Royal Welsh College of Musit and Drama Llmlt Anancial Statements and Annual Re¥lew Year ended 31 July 202S Registered Cornpany number Registered Charity number 06013744 1139282 11111111111 *AEUD25iKJ* 2310112026 ¢OMPANIES HOUSE #135 Contents Pale l. Reference and adminislraiNe details 2. Introduction from the Chair of the Board of Trustees 3. Principal's Review of the Year 6-10 4. Corporate strurture. Tnjstees and Director5 li S. Trustee￿ Report lincorp0rntlt￿ Strategic and Oirectors Report) 6. Directors, Responsibilitie5 20 7. Objertives and activities for the public benefit 21-24 Independent Auditorfs report 25-27 Statement of Comprehensive Income and E¥penditure 28 Staiement ofchanges in Reseryes 29 Balance Sheet Cash Flow Statement 31 Notes to the ftnancial ststements 32-49 1ryfilwelshccA￿vrf M¥sK•nd fy•rn• ￿rted I Pe•iVwl YeatendEd 31*1015 l. Reference and administrative details Charlty name Charity number Company number oval Welsh College of Music and Drama Limited 1139282 06013744 Chalr Mr M Plaut Secretary Mr W Callaway Prindpal adthess and rrylstered office Castle Grounds Cathays Pafk Cardiff CFIO 3ER Independent audStws External: Haysmac LLP 10 Queen Street Place London EC4R IAG Internal.. TIAA Itd Artillery House Fort Farèham Newgate Lane Fareham P014 IAH Wdsh ONmaL4Thied l FinaKi•ISfatem￿￿d Ye¥eThled 31Jth 2015 2. Introduction from the Chair of the Board of Trustees On behalf of the Board of Tfustees. I would Irke to thank everyone at RWCMD for making it another memorable year. Desplte significant ongoing challenges across the higher education sector. it'5 enrouraging to reflect on the many successes achieved by the College for our students. Staff. communities and partners. We were delighted. at the end of our 75th birthday year, to announo Dame Shirley Bassey CH 08E as our new President su¢teedin8 HM King Charle5 who continue5 as Royal Patron following his accession to the throne. Dame Shirlevs visit to tyjr Pfesidenvs and Wice-Pre5idents' Dinner in June was a standout moment forthe College community. Throu8hout the year. ourstudents and staff delivered over450 performances and events. h05tin8 and entertaining almost 50.0(Kl visitors. This repre5ent5 an impre55i¥e body of Work demonstrating the College's continued contribution to the cultural lrfe of Wale5. ah)r4qside training ihe next generations of musicians and theatre rnèkers. We have made good progres5 towards commitment to finding sustainable ways to support young talent dèvelopment. Following the closu￿. out of finantial necessty. of our re8ular wèèktnd music and drama provision foryoung people under 18 in autumn 2024, we extended delivery of partnershrp artivity, Strengthenin8 partnerships with Urdd Gobaith Cymru, Nakn"onal Youth Art5 Wales and laii Explorers Cymru. and continuin8 to work closely with the National Music SeThice Wales and Seren. Meanwhile. we wntinue our successful work ￿th the National Open Youth Orchestra and our Youn8 People's Production Art5 prograinme. Slnce 2022, the Old Library ha5 become a key extension of our campuse5. In September 202S, we appointefl a contractor to be￿n the ffiist phase of redevelopment. paving the way for expanded activity from 2026127. This historic buildine is being redeveloped as a vibrant arts and edutation hub in the heart of Cardiff-emph3sising our role as W•les' natb)nal tonseNatoire and deepenin8 our engagement with students. artists. and the ¥wder community. We are very grateful for the philanthroplc donatbYI5 that are fvnding this important Work. The Board has also been delsghted with the College'5 progress in its Strategy to address ongoing challenges. We are committed to ensuring RWCMD remains a distinctive conservatoire. competitive a8ainst its peers. adapting our ways of education and ma￿Mis1n￿ the effectweness of our infrastructure. This year. we met our key targets, indudin8 student recruitment and c05t reductior15, which has helped to meet the settor wide challenges. We also undertook comprehensive reviews of our academic and production portfol￿. and ournew academic blueprint is bein8 phased in from 2025126. These achievements provide an important plarfom for 202SI26 and later years as we prepare forthe future. We have been engaged in constructr¥e conversations with the Welsh Government and Medr to discu55 future long term fundi￿ optionswith a view to bringfvnding in line with most UKconservatoire peers. These discussions are ongoin8. Looking ahead. the external environment remains difficult. with financial pressures continuing across the Hi8her Education 5ertor and considerable iurbulence across the arts and creative industries. Nevertheless, we remain commined to our plans to treate the conseryatoire of the future and confident in our leadership team's ability to deliver them. As ever, as a Charity, we remain reliant on, and grateful for, the generous regular financial support from many individuals, trusts and corporations. To finish. I would like to emphasi5e my eratitude to our staff. trustees. and all those who have Contributed to the College's achievements this year. l also thartk my fellow Trustees for their dedicated 5erwce. and in particular M•rio Ferelli and Aled Miles, who completed their temis of offKe this year. Mlchael Maut OBE Chair of the Board of Governors 18 Noyernber 2025 WWetshCtyllEyol m￿%1[ and (*•rna l FThuALI￿5tstern￿n￿aIo￿￿vA￿l ReK*l Yea1ended31Ju￿ 2015 3. Principal's Rt¥iew olthe Year The 2024125 a¢ademic year has been another year where our students. colleagues. graduates and partners have delivered numerous examples of outstanding perforniance. Students Following the 5ucces5ful recruitment tycle in the pwious year, over 4￿ new Students Joined the College in September 2024, resulting in 930 st¢Jdents studyingwith us in 2024125. 12023124.. 8531. As was the case in july 2024. our graduation ceremonie5 were held in ourown Oora Stoutiker Hall in Julv. Across four te￿mOrtIes 337 students 12023124-. 3521 were joined by many of our staff and the students. friend5 and families to Celebratè their achièvements in this special intimate on-campus 5ettin8. Additional information on our student Ixjdy is set out below.. 2024125 69%were urKlergradu•te$ al￿ 31% postgraduateL 707 siudents 176%) wer* UK domiEil•d, ihdudln¢ IB6 from Wale5. 102 5wdentswere We15h speakers. 213 Internatlonal students 12YAI from 38 dllferefit countrles. IVA ¢1 students declared a disability. 28% of our Mudents dedwed that they w•r• from tho Klobal Maso￿4. 94% retention rnte - students corn*ttd the udles andlor pro8res5ed. 14S 188%) ol our undergraduates ¢la5s or ypp¢r setond-cla55 deyee. 147 185%) of wr postyaduates retd%*d a dlstondion •ra m•rfL 2023124 72% were undergraoyates and 28% posi8r•duates. 691 students181%1 were UK domiriled. including 188 frorn Wales. 94 students wete We15h speakers. 153 iniernitional students 118%> were from 38 different cpuntrie5. 27% 01studeAlS derlafed a di5abilitv. 20%of ourstudtft¢s declared thattheywere Iromthe lobal majority- 94% retention rate. 160 1%1%1 ol our undefyaduates re¢eived a fvst- da55 or upper 5econdda55 dwee. 144183%) of our p)5t8raduate5 rectfftd a dirtinrtion or a Th*rit. vdent experlence The National St[￿ent Surrfey remains an wnportant measure of the College's feputstion. Notably. in 2025. the overall student satisfaction score increased sli8htsy to 81.1%, compared to 80.6% in 2024 and 79.8% in 2023. Drama had some eX￿ptIOnal results with a satiSfact￿)ft score of Ily￿ In Acti and Design for Performance and 89.5% in Stage Management and Technical Theatre. There was also significant advance in Music with tl* overall sotisfa¢tion score growing to 80.7%, with our Strings department also scoring I(￿￿. OLbtside of Wales. the final overall sat15fartron question is no hjnger intluded in the survey, meaning we cannot directly compare this overall result with our UK conseryatoire peefs. However, we can still make category-specific comparisons. and I'm delI￿ted to report that we continue trj compare favourabty with our competitors in most oftheihematic (ategories, with some ofthe more important headlines noted below.. on a¥era8e RWCMO s¢ore5 are 2-5% better than our peers across most categories Rryol Webhccknof ￿￿51¢•r0D￿likTUtyd l Reb4v*l Yew 31 1025 for 5 out of the 7 categories in the 5ur¥ey. our scores are at ovef ￿. Acf05S the sector most have 4 lor fewer) cate8ories S¢Ofing above 8￿. AWCMD'S highest level of satisfattion scores were for Teachin& Academic Support, Leaming Resources and LeaminB Opportunities. We are not complacent aboutthe ￿sUItS of this years survey and will continue to woik throu8h our strategic plans and implemenr S￿tem1¢ and organisational change at the College, however. we celebrate the upwards tiajeciory over Ihel8stfew years. Loarnlng. pertormin& t•athini and the RWCP•M) en¥ironmeAt This year a group made up of senior academic and professional sery1￿5 staff. led rhe development of new A¢ademic Blueprint for the Collegè. As well as agrèeing a core set of principles that ensures Compltance Wbthin the Unbversity of South Wales. quality assurance framework and natlonal benchmarks. we redesrgned the Colle8e's own oJrrKulum conten¢ teaching and delivery to align to our own academic strate8y and strategic wllars. The agreed blueprini now guides staff through a consistent. high quality, forward-looking vocational training. Key strategic ambtiions include: to be an pxpert and more diverse and indusive ¢onser¥atoire to develop our work in the arts in society and in Wales. in collaborative practice, aut0￿M¥ and 5tudent-led work, to unlock the potential of digital technologies ift research and innovation arhd in industry the expansion of career paihways. Aligned to this blueprint work, the Colleee also wewed and updated our academic tem date5 and production schedule. Usiryg benchmarking across the sector. and taking into consideration feedback from staff and students, we have introduced a new pattern of tem dates from 2025. Thi5 work also enhanced alignment of schedules across different departments - to support growin8 collaborative opportunities - and a grèater co.ordination af our student perfom)ances as a core and dbStin¢tive element of our public arts centre programme Our students continued to benefit from thi5 performance and cornmunityengagement programme at our busy arts centre and. as pan of other INe industry environment5, were able to engage audiences in their work at every opportunity- Importantly thi5 meant they were learning up Close with some of the world's most renowned performers. pushing boundaTie5, Collaborating with col￿agUeS and partners and creating newwork across a fvll range of professional and community settings. Highlights inclvded.. Our artors had masterdasse5 with RWCMD Fellow and Olivier award winner Anjana Vasan and individual ¢astbng tutoria15 With Nina Gold, the multi.award•winning international ca5tin8 director for the Crown. Game of Thrones and Star Wars. Designers, ma5terdasses included Gabby Slade18raduate. Fellow. Olivier and Tony Award Winner for Six and Starlight Expressl and Stage Managers