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2025-03-31-accounts

The Royal Shakespeare Company Stratford-upon-Avon

Registered charity number 212481

Report and Annual financial statements

Year ended 31 March 2025

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Contents

Contents
Page
Trustees' report 3-32
Reference and administrative details 26
Structure, governance and management 27-31
Governors, Board and Sub Committee membership 30
Statement of the Board’s responsibilities in respect of the Trustees’ report and the financial statements 33
Independent Auditor's Report to the Trustees of The Royal Shakespeare Company 34-37
Consolidated statement of financial activities 38
Corporation statement of financial activities 39
Balance sheets 40
Consolidated statement of cash flows 41
Reconciliation of net income / (expenditure) to net cash flow from operating activities 41
Notes 42-82
Comparative consolidated statement of financial activities 83
Comparative corporation statement of financial activities 84

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

TRUSTEES’ REPORT

INTRODUCTION

The Trustees are pleased to present their annual report together with the consolidated financial statements of The Royal Shakespeare Company (“RSC”, “the Company” or “the Corporation”) and its subsidiaries for the year ending 31 March 2025.

The financial statements comply with the Charities Act 2011, the Royal Charter 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).

Objectives, Activities, and Future Plans

Andrew Leveson joined the company as Executive Director on 29th April 2024. Together with Tamara Harvey and Daniel Evans, they form the artistic and executive leadership trio imagining, driving and staging the ambitious next chapter in the RSC’s history. Together, they have renewed the senior leadership team and with the Board and that team, revised the RSC’s vision and mission. A new 2030 strategy has been developed to provide renewed focused and to ensure the RSC is best equipped to deliver for audiences and use Shakespeare to make a positive impact on children’s learning.

Our mission: The RSC seeks to redefine how Shakespeare and great storytelling connects us, creates opportunities and brings joy.

Our vision: Our work inspires deeper human understanding through the power of theatre.

To guide our work, we have five 2030 objectives each underpinned by specific goals that will position us in terms of reach, relevance and impact:

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

The five objectives are uniquely interconnected and two respond to the current environment in which we find ourselves undergoing profound transformation. Our plan for 2025/26 is rooted in this new strategy, articulating how we will build on the work that we’ve done in 2024/25, take advantage of our momentum and set out clearly the path for the next five years.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Our Stratford campus is the home of the RSC with four performance spaces:

Stratford is also home to our restaurant, cafes, retail offer, public events programme, Museum and Archives, Clore Learning Centre, Costume Workshop, Costume Hire operation, Technical Workshops, gardens and an extensive residential property portfolio leased to artists during their time with us. As a key employer and stakeholder in the town, our relationship with Stratford and the wider Midlands is unique as the only major national theatre company based outside London.

In London, we have year-round performances of Matilda the Musical at the Cambridge Theatre. In Winter 2024, we were pleased to transfer The Buddha of Suburbia and A Midsummer Night’s Dream from Stratford to the Barbican. Our record-breaking adaptation of My Neighbour Totoro in partnership with Studio Ghibli, Nippon TV and Improbable, transferred to the Gillian Lynne Theatre in London’s West End in March 2025. We regularly transfer work to the West End, either under our own management or in collaboration with a producer or theatre owner. We were delighted to start 2025 with Kyoto moving to Soho Place for an extremely successful run that closed at the start of May.

We continue to commit to touring, particularly to some of the most underserved communities in England. During the year we were in schools the length of the country with our tour of Romeo and Juliet , and from February 2025 have been touring The Tempest . We announced a major UK tour of Matilda the Musical beginning in October 2025 as well as a large-scale tour of Hamlet . We value the long-term partnerships we have with regional theatres and during 2025/26 will visit:

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

We are committed to building new international collaborations, working with international artists, hosting companies from other nations and, in time, co-creating work with theatres worldwide. Ensuring we maintain a global presence is also key to our international brand profile, fundraising and income strategies. We have a long history of global touring, and have previously worked in New York, Washington, Australia and Asia, among others, with our Shakespeare productions and work by contemporary writers. We have undertaken significant performance and skill sharing residencies at leading US Universities including Ohio State and Michigan. Pericles transferred from the Swan to the Chicago Shakespeare Theater in October 2024.

Our transformative Creative Learning and Engagement work reaches over 500,000 children and young people annually and creates projects with and for communities who have not historically engaged with our work. We have one of the UK’s largest arts learning programmes, working with over 1,000 schools each year to broaden access to high-quality arts learning and transform experiences of Shakespeare in schools. Through our national Associate Schools programme, we work with 290 schools and 16 regional theatres in areas of structural disadvantage across 100 towns and cities from Cornwall to Middlesbrough. The programme operates through 32 partnership clusters, which we are expanding to 35.

The RSC is sector-leading in several other areas: we are the first (and currently only) performing arts organisation to have been awarded Independent Research Organisation (IRO) status; we are a leader in creative immersive technologies and digital development; and we have a proud history of innovation, diversity and excellence on stage and are determined to grasp the opportunity to become an even more inclusive, relevant and ambitious organisation. We also recognise the climate emergency and work hard to embed environmental sustainability into our operations, creative work and business practice. We work to the Green Book objectives for all of our stage work. We commit to continually reduce our carbon footprint, seeking to reduce our carbon emissions from buildings by 80% by 2035.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

KEY HIGHLIGHTS

ACHIEVEMENTS AND PERFORMANCE

The activities reported within this Trustees Report are in line with the Business Plan agreed for the 2024/25 period to 31st March 2025. The 2024/25 business planning included a strategic and consultative planning process for a new framework for the period from April 2023.

This framework was completed and aligned with a funding agreement we have in place with Arts Council England (ACE) for the 2023-26 period, reflecting the RSC’s inclusion within ACE's National Portfolio.

PRODUCTIONS PRESENTED IN 2024/25

This year we were delighted to present Daniel and Tamara’s bold and exciting inaugural season.

“So this is the new RSC. Vibrant” - The Guardian

The season opened with Luke Thompson starring in Loves Labours Lost at the RST directed by Emily Burns, which drew an audience of almost 30,000 people.

* “A brilliant start to a new era at the RSC” Whats on Stage

This was followed by the Buddha of Suburbia , a co- production with Wise Children. It was directed by our good friend Emma Rice, who won Best Director for Buddha in the What's on Stage Awards. This played in the Swan Theatre before transferring to the Barbican for a very successful run in the Autumn.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

* “Another partypopper of a hit from Emma Rice”, Broadway World

English , written by Sanaaz Toossi and presented in association with the Kiln Theatre, opened in The Other Place. It was nominated for an Olivier award for best new production in an Affiliate theatre.

* “a dazzling, clever and moving show” - The Times

During the summer, double Olivier Award winner Sam Spiro played Mistress Page in The Merry Wives of Windsor , playing to houses of almost 42,000 people.

* “With abounding silliness this is a comedy so polished it gleams” - The Guardian

Tinuke Craig’s hot pink production of Richard Brinsley Sheridan’s 1777 The School for Scandal played in repertoire with The Merry Wives of Windsor during Summer 2024.

* “Scandalously funny”- The Reviews Hub

We were delighted to welcome Ukraine’s Theatre Studio of IDP’s Uzhik to The Other Place to perform their powerful production of King Lear , which played to sell out audiences in June. As part of their visit, they met with representatives from internationally displaced people groups across Warwickshire (including Welcome Here, Mosaic Church, Hand in Hand and Association of Ukrainians of Great Britain) who were given the opportunity to watch a performance ahead of the public opening.

We were thrilled to co-present with Good Chance the world premiere at the RST of Kyoto , a new play written by Joe Murphy and Joe Robinson which was met with critical acclaim, prior to transferring to London for a hugely successful run at Soho Place. Kyoto was nominated for two Olivier Awards – Joe Murphy and Joe Robinson for best new play and Jorge Bosche for Best Actor in a Supporting Role.

* “A crucial piece of theatre” - What’s on Stage

Brendan O’Hea directed As You Like It in the Holloway Garden Theatre in the summer, with Luke Brady and Letty Thomas making their RSC debuts as sparring lovers, Orlando and Rosalind.

**** “the RSC’s pared down production is superb family friendly fun”

Tamara made her directorial debut at the RSC in July with Pericles , starring Alfred Enoch at the Swan Theatre. It has been 18 years since the RSC staged this play. Exceeding all targets, it then transferred to the Chicago Shakespeare Theater in October 2024.

* “This play is nothing short of astounding” - Broadway World

**** “This being the RSC production, expect nothing less than incredible acting” - Around the Town Chicago

In September, we were pleased to welcome Northern Ballet with their production of Romeo and Juliet in sellout shows at the RST.

The New Real , David Edgar’s 10th play for the RSC, premiered in October 2024 at The Other Place, and became the highest grossing play ever in that venue.

* “Ambitious....Brave” - Morning Star

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

During October, John Douglas Thompson starred as Othello and Will Keen as Iago in Tim Carroll’s Othello at the RST.

* “A striking interpretation of a classic Shakespearean tragedy that has the power to deeply move audiences” - West End Best Friend

Matt Baynton reprised his brilliant portrayal of Bottom in A Midsummer Night’s Dream during our Winter residency at the Barbican. A huge hit with audiences, it was also widely well received by critics:

* “A glorious production of Shakespeare’s most spellbinding comedy .....this truly is a night of fantasy” - London Theatre

For Christmas 2024, playwright Nancy Harris brought Hans Christian Andersons dark fairy tale into the 21st Century in the Swan Theatre with her interpretation of The Red Shoes , which was seen by an audience of over 26,000.

* “The Red Shoes is a spellbinding triumph, tailor-made for the Swan’s intimate stage” - West End Best Friend

Prasanna Puwanarajah’s Twelfth Night was the choice for a Christmas show at the RST, which exceeded all targets. Samuel West as Malvolio was joined by Gwyneth Keyworth as Viola, Freema Agyeman as Olivia and Bally Gill as Orsino.

* “Inspired and spellbinding” The Stage

Opening 2025, Rupert Goold directed Luke Thallon, Jared Harris and Nancy Carroll in Hamlet at the RST, with set design by Es Devlin.

* “A triumph from start to finish” - West End Best Friend

Closing the season, Daniel starred in Christopher Marlowe’s rarely performed tragedy Edward II at the Swan Theatre, directed by Daniel Raggett. Edward II was last performed at the RSC in 1990.

* “This production of Edward is not one to be missed, because its story still feels like an urgent warning today” - Theatre and Tonic

Matilda the Musical

There were over 420 performances of Matilda during the year, reaching an audience of over 440,000. This brings the total number of performances of Matilda in London since it started in October 2011, to over 5,000.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

KEY HIGHLIGHTS – CREATIVE LEARNING AND ENGAGEMENT

During the year, we were awarded a grant to test the feasibility of a cultural education platform .

In 2024, we were awarded seed funding from Bloomberg to test the feasibility of a cultural education research hub for the sector. This has resulted in the RSC convening roundtables involving 40 representatives from the arts and cultural sector.

The key outcomes from the roundtables were:

1) Cross sector consensus about the key design features and purposes of a cultural education hub.

2) A report shared with Bloomberg and the DCMS containing key recommendations about the design features and principles of a cultural education hub as well as designs to inform the development of the hub if funding could be secured.

3) The recommendations from the report are being used by the RSC and other sector colleagues to inform dialogue with government departments (DfE and DCMS). The impact of this work has been that the Cultural Learning Alliance (a sector facing body with 10,000 members who champion a right to arts and culture for every child) has adopted the recommendations in their advocacy calls to action to government and ACE.

“A central repository of research and evidence would provide backbone support to underpin the sector’s work and develop an informed community of practice, strengthening our ability to learn from and with each other.” Sally Bacon, Cultural Learning Alliance

The Associate Schools Programme

We worked with 290 schools and 16 regional theatres through our Associate Schools Network, delivering 86 teacher training days and 18 Playmaking Festivals involving 863 teachers and 124,122 students, including 457 young Shakespeare Ambassadors. Research undertaken using qualitative and quantitative methods, including a randomised control trial, point to the following impacts:

1) Teachers working more creatively and confidently with Shakespeare’s plays in the classroom.

2) Young people are more engaged in their learning about Shakespeare’s plays with sustained improvements in language development, communication skills and critical thinking.

3) There is greater engagement from families and the local community in the life of the school and their children’s learning. The impact of this work in the cultural sector is that it is now the basis of learning department activity in 16 regional theatres across England. In addition, the Associate Schools Programme is the only arts programme in the UK where schools are automatically awarded Platinum Artsmark status by Arts Council England due to the rigour and quality of the work undertaken. The impact of this work on children and young people is that is it develops critical thinking and problem-solving skills; builds collaboration; develops agency; promotes literacy development, emotional literacy, curiosity and imagination (Time To Act | Royal Shakespeare Company / Time To Listen | RSC Education | Royal Shakespeare Company)

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

“You hear children talking about Shakespeare around the school and in the playground. It’s penetrated everywhere from children in the classrooms to parents on the playground.” Headteacher, Primary school, Stoke on Trent

Research – Time to Act

We have shared the results of our Time to Act randomised control trial undertaken in 23/24 with colleagues in government and in the cultural and education sectors through 3 roundtable events, 5 conference presentations and 10 stakeholder meetings. The key outcomes of this activity are:

1) Securing joint meetings with Chief Scientific Advisors (CSAs) at the Department of Education (DfE) and DCMS respectively, both key relationships to inform policy agendas.

