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2025-07-31-accounts

The Khayaal Theatre Company

Charity No. 1100005

Company No. 03597083

Trustees' Report and Unaudited Accounts

31 July 2025

The Khayaal Theatre Company Contents

Pages
Trustees' Annual Report 2 to 11
Independent Examiner's Report 12
Statement of Financial Activities 13
Summary Income and Expenditure Account 14
Balance Sheet 15
Statement of Cash flows 16
Notes to the Accounts 17 to 23
Detailed Statement of Financial Activities 24 to 25

Page 1

The Khayaal Theatre Company Trustees Annual Report

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 31 July 2025.

REFERENCE AND ADMINISTRATIVE DETAILS

Company No. 03597083

Charity No. 1100005

Registered Office

Flat 2 Primrose Close Luton LU3 1EU

Directors and Trustees

The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year:

A.G. Mian F. Qureshi G. Virani

Company Secretary

L.A. Ali

Accountants

Sabat Accountants Ltd t/a Seymour King Suite G1 Hartsbourne House Delta Gain Watford WD19 5EF

OBJECTIVES AND ACTIVITIES

The objects for which the company is established are to promote, maintain, improve and advance public education particularly through the research, development, production and performance of drama and theatre inspired by and adapted from Muslim literature and the wisdom literature of other faith traditions.

The company’s activities typically include the national touring of on-demand, small scale and high-quality stage performances delivered under its Theatre-without-Walls programme; running drama academies; devising and running theatre-in-education programmes; prospecting for and developing artistic talent; publishing children’s books; training; advocacy and consultancy.

ACHIEVEMENTS AND PERFORMANCE

Theatre-without-Walls Programme

Page 2

The Khayaal Theatre Company Trustees Annual Report

August – December 2024

Inspired by the sustained growth (10%) of our national network of multisector partners over 23-24, we began our year (24-25) responding with enthusiasm to demand for our unique storytelling theatre performances and workshops. Over the Aug-Dec 2024 period, we delivered 6 physical touring events nationally comprising 10 performances and workshops benefitting diverse and intergenerational audiences numbering 1000 people working with 8 mostly new partners (71%) across culture, community and education sectors in 5 local authorities in the South East of England.

Highlights of this period included a joyously received performance of a beautiful, hope-inspiring tale from Yemen on themes of generosity and ecology by Mohammed Sesay at Senate House in London for a duet of host partners, the Young Muslim Writer’s Awards and the Institute of English Studies at the School of Advanced Study (University of London).

"Thank you again for arranging for Mohammed to perform at the Young Muslim Writers Awards (YMWA). We had really great feedback from the audience. It was a pleasure working with him." – Zainab Chohan, YMWA, Nov ‘24

To make way for our former landlords’ sale of our operating premises of 7 years (2017-2024), we had to find and relocate to new premises over the June-September ’24 period resulting in substantial upheaval and disruptions to all of our service lines. Consequently, our Theatre-without-Walls outputs over this period (Aug-Dec ’24) dropped by an average of 72% across key performance indicators (number of events, performance/workshop units and beneficiaries/participants) relative to the previous year (’23-24). However, from the start of ’25 through to the end of our financial year (31 July) we were able to recover and return to levels of operability, reach and delivery that were comparable to or surpassed the same period of the previous year.

January – July 2025

Despite the substantial, deleterious and disproportionate ongoing impacts of the cost-of-living crisis and the Israel-Gaza war on our main core British Muslim audiences resulting in a discernible overall reduction in cultural activity and engagement, we were fortunately able to leverage relationships and partnerships with Muslim communities cultivated and consolidated over decades in order to continue advancing our mission, extending reach and deepening impact. Past experience with similar conditions left us in no doubt that we’d need to pull on all our levers of imagination, ingenuity and nimbleness in order to remain resilient and relevant. Generally British Muslim communities prioritise subsistence at home and humanitarian aid abroad in response to such contexts leaving less resources available for arts and culture.

Over the course of the seven-month period spanning January-July 2025, we delivered 40 touring events nationally comprising 52 performances and workshops benefitting diverse and intergenerational audiences numbering 4000 people working with 30 mostly new partners (new 60% - repeat 40%) across nine sectors (commercial, charity, community, culture, academia, education, faith/interfaith, health and public civic) in 18 local authorities in the East, East Midlands, West Midlands, South East, South West, Scotland and Greater London regions.

