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2024-08-31-accounts

Charity registration number 1166152 (England and Wales) Company registration number 03293892

THEATRICAL EDUCATIONAL SERVICES LIMITED ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2024

THEATRICAL EDUCATIONAL SERVICES LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees A W Jeckells A Chevannes S Mehmet (Appointed 21 March 2024) Secretary Havercroft Nominees Limited Charity number (England and Wales) 1166152 Company number 03293892 Registered office 83 Borough Road Southwark London SE1 1DN Independent examiner John Pudduck FCCA Martlet House E1, Yeoman Gate Yeoman Way Worthing West Sussex BN13 3QZ

THEATRICAL EDUCATIONAL SERVICES LIMITED

CONTENTS

Page
Trustees' report 1 - 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 18

THEATRICAL EDUCATIONAL SERVICES LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE PERIOD ENDED 31 AUGUST 2024

The Trustees present their report and independently examined financial statements for the period from 1 January 2024 to 31 August 2024.

Reference and administrative information set out on page one forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). For the period ending 31 August 2024, the company was entitled to exemption from audit under section 477 of the companies act relating to small companies.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The Advancement of Education and training in Musical Theatre Performance; and the advancement of the arts particularly but not exclusively in the medium of musical theatre.

Public Benefit

The Trustees are aware of the Charity Commission guidance regarding public benefit, and confirm that they have complied with the duty in section 4 of the charities act 2011 to have due regard to it. They consider that the information which follows in this annual report, about the organisation's aims, activities and achievements demonstrates public benefit in relation to the delivery of the objects of the company.

Structure, governance and management

The school was established as a full time training establishment in January 1995 and incorporated as a Company Limited by Guarantee on 18 December 1996. On 30 October 2007 the company changed its name from London School of Musical Theatre Limited to Theatrical Education Services Limited, with the former name retained as a trading designation. The Company was registered as a Charity on 21 March 2016.

The trustees, who are also the directors for the purpose of company law, and who served during the period and up to the date of signature of the financial statements were:

A W Jeckells J R Ronane (Resigned 21 May 2024) A Chevannes S Mehmet (Appointed 21 March 2024)

In accordance with the Articles of Association, a Trustee shall hold office indefinitely unless they resign, are removed or are disqualified. The Trustees have been appointed with due consideration to their background and experience, in respect to delivering the objects of the company.

Adrian Jeckells is both a Trustee and an employee of the company in the capacity of Principal. All other Trustees give their time voluntarily and receive no benefits from the charity. There must be at least three Trustees and no more than six, at any one time.

Sibel Mehmet was appointed as a trustee on 21st March 2024, and Jessica Ronane stepped down from the position on 21st May 2024.

THEATRICAL EDUCATIONAL SERVICES LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2024

Meetings of the Board of Trustees

The Trustees meet at regular intervals throughout the year, depending on the importance of matters to be discussed, and such meetings are run in accordance with the Articles of Association.

Financial management

Where appropriate, systems or procedures have been established to mitigate the risk the charity faces. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions, and projects. Finance management is closely monitored with a Finance Manager being employed by the charity. Accounts are regularly prepared for inspection and discussion by the Trustees upon the calling of a Board Meeting.

Key Staff

London School of Musical Theatre employs three staff to administer the course; The Principal (Full-time), Course Manager (Part-time) and Finance Manager (Part-time). All artistic/teaching staff are engaged on a freelance basis in line with their self-employed tax status. Specialist freelance theatre practitioners are also engaged for advancement of the arts, through delivery of the theatre based production, such as Stage Manager, Set Designer, Costume Designer and Sound technician.

Achievements and performance

The student cohort who had commenced their training in September 2023, completed their course in the period of this report. There were 37 graduating students in July 2024 and 29 secured agents, through the LSMT wellestablished placement process, whereby the organisation arranges individual auditions with a considerable number of well- regarded agents. In addition, three more graduates were placed by the Principal with an agent through industry contacts, post-graduation.

Since leaving the LSMT training many alumni have already secured high-calibre professional work: Aaliya Mai was cast in the leading role of Max in Come Alive, in London. Maise Waller joined the West End Cast of Mamma Mia - Ensemble and cover Sophie.

Five other graduates appeared in Pantomimes around the country in December 2024.

The school is able to provide training that enables access for our alumni into the profession, and the ability to deliver a high standard of performance of the required skills, once engaged in a production.

Theatre Production/Public Presentation

Consistent with the advancement of the arts object of the charity, for six weeks each year Theatrical Educational Services Limited, operates as a theatre production company.