2) We included Time to Act research results in our submission to the Curriculum review and have attended specific roundtables about the place of the arts in the curriculum as part of the government commissioned review. The impact of this activity has been that the RSC has now been awarded our first ever piece of funding from the Education Endowment Foundation to undertake an efficacy trial based on the findings of Time to Act which will involve working with 200 additional statemaintained primary schools across England. The funding is part of a programme to Improve Writing Skills for Disadvantaged Students.

3) Being awarded the Excellence in Arts Education Award by SOLT/UK Theatre.

“Once you find their imagination, once you’ve got them in that world, the sky’s the limit.” Teacher participant in response to trying out RSC teaching approaches in their classroom

First Encounter Tour of Romeo and Juliet

We completed 89 performances across a 12-week tour of a 90-minute production of Romeo and Juliet as part of our First Encounters with Shakespeare programme. The production was seen and enjoyed by 17,212 people (114% of target), 60% of whom were seeing Shakespeare in performance for the first time and a quarter of whom were seeing their first play.

The key outcomes from the tour were:

1) Audiences that otherwise wouldn’t get access to Shakespeare’s work saw the production and responded extremely positively to the experience. In some cases (for example in Hartlepool) 97% of audiences were seeing Shakespeare for the first time or (for example in Corby) 60% of audiences were seeing their first piece of theatre.

2) Evaluation data shows that the tour reversed previously negative perceptions or expectations about Shakespeare amongst audiences of all ages.

3) 270 young people took on the role of the Prince’s Counsel in the production and evaluation shows this was a transformational experience for the young performers. The impact of this work is that it contributes to positive changes in the way that people feel about Shakespeare’s work, the place they live in and the agency they feel in their lives. Evaluation of our in-depth partnerships (which includes First Encounter touring) demonstrates the building of new audiences for Shakespeare’s work and that young people will now engage with other kinds of arts activities as a result of their experiences with the RSC (Time To Listen | RSC Education | Royal Shakespeare Company)

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

“It was undeniably one of the most significant events we have had the privilege of hosting at our school. The moment our young people first entered and integrated seamlessly with the cast on stage stands as one of the proudest instances in over 20 years of my experience in school leadership.” Headteacher, St Peter and St Paul Primary School, Skegness

Public Programme for visitors and communities, summer 2024

During the summer of 2024 we ran 3 summer schools, 44 activities and workshops for children and families, an interactive light and sound installation ‘The Glasshouse’ and an Open Stage programme of performances by community, student and amateur groups. 10,056 people of all ages participated in the activities. The key outcomes of the activities were:

1) High levels of reported enjoyment and engagement from audiences and participants (94%).

2) The deepening of our relationship with our local community through targeted work with nine local groups across the programme.

3) Better understanding through insight and feedback about the programming that draws our local community (free and drop in) compared to visitors to Stratford (paid for activities). The impact of this work has been to increase visitor footfall in Stratford and at the RSC with 60% of participants surveyed stating that their visit to Stratford was specifically driven by these events.

“The Holloway stage is such an exciting space! It was a wonderful opportunity to create a production especially for it! We felt very proud to be a part of Open Stage 2024 and what it inspired us to create!” Community group participant

KEY HIGHLIGHTS – CREATIVE INNOVATION AND INDEPENDENT RESEARCH ORGANISATION (IRO)

In March 2024 we were awarded a Creative Research Capability (CRESCA) grant from the Arts and Humanities Research Council (AHRC) of £1,594,120, which has enabled us to continue with our research into a Future Performance Institute. We have successfully recruited a further cohort of Fellows. From 400 applications worldwide, we interviewed 40 individuals and have recruited 15 new Fellows from across the globe, representing a hugely diverse cross section of talent across the Arts. The Fellows will gather together in Stratford for the Festival of Ideas in July 2025.

Equipment funded by this grant enabled the team to make a 20-minute demo of our game, Lili, which was debuted at the Cannes Film Festival in May 2025.

Virtual Model Box funded by Bloomberg will allow creative teams to accurately see and experience the set of our productions in 3D before they are made.

“Every time we fund you, you turn it into gold” - Christopher Smith, CEO, AHRC

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

KEY HIGHLIGHTS – BUILDINGS, INFRASTRUCTURE AND SYSTEMS

As a Theatre Company, we are different from many others in that we have the privilege of having a large estate, essential to our operations in Stratford, together with the responsibility and obligation to maintain it. The condition of our estate, technical equipment and systems continues to be a major drain on our resources and constitutes a significant future liability.

To better inform our assessment of need for capital, during the year we started work on our first Estates Master Plan. We have worked with a multi-disciplinary team of professionals to gather data to support this process. We have had the first independent condition survey of our buildings since 2018. We also commissioned an independent survey of our technical equipment replacement programme. We have received an independent valuation of our Commercial Buildings and completed detailed floor plans of all buildings. In addition, we have had an updated flood risk assessment for the RST and Swan theatres.

Study of TOP

In The Other Place, issues surrounding the short-term cost effectiveness of the production operation and the longer-term positioning of the venue were considered in a detailed study completed this year. A new operating methodology has subsequently been implemented, and the roadmap to a TOP for the future is now emerging.

Arden House

In February 2025, we purchased Arden House, a 10 bedroomed hotel in Stratford upon Avon. This was enabled by the generosity of the Garfield Weston Foundation, who permitted a drawdown of part of their accumulated endowment to fund this purchase. Arden House will be used to provide accommodation for visiting artists and staff, reducing our current reliance on third party accommodation and releasing savings.

Cyber Security

During the year we had an audit of our Cyber Security arrangements out of which a draft Cyber Response Plan was reviewed by the Risk and Finance Committee in May 2025. The Cyber Response Plan will then be tested during 2025/26.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

KEY HIGHLIGHTS – ENVIRONMENTAL RESPONSIBILITY

Estates Carbon and energy reduction roadmap

We appointed CPW consultants to carry out in-depth building audits across all our commercial buildings and a sample of residential buildings. They completed a costed plan for energy efficiency improvements and the feasibility of moving to renewable energy sources such as heat pumps. The report has provided an increased understanding of the work and financial input required to improve the current building stock and move to renewable energy sources. The impact of this work is that the actions within the report are being used to inform estate planning and are being incorporated into construction and maintenance projects.

Regional Theatre Green Book Event

We successfully hosted the first regional Theatre Green Book event. The event was attended by over 60 delegates from theatre organisations who were presented with case studies from five different regional theatre organisations. The impact of this work is that it increased awareness of the benefits, challenges and practical measures to implement the Green Book, particularly for participants new to the sector.

Climate-led creative programming: Kyoto

A co-creation with Good Chance, our production of Kyoto told the story of the 1997 Kyoto Conference. This was a targeted delivery of a climate focused production as part of our advocacy work. This acclaimed political thriller was successfully transferred to Soho Place in the West End. The production was supported in Stratford by our Creative Learning and Engagement team who worked with Good Chance to deliver ‘Conference’, a programme of public events exploring the messiness of agreement, negotiation and hope. It included a climate themed art installation, ‘Somewhere/Nowhere’ exploring the past, present and future of sustainability in theatre making, a community led People’s Assembly facilitated by members of the RSC’s Youth Advisory Board, a panel discussion featuring Stephen Kunken and Baroness Ashton, music performances by Love Ssega, and a short film called THE FUTURE (Sixes and Sevens), by Cornelia Parker, exploring the response of Primary School children to their future.

Associate Director appointment with responsibility for the Environment

We appointed an Associate Director with experience of climate led creative work and in-depth knowledge of climate impacts and action. Elizabeth Freestone, a theatre director, creative consultant and environmentalist was appointed to the position. The impact of this appointment is that it has increased the profile of, and engagement in, environmental initiatives across the RSC, specifically around the creative work and environmental culture of the organisation.

Production Workshops work on reuse

We have made improvements to maximise material reuse within productions. We have implemented an asset management tool, to enable management of post-production scenic materials and set items and establishment of post-production de-briefs. The impact of these workshops has been improved cataloguing and reuse of standard items, monitoring of materials data and reuse across productions.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Increased environmental procurement within retail offering

The retail team carried out research into the environmental credentials of products being offered in store and online. As a result, plastic and single use items are being phased out in preference to more sustainable options such as wood, and greater due diligence checks are being carried out on suppliers in relation to ethical and environmental standards. The impact of this work has been improved environmental standards across the retail range, demonstrating to customers our commitment to the environment and indirectly supporting our advocacy work.

KEY HIGHLIGHTS – PEOPLE AND CULTURE

Colleague Networks

We have launched 3 Colleague Networks (Equity, Pride, and Access) and 3 Community Groups (Parents and Carers, Menopause, and Interfaith). The Networks are spaces for innovation and collaboration with a particular focus on influencing inclusion across the RSC. We have managed the recruitment of Network Leaders, and a Chair for each Network, and embedded them within our Inclusion Leadership Team structure so that they can advocate for and influence change. Networks have been involved in many changes, including the development of our Inclusion Policy, building closer relationships with community inclusion groups (such as Stratford and Warwickshire Pride), driving activity for key events such as Disability History Month, Pride, and Race Equality Week, advocating for changes to our Assisted Performances ticketing offer for colleagues, and organising activities to celebrate various religious and cultural events. 138 people now belong to either a Network or Community Group, with numbers continuing to grow.

Policy Reviews

We have continued to refresh our people policies, with the aim of ensuring they are simple, engaging and inclusive. This year we have updated our Anti-Harassment and Bullying, Speaking Up, Disciplinary and Grievance, and Flexible Working policies, with around 1,500 unique visits to the new policy pages online. All policies underwent a process of consultation and an Equality Impact Assessment, to ensure they are as equitable and inclusive as possible, designed in partnership with the end users.

Recruitment

We have successfully recruited 267 roles in 2024/25, interviewing c1,000 of c11,000 applicants, ensuring that we can continue to bring great talent into the organisation. We have recruited four new Directors to our Senior Leadership Team, three of which are in brand new roles to the RSC (Director of Communication and External Affairs, Director of Brand and Audiences, and Director of Commercial). All have had an immediate impact in their new roles and are making valuable contributions to the RSC and their teams.

Safe reporting

We have launched and embedded our new safe reporting and accountability process, working in partnership with Vault. This year we have focused on incidents of bullying, harassment and discrimination with an emphasis on early and informal resolution wherever possible and appropriate. We have received 51 reports, averaging around 1 a week, and will be rolling this out to include reports of safeguarding and whistleblowing incidents. Reports are investigated and followed up in a variety of ways depending on the issue, including mediation, formal investigation and review.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

FUNDRAISING – PHILANTHROPY, OUR SUPPORTERS, EDUCATION AND CORPORATE PARTNERSHIPS

Fundraising activities continue to make a crucial contribution to our financial sustainability. Fundraising performance is monitored through the budgetary process and objectives are set to achieve a specific level of year-on-year changes and return on investment in unrestricted net departmental return. Budgets are set for all income and expenditure managed by the Development Department, which covers income beyond that shown against “Donations and Legacies” in the statutory format. However, from a Donations and Legacies perspective, we achieved gross income of £6.7m compared to £5.4m in the previous year, representing an increase of 24%.

The RSC upholds the highest standard of fundraising practice. We are registered with the Fundraising Regulator and adhere to their Code of Fundraising Practice for the UK, noting no failures to comply with this during the financial year. We abide by the key principles and behaviours of a fundraising organisation set out by the regulator: to be legal, open, honest and respectful. The fundraising team is trained to ensure they manage the protection of any vulnerable people they may meet.

The RSC received no complaints related to fundraising in the period from 1 April 2024 to 31 March 2025 which is consistent with the previous year, and all fundraising activities were conducted using internal resources.

We undertake to comply with relevant law and regulations, including the Proceeds of Crime Act, data protection, tax and Gift Aid legislation, and Charity Commission guidance. All RSC employees are required to abide by the RSC Anti-Fraud and Bribery policy.

The Board has a Donations and Sponsorship Committee and takes ultimate responsibility for accepting or refusing a donation or sponsorship, based on recommendations from the Senior Leadership Team (“SLT”) and our Donation and Sponsorship Acceptance Policy. It is their responsibility to act in the best interest of the Charity when accepting gifts. The members of the Development team are provided with training and are managed and evaluated in line with the RSC policies and guidelines.

Corporate Partnerships

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Education Partnerships

Trusts, Foundations and Grants

We remain incredibly grateful to Trusts, Foundations and Grantmakers for their ongoing support of the RSC’s work. In 2024/25 this included the following notable grants and funds (Note 18):

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Major Gifts

Campaigns and legacies

FINANCIAL REVIEW

Overview

In the financial year 2024/25, we generated total income of £82.0 million (£92.1million 2023/24) against expenditure of £83.7 million (£87.9 million 2023/24), resulting in net expenditure, before investment gains and losses, of £1.7 million, compared to net income of £4.2 million in 2023/24. The prior year benefited from significant exceptional income contributions from productions such as Matilda the Musical and My Neighbour Totoro .