Highlights of this period include a summer performance of our popular biopic of Ibn Khaldun (‘ Tea with Tamerlane ’) the legendary historiographer and historian widely considered to be one of the fathers of sociology, demographic and economics at the biannual Muslim Charities Forum’s Convention in London, one of the most influential civic Muslim forums in the UK; sell-out performances of Tales till Ramadan for the third year in The Door Studio at the Birmingham Rep in February; and a trio of successful performances of Sufi Tales at the Sufi Festival at the Tramway in Glasgow in July.

Page 3

The Khayaal Theatre Company Trustees Annual Report

"Folk narratives not only inform, teach, entertain and convey morals, they also mould our understanding of the world, foster identity and reconnect us to our true selves." – J Parker on Tales till Ramadan, Feb 2025

" I attended Tales Till Ramadan on Saturday evening with one of my professors visiting from Türkiye. We both loved how you vitalised the stories, gave them spirit, and shared tales from parts of the world where we had never heard a single story before. We felt especially connected as you opened and closed the event with stories from Mevlana Celaleddin Rumi. The decorations were truly inspiring—each object, light, and costume came together in perfect harmony. Heartfelt congratulations on such a meaningful and excellent production. " – Hamide Elif Uzumcu, Edinburgh University on Tales Till Ramadan, Birmingham Rep, Feb 2025

Other noteworthy partnerships over this period include the delivery of 16 weekly drama drop-in sessions for Muslim mental health service users in partnership with Outside Edge Theatre Company funded by The Baring Foundation at The Brady Arts Centre in Tower Hamlets and the staging of Ramadan Tales for the rating agency Moody’s Muslim network in Canary Wharf that was live streamed to Moody’s offices in New York, Paris, Dubai and Frankfurt.

" Thank you all for coming in and doing the performance we really enjoyed it and had some great feedback. Thank you for staying for the iftar and all your efforts and patients in getting in and out of our building. " – Imran, Moody's, Mar 25

Additional partners over this period in chronological order included Luton Culture, An-Nisa Supplementary School, Brent; Hand on Heart and Beta Charitable Trust, Hillingdon; Coombe Hill Junior School, Kingston-upon-Thames; Salaam Centre, Harrow; Bluecoat Bentick Primary Academy, Nottingham; Society of Friends, Luton Council of Faiths and Grassroots, Luton; Cambridge Muslim Community; Queensbridge Primary School, Hackney; Lantern of Light, Watford; Katherine Warington School, Harpenden; Manor Side and Tudor Primary Schools, Barnet; Wiltshire Ethnic Police Association and Standing Advisory Committee for Religious Education, Luton.

2024-2025 Facts & Figures

Physical Output

Events: 46 ( 23-24: 61 | 22-23: 53 )

Physical Performances & Workshops (units): 62 (23-24: 90 | 22-23: 86)

Multi-Sector Host Partners: 38 ( 23-24: 48 | 22-23: 53 )

Local Authorities Reached: 18 ( 23-24: 25 | 22-23: 25 )

Live Audiences/Beneficiaries: 5,000 ( 23-24: 8,500 ) (25% of potential audience based on logged demand)

NB: Drop in outputs and reach this year resulted from premises relocation disruption and upheaval as well as socio-cultural and economic contraction of our core Muslim community audiences (as explained above).

Average Lead Time (from booking to delivery): 6 weeks

Sectors: Academia, Charity, Community, Culture, Education, Health, Faith/Interfaith, Commercial and Civic/Public (Police)

Requests Logged: 101 ( 23-24: 125 | 22-23: 130 )

New Partners/Requests: 23/77 ( 23-24: 88 | 22-23: 91 )

Page 4

The Khayaal Theatre Company Trustees Annual Report

Repeat Partners/Requests: 15/23

Estimated Potential Physical Audience: 20,000

Artists & Staff (core, freelance and volunteers): 16

Kat Ali, Luqman Ali, Mohammed Ali, Yusef Ali, Thomas Gray, Maria Goldrin, Karima Grillo, Nazar Hadi, Ryad Khodabocus, Saida El-Moujahid, Eleanor Martin, Serena Slack-Robins, Bela Romer, Mohammed Sesay, Abbas Shah, Mariam Zaidi, Zeeniya Ziyard (76% from racialised/minoritised communities / 52% female)