were joined by Tim Routledge (graduate, Fellow and RTS Winnerl WI￿ once again. was the tighting Designer for Eurovision 2025 at 8asle. oyalWe15h C￿￿e¢l￿•￿iEafid Drnma LI￿￿ed l Fkn4r&i•isiaiErn￿ts1N￿knUllReYl2￿I Vwefidtd 3LI* 202S Music students worked closely with Sir Bryn Terfel. pianist Uyr Wtlliams and had sidè by side expèrien¢es with the Orchestra and Chorus of Welsh National Opera and BBC National Orchestra of Wales. OtJr resident ensembles, The Carduc¢i and Fibonacci Quartets. meant our students had deep learning experiences with these 5ucce5sful induslry professionals. Acro55 our three exceptional sltes in Cardiff our students continued to enjoy wortd class facilitles. Our North Road slte includes the Dora 5toutzker Hall and the Richard Burton Theatre. Our Llanishen workshop is a fulty equlpped facility for tea¢hirvd s￿niC arts and con5tructitin techniques. It is the en of many of our competitor conservatoires and enables our students to work on the same equipment as spéciali5t5 in the industry. Meanwhile, we continued to develop the work at our ¢ity centre Old Libfary site during 2024125. rolling out more of our t•a¢hing and using the unique spaces to create more informal approaches to perfornian￿ and inclusive fom)s of public participation. Making best use of these iesources across the Colle8e community, we ensure knowledge. experience and opportunities to perform are providedto ourstudents in orderto pro¥￿e a high-qualityworkforte to the ¢reatlve industries in Wales. the UK. and internationally. Cultural provision Once again. we've seen a huge amount of highr bespokeworkshops, tours and performances. In addition, our students provided perfomian¢eslworkshop5 in over 35 %hools and Community venues. Many of the highlights from this work are described in Section 7. Throu8hcAJt this WO￿ and our degree courses, we look to align with Medrfs StrateBic Aim l and committing to ensuring learner well-being and accessibility. including for those with proterted characteristics and additional learning need5. We ha¥e been workin8 hard this year to secu investment that will enable us to protect and grow our work with youn8 people and support their progression into higher education. Looking forward, RWCMD is uniquely positioned within the Current ecosystem to expand its role and play a central convening and curating role with a coo 8roup of national organisation5 IRWCMD. NYAW, Urdd Gobaith Cymru, National Music SeN¢e and Serenl alongside Further Education Colleges and schools to devek)p an e¥idence*ased national talent partnership pro8ramme to support young people's en8a8ement the perfomiing arts, and pathways to further and hi8her education. Royalvldsh C￿l￿e¢l￿￿5￿?￿1l￿rnI Lmnited l FimMi￿S￿t￿7￿￿ rt•J￿￿1kV•￿￿l ¥ewended JIJ*70Z5 Dlver55ty. Equlty. Inclus5on and Belon8in8 OUT overall ambition is for RWCMD to be a space for everyone with inclusivity as a core value where everyone is respetted. We see this as intÈgral to ou¥ excèllence. Our international Chaii of Diversity. Uzo Iwobi. reminds us that this is a journey we are on tO8ether. We ￿COgnISe that we have not yet fully achieved our goals.. however, through collective efforts and ongoin8 learnitvd. we continue to make steady progress. The College is a sp3¢e for everyone- an open and welcoming place where diversity is celebrated and protected. We eommit to provide respertful spaces that encourage on%oing discussion between our stsff, student5 and stakeholders and to identtfy and remove barriers to ensure more equitable outcomes are at the heart of what we do. Our new Strate8ic Plan for Diversity. Equity. Inclusion and Belongi￿ IDE181 and Anti-Raci5im plan were introduced in 2025. These embed inclusion as a core value. expressed as a vision to inspire and chanee lives and connect and transforni communities through the arts. The aim is to address the systemic barriers that exclude people from music and drama opportunities. making music and drama more accessible for all regardles5 01 background or protected chararteristic. The supporting action plan5 set out a¢tttsns lor a¢fvantln8 and guiding our efforts, through proactive measures. to ¢reate an ever more equitable community lorour students, Staff, and partners. womoting dr¥er5ity in all its forms in a culture of belon8inB where everyone can reach their full potential. In addition. with the University of South Wales, the College successfully worked wrth the University to achieve the Race EqualTrty Charter in July 2025 at Bronze level. Our ambition is to dellver genuine change through the bespoke attion plan arisingfrom this work. ft has allowed us to a55ess, benchmark and measure ihè Colle8e's work against established best prartice and present evidence to ensure that our commitment translates into meanin8ful artvjn and pro8ress. Work will continue to deliver on our identified actions. Further 2024125 Hlihliihts Royal Welsh College lrn¢xh for Hary Ex¢ellen¢e - we were delighted that harpist Bethany Coggon was awarded the inaugural Royal We15h College Brooch for Harp Excellen￿ by our Pre5Ldent Dame Shirley Ba5sey at the College's annual dinner in June. The brooch, forrrnrty used bythe Oflicial Harpist to The Prince of Wa￿s. has been given on permanent loan by The Kin& who is Patron of the Royal Welsh College of Music & Drama. Strings residen¢ies- in october 2024 we announced our new innovative residency for award- winnin8 strin8 quartets- The Carducci String Quartet and The Fibonacci Quartet. Supported by The Albert and Eugenie Frost Music Trus( with additional fvndin8 from the Colwinston Charitable Trust, th45 bold and transformative pro8ram places worfd-dass string quartet practice at the core of the College's wbrant community. aimin8 to influence the future of stri1￿ playing acrosswalesand beyond. Natl¢)nal Opoft Youth ¢*¢hestra- in May"NOY(r came t¢ Cardiff for the firsttime, bringlng togeiher young disabled and non4isabled mvsicians from au055 the UK for an uplifting afternoon of contemporary (la￿Cal music. The concert which included players from our very own NOYO students. q0v•lW￿Sh Collqe almuyitatsd ￿{Mal￿nited l Rt¥it¥Jl 3LJ* 2015 was a beautiful relaxed, inclusive performante that t¢Jok place at 88C Wales, Hoddinott Hall and included neurodivereent and disabled audientes. and families. Puppetry lakeo¥er at Technlquest- in the sprin& our talented puppeteef5 took Techniquest visitors on a spectacular visual joumey thfoughoul the Tethniquest Centre, exploring some of the Breatest innovations in the workl ol sciertt. The project showcased the skills and (￿atiVity of the College's Design for Perfomiance students imagined in ￿al life settings. Craldd- In December 2024, we collaborated with Crnidd. the Welsh partnership that aim5 to improve the ￿presentatIOn of disabled people across Wales. theat￿ sertor, and British Sign Language IBSLI consultants. to produce'Treasure Island, Integrating a new character for the BSL actor into the story wa5 an important step forward and built on the previous year's success with our BSL Integrated version of "A Chrisimas Carol.. Across the year over 755 audience members attended performances incorp)rating 85L 2025 Honornry Fellows-we proudty announced new honorary fellows at our graduation in July. The names, listed below, broughl logether cultural leaders. artists and educatc¥rs who define the College's belief in the power of the arts to chan8e live, bring people together and tran5ft>rm Society. Liarn Evans-Ford- ExecutNe Director and CEO of Theatr Clvryd. Barry Farrimond-Chuon8 MBE-CEO and co-founder ot Open Up Music Max Humphries- Design for Perforniance graduate and award-winning puppet designer. Mari Pritchard- National Coordinator for National Music Seryice Wales Rhian Samuel- One of Wales, most important Irving composers, Huw Stephens- BBC Wales and BBC Radio 6 presenter and champion of new Welsh talent. Anjana Vasan- Olr¥ier Award-winning actor aThJ RWCMD graduate. ongside our Oirertor of Music. TIM Rhys-Evans. l also had the extraordinary thrill and privilege to award Sievie Wonder an Fkmorary Felh)wship INe on sta8e at his concert in Cardiff 5 Blackweir Fields in July. Our President Dame Shirley Bassey summed it up perfertty:"On behaff of Woles. andthe Royal Welsh College. its notional conservotoire. I'm delighted thotstevie Wonderhas accepted this aword in honour of his huge contribution to the world of music. His extroordinary tolent ond impart have been source of in5pirotion to mony. ond we ore thrilled to welctwne him to Cardiff- His occeptonce is a tremendous inspirotion to ourstudents tynd the widercommunity." I'm delighted that thi5 year. despite the challengine climate for Higher Education. we have continued to deliver on our ViSLon to cha￿e lives and transform and connect communities through the arts. Mv unwavering fotus remains the sustainability of ihe College as Wales's Conservatoire. Whilst it has been a demanding year for us on thi5 front. we have made significant strides forward. A5 this summary demonstrates. I have been verycarefvl Th)tto10se sight ofour firm tommilments to artistic excellence and community engagement, to diverse pathways into professional trainin& and to our fole as the national conser¥atoire of Wale5 - championing ow lan8ua8e, tu￿Ure and peopte. and representing the nation across the globe. Professor Helena Gaunt Prlncipal 18 November 2025 Rtyal Welsh Coleieef Mu5r•Trd Liffi￿d I Po¥*wl Yearended JIJ￿ty 1025 4. Corporate strurture, trnStees and director5 The Royal Welsh College of Music and Drama Limited is a limited company and a registered charity. It is governed by its Article5 Of A5$0cialion. It is a subsidiary company ol the University of South Wales I-USW-I which is its sole member. The Compan￿5 registered address is Castle Ground5, Cathays Park. Cardiff. CFIO 3ER. The Charivs contact address 15 University of South Wales. Treforest. Pontypridd. CF37 IDL and the registered numbef 15 1139282. The members of the 8oard, listed below, are the trustees of the Charity and as such have due regard to the Charity Commission's guidance on public benefit and sts supplementsry 8uidance on the advancement of education for the public benefit. The existing dI￿ttor5 and those who held office during the year and up to the date of si8nin8 the annual report and financial 5tatement5, are given bebw-. Sarah Alexander OBE April Kojeyo-Audiger Antl8onÈ Alys Blackwell IRWCMD student President) Dr Ben Calvert IUSW Wire Chancellor. Vrbiversity of South Wales- ex officiol Mario Ferelli- retired by rotation 31 July 2025 Profe550r Hdena Gaunt IRWCMD Principal- ex officiol lan lewi5 Tianyi Lu Aled Mile5- retired by rotation 30 November 2024 Roger Munrbtngs CBE Michael Plaut OBE (Chairl Professor Oavid Ruebain Helen Sanderson (nominee of RWCMD Staffl Nltin Sawhney CBE- resigned 29 October 2024 Louise Evans-appointed 31 January 2025 David Francis- appointed 31 January 2025 Helen Rowland- appointed l Ortober 2025 Rhian Lan8ham- appointed l October 2025 Desmond Clifford- appointed l October 2025 Chris SLrtton- appoinied l October 2025 Wwdsh Co4wofA•J*¢¥l LAi*d l ￿￿￿1•1$1￿%1t￿ Re￿1 Yearende631h*202S li 5. Trustee5 Report This report includes the Strategit Report and the Dirertors, Report required under the Compan¢es Act 2006. The Trustees confirm that the financial statemenis for the yeaf ended 31 July 2025 have been prepared to compfy with the Companies Act 2C¥)6 and the Statement of Recommended Practice ISORPI.. Accounting for Further and Higher Education 2019 and in accordance with applicable accounting standards. 