of head teacher Liam Harvey and the governors, Mr Baird says: “St Mary’s recognises…the absolute benefit to others who would not necessarily be able to afford an independent prep school education for their children.”

The accounts show that set against annual income were operating costs of £1.707,524 (£1.573,214), with staff costs rising to £1,169,060 (£1,080,211). The total number of staff was 51 (50) including 35 teachers.

The accounts reveal that over £95,000 was spent last year on school improvements, including new IT equipment, the refurbishment of the boarding house and the installation of keypad entry systems across the school.