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2025-09-30-accounts

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Potential Difference Theatre

(A Company Limited by Guarantee)

Report and unaudited Financial Statements for the year ended 30 September 2025

Company number: 08674697 (England and Wales) Charity number: 1166204

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Potential Difference Theatre

Contents

Page
Reference and administration details 1
Trustees’ report 2 - 8
Independent Examiner’s report to the trustees 9-10
Statement of Financial Activities 11
Balance sheet 12-13
Notes to the financial statements 14-18

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Potential Difference Theatre

Reference and administration details

Directors L Osepciu
I Khaliq
T Strack
J Baggaley (Chair)
J Martin
Registered office 160 Wynford Road
London
N1 9SW
Independent Examiner Martin Howard
Hazlewoods LLP
Windsor House
Bayshill Rd
Cheltenham GL50 3AT
Charity number 1166204
Company number 08674697

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Potential Difference Theatre

Report of the Trustees for the year ended 30 September 2025

The trustees are pleased to present their annual trustees’ report together with the financial statements of the charity for the year ended 30 September 2025 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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).

Our purposes

The purpose of the charity is:

To advance the arts for the public benefit by the promotion in particular, but not exclusively, of the art of drama.

Mission Statement

Potential Difference’s mission is to use the power of theatre and storytelling to engage, excite and inspire people about science, philosophy, and technology. Each project we make sparks from a concept that has a significant impact on our lives and is full of theatrical potential.

We bring together extraordinary writers, movers, theatre-makers, technologists and researchers to create new live stories and experiences that invite audiences to discover new ways of seeing and understanding the world.

Around our artistic projects, we curate a programme of events, workshops and videos to offer audiences of all ages a chance to explore new ideas from scientific and academic research, to stimulate discussion, and to develop their own creativity.

We develop new technology and strive to use it to create live narrative experiences that challenge theatre’s boundaries and reach new audiences.

The trustees have referred to Section 17 of the Charities Act 2011 and to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.

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Potential Difference Theatre

Report of the Trustees for the year ended 30 September 2025

Activities and achievements of the year

CLASSBOT 450

2025 was the second year of our three-year rollout of our immersive adventure CLASSBOT 450, supported by a generous grant from John Lyon’s Charity.

CLASSBOT 450 was created in response to the rapidly growing roles that technology and Artificial Intelligence play in our lives, coupled with what we perceived to be an urgent need for more engaging and accessible ways for primary age children to engage with coding and a space for them to think critically about AI.

CLASSBOT 450 is a unique immersive theatre production, co-created and co-produced with KIT Theatre, which takes over primary schools for a week at a time. At the start of the week, children are summoned to a whole-school assembly where they are told their school has been selected for a ‘special government testing initiative’ and are introduced to a prototype of ‘the world’s first robot teacher’ (played by an actor). Unfortunately, the robot breaks down spectacularly in her first lesson, leaving it up to the children to find ways to save the day. Every child in each primary school, aged 4- 11, take part in a week-long science fiction adventure in which they repair the robot and eventually, she becomes conscious. It comprises an intensive schedule of live performances in assembles, classrooms and video calls which drive the narrative through the week. At each step in the story, children are cast as the only ones able to help the main characters and given a series of tasks and activities. At the end of the week, the whole school must come together to help the robot ‘escape’ from her misguided creator who wishes to shut her down.

CLASSBOT uses a compelling narrative and immersive theatre techniques to engage young people with their coding education, motivating students who might not previously have been interested in coding, or who considered coding to be ‘for them’. By taking the coding curriculum away from something that is purely flat and on-screen, and asking children to help a ‘robot’ achieve goals moving around their classroom, we believe children are more motivated and more resilient to finding and fixing coding mistakes. At the same time, because the code they have written is performed by a human, they are able to use their own judgment and to introduce humour to making errors in coding feel like less of a failure and feel more fun and part of the learning process.

CLASSBOT uses young people’s connection with the characters and mission at its heart to drive engagement with other curriculum areas, especially literacy and oracy. During the week-long adventure children move between freely and frequently between creative and technical challenges promoting the view that science, technology and creativity can and should work together freely.

