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2026-03-31-accounts

Company registration number 3288617 (England and Wales) Charity registration number 1060460 (England and Wales)

THE CHELSEA CENTRE LTD

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

THE CHELSEA CENTRE LTD

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Steven Medway
Steven Parker
Victoria Jacobsen
Suman Pal (Appointed 23 April 2026)
Country of incorporation United Kingdom 3288617
(England and Wales)
Charity registration England and Wales 1060460
Registered office The Chelsea Theatre
7 World's End Place
London
UK
SW10 0DR
Independent examiner William Meakin ACA
Bright Grahame Murray
114a Cromwell Road
Kensington
London
SW7 4AG

THE CHELSEA CENTRE LTD

CONTENTS

Page
Trustees' report 1 - 6
Statement of trustees' responsibilities 7
Independent examiner's report 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12 - 24

THE CHELSEA CENTRE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2026

The trustees present their annual report and financial statements for the year ended 31 March 2026.

The Trustees present their annual report together with the financial statements of the Charity for the year ended 31 March 2026. The Annual Report serves the purposes of both a Trustees' Report and a Directors' Report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

Vision and purpose

The charity's vision is to be:

Strategies for achieving vision

Creativity as a catalyst for personal and social change

Chelsea Theatre occupies a distinctive position as both an arts venue and a community centre. The quality of the building, its location at the heart of World's End and Cremorne, and its relationship with local residents give the charity the opportunity to use creativity, culture and community activity to improve wellbeing, strengthen social connection and open up new pathways for local talent.

The Chelsea Theatre seeks out creative voices and helps them flourish by:

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake and how its resources should be applied.

Main activities undertaken to achieve objectives

Chelsea Theatre provides a broad range of community, cultural and wellbeing activity, both directly and in partnership with third-sector organisations, NHS services and the Council. These partnerships bring people into the building, connect residents with useful services and help to build trust. The Community Café, free weekly activities and community events provide welcoming entry points into the wider creative and cultural offer.

As a community venue, the charity provides room hire, theatre hire, performance and exhibition space alongside a year-round creative and cultural programme. Commercial and private hires are an important source of earned income and help to support the building's wider charitable use.

The charity runs creative workshops for children and young people, including acting, music and visual arts, with opportunities to rehearse and perform on stage, and exhibit work. A free hot meal is provided at youth workshops and rehearsals, recognising the importance of removing practical barriers to participation.

THE CHELSEA CENTRE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Other activities undertaken to further the Charity's purposes for the public benefit

Alongside the Community Champions programme, the venue has hosted or supported Citizen’s Advice, Alcoholics Anonymous, Narcotics Anonymous, NHS cooking workshop, and multiple community events and celebrations.

Throughout the year, subsidised, reduced-cost and, where appropriate, free space was offered to third-sector and community organisations. This supports the charity's aim of strengthening Chelsea Theatre's role as a key community hub for the south of the borough.

Achievements and performance

Significant activities and achievements against objectives

During 2025/26 Chelsea Theatre entered a new phase of organisational development, with renewed focus on the two interconnected strands at the heart of its charitable purpose: strengthening community wellbeing and connection, and developing creative opportunity and local talent.

Youth development became a major area of activity. In 2025 we launched a free performing arts programme for ages 11-25, with weekly two-hour workshops and a hot meal. Beatbox, Vocals and Songwriting sessions and Acting sessions are complemented by holiday workshops, rehearsals and performances, helping young people develop skills, confidence and friendships.

Community activity developed in parallel. The Chelsea Theatre strengthened its role as a neighbourhood hub for World's End and Cremorne through our first Community Assembly, free weekly activities, community events, signposting and services delivered with trusted partners. The Community Champions programme supports participation, listens to residents and connects people with health, wellbeing and community opportunities.

Review of activities

During the year we hosted a range of free and low-cost community events, including the Chelsea Muslims Celebration, a fashion show for Chelsea Arts Festival and Sudanese Nile Fest 2025. These events brought different parts of the community together and enabled local residents to experience the building as a place for celebration, culture and connection.

