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2023-08-31-accounts

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

Charity registration number 1072627 Company registration number 03448894

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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CONTENTS

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|||||||| |---|---|---|---|---|---|---| |Page| |Legal and administrative|information|1| |Trustees’ annual report|2-8| |Independent|auditor's|report|9-12| |Statement of financial|activities|13| |Statement|of cashflows|and|reconciliation|of net|debt|14| |Balance sheet|15| |Notes to the financial|statements|16-27|

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE)

LEGAL AND ADMINISTRATIVE INFORMATION

Charitynumber 1072627
Company number 03448894
Governingdocument TheCompany isgoverned by itsmemorandum
and articles ofassociation.
Known as The Conservatoire
Registered and
Principal Office		 19-21 Lee Road
Blackheath
London
SE39RQ
Auditors KnoxCropperLLP
65 Leadenhall Street
London
EC3A 2AD
Bankers Barclays
Level 27, 4 Churchill Place
London
E14 5HP
Current Trustees Jane Burton — Joint Chair
Clare Cornwell — Joint Chair
Mhairi Baxter
Duncan Campbell
Simon James
Tom Lee
James Radford
Emma Smillie
Executive Director Patrick Holden
Website https:/Awww.conservatoire.org.uk

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ ANNUAL REPORT ee The Trustees, who are the directors of the Company for the purposes of Company law, have pleasure in presenting their report together with the financial statement for The Blackheath Conservatoire of Music and the Arts Ltd (the “Conservatoire” or the "Company”) for the year ended 31 August 2023.

The report has been prepared in accordance with the Charities Act 2011 and it Is also the report of the directors for the purposes of the Companies Act 2006.

The financial statements have been prepared in accordance with the accounting policies set out on pages 16 and 17 of the attached financial statements and comply with the Company's Memorandum and Articles of Association.

Structure, Governance and Management

The Company is a charity and a Company limited by guarantee. The charity registration number is 1072627. The Company registration number is 03448894,

The governing documents are its Memorandum and Articles of Association which were last amended on 11 May 4999. The Members are the guarantors of the Company and each has undertaken to contribute such amounts as may be required (but not exceeding £10) to the Company's assets if it should be wound up while they are a member, or within one year after they should cease to be a member, for payment of the Company’s debts and liabilities contracted before they ceased to be a member, together with the costs, charges and expenses of the winding up, and for the adjustments of the rights of the contributories among themselves.

Trustees

The Trustees constitute the directors of the Company for the purposes of the Companies Act 2006.

The initial Trustees were appointed at the date of incorporation, with future Trustee appointments being made in subsequent years on the basis of eligibility, personal competence, specialist skills and local knowledge. New Trustees receive an induction into the operations of the Company.

The retirement by rotation and re-election procedures for the Trustees are set out in the Memorandum and Articles of Association. There must be a minimum of three Trustees but there is no maximum limit. The following Trustees held office between 1 September 2022 and the date of this report, unless otherwise noted below.

Name Date Appointed Date Resigned Mhairi Baxter ” Jane Burton — Joint Chair - - Duncan Campbell - - Clare Cornwell — Joint Chair - - Nathan Homan - 18 July 2023 Simon James - - Tom Lee - . James Radford - - Emma Smillie - -

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ ANNUAL REPORT a RO Trustees (continued)

The beneficial interest of the Trustees in contracts and transactions with the Company during the period are disclosed in note 17 of the financial statements.

Statement of Trustees’ responsibllities

The Trustees are responsible for preparing the Trustees’ report and financial statements in accordance with applicable laws and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the Company and of the incoming resources and application of resources, including the income and expenditure, of the Company for that period. 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 Company 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Trustees confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The Trustees are responsible for the maintenance and integrity of the Company and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Objectives of the charity

The long term objectives of the charity are Its objects, as set out in the Memorandum of Association, being to promote the study, knowledge, understanding and appreciation of music, fine arts and the applied arts (altogether “the arts”) for the benefit of the inhabitants of Blackheath, Greenwich, Lewisham and the surrounding area. The charity also aims to provide sustainable bursary funding to selected students to enable them to complete their studies.

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The charity has set a short term objective of returning to a sustainable net surplus through the expansion of its range of courses, the increase in the occupancy on its courses, the development of other funding sources such as rental income and the careful monitoring of costs.

