Charlty no. 1122964 Luton Cultural Services Trust Annual Report and Flnanclal Statements For the year ended 31 March 202S LUTON CULTURAL SERVICES TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2(Y25 Pa8e Trustees, Report 1-23 Independent Auditorfs Report 24- 28 Consolldated Statement of Financial Activities 30 Consolidated Balance Sheet 31 Consolldated Cash Flow sts*e￿t 32 Notes to the flnancial statements 33-46 llil v o VJ 41 3 a O T¥ ? % 1 ¢5 rj £ o 0)3È£zNÈ Z< (5- v> V* w c .QU73 7) C l) ID 3£0 IV £ + L 7J tx c i) CL Vw£ O J Lulon Cultural Servlces Trust Consolidatod Statement of Flnanclal Actlvltles (Includlng an Income and oxpendlture accounl) For tho year ended 31 March 2025 Unrestrletod Funds R¢strlcl•d Funds Total Funds 2025 Total Fund8 2024 Note Incom¢ from: Donatlons arKI legacies Charltable activ5ties Olher Irading acllvllles Invèstments 1.659,925 633,754 817,357 3,955 486.397 2.126.322 633.754 817.357 3,955 2.111.912 209.865 692.326 2.159 Total Incomlng R•sour¢e8 3.114,991 466.397 3,581,388 3,016,202 Ex￿ndIture on: Raising funds Charltable activities Other cosls 11 721,152 2,552,028 721.152 3.044.007 594,160 2,948,238 491.979 Total Ruourc•• Exp•nd•d 3.273.180 491,979 3,765.159 3.542.398 Not In¢omlngl(outgolng) r••ourc•s fore tran8far8 {158,189) 125.582) (183,771) {526,136) Transfers belween funds 17 7.199 (7,199) Not 5ncom•l{exp•ndltur•> (150,990) <32.781) (183,771) {526,136) Oth•r gaIn•l(l￿8•sj Investment property Impalrment Roalised loss on InveSt￿nI property Actuarlal gainsl(losses) on deflned benefit pension schem8 10 (386,262) 18 257,000 257.000 261000 N•t mov•m•nt In fund8 106.010 132,781) 71229 (697.519) Total fund8 brought forward 4,895,537 222.308 5.117,845 5,815.363 Tolal fund• carrl•d fornard 5.001.547 189,527 5,191.074 5.117.845 29 Luton Cultural Servlces Trust Consolldatod Statement of Flnanclal Actlvltl•s For thè yoar ènd￿ 31 March 2024 Unrestrlcted Fund8 Regtrlctfjd Funds Totsi Funds 2024 Not• Incom• from: Donations and legacies Chariiable activities Other Irading actiwties Invesiments 1,663,886 209.865 692.326 2.159 448,026 2,111,912 209,865 692.326 2,159 Total Incomlng R•sourc•8 2,568.236 448,026 3,016,282 Expendlturn on: Raising funds Charitable activities Other 594,160 2.609.331 594,160 2.948.238 338,907 Total R•8ourc•s Exp•nd•d 3.203,491 338.907 3,542,398 Not (outgolng)Ilncomlng r•sourc b•f*)r• transf•r• (635,255) 109,119 {S26,1361 Tran$f•r• b•ts••n fund• 17 (984) N•t Incom•l(•xp•ndltur•) {636,239) 110,103 (528,136) Investment propety impairmenl Realised loss on investment property Actuarial galns on defined benefit penslon scheme 10 (386,262> (48,121) 263.000 (386.262) 148.121) 263,000 18 Mot mov•m•nl In furKI8 {807.622) 110.103 1697.519) Total funds brought forward 5.703,159 112,204 5,815,363 Total funds carrled forward 4.895,537 222.307 5,117,845 30 Luton Cuttur•l Sorvl¢o8 Trusl Con•olldated Balanco Sh•at AB at 31 Mar¢h 2025 Th• Group 2025 Th• Charlty 2025 Nol• 2024 2024 Flxod 4•4ots Tan9ible fixed assets Investment propety 4,391,764 1,805,499 4.523.237 1,799,999 391,764 1.805,499 4.506.062 1.799,999 10 6.197.263 6,323.236 6.197,263 6,306,061 Curmnt 18MI8 Stock DebtoryJ Cash al bank and in hand 12 13 43.827 354,198 181547 27.461 206,454 656.820 207,649 92.101 217.255 364.553 581.572 890.735 299,950 581.808 Cradltorn.. Amounts fami￿ du• wllhin on8 year 14 (490.7341 (716.776) (552,271) 1655.861) N•t ¢urY•nl ••Mt•l{Ilabllltl•• 90,830 173,959 (252.327) {74.053) CY•dltor•: amounts duo aftor one year 15 11,097,027) {1.379,3501 (1,017,026) (1,379.350) Not a•Mt• •x¢ludlng p•n8lon •¢h•m• Il•blllths 6,191,074 5,117,845 4,847,910 4,852.658 Dèfined bènefit pen#ion 8theme assel N•t