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2025-03-31-accounts

Registered number: 04793062 Charity numbers: 1099385 & SC052157

LOST CHORD UK

(A company limited by guarantee)

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the charity, its Trustees and advisers 1
Trustees' report 2 - 15
Independent examiner's report 16 - 17
Statement of financial activities 18
Balance sheet 19 - 20
Notes to the financial statements 21 - 34

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2025

Trustees K B Clearly (appointed 18 July2025)
B W Frith
M E Procter
K J Bottomley (resigned 29 August 2024)
E A Holmes(resigned 11 September 2024)
D Stone(resigned 30 November 2025)
Company registered
number
04793062
Charity registered numbers
1099385 and SC052157
Registered office
The Wesley Centre
Blyth Road
Maltby
Rotherham
S66 8JD
Chief executive officer
Jean Collingwood
Independent Examiner
Rachel Heath FCCA DChA
BHP Professional Services Limited
Albert Works
Sidney Street
Sheffield
S1 4RG

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Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2025

The Trustees present their annual report together with the financial statements of the Lost Chord UK for the 1 April 2024 to 31 March 2025. 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 the 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 (FRS102) (effective 1 January 2019).

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

a. Objectives and activities

Lost Chord UK exists to improve the health, wellbeing, and quality of life of people living with dementia and other neurological conditions, and of those who care for and support them. Our primary beneficiaries include people affected by conditions such as Dementia, Parkinson’s disease, Motor Neurone Disease, stroke, and other acquired or progressive neurological conditions, alongside supporting family members, carers, and wider support networks. Our mission: We transform lives through interactive live music experiences, empowering people with dementia and neurological conditions to stay connected to their identity, voice and community.

b. Long-term aims

Alongside its four core strategic commitments, Lost Chord UK remains committed to the following long-term goals, which underpin its Theory of Change: All of our projects and KPI’s are targeted and measured against these goals.

.

Improve mental, emotional, and physical health through live interactive music.

Our four main core organisational commitments

Lost Chord UK delivers its charitable objectives through a clear, evidence-led business plan that acts as a practical roadmap for governance, finance, fundraising, communications, and operations. During the year, the trustees focused delivery around four core strategic aims, which align directly with the charity’s Theory of Change, outcomes framework, and performance indicators.

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Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

Objectives and activities (continued)

1. Be There Now for People Living with Dementia, Neurological Conditions and Their Carers: Increasing access to live interactive music to improve health and wellbeing.

2. Strengthen the Lost Chord UK Community: Growing and connecting musicians, volunteers, partners and supporters.

3. Build a Better Future Through Music: Education, sustainability, and inclusion rooted in community.

4. Be the Voice and Champion of Live Interactive Music as Essential: Raising awareness, sharing knowledge, and driving national change.

c. Public Benefit

The trustees confirm that they have had due regard to the Charity Commission’s guidance on public benefit and are satisfied that Lost Chord UK’s activities provide clear and demonstrable public benefit. The Trustees regularly review how planned activities contribute to the charity’s aims and objectives and ensure that the charity’s resources are applied for the public benefit.

The charity’s work delivers direct benefit to people living with dementia and other neurological conditions by improving communication, emotional wellbeing, reducing isolation, supporting cognitive and physical engagement, to improve their quality of life. These benefits extend to carers and family members, who experience reduced stress, increased connection with their loved ones, and opportunities for shared positive experiences.

Lost Chord UK also delivers wider public benefit by strengthening communities, increasing understanding of dementia and neurological conditions, through inclusive, visible, and accessible cultural activity. By working in partnership across health, social care, and the voluntary sector, the charity contributes to preventative approaches that support people to remain active, connected, and safe for longer, reducing pressure on statutory services.

All activities are delivered in furtherance of the charity’s stated objects, are open to those who need them most, and are regularly reviewed to ensure they remain effective, proportionate, and aligned with public benefit principles.

In shaping the charity’s objectives for the year and planning its activities, the Trustees have had due regard to the Charity Commission’s guidance on public benefit, including guidance on public benefit and fee charging.

Lost Chord UK delivers its charitable purposes through a wide range of participatory music activities in community settings, particularly supporting people who are excluded from live music experiences due to ill health, disability, isolation or poverty. Activities are designed to be entertaining, educational and therapeutic, and are typically delivered through medium- to long-term projects that provide sustained benefit to participants.

The charity relies on a broad mix of income sources, including donations, legacies, grants, fundraising events and fees and charges, to meet its operating costs. When setting fees and charges, the Trustees give careful consideration to accessibility for individuals and organisations on low incomes, while balancing this against the need to ensure fair and sustainable payment to professional musicians, in line with the Musicians’ Union guidance Fair Pay for Fair Play .

The charity also provides paid professional opportunities for highly skilled musicians, supporting them through induction to develop the skills required to work as community music leaders. This contributes to wider public benefit by strengthening the capacity and quality of participatory music practice beyond the charity itself.

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Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Objectives and activities (continued)

d. How we achieve it

The charity’s purpose is achieved through the delivery of live, high-quality, interactive music experiences that place people at the centre of each session. Lost Chord UK specialises in music that is highly interactive participatory rather than performative, enabling individuals to engage in ways that reflect their abilities, preferences, memories, and identities. Through shared music-making in community and care settings we aim to reduce isolation, support emotional expression, stimulate cognition, encourage physical movement, and strengthen human connection, outcomes that are particularly vital for people whose communication, confidence, or independence may be affected by neurological illness.

Lost Chord UK works with a national roster of independent professional musicians of exceptional calibre. These musicians are selected not only for their outstanding musical ability, but for their capacity to work responsively, sensitively, and creatively with people living with dementia and neurological conditions. All musicians receive specialist training in dementia- and neuro-inclusive practice, including person-centred engagement, spontaneous improvisation, non-verbal communication, and adapting in real time to the needs and cues of participants. This depth of skill enables sessions to be shaped with people rather than for them, ensuring that each experience is meaningful, dignified, and inclusive.

