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← Midlands Academy Of Dance And Drama Limited

2024-07-31-accounts

Company registration number: 03830525 Charity registration number: 1118761

Midlands Academy of Dance & Drama Limited

(A company limited by guarantee)

Annual Report and Financial Statements for the Year Ended 31 July 2024

Community Accounting Plus Units 1 & 2 North West 41 Talbot Street Nottingham NG1 5GL

Midlands Academy of Dance & Drama Limited

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 to 16

Midlands Academy of Dance & Drama Limited

Reference and Administrative Details

Trustees Harpreet Dhillon Adrian Keane Gregory Apostolidis Secretary Harpreet Dhillon Senior Management Team Edward Nudd, Principal Charity Registration Number 1118761 Company Registration Number 03830525 Registered Office 428b Carlton Hill Nottingham Nottinghamshire NG4 1QA Independent Examiner John O'Brien, employee of Community Accounting Plus Units 1 & 2 North West 41 Talbot Street Nottingham NG1 5GL

Page 1

Midlands Academy of Dance & Drama Limited

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 July 2024.

Trustees and officers

The trustees and officers serving during the year and since the year end were as follows:

Trustees: Harpreet Dhillon Adrian Keane Gregory Apostolidis Secretary: Harpreet Dhillon

Structure, governance and management

Nature of governing document

The charity is a company limited by guarantee and registered charity. It is operated under the rules of its memorandum and articles of association dated 24 August 1999 and most recently amended 11 January 2007. It has no share capital and the liability of each member in the event of winding-up is limited to £10.

Recruitment and appointment of trustees

All Trustees share responsibility for the decisions and actions of the Board and the company. The Board is a collective body and its members are legally obliged to act in the best interests of Midlands Academy of Dance and Drama (MADD), registered Charity no. 1118761.

Additionally, as part of the Board, individual Trustees have the following duties and responsibilities:

· To ensure that MADD complies with the Memorandum and Articles and legislative and regulatory requirements.

· To ensure that MADD pursues its objects and that it applies its resources, and exercises its powers, exclusively in pursuit of those objects.

· To actively contribute to the work of the Board and to ensure that an effective contribution is made at Board Meetings. For this reason, Board Directors are expected to prepare for the quarterly Board Meetings (e.g. by reading papers) and to endeavour to attend all Board Meetings.

· To exercise a high standard of skill and care, having regard to any specific knowledge and expertise, in managing the affairs of the company.

· To focus on the strategic role of the Board and help ensure that the Board fulfils its role of determining the strategic direction and development of MADD through good governance and strategic planning.

· To act as an ambassador for MADD and safeguard its good name and interests.

· To contribute to the process of the appointment of the Principal and Managerial staff.

· To bring personal capabilities, expertise and time to help take forward the operation and development of MADD’s activities.

· To act in the best interests of MADD at all times and not on behalf of any funding body, constituency or interest group, or for personal interest, and to declare any potential conflicts of interest and take appropriate action.

· To undertake any tasks specifically delegated by the Board and to report back to the Board on any such action taken on its behalf.

· To be further involved in the governance of MADD by participating in Board working parties as appropriate.

Page 2

Midlands Academy of Dance & Drama Limited

Trustees' Report

Objectives and activities

Objects and aims

To advance education and instruction in dance, singing, drama and contextual studies and all other subjects whatsoever that may be included in a commercial, technical, scientific, classical, or academic educational or are conductive to knowledge of or skill in the performing arts, in particular but not exclusively by establishing or helping to establish a school or schools, lecture classes, examination rooms and such other academic facilities and by providing or assisting in the provision of items, facilities and funding to help run such establishments and to support teachers and students in Great Britain and other countries. To advance education by funding scholarship and exhibitions and to give prizes, certificates and diplomas to persons who are or have been students or examined by or by the direction of the company.

Public benefit

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Achievements and performance

The Charity achieved its purpose with 61 students across all courses enrolled for the academic year 2023/2024, which was a decrease from the previous year of 64 students, the main reason for this was the ongoing financial crisis and the 'cost of living'. This was the first year of delivery of the Higher National Certificate (HNC). Recruitment for this had been slow due to it being a new course and getting brand awareness out in to the public domain. Combine this with the uncertainty of employment for families, and national inflation, self-funding has once again been a big barrier and impacted numbers and thus has reduced applications for the CDMT course which is privately funded only.

2023/24 has seen our first HNC (Higher National Certificate) learners complete their learning (1yr) on the HNC course with 100% success rate. 4 out of the 10 have gone on to study the Higher National Diploma (HND) with MADD College.

The Management and Trustees continue to adjust and review on a frequent and regular basis the fees matrix and the overall procedures and policies in place, including financial, HR, operational, safeguarding and health and safety. Cost cutting continues to have a significant impact on the charity going forward into 2023/2024 based on student cohort figures enabling the charity to offer more scholarships and cement its future in the industry as many other colleges close their doors due to financial difficulties, the management team, along with the trustees and dedicated teaching staff have adapted and evolved to meet the requirements of students both already enrolled and those hoping to secure a place with us.