Digital Output

Digital Content Offerings (Films and Audios): 14

Channels/Platforms: Facebook, Instagram, YouTube, Vimeo, Linked-In, Tik-Tok, Bluesky, Soundcloud and Amazon Add-on Channel, Alchemiya

Digital Events:

23rd Dec 2024: Online screening (1hr) of Muslim Nativity for Al-Manaar, London hosted by Kristiane Backer

14 Jan 2025: Online Storytelling Workshop (45min) for Fitrah Homeschooling Collective, Ottawa, Canada Digital Audiences/Beneficiaries: 50K minimum

Project offerings in order of quantity delivered:

Algeria, Saudi Arabia, Iraq, Palestine, China, Pakistan, Iran, India, Tunisia, Bangladesh, Yemen, Mali, Malaysia, Nigeria, Syria, Lebanon, Somalia, Tanzania, Sierra Leone, Turkey, Syria, Uzbekistan, Andalusia, Yemen, Sudan, East Africa, West Africa, Canada etc. 75%

New performances and workshops researched, adapted, produced and presented:

Storytelling Theatre Performances

Total of 58 minutes of new offerings ( 23-24: 105 minutes )

Drama and Storytelling Training Workshops

Page 5

The Khayaal Theatre Company Trustees Annual Report

Total of 80 hours of new offerings ( 23-24: 22hrs 30mins )

Drama Academy Project

Khayaal continued investing ground-breaking conceptual, pedagogical and dramaturgical creativity in laying the foundations for the development of a culturally sensitive and affirmative drama academy curriculum that brings together character virtues, Muslim heritage stories and drama education for especially Muslim children spanning the ages of 3-16 through 2024-25.

We continued delivery of a monthly drama academy for children each comprising 3 sessions for children aged 3-5, 5-7 and 8-14 respectively for The Learning Tree at CQC on Radegund Road, Cambridge for the fourth year. Over this reporting term, we delivered 10 academy days comprising a total of 30 sessions benefitting 35 children and 20 families.

We continued delivery of a fortnightly drama and storytelling academy for mothers and toddlers ages 3-5 at Friends Meeting House, Luton for a third year completing 20 x 80min sessions. We also continued delivery of a monthly drama academy for Luton children ages 6-12 at the Lyons Community Centre. Over the year, our Luton drama academy sessions benefitted a total of 15 mothers, 40 children and 28 families.

We launched a new monthly drama academy in Wimbledon in response to long standing demand for children aged 6-12 at Wimbledon Scouts Hut in January ‘25 and completed 6 sessions over the year benefitting 15 children and 10 families.

Responding to years of sustained demand for a Drama Academy in NW London, we teamed up with Camp ONEder for the second year to deliver a successful 1-week (04-08 Aug ‘25) summer drama camp in Harrow exploring Muslim heritage tales on the theme of generosity for 12 children ages 7-11. The immersive and intensive week culminated in a showcase performance for participating families and the local community. Participating children not only created their own adaptation of a heritage tale with our supervision and dramaturgical support but also designed and made or curated their own props, costumes, flyers and tickets and programmes. Feedback from both children and parents was superlative and gratifying. Some parents reported that this was the first time that their child(ren) really connected with other children or that this was the first time that they demonstrated sustained enthusiasm for a shared creative process.

Drama Academies

2024-2025 Facts & Figures

4 Locations ( 23-24: 3 )

51 Session Days ( 23-24: 38 )

60 Workshops Developed and Delivered ( 23-24: 54 )

102 Participant Children ( 23-24: 71 )

60 Beneficiary Families ( 23-24: 46 )

Page 6

The Khayaal Theatre Company Trustees Annual Report

“ My son has greatly enjoyed your drama sessions and is improving in confidence and communication at the Learning Tree in Cambridge, and we would love for the children to experience something similar on this special occasion. ” – Eymen Kaya, Sep 24

Developments in the Wider Work of Khayaal 2024-2025

• In recognition of his long, successful and ground breaking track record as Khayaal’s chief conceptualist and Artistic Director and Khayaal’s extensive and inclusive contributions to the cultural life of Britain, Luqman Ali was recruited to the board of Equi in October, the UK’s first Muslim founded and led think tank dedicated to working for a more just and equitable society.

• Luqman Ali served as judge of the Young Muslim Writers Awards 2024 playscript category through November for the third time over the past decade.