The public are invited, through suitable marketing, to watch unique and inspiring presentations, in a wellestablished theatre venue.

In the period of this report, the organisation presented a unique rendition of the Stephen Sondheim piece, Sweeney Todd. The production was presented at The Bridewell Theatre, and benefited from high production values, including excellent sound and lighting design. The creative minds behind this presentation included director Graham Hubbard who had worked on Sweeney Todd in the West End and on Broadway and is particularly adept in his vision and understanding of Sondheim's most symphonic and epic show. The presentation was a reimagined version of the piece, which resulted in a high level of interest from the public, and members of the theatre industry.

The dark fascination in this gory tale brought strong public attendance figures, and acclaim from several independent reviewers:

'Many’s the tales of Sweeney Todd I’ve attended, from a pie shop in Tooting to the luxury casting of Imelda Staunton and Michael Ball in the West End, to the gory splendour of the Châtelet in Paris, one I wish I hadn’t bothered with in Reims and countless more, but none has caught the raw, visceral intensity or macabre wit of Stephen Sondheim’s masterpiece better than this stunning version.' (Jeremy Chapman - Musical Theatre Review).

THEATRICAL EDUCATIONAL SERVICES LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2024

Student Funding Support

There were thirty-seven students on the course ending in July 2024, and the fees were £16,750.

The Trustees understand that LSMT must operate for the public benefit, and in particular are committed to supporting those that need financial assistance in order to attend our organisation.

We were able to offer fifteen of the students grants towards fees, and in total we distributed £36,000 which included a £5,000 George Peabody Performing Arts Grant, which we distribute yearly in respect of supporting the increase in ethnic diversity, within the industry. As the course commenced in the previous accounting period only the relevant proportion of the distributions are included in these accounts as an expense.

In addition to the grants against fees provided to students directly by LSMT, many other charitable organisations gave support to our students through allocation of restricted funds given in respect of course fees. This recognition of our ability to fulfill our charitable objectives was much appreciated, and enabled some individuals to attend, who would otherwise have been unable to do so.

The charitable organisations who gave restricted fund student fee support in the period of this report, were as
follows:
The Mbili Charitable Trust - £950
The Lionel Bart Foundation - £1,600
Southampton Music Trust - £2,000
Wilmcote Charity - £750
Enterprise Arts Foundation - £1,000
The Walker Trust - £6,000
The Andrew Lloyd Webber Foundation -
£16,750.

As the course commenced in the previous accounting period these amounts were recognised as income and expensed as charitable awards in the previous year's accounts to 31 December 2023.

In addition to the charitable organisations that gave support, an individual active in the theatre industry gave £16,750 for the full fees of a designated student, in order that they may attend.

LSMT Building

We continue to be based in the building that has fulfilled our requirements, for over thirty years. The landlord is planning to develop the site as part of the Borough Triangle scheme. They have recently given us a Renewal Lease with a term ending on 1st August 2026, which allows some continuity and stability for the immediate future.

LSMT is planning to move to an alternate building offering long term tenure, for future delivery of our charitable objects. A change of operational premises is a serious commitment, and any site considered must properly serve the needs of the charity. We are performing due diligence on any proposed premises, that are brought to our attention.

Funding sources

The charity charges a set fee for the course it provides.

Some of these fees are paid by outside charitable bodies and trusts directly to ourselves as a grant against fees for a particular student, or directly to the student to fund attendance.

THEATRICAL EDUCATIONAL SERVICES LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2024

Financial review

The charity suffered a deficit of £11,687 in the delivery period from 1 January 2024 to 31 August 2024. This compares with a deficit in respect of the previous twelve months of £63,102.

LSMT will need to return to a minimum intake of forty students yearly, in the near future.

The Trustees are committed to increasing student intake, and controlling expenditure so that the charity returns to surplus, as soon as possible. Recent adept use of online marketing, to increase awareness of the course to suited candidates has resulted in a major increase in applications and the organisation is confident of a continued stabilisation of finances.

Reserves

The Trustees have examined the charity’s requirement for reserves in light of the main risks to the organisation. The intention in the future is to hold reasonable levels of reserves in the organisation to protect against unforeseen circumstances and potential risks without over retention, which would be contrary to our charitable delivery.

At the end of the accounting period to 31 August 2024 the charity does not have reserves, but with recruitment of suitable students getting stronger, a more sustainable balance sheet is projected.