5.1. Stratrye report Flnancial Revlew Prln¢ipal aCtI￿tIeS The College's principal actpiry continues to be the delI￿ry of conservatoire educarion and professional training. In addition. the College artNities include public p¢rformance5 and exhibitions and the maintenance ond improvement of performance facilities for the benefbt of our 5tskeholders and the local community. To maximise efficiency and to generate income the College's facilities are also hired out ta the public when not ￿"ng used for the eduCat￿nal activit*s. Summary of ffl•in a¢hievements A summary of the main achievemerbts of the Colle8e in 2024125 is set out in Section 6. FiTran¢ial stratryy The Chairfs report, in sertion 2, outline5 the significant progress the Colle8e has been made this year in addressing the finanoal challenges continuing ro face the UK Higher Education sector. The immediate priority Set last year was to reduce projected deficits and to protect reserves in the 5h¢rt to medium term. All the key targets set for 2024125 have been met.. saving5 were delivered in line with plans. This was a key factor in en3￿Ing us to report an operating intome and expenditure surplus and an operating cash surplus for 2024125-exceedin8 the budgets approved by the Board in lune 2024. As a result, our reserve5 and cash balances have increased. providing a ftsundation for the future. We are now continuing to develop and implement plans that will ensure RWCMD remain5 a dists'nctive conservatoire, d*li¥*ring highquality preparation for students and meaningful value for staff and communitie5. Further cost reductions are likely to be needed in forthcoming years. and work continues in those areas in 2025126. There is con5t3nt emphasis on careful cash management to 5UPPOrt the Strategic priorities while retainin8 and enhancing the College'5 infrastrutture. It will not be enough to simply reduce costs- the College will also continue to adapt ways of learning and working and look to secure fvnding to invest in the physicèl and digital infrastru¢¢yre to make it an attractive option for students wantin4 to build gairiful ¢areeTs in music and drama. Key Hnanclal Perforniance Indkators The College uses the following key financial performance indi¢ators l-KPls"I to monitor overall performance against its financial strate8y. PerfOrma￿e over the last two years shows.. KPIS Income and Expenditure.. Surplus before ains and losse5- £CIXJ Net cash flow from operatin attNiiies- ÉCO) Net current a55éts- £CXXI Cur*ent tat￿? 2024125 1.774 1,938 2023124 2.109 3.331 6,401 2022123 608 505 4.550 Rty•IWetsh Coley olMusK¥d Lmniw l F￿W￿ls￿l*n￿ts andPthhu¥Roy*wI Ye¥•thd 3lJuty2025 The Colle8e 15 reporting another year with an overall surplus in the Comprehensive Income and Expenditure account. a solid operatin8 CO5h out-turn and a resilient net curient asset Wsttion. Adjusted KPIS The surplus befo￿ gains and105se5 reported in the Comprehensive Income and Expenditure account includes revenues which are Reserved Idonor restrictionsl for future Capital works to develop the Old Library12024125'. £Nil and 2023124.- £3.Oml Invested for the long ierm In the College Endowment fund12024125.. £384k and 2023124= £33kl. WithoLrt these two items the adjusted position would have been as follows in the pmious 3 years.. Adjusted KPIS Incorne and Ex 2024125 1,390 2023124 18911 2022123 11.5671 enditure-. Surplus bef￿ 8ains •nd losses- E(X)) flnandal prospects A5 noted above the Trustee5 and Senior Leadership Team continue to devebp a sustainable fvture financial plan that seeks io protect reserves by reversing cufrently projected fvtU￿ deficits in the next 2-3 years. Flnancial Perfomiance 2024125- Hthidllnes from the Fknanclal Statements 2024125 (l￿nge Total income Total expenditure Sur lus before Kain5 and10sse5 Net cash inflow trom operatin Net assets 21,141 19,367 1.774 1,938 21.647 22.176 20.067 2.109 3.331 19.746 -1.035 .700 -335 -1.394 +1.901 artivities Income 2024125 saw a fall in overall income of £l.l)m. £1.6m additK)nal student fee income lan increase of IS.3%1 of which £1.3m182%1 was growth in internatK)nal students was offset by a £3.Om reduction in capfital donations for the Okl knbrary. Expendtture Expenditure continued to be reduced for a second Consecutive year. Costs fell by £0.7m la reduction of 3.5%) in total. In general. in yEar inflationary increases lirKluding salary inflation and pension in¢reasesl were absorbed tO8ether with delivering on Ift-￿1r cost savifi8s measures. In more detail, salarycosts ￿dUCed by over £l.Orn- this induded the brnpa￿ of the closure of Youn8 RWCMD in Summer 2024 (with Some loss of income also reflected above). together with some recurring s3vin8s due to oiher in year strurtural staffin8 changes. However, some of these savin85 were offset by targeted increased investment in student support (including scholarships. bursary and hardship) to support the increase in student number5 in the year. Cash generated Irom operntlng activlties Net cash inflow from operating activittes was £1.9m in 2024125 compared to £3.3m in 2023124. Aoyil w¢lth Co*e ￿f￿￿$￿aIN*rknna I fry￿$141￿ts wd•thr•Jal le￿E￿I Yeai endEd 3LJu* 2025 13 In 2024125 this included donations ￿ceiVed toward5 future capital expenditure at the Old Library of £t)il which compared to £3.Om in 2023D4. Other signilicant ca$h movements in the year included payments to acquire fixed assets of £0.7m lincludin8 ¢aPital expenditure of £0.5m 12023124 £0.8wnl on the Old Libraryl and schedvled loan repayrnents to Barclays 8ank plc (including loan inierestl of £0.5m. Net assets The increase in net assets of £1.9m refiects the increase in total comprehensive it)come in the year. 5.2. Engagiry with ow stakeholder51serti¢m in ii151atementl The Trustees Iwho are also Directors of The Aoy31 We15h Collt8e of Music and Drama Limited for the purposes of cornpany lawl have a duty to prornote the success of the College having regards to the Inierests of our stakeholders. our students. our audiences. our employees. Higher Education Fundin8 Council for Wales Inow Medrl, our relationships with our suppliers ¥nd the impact of our operations on the communities in which we operate, and to ensure that we maintain a reputation for high standards of qualilv, Care and business conduct. All key Board decisions consider the impart on relevant stakeholder5 wf(h a particular focus on providing hi&h-quality service perforniance. community engagemenL ifinovation. best prattice in governance, workplace prartice5 and ￿spOnsIble ¢orp)rate citizenship. The Board endeavour5 to gain an understanding of the perceptions and atbtudes of each 5takeholderEroup and the weight they give to different issues and where these views may not align. the Board will take the best course of action to promote the companvs k>n8-term succe Our students Our students are at the heart of our purpose and operations. We aim to attract, Select and retain a diverse ran8e of students to study at the ColleBe and create an environment that encourages and supports 311 students to actively engage and to realise their full potential. Employees. Employee Involvefft￿ and Olsabled Employees Our strategic Oiversity. Equity. Inclusion and BelonginglDEIBI plan details ourcommitmentto creating an inclusive leaming and working environment in which everyone in our dNÈrse ¢ommunity feèls a sense of belonw'ng. is enabled to achievethebr full potential and can contribute to ourvision of making music and drama more accessible for all. Our DE18 commits to.. ongoing and active dialogue with staff to better understand and respond to their lived experience of our diverse staff bodv develop 5trate8ies to attrart diverse applications alongside addrwin8 hJentifitd academic and professional recruitment and selection outcome inequrties create career development and mentorin8 OPP)rtunities that are transparent and equally available for all staff review and evaluate career and work support for underrepresented staff Broups transparent arhd equitable staff regrading •nd pro8ression processès and support mechanism5 Applications fcr employment by disabled persons are always fulty considered. taking into account the respective aptitudes and abilities of the applicant concerned. In the event of member5 of staff becoming disabled. every effort 15 made to ensure that their employment with the College continues, and the appropriate trainin8 is arranged. It is the pollcy of the College that the traini￿, career 1￿￿1We￿b ColtoAedMuSiLahd DMMiAmited l 5urom*r454TraJlrn￿ Re¥*wl yearended31j￿y 101$ 14 development and promotion of a disabled person should, a5 far a5 Possible, be identical to that of a 5)er50n who does not Suffer from a disability. Consultation with employees ortheirrepresentatives ts re8ularty undertaken. with the aim of ensurin¢ that their views are con54dered when detision5 are mode that are likely to affert their bnterest5. Communication with all employees is undertaken thro4h ￿Sular staff meetings and e-mails and oc¢asional staff survey5. staff members a150 have a D1￿ctor as a rèpresentativè on the Board of Direttors. R￿Ul310r$ The College provided Hieher Et1u¢aiion services during the year. The College is a wholty owned Subsidiary of the University of South Wales I-USWI who ore regulated by Medr. Medr is the principal funding body from which most of the College grant income is received. USW and the College work dose￿ with Medf as part of the USW group funding arrangements. Regular qualitative and financial reports are submitted. and thecollege'ssuccess isdepèndentonthisopen and retiprocal relationship. The College a5a company and Charity. also reportsvia Companies House and the Charity commi￿10n. Suppllers Strong relationship with SUP￿leT5 ensures coniinuity of our operations and our ability to serNice our stskeholders to the hi8hest possible standards. Suppliers include supplier5 of product and services across our education. public performance. venue and other commerual 5ervice5. Suppliers are paid falrly within agreed timescales, and we aim to conduct oursefves professionalty and to high standards. We work closely with supplier5 to ensure they have effective controls in place to protect our students. and other stskeholders. health and safety and the security and privacy of their data. Cofflmunltlos and e￿rOnment Wt tofitinuÈ to invest in this arta which is led by our Communitiès Engagement Partner. We've outlined some of the highlights of the past year in settion 6 of this report. 5.3. Ener￿ and Carbon Reporti UK Greenhouse gas emissions and energy use data for the yearto 31 July 2025.. 