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ ANNUAL REPORT a Measurement of success against aims and objectives The Trustees have referred to the guidance in the Charity Commission general guidance on public benefit when reviewingagainst thosethe aims andaims and objectives.objectives ofThethe activitiesCompanyof theand charityin planning fulfil theits publicactivitiesbenefitand requirementsin measuring throughits successthe provision of music, drama and art courses that would not be available to students through other jocal sources or organisations and the provision of financial support to students who would, without this support, be unable to benefit from the tuition provided.

The charity measures its success against its long term objectives by the level and quality and range of the tuition provided to its students, the level of engagement provided to the local community in the form of events or other sponsored activities and the level of bursary funding provided to students.

The charity measures its success against its short term objective by the achievement of sustainable net surplus.

Main achievements in the period This report focuses on our activities in the year including the generation of income from individual tuition, group courses, events, rental, donations, grants and other sources.

The Company has continued to maintain its focus on the provision of high quality art, drama and music tuition to the local community throughout the year. The charity also continued to engage with the community through a number of community focused activities and events which have been well attended. The level of bursary funding and other support for students who require financial assistance to enable them to receive tuition was extended during the year to enable bursary support to be provided to Ukrainian refugees and their families.

Risk management

The Trustees regularly review the key identified risks facing the charity and develop action plans to minimise the impact of those risks.

The identified key risks and related responses are:

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE)

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TRUSTEES’ ANNUAL REPORT

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Review of the year

The Company has continued to make progress on the implementation of its strategic plan. In particular:

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The Board has also focused during the year on maintaining the trust and co-operation of the local community, sponsors and business partners. Particular care has been taken to engage positively with the local residents near the Conservatoire who are impacted by its operations.

The Board will continue with its positive engagement with all the supporters and business partners of the Conservatoire with regular communication to those stakeholders being issued throughout the year.

Fundraising

Total donations received in the year were £162,165 (2022 £42,303) of which £121,888 represented restricted donations. Total grants received in the year were £16,114 (2022 Enil) all of which represented restricted funds.

Of the above donations and grants £64,002 was for the Developing Young Potential Fund. This funding supported the continued provision of the bursary programme to students and to Ukrainian refugees and their families.

Donations of £74,000 were received to establish the Development Fund, which is a fund for expenditure on the development of the Conservatoire, including the development of IT systems, fundraising capacity and other operational improvements.

The Company did not use fundraising services, consultants or external professional fundraisers to undertake its fundraising activities. No data is shared with or sold to any external agencies.

The Company holds events for existing donors and for individuals who have expressed an interest in supporting the work of the Company. The Company complies with the provisions of the data protection legislation.

Marketing

We continued to run a number of targeted marketing campaigns during the year to support the development and expansion of the group course curriculum and the range of other events. We also continued to maintain the new Conservatoire website in order to provide extensive information on our activities and courses.

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ ANNUAL REPORT

Staffing

Staff and tutors have continued to provide a dedicated service to our customers and the public during the year.

Remuneration policy The remuneration policy of the charity is to offer a range of benefits to employees, including pension scheme participation, part time and flexible working and discounts that will enable the Company to offer competitive remuneration packages to current and prospective employees.

Trustees

For personal reasons Nathan Homan resigned from the Board on the 18 July 2023. The Trustees thank Nathan for his work as a Trustee.

TheFinancial resultsreview for the year and financial position of the Company are shown in the financial statements. Total income increased by £345,786 to £1,691,330, with the increases in course income, rental income and other course related income arising from a full year of activity and the impact of price increases and other income generating actions.

Total donations of £162,165 were received, an increase of £119,862, with donations of £47,888 to support the expanded Developing Young Potential Fund and £74,000 to establish the Development Fund. Unrestricted donations of £40,277 were also received.

Total grants of £16,114 were received, an increase of £16,114. These grants provided funds for the Developing YoungTotal expenditurePotential Fund. increased by £192,775 to £1,643,885.

Course related expenditure increased by £53,576 to £768,524, due to the increase in teaching and other course related activity. Support expenditure, which includes salaries, marketing and publicity costs, office costs, outreach expenditure, premises costs, professional fees, finance costs, depreciation and governance costs increased by £139,199 to £875,361, reflecting increased salary costs arising from the implementation of staffing changes and the increase in operational costs due to the Increase in utility costs and inflation.