• Luqman Ali advanced Khayaal’s socio-cultural advocacy by serving as a Spotlight Speaker for Windsor Leadership Emerging Strategic Leaders Programme at St. George’s House, Windsor Castle on 19th Nov ‘24. Shortly thereafter on 4th December, he also accepted an invite to speak at Windsor Leadership’s ‘In Conversation with …’ Webinar.

“ I was very moved by Luqman and some of his insights have really changed my approach and helped my evaluate my own responses to those who are on a different page to me. ” – Emerging Leader, Nov 24

• Luqman Ali advanced Khayaal’s cultural and artistic advocacy by accepting an invitation to contribute to a panel conversation titled ‘Breaking the Singing Barrier: Cultural Barriers to Singing’ at the Music & Drama Education Expo held at The Business Design Centre, London. Hosted by the Voices Foundation and the ISM Trust, the event focused on cultural barriers to singing in schools, covering religion, family attitudes, cultural legacy of singing and panellists’ own experience of music education.

• PhD student Serena Slack-Robins advanced Khayaal’s cultural and artistic research and advocacy by attending the launch of ‘The Menagerie Project’ hosted by Royal Historic Palaces at The Tower of London on 13th May. Shortly thereafter, she represented Khayaal at ‘The Muslim Embassy Retrospect’ a landmark event hosted by the Royal Central School of Speech and Drama, University of London. The event showcased the rich and dynamic contributions of Muslim artists, performers, writers and creators in theatre, television and film, while critically reflecting on the evolving representation of Muslim identities on stage and screen.

• Luqman Ali advanced Khayaal’s cultural and artistic advocacy by contributing to a Sing Up Podcast alongside music psychologist Natasha Hendry on 16th June exploring how inclusive music education arenas are for children and young people from minoritised communities.

• Luqman Ali advanced the mission of Khayaal by accepting an invitation to the Muslim News Awards ceremony in London on 14th July.

• PhD student Serena Slack-Robins continued to work on our PhD project on British Muslim Engagement with Theatre in partnership with Manchester Metropolitan University, the Arts and Humanities Research Council and North West Consortium Doctoral Training Partnership. Due to multiple impacts of the pandemic and the cost-of-living crisis, the term of the project has had to be extended to late 2026.

Page 7

The Khayaal Theatre Company Trustees Annual Report

• We continued to support students and academics in undergraduate and postgraduate education at academic institutions with their research on Islam and Muslim-related theatre, drama, literature, art and culture including students and faculty at BRIT School, Croydon, UK; University of Edinburgh; University of Warwick; Masaryk University, Brno, Czechia; Arts University, Bournemouth, UK;

• We continued to prospect for and contribute to the development and platforming of emerging and established Muslim performing artists. Over this period, this included Junayd of Islam, Salmaan Shah, Abdul Qualam Aziz, Mariam Yaya and Maryam Sinclair as well as a dozen others through our work on the further development of the Muslim Artists Academy in partnership with Alchemy Arts, Manchester.

• We continued to advocate for justice and equity in the UK cultural sector for minoritized and racialised audiences, artists, cultural practitioners and cultural producers in relation to socio-cultural opportunities, recognition, access to public space, funding and representation. Despite public acknowledgements of structural injustice and inequity in the sector and the formulation of new funding policies to address these issues on the part of funders and development agencies in the wake of George Floyd, Windrush and the disproportionate impact of Covid on minority communities, we continued to experience exclusion and a lack of understanding of the society-wide inequalities and disparities that stifle the aspirations of minority cultural actors. These include but are not limited to unjustifiably high thresholds and inflated expectations on the part of funders when it comes to scale of operation, impact and turnover that can only be based on the erroneous assumption that minority cultural producers benefit from equal access to resources and opportunities and a level playing field. By evidencing the wide socio-economic and socio-cultural disparities that disadvantage BAME communities when it comes to average household wealth, employment prospects, physical and mental health outcomes, acceptance and belonging and multiple deprivation, we endeavoured to convince our interlocutors that real equity means calibrating threshold and expectation criteria for support to the realities of the lived experience of minorities in the round. For example, when the average household wealth of a white British family (£314K) is ninefold that of a black African family (£34K), it is manifestly clear that the socio-economic barriers to socio-cultural inclusion and stake-holding where the arts are concerned are in no way comparable.