a•8•ts Includlng p•n•lon •chomo Ilabllltlo• 5,191.074 5,117.845 4,847,910 4.852,658 Funds Ra$t￿ted furwJ8 Unre$tdcled funds Genoral fuThJ8 pen￿On resenle 17 189,627 222,308 189,527 222.308 17 17 S,001,547 4.895.537 4,650,383 4.630,350 Total lund8 5,191.074 5.117.845 4.847.910 4.852.658 16-09:2( Th880 a¢counl8 wer8 approvod and 8Uthorned tor issues by Ihe Board on ............. nd sigmd on their bohatl by.. dK•4 St•rk Chalrni•n 31 Luton Cultural S•rvI￿9 Trusl Con8olldated Statement of Cash Flows For the end•d 31 March 2025 Note 2025 2024 Not cash flow from op•ratlng actlvltl (a) 1123.129) 33,177 Cash flows from Inv•Btlng actlvlt108 Inler8St received Inlerest element of finance lease repayments Inlerest element of loan Pfoceeds from sale of land Expendilure on fixed assets (Includlng Inveslment propety) 3,955 2,159 {3.697) (67,565) 733.119 41,871 (64,004) 24,945 Net cash us8d In invesllng activltles {84,994) 622.145 Cash flow8 from flnan¢lng actlvltle* Repayment of capital elemant of finonrA loases Bank loan drawn down Capllal element ol balloon payment (23.992) 1241,158) (36.575) (37,468) 6,579 1265.1 SO) (80,622) N•t cash Inflowl(outflow) (b) 1473.273) 574.700 Ca•h and cash •qulval•nls at b•glnnlng of th• y•ar 858,820 82.120 Cash and cash •qulval•nt8 at tho end of Iho ￿ar 183.547 658.820 a) R•conclllatlon of outgolng resources to not ca8h flow from OPeTatlng actlvltle8 2025 2024 Net outgoing resources before other gainsl(losses) Loss on dlsposal of ffixed assets Oefined Benefit Scheme movemen(s Increase In stock Incr8ase in debtors Decrease in creditors DeprecSatlon Interest pald on finance leases Interesl paid on loans Interest rKelved (183,771) (526,136) 257,000 116.386) (147.744) 1243,218) 150,919 263,000 {13,3411 {21.8551 106,211 156,195 3,697 67,585 (2,159) 84,004 (3.955) N•t eAsh fl¢)w from operatlng actlvftl 123,129 33,177 Analy818 of chang08 In not d•bt At 31 March 2024 656,820 (1.458.819) (23.992) At 31 March 2025 183,547 {1.217,660) Caslfflows (473,273} 241,159 23.992 Cash and cash equivalents Loans falling due before and after one year Financ8 lease obllgalions Total net debt 825,991 208,122 1,034,113 Luton Cultural Servlcog Trust Y•ar end 31 March 2025 Notss io thg aGGounts Accountlng pollcles a) Bas18 of preparatlon Th8 financial statements have been prepared in accordance with the Financial ReportiThJ Stsndard applicable in the UK and Republlc of Ireland {FRS 102). The Charity is a public benefit entity for the purposes of FRS 102 arKI therefore the consolidated financial stslements have been prepared in accordance with Ihe Stalement of Recommended Praciice applicable to charities preparing their accounts in a¢cordance wilh the Financial Reportlng Stsndard applicable in the UK and Republic of Ireland (The FRS 102 Charity SORP) includlng Updata Bulletin 2, the Companies Act 2006 and the Chaiities Act 2011. The results of the subsidiary entitles are consolidated on a line by line basis. A summary of the results of the subsidiary entities is shown in Note 11. The functional currency of the charity and its subsidiaries is sterling: amounis are rounded lo the nearesl pound. Lulon Cullural Ser4ices Trust has taken advantage of the exemption in section 408 of the Companies A¢t 2006 from disclosirva its Indlvklual ststement of financial activities. The Charity only deficil {n8t movement in funds) was £21,916 (2024.'deficlt of £815.032). The group accounts consolidate ihe accounts of Luton Cullural Services Trust and its subsidlary undertaking, LCST Trading Limlted, mado up to 31 March 2025. The acouisition method of accounting has been adopte(l. Golng concorn In ac¢ordanGe with Iheir responslbilitles the Dlrectors