The operating profit, being net income before finance costs and depreciation, increased by £198,113 to £222,099 as a result of the net impact of the factors noted above Finance costs increased by £44,348 to £114,954, primarily due to the impact of increased interest rates during the year. The net profit after finance costs increased by £153,765 to £107,145, as a result of the net impact of the factors noted above. Depreciation costs increased by £754 to £59,700, due to the additional depreciation on the capital expenditure in the current year and prior year,

The net income for the year, after finance costs and depreciation, increased by £153,011 to £47,445 as a result of the net impact of the factors discussed above.

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ ANNUAL REPORT

Financlal review (continued) Fixed and intangible assets decreased by £54,790 to £1,418,174, as the depreciation charge for the year exceeded the capital expenditure on fixed asset additions. Current assets increased by £70,782 to £805,624, primarily due to the increase in debtors and cash as a result of the operating surplus in the year.

Current liabilities increased by £84 to £623,167, being the net impact of the reduction in loans from the capital repayments made in the year, the reduction in trade creditors and the increase in deferred income due to the higher course sales for the Autumn 2023 term compared to the prior year.

Non-current liabilities decreased by £31,538 to £1,512,634, as the net result of the loan repayments made during the year and the movements between the current and non-current portions of the loan arising from changes in interest rates during the year.

Restricted funds increased by £76,874 to £98,693 due to the excess of restricted income over restricted expenditure.

The general reserve deficit increased by £23,593 to £541,753 due to the net impact of the retained deficit for the year of £29,429 and the transfer of £5,836 from the revaluation reserve to the general reserve. The revaluation reserve decreased by £5,836 to £531,057 as a result of the additional depreciation on the revaluation surplus being transferred to the general reserve. The total reserves of the Company increased by £47,445 to £87,997 as a result of the retained surplus for the year.

Funds

The Company has a general fund and a revaluation reserve fund the accounting policy for which are described in note 1 to the Financial Statements. These funds are considered by the Trustees to be unrestricted funds.

The Company has a Developing Young Potential fund, which is a restricted fund. The Developing Young Potential fund holds the funds donated to enable the Company to fund bursary students, including Ukrainian refugees and their families.

The Company has established a Development Fund, which is a restricted fund. The Development Fund holds the funds donated to fund expenditure on the development of the Conservatoire, including the development of IT systems, fundraising capacity and other operational improvements

The Company did not hold any designated funds as at 31 August 2023 (2022 - Enil).

Reserves policy

The Trustees intend to eliminate the deficit on general reserves by implementing a strategy to generate sustainable net profits in the future. Net profits will be generated by increasing income levels through the identification of additional revenue sources, including grants and by growing course revenue, together with continued control over costs. The Trustees intend to increase reserves to a level that will enable the Company to meet the overheads of the organisation for a three month period.

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Future plans

In the immediate future the Company is engaged in ensuring that future individual tuition and group course income continues to increase through the provision of additional tuition, group courses and holiday courses. The Company will also look at other income generating opportunities that are consistent with its aims and objectives.

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ ANNUAL REPORT

ae Future plans (continued)

The Going Concern section of this report provides information on the budget for the Fy 23-24 year and the ability of the Company to continue to operate in the future. The longer term future plans of the Company remain to maintain and develop Its range of courses, tuition and events In order to sustain the level of charitable Income from this source. The Company will need to balance the demands for tuition space arising from these plans against the other space requirements of the business and the need to maintain the lavel of rental income.

The Company plans to carefully Increase its level of engagement in the local community by partnering with schools and other local community organisations who have a need for art, music and drama services or who will use such services to address local Issues. The Company will need to balance the increased costs arlsing from the increased demands on its resources with the level of Income earned to ensure that these activitles are sustainable.

Going concern As at the 31 August 2023 the Company had cash at bank and in hand of £648,926, current assets of £805,624 and current Ilabllities of £623,167. Net current assets were £182,457.