The weekly programme of free community activities grew to include Yoga, Community Choir, Knitting for Charity and Traditional African Dance; Chair & Balance for people aged 50+; a Baby & Parent Group; Musical Theatre for ages 4-7; and Community Football for ages 7-12. The programme supports wellbeing, reduces isolation and creates opportunities for residents to connect.

We developed a community hub on the website setting out free weekly activities for all ages and, with Chelsea Youth Club, delivered information directly to households across the World's End and Cremorne estates. The venue also continued to host third-sector, NHS and Council services, helping residents access support in a familiar local setting.

Key performance indicators

Engagement in activities presented by the charity and by organisations using the building increased over the year. Alongside participation levels, the trustees consider feedback, repeat engagement, strength of partnerships, earned income and fundraising progress when assessing performance.

Chelsea Theatre's relationship with its immediate community strengthened significantly during the year. Regular free activity, the Community Café and trusted local partnerships have helped to rebuild confidence in the venue as an accessible neighbourhood resource. Participant feedback highlights the value of activities that reduce isolation and improve wellbeing. Community partners have also highlighted the value of events in strengthening cohesion.

The youth programme has demonstrated similarly strong individual impact. Parent feedback has described increased confidence, motivation and social engagement. The longer-term ambition is to build on these foundations so young people, particularly those facing barriers to arts participation, can develop their talents and progress towards further study or work in the creative industries.

THE CHELSEA CENTRE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Fundraising activities and income generation

The charity is grateful to the Royal Borough of Kensington and Chelsea and Westminster City Council for their continued support, including annual funding, and to the trusts, foundations, donors and partners that supported our work during the year.

Fundraising and income diversification have been major priorities. During the year the charity secured £253,343 (2025: £203,308) of grant funding and donations, supporting investment in operations, community programmes and organisational resilience. Alongside grant fundraising, the charity has strengthened its focus on venue and room hire as a source of unrestricted earned income. The longer-term objective is to increase sustainable unrestricted income and rebuild free reserves to a level equivalent to three months' operating expenditure by 2028.

Financial review

The trustees monitor financial performance with particular focus on unrestricted income, operating cash flow, liquidity and progress towards a sustainable operating position. Cash absorbed by operations was £62,482 in 2025/26, compared with £41,924 in the previous year. Although the charity continued to report a deficit, steps taken during the year to strengthen fundraising, develop earned income and control costs form part of a wider financial recovery strategy. The overall deficit has reduced by £42,270 and has continued to decrease into 2026, with a planned operating surplus at the end of the 2026/27 financial year.

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

Reserves policy

It is the policy of the charity that unrestricted funds not designated for a specific use should, over time, be maintained at a level equivalent to three months' operating expenditure. The trustees consider this an appropriate target to provide resilience in the event of a significant reduction or delay in funding. At 31 March 2026 the charity had negative unrestricted reserves of £336,021. The trustees recognise that this remains a significant concern and have adopted a financial recovery strategy focused on increasing unrestricted fundraising, improving earned income and operating performance, and rebuilding free reserves. The goal remains to achieve unrestricted reserves equivalent to three months' running costs by 2028.

Principal risks and uncertainties

The trustees regularly assess the principal risks facing the charity. These include financial sustainability and liquidity, reliance on grant funding, the performance of earned-income activity, health and safety, safeguarding, staffing capacity and the operational risks associated with running a busy public building. The Board is satisfied that systems are in place to identify, monitor and, where possible, mitigate these risks.

Risk assessments are undertaken for theatre productions, events and activities as appropriate. The charity also receives professional advice and support, including retained HR and Health & Safety expertise, and keeps its operational policies and procedures under review.

Financial risk management objectives and policies

The Board uses its annual business-planning process and regular management reporting to maintain oversight of the risks to which the charity is exposed. Board agendas include an 'Opportunities & Risks' item so that emerging issues can be considered and actions agreed.

A detailed financial controls and policies document is reviewed and approved annually by the Board. Regular Finance Committee meetings are held in addition to Board meetings, supporting close monitoring of cash flow, forecasts, funding and the charity's overall financial position.