The Year ended with 100% of the 2024 graduating cohort successfully completing their studies and gaining their desired qualification and going on to work successfully & professionally within their chosen industry (Dance and/or Musical Theatre), having had secured agents either prior to their graduation or after it. All achieved either the CDMT (Council for Dance & Musical Theatre) accredited 3 yr professional musical theatre course and/or their level 6 musical theatre diplomas validated by Trinity College London.

Page 3

Midlands Academy of Dance & Drama Limited

Trustees' Report

Financial review

Activities during the year resulted in a deficit of £38,084 (2023: surplus of £33,200).

Teaching costs £134,889 were significantly lower than the previous year £186,054 which was in line with forecasting, other costs are starting to show reductions due to the stringent cost cutting strategy and attributed to renegotiating with suppliers, better sourcing by the management team and tighter financial controls.

Salaries, NI and pension showed an increase between the 3 staff members with the increase in the NLW and NMW and a review of remuneration.

Rent shows a significant decrease of £13K on the previous year as rent payments were re-negotiated with the landlord.

Accountancy fees have also decreased in line with forecast.

Policy on reserves

Reserves are required to mitigate the risk of students defaulting on fees so the charity can meet all of its financial obligations. We plan on maintaining our reserves despite increases in utility costs and increase the number of students completing HNC's and BTEC's. Our reserve policy is continually reviewed as projected income and costs are reviewed on a weekly basis by our Management Accountant.

Principal risks and uncertainties

Cost of living

With the increased cost of living crisis, students are finding it increasingly hard to afford the courses we offer, to counteract this we have sucessfully increased our provision of courses with the addition of HNC's in 2023/2024 which are fully government funded and we plan on increasing these numbers further, in turn that will allow the charity to offer a greater amount of burseries to talented students who wish to undertake the CDMT course which receives no funding.

Page 4

Midlands Academy of Dance & Drama Limited

Trustees' Report

Statement of Responsibilities

The trustees (who are also the directors of Midlands Academy of Dance & Drama Limited for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". The report and accounts have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

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

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Small companies provision statement

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

The annual report was approved by the trustees of the charity on 12 February 2025 and signed on its behalf by:

......................................... tstallow Harpreet Dhillon Company secretary and trustee

Page 5

Midlands Academy of Dance & Drama Limited

Independent Examiner's Report to the trustees of Midlands Academy of Dance & Drama Limited ('the Company')

Independent examiner’s report to the trustees of Midlands Academy of Dance & Drama Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 July 2024.

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 accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company 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 accounts 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

Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member and Fellow of the Association of Charity Independent Examiners, which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; 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)].

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.

......................................

John O'Brien MSc, FAIA, FCIE, employee of Community Accounting Plus Fellow of the Association of Charity Independent Examiners

Units 1 & 2 North West 41 Talbot Street Nottingham NG1 5GL

Date:............................. 18/02/25

Page 6

Midlands Academy of Dance & Drama Limited

Statement of Financial Activities for the Year Ended 31 July 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
2
Charitable activities
3
Other income
4
Total income
Expenditure on:
Charitable activities
5
Total expenditure
Net (expenditure)/income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
500
274,679
-
275,179
(313,263)
(313,263)
(38,084)
(38,084)
51,273
13,189		 Total
2024
£
500
274,679
-
275,179
(313,263)
(313,263)
(38,084)
(38,084)
51,273
13,189		 Total
2023
£
1,060
382,586
2,834
386,480
(353,280)
(353,280)
33,200
33,200
18,073
51,273

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for the period is shown in note .

The notes on pages 9 to 16 form an integral part of these financial statements. Page 7

Midlands Academy of Dance & Drama Limited

(Registration number: 03830525) Balance Sheet as at 31 July 2024

2024 2023
Note £ £
Fixed assets
Tangible assets 8 7,058 7,725
Current assets
Debtors 9 46,266 49,464
Cash at bank and in hand 10 10,572 16,713
56,838 66,177
Creditors: Amounts falling due within one year 11 (50,707) (22,629)
Net current assets 6,131 43,548
Net assets 13,189 51,273
Funds of the charity:
Unrestricted income funds
Unrestricted funds 13,189 51,273
Total funds 13,189 51,273

For the financial year ending 31 July 2024 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

The financial statements on pages 7 to 16 were approved by the trustees, and authorised for issue on 12 February 2025 and signed on their behalf by:

......................................... 1Pxollen Harpreet Dhillon Company secretary and trustee

The notes on pages 9 to 16 form an integral part of these financial statements. Page 8

Midlands Academy of Dance & Drama Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

1 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Midlands Academy of Dance & Drama Limited 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 notes.