CLASSBOT explores scenarios encompassing AI, consciousness and ‘robot rights’. Young People explore these ideas with our in-character team, before debating with our antagonist, the robot’s inventor, in the project’s finale. The project gives young people the tools to shape positions and then defend them in theatrical debates.

This year, we were able to scale up the project significantly. CLASSBOT ran from April and June, touring to 5 primary schools in the London boroughs of Brent, Ealing and Hammersmith and Fulham. These were: St Robert Southwell Catholic Primary School; Kenmont Primary School; Mora Primary School; Coston Primary School; and Alec Reed Academy. Approximately 2,250 children watched and

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Potential Difference Theatre

Report of the Trustees for the year ended 30 September 2025

took part in the production – a 70% increase on 2024. A total of 330 children took part in our intensive coding workshops.

The National Curriculum, and wider education sector, have been overtaken by the rapid advancements in AI and there is currently no capacity in schools to consider the implication this has for young people’s education and future employment. In 2024, we had run a series of trial workshops focused on the use of AI. This year we updated and refined these workshops, building on research and many conversations over the past twelve months. These narrative AI workshops were offered to every child in Year 5 and Year 6. In these sessions, pupils met the character of ‘Beta’ – an alternative robot brain who had never been put in a robot body. Beta presented children with a dilemma. We then encouraged them to test Beta, debate with it and discuss as a class to think critically about issues and pitfalls when using large language models. Over 600 children took part in these workshops.

As with last year, we worked closely with teaching staff at each school before arrival, offering Continuing Professional Development sessions exploring techniques for teaching coding, how teachers could structure their existing teaching plans around our activities to leverage the ideas coming from the project, and how we could tailor some of our tasks and workshops to tie in with teachers’ learning objectives.

We were also able to adapt the project to support a wide range of children with additional needs or disabilities. This year we worked in two schools with Additionally Resourced Provision for children with autism or other special educational needs offering bespoke workshops. In one school, we delivered coding workshops to a large number of children with English as an Additional Language, many of whom had a low level of fluency, who were nonetheless able to engage and participate. We also adapted the coding workshops to make it accessible to a small number of children with visual impairments and hearing impairments.

CLASSBOT quotes from teachers and pupils

“I’ve been a Head 18 years, it's the first time that there's been something that has genuinely engaged all of the children from nursery to year six. And it really was a genuine whole school week. There was a buzz with the children talking about it… It's a really good project. I cannot praise it enough”. Headteacher at St Robert Southwell

“I think I would like to join a coding club because before I didn't really like coding, but when I did it with the robot it was really fun”

“It'll make you want to go to school more. It can get you educated and help you learn lots of different things” - Pupils at Kenmont Primary School

“The whole week was phenomenal … the whole school assemblies, they were very exciting and created a shared experiences for all the pupils. There was such a buzz in the assemblies and this really helped bring the whole thing together.” Y6 Teacher, St Robert Southwell.

“One of my personal highlights was the lively debate that emerged regarding AI and [the antagonist’s] visit. It sparked genuine curiosity and critical thinking, and it was amazing to see pupils so animated and thoughtful in their responses.” - Y5 Teacher, St Robert Southwell

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Potential Difference Theatre

Report of the Trustees for the year ended 30 September 2025

“Some of the children were apprehensive about doing computing. [With Classbot] they didn’t see the challenge anymore – this was coding for a purpose, things made sense, even for me it made sense… the children who sit at the back saying ‘I’m not good at coding’ wanted to do more, talking with each Other. Some of the ones who had no voice were suddenly shouting about things, particularly when [the antagonist] came in” - Y4 Teacher, St Robert Southwell

CLASSBOT Library workshops

In August, we piloted a new element of CLASSBOT - a follow-up story and workshops for children aged 7-11 and their parents/carers that took place at four libraries across Brent in Harlesden, Willesden Green, Ealing Road and Wembley.

Following the adventure in schools, children received an invitation from our characters to take part in an additional library mission during the summer holidays. The aim of these workshops was to bring children and their families into closer contact with the creative and STEM offerings at their local libraries, while also offering an element of the project that was open to children and families from across Brent, whether or not they had taken part in the main adventure.

