Charity number: 1212854
SECOND STAGE
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2026
SECOND STAGE
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the Charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 9 |
| Independent examiner's report | 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Notes to the financial statements | 13 - 20 |
SECOND STAGE
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE PERIOD ENDED 31 MARCH 2026
| Trustees | C Howes, Chair |
|---|---|
| E Snape | |
| E Thomas | |
| K Bennett | |
| Charity registered number 1212854 Principal office 26 Great Queen Street London WC2B 5BL Chief executive officer J Hutchison Accountants Larking Gowen LLP Chartered Accountants 1 Claydon Business Park Great Blakenham Ipswich IP6 0NL Solicitors Harbottle & Lewis LLP 7 Savoy Court London WC2R 0EX |
Page 1
SECOND STAGE
TRUSTEES' REPORT FOR THE PERIOD ENDED 31 MARCH 2026
The Trustees present their annual report together with the financial statements of Second Stage for the period 7 April 2025 to 31 March 2026. 7 April 2025 was the date of registration as a charitable incorporated organisation (CIO). The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of lreland (FRS 102) (effective 1 January 2019).
Objectives and activities
a. Objectives and aims
The objects of the CIO are, for the public benefit, to:
3.1.1 Promote and support the rehabilitation of offenders and those at risk of offending or re-offending and to assist them in finding employment, primarily but not exclusively in the theatre industry;
3.1.2 Advance the education of offenders and those at risk of offending or re-offending and any other persons who are in need by reason of unemployment, poverty, financial hardship or other economic or social disadvantage, primarily but not exclusively by providing or supporting the provision of education and training in (a) skills for roles in the creative industries (including, but not limited to, the theatre industry); (b) other ancillary skills; and
(c) other skills likely to improve employability generally; and
3.1.3 Promote social inclusion by preventing people from becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to integrate or re-integrate into society.
3.2 For the purpose of clause 3.1.3, socially excluded means being excluded from society, or part of society, as a result of being a member of a socially and economically deprived community.
The charity delivers on its objects through training programmes in prisons and in the community to assist them in finding employment, primarily but not exclusively in backstage work in the theatre and live events industries. We also work with potential employers to break down barriers and promote Fair Chance Employment. The main activities include the following:
In-prison Courses - These one-day courses inform the attendees on the kinds of jobs available, potential employers and include basic skills training. They are delivered by Association of British Theatre Technician (ABTT) professional educators delivering practical hands-on sessions with sound and lighting equipment generously provided by industry supporters, with ‘guest inspirational speakers’ from the theatre and live events industry. Within the prisons, we are supported by the Education, Skills and Work staff as well as the Employment teams. We are currently delivering these regularly within the male prison estate in two prisons, HMP/YOI Isis and HMP Hollesley Bay and have been approached by other prisons via the Prison Employment Leads, to extend our delivery programme.
Through-the-Gate Support – Case management support is provided through the gate for our participants by our partner No Going Back Foundation who have an exceptional track record in supporting those with criminal records into meaningful employment which drastically reduces reoffending rates. We are looking to expand our partnerships to include similar support charities like Key4Life, Switchback and StandOut.
Community Engagement Events – These events take place in the community and involve both those looking for work and up to three industry employers at each event. They start with the same introduction to the industry, but then participants are able to speak with employers who are there to meet potential candidates face-to-face in a relaxed environment, leading to real job interviews and future employment. While these have been held to date in partnership with No Going Back, we are looking to work with New Futures Networks’ CFO programme which has hubs at Deptford, Lewisham and Croydon.
Page 2
SECOND STAGE
TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2026
Objectives and activities (continued)
Employer Engagement – We work with Offploy who effectively support employers to recruit and retain people with criminal records effectively. We partner with Clean Break who provide ‘trauma informed workshops’ and we can direct people for advice to contacts we have made at FCBA and ICPD where necessary. Apprenticeships and On-the-Job Training in the Community – Whilst many of the roles will be entry level where participants can begin to immediately earn money (which is a key factor in reducing reoffending), there are also apprenticeship schemes which we can tap into which can provide additional employment pathways for some of our younger candidates.