THE CHELSEA CENTRE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Principal funding

During the year to 31 March 2026, The Chelsea Centre Ltd t/a The Chelsea Theatre held assets for the purposes of achieving its charitable objectives. Fixed assets were added as indicated in the notes to the financial statements. No assets were held by anyone other than The Chelsea Centre Ltd. No Trustees acted as custodian Trustees.

The Chelsea Centre Ltd has no subsidiary or associated undertakings. All restricted fund assets are held either on current account or instant access deposit accounts. There are sufficient resources to meet all commitments undertaken as a result of a grants from Kensington and Chelsea Council and Westminster City Council, together with that of key donations and additional grant-in-aid.

The Chelsea Theatre showed a deficit for the year of £193,198 (2025: £235,468) giving an unrestricted funds deficit of £336,021 (2025: £302,499) and a restricted funds balance of £1,861,065 (2025: £2,020,741) as at 31 March 2026.

The Chelsea Centre holds a tax-free deposit account operated by CCLA known as the COIF Charities Deposit Account, the balance of which at 31 March 2026 was £632 (2025: £609).

Structure, governance and management Constitution

The Chelsea Community Association was founded as an unincorporated association on 19 February 1953 and registered with the Charity Commission in January 1961, with the object of promoting the wellbeing of residents of what is now the Royal Borough of Kensington and Chelsea and, in furtherance of that object, managing a community centre.

On 1 April 1997 its affairs were transferred to a company without share capital limited by guarantee. In October 2001, prior to the relaunch of its refurbished auditorium, the Board of Trustees of The Chelsea Centre Ltd approved 'The Chelsea Theatre' as the name under which the company operates.

The charity is a charitable company limited by guarantee. It is established under a Memorandum of Association, which sets out its objects and powers, and is governed by its Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £10.

The Board underwent a period of significant transition during 2024 and 2025. Steven Medway was appointed Chair in September 2024 and formally became a Trustee in December 2024. Steven Parker and Victoria Jacobsen joined the Board at the same time, supporting the development of a refreshed strategic direction for the theatre.

Gabin Sinclair-Constance and Verena Cornwall, who had joined the Board in June 2024 to support the rebuilding of governance arrangements, stepped down during 2025. The Board records its thanks for their contribution during a period of organisational change.

Trustee recruitment continued as the charity sought to strengthen the range of skills and experience represented on the Board. Suman Pal was appointed as a Trustee on 23 April 2026, after the year end and before approval of these financial statements.

The Board continues to review its composition, skills and governance arrangements to ensure that it is equipped to support the charity's strategic development, financial recovery and community mission.

Recruitment and appointment of trustees

The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.

THE CHELSEA CENTRE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Organisational structure

The Trustees, who are also the directors for the purpose of company law, and who served and resigned during the year and up to the date of signature of the financial statements were:

Gabin Sinclair-Constance Resigned 16 June 2025 Verena Cornwall Resigned 4 September 2025 Steven Medway Appointed 1 December 2024 Steven Parker Appointed 1 December 2024 Victoria Jacobsen Appointed 1 December 2024 Suman Pal Appointed 23 April 2026

Induction and training of trustees

New Trustees are appointed by selection by the current Trustees of the charity by a simple majority vote. New Trustees are selected to add their expertise or knowledge to the board of Trustees. A skills audit is conducted to ensure critical skills are covered. Training is provided to ensure Trustees are kept up to date with their responsibilities.

Other matters

Leadership and organisational development

A significant milestone was the appointment of Katie Elston as Chief Executive Officer. During the year the organisation began to move from a period of instability towards a clearer strategic and operational footing, with renewed attention to community impact, creative development, income generation, organisational processes and financial sustainability.

Community and programme development

Community development and youth development are both central to Chelsea Theatre's renewed direction. The community programme is intended to make the building a trusted neighbourhood hub where residents can take part in free and affordable activity, connect with one another, access health and wellbeing support and help shape future provision. In parallel, the youth programme is being developed as a pathway through which young people can discover and strengthen creative skills, perform and showcase their work, gain experience of backstage and technical roles and, over time, progress towards further study or employment in the creative industries.