The total borrowings of the Company of £1,363,620 are secured on the Company’s freehold property and have a repayment term of 16 years. :

The Trustees believe that they are justified in preparing accounts on a going concem basis as the strategy and financial plan for the Company means that the Company has a realistic prospect of generating sustainable profits, generating positive cash flows and rapaying its borrowings. In reaching this conclusion the Trustees have taken into account the following points:

Auditors

it Is the intentlon of the Board that auditors for the year ending 31 August 2024 will be proposed for appointment at the forthcoming Annual General Meeting.

Approved by the Board and signed on behalf of the Board of Trustees by:

Clare Comwell 23 January 2024

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE) — REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED Opinion

We‘charitablehave audited Company’)the financial for the yearstatements ended 31of AugustBlackheath 2023Conservatoire which compriseOf theMusic Statement And The ofArts FinancialLimitedActivities,(the the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

e have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and * have been prepared In accordance with the requirements of the Companies Act 2006. Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Concluslons relating to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements |s appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

OtherThe Trusteesinformation are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our, Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (CONTINUED)

Other Information (continued) In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. |f, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit:

In the light of the knowledge and understanding of the charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities, the Trustees (who are also the directors of the charitable Company for the purposes of Company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable Company or to cease operations, or have no realistic alternative but to do so.

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (CONTINUED) ee

Our responsibilities for the audit of the financial statements Ourare freeobjectives from materialare to obtain misstatement,reasonable whether assurance due toabout fraud whether or error, the andfinancial to issuestatements a Report ofas thea whole Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but Is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www. frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (CONTINUED)

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Use of our report This report is made solely to the charitable Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable Company's members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable Company and the charitable Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Matthew Elkins FCA (Senior Statutory Auditor) for and on behalf of Knox Cropper LLP Chartered Accountants and Statutory Auditors Office Suite 1 Haslemere House Lower Street Haslemere Surrey GU27 2PE

tt. Date:2¢ January 2024

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE)

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STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 August 2023

||Notes|Unrestricted
Funds|Restricted
Funds|Total
2023|Total
2022|||| |---|---|---|---|---|---|---|---| |Incomefrom||£|£|£|£|||| |||||||||| |Donations and legacies
Charitable activitles|2
2|40,277
4,513,051|121,888
16,114|162,165
1,529,165|42,303
1,303,241||| |Othertrading activities|2|-
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a||||||| |Total income||1,553,328|138,002|1,691,330|1,345,544|||| |Expenditure on|||||||| |Charitable activities||1,582,757|61,128|1,643,885|1,451,110||| |Raising funds
Totalexpenditure|3|-
1,582,757|-
61,128|-
1,643,885|-
1,451,110|||| |Net(expenditure}/income||(29,429)|76,874|47,445|(105,566)|||| |Transfersbetweenfunds||-|-|-|-|||| |Netmovement in (deficlit)/funds||(29,429)|76,874|47,445|(105,566)||| |Reconciliation offunds
Total funds at
1 September||18,733|21,819|40,552|146,118||| |Totalfundsat31August|13|(10,696)|98,693|87,997|40,552|||

All incoming resources and resources expended derive from continuing activities.

The notes on pages 16 to 27 form part of these financial statements.

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASHFLOWS AND RECONCILIATION OF NET DEBT FOR THE YEAR ENDED 31 August 2023

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|||||||||| |---|---|---|---|---|---|---|---|---| |STATEMENT OF CASHFLOWS|2023|2022| |£|£| |Net cashflow from|operating|activities|84,239|31,896| |Net|cash|used|in|Investing|activities| |Purchase|of fixed|assets|(4,910)|(2,000)| |Net cash (used|in)/provided|by financing|activities| |New|borrowing|-|-| |Repayment|of loans|(43,788)|(56,273)| |Change|In cash and cash equivalents|in the period|35,541|(26,377)| |Cash|and|cash|equivalents|at the beginning|of the| |period|613,385|639,762| |Cash|and|cash|equivalents|at the end|of the|period|648,926|613,385| |Reconciliation|of net income to net cashflow from| |operating|activities| |Net income/(expenditure) for the reporting period|47,445|(105,566)| |(Increase)/decreaseIncrease|In creditorsin|debtors|(35,241)12,335|42,64635,870| |Depreciation|59,700|58,946| |Net cashflow from|operating|activities|84,239|31,896| |As|at|As|at| |RECONCILIATION OF|NET DEBT|01.09.22|Cashflows|31.08.23| |Cash|and|cash|equivalents|613,385|35,541|648,926| |Loans|falling|due within|one year|(53,235)|42,249|(40,986)| |Loans falling|due|after more than one year|(1,344,172)|31,538|(1,312,634)| |Net debt|(784,022)|79,328|(704,694)|