Week-long Industry Courses – Following feedback from both candidates and employers, we believe both parties would benefit from a week-long course delivered in a theatre space where further training and on-thejob interaction can take place. We are in discussion with a number of venues, technical providers and the probation services to see how best to deliver this and will be piloting our first one in May this year.
Buddy Scheme – We have an ‘Industry buddy’ who liaises directly with the candidates through the recruitment process and supports them into work.
Developing referral pathways – We are currently working in partnership with No Going Back to target individuals within the prisons as well as in the community who are already supported ‘through the gate’ to ensure they have home addresses, bank accounts and the means to get to and remain in work. We are looking to increase the number of caseworkers working in this capacity to ensure we reach more individuals. We have also had early conversations with Job Centres, HMPPS probation services, PeoplePlus and DWP to develop new and effective pathways and in discussion with other charities providing through-the-gate support including Beating Time, Switchback and StandOut.
Employee filtering – as we get more people into work, so we are learning more about how to find the right people to promote into this workspace. Liaising closely with the employers who are already supporting early candidates into work, we are developing the pre-requisites to being ‘job ready’ in this unique working environment. We hope to set up regular assessments with successful candidates for them to provide feedback and help inform our development, as well as to help them remain and grow in their employment.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
b. Public benefit
The trustees confirm they have had due regard to the Charity Commission’s public benefit guidance in planning activities and setting objectives.
Page 3
SECOND STAGE
TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2026
Objectives and activities (continued)
c. Main activities to further the purposes
During the year we delivered seven in-prison courses, four employer engagement events, one industry awareness day and an in-prison recruitment fair.
During those in-prison courses and employer engagement events, we worked with over 90 men and supported 6 of them into work.
As this is our first year, our activities have adapted over the period to refine our delivery and increase engagement and employability.
We worked with freelance teachers and in-house staff to deliver all these events, from which we may now develop a five year business plan which sees our engagement increase to 500 in this next year and over 1500 by year five, with 60 jobs next year and over 200 in year five.
They were supported by a number of volunteers from the theatre industry who came along as ‘industry professionals’ to give first hand reports and answer questions and engage on a personal level with participants. This was well received and those volunteers also feel they benefited from the experience.
While our first year saw us working in just two prisons, we are already in conversation with further London prisons and more in-community events in partnership with the CFO as well as No Going Back.
d. How we create change
Our mission is to provide training, theatre industry experience and future employment to those leaving the criminal justice system, to offer support and provide mentoring to those who engage with us and to empower our participants to recover and resettle to reduce reoffending.
We do this by delivering in-prison and community sessions with hands-on exposure to technical equipment and industry context with career pathways. We introduce employers and set up referral partnerships. We also prepare the industry by delivering awareness days, employer partnerships and guidance on disclosure and onboarding to provide a network of informed and engaged employers.
Our impact on people leaving prison is to increase their awareness of these roles and opportunities and provide technical training and experience so people feel equipped, supported and connected to the sector increasing access and sustainable employment which will reduce the likelihood of reoffending.
Our impact on the theatre and live event sector means more employers at every level will be willing and able to recruit people with criminal convictions. They will amend policies and practices in line with advice and support from rehabilitation organisations. This should then reduce the skills shortages found lacking in technical theatre roles.
We will then achieve our vision which is a future in which people leaving prison can build sustainable careers in the theatre and live events industry, and are recognised as a valuable source of technical talent, and contribute to a more inclusive and diverse workforce.
Following a nine month pilot in which we have six men start meaningful employment, we have developed a five year business plan which sees us engage with 500 men and women over this next year with a view to getting 60 into work, and by the end of year five, engage with over 1500 individuals and employ over 200 of them.