“ For every £1 of White British wealth, Indian households have 90-95p, Pakistani households 50p, Black Caribbean 20p, and Black African and Bangladeshi households have 10p. ” – Runnymede Trust 2024

“ Muslim households have a greater chance of being in poverty than those of any other religious group in the country. Having taken all possible causal factors into account, the team concluded that discrimination and prejudice “are having real and measurable consequences for Muslim groups in British society ”. – The Centre for Social Investigation at the University of Oxford’s Nuffield College 2021

“ In Britain, evidence suggests that Muslims experience the greatest faith penalty relative to any other religious group even after adjusting for the aforementioned factors (Khattab 2009; Berthoud and Blekesaune 2007; Khattab and Modood 2015). This phenomenon is known as the “Muslim Penalty” (Connor and Koenig 2015, 198). – Samir Swelda-Metwally, 12 July 2022

Training and Continuous Professional Development

Page 8

The Khayaal Theatre Company Trustees Annual Report

5 Nov 24: Luqman Ali participated Charity Digital’s AI Training Webinar led by James Shamsi.

08 Jan 25: Luqman Ali and Eleanor Martin participated in Outside Edge Theatre Company’s Safeguarding Training Workshop with a focus on working with adult mental health service users.

26 Feb 25: Eleanor Martin upskilled in a puppetry workshop by Little Angel Theatre.

09 July 25: Luqman Ali and Eleanor Martin participated in a workshop on Religious Education hosted by SACRE Luton facilitated by Dr Richard Keuh, RE Lead OFSTED.

Monitoring & Evaluation

Company

Overall evaluation and risk analysis of the company’s activities over the year using internal measurements and indicators and assessment of the satisfaction of staff, volunteers, partners and beneficiaries resulted in the following key findings:

Performances & Workshops

Our ongoing evaluation of audiences’ and partners’ responses to our original adaptations of humanitarian values tales and stories from Muslim and multifaith literature led to the following key findings:

• Muslim audiences respond to our work with an increase feeling of belonging, pride and heightened aspiration, all of which contribute to greater awareness of and confidence in the inclusive resources within their cultural traditions that encourage integration and foster contributory citizenship within wider society.

• Audiences from other traditions, both faith and secular, respond to our work with high levels of appreciation and gratitude for the opportunity to experience the aesthetics, wisdom, humour and humanity of Muslim cultures in performance made accessible by our work.

• Both audiences express high levels of commendation and appreciation for the opportunity for intercultural dialogue, engagement and understanding within one of Britain’s most important socio-cultural institutions and art forms.

Page 9

The Khayaal Theatre Company Trustees Annual Report

• Over the past year 81% of those polled as part of our evaluation exercises rated their experience of our work as excellent or good. When asked to what extent they believe our work contributes to greater valuation and appreciation of literature, drama, storytelling and culture within Muslim communities 75% said either exceedingly or tremendously. When asked to what extent they believe our work contributes to greater interfaith and intercultural dialogue, engagement and understanding between communities based on this experience 73% said either exceedingly or tremendously.

FINANCIAL REVIEW

During the year under review the charity received unrestricted income of £173,818 (2024: £133,049) and restricted income of £Nil (2024: £Nil) and had an expenditure of £124,035 (2024: £110,143) and £45 (2024: £49) for unrestricted and restricted respectively. At the Balance Sheet date the charity held unrestricted funds of £131,849 (2024: £82,066) and restricted funds of £6,783 (2024: £6,828) .

Reserves policy

The purpose of this policy is to ensure that Khayaal TC is able to act in the interests of its charitable purposes and its beneficiaries, as well as protecting and safeguarding its assets and ensuring that due diligence is taken in complying with current legislation and good practice guidance.

The Trustee Directors have established a reserves policy that holds that unrestricted funds equivalent to a minimum of 20 weeks of the last complete financial year’s turnover be held by the theatre company to cover current liabilities, commitments and activities/operations for four calendar months.

The trustees have given due consideration to the ability of the Charity to continue as a going concern. Due to the continued support the charity receives from its donors and the public, the trustees are satisfied that the going concern basis remains appropriate in preparing these financial statements. Furthermore, the charity believes that the level of unrestricted funds held remains sufficient to support the activities of the charity in the foreseeable future.

Financial and risk management objectives and policies

Risk mitigation has been central to the organisational management processes that have ensured that we have alternately survived and flourished for fast closing on three decades. We manage and mitigate risk by maintaining a high level of industry awareness and forecasting. This is achieved by monitoring developments in our sector and related sectors in the media and public forums. We also review our organisational SWOT analysis on a regular basis taking into consideration market trends here and abroad affording us continuous tracking across analysis factors. Where financial risk is concerned, we have primarily employed the combined strengths of scalability, commitment, ingenuity and passion in order to adapt to changing circumstances and transform challenges into opportunities. Our core staff and board of directors share responsibility for risk mitigation.