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED.BY GUARANTEE) COMPANY NUMBER: 03446894 BALANCE SHEET AT 31 August 2023

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|||||| |---|---|---|---|---| |Notes|2023|2022| |Fixed assets|£|£|£|£| |Intangible|asset|6|-|-| |Tanglble assets|7|1,418,174|1,472,964| |1,418,174|1,472,964| |Current assets| |Debtors|8|466,698|121,457| |Cash|at bank and|In hand|648,926|613,385| |805,824|734,842| |Creditors:|amounts|falling| |due within one year|9|(623,167)|(623,082)| |ee|——| |Net current assets|182,457|111,760| |Total|assets|less|current| |liabilities|1,600,631|1,584,724| |Creditors: amounts falling| |due|after|more|than|one| |year|10|(1,512,634)|(1,644,172)| |__|—| |Net assets|87,997|40,552| |Represented by:| |Unrestricted Funds|13| |General Fund|(541,753)|(818,160)| |Revaluation|Reserve|531,057|536,893| |(10,688)|18,733| |Restricted Funds|13|98,693|21,819| |98,693|21,819| |Total surplus|87,997|40,552|

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The financial statements have been prepared in accordance with the special provisions in Part 15 of the Companies Act 2006 relating to small companies. Approved by the Board on 23 January 2024 and signed on behaif of the Board of Trustees by:

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Clare Cornwell

The noies on pages 16 to 27 form part of these financial statements. nn

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED | (A COMPANY LIMITED BY GUARANTEE) | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 August 2023 nl 4 Accounting policies Basis of preparation and accounting convention The accounts have been prepared under the historical cost convention with items recognised at cost or transaction yalue unless otherwise stated in the relevant notes to these accounts.

The accounts have been prepared in £ GBP Sterling, which is the functional currency of the Charity. Monetary amounts in these financials statements are rounded to the nearest £. The accounts have been prepared in accordance with the Statement of Recommended Practice Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) Second Edition issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102 March 2018) and the Companies Act 2006.

The Charity constitutes a public benefit entity as defined by FRS 102.

Income All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of Income receivable can be measured reliably. Income is deferred when the charity has received payment in advance for courses taking place in the subsequent year or where the income recognition criteria has not been met at the year end date.

Legacies are included when the charity is advised by the personal representative of an estate that a legacy is probable and that payment will be made or property transferred and the amount involved can beDonationsquantified. are recognised when received. Grants are recognised when the charity has been informed that the grant has been unconditionally awarded.

Course fees are recognised when the course tuition has been provided to the student. Rental income is recognised evenly over the term of the lease. Other trading Income is recognised when the event or activity has been provided to the customer.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it Is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources. Resources expended Includes VAT which cannot be recovered.

Raising funds consists of fundraising expenditure and allocated support costs. Charitable activities includes Tuition costs and Other Costs and support costs, including governance costs.

Debtors and creditors Trade and Other Debtors are classified as basic financial instruments and are measured and recorded in the accounts at the initial transaction price.

Debtors and Creditors are subsequently measured at amortised cost using the effective interest rate method. Financial assets classified as receivable within one year and financial liabilities classified as payable within one year are not amortised.

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 August 2023

1 Accounting policies (continued)

Tangible flxed assets

Tangible fixed assets are included at cost with the exception of land and buildings, which are included at valuation. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold Buildings - 1% on cost
Improvements to Property - 5% on cost
Computer Equipment -25% on cost
Musical Instruments - 10% on cost
Furniture and Equipment - 10% on cost
FixturesandFittings -10%oncost

Depreciation is not provided on assets that are not in economic use by the year end date.

Intangible fixed assets

Intangible fixed assets represent website development costs and are included at cost. Depreciation is provided at the rate of 50% per annum to write off the asset over its estimated useful life.

Taxation

The Company is exempt from corporation tax as it is a registered charity that has claimed tax exempt status. Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees. Restricted funds can only be used for particular restricted purposes within the objects of the Company. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in note 13 to the financial statements.

