Bosses at Fernhill School were aware of the institution's impending financial collapse nearly a year before the information was shared with parents and students, according to an analysis of the school's accounts.
Fernhill School, located in Rutherglen, South Lanarkshire, ceased operations last week after the charitable company overseeing it entered liquidation. In January, parents were notified of the closure, with the final date of operation set for June 19. However, financial records for 'Fernhill School Ltd' indicate that directors David Equi and Giuseppe Marini were aware of the school's difficulties and the high likelihood of closure as early as April 2025.
Despite this knowledge, the school reportedly admitted new students at the beginning of the last academic year. This decision has drawn criticism from parents, one of whom expressed frustration, stating, "This raises even more questions about the handling of the school’s finances and why we have been left in the dark. If they knew there was a chance it would have to close, why did they allow a whole new intake of kids in August?"
Local Member of the Scottish Parliament (MSP) Clare Haughey has called for greater transparency, stating, "The school directors need to be open and transparent about how the financial situation occurred and what they knew and when."
The accounts for the year ending July 2022, which were filed in April 2025, three years after their due date, stated that the board had "considered the funding requirement of the school through to June 2026 and is satisfied that sufficient resources will be made available to allow the school to continue to operate." However, the same report acknowledged that "material uncertainty exists which may cast doubt over the school’s ability to continue as a going concern," citing factors such as inflation, increased energy costs, rising staff expenses, and the implementation of Value Added Tax (VAT) on private schools.
The term 'going concern' in accounting refers to a business's ability to continue operating for at least the next year without facing liquidation.
In the same financial filings, auditor Bell Barr & Co noted a deficit of £269,360 and liabilities exceeding assets by £389,414. The auditor's report concluded that this, along with other factors, indicated a "material uncertainty" that could significantly doubt the charitable company's ability to continue as a going concern.
The auditor reportedly ceased being the school's client in October after Mr. Marini and Mr. Equi filed 'dormant' accounts for the 2022-2023 and 2023-2024 academic years, despite approximately 250 pupils paying tuition fees.
A parent and former pupil expressed a desire for an explanation regarding the school's finances, stating, "We’ve paid a lot of money to the school, and we feel the least we’re owed is an explanation of how that money has been spent."
The school's closure was announced in January, shortly after the Office of the Scottish Charity Regulator raised concerns about its management. The watchdog is understood to have sought legal means to compel Mr. Marini and Mr. Equi to provide outstanding financial information.
Qualifications Scotland, the national body for qualifications, has assured parents that their children's results will not be affected by the school's closure. Mr. Equi and Mr. Marini were contacted for comment.