2024125 2.860.358 2023124 2.520,255 Energy consumption used to calculate emissions Ikwhl ope I: emissions in metrk tonnts C02e Gas con5VrnPtion Own transport Scope 2: emisslons In metric tonnes CO2• Purchased elertricity Scope 3: emi55lons IA metrk tonnes C02e Own transport Business travel in employee-owned vehtcles Total gr05s emlss5ons- PAetric tonnes C02e Intensity ratio-tonnes C02e per student 330 22 300 32 198 252 51 $95 0.75 Qualffication and reportlng methodologv We have followed the 2019 HM Government Environmental Reporting guidelines. We have also used the GHG Reporting Prot(￿01 Corporate Standard and have used the 2020 UK Governmenys CON￿r$I0n factors for Company Reporting. knv4WekhWey ol kth*wl Yw•ided 31 jv￿202$ is Intensity rneasyremeni The chosen intensity measurement 15 a calculation of a Tath) of total gross emissions in metric tonnes Co2e per student, the recommènded KPI for the settor. Measures taken to Improve energy effidenry All the College's ele¢tricity is sourced from green renewable sourtts and all lighting at North Aoad and Llanishen is IED. with the exception of infrequently used Store and plantr00rn5- these will be replaced when life-expired. Further work to convert lighting to LED in studios and communal spaces has been undertaken at the Old Library. Phase I refurbishment works planned for 2025126 at the Old Library will include various decartjonisation meas¢Jres including insulation. double glazing. LED lighting and irnproved ventilation. Since 2021 the College has been rep￿Cing our fleet ¢f diesel fuel vehicles with hybrid versions. along with reducing the size of our fleet overall. The 198Kw solar panel array installed on OUT North Road campus roof in 2022. generated 195 Mwh in 2024125. For 2024125. the array prodU￿d 115 of the total electricity consumed at the North Road 5tte. Working Wlth the Welsh Government Enew Seriice we conttnue to identify ar+d undertake remedial works, where possible and affordable, to improve insulation and reduce heat loss through the fabric of the buildin8. The College is wothng to improve capturing and reporting of carbon production from its activities. 5.4. Prln¢lpal risks and uncertalntl The College has identified a number of h18k￿level Strate￿.C risks that it monitors on a regular basis. These include.. Flnanclal health olthe se(lor As rèferenced a￿Ve. and eailier in the Chairfs Report. the external Higher Education environment continues to be challenging. The tuition fee cap in Wales ￿11 finally increase from £9.000 to E9,S3S in September 2025. Whilst thi5 is a wekome step for UK fvll-time undergraduate course fees. university finances, across the UK. remain difficult as all parties grapple with the cost and pension inflation which ha5 outstripped thè tapped fees for over a decade. An additional f?ctor for Welsh colle8es and unNersities is that fewer and fewer Welsh Students are choosing unNersity post 18 and so participation rates in Wales continue to decline. To mana8e these challenges and rnitlgate the impact of these risk5, the Board and Senior Management Team have taken pro-actfve steps io wotect reseThes in the short to medium term with £l.Sm cost savings delivered during 2024125. A dedicated project team ￿MaInS in place as we develop and implement longer term plans to drive financial sustainability. The atm is to simultaneously create a framework to cyt Costs but also to create a platform to adapt to cornpetrti￿ and future focused ways of working by investing in infrastrLKture Iphy5ical and di8itall and adaptingthe way5 in whith we learn, te8¢h and work. Recruitment and rètentlon of students The Colle8e's Strategic plan target5 modest annual growth in its current level of undergraduate and postgraduate student nUrn￿r$ and overseas students while ensuring the quality of students remains high. The ColleBe has flexible detailed actions together wrth a system of enhanced partnerships and an investment Strate￿ to support these plans. Strong controls are in place which include direct oversight by the Executrve and close working and alignments of academic and recruitment team5. The Board provide$ appropriate support and challenge for this work. Q)lrye oiW5k*rxaM•LYi*td I WTharKi*StaieffjeNSand•thn￿ Ythverthd JI ￿¥1025 16 Fvndraislng Fundraising support from trusts and foundations. publicfunders, businesses. and individuals Continues to be essential to offering our student5di5tinclive training and public performance opportunities. This support also ensures that. through scholarshsps and bursaries. young artists tan more easi￿ afford the cost of accessing a world class education to develop their creative talent and are not excluded from the opportunit¢es the College offers them. In a highly competitive and challengtng funding environmeni. the work of the newly established Advancernent Team is ever MO￿ crucial to the College and, while the generosity of Ouf 5UPPOrter5 has resulted in another positive year, it is clear that there remains risk attached to the future targets that have been set. Income generation As reported lastyear. our incomefrom commercial activitiescontinuestogrow stèadily-underpinned by our loyal customer base and new audiences that contribute to stfong box-office tickei sales, a packed facility hire and events programme and a Very busy Catering and bar operation. Our commercial income sireams are proierted to continue to grow in fvture years. 5.5. Oirectors Rewt Dlrectors The Directors who served during the year are set out in Seth"on 3 of these financial statements. 5.6. Dlvidends Thè Directors do not recommend the payment of a dividend in respect of the year ènded 31 July 2025 12024-£nill. 5.7. Golng concern The activSties of the College. iogether with the factors likety to affect its future development and perforrnance are set out in the Trustees. ￿pOrt Iwhich includes the Strategic Report}. The financial position of the College, its cashflow. liquidity and borrowing$ are presented in the Financial Ststemènts and aceompanying notes to the accounts. The Directors have revwed the College's cash fiow forecasts for a period in excess of twelve months from the date of approval ofthese financial statement5 (the 8oing ¢oncem asse$5ment period). After reviewing these forecasts, includin8 cornpliance with current banking covenants and considering whether there are any material uncertainties. the Board are of the 0￿"n10n that. taking account plausible downsides which reflect the ri5k5 and uncertaintie5 described in this Trustees report and specifically in sertitsn 4.4, the College will have sufficient fijrhds, to meet its liabilities as they fall due over the perKJd T￿lewed. Accorthngly, the financial stsiements have been prepared on a 80ing concern basis. RtyaWeL%h Collwol Musk IndOrarnaLkY*d l Fw<1¥￿31￿rntTrts4￿dJjwv￿fithknl Y•arthd00311￿ 2025 17 S.8. Statement of Corporatè G¢wemance and Internal Control Commitmentto Besi Prolli¢e In GoVerna￿e The College strives for goveman¢e to be undertaken tn an open and accountable manner and a*ms to comply with best practice withtn the higher edLtcation sector. This summary describes how the relevant printiples of corp)rate governance are applied to the Colle8è. The 8oard of Directors of RWCMO 15 responsible to the 8oard of Governors of the University of South Wales which is the sole 'memberf ol the College. The ¢ornmittees of the Board of Governors of the University art a5 committee5 for the Boards of Directors of the College except insofar as the College has its own arrangernents. The Board of Director5 carries the overall responsibility for ensurin8 there is a sound systern of risk management, control and governan￿. The direttors discharge thi5 respon5ibllity through.. £ffe¢tive review by the College Boafd and felevant UnNersity of South Wales commlttees (including intemal and external audit function). Effective scrutiny of financial performance includin8 review and approval of l)udBets and re8ular review and monitoring of management account5 throughout the year. Control systems which include policies, objectives and plans. management of key risks and opportunities, monitoring of financial and operational performance, physit31 safeguarding of assets, segregation of d￿les. authorssation and approval procedures. and information Sy￿ems. The identification and manasemtrnt of risk embedded in 311 business operations and systems. Adherence to the Committee of University Chair5 Code of Governan¢e. The College's approach for the effective managemeni of rtsk is set out below: A focus on the active management of risk as an integral part of the management proces5 Wlthin every part of the organisatyon. Cleady identifying risks tsf various kinds to thè athievement of its objertives. Thèse risks may be strategic or operatsonal and may present potential implications for the College's reputation, Its financial position or its day-to.day operations or any combination thereof. Aciively encoura8irtg all managers to consider risk implications of each major decision. contract or project as a normal part of their day.tO-day work. Integrating risk rnana8ement into the annual planning process which is how the ExewI￿e determine and co-ordinate the College's activities. The Prin¢ipal and the Senior Leadership Team endeavour to identify and focus ￿ immediate and transient risks with str3te8ic implications. which may change from wtek to week, as well as on the more substantial and permanent risk5 which are identified in the Colleie's risk re8i5ter. Managers are expected to link risk identificaiion to aaion. whether in mitigation of the risk or in response to it. The Principal and the Senior Leadership Team work with the Col￿ge Ma￿a￿TS and their teams to encourage and support effective risk mana8ement as part of the day-to-day management of the institution. and specificalty to help them to identrfy, evaluate, manage and report fisks. The risk re815ter identif￿$ significant risks and contains detai15 Of.. the nature of the risk and its poteniial impaa the likelihood of the risk ¢rystrllisin8 the 'ownerf of the risk the control processe5 which mana8e the risk USW through its Audit Committee agree an annual programme of audit wtyk to be carried out acr05S the group by its internal aLtditors. The approach to Internal control is risk based.. this RwlWetshCdlryevlMusicaryJOrwM LhrAtEd l V&Awendtd 31 ju￿2029 includes busine$5, operational and compliance risks as well as financial risk. The College Board Teceives copies of the minutes of all USW Audit Committee meeting5. The University of South Wales. Audit Committee reg¢Jlarly reviews the adequacy ofthe process of risk management at the Q>lle8e as it continues to be developed. The 8oard is of the view that there 15 an ongoin8 PrO￿s5 for identifyin8, evaluating and managing the College's significant risks. Ihat it has been in place for the year ended 31 July 2025 and in placè up to the date of approval of the Financial Statements and Annual Review, that it is regularly reviewed by the Board and that it accords with the internal control guidance for directors on the UK Corporate Govemancè Code as amended by the Brit15h Unsversilies Finance Direttors Group. Board ol Directors ar￿ Its sub commlttees The Board of Directors met fr¥e timesdurin8the reporting year. In ternis of auditarrangèments, whi15t separate College Audit Committee ha5 not been established for the Collègè, all audit reF4)rt5 and reviews and other ir*formation relating to the College are fomally received by the University of South Wales's Audit C¢)mmittee which normally meet four times per year and acts as ihe Colle8e Boards Audit Committee. In addition the RWCMO Board of Directors. or sma15 groups from the Board, will meet regularly with the Executive to monitor and review inbmiation. includin8 financial perfomiance and planning. relating to the College. The annual report ol the internal avditor5 is considered by the University's Audit Committee who approved the internal audit plan for the year. The College's Board of Director5 receive all papers in respert of the audit plan for the yèar and its subsequent reports and findings. 