Principal funding source

Over the year 2024-25, our funding came from a mix of sources as follows:

• In-kind support and resources in terms of underpaid core staff time relative to multidisciplinary expertise and experience; volunteer time; host partners’ contributions of performance spaces, digital channels, staff time, publicity, administration; etc. have been quantified and valued monetarily as equivalent to at least 42% of cash turnover at £74K.

Page 10

The Khayaal Theatre Company Trustees Annual Report

PLANS FOR FUTURE PERIODS

Future plans for 2025-26

• Embarking on a marketing campaign to promote our Drama Academies in Luton, Cambridge and Wimbledon and launching a drama academy in NW London (Brent/Barnet/Harrow). Expanding our Luton drama academy to benefit girls ages 11-16.

• Leveraging our accrued cultural capital and longstanding, privileged partnerships with BAME/Muslim communities in order to increase our grant funding from public and private funders including trusts/foundations.

• We will continue our work with Birmingham Repertory Theatre to develop a long-term working relationship in order to serve the socio-cultural and arts education needs of the largest Muslim community in the UK including working toward a return to The Rep with a new and larger scale production of Tales till Ramadan in Jan-Feb 2027.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The charity is controlled by its governing document, a deed of trust and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).

Signed on behalf of the board

F. Qureshi

Trustee

17 April 2026

Page 11

The Khayaal Theatre Company Independent Examiners Report

Independent Examiner's Report to the trustees of The Khayaal Theatre Company

I report to the charity trustees on my examination of the financial statements of The Khayaal Theatre Company for the year ended 31 July 2025.

Responsibilities and basis of report

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

Having satisfied myself that the financial statements 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 your charity's financial statements as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

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

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

Sajjad Tejani FCCA Sabat Accountants Ltd t/a Seymour King Suite G1

Hartsbourne House Delta Gain Watford WD19 5EF 17 April 2026

Page 12

The Khayaal Theatre Company Statement of Financial Activities

for the year ended 31 July 2025

Notes
Income and endowments
from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Other
7
Total
Expenditure on:
Other
8
Total
Net gains on investments
Net income
9
Transfers between funds
Net income before other
gains/(losses)
Other gains and losses
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
2025
£
47,304
85,122
30,858
10,534		 Restricted
funds
2025
£
-
-
-
-		 Total funds
2025
£
47,304
85,122
30,858
10,534		 Total funds
2024
£
22,412
68,750
37,590
4,297
173,818
124,035		 -
45		 173,818
124,080		 133,049
110,192
124,035
-		 45
-		 124,080
-		 110,192
-
49,783
-		 (45)
-		 49,738
-		 22,857
-
49,783 (45) 49,738 22,857
49,783
82,066		 (45)
6,828		 49,738
88,894		 22,857
66,037
131,849 6,783 138,632 88,894

Page 13

The Khayaal Theatre Company Summary Income and Expenditure Account

for the year ended 31 July 2025

Income
Gross income for the year
Expenditure
Depreciation and charges for impairment of fixed assets
Total expenditure for the year
Net income before tax for the year
Net income for the year		 2025
£
173,818
173,818
122,112
1,968
124,080
49,738
49,738		 2024
£
133,049
133,049
108,107
2,085
110,192
22,857
22,857

Page 14

The Khayaal Theatre Company Balance Sheet

at 31 July 2025

Company No.
03597083
Notes
2025
£
Fixed assets
Tangible assets
11
6,043
6,043
Current assets
Cash at bank and in hand
134,512
134,512
Creditors:Amount falling due within one year
12
(1,923)
Net current assets
132,589
Total assets less current liabilities
138,632
Net assets excluding pension asset or liability
138,632
Total net assets
138,632
The funds of the charity
Restricted funds
13
Restricted income funds
6,783
6,783
Unrestricted funds
13
General funds
131,849
131,849
Reserves
13
Total funds
138,632		 2024
£
7,774
7,774
85,085
85,085
(3,965)
81,120
88,894
88,894
88,894
6,828
6,828
82,066
82,066
88,894

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

For the year ended 31 July 2025 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