There was an unrealised loss of £0.3 million as at 31 March 2025 ( 2023/24 - unrealised gain of £2.3 million) due to the market volatility towards the end of the year following U.S. tariff announcements. However, it should be noted that we generated realised investment income, included in total income, of £1.9 million during the year, which is consistent with 2023/24 (£1.8 million).The actuarial loss on the defined benefit pension scheme in the year was £0.4 million (compared to a gain of £0.2 million in 2023/24).Together, these resulted in a net decrease in total consolidated reserves across all funds from £130.5 million as of 31 March 2024 to £128.1 million as of 31 March 2025.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Deficit in respect of Unrestricted Funds

The Consolidated Statement of Financial Activities shows that in respect of unrestricted general funds, the net expenditure for the year was £(1.2)million (2023/24 – net income of £7.1million). After taking account of Transfers between funds, which largely relate to capital expenditure during the year and the actuarial loss, the net movement in unrestricted funds for the year was £(5.9)million (2023/24 - £(14.8) million, albeit this included designation of the £12.0million Strategic Investment Fund).

Given the expected continuation of challenging economic conditions, the RSC’s Budget for the year ended 31 March 2026 shows a further reduction in unrestricted reserves. In addition, the RSC has commenced repayment of its CRF loan at £1.5m per annum. Therefore the Board has responded by undertaking a strategic review of options to both increase its income from a range of different sources and ensure that its cost base is more flexible and responsive to the artistic vision and thus shows a reduction in underlying costs. The objective is to return the RSC to a position whereby it is generating positive overall returns and thus facilitating continued investment in the range of activities that it undertakes.

Income

The RSC operates under a mixed funding model. Our principal funding sources consist of box office income, grant from Arts Council England included in charitable activities, private donations, and other commercial and trading activities.

----- Start of picture text -----
Income (£000)
£1,904, 2%
£9,733, 12%
£6,687, 8%
£63,714, 78%
Charitable Activities Fundraising Trading Activities Investments
----- End of picture text -----

Box Office Income

The total income generated from our box office in 2024/25 was £46.4 million (compared to £58.2 million in 2023/24). This includes productions in Stratford, London, and other touring and visiting shows. The decrease of £11.8 million is mainly attributable to exceptional contributions in 2023/24, from Matilda the Musical following the film release and My Neighbour Totoro which enjoyed an extremely successful second season at the Barbican

For the 2024/25 season, productions in Stratford achieved 77% ticket capacity and 64% financial capacity, remaining broadly consistent with 2023/24 levels (79% ticket capacity and 64% financial capacity). In London, we reached 87% ticket capacity and 73% financial capacity, compared to 90% and 83% respectively in 2023/24.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Theatre Tax Credit

The TTR rates remained at 45% for non-touring and 50% for touring productions (on 80% of qualifying expenditure), generating £8.1m million in tax credit (£8.0 million in 2023/24). TTR rates will drop by 5% on 80% of qualifying expenditure starting from 1 April 2025.

Grant Income, Donations, and Legacies

In 2024/25, these sources contributed 27% of total income (23% in 2023/24).

ACE’s NPO funding remains at £15.3 million (£15.3 million in 2023/24) per year, representing 18.6% (16.6% in 2023/24) of total income. An additional £0.3 million (£0.5 million in 2023/24) was received under a three-year £1.3 million touring grant.

Fundraising achieved £6.7 million in total income (up from £5.4 million in 2023/24). This increase also reflects an extremely generous legacy from local philanthropist John Jennings of £2 million in the year. We have designated up to £1m of the legacy to support the Shakespeare curriculum programme in conjunction with a Foyle Foundation grant (£0.5 million in year and total £1.0 million), and the remaining amount for educational activities.

----- Start of picture text -----
Grants, Donations and Legacies (£000s)
£2,000, 9%
£674, 3%
£1,282, 6%
£2,731, 12%
£15,580, 70%
Grants Received Individuals Trusts and Foundations
Corporate Support Legacies and othe sources
----- End of picture text -----

Commercial Trading Income

Generated through trading activity and commercial subsidiaries (restaurants, shops, hire and licensing), total trading income rose to £7.7 million from £7.1 million. Most gains were in catering. However, contribution declined due to inflation and cost pressures, compared to 2023/24 and has not yet returned to pre-pandemic (2018/19) levels.

Expenditure

Total expenditure for 2024/25 was £83.7 million, compared to £87.9 million in 2023/24, the £4.2m reduction mainly due to above mentioned ‘exceptional’ productions in 2023/24.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Production and Theatre Operations

Costs amounted to £71.8 million (compared to £76.8 million in 2023/24), representing 95% of charitable activity expenses (96% last year). The reduction in costs in the year reflects in part, the impact of My Neighbour Totoro in 2023/24.

Included in the above are Support costs in 2024/25 of £6.2 million, which represents an increase of £0.3 million compared to 2023/24 (£5.9 million). These include function costs such as Finance, HR, IT, Governance, Public Affairs, and Estates, this makes up 8% (7% in 2023/24) of total expenditure. Please refer to Note 8 for a detailed comparison.

Commercial Trading Activities

Trading subsidiaries expenses rose to £6.4 million (from £5.6 million), covering restaurants, shops, and licensing, due to the ongoing economic challenges and inflationary pressures.

Pensions

The most recent actuarial valuation of the defined benefit pension scheme took place as at 31 March 2023 and was updated as of 31 March 2025 for FRS102 purposes by a qualified independent actuary. This resulted in an actuarial deficit of £0.4 million (2023/24 £0.2 million surplus) for the year. See note 22 in the accounts for further details.

Capital Expenditure

Total capital expenditure for the year amounted to £4.2 million (2023/24 - £1.6 million). This includes £2.0 million from the regular maintenance programme, covering new equipment, maintenance projects, and IT infrastructure upgrades and £2.2 million for additional major projects approved during the year. These major initiatives include the early phase of capital development at The Other Place, an upgrade of seating at the Swan Theatre, and the early-stage feasibility work for an Estates Masterplan exploring the consolidation of production teams into a more modern, efficient facility.

Balance Sheet

Net assets have reduced to £128.1 million as of 31 March 2025 from £130.5 million at 31 March 2024, primarily due to the operating deficit.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Total cash and liquid listed investments stand at £49.2 million at the year-end, down from £55.6 million in the prior year. This decrease was largely driven by capital expenditure and the operational deficit during the year.

Reserves Policy

The charity maintains a reserves policy to support financial resilience, ensure continuity of operations, and safeguard against unexpected events.

As of 31 March 2025, the RSC held total funds of £128.1millon (2023/24: £130.5 million). Of this amount, £75.4 million relates to restricted and endowment funds, which are not available for the general purposes of the charity. In addition, £49.6 million has been designated or otherwise committed, including £34.6 million held in a fixed asset fund, representing the balance of the net book value of unrestricted fixed assets at the year end, and a further £12.6m in a Strategic Investment Fund.

SORP-Compliant Free Reserves

In accordance with the Charities SORP, the charity defines free reserves as unrestricted funds that are freely available for general use, excluding:

As of 31 March 2025 RSC’s SORP-compliant free reserves stand at £3.1m (31 March 2024 £9.0m).

Unrestricted Designated Funds

The uses of SIF include:

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Restricted funds

Notably in 2024/25, we have received a £1 million pledge from the Foyle Foundation to support the implementation of a new Shakespeare curriculum programme in schools (restricted funds). £0.5 million was received in 2024/25 with the remainder expected to be received in 2025/26 once the performance criteria have been met.

In 2024/25, we have also been granted permission from the Garfield Weston Foundation to draw down £2.9 million from the Actors Endowment Fund to support the transformative provision of actor’s accommodation over the next 2 years. £1.4 million was used to purchase new accommodation and the remaining £1.5 million will be utilised to refurbish our existing properties to create additional/accessible accommodation for actors.

Target Free Reserve Level and Financial Management Framework (FMF)

The Board established a Financial Management Framework in 2023/24, which focuses on the availability of liquid reserves (defined as unrestricted cash and unrestricted investments) in the short to medium term. The definition doesn’t include the CRF loan which is repayable over 16 years through to 2041, because under the Framework, the RSC targets achieving annual operating surpluses which are sufficient to fund both annual maintenance capital expenditure and the annual payments of £1.5million due in respect of the CRF loan.

The Framework targets having a minimum level of liquid reserves of £16.0 million which is determined to be the amount required to cover unavoidable operating costs for approximately 3 months. Furthermore, the Board has designated a further £12.0million to be used as a Strategic Investment Fund.

As at 31 March 2025, the RSC had unrestricted listed investments of £21.0 million and unrestricted cash of £10.3 million and thus liquid reserves, as defined, of £31.3 million (31 March 2024 - £39.3 million). The reduction in the year reflects the operating deficit and higher levels of capital expenditure. As noted above, the RSC is taking steps to reduce the operating deficit and achieve at least the target surplus set out under the Framework and to maintain this minimum reserve level. In addition, any excess reserves above the target level can be utilised to support the RSC’s strategic aims, including investment in essential capital projects and initiatives that build long-term resilience and artistic impact.

Investment Policy

The RSC’s Investment Committee had prescribed the investment policy, which balances the need for capital protection with the desire to secure investment returns, while taking appropriate account of social, ethical, and environmental considerations. Professional third-party investment fund

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

managers are appointed to manage the investments on our behalf, and their performance is regularly monitored against established benchmarks.

Objectives have been set for each fund that are tailored to the long-term objectives of the funds. The long-term objectives for returns range from CPI in any market condition, to CPI plus 4%.

Overall performance in the year ended 31 March 2025 was worse than the objectives set for all funds. The Cazenove Sustainable Multi-Asset Fund returned 0.9%, and the Sarasin Climate Active Endowments Fund returned 2.9%. The external benchmark represented by the ARC Charity Steady Growth Index reported 2.7% for the same period.

Performance at the year ended 31 March 2025 was highly volatile, particularly towards the end of the financial year following the announcement of new U.S. tariffs, which resulted in an unrealised loss totalled £0.3 million at the end of the year. However, we generated separate investment income of £1.9 million during the year, which is consistent with 2023/24 (£1.8 million).

In December 2024, we also disinvested £2.9 million from the Cazenove Sustainable Multi-Asset Fund to support seasonal fluctuations in our operating activities. In addition, we crystallised £2.9 million in historical gains from the Garfield Weston Actors Fund and transferred the proceeds to cash to support the planned development of actors’ accommodation. Proceeds of £1.4 million were used in the year to purchase Arden House, a 11-room vacant building.

Most fixed asset investments are held for the long-term and we do not expect to realise any gains or losses in the short-term arising from the change in market value of these investments. The Committee also assesses the short-to-medium-term capital and cash requirements to ensure that sufficient funds are available to support the short-to-medium-term financial strategy, while maintaining an appropriate balance between risk, return, and exposure.

Remuneration Policy

We consider pay in relation to other similar organisations and use benchmark data when available to set remuneration, taking into account National Minimum Wage / Living Wage requirements.

Remuneration for the most senior roles requires Board approval and no senior manager is involved in deciding his or her own remuneration. These are set at a level to attract and retain senior managers of the quality required to run the organisation.

Salaries are reviewed annually at the end of the financial year and any increases applied consistently to managers and staff. The budgeted level of any annual pay award is approved by the Board and is set in relation to market inflation and the organisation’s financial position.

For financial year 2024/25, the pay award was agreed at 3.75%.

Principal Financial Risks

The RSC’s internal control systems are designed to meet the organisation’s specific needs by managing potential risks and providing reasonable assurance against the impact of those risks should they materialise.

The Risk, Audit and Finance Committee (RAFCo) reviewed the effectiveness of key internal controls, including operational, financial, and compliance controls, as well as risk management systems. This work was supported by an independent internal auditor. The Board reviews this framework at every meeting, alongside a broader annual review, which helps identify key areas of risk and implements appropriate controls and procedures to mitigate organisational, financial, and reputational exposure.

During 2024/25, the Board recalibrated its risk management approach. The risks assessed as having the highest likelihood and impact for the financial year ending 31 March 2025 were:

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Risks Identified Mitigation
Financial resilience and
medium-to-long-term
financial sustainability		 Approved three-year financial and strategic plans and budgets.
Financial Management Framework established and approved
by Board in March 2024, setting a holistic approach to
budgeting,
recognising
on-going
requirements
of
loan
repayments and maintenance/capex.
Liquid reserves maintained at appropriate level. Investment
Committee monitors the RSC's investment portfolio exposure
and reassesses performance.
Close industry relationships to ensure insight into proposed
changes in policy and legislation, engaging in sector co-
ordinated lobbying as required.
Use of flexible pricing with strong inventory management in
place to maximise ticket income.
Risk in organisational
capacity to deliver ambition		 Clearly defined business plan and strategic priorities in
departmental planning. Cross-organisational planning groups
being
established.
Revised
approach
to
presenting
management information to Board, facilitating accountability and
strategic challenge. Organisational activity mapping undertaken
as part of planning and development of organisational capacity
to align with the Business Plan with clear cost implications.
Risk of infrastructure
becoming inadequate to
support efficient service
delivery and flood risk.		 Departmental analyses of short-, mid- and long-term needs for
estates, IT, theatre tech equipment.
Rolling planned auditorium and stage works and building
maintenance programmes.
Increased investment in capex and maintenance over the past
two years.
Insurance cover inplace for Flood risk.
Cyber Security Risk Multi-layered approach to IT security with security monitoring
and intervention products implemented across the RSC IT
infrastructures. Annual internal and external penetration tests
conducted.
Audit completed covering Disaster Recovery, risk management,
user education and awareness, vulnerability management,
patch management, incident response plans and assessment
against learnings from cyber-attacks suffered by other
organisations.
Secure use of some Cloud-based systems implemented to
provide greater resilience and mutualisation of risk and
documentation of all IT systems and processes by the Network
Infrastructure Manager.