The charity’s objectives extend beyond the individual participant to include carers, families, and communities. By creating shared musical experiences, Lost Chord UK supports relationships, reduces the emotional burden of caring, and offers moments of joy, recognition, and mutual understanding. Our work also contributes to wider community wellbeing by, increasing awareness of dementia and neurological conditions, and demonstrating the vital role that music creativity, communication and culture play in health and social care.

In pursuing these objectives, Lost Chord UK aims to ensure that people who are often excluded from cultural life, due to ill health, disability, poverty, or social isolation, have equitable access to live music of the highest quality. The charity is committed to delivering this work collaboratively, ethically, and sustainably, placing lived experience, professional excellence, and compassion at the heart of everything it does.

Where and How We Work

Lost Chord UK supports people throughout the UK from our hub in South Yorkshire at the earliest stages following a dementia or neurological diagnosis in community spaces through to advanced illness, end-of-life, and bereavement with care and hospice partners. Our work is intentionally designed to remain alongside people as their needs change, ensuring continuity, familiarity, and trust for both individuals and those who care for them. We deliver year on year impact by working within close multi partnerships with care, community, business, charity, grassroot and faith-based partners often acting as the lead partners, with our musicians, acting as the main draw for increasing community engagement.

End to end- when people need help most

In community settings, Lost Chord UK delivers inclusive music sessions in libraries, churches, community centres, dementia cafés, sports and cultural venues, and other accessible public spaces. The sessions support people to remain active, connected, and visible within their communities for as long as possible.

An anchor for impactful creative partnership

Working in close partnership with local authorities, health and social care teams, fire and rescue services, voluntary organisations, and grassroots groups, Lost Chord UK often acts as the creative anchor within multi-agency provision. Our professional musicians create welcoming environments that draw people together, reduce barriers to engagement, and enable us and our partners to connect with participants in meaningful, non-clinical ways.

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Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

Objectives and activities (continued)

As people’s needs increase and become more complex, Lost Chord UK continues its support within care homes, nursing homes, hospitals, and hospices. Sessions in these settings are carefully adapted to ensure they remain person-centred, responsive, and dignified. This includes small-group work, one-to-one bedside sessions, and music at end of life, where live music can offer comfort, reassurance, familiarity, and moments of connection when words are no longer accessible.

Lost Chord UK’s professional musicians work is strengthened by a dedicated and experienced volunteer network, who provide practical support, continuity, and additional relational capacity within sessions. Volunteers are carefully recruited and trained to work alongside musicians, participants, and family and employed carers, helping to ensure sessions are safe, inclusive, and supportive for all involved.

Always impact led by the people we support

Across all settings, Lost Chord UK is 100% beneficiary-led and evidence-informed. Programmes are shaped by the voices, responses, and lived experiences of people with dementia, neurological conditions, and their carers.

360° multiuser and partner feedback from every single session we deliver, is methodically evaluated, and used to continuously refine our delivery, ensuring that the charity’s work remains effective, shaped by lived experience and relevant to the people we support. Our focus on constant incremental responsive improvement, learning from what works and what doesn’t means that we are grounded in real-world impact, linked to impact goals and outcomes, regularly reviewed in our “Theory of Change”.

e. Strategies for achieving our objectives

During the year ended 31 March 2025, Lost Chord UK delivered a national programme of high-quality, live, interactive music sessions for people living with dementia and other neurological conditions and support for their carers and families. All activity was designed to directly further the charity’s objects by improving physical and mental health and wellbeing, connection, and quality of life through professionally delivered, person-centred musical engagement.

Interactive Music Delivery

Lost Chord UK’s core activity is the delivery of live, interactive music sessions led by a national roster of approximately 65 exceptional professional musicians. All musicians are carefully selected for their musical excellence and trained in specialist interactive techniques, including improvisation, responsive song-leading, non-verbal communication, and realtime adaptation to mood, energy, and ability. Sessions are shaped moment by moment by participants, enabling individuals to lead, contribute, and express themselves regardless of cognitive or physical ability.

Sessions are delivered across a wide range of settings, including community venues (such as libraries, churches, community centres, dementia cafés, and cultural spaces), care and nursing homes, hospitals, and hospices. Delivery formats include large inclusive community groups, smaller group sessions, one-to-one bedside work, and end-of-life music support.

Community-Based Prevention and Inclusion

A significant proportion of activity takes place in community settings, supporting people from the onset of diagnosis to remain active, visible, and connected within their local communities. These sessions reduce social isolation, strengthen informal support networks, and provide accessible entry points for people who may not otherwise engage with health or support services. Lost Chord UK frequently works in partnership with local authorities, health providers, fire and rescue services, and voluntary organisations, using music as a catalyst for engagement, prevention, and community resilience.

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Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

Objectives and activities (continued)

Support for Carers and Families

Lost Chord UK’s activities are designed to support not only individuals with dementia or neurological conditions, but their carers and families. Interactive sessions and choirs create shared positive experiences that provide respite, help maintain relationships, improve communication, and reduce emotional strain. Carers frequently report increased confidence, reduced stress, and a greater sense of support and connection with their local community and others facing similar challenges.

Workforce, Volunteers, and Quality Assurance

Alongside its roster of independent professional musicians, Lost Chord UK is supported by a skilled volunteer network who assist with session delivery, participant support, and relationship-building. Volunteers are trained to work in dementiaand neuro-inclusive environments and play a vital role in maintaining continuity and quality across programmes.