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

Approved by the board on 17 April 2026

And signed on its behalf by:

F. Qureshi Trustee 17 April 2026

Page 15

The Khayaal Theatre Company Statement of Cash flows for the year ended 31 July 2025

Cash flows from operating activities
Net income per Statement of Financial Activities
Adjustments for:
Depreciation of property, plant and equipment
Dividends, interest and rents from investments
Other gains/losses
(Decrease)/Increase in trade and other payables
Net cash provided by operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Dividends, interest and rents from investments
Net cash from investing activities
Net cash from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Components of cash and cash equivalents
Cash and bank balances
Bank overdrafts		 2025
£
49,738
1,968
(10,534)
-
(2,923)
38,249
(237)
10,534
10,297
-
48,546
84,405
132,951
134,512
(1,561)
132,951		 2024
£
22,857
2,085
(4,297)
-
3,285
23,930
(1,769)
4,297
2,528
-
26,458
57,947
84,405
85,085
(680)
84,405

Page 16

The Khayaal Theatre Company Notes to the Accounts

for the year ended 31 July 2025

Basis of preparation

The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

Income

Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets

Page 17

The Khayaal Theatre Company Notes to the Accounts

Expenditure

Taxation

The charity is exempt from corporation tax on its charitable activities.

Tangible fixed assets and depreciation

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Plant & Machiney 25% Reducing balance Motor Vehicle 25% Reducing balance

Trade and other debtors

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

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Trade and other creditors

Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Page 18

The Khayaal Theatre Company Notes to the Accounts

Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Receipt of donated goods, facilities and services

All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.

2 Company status

The company is a private company limited by guarantee and consequently does not have share capital.

3 Statement of Financial Activities - prior year

Income and endowments from:
Donations and legacies
Charitable activities
Gift Aid
Total
Expenditure on:
Other
Total
Net income
Net income before other
gains/(losses)
Other gains and losses:
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
2024
£
60,002
68,750
4,297
133,049
110,143
110,143
22,906
22,906
22,906
59,160
82,066		 Restricted
funds
2024
£
-
-
-
-
49
49
(49)
(49)
(49)
6,877
6,828		 Total funds
2024
£
60,002
68,750
4,297
133,049
110,192
110,192
22,857
22,857
22,857
66,037
88,894

Page 19

The Khayaal Theatre Company Notes to the Accounts

4 Income from donations and legacies

Donations
Friends' subscriptions
5
Income from charitable activities
Grants
6
Income from other trading activities
Sale of services
7
Other income
Gift Aid
8
Other expenditure
Employee costs
Motor and travel costs
Amortisation, depreciation,
impairment, profit/loss on
disposal of fixed assets
General administrative costs
Legal and professional costs		 Unrestricted
£
51,926
20,448
1,923
45,683
4,055
124,035		 Unrestricted
£
45,264
2,040
47,304
Unrestricted
£
85,122
85,122
Unrestricted
£
30,858
30,858
Unrestricted
£
10,534
10,534		 Total
2025
£
45,264
2,040
47,304
Total
2025
£
85,122
85,122
Total
2025
£
30,858
30,858
Total
2025
£
10,534
10,534		 Total
2024
£
20,248
2,164
22,412
Total
2024
£
68,750
68,750
Total
2024
£
37,590
37,590
Total
2024
£
4,297
4,297
Restricted
£
-
-
45
-
-
45		 Total
2025
£
51,926
20,448
1,968
45,683
4,055
124,080		 Total
2024
£
51,927
12,048
2,085
40,630
3,502
110,192

Page 20

The Khayaal Theatre Company Notes to the Accounts

9 Net income before transfers

9 Net income before transfers
2025 2024
This is stated after charging: £ £
Depreciation of owned fixed assets 1,968 2,085
Independent Examiner's fee 600 600
10 Staff costs
2025 2024
Salaries and wages 51,926 51,927
51,926 51,927
No employee received emoluments in excess of £60,000.
The average monthly number of full time equivalent employees during the year was as follows:
Administration and
production
11 Tangible fixed assets
Cost or revaluation
At 1 August 2024
Additions
At 31 July 2025
Depreciation and
impairment
At 1 August 2024
Depreciation charge for the
year
At 31 July 2025
Net book values
At 31 July 2025
At 31 July 2024
12 Creditors:
amounts falling due within one year
Bank loans and overdrafts
Other creditors		 2025
Number
2
2
Plant &
Machiney
£
19,194
237
19,431
11,573
1,930
13,503
5,928
7,621
2025
£
1,561
362
1,923		 Motor
Vehicle
£
18,716
-
18,716
18,563
38
18,601
115
153		 2024
Number
2
2
Total
£
37,910
237
38,147
30,136
1,968
32,104
6,043
7,774
2024
£
680
3,285
3,965