Use of Volunteers

The Corporation benefits from the valuable contributions of volunteers in the areas of audience counting, preparing exhibition material and events organised by Friends of the RSC.

In accordance with FRS 102 and the Charities SORP, the economic contribution of general volunteers is not recognised in the financial statements.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

REFERENCE AND ADMINISTRATIVE DETAILS

Principal Office Waterside Stratford-upon-Avon Warwickshire CV37 6BB Telephone +44 1789 296655 Fax +44 1789 294810 Email info@rsc.org.uk Website www.rsc.org.uk Registered Charity Number 212481

The Co-Artistic Directors, Executive Director and other senior staff to whom day to day management of the charity is delegated by the Governors were, for the period of this report and up to the date of approval of this Report:

Daniel Evans Co-Artistic Director Tamara Harvey Co-Artistic Director Andrew Leveson Executive Director (from 29 April 2024)

Other members of the Senior Leadership Team (“SLT”) at the date of approval of this Report:

Lisa Cunningham Director of External Affairs (from February 2025)
Sarah Ellis Director of Creative Innovation
Anna Fox Technical Director (from April 2025)
Rob Hayes Director of Commercial (from March 2025)
Bailey Lock Executive Producer (from January 2025)
Sandeep Mahal Deputy Executive Director (from November 2024)
Jacqui O’Hanlon MBE Director of Creative Learning and Engagement and Deputy Executive Director
Emma Power Director of Brand and Audience (from January 2025)
Kate Sirdifield People Director (from November 2024)
Despina Tsatsas Executive Producer (from September 2024)

Senior Leadership Team Members during the year but not at the date of report approval:

Victoria Cheetham Interim Executive Director (until June 24) Interim Executive Director (until June 24)
Chris Hill Director of Audiences and Marketing (until September 24)
Lisa Hughes Chief Finance Officer (until 1 August 2025)
Tomas Wright Technical Director (until December 24)
Griselda Yorke Executive Producer (until June 2024)
rofessional Advisers
External Auditors BDO LLP Two Snowhill, Birmingham, B4 6GA
Bankers Barclays Bank plc Charities Team, Floor 28, 1 Churchill Place,
London, E14 5HP
Investment Management Cazenove Capital Management 1 London Wall Place, London, EC2Y 5AU
Sarasin & Partners Juxon House, 100 St Paul’s Churchyard,
London EC4M 8BU
Solicitors Foot Anstey LLP Salt Quay House, 4 North East Quay, Sutton
Harbour, Plymouth, PL4 0BN
Jonathan Hull Associates Amadeus House, 27b Floral Street, London,
WC2E 9DP
Mills & Reeve LLP Botanic House, 100 Hills Road, Cambridge,
CB2 1PH

Professional Advisers

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Royal Shakespeare Company is incorporated under Royal Charter originally dated 31 October 1925 (as last amended on 6 March 2007) as “The Royal Shakespeare Company, Stratford-uponAvon”, and is a registered charity.

Following His Majesty the King’s Accession and a review of Royal Patronages, the palace announced in May 2024 that His Majesty King Charles III is our Patron.

Under its Charter, the Members of the RSC may comprise the Governors and a President, who may be elected by the Governors. The President was the then Prince of Wales and we will be considering the role of President in due course.

New Governors are elected by the Governors following consideration and recommendation by the Nominations Committee and approval by the Board.

The Company’s Annual General Meeting (AGM) is held in every calendar year, not more than 15 months following the previous AGM. Any other meetings of the Governors are known as Extraordinary Meetings. Governors act as ambassadors and advocates for the RSC and are drawn from a wide range of disciplines, bringing their experience and skills to the life of the RSC.

The Governors delegate the responsibility for running the RSC to members of the Board (the trustees) who are selected from the wider group of Governors. Members of the Board are elected by the Governors following consideration and recommendation by the Nominations Committee. There are three formally constituted Board Sub Committees comprising the Risk, Audit & Finance Committee (RAFCo), the Investment Committee (reporting into the RAFCo) and the Nominations Committee.

Details of the Governors and membership of the Board and its sub committees are shown on page 30.

The artistic leadership, implementation of strategy set by the Board, and the day-to-day management of the RSC are led by the Co-Artistic Directors and the Executive Director. They support and hold to account a group of senior managers who make up the Senior Leadership Team (SLT) (detailed on page 26).

Induction

Newly appointed members of the Board receive an induction programme covering general responsibilities and detailed information about the structure, governance and management of the RSC and attend induction meetings with members of the SLT. Board members receive regular updates about our activities, with six formal Board meetings each year.

Charity Governance Code

The Board supports and follows the principles of the Charity Governance Code. The Code is designed to support continuous improvement, and we evaluate our performance against the Code’s principles, outcomes and recommended practices to ensure robust governance throughout the organisation.

Management Committees

The RSC operates a number of management committees in order to ensure the successful delivery of its objectives e.g. the Safeguarding Committee. Some Board members attend management committees (e.g. Equity, Diversity, Justice and Inclusion Committee). In doing so, they attend as observers and not in a fiduciary role or as representatives of the Board, although they are then able to report to the Board on the activities of those committees.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Risk

Following recommendation by the RAFCo, a new Risk Management Framework was approved by the Board in July 2024 which aims to provide clarity on governance, processes and assurance, and enabling an agile approach to the monitoring and reporting of risk that works in tandem with the annual Budget process. This framework will be kept under regular review and updated as necessary, with Board approval.

Policies

Policies were reviewed and updated over the course of the year, including the Environmental, IT Security and Health & Safety Policies. There was also a wide scale review and updating of both Adult and Children’s Safeguarding Policies.

Internal Audit

A number of internal audits were completed including Cyber security, the RSC Collection and Archive and arrangements in relation to Freelancers. Follow up status of actions arising from the audits in previous years was also undertaken.

External Audit

Following a completive audit tender process during the year, the Board has invited RSM UK Audit LLP to be the Group’s auditors for the year ended 31 March 2026.

Appointments

Elections to, and retirements from, the Board and the Governors during the period of this report and to the date of its approval were:

Anna Sedgley and Jonathan Smith have been approved for recommendation to the Governors at the 2025 AGM for election as Governor and member of the Board.

Nemone Wynne-Evans was appointed to RAFCo with effect from 1 July 2025.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

CONSTITUTION, GOVERNANCE AND MANAGEMENT

Group Structure

The RSC’s subsidiary companies and their financial performance are shown in note 10(c) to the accounts.

RSC Enterprise Limited is a wholly owned subsidiary of the RSC that operates the commercial activities of the Company, which include the merchandising of goods relating to the Royal Shakespeare Company, catering and the operation of the nursery.

RSC Estates Limited is a wholly owned subsidiary of the RSC that holds a 50% share in a joint venture, Arden Hotel Waterside LLP. This joint venture operates the Arden Hotel in Stratford-uponAvon.

RSC Pre-Productions Limited is a wholly owned subsidiary of the RSC and is responsible for producing, running and closing productions providing operational, technical, production and artistic services to the RSC.

The RSC controls a company based in the USA called Matilda North America LLC. The remaining interest is held by Dodgers Properties LLC. Matilda North America LLC is the general partner of two limited partnerships based in the USA: Matilda on Broadway LP, the entity that produced the Broadway production of Matilda and Matilda Acrobat Tour LP, the entity that produced the North American Tour. Both these tours finished in the year ended 31 March 2018.

RSC Matilda US Limited holds investments in Matilda on Broadway LP and Matilda Acrobat Tour LP.

RSC Touring Limited is a wholly owned subsidiary responsible for producing, running and closing productions, which include Matilda the Musical in the United Kingdom and Ireland, and providing operational, technical, production and artistic services to the RSC.

Hathaway Productions Limited is a wholly owned subsidiary of the RSC, established for the purposes of operating commercial transfers.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

GOVERNORS, BOARD AND SUB COMMITTEE MEMBERSHIP DURING THE YEAR AND UP TO APPROVAL OF THIS REPORT Patron

His Majesty King Charles III

Name Governor Board Committee Membership
Shriti Vadera  (Chair) NC, IC, RAFCo
Sir Mark Thompson  (Deputy Chair) NC
Geoff Barton (appointed Sept 2024)
Sir David Bell KBE
Anita Bhalla OBE NC
Elizabeth Boissevain
Daniel Evans
Tamara Harvey
Sir Nicholas Hytner
Bruce Kovner
Andrew Leveson (appointed Sept 2024)
Professor Ruru Li
Andrew Miller MBE  (Deputy Chair) NC (chair)
Sandie Okoro
Amanda Parker NC (appointed Jul 2024)
Winsome Pinnock NC
Clare Reddington NC
Sir Antony Seldon
Professor Emma Smith (appointed Sept 2024)
Mark Smith RAFCo (chair), IC (chair)
Ian Squires  (retired Dec 2024)
Sue Stapely (deceased)
David Tennant
Justine Themen
Professor Ayanna Thompson
Liz Vernon RAFCo
Lucy Williams  (retired Dec 2024) RAFCo (retired Dec 2024)
Andrew Clayton RAFCo
Tilly Franklin IC
Andy Halls RAFCo
John Hornby IC (retired Apr 2024)
David Loudon IC (retired May 2025)
Quintin Price IC
Anna Sedgley RAFCo (appointed Jan 2025)
Nemone Wynne-Evans RAFCo (appointed July 2025)

Winsome Pinnock was on leave of absence from 17 November 2023 until 31 August 2024. Ayanna Thompson was on leave of absence from 1 May 2024 to 20 March 2025. RAFCo – Risk, Audit & Finance Committee;

IC – Investment Committee;

NC – Nominations Committee

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Emeritus Chair

Sir Geoffrey Cass

Honorary Emeritus Governors

Lady Anderson Sir Stanley Wells

Artists’ Associate

Dame Susie Sainsbury DBE

Honorary Governors Neil Benson OBE David Burbidge CBE (retired Dec 2024) Michael Crystal KC Miranda Curtis CMG Tony Hales CBE Charles Holloway Ian Laing Dr Douglas McPherson Charlotte Heber-Percy Lord Willoughby de Broke - Stratford Town Mayor (Ex officio) - Chair of Stratford District Council (Ex officio) ’ - CEO of Shakespeare s Birthplace Trust (Ex officio) - Director of the Shakespeare Institute (Ex officio)

GOING CONCERN

We continue to work in a financial and operational context which we know can quickly change, where there are significant financial risks, primarily the crystallised and ongoing risk of the cost-ofliving pressures and future estate capital development and maintenance needs.

An assessment of liquidity

Unrestricted funds, including both operations unrestricted and unrestricted designated funds, totalled £52.7m ( 2024: £55.3m ).

Unrestricted cash at bank and in hand, together with unrestricted fixed asset investments which are readily available liquid investments, totalled £31.3m (2024: £39.3m ).

As part of the Board’s consideration of Going Concern, detailed cash flow forecasts have been prepared which show that a strong opening cash position, along with cautious income assumptions and known commitments give sufficient headroom to mitigate potential risks.

The Trustees have considered the current financial position of the company, and its future cash flows on both a base case scenario and four additional cases, where the box office income is 2%, 4%, 5% and 10% lower than the base case, for a period of at least 12 months from the date of signing these accounts. In preparing the base case assessment, management and the Trustees have applied judgement, particularly in relation to the assumed box office income achievable from productions and the impact of inflation over the period.

There remains a risk of audience levels being impacted by cost-of-living pressures affecting consumer spending patterns and audience behaviours. In addition, inflationary pressure on our costs, notably people, continues to be managed carefully.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Theatre Tax Relief continues to provide welcome support for the RSC’s work, and it is appreciative of the certainty provide by the announcement of the permanent rates from 1 April 2025.

Despite these risks, the modelling shows that the RSC continues to have appropriate levels of liquidity headroom to be able to continue as a going concern.

An assessment of performance

The financial review has set out the overall performance net (expenditure)/income, and the deficit in the current year before transfers.

The prior year 2023/24 benefited from significant exceptional income contributions from productions such as Matilda the Musical and My Neighbour Totoro . In contrast, during 2024/25, we have focused on rebuilding our programme in Stratford and London, fostering international collaborations, and making strategic investments. In March 2025 we transferred My Neighbour Totoro to the Gillian Lynne Theatre and started the preparation for Matilda the Musical UK Tour launching in October 2025.