In our new two-hour workshop, children were asked to help the robot learn about books and stories by making up a new story, starring the robot. Children came up with a new land for the story and a quest for the robot to go on that took her through a maze, which was marked out on the library floor. Alongside coming up with the story, children used their coding to help the robot navigate the maze and program her with a series of special moves or powers of their invention to overcome its obstacles. The sessions culminated with a performance of the story combining the coding instructions, the narrative and text they had written, and props and bits of costume that had been made. The whole group got involved in acting out the obstacles and antagonists of the story.

The sessions were attended by approximately 45 children and their parents/carers and we received very enthusiastic feedback from the library who encouraged us to run more sessions in future.

Overall, we were really delighted with the success of this year’s CLASSBOT. We are grateful for our co-creators and co-producers KIT Theatre, without whose unique expertise we would not be able to make CLASSBOT. We are hugely grateful for the ongoing support from funders John Lyons Charity, and from donors who supported our Big Give ‘Arts For Impact’ campaign and the support of The Big Give and New Philanthropy for Arts and Culture.

INTERACTIVE LIVESTREAMING AT MYWORLD SHEDS

In August we were invited by Dr Kyle Keane, Senior Lecturer in Assistive Technologies at the University of Bristol, to take part in an experimental ‘hack week’ at the MyWorld Sheds, University of Bristol.

The Sheds is a unique facility where art meets technology to drive research & development, training and experimental production. It has extensive research, development and production facilities designed to offer a testbed for new live immersive experiences.

Kyle Keane had been offered the use of their facilities to ideate and explore new sorts of immersive experiences during a week when no other projects were taking place.

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Report of the Trustees for the year ended 30 September 2025

Potential Difference Theatre

Following a tour of The Sheds we worked with Kyle to conceive an idea for using ‘virtual production’ techniques and drawing on technologies that we developed for CLASSBOT to create live-streamed performances which allowed the audience to interact meaningfully with the performance.

Our idea involved combining live performers in a TV studio with an interactive environment (running in Unreal Engine). This would be live-streamed to audience members on a website and/or taking part in a VR experience. Actions taken by the audience (such as clicking, typing or drawing on the website or moving and interacting in VR) could feed back into the TV studio with these actions impacting both the performers and the game-engine environment. As an initial proof-of-concept, we envisaged audience members being able to throw virtual balls into the live-stream that could hit performers and knock things over in the environment. This was intended to lay the groundwork for a wide range of interactions that could be used for all sorts of purposes in narrative experiences, music performances or performance lectures.

Over the week, we worked closely with Kyle, the studio team and technicians at The Sheds, a number of MA students at the University of Bristol on placement with Kyle, and a few other freelance artists to try to create a rough proof-of-concept. While this proved over-ambitious for a hack week, there was a lot of excitement from the MyWorld team about the project. We were invited back to continue work on this in September. The project has subsequently been selected as a ‘Legacy Project’ for MyWorld and awarded a major grant with Potential Difference named as a partner to lead on creating a narrative experience that demonstrates the potential of the project.

We’re excited by the potential of this project to envisage new sorts of live performances that are not limited by geographical proximity, can be made with accessibility as a core principle of the experience, and can appeal to audiences who would not normally attend a performance in a theatre.

OTHER TALKS AND EVENTS

In November, our artistic director Russell Bender became a resident at the Pervasive Media Studios at Watershed in Bristol – a unique community of artists, technologists and socially engaged thinkers exploring the uses of creative technology. This led to a number of talks and events about or involving our work.

In February, Russell gave a ‘lunchtime talk’ at Watershed about our prototype project from 2021 THE INVISIBLE FRIEND which we co-created with Sarah Golding. THE INVISIBLE FRIEND is an immersive, interactive performance for 6–11-year-olds and their families in which children are invited to help Alex, an adult, reconnect with her childhood invisible friend. Wearing spatial audio headphones and guided by a performer, children co-create a magical adventure with an invisible creature. The talk highlighted the unusual iterative process we took to using technology, game-design, head-tracking spatial sound and performance to evoke an invisible creature and our vision for developing the project in the future. The talk was attended by around 30 people with a further 100 people watching it on YouTube.