The relaunch of the Community Café through the partnership with Community Cook Off has further strengthened the building's everyday community role. The café offers affordable food and social connection, while future community-led activity, cooking sessions and takeovers are intended to create further routes into participation. Across the organisation, the next phase will also place greater emphasis on collecting feedback, case studies and participation data so that the charity can demonstrate impact, learn from residents and strengthen future funding applications.

Fundraising and future development

The charity's immediate priorities are to consolidate the progress made during 2025/26; deepen its community and youth development work; grow unrestricted fundraising and earned income; strengthen the hires business and public programme; improve the accessibility, safety and quality of the building; and rebuild unrestricted reserves. Department business plans for 2026-29 translate these priorities into measurable actions while keeping the charity's vision and public benefit at the centre of decision-making. The Board will continue to monitor delivery alongside the financial recovery plan.

THE CHELSEA CENTRE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

The trustees' report was approved by the Board of Trustees.

Steven Medway Trustee

7 September 2026

THE CHELSEA CENTRE LTD

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2026

The trustees, who are also the directors of The Chelsea Centre Ltd for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that 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 Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE CHELSEA CENTRE LTD

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE CHELSEA CENTRE LTD

I report to the trustees on my examination of the financial statements of The Chelsea Centre Ltd (the charity) for the year ended 31 March 2026.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law), you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006.

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

William Meakin ACA

Independent Examiner Bright Grahame Murray 114a Cromwell Road Kensington London SW7 4AG UK 7 September 2026

THE CHELSEA CENTRE LTD

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2026

Unrestricted
Restricted
funds
funds
2026
2026
Notes
£
£
Income and endowments from:
Donations and legacies
3
113,224
316,519
Charitable activities
4
180,391
-
Interest income
5
51
-
Other income
6
33,600
-
Total income
327,266
316,519
Expenditure on:
Raising funds
7
9,281
-
Charitable activities
8
351,507
476,195
Total expenditure
360,788
476,195
Net expenditure and
movement in funds
(33,522)
(159,676)
Reconciliation of funds:
Fund balances at 1 April
(302,499)
2,020,741
Fund balances at 31 March
(336,021)
1,861,065		 Total
Unrestricted
Restricted
funds
funds
2026
2025
2025
£
£
£
429,743
81,048
298,760
180,391
222,223
-
51
4,195
-
33,600
33,600
-
643,785
341,066
298,760
9,281
-
-
827,702
539,665
335,629
836,983
539,665
335,629
(193,198)
(198,599)
(36,869)
1,718,242
(103,900)
2,057,610
1,525,044
(302,499)
2,020,741		 Total
2025
£
379,808
222,223
4,195
33,600
639,826
-
875,294
875,294
(235,468)
1,953,710
1,718,242

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

THE CHELSEA CENTRE LTD

BALANCE SHEET

AS AT 31 MARCH 2026

Notes
Fixed assets
Tangible assets
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
18
Net assets
The funds of the charity
Restricted income funds
21
Unrestricted funds
22		 2026
£
£
1,797,195
83,814
93,910
177,724
(215,475)
(37,751)
1,759,444
(234,400)
1,525,044
1,861,065
(336,021)
1,525,044		 2025
£
£
1,905,154
14,881
60,960
75,841
(128,353)
(52,512)
1,852,642
(134,400)
1,718,242
2,020,741
(302,499)
1,718,242

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2026.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the trustees on 7 September 2026

Steven Medway

Trustee

THE CHELSEA CENTRE LTD

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2026

Notes
Cash flows from operating activities
Cash absorbed by operations
25
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash used in investing activities
Financing activities
Proceeds from borrowings
Net cash generated from financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2026
£
(4,619)
51
100,000		 £
(62,482)
(4,568)
100,000
32,950
60,960
93,910		 2025
£
(5,382)
4,196
-		 £
(41,924)
(1,186)
-
(43,110)
104,070
60,960

THE CHELSEA CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

1 Accounting policies

Charity information

The Chelsea Centre Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is The Chelsea Theatre, 7 World's End Place, London, SW10 0DR, UK.