Arts Council England funding

The level of grant income funding from ACE for the three years from 2023/24 to 2025/26 was confirmed at £15.3m per annum in November 2022 and has been extended to 2026/27 which maintains the level at that received in recent years plus a confirmed 1.61% inflation uplift in 2025/26. We are extremely grateful for this continued and essential support.

Our application set out our proven track record of delivery against ‘Let’s Create’ and our future plans demonstrate a re-imagined commitment to being a creative and learning organisation, which inspires change. Our planned activities over this period, which are supported by the ACE NPO grant income, include:

This is all alongside presenting large-scale Shakespeare productions, Shakespeare tours, a bold, and a diverse programme including new writing.

The Trustees’ Report was approved by the Board on 1 September 2025, authorised for issue, and signed on its behalf by:

Shriti Vadera

RSC Chair of the Board

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

STATEMENT OF THE BOARD’S RESPONSIBILITIES IN RESPECT OF THE TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group and charity for that period.

In preparing these financial statements, the Trustees are required to:

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. 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.

Financial statements are to be published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL SHAKESPEARE COMPANY

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of The Royal Shakespeare Company (“the Parent Charity”) and its subsidiaries (“the Group”) for the year ended 31 March 2025 which comprise the Consolidated statement of financial activities, the Corporation statement of financial activities, the Balance sheets, the Consolidated statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Group and the Parent Charity in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions related to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Parent Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL SHAKESPEARE COMPANY cont 2

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion;

Responsibilities of Trustees

As explained more fully in the Statement of the Board’s responsibilities in respect of the Trustees’ report and the financial statements, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group’s and the Parent Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the Parent Charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

35

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL SHAKESPEARE COMPANY cont 3

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Non-compliance with laws and regulations

Based on:

we considered the significant laws and regulations to be United Kingdom Generally Accepted Accounting Practice, Charities SORP, Charities Act 2011 and tax legislation.

The Group is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be health and safety legislation, employment law and data protection.

Our procedures in respect of the above included:

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

36

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL SHAKESPEARE COMPANY cont 4

Based on our risk assessment, we considered the areas most susceptible to fraud to be posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates.

Our procedures in respect of the above included:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

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. Our audit work has been undertaken so that we might state to the Charity’s Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Samantha Lifford (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor Birmingham, UK Date: 01 September 2025

BDO LLP is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

37

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Consolidated statement of financial activities for the year ended 31 March 2025

for the year ended 31 March 2025
Operations/
Unrestricted		 Restricted
unrestricted
designated		 Restricted
Endowment
Total funds		 Total funds
Note funds
funds		 funds funds 2025 2024
£’000 £’000 £’000 £’000 £’000 £’000
Income and endowments from:
Charitable activities
Performance related grants 2 15,260 - 320 - 15,580 15,773
Income from productions, tours and theatre
operations 3 46,424 - - - 46,424 58,167
Creative learning and engagement 1,210 - 500 - 1,710 1,738
Donations and legacies 4 4,084 2,000 603 - 6,687 5,442
Other trading activities 10(c)
7,726		 - - - 7,726 7,089
Share of net profit in joint ventures 10(a)
93		 - - - 93 -
Investments 5 1,688 - 4 212 1,904 1,830
Licensing of rights 1,914 - - - 1,914 2,083
Total 78,399 2,000 1,427 212 82,038 92,122
Expenditure on:
Charitable activities
Productions, tours and theatre operations 3 (67,904)
(2,966)		 (943) - (71,813) (76,781)
Creative learning and engagement (2,786)
(23)		 (791) - (3,600) (3,562)
Raising donations and legacies (1,869)
-		 - - (1,869) (1,716)
Other trading activities (6,376)
-		 - - (6,376) (5,564)
Share of net loss in joint ventures 10(a)
-		 - - - - (223)
Investment management costs (57)
-		 (2) - (59) (72)
Total 7 (78,992)
(2,989)		 (1,736) - (83,717) (87,918)
Net (losses) / gains on investment assets 10(b)
(634)
-		 9 294
 (331) 2,300
Net (expenditure) / income (1,227)
(989)		 (300) 506 (2,010) 6,504
Transfers between funds 18 (4,231)
4,223		 3,179 (3,171) - -
Net (expenditure) / income after transfers (5,458)
3,234		 2,879 (2,665) (2,010) 6,504
Other recognised (losses) / gains
Actuarial (losses) / gains on defined benefit
pension scheme 22 (399)
-
 -
 -
 (399)
 183
Net movement in funds (5,857)
3,234		 2,879 (2,665) (2,409) 6,687
Reconciliation of funds
Total funds brought forward 18 8,951
 46,351
 60,828
 14,390
 130,520
 123,833
Total funds carried forward 18 3,094
 49,585
 63,707
 11,725
 128,111
 130,520

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 42 to 82 form part of these accounts.

Prior year comparatives are shown in detail on page 83.

38

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Corporation statement of financial activities for the year ended 31 March 2025

for the year ended 31 March 2025
Operations/
Unrestricted		 Restricted
unrestricted
designated		 Restricted
Endowment
Total funds		 Total funds
Note funds
funds		 funds funds 2025 2024
£’000 £’000 £’000 £’000 £’000 £’000
Income and endowments from:
Charitable activities
Performance related grants 2 15,260 - 320 - 15,580 15,773
Income from productions, tours and theatre
operations 3 80,088 - - - 80,088 99,034
Creative learning and engagement 1,210 - 500 - 1,710 1,738
Donations and legacies 4 4,084 2,000 603 - 6,687 5,442
Other trading activities 10c 2,463 - - - 2,463 2,879
Investments 5 1,688 - 4 212 1,904 1,830
Licensing of rights 1,909 -
 - - 1,909 2,078
Total 106,702 2,000
 1,427 212 110,341 128,774
Expenditure on:
Charitable activities
Productions, tours and theatre operations 3 (101,742) (2,966) (943) - (105,651) (118,128)
Creative learning and engagement (2,786) (23) (791) - (3,600) (3,562)
Raising funds
Raising donations and legacies (1,883) - - - (1,883) (1,732)
Other trading activities (897) - - - (897) (883)
Investment management costs (57) -
 (2) - (59) (72)
Total 7 (107,365) (2,989)
 (1,736) - (112,090) (124,377)
Net (losses) / gains on investment assets 10(b) (634) -
 9 294
 (331) 2,300
Net (expenditure) / income (1,297) (989) (300) 506 (2,080) 6,697
Transfers between funds 18 (4,231) 4,223
 3,179 (3,171) - -
Net (expenditure) / income after transfers (5,528) 3,234 2,879 (2,665) (2,080) 6,697
Other recognised (losses) / gains
Actuarial (losses) / gains on defined benefit
pension scheme 22 (399)
 -
 -
 -
 (399)
 183
Net movement in funds (5,927) 3,234 2,879 (2,665) (2,479) 6,880
Reconciliation of funds
Total funds brought forward 18 8,306
 46,351
 60,828
 14,390
 129,875
 122,995
Total funds carried forward 18 2,379
 49,585
 63,707
 11,725
 127,396
 129,875

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 42 to 82 form part of these accounts.

Prior year comparatives are shown in detail on page 84.

39

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Balance sheets at 31 March 2025

Note
Fixed assets
Tangible assets
9
Investments:
Investment in joint ventures
10(a)
Other investments
10(b)
Total fixed assets
Current assets
Stock and work in progress
11
Debtors
12
Cash at bank and in hand
13
Total current assets
Creditors:amounts falling due within one year
14
Net current assets
Total assets less current liabilities
Creditors:amounts falling due after more than one year
15
Provisions for liabilities
16
Net assets excluding pension liability

Defined benefit pension scheme liability
22
Total net assets
The funds of the Charity:
Endowment funds
18
Restricted funds
18
Unrestricted funds
General operating fund
18
Pension reserve
18
Designated funds
18
Total unrestricted funds
Total funds		 Consolidated
2025
2024
£’000
£’000
95,055
93,214
2,760
2,667
33,453
39,689

36,213
42,356

131,268
135,570
7,005
1,702
14,026
17,603
15,745
15,871

36,776
35,176
(19,223)
(18,662)

17,553
16,514

148,821
152,084
(18,962)
(20,265)
(283)
(283)

129,576
131,536

(1,465)
(1,016)

128,111
130,520

11,725
14,390
63,707
60,828
4,559
9,967
(1,465)
(1,016)
49,585
46,351

52,679
55,302

128,111
130,520		 Corporation
2025
2024
£’000
£’000
95,055
93,214
-
-
36,453
42,689

36,453
42,689

131,508
135,903
1,711
1,507
15,386
17,910
12,999
13,303

30,096
32,720
(13,498)
(17,184)

16,598
15,536

148,106
151,439
(18,962)
(20,265)
(283)
(283)

128,861
130,891
(1,465)
(1,016)

127,396
129,875

11,725
14,390
63,707
60,828
3,844
9,322
(1,465)
(1,016)
49,585
46,351

51,964
54,657

127,396
129,875

The notes on pages 42 to 82 form part of these accounts. These accounts were approved by the Board on 1 September 2025, authorised for issue and signed on its behalf by:

Shriti Vadera – Chair of the Board of Trustees

40

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Consolidated statement of cash flows for the year ended 31 March 2025

Note
Net cash (used in) operating activities
Cash flow from investing activities
Interest and dividend income received
Purchase of tangible fixed assets
Movement in cash in investment portfolio
Purchase of investments
Sale of investments
Repayment of loan to joint venture
Net cash generated from investing activities
Cash flow from financing activities
Loan receipt
Cultural Recovery Fund Loan repayment
NESTA loan repayment

Net cash (used in) / generated from financing activities

Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
13		 Consolidated
2025
2024
£’000
£’000
(2,907)
(1,458)
1,904
1,830
(4,237)
(1,551)
(51)
220
-
(3,306)
5,956
3,190
150
-

3,722
383
-
600
(741)
-
(200)
-

(941)
600

(126)
(475)
15,871
16,346

15,745
15,871

Reconciliation of net (expenditure) / income to net cash flow from operating activities

Net (expenditure) / income for the reporting period
(as per the Statement of Financial Activities)
Adjustments for:
Depreciation and impairment charges
Loss on disposal of tangible fixed assets
(Gain) / loss from share of joint venture
Losses/(gains) on investments
Interest on repayable finance
Dividends and interest income
(Increase) / decrease in stock
Increase / (decrease) in debtors
(Decrease) / increase in creditors
Pension contributions paid
Past employment benefits interest charge
Net cash (used in) operating activities		 Consolidated
2025
2024
£’000
£’000
(2,010)
6,504
2,224
2,150
172
-
(93)
223
331
(2,300)
349
405
(1,904)
(1,830)
(5,303)
570
3,427
(7,188)
(150)
1,067
-
(1,140)
50
81

(2,907)
(1,458)

41

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes

(forming part of the accounts)

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) Legal status

The Royal Shakespeare Company is incorporated under Royal Charter originally dated 31 October 1925 (as last amended on 6 March 2007) as “The Royal Shakespeare Company, Stratford-upon-Avon”, and it is a registered charity in England and Wales with registration number 212481. Its registered office is The Royal Shakespeare Theatre, Waterside, Stratford-upon-Avon, Warwickshire, CV37 6BB.

(b) 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective January 2019) – (“Charities SORP (FRS 102)”), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The Royal Shakespeare Company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements are presented in sterling which is also the functional currency of the Corporation.

The Corporation has taken advantage of the exemption under FRS 102 paragraph 1.12(b) from preparing a statement of cash flows on the basis that it is an ultimate parent undertaking which prepares a consolidated statement of cash flows.

(c) Preparation of the accounts on a going concern basis

In preparing the financial statements, the Trustees have considered whether the going concern basis of preparation remains appropriate. To make this assessment cash forecasts have been prepared on a monthly basis through to September 2026, which is a period of at least 12 months from the date of approval of these financial statements.

The Trustees have considered the current financial position of the company, and its future cash flows on both a base case and a worst-case basis for a period of at least 12 months from the date of signing these accounts. In preparing the base case assessment, management and the Trustees have applied judgement particularly in relation to the assumed box office income achievable from productions, and the impact of inflation over the period. There remains risk of audience confidence levels being impacted by the continued cost of living pressures which could affect consumer spending patterns.

Based on this assessment, the Trustees are satisfied that the charity and group have sufficient resources to continue as a going concern for at least 12 months from the date of signing the financial statements. The Trustees therefore consider that it is appropriate for the financial statements to be prepared on the going concern basis.

(d) Basis of consolidation

The consolidated financial statements of the Corporation comprise the financial statements of the charity and its subsidiary companies for the period from 1 April 2024 to 31 March 2025 (2024 year ended 31 March 2024) . The consolidation has been prepared using the purchase method of accounting on a line by line basis. Under this method acquired subsidiaries are included from the date of acquisition.

The Consolidated Financial information reflects the income and expenditure, cash flows and assets and liabilities for the RSC and all of its subsidiaries and its joint venture (together the “group”). Transactions between the RSC (the “Corporation”) and the other entities in the group are eliminated on consolidation.