Risk Management including Current Risks

The principal risk faced by the charity lies in failing to generate sufficient income and resulting surpluses to build up reserves to face any difficult times that may arise in the future.

A major requirement will be having the reserves required for the costs involved for moving to a new premises, when this occurrence becomes necessary.

The charity needs a certain number of students in order to financially meet its objectives. We continue to ensure places on our training are only offered to those who will truly benefit from a one year training. The course application rate continues to increase, and LSMT is confident of a return to pre-pandemic levels of suitable student recruitment, and the resultant income.

Plans for Future Periods

The charity plans to continue its activities to serve the community in which it operates in the forthcoming years.

The charity plans to continue stabilising and strengthening its financial health.

The organisation plans to acquire a more permanent premises to deliver its charitable objectives.

The organisation plans to continue to offer subsidised places on our course to financially disadvantaged applicants.

The trustees' report was approved by the Board of Trustees.

A W Jeckells

Trustee Dated: 27 May 2025

THEATRICAL EDUCATIONAL SERVICES LIMITED

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THEATRICAL EDUCATIONAL SERVICES LIMITED

I report to the trustees on my examination of the financial statements of Theatrical Educational Services Limited (the charity) for the period ended 31 August 2024.

Responsibilities and basis of report

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

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of The Association of Certified Accountants, which is one of the listed bodies.

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

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

John Pudduck FCCA

Martlet House E1, Yeoman Gate Yeoman Way Worthing West Sussex BN13 3QZ 27 May 2025

THEATRICAL EDUCATIONAL SERVICES LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED 31 AUGUST 2024

Unrestricted Restricted Total Unrestricted Total Unrestricted Restricted Total
funds funds funds funds
2024 2024 2024 2023 2023 2023
Notes £ £ £ £ £ £
Income from:
Donations, grants and
legacies 3 - 4,000 4,000 1,600 25,100 26,700
Charitable activities 4 390,154 - 390,154 545,223 - 545,223
Investments 5 687 - 687 937 - 937
Total income 390,841 4,000 394,841 547,760 25,100 572,860
Expenditure on:
Charitable activities 7 424,736 4,000 428,736 644,433 28,100 672,533
Taxation 10 (22,208) - (22,208) (36,571) - (36,571)
Total expenditure 402,528 4,000 406,528 607,862 28,100 635,962
Net expenditure for the
period/
Net movement in funds (11,687) - (11,687) (60,102) (3,000) (63,102)
Fund balances at 1 January
2024 (121,868) - (121,868) (61,766) 3,000 (58,766)
Fund balances at 31 August
2024 (133,555) - (133,555) (121,868) - (121,868)

The statement of financial activities includes all gains and losses recognised in the period.

The statement of financial activities includes all gains and losses recognised in the period. All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THEATRICAL EDUCATIONAL SERVICES LIMITED

BALANCE SHEET

AS AT 31 AUGUST 2024

2024 2023
Notes £ £ £ £
Fixed assets
Goodwill 11 6,050 6,400
Tangible assets 12 55,808 53,032
Current assets
Debtors 13 258,755 118,079
Cash at bank and in hand 219,729 166,583
478,484 284,662
Creditors: amounts falling due within
one year 15 (665,993) (450,906)
Net current liabilities (187,509) (166,244)
Total assets less current liabilities (125,651) (106,812)
Creditors: amounts falling due after
more than one year 16 (7,904) (15,056)
Net liabilities (133,555) (121,868)
Income funds
Unrestricted funds (133,555) (121,868)
(133,555) (121,868)

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the period ended 31 August 2024.

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

The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 27 May 2025

A W Jeckells

Trustee

Company Registration No. 03293892

THEATRICAL EDUCATIONAL SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2024

1 Accounting policies

Charity information

Theatrical Educational Services Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 83 Borough Road, Southwark, London, SE1 1DN.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's constitution, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

As shown in the balance sheet the charity has net liabilities.

The Trustees are aware of the need to ensure a higher income, through the recruitment of a suitable cohort of training recipients. The intent is to return to a minimum of forty students per year, which enables a suitable financial stability.

The audition process has been adapted to enable a more expedient process for offering a place on the course. This has been determined as an important factor, for the securing of the required cohort.

The charity has various contacts who are prepared to provide short term funding in case of cashflow difficulties during the period of recovery after the Pandemic. Two such individuals have confirmed their preparedness to provide financial support amounting to £50,000 during 2025, should it be required.