Gifts in kind

The values attributed to gifts in kind are based on a reasonable estimate of their value to the Company, or the amount actually realised. Assets given for use by the Company are recognised as incoming

resources when receivable.

Operating leases Rentals applicable to operating leases are charged to the Income and Expenditure Account over the life of the lease.

Sale and leaseback

Sale and leaseback arrangements where substantially the risks and rewards of ownership of the asset remain with the Company are accounted for as finance arrangements in accordance with the requirements of FRS 102. The assets are retained on the Company’s balance sheet and the proceeds of the sale are disclosed asa liability to the purchaser. :

Significant management judgements and estimation uncertainties The significant management judgements and estimation uncertainties are:

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 August 2023

a

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|||||||| |---|---|---|---|---|---|---| |2Income| |Unrestricted|Restricted|Total|Total| |2023|2023|2023|2022| |Donations|and|legacies:|£|£|£|£| |Donations|40,277|121,888|162,165|42,303| |40,277|121,888|162,165|42,303| |Charitable|activities:| |Course|income|1,372,482|-|1,372,482|1,199,834| |Grant|income|-|16,114|16,114|-| |Rental|income|102,141|-|102,141|81,315| |Other|Income|38,428|-|38,428|22,092| |4,513,051|16,114|1,529,165|1,303,241| |Other trading|activities| |Rental|income|-|-|-|-| |Total income|1,553,328|138,002|1,691,330|1,345,544|

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Course income is considered by the Charity to be its principal source of funding, which supports the key objectives of the Charity to promote the study, knowledge, understanding and appreciation of art, music and drama. 3 Expenditure

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||||||| |---|---|---|---|---|---| |2023|2022| |£|£| |Costs|directly|allocated|to|activity| |Tuition|costs|709,399|674,594| |Other|costs|59,125|40,354| |Outreach|costs|4,538|-| |Support|costs| |Staff costs|463,978|415,830| |Office|costs|59,036|55,775| |Marketing|and|publicity|costs|29,743|21,015| |Premises|costs|123,538|91,353| |Professional|fees|11,394|12,977| |Finance|costs|114,954|70,606| |Depreciation|59,700|58,946| |Governance|8,480|9,660| |Total expenditure|1,643,885|1,451,110|

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE)

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 August 2023

a TL TL
4 Operating profit
This is stated after charging: 2023 2022
Trustees emoluments - -
Auditor’s remuneration (IncVAT) 8,480 9,660
Depreciation oftangibleand intangible assets 59,700 58,946
5 Staff costs
2023 2022
Wages and salaries
Social security costs and pension costs		 431,875
32,103		 394,729
21,101
463,978 415,830
The average head count of staffemployed
during theyearwas:		 2023
No		 2022
No
Charitableactivities 26.58 24.92

No employee received employment benefits, excluding National Insurance and employer pension costs, of more than £60,000 during the year. (2022 — None). No Trustee received any remuneration, reimbursed expenses or other benefits in the year (2022 — None). Employment benefits received by Key Management Personnel amounted to £98,339 (2022 - £81,136). Tuition services are provided to customers by self-employed tutors. The fees paid to the tutors are included within tuition costs. The monthly average of tutors during the year was 102 (2022 — 92.25). 6 Intangible fixed assets

The intangible fixed asset represents the cost of a website for the Company with transactional capabilities. The total cost of the asset Is £27,000. A depreciation charge of £nil (2022 - £nil) was recorded on the intangible fixed asset in the year. The net book value of the intangible fixed asset as at the year-end is Enil (2022 - Enil).