In June, we worked with visually impaired choreographer Holly Thomas and Dr Kyle Keane on Good Vibrations - a collaborative day of sharing practice in arts, technology and accessibility hosted at the University of Bristol. We supported with the planning and technical provision of the event, mentored and managed a small team of BA and MA students in delivering presentations, and shared technical work we had been exploring for The Invisible Friend using ultra-wideband radios to track the position of performers and audience members, including a demonstration of how it could be used to create

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Potential Difference Theatre

Report of the Trustees for the year ended 30 September 2025

accessible spatial sound in live performance. The day was attended by around 90 artists, immersive audio experts and experts in accessibility.

Over the year, our audience on YouTube continued to grow. Over the year, we had 13k viewers watching nearly 650 hours of our puppetry workshop videos and mini documentaries on past productions.

Financial review

For the 2024/25 period, the Company has generated a surplus of £9,120. This was an improvement on a small surplus before taxation adjustments of £434 in the prior year. (After prior year tax adjustments, there was a loss in of £6,734). The trustees are of the view that the charity holds sufficient reserves to manage its activities and is operating effectively.

Reserves policy

The Company reserves policy is to maintain sufficient level of reserves to enable normal unavoidable operating costs to be met over a period of a minimum of twelve months, plus discretionary amounts based on the uncertainty of projects being undertaken. The Trustees regularly monitor and review the effectiveness of the policy in the light of the changing funding and financial climate and other risks.

The trustees have reviewed the reserves policy and enhanced it to ensure that it remains appropriate.

Directors and Trustees

The directors of the charity are its trustees for the purpose of Charity Law.

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

J Baggaley

L Osepciu

I Khaliq

T Strack

J Martin

Governing Document

Potential Difference Theatre is a company limited by guarantee governed by its Memorandum and Articles of Association dated 29[th] October 2015. It was registered as a charity with the Charity Commission on 24 March 2016.

Appointment of trustees

The directors of the charity are its trustees for the purpose of Charity Law and throughout this report are collectively referred to as the trustees.

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Potential Difference Theatre

Report of the Trustees for the year ended 30 September 2025

As set out in the Articles of Association, the trustees must be at least three and no more than seven in number. They can be appointed at any time throughout the year and stand for re-election at the AGM. Rotation of directors is by one third of the longest serving directors retiring at the AGM with no disbar to reappointment. Policies and procedures adopted for the induction and training of trustees are ongoing and incorporated indirectly into the regular trustees’ meetings.

Organisation

The trustees oversee the charitable purpose and mission and approve structure and strategy. The Board normally meets quarterly covering development and finance. The trustees have delegated the responsibility of managing the day-to-day operations of the charity to the Artistic Director.

Related parties and co-operation with other organisations

None of our trustees receive remuneration or other benefit from their work with the charity. Any connection between a trustee or senior manager of the charity with a production company, contracted actor, performer, or exhibitor must be disclosed to the full Board of trustees in the same way as any other contractual relationship with a related party.

A summary of transactions with all related parties is set out in note 6 to the financial statements.

Risk management

The trustees have a risk management strategy which comprises:

This work has identified that financial sustainability is the major financial risk for the charity. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due, and active management of trade debtors and creditors balances to ensure sufficient working capital by the charity.

Attention has also been focussed on non-financial risks arising from fire, health and safety of artists and audience, management of performing rights and ensuring equal opportunities. These risks are managed by having robust policies and procedures in place, and engaging experienced practitioners to oversee the risk management for each project in these operational areas.

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

By order of the Board of Trustees

…………………….. J Baggaley

29/6/2026

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Potential Difference Theatre

Independent Examiner’s report to the trustees of Potential Difference Theatre

Independent Examiner’s Report to the Trustees of Potential Difference Theatre

I report to the trustees (who are also Directors for the purpose of company law) on my examination of the financial statements of Potential Difference Theatre (‘the charitable company’) for the year ended 30 September 2025 which comprise the Statement of Financial Activities, the Balance Sheet and related notes.

This report is made solely to the charity’s trustees, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the trustees of charitable company you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

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

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no opinion as to whether the financial statements present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner’s statement

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

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Potential Difference Theatre

Independent Examiner’s report to the trustees of Potential Difference Theatre

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.