Page 4
SECOND STAGE
TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2026
Achievements and performance
a. Overview of the year
We delivered these courses and employer days in challenging conditions and learned the complexities of getting technical sound and lighting kit in and out of a secure unit and travelling it between London and Suffolk effectively.
We feel we have broken down prejudice and employment barriers within our industry to increase the possibility of people with convictions being given a second chance via employment recommendations from us.
b. Outcomes and impact
Because this was our first year, we had no annual plan or targets, so we are delighted to have completed as many in-prison courses and placed men into actual jobs as we have.
We have now set up monitoring and evaluation modules with a third-party agency who will help us record our successes and failures and provide a real report based on our agreed Theory of Change, after next year.
Some comments we have received following the course:
What part of the workshop did you enjoy and why?
"Today, was the best day in my prison journey. I enjoyed every small thing in the course. The staff here are perfect and I enjoyed working with them."
"I enjoyed the intro powerpoint/talk. The part I most enjoyed was patching the lights into the desk choreographing for the performance."
"Everything, it was set up and delivered so well I would definitely do it again."
What attracts you to working in theatre or arts?
"The fact that I'm able to be my true self and that I'd be working around people with the same similarities as my own"
"The thing that would attract me the most would be being able to get a job backstage with the hope of being able to move up and progress one day to a lighting desk or lighting programming writer for plays."
"I would like to help with the manual labouring side helping with moving/setting up the props"
Page 5
SECOND STAGE
TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2026
Achievements and performance (continued)
Financial review
a. Introduction
We were able to raise funds from Theatre Producers and a small number of Trusts who were happy to support a charity before it has its first statutory year-end accounts. We were successful in a three year application for support from The Fishmongers Charitable Trust which will provide funds from April 2026 onwards, this was then matched by two prior funders. With this level of support, we hope to engage with more liveries and more producers as well as approaching those who funded our first year to encourage further support.
The sessions we delivered both in-prison and in the community were totally funded by the charity, but we are looking to apply for Police Crime & Commissioners funds for local support in Suffolk and DWP for some of our events in London. With proof of our success these avenues of income may be more open to us in the future.
Having raised over £200,000 in year one, we feel quietly confident that we will be able to reach our next year’s target of £380,000.
We are grateful to our donors in 2025/26, who included:
-
Lottery Community Fund
-
Backstage Trust
-
Ex Wives
-
Theatre Development Trust
-
Alchemy Foundation
-
The Talent Fund
-
The Mackintosh Foundation
-
Mark Gordon Pictures
-
Fiery Angel 25th Gala
b. Operating results
Total income was £207,493, total expenditure £201,647 resulting in a net movement in funds of £5,846. Year end funds £5,846 comprising unrestricted -£7,717 (deficit) and restricted £13,563. The charity incurred a small unrestricted deficit in this its first period of operation. Since the year end, ticket sales and other revenue have brought unrestricted funds back into a surplus position.
c. Investments
The charity hasn’t held any investments in its first year, but should we have a short term surplus of advance funds, we have opened a savings account with the same bank as our current account, at a higher interest rate to grow the funds.
Page 6
SECOND STAGE
TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2026
d. Reserves policy
The trustees aim to maintain free reserves of £30,000 (approximately 3 months of operating expenditure) to protect core services from income volatility and unforeseen costs, with a view to increasing this to £60,000 to represent 6 months of operating expenditure at the end of the next financial year.
At the year end, free reserves (unrestricted funds excluding fixed assets and designated funds) were in deficit of £7,717, below the target range. With significant funds already received in 26/27, we are confident that we will continue to build reserves in the charity.
e. Going concern
The trustees have assessed going concern for at least 12 months from the approval date, considering budgets, forecasts and sensitivities. No material uncertainties have been identified.
Structure, governance and management
a. Constitution
Second Stage is a Charitable Incorporated Organisation (CIO). It is registered as a charity with the Charity Commission, charity number 1212854.
b. Trustee Board
The Trustee Board has control of, and responsibility for the assets, affairs and general policy of the Charity.