have considered and concluded upon the appri)priateness of the going cor)cem basis. which has been used in th8 preparation ol these financial statements. In maklng thls going ¢oncem assessment, the directors have had regard to the following matters: Budgets and cash flows to March 2025 Relationships Wth the bank b) The dlrectors aro confident that Slrfficient funding will be made availabla to the company in the 12 month period fdlowing the approval of these financial ststements. The LLAL and Arts Council revenue funding has been confirmed and this provides £1.98m Secured income ft>r the Trust in 2025r26. During cov1￿19, an overdraft facility of £1 Ook was put in place to help the Trust manage cash- flow and this remains in place until Febwary 2026. 11 Is anticipated that the facility may still be required beyond this period and so an extension wll be sou9ht. The Trust is active in seeking opportunities to fundraise and to date has been very successful. After making these enquiries, and considerlng the factors described above, Ihe Directors have a reasonable expect81ion that the charitable company will have sufficienl resources lo continue in operational existence for the foreseeable future. For Ihesa reasons. the charitable company has continued to adopt the going concern basis in weparing the flnancial statements. ¢) Incom• Tolal incoming resources as shown in the Statement of Financial Acliwties is the total income of the group. Al incoming ￿sOUrceS a￿ included in the Statement of Financial Aclivities when the charity is entitled lo the income. the receipt is probable, and the amount can be measured reliably. The following specific policies are applied lo particular categories of income.. 33 Luton Cultural Sorv5¢0$ Trust Yaar ènd 31 March 2025 Notès to tho accounts Voluntary Income Voluntary Income is included in the Statemanl of Flnancial Activilies when receivable. cll) Grants rncelvable Revenue grants are c￿lled to the Statement of Flnanclal Actwities when the Charity has entillement to the funds, any perfomiance conditions attsched to the grant have been mel, il is probable that Ihe income will be received and the amount can be measured reliably. d) Allocallon of costs Central salary costs are apportioned on th8 basis of staff tim8 attributable to each aclivity. Overhead costs are allocatad to activitias on a headcount basls. •) Co$t• ol charftabl• actlvttl The costs of each category of charitable activity are Ihe costs directly attribulable to that activity and allocaled central costs. fj Govomanco cost8 Govemance cosls include all costs of compllance with constllutional and statulory requirements, includlng legal and audil fees and Ihe costs of meetings. g) D•pr•clatlon Depreciation is provided at rales calculated to write down the cost of eech asset to its estlmated residual value over Its expecled useful life. The depreciation rates in use are as follows: Long leasehold property improvements 10- 50 years Planl & equipment 5- 10 years Olfice furniture and equipment 5 years Computer software 3 years Items ol equipment are capitalised where the purchase price ex¢e¢ds £5,000. Assets are revithved for impairment if circumstances indlcate their carrying value may exceed Ihelr net realisable value and value in use. Assets obtained under hire purchase contracls and finance leases gre capitalised as tanglble fixed 8ssats and depreciated over the shorter of the lease ierm and their useful lives. Obligatlons under such agreements are included in creditors net of the finance charge allocated to future wiods. The finance element of the rental payment is charged to the profil and loss account so as lo produce a