1.1 Basis of preparation

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

1.2 Going concern

The financial statements have been prepared on the going concern basis. The trustees have considered the charity’s cash flow, budgets and funding plans for a period of at least twelve months from the date of approval of these financial statements, together with the level of reserves and the timing of expected income. The trustees acknowledge that, at the reporting date, the charity held negative unrestricted reserves. Subsequent to the year end, the charity has received local government funding and grants. Having considered these post year end funding, the trustees are satisfied that the charity has adequate resources to meet its liabilities as they fall due and to continue its activities for the foreseeable future (being not less than twelve months from the date of approval). Accordingly, the trustees consider the adoption of the going concern basis to be appropriate in preparing these financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

THE CHELSEA CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

1 Accounting policies

(Continued)

Donated goods and services are recognised as income where the benefit to the charity can be reliably measured and the charity has control over the item or service received. Such income is recognised at the fair value of the goods or services provided to the charity.Donated services and facilities are included within income from donations and gifts and are recognised when received, provided that the value of the service can be measured reliably. The corresponding expenditure is recognised in the same period as the donated goods or services are consumed. The charity occupies premises made available at below market value. The value of this donated facility is recognised based on the estimated market rental value of the accommodation provided.

Government grants are recognised when there is reasonable assurance that the charity will comply with the conditions attaching to the grant and that the grant will be received. Grants relating to revenue expenditure are recognised as income on a systematic basis over the periods in which the charity recognises the related costs for which the grants are intended to compensate. Grants received in advance of the charity satisfying the related conditions or incurring the related expenditure are deferred and recognised within creditors. Such amounts are released to income in the period in which the related conditions are met and expenditure is incurred.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements Over the length of the lease on a straight line basis Fixtures and fittings 20% straight line Computers 33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

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

THE CHELSEA CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

1 Accounting policies

(Continued)

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Concessionary loans

Concessionary loans are loans received by the charity at below market rates of interest. The charity has elected to apply the provisions of the Charities SORP (FRS 102) for concessionary loans. Such loans are initially recognised at the amount received and subsequently measured at the amount repayable to the lender.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

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 terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

THE CHELSEA CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The trustees have concluded that it is appropriate to prepare the financial statements on a going concern basis. In reaching this conclusion, the trustees have considered the charity's current financial position, forecast cash flows, available funding facilities and future operational plans.

Judgement is also exercised in determining the classification of income and expenditure between restricted and unrestricted funds and the allocation of assets and liabilities to the relevant funds.

Key sources of estimation uncertainty

The charity depreciates its leasehold property over the remaining term of the lease. The useful economic life adopted is based on management's assessment of the period over which the property is expected to provide economic benefit to the charity.

The carrying value of trade debtors is reviewed at each reporting date. Provision is made where there is evidence that amounts due may not be recoverable. The recoverability assessment requires management to estimate the likelihood and timing of receipt of outstanding balances.

The trustees do not consider there to be any other significant estimates or assumptions at the reporting date that have a material risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

3 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2026
2026
£
£
Donations and gifts
32,228
-
Grants
80,996
140,119
Donated goods and
services
-
176,400
113,224
316,519		 Total
Unrestricted
Restricted
funds
funds
2026
2025
2025
£
£
£
32,228
52
-
221,115
80,996
122,360
176,400
-
176,400
429,743
81,048
298,760		 Total
2025
£
52
203,356
176,400
379,808

THE CHELSEA CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

4 Income from charitable activities

Unrestricted Unrestricted
funds funds
2026 2025
£ £
Supporting Chelsea Theatre
Venue Hire Income 123,853 171,227
Bar & cafe sales 44,823 40,241
Ticket sales 1,105 2,137
Other income 10,610 8,618
180,391 222,223

5 Interest income

Unrestricted Unrestricted
funds funds
2026 2025
£ £
Interest receivable 51 4,195
6 Other income
Unrestricted Unrestricted
funds funds
2026 2025
£ £
Other revenue 33,600 33,600
7 Expenditure on raising funds
Unrestricted Unrestricted
funds funds
2026 2025
£ £
Fundraising and publicity
Other fundraising costs 9,281 -