Going concern

The financial statements have been prepared on a going concern basis.

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

Exemption from preparing a cash flow statement

Under the exemption available to smaller charities the Board of Trustees has chosen not to include a Statement of Cash Flows within the financial statements.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Deferred income

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:

Page 9

Midlands Academy of Dance & Drama Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Taxation

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

Tangible fixed assets

Individual fixed assets costing £100.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate
Land & buildings 20% straight line
Fixtures & fittings 10% reducing balance
Office & IT equipment 50% straight line

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Page 10

Midlands Academy of Dance & Drama Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

2 Income from donations and legacies

Grants, including capital grants;
Government grants
3
Income from charitable activities
Sale of services
Other income		 Unrestricted
funds
General
£
500
500
Unrestricted
funds
General
£
267,843
6,836
274,679		 Total
2024
£
500
500
Total
2024
£
267,843
6,836
274,679		 Total
2023
£
1,060
1,060
Total
2023
£
382,586
-
382,586

Page 11

Midlands Academy of Dance & Drama Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

4
Other income
Rental income
5
Expenditure on charitable activities
Coaching fees & show costs
Salaries, NI & pension
Advertising
Registration fees
Rent & rates
Utilities
Repairs & maintenance
Insurance
Travel & subsistence
Telephone
Other office costs
Accountancy fees
Legal & professional
Bank charges
Depreciation
Bad debts
General expenses
Equipment hire		 Unrestricted
funds
General
£
134,889
83,142
12,745
7,035
16,250
22,824
6,138
6,437
741
1,809
2,599
4,429
934
882
1,072
7,018
337
3,982
313,263		 Total
2024
£
-
Total
2024
£
134,889
83,142
12,745
7,035
16,250
22,824
6,138
6,437
741
1,809
2,599
4,429
934
882
1,072
7,018
337
3,982
313,263		 Total
2023
£
2,834
Total
2023
£
186,054
75,032
-
7,241
29,430
10,353
8,004
6,237
1,385
1,463
11,455
9,612
2,398
1,395
1,258
1,963
-
-
353,280

6 Net incoming/outgoing resources

Net (outgoing)/incoming resources for the year include:

Depreciation of fixed assets 2024
£
1,072		 2023
£
1,258

Page 12

Midlands Academy of Dance & Drama Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

7 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2024
£
79,548
1,804
1,790
83,142		 2023
£
68,293
5,348
1,391
75,032

The monthly average number of persons (including senior management team) employed by the charity during the year was as follows:

Average number of employees

2024 2023
No No
3 4

3 (2023 - 3) of the above employees participated in the Defined Contribution Pension Schemes.

Contributions to the employee pension schemes for the year totalled £1,790 (2023 - £1,391).

No employee received emoluments of more than £60,000 during the year.

The total employee benefits of the key management personnel of the charity were £51,866 (2023 - £35,004).

8 Tangible fixed assets

Cost
At 1 August 2023
Additions
At 31 July 2024
Depreciation
At 1 August 2023
Charge for the year
At 31 July 2024
Net book value
At 31 July 2024
At 31 July 2023		 Land &
buildings
£
53,151
-
53,151
53,151
-
53,151
-
-
Page 13		 Fixtures &
fittings
£
18,581
-
18,581
11,110
747
11,857
6,724
7,471		 Office & IT
equipment
£
733
405
1,138
479
325
804
334
254		 Total
£
72,465
405
72,870
64,740
1,072
65,812
7,058
7,725

Midlands Academy of Dance & Drama Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

9 Debtors

Trade debtors
Prepayments
10 Cash and cash equivalents
Cash on hand
Cash at bank
11 Creditors: amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals
Deferred income		 2024
£
42,495
3,771
46,266
2024
£
93
10,479
10,572
2024
£
17,459
26,323
1,974
4,951
-
50,707		 2023
£
41,683
7,781
49,464
2023
£
-
16,713
16,713
2023
£
-
12,029
898
3,184
6,518
22,629

Page 14

Midlands Academy of Dance & Drama Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

12 Charity status

The charity is a company limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

13 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets		 Unrestricted
General
£
7,058
56,838
(50,707)
13,189
Unrestricted
General
£
7,725
66,177
(22,629)
51,273		 2024
Total funds
£
7,058
56,838
(50,707)
13,189
2023
Total funds
£
7,725
66,177
(22,629)
51,273

Page 15

Midlands Academy of Dance & Drama Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

14 Fees payable to independent examiner

During the period, the fees payable (excluding VAT) to the charity’s independent examiner Community Accounting Plus are analysed as follows:

Accounting Plus are analysed as follows:
Independent examination 2024
£
1,000
1,000		 2023
£
1,000
1,000

15 Taxation

The charity is a registered charity and is therefore exempt from taxation.

16 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

17 Related party transactions

There were no related party transactions in the year.

Page 16