Quality assurance is central to all activity. Lost Chord UK actively gathers feedback from participants, carers, partners, and commissioners, using this evidence to review performance, inform musician development, develop volunteers, and continuously improve delivery. This feedback-led approach ensures that sessions remain responsive, effective, and aligned with beneficiary needs. Lost Chord UK has continually maintained its ISO 9001 status to ensure professional management of its remote and flexible management team and attained a Grade 1 full pass ISO9001 accreditation, following their most recent inspection for 2025.

Innovation, Learning, and Sector Contribution

Lost Chord UK continues to develop and refine its practice through ongoing learning and innovation. Insights gained from 26 years of delivery inform training, partnership development, and advocacy, helping to embed music as a meaningful and effective tool within health, social care, and community settings. Where appropriate, learning is shared with partners and the wider sector to support sustainable, evidence-based approaches to dementia and neurological inclusion.

Achievements and performance

a. Achievements and Performance in 2024-2025

The period from June 2024 to March 2025 marked Lost Chord UK’s 25th anniversary year, a significant milestone reflecting both the charity’s longevity and its continued relevance in responding to the needs of people living with dementia and other neurological conditions, their carers, and the communities that support them.

Delivery and Reach

During the reporting period, Lost Chord UK delivered 624 live, interactive music sessions across England and Wales, reaching 15,188 people in total. Sessions took place in care settings, community venues, and specialist charity and health environments, ensuring support was accessible across the full spectrum of need.

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Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

Achievements and performance (continued)

Sessions inspired active participation through singing, memory recall, movement, dance, storytelling, and improvisation, approaches shown to support cognitive function, emotional wellbeing, and both mental and physical health.

Quality and Participant Experience

Quality remains central to Lost Chord UK’s delivery model. Feedback collected throughout the year shows that 99% of participants and partners rated sessions as Excellent or Good, reflecting the high standard of musicianship, interaction, and person-centred practice delivered across all settings.

Participants frequently reported improved mood, increased confidence, moments of reconnection with memories and identity, and a renewed sense of belonging. Carers highlighted the value of shared positive experiences, reduced stress, and strengthened emotional connection with the people they support.

Volunteers and Community Capacity

Volunteers played a vital role in extending Lost Chord UK’s reach and strengthening community connection. During the year:

Volunteers supported session delivery, participant engagement, and continuity of relationships, helping ensure sessions were welcoming, inclusive, and sustainable.

Investment in Musicians and Delivery Excellence

Lost Chord UK invested £97,831 directly in professional musicians during the year. This investment reflects the charity’s commitment to quality, fairness, and impact.

Musicians are not only exceptional performers but are trained in dementia- and neuro-inclusive interactive practice, including improvisation, reminiscence, responsive facilitation, and emotional connections. This ensures sessions meet both artistic and therapeutic needs and remain adaptable to participants’ abilities and preferences.

Learning, Listening, and Strategic Development

Between March and June 2025, Lost Chord UK undertook a community wide “WHY” survey, gathering insight from beneficiaries, carers, musicians, partners, and stakeholders. The resulting WHY report provided a clear evidence base for understanding what matters most to the communities served and how music can best support health, mental health, and wellbeing.

The findings revealed shared values, beliefs, and priorities and directly informed the development of:

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Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

Achievements and performance (continued)

This work strengthened the charity’s beneficiary-led, evidence-based approach and ensured that future delivery is shaped by informed need rather than assumption.

What This Demonstrates

Lost Chord UK’s achievements during its 25th anniversary year demonstrate measurable impact in mental health, emotional resilience, social connection, and quality of life for people who are often excluded from meaningful cultural and wellbeing opportunities. The year also marked a step change in how the charity listens, learns, and plans, placing beneficiaries firmly at the centre of strategic decision-making.

b. Summary of Income Streams and Partnership Development over the year

During the year ended March 2025, the charity benefited from a wide and diversified range of income streams, reflecting a deliberate strategy to reduce reliance on any single source of funding. As outlined in the Impact Report, income from care settings accounted for 29.7% of total income, while community-based sessions accounted for 8.9%. The Trustees intend to grow community income further to achieve a more balanced income profile alongside care delivery, primarily through multi-partner funding models and strategic collaborations.

Notable partnership developments during 2025 included a new relationship with Coach House Pianos , a world leader in fine pianos. Coach House Pianos hosted a prestigious fundraising concert in December 2024

In January 2025, the charity secured a new partnership with John Lewis Community Matters scheme , alongside income from Waitrose , part of the same group. This funding fully supported nine interactive music sessions at Kingston Library in Kingston upon Thames.

The charity also continued its second year of partnership with Rotherham United Community Trust through its More Than Football initiative . This partnership part-funded a year-long Music That Moves project in South Yorkshire, combining music and physical activity to improve health and wellbeing and provide pathways into sport. The Trustees intend to replicate this model with other football and sports organisations, recognising the combined benefits of music and physical activity for physical and mental health.

2025 also marked the charity’s first delivery in a school setting, through a partnership with Read School in North Yorkshire. A pupil shadowed Lost Chord UK musicians to learn interactive music techniques and later supported fundraising activity within the school. This work forms the foundation for a planned UK-wide intergenerational programme, designed to build neuro-inclusive awareness among children, support their own mental health through music, and equip them with practical skills to support friends and family using interactive music techniques.

Another key partnership was established with Sheffield Fire and Rescue Service through the launch of a Community Chorus in South Yorkshire. Participants co-created and performed music carrying life-saving fire safety messages, addressing the increased risk of fire and injury faced by people living with dementia and other neurological conditions. This initiative has been cited in two award submissions and has already secured an Award of Merit.

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Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

Achievements and performance (continued)

The Trustees also plan to develop a focused campaign to encourage in-memory and legacy giving, supported by local stakeholders, recognising the importance of long-term sustainability.

Financial review

a. Income

During the year ended 31 March 2025, the charity’s total income decreased from £141,706 in 2024 to £103,989. This reduction was primarily driven by a significant fall in voluntary income, reflecting wider national trends associated with the cost-of-living crisis.