The Trustee Board must meet at least four times each year. In the period ending March 2026, the Trustee Board formally met on five occasions in April, July, September, December 2025 and March 2026. A quorum for Trustee Board meetings is two of its members and decisions are made by a simple majority of the votes cast.
While the Executive Director has authority to run the charity in line with its funding constraints, the business plan, employment contracts and salaries are all agreed by the Trustees.
c. Trustee recruitment, appointment, induction and training
The Board of Trustees appoint new Trustees. Their consideration takes into account skills needs as well as recommendations from the CEO.
The trustees are considering appropriate processes for trustee induction and training.
Trustees are recruited based on the skillset the charity requires to support its function.
To this end, we have representatives from Charity Law, Technical Theatre Production, Prison Governance and a Theatre Producer.
We are actively looking to support this core team with further appointments to support Finance, Recruitment and/or Training of people with criminal convictions and someone with a lived experience, as well as actively looking to include at least one representative from the global majority.
Page 7
SECOND STAGE
TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2026
Structure, governance and management (continued)
d. Employee induction and training
All employees and potential employees are invited to volunteer at an in-prison volunteer day to experience firsthand working within the prison environment.
We look to support all staff by making sure they receive the necessary support and training for working in this challenging environment.
e. Plans for future periods
In this next financial year, we are looking to recruit a course instructor, rather than employing freelancers and expand our programmes' reach across more London prisons, the female estate and more courses in our Suffolk prison.
We are also looking to run week-long courses in the community in London, where employers will be invited to interview candidates.
We will continue to monitor the safeguarding of our staff at all times.
f. Target for next year:
-
To engage with more men and expand to include women via our one day in-prison courses
-
To deliver more one day employer/community events both in London and regionally
-
To trial delivering one-week courses in the community with employer engagement opportunities
-
To collectively get around 60 people into work
g. Principal Risks and Uncertainties
The trustees review the principal risks facing the charity on a regular basis and have established processes to monitor and mitigate these risks.
A key operational risk arises from the charity’s reliance on access to prisons in order to deliver its programmes. The prison environment is subject to disruption, including movement of prisoners, changes in regime and overcrowding, which can impact attendance and continuity of delivery. To mitigate this, the charity is working across a wider number of prisons, maintaining strong relationships with Education, Skills and Employment teams, and designing shorter, higher-impact sessions which can be delivered flexibly within the constraints of the prison system.
The charity is also exposed to funding risk, as it relies on grants and donations in a competitive fundraising environment. Failure to secure sufficient funding would limit the charity’s ability to deliver its planned activities and achieve its growth objectives. The trustees mitigate this risk by maintaining a broad pipeline of prospective funders, including trusts, foundations and industry partners, and by strengthening the evidence base for funding applications following its first year of operations.
As a growing organisation, the charity faces capacity risk in scaling from a small team to a larger operational structure while continuing to deliver programmes effectively. There is a risk that the pace of growth could outstrip internal resources or management capacity. To address this, the charity makes use of experienced freelancers and sector partners to support delivery and is taking a phased approach to recruitment as funding and demand develop.
The trustees consider that these risks are appropriately managed in the context of the charity’s current stage of
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SECOND STAGE
TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2026
Structure, governance and management (continued)
development, and continue to monitor them alongside the charity’s financial position and operational performance.
Statement of Trustees' responsibilities
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles of the Charities SORP (FRS 102);
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees and signed on their behalf by:
................................................
C Howes
Chair
Date:
Page 9
SECOND STAGE
INDEPENDENT EXAMINER'S REPORT FOR THE PERIOD ENDED 31 MARCH 2026
Independent examiner's report to the Trustees of Second Stage ('the Charity')
I report to the charity Trustees on my examination of the accounts of the Charity for the period ended 31 March 2026.
Responsibilities and basis of report
As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').
I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
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:
-
accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 an Independent examiner's 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 or for this report.