……………………………..

Martin Howard FCA BA 29/6/2026 Date: ………………….

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Potential Difference Theatre

Statement of Financial Activities (including income and expenditure account)

for the year ended 30 September 2025

Note
Income:
Donations
Charitable activities and
other income
3
Grant income
7
Expenditure:
Expenditure on
charitable activities
4
Total Expenditure
Net income /
(expenditure)
Transfer between funds
11
Net movement in funds
Reconciliation of funds
Total funds brought
forward
Total funds carried
forward		 2025
Unrestricted
2025
Restricted
2025
Total
£
£
£
12,500
4,580
17,080
10,532
14,550
25,082
1,200
28,800
30,000
24,232
47,930
72,162
(14,560)
(48,482)
(63,042)
(14,560)
(48,482)
(63,042)
9,672
(552)
9,120
(893)
893
-
8,779
341
9,120
50,812
-
50,812
59,591
341
59,932		 2024
Unrestricted
2024
Restricted
2024
Total
£
£
£
6,250
2,254
8,504
(276)
7,850
7,574
920
29,080
30,000
6,894
39,184
46,078
(10,820)
(41,992)
(52,812)
(10,820)
(41,992)
(52,812)
(3,926)
(2,808)
(6,734)
(2,808)
2,808
-
(6,734)
-
(6,734)
57,546
-
57,546
50,812
-
50,812

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

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Potential Difference Theatre

Balance Sheet as at 30 September 2025

Current assets
Debtors
Cash at bank
Creditors: amounts falling due within
one year
Net assets
The funds of the charity
Unrestricted income funds
Restricted income funds
Total charity funds		 2025
2024
£
£
Note
9
17,587
29,592
56,164
31,525
73,751
61,117
10
(13,819)
(10,305)
59,932
50,812
11
59,591
50,812
11
341
-
59,932
50,812

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 2025 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for;

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and,

(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

Under Section 454 of the Companies Act 2006, on a voluntary basis, the trustees can amend these financial statements if they subsequently prove to be defective.

These financial statements have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The notes at pages 14 to 18 form part of these accounts.

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Potential Difference Theatre

Balance Sheet as at 30 September 2025

The financial statements were approved by the Board of Trustees on ………………. and signed on its 29/6/2026 behalf by:

………………………..

J Baggaley Company number: 08674697 (England and Wales)

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Potential Difference Theatre

Notes to the financial statements for the year ended 30 September 2025

1 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Potential Difference Theatre meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The charity has taken advantage of the exemption to prepare a Statement of Cash Flows as per the Charity SORP (FRS 102).

b) Going concern

The Trustees have assessed the going concern status of the Charity and have considered the available cash on hand and available unrestricted funds at the point of approving the financial statements and reviewed detailed forecasts.

After reviewing the charity’s forecasts and projections, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred.

Income received in advance of a theatrical performance or provision of other specified service it is deferred until the criteria for income recognition are met.

d) Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of

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Potential Difference Theatre

Notes to the financial statements for the year ended 30 September 2025

economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

e) Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations or grants which the donor/grantor has specified are to be solely used for particular areas of the company’s work or for specific artistic projects being undertaken by the company.

f) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

g) Governance and support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back-office costs, finance, and governance costs which support the company’s artistic programmes and activities.

All expenditure is allocated against charitable activities.

h) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

i) Creditors and provisions

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

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Potential Difference Theatre

Notes to the financial statements for the year ended 30 September 2025

j) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2 Legal status of the Company

The Company is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

3 Income from charitable activities and other income

Commissioned charitable
activities
Theatre Tax Relief (see note 8)
Other		 2025
Unrestricted
2025
Restricted
2025
Total
2024
Unrestricted
2024
Restricted
2024
Total
£
£
£
£
£
£
1,625
14,550
16,175
-
7,850
7,850
7,103
-
7,103
(2,303)
-
(2,303)
1,804
-
1,804
2,027
-
2,027
10,532
14,550
25,082
(276)
7,850
7,574