constant periodic rale of charge on the nei obligation outstsnding in each period. Freehold property has been capiialised and included in fixed assets at cost. Depreciation has not been provided after taking into account the value of the land, the residual value of the property and the estlmated useful life of the assei. The propety is ￿vieWed annually for any polenlial impairment. h) Sloclr Slock is valued at Ihe lower of cost and net realisable value. l) Ro8trlctod funds Restrlcted funds are to be used for specified purposes as laid down by the donor. Expendilure ich vneets Ihese criteria is identified to the furKI. together with a fair allocation of management and support costs. l) Unrestrlctad funds Unrestricied funds are donations and other incoming resources received or generated for the charltable purposes. In aLxord8nce ￿ryth FRS102. a pension reserrfe is included within unrestricted funds representing the defined benefit pension scheme. Designated funds are unrestricted funds of th8 charity which the trustee5 have decided at their discretion to Set aside to use for a specific purpose. 34 Luton Cullural Services Trusl Year end 31 March 2025 Not•8 to the accounts k) Rosourcos expended Resources expended are recognised in thè period in which they are incurred and include attributable VAT which cannot be recovered. i) Costs of goneratlng funds The cosls of generating funds relate to the costs incurred by the group and charitsble company in raising funds for ils charltable work. m) Penslon cos18 The pension liabilities and assets are recorded in line with FRS102 and relate to Ihe defined b8nofil scheme set out in note 18. A valuation for accounllng purposes is undertaken by an indepen4Jent aciuary. The valuo of benefits accrued and the net Interesl costs is used to detemiine Ihe pension charge in ihe SOFA. The change in value of assets and liabililies. changes in benefits and changes In actuarial assumpiions are recogni5ed in th8 SOFA wilhin 'actuarial gainsl(losses) on defined benefit pension scheme.. n) Inv09tm•nt prop•rty Investrnent properties ar8 properties which are held either lo earn rental income or for capital appreciation or for both. Inveslmeni properties are recognised initially at cost. and subsequent io development woths will be adjusted to their fair value at period ends. o) A¢¢ountlng •￿IMatel and k•y Judgoments In the applicat￿ of the company's accounting policies, the Trustees are required to make judgements, eslimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimales and associated assumptions are based on hisiorical experience and other factors that are considered to be ralevant. Actual results may drfler from these estimates. The ests'mates and urttderfying assumptlons ara revlewed on an on-going basis. Revisions to accounting ests'mates are recognlsed in Ihe poriod In ￿1¢h the estimaie is revised, if the revision affects only Ihat period, or in the period of the rev181on and fulure periods if the revision affects both ¢urr6nt and futu￿ pericrDe Sodal security costs Finance leases due wlthln 1 year 8ank loan wllhin 1 year Amount due to subsidlary 156.356 228,377 181.642 164,768 38,538 23,992 79,469 137.126 215.945 181,653 116.162 38.640 23,992 79,469 176.979 36.765 127.875 36,765 120.634 120.634 129,877 490.734 716,776 552,277 655,861 Acuuals and Dglerred inconw lino includes £22.595 of income which has been daférréd to the 2024125 FSn8nclal y88r. 15 Crndltor•: amount• du• aft•r 1 y•ar Group Ch•rfty 2025 2024 2025 2024 Bank loan 1,097,027 1.379,350 1,097,027 1.379,350 1,097,027 1.379,350 1,097.027 1,379.350 The bank loan wa8 laken out In September 2019 and is rapayable In Instalm8nts by Seplèmbèr 2044. Interest of £ 47,66212024.. £54.009) was chafpd during the year. There is a first legal charg8 on tha free￿Id propety of 32 Guildford Street over Ihg bank h)an. A CIBL loan was lakan out in FobnJary 20218•￿ Is repayable in instalments by February 2027. Interest of £ 16,34212024'.13,555) was charged during the year. Inlerest will bo charg8d at 6.5% in subsequent years. The loan is not secured. Theffj was a capital repayment holiday until July 2024. 