The Consolidated Statement of Financial Activities for the year ended 31 March 2025 is shown on pages 38 and 39 with the Comparative Consolidated Statement of Financial Activities for the year ended 31 March 2024 on pages 83 and 84.

42

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued)

(forming part of the accounts)

1 Accounting policies (continued)

(d) Basis of consolidation (continued)

The Corporation Financial Information reflects the income and expenditure and assets and liabilities for the RSC only. The RSC enters into contractual arrangements with its subsidiaries (most notably RSC Pre Productions Limited) under which the subsidiaries provide services to the RSC in producing and running theatrical productions. However, these subsidiaries use staff and other resources provided by the RSC and are charged by the RSC for these services. Accordingly, the income and expenditure of the RSC as a standalone entity reflect the gross income and expenditure from both external and intra group transactions.

Corporation Statement of Financial Activities for the year ended 31 March 2025 is shown on page 39 with the Comparative Corporation Statement of Financial Activities for the year ended 31 March 2024 shown on page 84.

The results of the trading companies are disclosed in note 10.

The consolidated accounts include the 50% share in Arden Hotel Waterside LLP acquired during the year ended 31 March 2010 by RSC Estates Limited, a wholly owned subsidiary of the Corporation. Accounting for the joint venture is done using the equity method.

The consolidated financial statements include the group share of Matilda on Broadway LP, which is the entity producing Matilda The Musical on Broadway in New York and Matilda Acrobat Tour LP, which is the entity producing the North American touring production of Matilda The Musical (together “the LPs”). Whilst Matilda North America LLC is a general partner of the LPs and RSC Matilda US Limited has investments in the LPs, the RSC does not have control of them due to restrictions around the operation of the LPs and rights of other investors. However, the RSC is considered to have an interest in both LPs and has therefore recognised the income due from the LPs measured according to the terms of the Limited Partnership agreements and associated agreements. Both these tours have now finished and once the final costs have been settled, the entities will become dormant.

(e) Income

All income is accounted for at the fair value of the consideration received or receivable when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met and it is probable that the income will be received, and the amounts can be measured reliably. Income is deferred if it is received in advance of the accounting period in which services would be rendered (for example in advance of a theatrical performance) and if a donor has specified that the income must be used in future accounting periods.

Income from Government and other grants

Income from Government and other grants, whether capital or revenue, is credited to the Statement of Financial Activities 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. Income is deferred only if these criteria are not met or when the provider specifies that the grant must be used in future periods.

Income from charitable activities

Income from charitable activities comprises income from box office and publications, education, partnerships and hire of costumes and props and is accounted for on an accruals basis excluding VAT. This category also includes grants specifically for the provision of services provided as part of charitable activities, which are recognised in line with the income from Government and other grants policies. It also includes income from co-productions, which is recognised on an accruals basis excluding VAT and in accordance with the terms of the co production agreements.

Amounts due to the group companies in respect of the Theatre Tax relief are included in the financial year to which the claim relates. These amounts are recognised in income, rather than as a tax credit or recovery of expenditure, as the intention and nature of the Theatre Tax Credit is akin to government grant income.

43

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued)

(forming part of the accounts)

1 Accounting policies (continued)

(e) Income (continued)

Donations and legacy income

Donations are included in the Statement of Financial Activities when the charity has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably. Tax recoverable under the Gift Aid scheme is accrued on donations, where this is an entitlement. For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted or, the estate has been finalised, and notification has been made by the executors to the Corporation that a distribution will be made. Receipt of a legacy, in whole or part, is only considered probable when the amount can be measured reliably, and the charity has been notified of the executors’ intention to make a distribution. Where legacies have been notified to the Corporation or the Corporation is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Donations in kind

Donations in kind are recognised as income when the Corporation has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the Corporation of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised. On receipt, donations in kind are recognised on the basis of the value of the gift to the Corporation which is the amount the Corporation would have been willing to pay to obtain items of equivalent economic benefit on the open market.

Trading income from subsidiary undertakings

All income is accounted for on an accruals basis, net of VAT when the charity has entitlement to the funds, any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably.

Other trading income and licensing of rights

Other trading income relates to sponsorship, membership income, property letting and other income, none of which are individually material.

All income is accounted for on an accruals basis, net of VAT when the charity has entitlement to the funds, any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably.

Trading income from subsidiary undertakings

All income is accounted for on an accruals basis, net of VAT when the charity has entitlement to the funds, any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably.

Other trading income and licensing of rights

Other trading income relates to sponsorship, membership income, property letting and other income, none of which are individually material.

All income is accounted for on an accruals basis, net of VAT when the charity has entitlement to the funds, any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably.

Income from Investments

Income from investments comprises the returns receivable on investments for the year, including recoverable tax and interest receivable on cash balances. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity. This is normally on notification of the interest paid or payable by the bank or financial institution.

Endowment fund income

Any income earned from a capital endowment fund may be used for general purposes unless specifically restricted by the endowment.

44

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

1 Accounting policies (continued)

(f) Fund accounting

The Corporation has various types of funds for which it is responsible, and which require separate disclosure. These are as follows:

Unrestricted funds

These are funds which are expendable at the discretion of the Board in furtherance of the objects of the Corporation.

Designated funds

The Corporation may at its discretion set aside unrestricted funds for specific purposes. If no longer required, designated funds are reclassified as undesignated unrestricted funds.

Endowment funds

Such funds are given to the Corporation where the income may be used for general or specific purposes, but the capital must be retained. Where the donor has permitted the Corporation to use the capital for general or specific purposes at a future date, these are disclosed separately as expendable endowments.

Restricted funds

These are earmarked by the donor for specific purposes within the overall aims of the organisation. The donation must be utilised in accordance with the specific purposes.

(g) Expenditure and irrecoverable VAT

All 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:

Any VAT incurred which is irrecoverable is recognised as a cost against the activity for which the expenditure was incurred or allocated on the same basis.

(h) Allocation of support costs

Support costs are those functions that assist the work of the Corporation but do not directly undertake charitable activities. Support costs include back-office costs, finance, HR, IT and governance costs which support the Corporation’s artistic programme and activities. These costs have been allocated between raising funds and expenditure on charitable activities. The basis on which support costs have been allocated is set out in note 8.

45

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

1 Accounting policies (continued)

(i) Foreign currencies

Transactions denominated in foreign currencies are translated into Sterling and recorded using the exchange rate at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated into Sterling at the exchange rates ruling at the relevant balance sheet date and the gains and losses on translation are included in the Statement of Financial Activities in the category to which the cost and income relates. The assets and liabilities of subsidiary foreign enterprises are translated into Sterling at the exchange rate ruling at the relevant balance sheet date, whilst income and expenditure is translated using an average exchange rate for the period. Gains and losses on translation of foreign enterprises are included in the Statement of Financial Activities.

(j) Leases

An asset and corresponding liability are recognised for leasing arrangements that transfer to the group substantially all the risks and rewards incidental to ownership (“finance leases”). The amount capitalised is the fair value of the leased asset or, if lower, the present value of the minimum lease payments payable during the lease term, both determined at inception of the lease. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the Statement of Financial Activities so as to produce a constant periodic rate of interest on the remaining balance of the liability.

All other leases are operating leases, and the annual rentals are charged to the Statement of Financial Activities on a straight-line basis over the term of the lease.

(k) Tangible fixed assets

Fixed assets are stated at historical cost. The amount included under freehold theatres (see note 9) includes the original cost of construction and fitting out of The Royal Shakespeare Theatre, Swan Theatre and The Other Place together with the subsequent capital cost of improvements. With the exception of motor vehicles, assets purchased with a value below £50,000 are not capitalised.

Depreciation is provided in order to write off the cost less residual value evenly over the estimated lives of the assets. The rates of depreciation are as follows:

Asset Category Annual Rate
Freehold theatres 1 – 1.6%
Other properties 1 - 20%
Motor vehicles 25%
Other equipment, fixtures and fittings 4 - 33%
Assets under the course of construction 0%

Freehold land is not depreciated.

Assets under the course of construction represent the costs incurred on the redevelopment of theatres and workshops and equipment within those buildings. These assets are transferred to the appropriate category upon completion and depreciated in accordance with this policy.

An assessment is made at each reporting date of whether there are indications that a fixed asset may be impaired or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the Corporation estimates the recoverable amount of the asset. Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-inuse, are recognised as impairment losses. Impairments of revalued assets are treated as a revaluation loss. All other impairment losses are recognised in the Statement of Financial Activities. Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in the Statement of Financial Activities. On reversal of an impairment loss, the depreciation or amortisation is adjusted to allocate the asset’s revised carrying amount (less any residual value) over its remaining useful life.

46

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

(k) Tangible fixed assets

Heritage assets

The corporation maintains a collection that was started in 1897 by Charles Edward Flower, consisting of costumes, artworks, props and objects as well as an archive of papers which include a copy of Shakespeare’s first folio. Some of the assets within the collection have artistic qualities and contribute to knowledge and culture through their retention. These assets, valued at £9.5m for insurance purposes, are therefore considered to be Heritage assets.

These assets are stated at historical cost 31 March 2025: £Nil (2024: £Nil) . Most of these assets were donated to the charity many years ago. Expenditure required to preserve or prevent deterioration of individual collection item is recognised in the Statement of Financial Activity when it is incurred.

(l) Investments

Current asset investments comprise short term investments that can be readily converted into cash and other readily convertible cash funds and unlisted investments in joint ventures that are not held for the continuing long-term benefit of the Corporation.

The group holds investments in subsidiaries and joint ventures as well as listed investments. Investments in subsidiaries and joint ventures in the form of equity are stated in the Corporation’s accounts at cost less any impairment provisions and are accounted for using the equity method of accounting in the consolidated financial statements.

Listed investments are stated at their fair value as at the balance sheet date by reference to their bid value. All movements in value arising from a change in the fair value of an investment are shown in the Statement of Financial Activities.

(m) Stocks and work in progress

Stocks and work in progress which represent goods for resale or direct costs of projects in progress are stated at the lower of cost and net realisable value. Where a show is expected to make a surplus, preproduction costs are included in work in progress and charged to the Statement of Financial Activities over the run of the show to which they relate.

(n) Debtors

Trade debtors and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

(o) Cash and cash equivalents

Cash and cash equivalents include cash and short term highly liquid assets with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar accounts held as part of the Corporation’s treasury management activities. They exclude any such assets held as part of fixed asset and endowment asset investments.

(p) Creditors and provisions

Creditors payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Provisions are recognised where the group 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 are normally recognised at their settlement amount after allowing for any trade discounts due and in the case of provisions after discounting to present value to reflect the time value of money and risks specific to the obligation where material.

47

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

1 Accounting policies (continued)

(q) Financial Instruments

Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument and are offset only when the charity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets

Debtors, amounts due from subsidiary undertakings and other receivables

Those which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. They are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

A provision for impairment is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in the Statement of Financial Activity for the excess of the carrying value over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in the Statement of Financial Activities.

Current asset investments and short-term deposits

Unlisted investments are measured at fair value. The Corporation has concluded that recoupment of these instruments is imminent and therefore that due to their short-term nature their fair value is not materially different from their settlement amount. Accordingly, these financial instruments are carried at their settlement amount.

Financial liabilities and equity

Creditors, amounts due to subsidiaries and other payables

Those payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Borrowings

Borrowings are initially recognised at fair value (net of transaction costs) and subsequently carried at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the Statement of Financial Activities over the period of the borrowings using the effective interest method.

Derecognition of financial assets and liabilities

A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

(r) Taxation

In accordance with Section 505 Income and Corporation Taxes Act 1988 the Corporation is exempt from the requirement to pay corporation tax on activities carried out for charitable purposes.

In the subsidiaries the policy is to pay all taxable profits to The Royal Shakespeare Company by way of Gift Aid. No deferred tax liability arises in the financial statements. Deferred tax assets are not recognised in the financial statements.

The Group receives creative industries tax credits from HMRC. These are shown as part of income from productions, tours and theatre operations.

48

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

1 Accounting policies (continued)

(s) Pensions

Defined benefit scheme

The Corporation operates a defined benefit pension scheme under which benefits are based on final pensionable pay. The assets of the scheme are held separately from those of the Corporation in separate trustee administered funds.

Full actuarial valuations, by a professionally qualified actuary, are obtained at least every three years and updated to reflect current conditions at each balance sheet date. The pension scheme assets are measured at fair value. The pension scheme liabilities are measured using the projected unit method and discounted at the rate of return on a high-quality corporate bond of equivalent term and currency.

The difference between the fair value of assets and the present value of accrued liabilities is shown as an asset or liability in the balance sheet. A pension scheme asset is only recognised on the balance sheet to the extent that the Corporation has the ability to recover the surplus either through reduced contributions in the future or through refunds from the scheme. A pension scheme liability is recognised to the extent that the Corporation has a legal or constructive obligation to settle the liability.

Changes relating to current or past service costs, gains and losses on settlements and curtailments and pension finance costs are allocated to appropriate expenditure categories in the Statement of Financial Activities. Actuarial gains and losses arising are included in the Statement of Financial Activities under the heading “Actuarial gains on defined benefit pension scheme”.