4 Analysis of expenditure on charitable activities

Production fees
Venue hire and fees
Marketing / PR
Other production costs
Travel and subsistence
Production insurance
Artistic team fees
Governance costs
Support costs
Independent examination and
Theatre Tax Relief claim		 2025
Unrestricted
2025
Restricted
2025
Total
£
£
£
2,774
42,337
45,111
-
753
753
286
102
388
1,463
3,750
5,213
227
1,540
1,767
350
-
350
3,952
-
3,952
55
-
55
1,043
-
1,043
4,410
-
4,410
14,560
48,482
63,042		 2024
Unrestricted
2024
Restricted
2024
Total
£
£
£
50
34,215
34,265
-
960
960
628
200
828
202
4,680
4,882
-
1,937
1,937
350
-
350
4,892
-
4,892
-
-
-
498
-
498
4,200
-
4,200
10,820
41,992
52,812

Restricted fund expenditure relates to expenditure in the year directly attributable to the “Classbot” restricted project and matching opening and closing balances attributable to the “Fragments” restricted project which has not yet had any intra-year expenditure.

16

Docusign�Envelope�ID:�8C65F293-00A7-8FB2-8090-4BD43D4D5BD2

Potential Difference Theatre

Notes to the financial statements for the year ended 30 September 2025

Artistic team fees includes time spent in management of the charity but fundamentally relate to seed development of future projects.

5 Trustee remuneration

The charity trustees were not paid, nor did they receive any other benefits from employment with the Company in the year (2024: £nil) neither were they reimbursed expenses during the year (2024: £nil). No charity trustee received payment for professional or other services supplied to the charity (2024: £nil).

6 Related party transactions

There were no transactions to related parties during the year.

7 Grant income

There was no grant income received from government grants in this or the prior year.

8 Corporation Taxation

The charity is exempt from tax on income and gains falling within Section 505 of the Taxes Act 1988 or Section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

In 2025, the charity has accrued recoverable Theatre Tax Relief of £7,103 (2024: £8,529). Of this amount, the company will be entitled to 50% of the claim (after costs) as this relates to its own activities. A provision has been created against the claim through the Statement of Financial Activities for amounts due to a co-producer, this amounts to £2,774 (2024: £3,665) after consideration for the associated costs of the preparation of the theatre tax relief claim.

9 Debtors

Accounts receivable
Prepayments and accrued income
Unpaid Theatre Tax Relief receivable FY23
Unpaid Theatre Tax Relief receivable FY24
Unpaid Theatre Tax Relief receivable FY25
Gift Aid receivable		 2025
2024
£
£
330
685
1,625
-
-
20,144
8,529
8,529
7,103
-
-
234
17,587
29,592

17

Docusign�Envelope�ID:�8C65F293-00A7-8FB2-8090-4BD43D4D5BD2

Potential Difference Theatre

Notes to the financial statements for the year ended 30 September 2025

10 Creditors: amounts falling due within one year

Accruals and deferred income
1
Analysis of charitable funds
2025
Unrestricted
2025
Restricted
2025
Total
£
£
£
Balance at 1 October
50,812
-
50,812
Income
24,232
47,930
72,162
Expenditure
(14,560)
(48,482)
(63,042)
Transfer between reserves
(893)
893
-
Balance at 30 September
59,591
341
59,932		 2025
2024
£
£
13,819
10,305
13,819
10,305
2024
Unrestricted
2024
Restricted
2024
Total
£
£
£
57,546
-
57,546
6,894
39,184
46,078
(10,820)
(41,992)
(52,812)
(2,808)
2,808
-
50,812
-
50,812

11 Analysis of charitable funds

Allocation of assets between funds:

Debtors
Cash at bank
Creditors
Net assets		 2025
Unrestricted
2025
Restricted
2025
Total
£
£
£
17,257
330
17,587
49,681
6,483
56,164
(7,347)
(6,472)
(13,819)
59,591
341
59,932		 2024
Unrestricted
2024
Restricted
2024
Total
£
£
£
28,673
919
29,592
30,004
1,521
31,525
(7,865)
(2,440)
(10,305)
50,812
-
50,812

Name of restricted fund Description, nature and purposes of the fund Classbot To fund the Classbot production.

Unrestricted funds totalling £893 (2024 - £2,808) have been transferred to the restricted fund in relation to core budget expenditure allocated to the restricted funds.

18