5.9. Statement of dI￿o￿re ol inform*iM to au{li￿r9 In the case of each Director in office at the date the Direclor5' Report 15 approved, the followlng applies.. so far as the trustee bs aware. there is no relevant audit information of whith the charitable cornpanrfs auditors are unaware- and they have taken all the steps that they oughtto have taken as a Trustee to makethem5efves avmre of any relevant audit information and to establish that the tharitable companVs auditors are aware of that inforniation. S.10. Dlrector< Indernnlties The Company (through the USW Group) had and maintained throughoLrt the financial year Director¢ and Officers. liability insurance in fespert of itself and its Directorf. This wa5 ak50 in force at the date of approval of the annual re¢w)rt and finan¢ial statement5. S.11. Independent Audltors The auditors. Haysmac LLP. were appointed in 2024 and have indicaied their willingness to continue in office, and a resolution concernin8 their reappointment will be proposed ar a future meetin8 of the RWCMD Board. y order of the board W D Callawav /Pmpany 5ecfelary . November 2025 oy4Welth Calele olmusit Dr￿ LwTMttrJ l Staterrthts**1AfifNal Ath*Yvl Yewefided 31h* 2D25 6. Statement of Directors. responslbllltles in respect of the Trustee< Annual Rep¢xl and the financial 5tatemEnts The directors are Ultimate￿ responyble for preparing the Trustees. Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the dirertors to prepare financial statements for ea¢h financlal year. Undei that law they are required to p￿pare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generalty Accepte(l Accounting Practicel, includin8 FRS 102 The Finonciol Reportlng Stondord opplicoble in the UK ondRepublic of Irelond. Under company law the directofs must not approve the financial statements unless they are 5Ot15fied that they give a true and fairview ol the state of affairs of the charitable compary and of the income and expenditure for that period. In preparing these financial statements. the dirertor5 are required to.. select suitable accounting poliaes and then apply them consistently- make judgements and estimates that are reasonable and prudertt," state whether applicable UK Accounting Standards and the Ststemèftt of Recommended Prartice have been followed. subje¢t to any material departures dis¢losed and explained in the financial statement5; a5ses5 the charitable ¢ompanV5 atrm.lity to continue as a going concern. disclosin& a5 applicable, matters related to goin8 concern.. and use the going concern basis of accounting unless they eIt￿r intend to liquidate the Charitable company or to cease operations or have no realistic afternative bul to do so. The directors are responsible for ensuring the Colltge keeps adequate a¢¢ountin8 records that are sufficient to show and explain the charitable companrfs transartions and disclose with reasonable accuracy at any time the financial position of the tharitsble company and enable them to ensure that the financial statements comply with the Companies Act 2LK6. They are responsible for such internal Control as they detemiine is neossary to enable the preparation of financial statÈments that are free from materbal misstatement. whether due to fraud or error. and have 8eneral responsibility for taking such steps a5 are reasonably open to them to safeguard the assets of the charitable company and to pwent and detect Iraud and other irregularities. The directors are responsible for the maintenarbce and integrity of the corporate and financial Information included on the charitable companvs website. LegislatK*n in the VK governing the preparation and di55emination of financial statements may differ from legislation in other lurisdictions. RwalWe14hCol4o of Mustc 5urrnits￿0Anfftj￿Hekkn￿l YÈarended Jlthdy 1025 7. Objerti¥es and activitie5 for the public benefft 7.1. Charftsble Oble¢tlves The College promotes the advancement of educatlon and learning for the public benefit. specihcalty the training of performer5 and others in musio drama. desi8n and theatre, thfovgh the provisbon of advanced courses of instfuction. leading to the award of degrees or other appropriate qualifications. It also provides, maintains and imkyoves performance facilities for the benefit of the local community. Throv8h the provision of high-quèlhty trainift& the Colle8e seeks to produce Braduates who are articulate and innovative in their art fornis and equipped to manage the development of their careers. This provides the music and theatre industries with a highly Skilled workforce, able to represent Wales on the world.stage and make a significant contril)ution to the cultural and artistic life of Wales and beyond. 7.2. Fullllment of Charltable Oblec¢l¥es 8eneficlaries". The College has a higher education student population of 930 students of whom 76% are UK and 23% from oversea5. Those Siudents are the primary benefitiaries rècèiving high-quality trainin8 in a range of performing arts disciplines. Other beneficiaries extend io children and younger students as wel5 as employers and businesses in the creative industries sector which employ a high proportlon of the College's graduate5. The publii attend around 300ticketed public performance5 each year in addition to free con￿rtS and other educational and cuRural actNities in the College. such as exhibitions. master¢la￿e5 and talks. AdmI￿On$ policy: The College seeks io recruit, irrespective of the background. the most able and talented students. as well as those who exhibit eX￿ptiOnal potential. The College's DEIB plan comm￿.. ongoing and active dtalo8ue with students to better understand and respond to their lived experiences to better understand and address student admissiorts. degree awarding inequities and graduate outcomes to diversify student recruitment through community engagement activities in partnership with students, and dr8wing oft spe¢iali5t and industry expertise, to co-create and embed inclusive curriculvm and decolonising principles within qualtty assurance piocesse5 and our learnin8 and teachin& en¥￿irtg all to develop their inclusive pradice. Within its undergraduate pro8rammes demand for pla¢e$ 4$ high and assessment is normally conducted by audttion interview or portlolio submi55KJn. 7.3. Publlc Benefit Statement Development and fundfal%ng". In the final quarter of 2024125 the College establishing its rw Advancement Team. and the appointrnent of its first ever Director of Advan￿Meftt. Thi5 new Advancement team combine5 the formerly distinct Brand and Di8ltal Communication5 Team with the College's DevelopmentTeam and is focussed on deliverin8 an ac¢urate and compelling narrative for the College. securing charitable funding. building influential partnerships. and elevating the College's global profile. IWe*h Mu5i¢artd Oranaibmited I stateff￿1fid Rfvr¥Jl Y¢ar¢ndvJ al￿￿¢2025 li Prior to the above changes. the fomier Development Team led on the College's profe55ional fundraisin8 effort5 for the majority of 2024125. Fundraising focus5ed on three key a￿a$- supporting our students. capital priorities. and key projects- wilh notable successes across each. Supportlng our students- bursarfes and stholarshlp support 2024125 was a particularty signihcant year for the College's bursary scheme. Boosted by the completion of the Colle8e'$ 75th Birthday Appeal yn 2024 and its focus on this vr(al area. the College extended the number of bvrsary recipients by over 20%. Support of either £900 or £l,SCWJ per annum (linked to household incomel was increased from the previous PTOViSiOn of £8CQ or £1.200. A total of 151 undergraduates, those moll in need of financial a55iStance. were grven the gift of opportunity. Our scholarship policy pro¥ides mèans.tested suppDrt for students with protected characteristics, with particular emphasis on ethnic diversity and disability. students in financial need and We15h domiciled students. There are also a limited number of scholarships which are oflered os a means of attractini the most 8ifted and talented students and in orderto achieve balanced cohorts of student5 to enable training in recognised core ertsemble5. The 2024125 academic year saw a total of 383 scholarships awarded to 342 students. ensuring more exceptional taknt ihan ever before from diverse backgrounds across Wales, the UK..and internationally were given the opportunity to develop. expre55 and corttrib￿e their creative voices. 139 ofthese 5cholarship5 were made possible by the generosity of our 5UPPOrters. Capital Prlorflles The Old Library capital ¢ampai8n. to fund the resioratbjn and transfomiation of the College'5 campus in Cardiff5 city centre. ha5 achieved further success for the future. Fundi￿ for the first phase of major reftsrbishment to begin in Auturnn 2025 was enahnced wsth notable commitments of a further £1.5 mlllion from thè Foyle Foundation (bringing their total ¢ontribution to £2ml. and £7fy),OTrJ from thè Welsh Govemment Transforrning Towns Programme. Key Projects A central theme throughout 2024125was'ReachingWiderf. Thanks to support from Theslmon Gib50n Charitable TrLtst and Parkinson's UK. the College launched the'Good Vibrations. f￿e choir, supporting individuals with Parkinson's and their loved ones an inspirin& new and 5UPPOrtive community reaching far beyond rts home at Ihe College. 