THE CHELSEA CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

8 Expenditure on charitable activities

Supporting Supporting
Chelsea Chelsea
Theatre Theatre
2026 2025
£ £
Direct costs
Staff costs 298,699 329,120
Utilities 31,010 29,773
Production costs - 4,957
Subscriptions and licences 647 2,418
Theatre costs 28,627 22,391
Bad debt expense (3,528) 4,333
Cafe costs 25,975 20,760
Rent 176,400 176,400
557,830 590,152
Share of support and governance costs (see note 9)
Support 233,596 269,046
Governance 36,276 16,096
827,702 875,294
Analysis by fund
Unrestricted funds 351,507 539,665
Restricted funds 476,195 335,629
827,702 875,294

THE CHELSEA CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

9 Support costs allocated to activities

Depreciation
IT and marketing
Office costs
Minor equipment
Repairs and maintenance
Consultants
Freelancers
Staff incidental costs
Bank charges and payment processing
Subscriptions and licences
Governance costs
Analysed between:
Supporting Chelsea Theatre
Governance costs comprise:
Audit fees
Accountancy
Legal and professional
10
Net movement in funds
The net movement in funds is stated after charging/(crediting):
Fees payable for the independent examination of the charity's financial
statements
Depreciation of owned tangible fixed assets		 2026
£
112,578
16,111
28,397
330
10,419
5,000
48,069
6,723
5,344
625
36,276
269,872
269,872
2026
£
6,500
29,776
-
36,276
2026
£
6,500
112,578		 2025
£
116,866
13,667
42,597
8,450
15,860
8,929
47,238
11,962
3,477
-
16,096
285,142
285,142
2025
£
6,500
8,890
706
16,096
2025
£
6,500
116,866

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

THE CHELSEA CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

12 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs
There were no employees who were paid more than £60,000 during the year.
Remuneration of key management personnel
The remuneration of key management personnel was as follows:
Aggregate compensation		 2026
Number
19
2026
£
277,378
14,678
6,643
298,699
2026
£
49,609		 2025
Number
20
2025
£
299,611
24,117
5,392
329,120
2025
£
-

The key management personnel of the charity comprise the Chief Executive Officer, who is responsible for directing, controlling and managing the charity's activities on a day-to-day basis.

13 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

THE CHELSEA CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

14
Tangible fixed assets
Leasehold
improvements
Fixtures and
fittings
£
£
Cost
At 1 April 2025
2,597,144
59,619
Additions
3,240
-
At 31 March 2026
2,600,384
59,619
Depreciation and impairment
At 1 April 2025
704,905
49,094
Depreciation charged in the year
102,599
8,900
At 31 March 2026
807,504
57,994
Carrying amount
At 31 March 2026
1,792,880
1,625
At 31 March 2025
1,892,239
10,525
15
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
16
Loans and overdrafts
Other loans
Payable after one year		 Computers
£
14,817
1,379
16,196
12,427
1,079
13,506
2,690
2,390
2026
£
66,558
10,503
6,753
83,814
2026
£
100,000
100,000		 Total
£
2,671,580
4,619
2,676,199
766,426
112,578
879,004
1,797,195
1,905,154
2025
£
14,735
146
-
14,881
2025
£
-
-

During the year, the charity entered into an unsecured loan facility agreement with The Mayor and Burgesses of the Royal Borough of Kensington and Chelsea for a maximum principal amount of £100,000. The facility is interest-free and was provided to support the charity's working capital and operational activities. The outstanding balance is repayable in instalments of £50,000 on 30 April 2027 and the remaining balance on 31 March 2029. The loan is unsecured and contains certain covenants and default provisions customary for this type of arrangement.

The loan has been accounted for as a concessionary loan and is carried at the amount repayable to the lender.

THE CHELSEA CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2026

17 Creditors: amounts falling due within one year

Notes
Other taxation and social security
Local government grants
20
Trade creditors
Other creditors
Accruals and deferred income
18
Creditors: amounts falling due after more than one year
Notes
Other loans
16
Other taxation and social security
19
Retirement benefit schemes
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes		 2026
£
(15,978)
93,321
15,216
102,603
20,313
215,475
2026
£
100,000
134,400
234,400
2026
£
6,643		 2025
£
9,865
102,488
7,735
-
8,265
128,353
2025
£
-
134,400
134,400
2025
£
5,392

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

20 Local government grants

Deferred income comprises of local government grant funding received in advance of the charity satisfying the related funding conditions or incurring the expenditure to which the funding relates. The balance will be recognised as income in future periods as the associated conditions are fulfilled.