Signed: Dated: Giles Kerkham FCA DChA
Larking Gowen LLP
Chartered Accountants Ipswich
Page 10
SECOND STAGE
STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31 MARCH 2026
| Note Income from: Donations and legacies 3 Charitable activities 4 Total income Expenditure on: Charitable activities 5 Total expenditure Net movement in funds Reconciliation of funds: Net movement in funds Total funds carried forward |
Unrestricted funds Period ended 31 March 2026 £ 171,624 11,289 182,913 190,630 190,630 (7,717) (7,717) (7,717) |
Restricted funds Period ended 31 March 2026 £ 24,580 - 24,580 11,017 11,017 13,563 13,563 13,563 |
Total funds Period ended 31 March 2026 £ 196,204 11,289 |
|---|---|---|---|
| 207,493 | |||
| 201,647 | |||
| 201,647 | |||
| 5,846 | |||
| 5,846 | |||
| 5,846 |
The Statement of financial activities includes all gains and losses recognised in the period.
The notes on pages 13 to 20 form part of these financial statements.
Page 11
SECOND STAGE
BALANCE SHEET AS AT 31 MARCH 2026
| Note Current assets Debtors 9 Cash at bank and in hand Current liabilities Creditors: amounts falling due within one year 10 Net current assets Total assets less current liabilities Charity funds Restricted funds 11 Unrestricted funds 11 Total funds |
382 53,101 53,483 (47,637) |
2026 £ 5,846 5,846 13,563 (7,717) 5,846 |
|---|---|---|
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................
C Howes Chair
Date:
The notes on pages 13 to 20 form part of these financial statements.
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SECOND STAGE
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026
1. General information
Second Stage is a charitable incorporated organisation (CIO) registered with the Charity Commission for England and Wales with charity registration number 1212854. The registered address is 26 Great Queen Street, London, WC2B 5BL.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Second Stage 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.
The accounting period is from 7 April 2025 to 31 March 2026.
2.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for at least 12 months from the date of signing. Therefore the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
In coming to that conclusion, the trustees have reviewed forecast income, expenditure, cash and reserves.
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Page 13
SECOND STAGE
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026
2. Accounting policies (continued)
2.4 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 allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
2.5 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.6 Cash at bank and in hand
Cash at bank and 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.
2.7 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
2.8 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.
Page 14
SECOND STAGE
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026
2. Accounting policies (continued)
2.9 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
3. Income from donations and legacies
| Unrestricted funds Period ended 31 March 2026 £ Donations 117,624 Funds introduced before charity registration 32,000 Grants 22,000 171,624 |
Restricted funds Period ended 31 March 2026 £ - - 24,580 24,580 |
Total funds Period ended 31 March 2026 £ 117,624 32,000 46,580 |
|---|---|---|
| 196,204 |
4. Income from charitable activities
| Unrestricted | Total | |
|---|---|---|
| funds | funds | |
| Period | Period | |
| ended | ended | |
| 31 March | 31 March | |
| 2026 | 2026 | |
| £ | £ | |
| Income from charitable activities | 11,289 | 11,289 |
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SECOND STAGE
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026
5. Analysis of expenditure by activities
| Activities | |||
|---|---|---|---|
| undertaken | Support | Total | |
| directly | costs | funds | |
| Period | Period | Period | |
| ended | ended | ended | |
| 31 March | 31 March | 31 March | |
| 2026 | 2026 | 2026 | |
| £ | £ | £ | |
| Activities | 100,870 | 100,777 | 201,647 |
Analysis of direct costs
| Staff costs Freelance staff costs Training and employer engagement Community and industry day costs Other direct costs |
Activities Period ended 31 March 2026 £ 15,150 54,088 16,326 4,269 11,037 100,870 |
Total funds Period ended 31 March 2026 £ 15,150 54,088 16,326 4,269 11,037 |
|---|---|---|
| 100,870 |
Page 16
SECOND STAGE
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026
5. Analysis of expenditure by activities (continued)
Analysis of support costs
| Staff costs Freelance staff costs Fundraising costs General expenses Insurance Legal and professional Marketing and communication |
Activities Period ended 31 March 2026 £ 12,600 49,163 7,027 5,325 324 16,816 9,522 100,777 |
Total funds Period ended 31 March 2026 £ 12,600 49,163 7,027 5,325 324 16,816 9,522 |
|---|---|---|
| 100,777 |
6. Independent examiner's remuneration
| Period | |
|---|---|
| ended | |
| 31 March | |
| 2026 | |
| £ | |
| Fees payable to the Charity's independent examiner for the independent examination of | |
| the Charity's annual accounts | 3,900 |
Page 17
SECOND STAGE
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026
7. Staff costs
| Wages and salaries | Period ended 31 March 2026 £ 27,750 |
|---|---|
| 27,750 |
Payroll for staff commenced in January 2026; accordingly, the staff costs disclosed in the accounts relate to three months’ employee salaries to the period end. All employees on the payroll during the period are considered to be key management personnel.