2024125 has seen continued focus on raisin8 Vital support for outsianding young art15ts across drama and musl notabty through the Cronfa Syr 8ryn Terfel Fund, and the David Rowe-Beddow Shakespeare Prize. Forthe latter. support wa5 affordedto ￿¢0￿nIs1ftg excellence inthe art of speaking Shakespearean verse. an essential elernent of modem drama training. For the former-a celebration of Welsh language and culture - notable engagement and fundraising events were hosted in the UK and North America, Unlocki￿ support for the next generation of outstandin8 voi¢e5 to re￿1Ve residential rnasterclass training and the opportunity for Prize support. More broadly. support fr*r numerous opportunities includin8 crucial financial hardship assistance, the student performance programme. and the holistic student experience have been made p055ible thanks to the generosity of our supporters. Mem￿￿$ of the College's recognition circles - Connect, Chairs, Circle, and The'49 Circle. have been the bedrock of this supporL and over£O.5m was received through 81fts in Wills during 2Q2412S. The College ¢ontfjnue5 to be registered wrth the Fundraising Re8ulator and across all fundiaisin8 the College adheres to The Code of Fundraising Practice. induding the guidance in relation to vulnerable donors. No complaints have been received during the year in relatK*n to fundraisln8. wdshcouoi￿O1m￿￿1rI￿￿lknl￿Thfftd l f￿￿5111Q¢V￿Its1ttd Yearended31h* 1015 12 The College remains deeply grateful to the many indtviduals. charitable tru5t5. bu5ine55e5 and organisations whose kind support continues to make J signifFcant impact enabling the College to transform countless lives through the arts in Wale5 ar￿ beyond. A fvll list of sUPPQrters can be viewed on the College website= htt wM¥.rwcmd.ac.uk su rt.us thank- Widenini Partieipatio Pre-18s Actmty Following the diffjcult decision in July 2024 to close, out of financi31 necesslty, our regular Junior Conservatoire weekend music and drama provishin for under-IBs. wt have driven a strate8lC shift to develop more sustainable models of engagement, while continuing to champion the development of young talent acr055 Wales. The Colle8e remains committed to ensuring that young people with exceptional ability and potential-regardless of their geographic or socio-economic ba¢kground-are supported as part of ihe ¢reatNe industries talent pipelirte. Throughout 2024125. RWCMD has fo¢used on building a new partnership-led approach to support out5tandin8 young talent. Collaborations with Nakn"onal Youth Arts Wale5 INYAWI, the National Muslc Serwce for Wales INMSWI, the Urdd. and Seren have been central to this work. Together, we are mapping development pathway5 into professional trainin& identi￿.nE gaps and strengths. and defrnint where RWCMD can have the most targeted and impactlul role. The College continue5 to 5erye as a convenerand quality reference point wtthin thewider artsecolo8y, offering speualist tuition. mentorship. and a(￿$5 to conservatoire-level experiences. Q4er 2,IXIO vounB people across Wales engaged wrth RWCMD initiatives this year. including.. Immersive Weekend Musit Workshops.. Designed to ir￿pIre participanis from beginners to emer8in8 profesyonal5. National Open Youth Orthestra {NOYOI Cardiff Ensemble Residency.. In partnership wlth B8C NOW and Open Up Music. 5UPPOrtin8 9 auditioned members aged 12-23. with expanded ensemble numbers confirmed for 2025126. Holiday Courses in Production Art5-. Offering hand5-on tr•inin8 and creative exploration. School and Community En8aKernent= Embedded within degree programmes, including partnerships with Making Music Changing Lives (Elyl and the Oasis Centre Isplottl. targeil area5 of deprr¥ation. Cornmunlty Engagement In 2024125. RWCMD deepened its ccKnmrtment to community engagement through a wide ran8e of Inclusive ènd wllaborattve initiatives across Wales and beyond. Thirty residencies supported recent graduates and studertts. helping them develop performance, busine55, and arts mana8ementskills in partnership wrih hosi venues. These included new placements in healthcare settings such as 0.ty Hospice and Velindre Hospital. and regbonal expansions like the jazz ensemble residency at Rhosygilwen in Pembrokeshire. The Music in Country Churches serie5 ¢ontinued to thr¢ve. featurin8 RWCMD priz&winners performing with the English Chamber Orchestra, includin8 Mared Emyr Pugh-Evans, recently appoint￿ Royal Harpist to His Majesty The King. The College launched a Crynmunity Ticketing kherne, offering free access to perfofmances for individuals from underrepresented and disathanta8ed background5. including asylum seeker5, Qtyaiw*WColryeol PAu5ir W￿￿11rni Lmnffed I hnanc￿Stalefiwts•7dknU￿ Rtsiewl YE•fEnda 3JJdv 2025 disabled people. oreoxperien¢ed youth. ond members of the Tempo Time Credit network. Partners included Race Council Cymru and Chinese in Wales. Engagement efforts were also focused on young peopk with Protected Charatteristics. with targeted Open Day5 and wofkshops. for example in Merthyr Tydfil and Abercynon. engaging ethnicalty dlvetse young people and those facing economic and suoal disadvantage. Drama sludents collaborated with The Wallich and The Forget Me Not Café, app￿ing ethical training to deliver creative projects supporting people affected by homelessness and dementia. At the Old Library. RWCMD partne￿d wilh a diverse ranae of cultural organisations to promote inclusive arts programming. These included UCAN Productions Isupportin8 blind and partialfy sighted individuals). Hijinx IdelNering drama and puppetry workshops for leaming-disabled and autistic artists). Ayan Cymru Ihosting Bolwood-themed w0￿$hopS for Asian communitie51, and Kaleidoscope CIC and Ty floots Isupporting Eastern European immigrant communitiesl. The°Wel¢ome to Wales" exhibtlion, led by Pamela Howard OBE, engaged blind and homeless communities and Windrush Elders through ueative writin& braille art. and sculpture, later used a5 a teaching aid for inclusive programming. RVAWehh¢d￿eo1￿uS(cWd(ts￿• P•knl Yearen&d31 th 1025 24 Independent auditoes report to the members of the Royal Welsh College of Music and Drama iimlted Opinion Wè have audited the financial statements of the Royal Welsh College of Music and Orama Limited 1.the charitable companf I for the year ended 31 July 2025 whith comprise the Statement of Compfehensive Income and Expenditure, the Statement of Changes in Reserves, the Balance Sheet. the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accountin8 Stsndards. including Financial Reporting Standard 102 The Finun¢iol Reporting Stondord opplr¢oble in the UK ond Republic of Ireland (United Kingd¢yn Generally Accepted Accounting Prarticel. In our opinion. the financial statements- give a true and f¥irview of the state of the charitable compan15 affairs as at 31 July 2025 and of the charitable ¢ompanWs net movement in funds, including the income and expenditure, for thè year then ended- have been properly prepared in accordance wth United Kingdom Generally Accepted Accounting Practice,- and have been prepared in accordance with the requirements of the Companies Act 2(lJ6. Basis for opi We conducted our audit in accordance with International Standards on AvdTrts"n8 IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are knrther described in the Auditor's responsibilities for the audit of the financial statèments section of our report. We are independent of the charitable company in accordan¢e with the ethical reqsjirements that are relevant to our audit of the financial statements in the UK, induding the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidèncè we have obtained is sufficient and appropriate to provide a basis fof our opinion. co￿lUSIOnS relallry toEolng ¢oncern In #uditin8 the financial statements. we have concluded that the dire¢tOts' Use of the 80in8 concern basis of accounting in the preparation of the financial statements is appropriate. Based CM the work we have ptrfoimed. we have r￿t identified any material un¢ertaintie>rèlating to events or conditions that, Individual￿ or co1￿ctive1V. may ¢ast significant doubt on the charitable ¢ompanKs ability to continue as a 8oin8 concernfor a period of at least twelve months from when the financial statements are authorised for issue. Our respOn￿bilItieS and the resp)nybilitie5 of the direttors with respert to 80in8 concern are described in the relevant sections of this report. Other Inforrnatlon The diiectors are responsible for the other inforniation. The other information comprises the Information included in the TTUStèe5' Report and the Chairfs Report. Our opinion on the financial statements does not coverthe other information and, except to ihe extent otherwise explicitw stated in our report. we do r￿1 express any form of a55uran¢e ¢on¢lusion thereon. In connertb)n with our audit of the financial statements. OLtr responsibility Ès to read the other information and, in doing so. consider whether the other information is materially inconsistent with Ihe financial statementsor our knowledge obtsined in the audit or otherwise appears to be materially al WeIshC￿￿e01￿u**rA Drnma l FhiwdalStst*nents *)d Rev**l YtxtAdÈ*31J*202S misstated. If we identify such material inconsisteftcies or apparent material mi55tatements. we are reqvired to deterrnine whether there is a material misstatement in the financial sratements or material misstatemènt ol the other information. If. based on the work we have perfomied. we conclude that there is a material rnisstatement of this other informat￿n, we are rèquired to report that fact. We have nothing to report in this fegard. Oplnlons on other matter5 prestsibed by the Companies Ad 2006 In our opinion. based on the work undertaken in the co¢Jrse of the audit-. the informat*on gjven in the Trustee5' Report Iwhich includes the strategic repjrt and the dire¢tor5' report prepared lor the purposes of company lawl for the financial year for which Ihe financial Statements are prepared 15 consistent with the financial statements.. and the straiegic report and the direttors. report included within the Tru5tees' Report have been prepared in accordance with applicable legal requirements. Matters on whleh we are requlred to report by extemi¢ In the li8ht of the knowledge and understandin8 of the chafitable company and Its environment obtalned in the cours* of the audit. we have not identified material misstatements in the Tru5tees' Report (which incorporates the Strate￿"C rerA)rt and the dirertors, rep)rtl. We have nothing to report in respert of the followir* matters in relation to which the Companies Act 2Q)6 requires us to report to you if. in our opinion.. adequate accounting records have not been kept by the charitable company.. or the charttable Company financial statements are not in agreement with the ac¢ountin8 fecords and returns: or certain disclosures of direttors, remuneration specIf￿d by law are not made- or we have not received all the infomiation and emp1anat￿nS we require for our audli Responsibililies ol dlrectots for the financial 5Mements As explained more fully rn the directors, responybil1t￿S statement set out on page 19. the trustees (who are also the dirertors of the charitable company for the purposes of company lawl are responsible for the preparaiion of the financial statemenis and for being satisfied that theygive a true and fair view. and for Such internal control as thtr dirertOTS determine is necessary to enable the preparation of financial statements that are free from material misststement whether due to fraud or error. In preparing the financial statements. the dirertors are responsible for assessing the charitable companrf5 ability to continue as a gorng concern. disclosin& as applicable. matters related to going oncern and usin8 the going concern basi5 of accounting unles5 the dirertors erther interKI to liquidate the charitable company or to cease operations. or have no realistic alternatrve but to do so. Audltorfs responsibilitbes for the auditol the finandal statements Our objertives are to obtain reasonable assurance atojt whether the finanaal statements as a whole are free frorn material misstatèment, whether due to fraud or error, and to 1S5ue an auditorf5 report that includes our opinion. Reasonable assurance is a high level of assurance. bLrt is not a guarantee that an audittondu¢ted in a¢¢ordance with ISA5{UKI will alway5 detect a material mi55tatement when it exists. Mi55tatements can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users iaken on the basis of these financial Statements. Irregularities, including fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our re5ponsibililies. outlined above, to detect material misstatements in Wthhc•l￿e0I h*Js*and Dr4rn• Re¥*v*l y￿re￿￿e0 JI luty2015 respect of Irregularit￿$. including fraud. The extent to which our procedures are capable of detectin8 irregularities. including fraud is detailed below: Based on our understandin8 of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and reeulations reLited to compliance with tompary law and charitable law applicable to chariiable companies in England and Wales, we considered the extent to which non-compliance might have a material effect on the financial ststemenis. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Further and Higher Education SORP 2019, Companies Act 2006. the Charities Act 2011. taxation legislation and pensions legislation. We evaluated managemenY5 incentivesand opportunitiesft>r fraudulent manipulation of the financial ststement5 lincluding the risk of override of contro151. and determined that the principal risks were related to the improper cut-off of ￿venUe other than thai from student fees and management override of controls. Audit procedures performed by the engagement team included: Inspecting correspjndence with regulators and tax authorities- Discussions with management including consideration of known or suspected instance5 Of non-compliance with laws and regulation and fraud- Evaluatin8 mana8emenYs controts desydned to prevent and detect irregularities: Ident4fyin8 and testing joumals, in particular ioumal entries posted with unusual account combinations, Poslings by unusual users or with unusual descriptions: and Challengin8 assumptions and judgements made by management in their accounting estimaies Because of the Inhe￿nt limilations of an audit, Ihere is a risk that we will not detect all irregularities, including those leading to a material misstaiemeni in the financial statements or non-compliance with regulation_ This risk increases the more that compliance with a law or regulation is ￿moVed from the events and transactions refiected in the financial statements. as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurriftg due to fraud rather than error. as fraud invofves intentional concealment, forgery, collusion. omission or MIsrep￿sentatlon. A fvrther description of ow reswnsibilities for the a￿lIt of the financial statements is focated on the Financial Reporting Counciys webstte at: w¥Yw.frc.o auditors onsibilitie5. This description forms part of our auditorfs report. Use of our report This report is made solely to the charitsble company's member5. as a boty. in accordance with Chapter 3 of Part 16 of the Companies Att 2CK)6. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to State to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not attept or assume responsibility to anyone other than the charitable company and the charitable company'5 members, as a body. for our audit work. for this report, or for the opinions we have fomied. Steve Harper (Sell￿r Statutory Auditorl For and on bèhalf ol Haysmac LLP. Stalutory Auditor Dated: 15 November 2025 10 Queen Sireet Place London EC4R IAG Aoyal Wdsh C¢4*etof M￿￿ca￿￿ OThmoiknknl l Fwol StaIw￿￿￿dAnrWjaI￿￿I￿￿I Year¥thd3LJuty2015 27 Royal We15h College of Muslc and Drama Limited Statement of coMp￿hen$1ve Inwne •nd ExpeTrditiwe .for the Year Ended 31 July 1025 Z025 £'ooo 2024 £'o Income Tuition lees and educat￿n contracts Fundin8 body 8rants Other iocome Investment in¢orne 11.769 4,453 2.415 437 10.728 4.277 2,333 Total In¢ome before donatkbns and endoWffl￿ts 19.144 17,784 Donations and endowments ¥997 4.392 Total Income 21,141 22,176 Expendltswe Staff cost5 Other operating expenses Depreciation Interest and otherfinance tosts 8,505 9,573 1.008 Z81 9,573 8,883 1,269 342 li Toial expen44wr* 19,367 20.067 Surpkn5 btfor* oth•r8alns and loss 1.774 2.109 Gain on disposal orr￿ed a5set5 Gain on investments 17 185 259 Surplu5 tvthe yeaF 1.958 Actyarlal Ilossl In rÈspeci of pefiS￿n schernes 24 1411 Tot•1 ctynprehtnsivt In¢(*n¢l1expendl￿rel lor the tlepresented by:. Endowment cornprehen51Vt ittome Restricted comprehensNe intome for the year Unrestricted cornprehensive lexpensell income for the year L901 327 17 562 146 1.192 355 3,065 11,0931 1.901 327 All items of income and eXpenrfrtU￿ relate io cmtinwng activit￿5. R￿￿1 Welsh Col*e ofM¢J5Kand Dramo Lvnrted st•1•￿¥¢01(￿Ir1O$1nft￿¢V4eS l•rth¢Yeaf efided31Jutyt2025 A•¥414a Tpl•l ihire5trKted 4,416 8.77Z 1.819 17,418 swpluslloeficillfart￿YQ¥ OthtrcornptEho￿s￿t irtttsri* 355 11.OS21 2.368 8alarteat 2024 4.781 7.679 L119 l9,745 4711 1.119 19.745 s￿4￿/(Defi¢ll1tr ye¥ OthErcornprehenSTrRI￿0 S61 ijsi 5,612 zi.M6 Royal Welsh College of Music and Drama Limited Oalance Sheel as at 31 July 2025 (Company Re2istratlon: 06013744) Notes 2025 2024 £'o Non-curfent assets Tangrble assets Herita8e assets Other li li 24A78 24.796 500 135 25,431 135 25.113 urrent a$5ets Stock Trade and other ￿¢eNable$ Investments Cash and tash equivalents 16 779 14 629 8.109 1,832 10,584 12 13 19 12.495 Creditors: amounts fallir4 due within one year Net current assets 14 13.8861 14.1831 6,401 Total assets l•ss current Ilabllties 33.n2 31.832 Creditors.. amounts falling due aftef more than year Provlslons Other Provlsicffi5 Total net assets 15 IIL9191 111,9151 16 11561 21.647 11711 19.746 Restrirted Re5er¥es Income and expenditwe reserve- end¢)wment reseNe Income and expenditure re5erve- restritted reser¥e Unrestricted R•$er¥•s Income antt expenditure rese￿e- unr*5tricted ReValuat￿n reserve 17 18 5J43 5.612 4,781 5.466 72 7,679 1.819 19.745 1.819 2L646 Share Capital Total R*seMs 21,647 19,746 The financial llatements on pages 28 to 49 were approved and authorisÈd for issue by the Board on ovember 2025 and S￿ne￿ on its bthaff ty:. Mt(ha•l Playt OBE Chalr of •oard of Trustees 30 Royal Wd5hcrJ￿￿•lMU$Ic1fid Lmnit cashFknw5t*•ryieAt ioith•y•xvhd*43xJ¥ty202S 2D24 L269 17 linc￿1$el1de¢r1•1ékndQb1 jin¢r&èselldt¢rt•seh)stook U50J n49J LGPS p￿￿￿￿<￿ts1*55 p7 C•urir4rrthico 11931 ifitEFExwèble 3•5 pkn•meni knknyestffjenis li Il2391 ILQIO) Interes¢ Ertdty47meni 5Korne iys) ￿￿￿2•n¥￿te￿￿ed B17 lJ115 l.S32 817 Ill￿1015 0￿1 due￿I￿n(￿le¥tx Debtduewithin 15.1771 15J*3 Royal Welsh College of Music and Drama Limited FinarKial Statements and Annual Review Year ended 31 july 2025 Notes to the finan¢i•l statements the year ended 31 July 2025 1 gèsi5 of Preparation The Company 15 a United Kin8dom private company limited by shares. It is both incorporated and domiciled in England and Wales. The registeretl office address iscastle Grounds. Cathays Park, Cardiff, CFIO 3ER. The Company is also registered as a charity with the Charity Commi55ion under re8i5tered charity number 1139282. It 15 a subsidiary company of the University of south Wales which is its sole member. The financial statements have been prepared on a going concern basis under the historical cost Convention, modified by the rev•luation of rÈrtain financial assets and liabilities at fair value. in accordance wrth the Companie5 Act 2006, as adapted to the Statement of Recommended Practice ISORPI= Actourtting for Further and Higher Education 2019 and irt a¢¢ordance with the Financial Reporting Standards. The College 15 ¥ public benefit entity and therefore has applied the relevant public benefii requirement of FR5102. the financial reporting standard applicable in the UK and Republic of Ireland IFRS 1021. The principal ac¢ounling policies I￿ set out below and have been applied consistently throu8hout the year. GolnE Concern The actbvities. of the College, together with the factors likely to affect its future devèlopment and performance are Set out in thè Tmstees, report (which includes the Strategic Reportl. The financial position of the Colle8e, its cashflow, liquidity and borrowings are presented in the Financial Statements and accompanying notes to the accounts. The Dirertors have rev*wed the College's cash flow forecasts ts a period of at leart twelve months from the date of approval of these financial statements Ithe Boin8 concern assessment period). After reviewing these forecasts. including compliance with CLtrrent banking covenants and considerlng whether thtrt are any maieiial uncertaInt￿S. thè Board are of the opinion that, taktn8 accourit plausible downsides which reflect the risk5 and ur*certainties described in this Trustees report and spe¢ifi¢ally in section 4.4. the College will have sufficient funds. to meet its liabilities as they fall due over the period reviewed. Accordingly, the financial 5tstement5 have been prepared on a going concern basis. 32 Royal We15h College of Music and Drama Limited Financral Statements and Annual Review Year ended 31 July 2025 Notes to the financial statements for th¢ ytar ended 31 July 2025 2 Accounting policies Incame recognition Income from iuition fees is recognised overthe period in which ttudents are studying and inclvde5 all fees chaf8eable to students or their sponwrs. Where the amount of the tLtition lee is reduced by a discount for prompt payment, in¢ome receivable is shown net of any discount. Income from the sale5 of goods and seThTrces is credited to the Statement of Cofnprehen5ive Income and Expenditure when the goods or seNices are supplied to the ertemal custorners or the terms of the contract have been sat15fied. Investment income is credited to the income and expendilure account on a feceivable basis. Grant Fundlng Government grants, includingfvnding ¢oun¢il block grant, are re¢ognised in income over the periods in which the College reco8nise5 the related cost5 for which the grant is intended to compensate. Where part ol a government Brant is deferred, it is recognised as deferred income wtthin creditors and allocated between creditors due wilhin one year aThd due after more than one year a5 appropriate. Donatlons and Endowments Donattons and endowments with.donor imposed re5trirtions are recognisèd in incornè when the College is entitled to the funds. Income is retained within the restricted reserve until such trme that rt is utilised in line with such restrictions. Oonatiorts with no rèstrictions are retognised in income when the College is entitled to the funds. Investment income and apprttiation of endowments is recorded in income in the year in which it arisès and as either restricted or ynrestricted tncome according to the term5 applied