Income from donations and legacies reduced from £96,511 in 2024 to £57,443 in 2025. A more detailed analysis (note 4) shows that public donations fell from £71,618 in 2024 to £28,539 in 2025. Trustees recognise that this decline mirrors the pressures faced by individual donors and community fundraisers during the year.

Legacy income showed a modest increase, rising from £16,523 in 2024 to £20,049 in 2025. While legacies continue to provide important support, they remain inherently unpredictable and are not relied upon for ongoing operational sustainability.

Grant income remained broadly stable and increased slightly from £8,370 in 2024 to £8,855 in 2025. This was achieved through sustained effort by the charity, despite a reduction in funding from local councillors and ward budgets. Trustees note that these local grants continued to play a valuable role in supporting community-based sessions.

Income from charitable activities, primarily derived from interactive music sessions delivered in care and community settings, increased from £41,580 in 2024 to £43,327 in 2025. This reflects a continued strategic focus on growing earned income through a full-cost-recovery approach, particularly within community delivery, to better offset the subsidised nature of work delivered in care settings.

This growth builds on earlier progress, with income from charitable activities standing at £39,676 in 2023, demonstrating steady and managed improvement over time. The increase followed a comprehensive review and renegotiation of minimum contributions from care and community partners in January 2025. This included moving away from a flat contribution model and introducing higher minimum contributions for duo sessions, which incur increased delivery costs.

In parallel, the charity undertook a consultation with musicians between January and March 2025 to assess whether fees remained fair and competitive within the sector. As a result, solo musician fees were increased, addressing identified dissatisfaction while maintaining overall cost control.

b. Expenditure

Total expenditure for the year ended 31 March 2025 was £206,511, compared with £276,931 in 2024. This reduction reflects a deliberate and managed programme of cost control, building on actions taken in the previous year, while continuing to support a similar number of beneficiaries.

While the total number of sessions delivered reduced from 910 in 2024 to 624 in 2025, this reflects a deliberate rebalancing of delivery rather than a reduction in impact or reach. During 2025 the charity supported 15,188 beneficiaries, compared with 18,200 in 2024, demonstrating that similar levels of benefit continued to be achieved through a more efficient and strategically balanced delivery model.

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Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

The charity has increasingly focused on maintaining a balanced programme of work across both care and community settings. This includes continued delivery in care homes and hospice environments, alongside expanded community-based sessions designed to support people earlier in their dementia or neurological journey and to provide greater support to unpaid carers. Community venues allow the charity to reach people at the point of diagnosis and before crisis, helping to sustain wellbeing and delay the need for higher levels of care, while care and end-of-life settings remain a vital part of delivery.

This balanced approach enables the charity to maximise social impact across the full care pathway, supporting individuals and carers at different stages of need, while ensuring that resources are used efficiently and responsibly in a period of reduced voluntary income.

This approach also enabled the charity to act as a coordinating partner, bringing together multiple contributors to support delivery. Examples included grant funding from the Rotherham United Community Trust, free room hire from churches and the Salvation Army, food donations, and contributions from a local CIC towards musician and volunteer costs. This reduced reliance on single funding sources and spread delivery costs more equitably, while supporting carers and helping people remain connected within their communities for longer.

Fundraising expenditure reduced from £20,783 in 2024 to £14,368 in 2025, reflecting tighter cost controls and a scaling back of activity in line with income levels.

Total expenditure on charitable activities (note 8) reduced from £256,148 in 2024 to £192,143 in 2025. A detailed analysis of costs shows that musician fees reduced significantly from £168,110 in 2024 to £97,831 in 2025. While this partly reflects a lower number of sessions delivered, substantial efficiencies were also achieved through improved scheduling and clustering of sessions by location. As shown in note 8, musician fees reduced from £134,033 in 2024 to £83,914 in 2025.

Musician travel costs also reduced considerably, from £19,780 in 2024 to £10,695 in 2025, reflecting better planning and reduced duplication of travel. Other direct costs, including cancellations, reduced from £14,297 in 2024 to £3,222 in 2025, representing a significant improvement in delivery efficiency.

Support costs in 2025 totalled £94,312, compared with £88,038 in 2024. The increase was primarily due to staffing costs, which rose from £58,293 in 2024 to £80,566 in 2025. Trustees note that the 2024 figure included a six-month period without a CEO in post, which temporarily reduced expenditure. In addition, social security costs (note 11) increased from £760 in 2024 to £2,971 in 2025, reflecting changes in national insurance contributions during the period.

Governance costs (note 9) reduced overall. HR and payroll costs fell from £7,619 in 2024 to £180 in 2025. Accountancy costs reduced from £4,877 in 2024 to £3,704 in 2025. Further savings were achieved in staff travel and accommodation (note 8), which reduced from £5,679 in 2024 to £1,016 in 2025. Additional efficiencies were introduced across IT and data storage costs during the year, with the full financial benefit expected to be realised in the following financial period.

Total balance carried forward at the end of the financial year was £124,416.

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Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

c. Reserves Policy

During the year, the Trustees reviewed and amended the reserves policy, reducing the target from six months to three months of operating costs. This change reflects both the charity’s modest turnover and the requirements of several grant funders and aligns with a wider national shift in expectations for charities of similar size and scale.

The Trustees consider three months’ reserves to be sufficient to:

Reserves are monitored through regular management accounts and rolling cash flow forecasts, and the policy is reviewed annually or sooner if circumstances change.

d. Risk assessment

The Trustees have assessed the principal risks to which the charity is exposed, including operational, financial, strategic and reputational risks, and are satisfied that appropriate systems and controls are in place to mitigate these risks. This assessment is undertaken on at least an annual basis and is reviewed regularly throughout the year.