Net interest on the defined benefit asset/liability comprises the interest cost on the defined benefit obligation and interest income on the plan assets, calculated by multiplying the fair value of the plan assets at the beginning of the period by the rate used to discount the benefit obligation and is recognised as net income/expenditure.

Defined contribution schemes

The pension costs charged in the Statement of Financial Activities represent the amount of contributions payable to the scheme in respect of the year, to individuals’ personal pension schemes and to Equity and Musicians pensions schemes.

(t) Judgements and key sources of estimation uncertainty

Critical estimates in applying the group and Corporation’s accounting policies are as follows:

Defined benefit pension scheme

The Corporation operated a funded defined benefit pension scheme, the Royal Shakespeare Theatre Pension Scheme, providing benefits based on final pensionable pay. The latest actuarial valuation took place on 31 March 2023 and was updated for FRS 102 purposes to 31 March 2025 by a qualified independent actuary. Judgement is required in assessing the appropriateness of actuarial assumptions used by the actuary. The assumptions have been reviewed by management and they are considered reasonable.

Critical judgements in applying the group and Corporation’s accounting policies are as follows:

No critical judgements were made in applying the groups accounting policies.

49

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued)

(forming part of the accounts)

2
Performance related grants
Consolidated and Corporation
Unrestricted
£’000
Restricted
£’000
Income from charitable activities
Arts Council England - Revenue grant
15,260
320
15,260
320		 Total
2025
£’000
Total
2024
£’000
15,580
15,773

15,580
15,773

3 Income and expenditure from productions, tours and theatre operations

Consolidated
Unrestricted
£’000
Designated
£’000
Restricted
£’000
Income from productions, tours and theatre operations:
Box office (including London)
37,755
-
-
Theatre tax relief
8,134
-
-
Touring income
191
-
-
Other income from theatre operations
344
-
-
46,424
-
-		 Total
2025
£’000
Total
2024
£’000
37,755
49,011
8,134
7,970
191
755
344
431
46,424
58,167
Unrestricted
£’000
Designated
£’000
Restricted
£’000
Productions and theatre operations expenditure:
Productions
(52,522)
-
(186)
Theatre operations
(10,530)
(2,966)
(757)
Sales and marketing costs
(4,852)
-
-
(67,904)
(2,966)
(943)		 Total
2025
£’000
Total
2024
£’000
(52,708)
(59,271)
(14,253)
(13,367)
(4,852)
(4,143)
(71,813)
(76,781)
Corporation
Unrestricted
£’000
Designated
£’000
Restricted
£’000
Total
2025
£’000
Income from productions, tours and theatre operations:
Box office (including London)
34,927
-
-
34,927
Productions and commissioning agreements
44,196
-
-
44,196
Touring income
191
-
-
191
Other income from theatre operations
774
-
-
774
80,088
-
-
80,088
Unrestricted
£’000
Designated
£’000
Restricted
£’000
Total
2025
£’000
Productions and theatre operations expenditure:
Productions (including commissioning fees)
(86,359)
-
(186)
(86,545)
Theatre operations
(10,530)
(2,966)
(757)
(14,253)
Sales and marketing costs
(4,853)
-
-
(4,853)
(101,742)
(2,966)
(943)
(105,651)		 Total
2024
£’000
44,772
52,965
755
542
99,034
Total
2024
£’000
(100,619)
(13,366)
(4,143)
(118,128)

50

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

4 Donations and legacies

Consolidated and Corporation
Unrestricted
£’000
Designated
£’000
Restricted
£’000
Endowment
£’000
Grants receivable
-
-
500
-
Donations and legacies
4,084
2,000
103
-

4,084
2,000
603
-		 Total
2025
£’000
500
6,187
6,687		 Total
2024
£’000
1,594
3,848
5,442

5 Investment income

Consolidated and Corporation
Unrestricted
£’000
Restricted
£’000
Endowment
£’000
Income from listed investments
1,212
4
180
Interest on short term deposits
476
-
-
Investment management fee rebates
-
-
32

1,688
4
212		 Total
2025
£’000
1,396
476
32

1,904		 Total
2024
£’000
1,305
497
28
1,830

6 Staff and performing artists’ numbers and costs, Trustee remuneration and expenses, and the cost of key management personnel

The average number of staff and performing artists engaged during the period was as follows:



Productions and theatre operations
Learning and national partnerships
Raising donations and legacies
Support staff
The total emoluments, including benefits in kind, of these persons was as follows:


Total emoluments
Social security costs
Defined contribution and other pension costs		 2025
Number
894
33
29
73

1,029

2025
£’000
35,014
2,375
2,357

39,746
 2024
Number
815
32
30
74
951
2024
£’000
33,257
2,135
2,268
37,660

The total emoluments, including benefits in kind, of these persons was as follows:

During the year redundancy payments totalling £350,610 (2024: £308,210) were made. This included ex-gratia payments of £116,100 ( 2024: £212,229 ).

Defined contribution pension costs are allocated directly to the related fund or charitable activity.

51

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued)

(forming part of the accounts)

6 Staff and performing artists’ numbers and costs, Trustee remuneration and expenses, and the cost of key management personnel (continued)

The number of staff and performing artists whose total emoluments, including benefits in kind, exceeded £60,000 was as follows:

£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
£100,001 - £110,000
£110,001 - £120,000
£120,001 - £130,000
£130,001 - £140,000
£150,001 - £160,000
£160,001 - £170,000
£180,001 - £190,000		 2025
2024
Number
Number
34
19
6
10
3
4
7
5
6
3
2
7
2
-
1
2
2
-
1
-
1
-

Remuneration was paid in respect of the Co-Artistic Directors and Executive Director’s duties in accordance with the Corporation’s Royal Charter. The appointment of these paid Directors to the Board is to create a mix of executive and non-executive Board members who share responsibility for the strategic and business planning of the Corporation.

2025 2024
Remuneration Employers Remuneration Employers Total
and Benefits Pension and Benefits Pension £’000
in Kind
contributions		 Total in Kind
contributions
£’000 £’000 £’000 £’000 £’000
Daniel Evans 161 8 169 70 4 74
Tamara Harvey 180 13 193 80 6 86
Andrew Leveson 85 5 90 - - -
Catherine Mallyon -
 -

 -
 134 12
 146

The Executive Director, Andrew Leveson, was appointed as a Trustee 10[th] September 2024 and remuneration is included above for the period since he became a Trustee.

Differences in remuneration, pensions and benefits relate to individual choices of accommodation and other benefits taken.

No other Board members received any remuneration from the Corporation in respect of their role as Board members (2024: £Nil).

Included within expenditure are expenses reimbursed to, or incurred on behalf of, 16 members of the Board (2024: 15) totalling £48,075 ( 2024: £19,953 ). These related to accommodation, travel, subsistence and meeting expenses. See note 25 in respect of other payments to Board members.

The key management personnel of the Corporation comprise the Board of Governors and the SLT. The total remuneration (including employer’s pension contributions and termination payments) of the key management personnel was £1,453,789 ( 2024: £1,401,106 ). Two key management personnel, Chris Hill and Tomas Wright, received payments under transition and departure agreements during the year. These payments totalled £96,200.

During the year, the roles included within the definition of Key Management Personnel have been reviewed. It has been decided that from 1 April 2025, the roles included will be Co Artistic Directors, Executive Director and Chief Financial Officer. These roles are considered to have authority and responsibility for planning, directing and controlling the activities of the charity.

52

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued)

(forming part of the accounts)

7
Total expenditure
Consolidated
Direct
costs
2025
Support
costs
2025
£’000
£’000
Charitable activities
Production and theatre operations
65,568
6,245
Learning and national partnerships
3,387
213
Expenditure on raising funds
Expenditure on raising donations and legacies
1,682
187
Expenditure on other trading activities
6,376
-
Share of net loss in joint ventures
-
-
Investment management costs
59
-
77,072
6,645
Support costs have been allocated across activities on the basis of staff numbers.
Total expenditure includes:
Depreciation
Impairment of tangible fixed assets
Auditor’s remuneration:
Statutory audit of parent and consolidated accounts
Audit of subsidiaries pursuant to legislation
Other services relating to taxation
Operating lease charges:
Land and buildings
Other than land and buildings
Net exchange losses on foreign currency transactions		 Total
2025
Total
2024
£’000
£’000
71,813
76,781
3,600
3,562
1,869
1,716
6,376
5,564
-
223
59
72

83,717
87,918

2025
£’000
2024
£’000
2,224
1,912
-
238
110
102
53
46
33
31
542
548
42
48
7
5
Corporation
Direct
costs
2025
Support
costs
2025
£’000
£’000
Charitable activities
Production and theatre operations
99,406
6,245
Learning and national partnerships
3,387
213
Expenditure on raising funds
Expenditure on raising donations and legacies
1,696
187
Expenditure on other trading activities
897
-
Investment management costs
59
-
105,445
6,645
Support costs have been allocated across activities on the basis of staff numbers.
Total expenditure includes:
Depreciation
Impairment of tangible fixed assets
Auditor’s remuneration:
Statutory audit of parent and consolidated accounts
Other services relating to taxation
Operating lease charges:
Land and buildings
Other than land and buildings
Net exchange losses on foreign currency transactions		 Total
2025
Total
2024
£’000
£’000
105,651
118,128
3,600
3,562
1,883
1,732
897
883
59
72

112,090
124,377

2025
£’000
2024
£’000
2,224
1,912
-
238
110
102
4
4
542
548
42
48
7
5

53

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued)

(forming part of the accounts)
8
Support costs
Consolidated and Corporation
Staff costs
Professional fees
Information technology
Human resources
Culture Recovery Fund loan interest
Other Expenditure		 2025
£’000
2024
£’000
3,763
3,278
386
301
961
919
489
804
349
405
697
616

6,645
6,323

Staff costs relate to administrative functions including finance, management, IT and human resources. Governance costs totalled £229,006 (2024: £126,830).

54

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

9 Tangible fixed assets

Consolidated

Freehold
theatres
Other
properties
Other
equipment,
fixtures
and fittings
£’000
£’000
£’000
Cost
At beginning of year
96,960
17,850
19,519
Additions
-
-
-
Transfers
-
-
2,266
Disposals
-
-
(277)
At end of year
96,960
17,850
21,508
Depreciation
At beginning of year
20,248
9,229
12,207
Charge for the year
912
199
1,113
Disposal
-
-
(277)
At end of year
21,160
9,428
13,043
Net book value
At 31 March 2025
75,800
8,422
8,465
At 31 March 2024
76,712
8,621
7,312
Corporation
Cost
At beginning of year
96,960
17,850
19,493
Additions
-
-
-
Transfers
-
-
2,266
Disposals
-
-
(277)
At end of year
96,960
17,850
21,482
Depreciation
At beginning of year
20,248
9,229
12,181
Charge for the year
912
199
1,113
Impairment
-
-
-
Disposal
-
-
(277)
At end of year
21,160
9,428
13,017
Net book value
At 31 March 2025
75,800
8,422
8,465
At 31 March 2024
76,712
8,621
7,312		 Motor
vehicles
Assets
under
course of
construction
£’000
£’000
82
569
-
4,237
-
(2,266)
(17)
(172)
65
2,368
82
-
-
-
(17)
-
65
-
-
2,368
-
569
60
569
-
4,237
-
(2,266)
(17)
(172)
43
2,368
60
-
-
-
-
-
(17)
-
43
-
-
2,368
-
569		 Total
£’000
134,980
4,237
-
(466)
138,751
41,766
2,224
(294)
43,696
95,055
93,214
134,932
4,237
-
(466)
138,703
41,718
2,224
-
(294)
43,648
95,055
93,214

All tangible fixed assets owned by the Corporation are held for charitable purposes. Other properties are freehold apart from three (2024: three) leasehold properties with net book value at 31 March 2025 of £73,294 (2024: £96,424). The movement in the year of £23,130 relates to depreciation of £23,130 (2024: depreciation £23,131 ) and additions of £Nil (2024: £Nil ) . Legal charges granted over fixed assets of the Corporation are shown in Note 27.

55

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

10 Fixed assets investments

Consolidated and Corporation

Joint ventures
(a)
Listed investments
(b)
Consolidated fixed asset investments
Investment in subsidiary undertakings
(c)
Less joint ventures
Corporation fixed asset investments		 2025
£’000
2024
£’000
2,760
2,667
33,453
39,689

36,213
42,356
3,000
3,000
(2,760)
(2,667)

36,453
42,689

All investments are held primarily to provide an investment return.

(a) Joint ventures

Carrying value at beginning of year
Share of net profit / (loss) of joint ventures
Carrying value at end of year
Historic cost		 Share of Joint Ventures
2025
£’000
2024
£’000
2,667
2,890
93
(223)

2,760
2,667

3,000
3,000

During the year the Corporation had an interest in the following joint ventures:

Organisation Name Country of Principal Activity Class of Parent Consolidation
Incorporation Share Corporation Method
Capital Interest
Held
Arden Hotel Waterside LLP1 UK Operating the Arden Hotel N/A 50% Equity
(Indirect) accounting

1 Joint venture interest in Arden Hotel Waterside LLP is held by RSC Estates Limited. The Corporation has a legal charge over the assets of RSC Estates Limited.