to the individual erbdowment fund. The main types of donations and endowments ithntified within reserves are.. l. Restricted donations- the donor ha5 specrfied that the donation must be used for a particular objective 2. Unrestricted permanent endowments the donor has specified that the Fund 15 to be permanently invested to genèrate an income stream forthe general benefrt of the College 3. Restritted permanent endowments - the donor has specified that the fund is be permanentty invested to generate an income stream to be applied to a particular objective 4. Unrestritted donations-thè donor has not specified condtftrons associated with the donation Capital grants Government capital grants are recognised in income over the expected useful life of the asset under the accruals method. Other capital grants are reeognised in income when the College is entitled to the funds subject to any performance conditions being met. 33 Royal Welsh ColleEe of Mu5FC and Drama Limited Financial Statements and Annual Revlew Year ended 31 july 2025 Notes to the financial statements for the year ended 31 July 2025 2 Acc￿￿nting policies Icontinuedl Accounting for retirement ￿nefft5 The Iwo principal pension schemes for the College's staff are the Teacher5, Penyon Scheme IYP5-1 and Rhondda Cynon Taff Pension Fund I-RCTPF-I. a Local Government Pension Scheme I"LGPS"I. RCTPF FS a defined benefit scheme which is externally funded. TPS is a multi-employer scheme. and it 15 not possible to identify each institution's share of the nderlying liabilitie5 in relation to the TPS and hence. contributions to the scheme are accounted for as if this wa5 a delined contributioll scheme. any cost recognised within the income statemènt being equal to the contributions payable to the xheme for the period. Llnder IAS 19. the College considefs the recoverability of any pension surplus and determines if there is any economic benefit avarIa￿e to the company to enable the re¢ovÈry of this. Where the College believes there is no economic benefit. this surplus is not wognised as a recoverable asset. Employment Beneflts Short term employment benefrt such a5 Salaries and ¢ompensated absen¢e5 are rerognised a5 an expense in the year in which the employees render service to the College. Any unused benefits are accrued and measured as the additional amount the College expects to pay as a result of the unused entitlement. Where the cakulation results in a net asset. recognition is limited to the extent to which the College is able to recovef the surplus either through ￿d￿Ced Contributions In the future or through refunds. Earl¥ Retirement Provislon The Company maintains 8 provision to meet pension ¢osts arising from the additional years of seNice granted to certain staff takin8 early retirement. Provisions are established and the a550ciated costs are charged to the Fncome and expenditure account when the College has a legal or constructive obligation. The provision relate5 to enhanced teachers. unfunfled pension arrangements established by the College. These are termination benefits made on a discretionary basis upon early fetirement. in respect of the Teathers Pension Scheme. Operatlng Leases Costs in respect of operating leases a￿ charged on a straight-line basis over the lease term. Any lease premiums or incentives are spread over the minimum lease term. T•niible Fixed Assets Tangible fixed assets are initially recorded at purchasecost. including non-recoverable VAT, incidental osts of acquisition. less accumulated depreciation. Depreciation is provided on all tangible fixed assets ot rates taltulated to write off the cost, less estirnated residual value of each asset, evefi￿ over 115 expected useful life. as stated below. Depreciation is charged lor a full year within the year that the asset becomes available for use. 34 Royal Welsh Collegp of Music and Orama Limited Financial Statements and Annual Review Year ended 31 july 2025 Notes to the Itnanclal statements for the year ended 31 July 2025 2 Accounting policies {contin￿dI All fixed 355et5 are ￿vIewed lor indicators of impairment at èach balance sheet date. land and bulldings Land and buildings inherited from Royal Welsh College of Music and Drama Higher Education Corporation are stated in the balance Sheet at their net book value on transfer. As at l Augu5t2014 a55et INès were reassessed and revised depreciation fates applied to the net book value 3$ at that date. The original Raymond Edwards buildinÉ is being depre¢iated over 35 years. with the additlDnal facilities being deprecbated over 50 year5. which is the expected remaining useful economic life. Land was revalued to fair value on l August 2014, the date of transition to the 2015 Further and Higher Educati(>n SORP. resulting in a revaluation reserye of £I.819.{￿o. Land. whether freehold or leasehold, is not depreciated as It 15 considered to have an indefinite useful life. Lon8 leasehold buildings are depreciated over the Shorter of lèa5È term and expected useful life. Buildings under construction are capiialised at cost. Interest on loans used to fund capital projects is capitalised until such projects are brought into use. No depreciation is charged. until the year in which bvilding5 undtr constructK)n are brought Fnto use. Fixtures. littin8s and plant and mathlnery Equiprnent costing less than de minimis of £l,OLK) per individual item. is recognised as expenditure. All other equipment is caprtalised. Capitalised equipment is stated at cost. including non-recoverable VAT. and is depreciated over its expected useful life, as follows- Category of a55et Fixtures and fittings Plant and machinery Depreciation rate 7 years straight line Between 3-10 years straight line Heritage Assets Heritage assets are tangible assets with an historical, artistic. scientific. technological, geophysical or environmental quality ihat are held and maintained principally for their ¢onrribLrfion to knowledge and culture. Heritage assets are those assets that are intended to be preserved in trust for future gènerations because of their cultural. environmental and historical a$s￿14t10n$. Heritage assets acquired since College formation have been ¢apitalise(f to the balance sheet at initial cost. Donated heritage assets are recorded at estimated valuation at the date of donation unless this 45 not practicable, in which case the appropriaie disclosures are made of the nature and the extent of these donations. In subsequent periods, Heritage assets are held at cost less any identified impairment. Information on the valuation of Heritage assets is set out in note 11. 35 Royal We15h College of Music and Drama Limited Fsnancial Statements and Annual Review Year ended 31 July 2025 Notes to the financial statements for the year ended 31 July 2025 2 A¢¢ountlng pollcies Icontinuedl Investments Investments are held at fair value with movèments recognised in income and expenditure. Cash Cash includes cash in hand and cash equivalents. Cash equivalents are short term, highly liquid investments that are readily convertible to known amount5 of cash with insignificant risk of change in value. Taxation The College is a charity registered with the Charity Commission number 1139282 and a5 such is a charity within the meaning of Para l of Schedule 6 to the Finance Act 2010. Accordingly, the College is potentially exempt from taxation in respect of income or capital gains ￿ceiVed within categories overed by Sections 478 to 488 01 the Corporation Taxes Act 2010 I￿A 20101 Ifomierly enacted in Section 505 of the Income and Corporation Taxe5 Act 1988 IicfAI or Sertion 256 Of the Taxation of Chargeable Gains Act 1992 to the extent that such income or Bains are applied to exclu5ivelv charitable PUfpose5. The College receives no similar exemption in respect of Value Added Tax. Loans Loans received that either do not a¢crne interest or where interest is charged at ￿sS than a market rate are considered public benefit entity concessionary loans. These loans are re¢ogn4sed initially at the amount of cash received and are subsequently adjusted to rèflert accrued inte￿t payable. ReseNes Reserve$ are classified as Restrirted Of Unrestricted. Restrirted endowment reserves include balance5 which, through endowment to the College. are held as a permanently restricted fLtnd which the College must hold in perpetuity. Other rèstricted resèrves include balances where the donor has designated a specrfic purpose and the College is restricted in the use of these fund5. Use of estimates and judgemefits The preparation of Finantial Statements requires management to make judgements. estimates and assumption5 that affect the application of accounting policie5 and the reported amount ol assets, liabilrties. income and expenses. Actual amount5 may differ from the estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which thÈ ÈstimatÈ is rÈvisÈd and in any luture periods affected. 36 Royal Welsh College ol Music and Drama knmited Notes to the financlal statements for the year ènded 31 July 2025 2025 2024 £'ooo Tuition Fees and Education Contrncts Notes Full.time home students Full-time international students Short Course Feès 6.S87 5,182 6.301 3.906 521 10.728 11.769 2025 2024 Funding Body Grants Medr Iprewousty Higher Educatron Funding Council) Amortisation of Deferred Capital 8rant 4,183 270 4,453 3,984 293 4,277 2025 £'o)o 2024 Other Incorne Caterin8 Rental income Other income 828 131 1.374 2.333 22 1.715 2,485 Included in other income is box office Iticketingl and venue hire income 20Z5 2024 £'cwJo Investment Income Investment incorne on endowments Other investment income 17 iio 327 437 117 329 446 2025 2024 Donation5 and endowments Erthwment income Inèw endowments) Donations with restrictions Unrestricted donations 17 33 3.724 635 4,392 18 970 643 1.997 37 Royal Welsh College of Music and Drama ￿rnited Notes tothe financlal Mateffler lor the yearended 31 July2025 8 StallCost5 2025 £'oc 6.435 679 2024 Sraffc05t5 Salaries cial security costs Other pensi￿ costs Total 7.465 1.391 8.505 1.423 9.573 Included in other pension cosis are É1.098k12014.. É1.052*1 FordefiwlcoThtritrwDM schemes. Staff costs above inclthle red￿ndancy(0sts of £nil12024_" £415kl. Further to the amounrs shown abo￿. the Collegewas char8ed U,727k12024.. £16l5klforserwice5 provided by PS5. These costs ore reported In other operating expenses in the St3temenT of Comprehensi¥e irteme and Emptnditure. "Profe￿O￿OICA￿￿lPPWtsf￿¥￿eS LtiTrNted{"P55"J if tswfvthowntdsubs￿of theUnibefSptyoISovth Wglts on4lpryi olessionoltsndsupportseryices toRWCMO. Remunentlon of dlrertars and hI￿erPaId4Mp￿VttS 141 Directors and hi8her paid employee5'. salary Benefits Pension contributiuns to IGPS 2025 E'OOO 321 2024 320 59 383 57 zo 2024 £'DJo 170 Ibl Ernaluments ofthe Pnncipal.. Salary Benefits .Pènsion contr1￿￿on$t9 LGPS 173 29 202 205 Remuheration of the Prihthpa olthe col1egeexp￿Sed • Basic salary as a multirAÉ of the rnedian basK salaryol all #aff Total rernuneration as a rnultiple of the med*n total rernuntrntitim io aN 2025 2024 4.21 3.77 Remuneration of hr6herpaid staff ¢ex