The Trustees recognise that the charity operates in a challenging external environment and that risk management is integral to ensuring the charity’s sustainability and ability to deliver its charitable purposes. The Senior Management Team reviews operational and financial risks on a monthly basis, with oversight provided by the Finance and Risk Committee, which considers the risk register, mitigations and emerging risks at each meeting. Key risks are reported to the Board of Trustees.

The principal risks identified, together with the actions taken to mitigate them, include:

Financial sustainability and income generation

The most significant risk faced by the charity is the ability to secure sufficient sustainable income, particularly unrestricted funding, to support core activities and overheads. The fundraising environment remains highly competitive, with increasing demand on funders and donors.

Mitigation: The Trustees have approved an adaptive income strategy focused on diversifying income streams, including earned income from projects, fees and charges, individual giving, in-memory donations, legacies, corporate partnerships and fundraising events, alongside grant funding for defined projects. Cash flow forecasts are reviewed regularly, and contingency plans are in place should income not materialise as anticipated.

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Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

Cost pressures and economic conditions

Rising demands for our services and costs associated with the cost-of-living crisis have increased financial pressure on the charity, impacting operating costs and placing additional strain on freelance musicians, volunteers and partner organisations.

Mitigation: The charity closely monitors expenditure, prioritises essential spending, and regularly reviews staffing and delivery models to ensure value for money while maintaining quality. Fees paid to musicians are reviewed in line with the Musicians’ Union guidance, balanced against affordability for partner organisations.

Challenging fundraising climate

There is a risk of reduced income due to the ongoing and deepening challenges within the charitable fundraising landscape, particularly for arts, health and wellbeing charities.

Mitigation: The Trustees actively review fundraising performance and opportunities, seek to broaden the charity’s supporter base, and develop new audiences and propositions aligned to emerging needs, including community-based and preventative work.

Staff, musician and volunteer wellbeing

The wellbeing and retention of staff, freelance musicians and volunteers is recognised as a key risk, particularly in light of workload pressures and financial uncertainty.

Mitigation: The charity promotes flexible working arrangements, provides clear communication and support, and invests in training and development through project-based learning opportunities, helping to build skills and resilience within the workforce and wider community.

Low level of unrestricted reserves

The charity currently holds limited unrestricted reserves, which constrains financial flexibility and resilience.

Mitigation: Rebuilding unrestricted reserves is a key strategic priority. The Trustees monitor reserve levels closely and have agreed plans to improve reserve coverage over time through improved operating surpluses and diversified income.

e. Going concern statement

The Trustees have considered the Charity’s ability to continue as a going concern for a period extending to March 2027, being at least twelve months from the expected approval date of the financial statements for the year ended 31 March 2025. The assessment has taken into account the Charity’s financial performance to date, anticipated income, approved budgets, cash flow forecasts, and a range of operational scenarios, including prudent worst-case cash flow forecasts for the period to April 2026 and March 2027 alongside the actions being taken to strengthen long-term sustainability.

The Trustees note that the charity has made material progress during the year in strengthening its underlying financial model. In particular:

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Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

The Trustees also note that Choirs That Care is now an established and fully funded programme, with proven delivery in South Yorkshire and a grant funder already engaged to support expansion into West Yorkshire. This programme provides both financial stability and a scalable model aligned with the charity’s mission to support carers and families.

In addition to earned income, the charity has demonstrated the viability and scalability of event-based fundraising. Challenge and endurance fundraising, launched in 2024, exceeded income targets and has been identified as a key growth area. The Trustees plan to expand this activity so that event-based fundraising grows from its current level of approximately 5.9% of income to nearer 20% of total income over the medium term. This income stream is unrestricted, repeatable, and scalable, providing flexibility to support core costs.

The remaining proportion of income is planned to be generated through two strategic project strands, both of which incorporate CEO time alongside delivery by musicians and volunteers. These projects are designed to:

Alongside this, the Trustees have agreed a significant strategic push on appeals and events to increase income and our established legacy and in-memory giving, moving away from reliance on occasional one-off legacies left in Wills, which are inherently more unpredictable and can cause income volatility. The charity will focus on developing regular in-memory fundraising, tribute giving, and online legacy promotion. The Trustees aim for this income stream to grow steadily through 2026, with the ambition that it contributes up to 30% of total income over time as these approaches mature.

The Trustees are further encouraged by the charity’s broad funding base growing national profile and are actively engaged in discussions with the library service regarding the development of a potential nationwide programme. While this is at an early stage, it represents a significant opportunity to expand reach and impact using a scalable model consistent with the charity’s values and expertise.

Taking all of the above into account, the Trustees believe that the charity has:

Accordingly, the Trustees are satisfied that it is appropriate to prepare the financial statements on a going concern basis. The Trustees will continue to monitor performance closely and will review forecasts and assumptions regularly to ensure that timely action can be taken if required.

Structure, governance and management

a. Constitution

Lost Chord UK is a company limited by guarantee, incorporated on 10 June 2003, and registered as a charity on 11 September 2003. The charity operates under its Articles of Association, which establish its objects and powers in accordance with the Memorandum of Association. Prior to incorporation, Lost Chord operated as a project under the auspices of Voluntary Action Rotherham, delivering services since its inception in 1999.