Overall the trustees are therefore confident that they can continue operating fully for at least the next 12 months and meet debts as they fall due. The trustees therefore consider that it is appropriate for the accounts to continue to be prepared on the going concern basis.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

THEATRICAL EDUCATIONAL SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2024

1 Accounting policies

(Continued)

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Turnover is measured at the fair value of the consideration received or receivable and is in the main derived from the annual course, from which the revenue is recognised as the courses are delivered. In the event of a school year spanning more than one accounting period course revenue is apportioned between the accounting periods by reference to costs incurred in each period.

Revenue from auditions are recognised when the auditions are incurred.

Revenue from the ticket sales of school productions are recognised when the productions are incurred.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Expenditure is recognised on an accruals basis as a liability is incurred.

1.6 Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill shall be considered to have a finite useful life, and shall be amortised on a systematic basis over its 20 year life.

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements Over lease term Fixtures, fittings and equipment 15% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

THEATRICAL EDUCATIONAL SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2024

1 Accounting policies

(Continued)

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs.

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

Accounts payable are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Accounts payable are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

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

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

1.12 Retirement benefits

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

1.13 Irrecoverable VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

THEATRICAL EDUCATIONAL SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2024

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations, grants and legacies

Restricted Unrestricted Restricted Total
funds funds funds
2024 2023 2023 2023
£ £ £ £
Donations and gifts 4,000 1,600 25,100 26,700

4 Charitable activities

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Course fees 371,850 533,096
Audition income 410 336
Box income 14,725 7,477
Rental income 2,967 3,010
Other income 202 1,304
390,154 545,223

THEATRICAL EDUCATIONAL SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2024

5 Investments

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Other interest receivable 71 -
Bank interest receivable 616 937
687 937

6 Employees

The average monthly number of employees during the period was:

Employment costs
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was more than
£60,000, on an annualised basis, was as follows:
£70,001 to £80,000		 2024
Number
3
2024
£
69,000
2,736
-
71,736
2024
Number
1		 2023
Number
3
2023
£
102,792
5,502
4,064
112,358
2023
Number
1

THEATRICAL EDUCATIONAL SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2024

7 Charitable activities

Charitable
activities
2024
£
Staff costs
52,274
Depreciation
11,020
Rent, rates, and water
56,903
Trade mark licence
20,000
London School of Musical
Theatre grants and
charitable awards
26,200
Costs of productions
94,647
Advertising and promotion
5,497
Tutors fees
67,235
Establishment expenses
18,976
Office expenses
1,794
Travel and subsistence and
outings
2,180
Miscellaneous expenses
76
Student maintenance grant
-
Cost of goods for resale
-
356,802
Share of support costs (see
note 9)
-
Share of governance costs
(see note 9)
-
356,802
Analysis by fund
Unrestricted funds
352,802
Restricted funds
4,000
356,802		 Support
costs
2024
£
29,569
-
-
-
-
-
-
-
14,945
4,415
259
155
-
-
49,343
14,731
7,860
71,934
71,934
-
71,934		 Total
2024
Charitable
activities
2023
£
£
81,843
79,314
11,020
15,481
56,903
82,941
20,000
30,000
26,200
65,100
94,647
112,403
5,497
13,117
67,235
131,079
33,921
37,101
6,209
3,271
2,439
1,693
231
-
-
1,385
-
1,022
406,145
573,907
14,731
-
7,860
-
428,736
573,907
424,736
545,807
4,000
28,100
428,736
573,907		 Support
costs
2023
£
49,943
-
-
-
-
-
-
-
18,111
2,627
529
193
-
-
71,403
20,413
6,810
98,626
98,626
-
98,626		 Total
2023
£
129,257
15,481
82,941
30,000
65,100
112,403
13,117
131,079
55,212
5,898
2,222
193
1,385
1,022
645,310
20,413
6,810
672,533
644,433
28,100
672,533

8 Trustees

Mr A Jeckells was paid a salary during the 8 month period of £50,000 (Year to 31 December 2023: £71,000).

The emoluments paid to Mr Jeckells is in accordance clause 6 of the Articles of Association concerning allowed payments for reasonable and proper remuneration for services rendered to the charity as the Principal.

THEATRICAL EDUCATIONAL SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2024

9 Support costs

Support costs
Support
costs
Governance
costs
£
£
Professional fees
13,536
-
Provision for bad debts
-
-
Interest paid and bank
charges
1,195
-
Accountancy fees
-
7,860
14,731
7,860
Analysed between
Charitable activities
14,731
7,860		 2024
Support
costs
Governance
costs
£
£
£
13,536
13,322
-
-
5,278
-
1,195
1,813
-
7,860
-
6,810
22,591
20,413
6,810
22,591
20,413
6,810		 2023
£
13,322
5,278
1,813
6,810
27,223
27,223

Governance costs includes a payment to the accountants of £630 (2023- £630) for the independent examination fee.