At 31 March 2026, deferred income amounted to £93,321 (2025: £102,488). The deferred balance relates to grants received for activities and expenditure to be undertaken after the year end. No grants were repayable at the year end and the trustees expect all conditions attached to the grants to be satisfied.

Deferred income is included in the financial statements as follows:

Deferred income is included within:
Current liabilities
Movements in the year:		 2026
£
93,321		 2025
£
102,488

THE CHELSEA CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

20
Local government grants
Deferred income at 1 April 2025
Released from previous periods
Resources deferred in the year
Deferred income at 31 March 2026		 (Continued)
102,488
-
(102,488)
-
93,321
102,488
93,321
102,488		 (Continued)
102,488
-
(102,488)
-
93,321
102,488
93,321
102,488
102,488

21 Restricted funds

Restricted funds comprise grants, donations and assets which are subject to specific donor-imposed restrictions. The charity's principal restricted fund relates to its leasehold theatre property and associated capital funding received for the acquisition, refurbishment and ongoing preservation of the theatre for charitable purposes. These funds may only be applied in accordance with the conditions attached by the original funders and are therefore not available for general expenditure.

Income recognised during the year represents grants and donations received for restricted purposes. Expenditure represents costs incurred in accordance with the requirements of the respective funding agreements and includes depreciation charged on restricted fixed assets.

The movements on restricted funds during the year were as follows:

Previous year: At 1 April
2025
Incoming
resources
Resources
expended
At 31 March
2026
£
£
£
£
2,020,741
316,519
(476,195)
1,861,065
At 1 April
2024
Incoming
resources
Resources
expended
At 31 March
2025
£
£
£
£
2,057,610
298,760
(335,629)
2,020,741

22 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used.

At 1 April Incoming Resources At 31 March
2025 resources expended 2026
£ £ £ £
General funds (302,499) 327,266 (360,788) (336,021)

THE CHELSEA CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

22 Unrestricted funds (Continued)
Previous year: At 1 April Incoming Resources At 31 March
2024 resources expended 2025
£ £ £ £
General funds (103,900) 341,066 (539,665) (302,499)

The deficit reflects the charity's historic funding position and the continued use of unrestricted resources to support the delivery of its charitable objectives. The trustees have adopted a financial recovery strategy aimed at increasing unrestricted income, improving operating surpluses and rebuilding free reserves over time. The trustees keep the position under regular review and are satisfied that the charity remains able to meet its obligations as they fall due. Further information regarding the trustees' reserves target and the actions being taken to eliminate the deficit is included within the Reserves Policy in the Trustees' Report.

23 Analysis of net assets between funds

Unrestricted
Restricted
funds
funds
2026
2026
£
£
At 31 March 2026:
Tangible assets
4,315
1,792,880
Current assets/(liabilities)
(105,936)
68,185
Long term liabilities
(234,400)
-
(336,021)
1,861,065
Unrestricted
Restricted
funds
funds
2025
2025
£
£
At 31 March 2025:
Tangible assets
15,496
1,889,658
Current assets/(liabilities)
(183,595)
131,083
Long term liabilities
(134,400)
-
(302,499)
2,020,741		 Total
2026
£
1,797,195
(37,751)
(234,400)
1,525,044
Total
2025
£
1,905,154
(52,512)
(134,400)
1,718,242

24 Related party transactions

There were no disclosable related party transactions during the year (2025 - none).

THE CHELSEA CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2026

25 Cash absorbed by operations 2026 2025
£ £
Deficit for the year (193,198) (235,468)
Adjustments for:
Investment income recognised in statement of financial activities (51) (4,196)
Depreciation and impairment of tangible fixed assets 112,578 116,866
Movements in working capital:
(Increase)/decrease in debtors (68,933) 41,675
Increase/(decrease) in creditors 96,289 (63,289)
(Decrease)/increase in deferred income (9,167) 102,488
Cash absorbed by operations (62,482) (41,924)