Page 13

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

Structure, governance and management (continued)

b. Methods of appointment or election of Trustees

The Trustees, who also serve as the directors of the company, are recruited through a structured process informed by a skills gap analysis to ensure the board maintains a diverse and effective range of expertise. Trustees are selected based on their alignment with the charity's needs, mission, and values, and appointments are formally approved through a board resolution, which is duly minuted. Induction and ongoing governance training are provided to all Trustees to ensure they are equipped to fulfill their roles effectively.

c. Organisational structure and decision-making policies

The Board of Trustees holds overall responsibility for setting the charity's strategy, ensuring policies are in place, and monitoring compliance. Day-to-day operational management is delegated to the Chief Executive, who reports regularly to the Trustees. The Trustees are committed to upholding robust governance practices, including regular reviews of employment policies, contracts, and management procedures to ensure continued compliance with current regulations and best practices.

d. Collaborative Partnerships

Lost Chord UK fulfills its charitable objectives through collaborative work with a wide range of organisations, including South Yorkshire Fire and Rescue, the NHS, dementia cafés, the MS Society, children’s hospices, and palliative care providers. These partnerships enable the charity to expand its reach and deliver innovative programs, such as community choirs, physical activity initiatives in collaboration with Rotherham United Football Trust, and educational projects with schools, places of worship, and local councils to combat social isolation. Lost Chord is also a proud member of the National Dementia Action Alliance, working alongside organisations such as Age UK, Alzheimer’s Society, and Dementia UK to improve the lives of those affected by dementia and other neurological conditions.

e. Transparency in Trustee Remuneration

Lost Chord UK ensures full transparency and accountability in financial matters. It is the charity's policy that Trustees do not receive payment for services unrelated to their governance role, in compliance with Charity Commission and Companies House regulations. In the rare instance where Trustees provide services outside their governance duties, the following rigorous processes are observed:

  1. Approval Process: Payments are subject to Board approval, documented in meeting minutes.

  2. Conflict of Interest: Trustees must declare any conflicts of interest and abstain from decision-making related to their remuneration.

  3. Fair Market Value: Payments are benchmarked to fair market rates in line with the charity’s procurement policies.

  4. Annual Disclosure: Any payments made are transparently disclosed in the charity’s annual report.

These measures ensure that all financial transactions are in the best interests of the charity and its beneficiaries.

Page 14

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

Losf CHORD UK IA company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Structure. 8overnance and management Icontinuedl l. Rlsk management The TrLtstees are committed to proactively identifying and mitigating risks that may impact the chariws operations. A robust risk management framework Is In place. eneompassing financial controls. strateglc re￿ews. and compliance monitoring. Regular Trustee meetings focus on strategic plannin8 and the review of financial forecasts, operating budgets, and cash flow to safeguard the charity's financial stability. Additionally, standard accounting systems are used to minimize risks of fraud and error. maintaining these governance structures and management practice5, Lost Chord UK continue5 to ensure accountability. transparency. and sustainability in all its operations. enabling the charlty to achieve Its mission effectively. MÈmbèrs' Ilablllty The Members of the charity 8uarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. ststement of Trustees. re5pon5ibilitles The Trustees Iwho are also the directors of the charity for the purpose5 of company lawl are responsible for preparin8 the Trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom GenerallyAccepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they 8ive a true and fair view of the state of affairs of the charity and of its incomin8 resource5 and application of resources, includin8 Its income and expenditure, for that pèriod. In prepartng these financial statèments, the Trustees are required to.. select suitable accountin8 policies and then apply them consistently,. observe the methods and principles of the Charities SORP IFRS 1021,. make judgements and accounting estimates that are reasonable and prudent- state whether applicable UK Accounting Standards IFRS 1021 have been followed,. prepare the financial statements on the going concem basis unless It is inapproprlate to presume that the charlty will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 Companie5 Act 2006. They are 3150 re5pon5ible for safeguarding the ssets of the tharity and hence for takinÈ reasonable stèps for the prèvention and detertion of fraud and othèr irregularities. Approved by order of the members of the board of Trustees and signed on their behalf by: B W Frlth Trustee Date= 28 January 2026 Page 15

LOST CHORD UK

(A company limited by guarantee)

INDEPENDENT EXAMINER'S REPORT

FOR THE YEAR ENDED 31 MARCH 2025

Independent examiner's report to the Trustees of Lost Chord UK ('the charity')

I report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 March 2025.

Responsibilities and basis of report

As the Trustees of the charity (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 ('the 2005 Act'), the Charities Accounts (Scotland) Regulations 2006 (as amended) ('the 2006 Accounts Regulations') and the Companies Act 2006 ('the 2006 Act'). You are satisfied that the accounts of the charity are not required by charity or company law to be audited and have chosen instead to have an independent examination.

Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity's accounts carried out under section 44(1)(c) of the 2005 Act and section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the requirements of Regulation 11 of the 2006 Accounts Regulations and the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity is required by company law to prepare its accounts on an accruals basis and is registered as a charity in Scotland your examiner must be a member of a body listed in Regulation 11(2) of the Charities Accounts (Scotland) Regulations 2006 (as amended). I can confirm that I am qualified to undertake the examination because I am a registered member of ACCA, 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 in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act and Regulation 4 of the 2006 Accounts Regulations; or

  2. the accounts do not accord with those records and with the accounting requirements of Regulation 8 of the 2006 Accounts Regulations; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

Page 16

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

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 accounts to be reached.

Signed: Rachel Heath

Signer ID: WKOLTHN6RI...

Dated: 28/01/2026 GMT FCCA DChA

BHP Professional Service Limited Albert Works Sidney Street Sheffield S1 4RG

Page 17

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2025

Note
Income from:
Donations and legacies
4
Charitable activities
5
Investments
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward
17		 Unrestricted
funds
2025
£
47,392
43,327
3,219
93,938
14,368
188,079
202,447
(108,509)
226,938
(108,509)
118,429		 Restricted
funds
2025
£
10,051
-
-
10,051
-
4,064
4,064
5,987
-
5,987
5,987		 Total
funds
2025
£
57,443
43,327
3,219
103,989
14,368
192,143
206,511
(102,522)
226,938
(102,522)
124,416		 Total
funds
2024
£
96,511
41,580
3,615
141,706
20,783
256,148
276,931
(135,225)
362,163
(135,225)
226,938

The Statement of financial activities complies with the requirements for an income and expenditure account under the Companies Act 2006 and includes all gains and losses recognised in the year.