41 Luton Cultural Satvlc•8 Trust Notes to th• Flnan¢lal Stal•monls For the year onded 31 March 2025 18 Anaty•ls of group not •M•t• b•tw••n fund8 Pension scheme liabilty N•t aM•ls at 31 Ma￿h 2025 Fixed Assets Current asseV{Ilabllilyl Long terni creditors Re8lrlct8d fuThYs Pension reserrfe General funds 504,304 1314,7771 189.527 5,692,959 405.615 5,001.547 1.097.027 Tol•l lund• 6.197,263 1.097.027 90.638 ￿ 5,191.074 Pension scheme Fixed Assets Current 888•V(Ilabilty) Long tami credS10 Not a88•ts al 31 March 2024 Restrfcled funds Pension reserve General luThJs 537,085 {314.777) 222,308 5.779,572 495,315 1.379,350 4.895,537 Total funds 6.316,657 1,379.3SO 180,538 ￿ 5.117,845 42 èffj IJ'C Luton Cultural Sorvl¢o5 Trust Notès to the Flnandal Slat•ments For tho y•ar and•d 31 March 2025 17 Mov•m•nl• In fund• lconlln￿￿> NPO Mu••um•Arts Councll England The Arts Council ENJland awarded Lulon Cultur8 Nallonal Portlolio Organisation statlls on 1s1 April 2019. Luton Cullure's museums have now become a16ader in Ihe¢r area Wbth a collectlve responsibility lo protecl and develop Ihe national arts and culture. The grant income is the continuallon of Ihe programme ol funding and inveslmenl to hèlp d8llver ACE'8 strateglc obleclives. 18 P•nslon •ch•mo Luton Cultural Services Trust ￿ntributeS lo the 8edlordshire Pension Fund. a d8fin8d benefit penslon sch8rne. to socure pr85enl and futur8 pensions for ils $tsff. For slaff, employer conlribulions were 10% of p8nsionabl8 salary from 1 April 2024 10 31 Marth 2025 {10% - 2024). Employee ￿ntributIonS wer8 bet￿trn 5.5% and 12.5% of penslon8ble 5818ry dependent on salary. The assets of the Scheme are held as part of the Bedfordshire Pension Fund. The valuation of th8 scheme Is based on Ihe most recenl triennial lunding valuation. updated ty Ihe schem8 aCtuarl8s In May 2022, based on the provisions of FRS102. Inveslmenls have be￿ valued, lor this purpose. at fair value. The results of the next review will be available laler in 2025. The prlncipal assumptions used by the actuary lo calculate Ihe Scheme Ilabillligs under FRS102 were as follow8.' 2025 2024 %p8 Pension Increase rate Rale of InGrease in Salaries Discounl Rate 2.95 3.95 5.85 2.85 3.85 4.95 The demogfaphlc assumptlons that aro consistènt with those used lor the most recent Fund valuatlon, which was carried oul as at 31 March 2022. except lof an update of the CMI ptojeclion model. The impacl of ihis Is a small increase to female Ilfe expecl8ncles and improvomont in the balance sheet tM)silion. The core model places no weight on the excepllonal mortality experienced during 2020 and 20218s a result ol Ihe Covld pandemic. but placts somé rdianeé on mortality data that has been Obs9r￿ durlng 2022 and 2023. Specificalty a We￿hling of 25% 18 applied to mortollly In 2022 and 15% in 2023. A building block approach is adopted in detemiining the expected raie of relum on Ihe scheme's assets. Hlstoric markgts arè 81udied and assets with high volatility are a86umed to 98neral8 hlgher returns consislenl ￿1h widety accepled capital market prlncaples. Each dlfferent asset class is given a different expected rate of return. The overall rale ol return 15 then derived by aggregaling Ihe expeGted return for each a$set ¢lass 0￿r thè actual assèt allocation ol the scheme at y8ar end. 2025 2024 Equities Bonds Property Cash 61% 18% 15% 19% 16% 3% Amount• r•cognl•od In th• SOFA 2025 2024 Currènl sèrvica cost Emp5oy8r Conlrityjtions In￿me inlerest on plan a55ets Interest costs on defin8d benefit obligaltin Administration expenses (233.tM)o) (236.