Page 21

The Khayaal Theatre Company Notes to the Accounts

13 Movement in funds

Restricted funds:
Restricted income funds:
Bedfordshire and Luton
Community Foundation
(BLCF) - Community Recovery
Fund Grant
Total
Unrestricted funds:
General funds
Total funds		 At 1 August
2024
6,828
6,828
82,066
88,894		 Incoming
resources
(including
other
gains/losses)
£
-
-
173,818
173,818		 Resources
expended
£
(45)
(45)
(124,035)
(124,080)		 At 31 July
2025
£
6,783
6,783
131,849
138,632

Purposes and restrictions in relation to the funds:

Restricted funds: Bedfordshire and Luton BLCF Community Recovery Fund 2022-24 supports Khayaal 25 Luton Community Foundation (Drama Academy, Theatre without Walls and Multifaith Stories projects in (BLCF) - Community Recovery Luton). Fund Grant

14 Analysis of net assets between funds

Fixed assets
Net current assets
Reconciliation of net debt
Cash and cash equivalents
Net debt		 Unrestricted
funds
£
5,922
132,589
138,511
At 1 August
2024
£		 Restricted
funds
£
121
-
121
Cash flows
£		 Total
£
6,043
132,589
138,632
At 31 July
2025
£
85,085 49,427 134,512
85,085
85,085		 49,427
49,427		 134,512
134,512

15 Reconciliation of net debt

Page 22

The Khayaal Theatre Company Notes to the Accounts

16 Related party disclosures

Controlling party

The company is limited by guarantee and has no share capital; thus no single party controls the company.

Page 23

The Khayaal Theatre Company Detailed Statement of Financial Activities

for the year ended 31 July 2025

Income and endowments from:
Donations and legacies
Donations
Friends' subscriptions
Charitable activities
Grants
Other trading activities
Sale of services
Other
Gift Aid
Total income and endowments
Expenditure on:
Employee costs
Salaries/wages
Motor and travel costs
Travel and subsistence
General administrative costs,
including depreciation and
amortisation
Depreciation of Plant & Machiney
Depreciation of Motor Vehicle
Advertisement
Equipment leasing and hire
charges
General insurances
Refreshments
Stationery and printing
Subscriptions
Sundry expenses
Telephone, fax and broadband
Venue hire		 Unrestricted
funds
2025
£
45,264
2,040
47,304
85,122
85,122
30,858
30,858
10,534
10,534
173,818
51,926
51,926
20,448
20,448
1,885
38
405
600
1,449
2,136
5,252
465
2,796
1,269
31,311
47,606		 2025
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45
-
-
-
-
-
-
-
-
-
-
45		 Total funds
2025
£
45,264
2,040
47,304
85,122
85,122
30,858
30,858
10,534
10,534
173,818
51,926
51,926
20,448
20,448
1,930
38
405
600
1,449
2,136
5,252
465
2,796
1,269
31,311
47,651		 Total funds
2024
£
20,248
2,164
22,412
68,750
68,750
37,590
37,590
4,297
4,297
133,049
51,927
51,927
12,048
12,048
2,034
51
702
1,317
1,164
1,363
3,805
265
1,864
1,259
28,891
42,715

Legal and professional costs

Page 24

The Khayaal Theatre Company Detailed Statement of Financial Activities

The Khayaal Theatre Company
Detailed Statement of Financial Activities
Audit/Independent examination
fees
Sub-contractors
Other legal and professional
costs
Total of expenditure of other costs
Total expenditure
Net gains on investments
Net income
Net income before other
gains/(losses)
Other Gains
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 600
3,213
242
4,055
124,035
124,035
-
49,783
49,783
-
49,783
82,066
131,849		 -
-
-
-
45
45
-
(45)
(45)
-
(45)
6,828
6,783		 600
3,213
242
4,055
124,080
124,080
-
49,738
49,738
-
49,738
88,894
138,632		 600
2,496
406
3,502
110,192
110,192
-
22,857
22,857
-
22,857
66,037
88,894

Page 25