Page 18

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

REGISTERED NUMBER: 04793062

BALANCE SHEET

AS AT 31 MARCH 2025

Note
Fixed assets
Tangible assets
14
Current assets
Debtors
15
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due within one year
16
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
17
Unrestricted funds
17
Total funds		 22,171
107,300
129,471
(5,055)		 2025
£
-
-
124,416
124,416
124,416
5,987
118,429
124,416		 14,969
219,794
234,763
(7,825)		 2024
£
-
-
226,938
226,938
226,938
-
226,938
226,938

Page 19

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK IA company Ilm5ted by guarantee) REGISTERED NUMBER.. 04793062 BALANCE SHEET ICONTINUEDI ASA T31 MARCH 2025 The charity was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not requlred the company to obtaln an audit for the year Sn questlon In accordance wSth sectlon 476 of Companies Act 2006. The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial ststements. The financial statements have been prepared In accordance wlth the provisions applitable to entities subject to the small companies regime. The flnancSal statements were approved and authorised for issue by the Trustees and slgned on their behalf bv.. B W Frlth Date- 28 January 2026 The notes on pa8es 21 to 34 fofm part of these financial statements. Page 20

(A company limited by guarantee)

LOST CHORD UK

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1. General information

Lost Chord UK is a private company limited by guarantee incorporated in England and Wales and a charity registered in England & Wales and Scotland. The registered office is The Wesley Centre, Blyth Road, Maltby, Rotherham, S66 8JD.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

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

Lost Chord UK meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

Page 21

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

(A company limited by guarantee)

LOST CHORD UK

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2. Accounting policies (continued)

2.2 Going concern

The Trustees have considered the Charity’s ability to continue as a going concern for a period extending to March 2027, being at least twelve months from the expected approval date of the financial statements for the year ended 31 March 2025. The assessment has taken into account the Charity’s financial performance to date, anticipated income, approved budgets, cash flow forecasts, and a range of operational scenarios, including prudent worst-case cash flow forecasts for the period to April 2026 and March 2027 alongside the actions being taken to strengthen long-term sustainability.

The Trustees note that the charity has made material progress during the year in strengthening its underlying financial model. In particular:

The Trustees also note that Choirs That Care is now an established and fully funded programme, with proven delivery in South Yorkshire and a grant funder already engaged to support expansion into West Yorkshire. This programme provides both financial stability and a scalable model aligned with the charity’s mission to support carers and families.

In addition to earned income, the charity has demonstrated the viability and scalability of event-based fundraising. Challenge and endurance fundraising, launched in 2024, exceeded income targets and has been identified as a key growth area. The Trustees plan to expand this activity so that event-based fundraising grows from its current level of approximately 5.9% of income to nearer 20% of total income over the medium term. This income stream is unrestricted, repeatable, and scalable, providing flexibility to support core costs.

The remaining proportion of income is planned to be generated through two strategic project strands, both of which incorporate CEO time alongside delivery by musicians and volunteers. These projects are designed to:

Alongside this, the Trustees have agreed a significant strategic push on appeals and events to increase income and our established legacy and in-memory giving, moving away from reliance on occasional one-off legacies left in Wills, which are inherently more unpredictable and can cause income volatility. The charity will focus on developing regular in-memory fundraising, tribute giving, and online legacy promotion. The Trustees aim for this income stream to grow steadily through 2026, with the ambition that it contributes up to 30% of total income over time as these approaches mature.

Page 22

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2. Accounting policies (continued)

2.2 Going concern (continued)

The Trustees are further encouraged by the charity’s broad funding base growing national profile and are actively engaged in discussions with the library service regarding the development of a potential nationwide programme. While this is at an early stage, it represents a significant opportunity to expand reach and impact using a scalable model consistent with the charity’s values and expertise.

Taking all of the above into account, the Trustees believe that the charity has:

Accordingly, the Trustees are satisfied that it is appropriate to prepare the financial statements on a going concern basis. The Trustees will continue to monitor performance closely and will review forecasts and assumptions regularly to ensure that timely action can be taken if required.

2.3 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.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the charity, can be reliably measured.

Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

2.4 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.

Page 23

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2. Accounting policies (continued)

2.4 Expenditure (continued)

Expenditure on raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Taxation

The company is considered to pass the tests set out in Sch. 6, para. 1 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Pt. 11, Ch. 3 of the Corporation Tax Act 2010 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Computer equipment

33% straight line

2.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Page 24

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

(A company limited by guarantee)

LOST CHORD UK

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2. Accounting policies (continued)

2.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.10 Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the statement of financial activities as a finance cost.

2.11 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.12 Employee benefits and pensions

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recgonised immediately as an expense when the charity is demonstrably committed to terminate the employment of an emplyee or to provide termination benefits.

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

2.13 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 25

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

4. Income from donations and legacies

Donations
Legacies
Grants
Total 2024		 Unrestricted
funds
2025
£
26,343
20,049
1,000
47,392
84,141		 Restricted
funds
2025
£
2,196
-
7,855
10,051
12,370		 Total
funds
2025
£
28,539
20,049
8,855
57,443
96,511		 Total
funds
2024
£
71,618
16,523
8,370
96,511

5. Income from charitable activities

Interactive musical sessions
Total 2024		 Unrestricted
funds
2025
£
43,327
41,580		 Total
funds
2025
£
43,327
41,580		 Total
funds
2024
£
41,580

Page 26

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

6. Investment income

Interest receivable
Total 2024		 Unrestricted
funds
2025
£
3,219
3,615		 Total
funds
2025
£
3,219
3,615		 Total
funds
2024
£
3,615