(1(M)) 3,000 27,000 29.tKK) 257,000 44 Luton Cultural S•Thlces Trust Nots8 to the Flnanclal Slatsrn•nts For yoar and￿ 31 Ma￿h 2025 Reme8surements'. Changes in financial assumplion8 Change In demographlc assumptions Experience gainl(loss) on definad benefrt obligalion Other actuarial gainsl(losses} on assets Llablllti8s assumed l {8xlinguishedl on sètllèmènls Settlement prices received l {paid} Retum on assets exduding arnount included in net interesl Surplus restriction par FRS102 2.517.0(10 42.000 38.000 511.0(hJ 201.000 (TO.0001 (389.0￿) 2.063.OC4) 2.179.000 8.358.0￿) 526,0 EMplo￿r contrlbutlon8 133,000 131.000 Total amounts rncognl••d In Iho 30FA 257,000 263,000 Amounts r•wnl8•d In Iho balanrA •h••t Fair value of scheme assets Present value of funded obligations Surplus restriction per FRS102 25,191.000 24,8S5,000 116,957.0001 (18,g95,000) 8,234.000 5,860,000 N•t Ill•blllty) r•cognlud In th• balanc• •ha•t Chang•• In lalr v•lu8 of •ch•m• ••••ts 2025 2024 Sch•m• •v4•t• at start ol p•rlod Int8msl income on plan 8$86ts Relum on assets exclu(Iln9 amount Included in net interest Olher acluari81 gain81{losse6) Admlnlstralion expenses Contributions by employer Contslbutlons by stheme participants Benefits pald Sottlement prices fecefved l (pald) 24.855,000 1.219.(M)o (389,000) 21,952,000 1.049,000 2.063,1)00 {27.000) 133,000 94,000 (694.000) {29.000) 131.000 86.000 (397.000) 8ch•m• a•Mt• at •nd ol p•rlod 25,191.000 24.855.000 ChJngM In Pf•Mnt valu• of •chgm• Ilablllti 2025 2024 Sch•mo Ilabllltl•• at •tart of p•rlod Currènt servicé cost Interest (y)sts on defined benefit obllgatlon Changes in financial assumptions Conlrlbulions by scheme partlclpanls Acluarlal (galn) I k*sses Chang89 in demographlc agsumpllons Llabilltles assumed l {ex¢ln9ulshedl on settlements Past service costs Benefits p81d 18,995,000 233.iY)O 926.0(M) 12.517.IK)O) 94.000 {38.lJOO) {42.000) 18,81&000 236.Tr)0 896,000 (511.ot)o) 86.000 70.000 1201.0(M)) 397.01 Sch•mo Il•blllllo• at Qnd of p•rlod 16.957.000 18.995.000 45 Luton Cuftural Servlcos Trust Notes to the Financial Statements For thè yèar ended 31 March 2025 18 ￿nsIOn scheme {oontlnu•d> Mostory of deflnod benet61 xheme 2025 2024 2023 2022 Fair value of scheme 8SS8ts Present value of scheme liabilities 25.191,000 16,957,000 24.855.000 18,995.000 21,952,000 18,816,000 22.226,000 29,577,000 N•t d•flnad ban•flt Ilabllhy 8.234.000 5.880,000 7,351,000 Experience gainsl(loss&s) on sch8m8 assets 389.000 2.063.000 {799,000) 3,156,000 Experience gainsl(losses) ¢)n scheme liabilits'es {38,000) (70,000) (1,586,000) 211,000 The estimated contribution for 2025126 is £132,000. 19 R•lat•d partl Durlng the year the Trust had the follo￿￿ng transactions wilh these related parties. Luton Borough Coun¢ll LCST LCST Tradlng LBC Spent In year Owed al year end LBC involced tho Trust in the year 145.908 Owed at year end 39,043 24,189 2.093 22,458 L￿On Rlslng LCST LCST Tradlng Donation from Ltston Owed at year end Lulon Rising invoiced the Trust in the year Owed at year end 1.654.000 There is a least one trustee of Luton Cultural Services Trust who has infiuence within each of these organis8lions. 20 Capltsl commltments Contractual commltmenls for professional fees and lo refurbish the Hat District properties at the year end were £Nil (2024: £Nil). 21 Operatlng leases Non