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED
(ACOMPANY LIMITED BYGUARANTEE) .
NOTESTOTHEFINANCIALSTATEMENTS
FORTHEYEARENDED 31 August2023
8 Debtors 2023
£		 2022
£
Trade debtors
Prepayments and accrued income		 144,714
11,664		 115,682
5,485
Other debtors 320 290
156,698 121,457
_——- _
2023 2022
9 Creditors: amounts failing due within one year £ £
Other joans -Secured
Trade creditors
Taxation & social security
Accruals
Other creditors
Deferred income		 40,986
42 228
7,757
24,234
60,427
447 535		 53,235
61,412
7,918
12,957
70,385
417,175
623,167 623,082
Deferred income at
1 September
Released in the currentyear
Deferred in the currentyear		 417,175
(417,175)
447,535		 337,086
(337,086)
417,175
Deferredincomeat31August —__
447,535		 —_—__
417,175
Deferred income relates tocoursefees forsubsequentterms
year end date.		 termswhich have been paid before the
10 Creditors:amountsfallingdueaftermorethan
one year		 2023
£		 2022
£
Bankloan 1-2years
Bank loan—Secured—2-5 years
Bank loan— Secured—Over 5 years
Sale and leaseback liability		 44,499
157,710
1,110,425
200,000		 55,819
184,250
1,104,103
200,000
1,512,634 1,544,172

The sale and leaseback liability relates to a sale and leaseback on a parcel of land adjacent to the Conservatoire's premises. The Conservatoire sold the land for £200,000 and entered into 99 year lease on the land for an annual rental of £1, with an option to repurchase the land at the higher of £200,000 or the market value of the land at the date the purchase option is exercised less 10%. The £200,000 sale proceeds are, under FRS102, disclosed as a creditor falling due after more than one year.

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|||||| |---|---|---|---|---| |BLACKHEATH CONSERVATOIRE|OF MUSIC AND THE ARTS|LIMITED| |(A COMPANY|LIMITED|BY GUARANTEE)| |NOTES TO THE FINANCIAL STATEMENTS| |FOR THE YEAR|ENDED|31|August 2023| |14|Secured|loans|2023£|2022£| |Bank|loan|1,353,620|1,397,407| |1,353,620|1,397,407|

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|||||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |The|bank|loan|as|at|the|31|August|2023|is|secured|by|a|fixed|charge|on|certain|of|the| |Conservatoire’s|Freehold|Properties.|The|loan|bears|interest|at 3%|above|the|Bank|of|England| |Base|Rate|with|a|minimum|rate|of|3.5%|and|is|repayable|in|monthly|instalments|with|a|final| |payment|in|December|2039.| |12|Analysis|of net assets between funds|Unrestricted|Restricted|Total|Total| |Funds|Funds|2023|2022| |£|£|£|£| |Fund|balances|are|represented|by:| |Tanglble/intangible|fixed|assets|1,418,174|-|1,418,174|1,472,964| |Current|assets|706,931|98,693|805,624|734,842| |Total|liabilities|(2,135,801)|-|(2,136,801)|(2,167,254)| |(10,696)|98,693|87,997|40,552| |13|Movement|In|funds|Net|Transfer| |in|Funds|Funds|Ciftwd| |Bitwd|Wlovement|Between| |£|£|£|£| |Unrestricted|funds| |General fund|(518,160)|(29,429)|5,836|(541,753)| |Revaluation|reserve|536,893|-|(5,836)|531,057| |—|—_—|——|—__| |Total unrestricted funds|18,733|(29,429)|-|(10,696)| |Restricted|funds| |Developing|Young|Potential|21,819|8,874|-|30,693| |Fund|-|68,000|-|68,000| |Development|Fund|-|-|-|-| |Total|restricted|funds|21,819|76,874|-|98,693| |Total funds|40,552|47,445|-|87,997|

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE) | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 August 2023

13 Movement in funds (continued)

The costs charged to the restricted funds include the income that has been forgone which was funded by the restricted fund. Developing Young Potential Fund Funds to offer disadvantaged or particularly talented bursary students financial support towards the fees charged for their tuition. This fund was expanded in the year to include bursaries granted to Ukrainian refugees and their families. Donations and funds raised from events are used to provide this support.

Development Fund

Funds held to for expenditure on the development of the Conservatoire, including the development of IT systems, fundraising capacity and other operational improvements.

14 Taxation

The nature of the income received and the Company's charitable activities means that no corporation tax liability arises on the results for the year. No VAT is recoverable on inputs or payable on outputs as the Company is not required to be registered for VAT. 15 Ultimate control

The Company is under no overall control, it is administered by the Trustees.

16

Operating leases 2023 2022
£ £
Within one year
Within 2 to 5 years
Over5 years		 -
-
-		 -
”
-

17 Related Party Transactions

No Trustee received any remuneration, reimbursed expenses or other benefits in the year (2022 — None), 18 Going Concern

As at the 31 August 2023 the Company had cash at bank and in hand of £648,926, current assets of £805,624 and current liabilities of £623,167. Net current assets were £182,457.