7. Expenditure on raising funds

Website maintenance and software
Printing
Events costs
Merchandise costs
Online fundraising fees
Total 2024		 Unrestricted
funds
2025
£
9,014
521
3,981
191
661
14,368
20,783		 Total
funds
2025
£
9,014
521
3,981
191
661
14,368
20,783		 Total
funds
2024
£
14,714
1,437
3,270
494
868
20,783

Page 27

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

8. Analysis of expenditure on charitable activities

Summary by fund type

Charitable activities expenditure
Total 2024
Charitable activities expenditure
Total 2024
Analysis of direct costs
Musician fees
Musician travel costs
Other direct costs		 Unrestricted
funds
2025
£
188,079
243,778
Activities
undertaken
directly
2025
£
97,831
168,110		 Restricted
funds
2025
£
4,064
12,370
Support costs
2025
£
94,312
88,038		 Total
2025
£
192,143
256,148
Total
funds
2025
£
192,143
256,148
Total
funds
2025
£
83,914
10,695
3,222
97,831		 Total
2024
£
256,148
Total
funds
2024
£
256,148
Total
funds
2024
£
134,033
19,780
14,297
168,110

Page 28

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Bank fees
Insurance
Office expenses
IT support
Postage, freight & courier
Safeguarding (inc tests and checks)
Staff training
Staff travel & accommodation
Telephone & internet
Working from home allowance
Bad debt write off
Governance costs (note 9)
9.
Governance costs
Accountancy and independent examination
Trustees' meeting costs
Trustees and impact
HR and payroll		 Total
funds
2025
£
80,566
1,690
582
733
2,390
-
-
-
1,016
566
516
500
5,753
94,312
2025
£
3,704
144
1,725
180
5,753		 Total
funds
2024
£
58,293
2,178
1,360
758
2,658
393
126
524
5,679
691
234
929
14,215
88,038
2024
£
4,877
252
1,467
7,619
14,215

Page 29

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

(A company limited by guarantee)

LOST CHORD UK

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

10. Independent examiner's remuneration

2025 2024
£ £
Fees payable to the charity's independent examiner for the independent
examination of the charity's annual accounts 2,805 2,670

11. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes
Work from home allowance		 2025
£
75,954
2,971
1,641
516
81,082		 2024
£
55,412
760
2,121
234
58,527

The average number of persons employed by the charity during the year was as follows:

2025 2024
No. No.
2 2

No employee received remuneration amounting to more than £60,000 in either year.

The gross remuneration of the key management personnel during the year was £80,566 (2024: £58,293). The key management personnel is deemed to be the Chief Executive and the Operations Manager.

12. Pension commitments

Pension costs are accounted for in accordance with FRS102. Pension costs charged in the financial statements are £1,641 (2024: £2,121) representing the contributions payable by the charity during the year ended 31 March 2025. There were contributions totalling £137 (2024: £405) outstanding at the year end.

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits. During the prior year a Trustee, Sally Glennon, received £15,283 for provision of professional musician services. The trustee stepped down in the prior year.

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Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

13. Trustees' remuneration and expenses (continued)

No expenses have been paid in the year to the trustees (2024: £nil). Donations totalling £nil were received from the trustees in the year (2024: £234).

14. Tangible fixed assets

Cost
At 1 April 2024
At 31 March 2025
Depreciation
At 1 April 2024
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024
Debtors
Trade debtors
Other debtors
Prepayments and accrued income		 2025
£
2,795
-
19,376
22,171		 Computer
equipment
£
4,384
4,384
4,384
4,384
-
-
2024
£
12,382
1,365
1,222
14,969

15. Debtors

Page 31

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

16. Creditors: Amounts falling due within one year

Trade creditors
Other creditors
Accruals and deferred income		 2025
£
921
164
3,970
5,055		 2024
£
446
413
6,966
7,825

17. Statement of funds

Statement of funds - current year
Unrestricted funds
General funds
Restricted funds
South Yorkshire Community Foundation
Other restricted funds
Total of funds		 Balance at 1
April 2024
£
226,938
-
-
-
226,938		 Income
£
93,938
3,405
6,646
10,051
103,989		 Expenditure
£
(202,447)
(818)
(3,246)
(4,064)
(206,511)		 Balance at 31
March 2025
£
118,429
2,587
3,400
5,987
124,416

Page 32

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

17. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General funds
Restricted funds
Rotherham MBC
Jewish Music Institute
Other restricted funds
Total of funds		 Balance at
1 April 2023
£
362,163
-
-
-
-
362,163		 Income
£
129,336
4,390
3,000
4,980
12,370
141,706		 Expenditure
£
(264,561)
(4,390)
(3,000)
(4,980)
(12,370)
(276,931)		 Balance at
31 March
2024
£
226,938
-
-
-
-
226,938

South Yorkshire Community Foundation - funding to deliver community singalong sessions at various venues across Rotherham.

Rotherham MBC - funding for unpaid carers support service and Bramley & Ravenfield singalong sessions.

Jewish Music Institute - funds for 8 training sessions with two musicians.

Other restricted funds - other funding received for specific music sessions or for sessions in specific areas.

Page 33

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2

LOST CHORD UK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

18. Analysis of net assets between funds

Analysis of net assets between funds - current year

Current assets
Creditors due within one year
Total		 Unrestricted
funds
2025
£
123,484
(5,055)
118,429		 Restricted
funds
2025
£
5,987
-
5,987		 Total
funds
2025
£
129,471
(5,055)
124,416

Analysis of net assets between funds - prior year

Current assets
Creditors due within one year
Total		 Unrestricted
funds
2024
£
234,763
(7,825)
226,938		 Total
funds
2024
£
234,763
(7,825)
226,938

19. Related party transactions

Other than those disclosed in note 13, no related party transactions have taken place during the year (2024: none).

Page 34

Document ID: b3f97e4faa6e9ce7c3a617c884e699b3d66ed81782d67222028e71daf389fdb2