10 Taxation

Unrestricted Unrestricted
funds funds
2024 2023
£
Theatre tax relief (22,208) (36,571)
(22,208) (36,571)

Theatrical Educational Services, as a registered charity, is exempt from corporation tax under Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of the Chargeable Gains Act 1992 to the extent that surpluses are applied to its charitable purposes.

The charity does however qualify for Theatre Tax Relief in respect of certain expenditure it incurs on its theatrical productions, resulting in the tax credits included in the accounts as above.

THEATRICAL EDUCATIONAL SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2024

11 Intangible fixed assets

Cost
At 1 January 2024 and 31 August 2024
Amortisation and impairment
At 1 January 2024
Amortisation charged for the period
At 31 August 2024
Carrying amount
At 31 August 2024
At 31 December 2023
12
Tangible fixed assets
Leasehold
improvements
£
Cost
At 1 January 2024
346,449
Additions
-
At 31 August 2024
346,449
Depreciation and impairment
At 1 January 2024
318,691
Depreciation charged in the period
7,163
At 31 August 2024
325,854
Carrying amount
At 31 August 2024
20,595
At 31 December 2023
27,758
13
Debtors
Amounts falling due within one year:
Accounts receivable
Corporation tax recoverable
Other debtors
Prepayments and accrued income		 Fixtures,
fittings and
equipment
£
129,121
13,446
142,567
103,847
3,507
107,354
35,213
25,274
2024
£
140,196
48,311
17,500
52,748
258,755		 Goodwill
£
40,500
34,100
350
34,450
6,050
6,400
Total
£
475,570
13,446
489,016
422,538
10,670
433,208
55,808
53,032
2023
£
17,881
42,499
17,500
40,199
118,079

THEATRICAL EDUCATIONAL SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2024

14 Loans and overdrafts

Loans and overdrafts
Bank loans
Payable within one year
Payable after one year		 2024
£
18,215
10,311
7,904		 2023
£
24,946
9,890
15,056

The bank loan was obtained on 12 May 2020 under the government's Bounce Back Loan scheme in order to assist with the financial effects of the Coronavirus epidemic.

The loan is repayable in monthly instalments over a five year period commencing on the first anniversary after the loan was taken out. The interest for the first year of the loan was paid for by the government via a Business Interruption Payment. Interest charges for the charity are accruing at a rate of 2.5% per annum from 12 June 2021.

15 Creditors: amounts falling due within one year

Notes
Bank loans
14
Other taxation and social security
Accounts payable
Accruals and deferred income
16
Creditors: amounts falling due after more than one year
Notes
Bank loans
14
17
Retirement benefit schemes
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes		 2024
£
10,311
1,777
36,895
617,010
665,993
2024
£
7,904
2024
£
-		 2023
£
9,890
2,846
55,309
382,861
450,906
2023
£
15,056
2023
£
4,064

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

THEATRICAL EDUCATIONAL SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2024

18 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 January Incoming Resources At 31 August
2024 resources expended 2024
£ £ £ £
General funds (121,868) 390,841 (402,528) (133,555)
Previous year: At 1 January Incoming Resources At 31
2023 resources expended December
2023
£ £ £ £
General funds (61,766) 547,760 (607,862) (121,868)

19 Operating lease commitments

Lessee

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024 2023
£ £
Between two and five years 114,000 186,000

THEATRICAL EDUCATIONAL SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2024

20 Related party transactions

Transactions with related parties

During the period the charity entered into the following transactions with related parties:

The founder of the school, resigned as a Company Director on 1st January 2008, before the organisation had become a Charity (21st March 2016).

He has remained associated with the organisation, both before and after charitable status, through the preexisting Trade Mark Licence agreement for the use of his intellectual property, and in recent years as an employee, in the role of financial controller. He was paid £4,000 as financial controller during the eight-month period of this report (£6,000 for the proceeding 12 months).

In addition was paid £20,000 in the period of this report, under the existing Trade Mark Licence agreement (£30,000 per annum). The current Trade Mark Licence has been in operation since 16th October 2015 as registered at The Intellectual Property Office, replacing a former Licence from 28th November 2007.