The total borrowings of the Company of £1,353,620 are secured on the Company’s freehold property and have a repayment term of 16 years.

BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE)

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 August 2023

18 Going Concern (continued)

The Trustees believe that they are justified in preparing accounts on a going concern basis as the strategy and financial plan for the Company means that the Company hasa realistic prospect of generating sustainable profits, generating positive cash flows and repaying its borrowings. In reaching this conclusion the Trustees have taken into account the following points:

19 Post balance sheet events

There are no post balance sheet events requiring disclosure in these financial statements.

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE)

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 August 2023

NOTES TOTO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDEDTHE YEAR ENDEDYEAR ENDEDENDED 31 August 20232023		 NOTES TOTO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDEDTHE YEAR ENDEDYEAR ENDEDENDED 31 August 20232023		 NOTES TOTO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDEDTHE YEAR ENDEDYEAR ENDEDENDED 31 August 20232023		 NOTES TOTO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDEDTHE YEAR ENDEDYEAR ENDEDENDED 31 August 20232023		 NOTES TOTO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDEDTHE YEAR ENDEDYEAR ENDEDENDED 31 August 20232023		 NOTES TOTO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDEDTHE YEAR ENDEDYEAR ENDEDENDED 31 August 20232023
ean
20 Comparative information
Unrestricted Restricted Total
Income and Expenditureaccount -2022 Notes Funds
£		 Funds
£		 2022
£
Incomefrom
Donationsand legacies
Charitable activities		 2
2		 12,303
1,303,241		 30,000
-		 42,303
1,303,241
Othertrading activities 2 - - -
Total income 4,315,544 30,000 1,345,544
Expenditure on
Charitable activities 1,411,779 39,331 1,451,110
Raising funds - - -
a
Totalexpenditure 3 1,411,779 39,331 1,451,110
NetIncome (96,235) (9,331): (105,566)
Transfersbetweenfunds - - -
Net movement in funds
Reconciliation offunds
Total(deficit)/funds at 1September		 (96,238)
114,968		 (9,331)
31,150		 (105,566)
146,118
Tota!fundsat31August 13 18,733 21,819 40,552

All incoming resources and resources expended derive from continuing activities.

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 August 2023

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a

20 Comparative information (Continued)

Comparative information (Continued)
Income -2022
Unrestricted Restricted Total
2022 2022 2022
£ £ £
Donationsand legacies:
Donations		 12,303 30,000 42,303
12,303 30,000 42,303
Charitable activities:
Courseincome
Grantincome		 1,199,834
-		 -
-		 1,199,834
-
Rental income
OtherIncome		 81,315
22,092		 -
-		 81,315
22,092
1,303,241 - 1,303,241
Othertrading activities
Rentalincome		 - - -
Total income 1,315,544 30,000 1,345,544
Analysisof netassetsbetweenfunds -2022
Fund balances are represented by:
Tangible/intangible fixed assets
Current assets
Total liabilities		 Unrestricted
Funds
£
1,472,964
713,023
(2,167,254)		 Restricted
Funds
£
-
21,819
-		 Tota!
£
1,472,964
734,842
(2,167,254)
18,733 21,819 40,552

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BLACKHEATH CONSERVATOIRE OF MUSIC AND THE ARTS LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 August 2023

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20 Comparative Information (Continued)

Movement in funds 2022 funds 2022

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|||||||| |---|---|---|---|---|---|---| |Movement|in funds 2022 funds 2022|Net|Transfer| |Movement|Between| |Bifwd|in|Funds|Funds|Clfwd| |£|£|£|£| |Unrestricted|funds| |General|fund|(427,761)|(96,235)|5,836|(518,160)| |Revaluation|reserve|542,729|-|(5,836)|536,893| |Total|unrestricted|funds|114,968|(96,235)|-|18,733| |Restricted|funds| |Developing Young|Potential Fund|31,150|(9,331)|-|21,819| |Outreach|Fund|-|-|-|-| |Total|restricted|funds|31,150|(9,331)|-|21,819| |Total funds|146,118|(105,566)|-|40,552|

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