Prior to the introduction of payroll, staff were engaged on a freelance basis. The associated costs are included within expenditure in Note 5 as freelance staff costs.
During the period the charity incurred costs for services and expenses of key management personnel of £107,737. This comprises costs for both staff and freelancers.
The average number of persons employed by the Charity during the period was as follows:
| Period | ||
|---|---|---|
| ended | ||
| 31 | March | |
| 2026 | ||
| No. | ||
| Employees | 1 |
No employee received remuneration amounting to more than £60,000 in the period.
8. Trustees' remuneration and expenses
During the period, no Trustees received any remuneration or other benefits.
During the period ended 31 March 2026, no Trustee expenses have been incurred.
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SECOND STAGE
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026
9. Debtors
| Due within one year Prepayments and accrued income 10. Creditors: Amounts falling due within one year Trade creditors Other taxation and social security Accruals and deferred income 11. Statement of funds Statement of funds - current period |
2026 £ 382 |
|---|---|
| 382 | |
| 2026 £ 6,980 1,949 38,708 |
|
| 47,637 | |
| Unrestricted funds General Funds Restricted funds Mackintosh Foundation National Lottery Community Fund Total of funds |
Income £ Expenditure £ 182,913 (190,630) 5,000 (5,000) 19,580 (6,017) 24,580 (11,017) 207,493 (201,647) |
Balance at 31 March 2026 £ (7,717) |
|---|---|---|
| - 13,563 |
||
| 13,563 | ||
| 5,846 |
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SECOND STAGE
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026
11. Statement of funds (continued)
The purpose of the restricted funds held by the charity are listed below:
National Lottery Community Fund- A grant from the National Lottery Community Fund to work with and support prison leavers in the community by holding a number of employment workshops.
Mackintosh Foundation- A grant from the Mackintosh Foundation for Second Stage to engage with Offploy, who help prepare employers within the theatre industry to employ people with convictions.
12. Summary of funds
Summary of funds - current period
| General funds Restricted funds |
Income £ Expenditure £ 182,913 (190,630) 24,580 (11,017) 207,493 (201,647) |
Balance at 31 March 2026 £ (7,717) 13,563 5,846 |
|---|---|---|
13. Analysis of net assets between funds
Analysis of net assets between funds - current period
| Unrestricted funds 2026 £ Current assets 39,920 Creditors due within one year (47,637) Total (7,717) |
Restricted funds 2026 £ 13,563 - 13,563 |
Total funds 2026 £ 53,483 (47,637) 5,846 |
|---|---|---|
14. Related party transactions
During the period, prior to the opening of the charity’s bank account, J Hutchison (CEO) received funds on behalf of the charity into their personal bank account of £32,000 and paid expenses on behalf of the charity of £34,450. The net balance owed to the CEO of £2,450 was reimbursed during the period.
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