56

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued)

(forming part of the accounts)

10 Fixed asset investments (continued)

(a) Joint ventures (continued)

A summary of the Corporation’s share of results is shown below:

Profit and loss account Arden Hotel Waterside LLP
2025 2024
£’000 £’000
Turnover 1,429 1,308
Cost of sales (848)
 (839)
Gross profit 581 469
Administration expenses (446)
 (645)
Operating profit / (loss) 135 (176)
Interest payable and similar charges (42)
 (47)
Profit / (loss) for the financial period 93 (223)

The Corporation’s share of the assets and liabilities is as follows:

Arden Hotel Waterside LLP
2025 2024
£’000 £’000
Fixed assets 2,933 3,533
Current assets 192
 76
Total assets 3,125 3,609
Liabilities (365)
 (942)
2,760
 2,667

Details of transactions with group undertakings and balances at 31 March 2025 are shown in note 24. Details of loans to subsidiary companies and joint ventures as at 31 March 2025 are described in note 23.

57

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued)

(forming part of the accounts)

10 Fixed asset investments (continued)

(b) Listed investments

Listed investments:
Unrestricted
2025
£’000
Restricted
2025
£’000
Endowment
2025
£’000
United Kingdom liquidity funds
-
-
-
United Kingdom equities and equity unit
trusts
20,993
668
11,657
Listed investments
20,993
668
11,657
Cash held in investment portfolio
56
2
77
Fixed asset investments at fair value
21,049
670
11,734		 Total
2025
£’000
Total
2024
£’000
-
2,900
33,318
36,705

33,318
39,605
135
84

33,453
39,689

Reconciliation of movements in investments

Reconciliation of movements in investments
Listed Investments
2025 2024
£’000 £’000
Fair value at beginning of year 39,689 37,493
Movement in cash held in investment portfolio 51 (220)
Additions - 3,306
Disposals (5,956) (3,190)
Net (losses) / gains on revaluation (331) 2,300
Fair value at end of year 33,453 39,689
Historic cost 37,995 37,995

All listed investments are held indirectly via UK investment and unit trusts with the exception of shares in Hansard Global plc donated to the Corporation during 2008 and retained in accordance with the wishes of the donor.

At the year end, the Corporation held the following investments, which represented material investments within the total portfolio of the Corporation:

2025 2024
Value Portfolio Value Portfolio
£’000 % £’000 %
Cazenove Charity Sustainable Multi-Asset Fund 21,662 64.8 22,308 56.2
Sarasin Climate Active Endowments Fund 11,489 34.3 14,229 35.9

With the exception of shares in Hansard Global plc and the Climate Active Endowments Fund managed by Sarasin, all the investments were managed by the Charities division of Cazenove Capital Management.

58

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

10 Fixed asset investments (continued)

(c) Subsidiaries

As at 31 March 2025 the Corporation had an interest in the following subsidiary undertakings:

Organisation Name Country of Principal Activity Class of Parent Consolidation
Incorporation Share Corporation (Method)
and registration Capital Interest
number Held
Matilda North America US General Manager of_Matilda_ the N/A N/A Yes
LLC1 _Musical_in the US (Line by Line)
RSC Enterprise Limited UK Commercial activities relating to Ordinary 100% Yes
02360172 The Royal Shakespeare Company (Line by Line)
including retail, catering and trading
operations.
RSC Estates Limited UK Investment in the joint venture, Ordinary 100% Yes
06977192 Arden Hotel Waterside LLP (Line by Line)
RSC Matilda UK Investment in the unincorporated Ordinary 100% Yes
Australasia Limited2 09477058 entity to co-produce Matilda Miracle (Line by Line)
Tour in Australia. The company is
dormant from 1 April 2022.
RSC Matilda US UK Investment in_Matilda The Musical_ Ordinary 100% Yes
Limited 08417755 on Broadway LP and Matilda (Line by Line)
Acrobat Tour LP
RSC Pre-Productions UK To produce, supply and fit the set Ordinary 100% Yes
Limited 09227641 and equipment necessary for the (Line by Line)
production of live theatre on behalf
of the RSC.
RSC Productions UK Co-producer of the Matilda Miracle Ordinary 100% Yes
Limited2 07565512 Tour in Australia. The company is (Line by Line)
dormant from 1 April 2022.
RSCA Limited UK Dormant Ordinary 100% Yes
02215521 (Line by Line)
RSC Touring Limited UK Produces and manages certain Ordinary 100% Yes
10776856 touring productions on behalf of the (Line by Line)
RSC
Hathaway Productions UK Produces and manages certain Ordinary 100% Yes
Limited 14690651 productions on behalf of the RSC (Line by Line)
and third-party investors

1 The Corporation has an interest in Matilda North America LLC alongside Dodgers Properties LLC. The co-production agreement provides that the Corporation and Dodger Properties LLC will endeavour to agree on all major decisions but in the absence of agreement, the determination of the Corporation will prevail. The Corporation is therefore considered to control the entity. Matilda North America LLC is the sole general partner of Matilda on Broadway LP.

2 These entities are exempt from audit of the individual financial statements by virtue of section 480 of the Companies Act 2006 because they have been dormant since the end of the previous financial year.

There are no restrictions on the ability of subsidiaries to transfer their funds to the charity.

Details of transactions with subsidiaries and balances at 31 March 2025 are shown in note 24.

59

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

10 Fixed asset investments (continued)

(c) Subsidiaries (continued)

The financial results for the period were:

Statement of comprehensive income

Turnover / income
Cost of sales

Gross (loss) / profit
Selling and distribution costs
Administration
Operating (loss) / profit
Interest receivable and similar income
Interest payable and similar charges
Tax credit2
(Loss) / profit for the period
Turnover / income
Cost of sales

Gross (loss) / profit
Administration

Operating loss
Tax credit2

Result for the financial period
 Hathaway
Productions
Limited
RSC Estates
Limited
2025
20241
2025
2024
£’000
£’000
£’000
£’000
2,879
4,352
-
-
(4,674)
(4,675)
-
-


(1,795)
(323)
-
-
-
-
-
(98)
(52)
(6)
(6)


(1,893)
(375)
(6)
(6)
-
-
13
12
-
-
(10)
(9)
1,893
375
-
-


-
-
(3)
(3)


RSC Pre-
Productions
Limited
RSC Matilda US
Limited
2025
2024
2025
2024
£’000
£’000
£’000
£’000
37,647
45,403
3
3
(43,906)
(52,966)
-
-

(6,259)
(7,563)
3
3
(31)
(32)
(5)
(5)

(6,290)
(7,595)
(2)
(2)
6,290
7,595
-
-

-
-
(2)*
(2)
 RSC Enterprise
Limited
2025
2024
£’000
£’000
5,978
5,439
(4,547)
(3,878)

1,431
1,561
(56)
(45)

(1,142)
(1,013)


233
503
1
2

(6)
(9)
-
-


228
496


RSC Touring
Limited
2025
2024
£’000
£’000
5
5
-
-
5
5

(5)
(5)

-
-
-
-
-
-

*1 Hathaway Productions Limited was incorporated on 27 February 2023,but did not commence trading until August 2023. The accounting period included in the comparatives above is a long accounting period from incorporation to 31 March 2024.

*2 Tax credit in respect of Theatre Tax Relief.

RSC Productions Limited, RSC Matilda Australasia Limited and Matilda North America LLC were dormant for both the current and prior financial year so no Statement of Comprehensive income has been prepared.

The results above have been adjusted on consolidation for intra-group transactions.

60

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

10 Fixed asset investments (continued)

(c) Subsidiaries (continued)

Material components of income from other trading activities are as follows:

Catering
Retail, programmes and licencing
Management recharges
Gift aid from subsidiary undertaking
Other trading activities		 Consolidated
Corporation
2025
2024
2025
2024
£’000
£’000
£’000
£’000
3,006
2,544
-
-
2,499
2,120
-
-
-
-
116
477
-
-
245
461
2,221
2,425
2,102
1,941

7,726
7,089
2,463
2,879

The aggregate of the assets and liabilities is as follows:

Hathaway
Productions Limited
2025
2024
£’000
£’000
Assets
9,886
780
Liabilities
(9,886)
(780)
-
-
Assets
Liabilities		 RSC Estates
Limited
2025
2024
£’000
£’000
3,000
3,155
(35)
(187)
2,965
2,968
 RSC Enterprise
Limited
2025
2024
£’000
£’000
2,043
2,320
(1,019)
(1,280)

1,024
1,040

RSC Matilda US
Limited
2025
2024
£’000
£’000
12
9
(45)
(40)


(33)
(31)		 RSC Pre-
Productions
Limited
2025
2024
£’000
£’000
6,279
7,108
(6,279)
(7,108)

-
-

RSC Touring
Limited
2025
2024
£’000
£’000
754
762
(754)
(762)


--

Matilda North American LLC had assets and liabilities of £Nil at 31 March 2025 (2024: £Nil). RSC Productions Limited and RSC Matilda Australasia Limited are dormant companies with net assets of £2.

The historic cost and carrying value of these investments at 31 March 2025 was £3,000,312 (2024: £3,000,312) , comprising £100 RSC Enterprise Limited, £100 RSCA Limited, £3,000,002 RSC Estates Limited (further details are in note 24), £100 RSC Matilda US Limited, £2 Hathaway Productions Limited, £2 RSC Pre-Productions Limited, £2 RSC Matilda Australasia Limited, £Nil Matilda North America LLC, £2 RSC Productions Limited and £2 RSC Touring Limited.

61

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued)

(forming part of the accounts)

10 Fixed asset investments (continued)

(d) Non-Controlling Interest

The Corporation jointly controls Matilda North America LLC with Dodgers Properties LLC and the asset allocation to each of the parties follows the allocation of royalties as determined in the co-production agreement. This allocation specifies 60% in favour of Dodgers Properties LLC and 40% for the RSC. There are no net assets/liabilities and no profit or loss as at the balance sheet date. Therefore, there are no noncontrolling interests relating to this entity shown in the consolidated financial statements. The carrying value of this interest at 31 March 2025 was £Nil (2024: £Nil) .

11 Stock and work in progress

Work in progress
Goods for resale
12
Debtors
Amounts falling due within one year
Trade debtors
Amounts due from subsidiary undertakings (note 17)
Amounts due from joint ventures
Other debtors
Theatre tax relief
Prepayments
Accrued income		 Consolidated
2025
2024
£’000
£’000
6,763
1,507
242
195
7,005
1,702
Consolidated
2025
2024
£’000
£’000
1,674
6,060
-
-
-
150
223
144
8,134
7,483
2,322
1,227
1,673
2,539
14,026
17,603		 Corporation
2025
2024
£’000
£’000
1,711
1,507
-
-

1,711
1,507

Corporation
2025
2024
£’000
£’000
1,227
5,946
12,191
8,832
-
-
4
3
-
-
1,334
1,202
630
1,927

15,386
17,910

12 Debtors

Amounts due from subsidiary undertakings and amounts from joint ventures, in the year ended 31 March 2024, include loans as noted in note 24.

13 Cash at bank and in hand

Short term deposits
Cash at bank and in hand		 Consolidated
Corporation
2025
2024
2025
2024
£’000
£’000
£’000
£’000
7,062
9,905
7,062
9,905
8,683
5,966
5,937
3,398

15,745
15,871
12,999
13,303

62

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued)

(forming part of the accounts)

14 Creditors: amounts falling due within one year

Trade creditors
Amounts due to subsidiary undertakings
Repayable finance from Culture Recovery Fund (note 15)
Nesta Arts & Culture Impact Loan (note 15)
Taxation and social security
Other creditors
Accruals
Ticket advances
Other deferred income		 Consolidated
Corporation
2025
2024
2025
2024
£’000
£’000
£’000
£’000
1,642
1,380
1,173
1,258
-
-
12
9
1,481
770
1,481
770
200
200
200
200
1,176
2,599
912
2,318
4,015
310
464
253
4,674
8,787
3,695
7,784
5,001
3,638
5,001
3,638
1,034
978
560
954

19,223
18,662
13,498
17,184

Deferred income comprises cash received for which the related service, project or expenditure occurs in a future financial year.

Deferred income and ticket advances at 1 April
Deferred in the year
Released in the year
Deferred income and ticket advances at 31 March		 Consolidated
Corporation
2025
2024
2025
2024
£’000
£’000
£’000
£’000
4,616
5,591
4,592
5,573
14,619
14,152
13,792
13,909
(13,200)
(15,127)
(12,823)
(14,890)

6,035
4,616
5,561
4,592

15 Creditors: amounts falling due after more than one year

Repayable finance from Culture Recovery Fund
Nesta Arts & Culture Impact Loan		 Consolidated
2025
2024
£’000
£’000
18,762
200
19,865
400
18,962
20,265		 Corporation
2025
2024
£’000
£’000
18,762
200
19,865
400

18,962
20,265

The Company successfully applied for repayable finance of £19.4m from the government’s Culture Recovery Fund. This was drawn down in February 2021 and is a twenty-year loan at 2% interest per annum, with a four year initial repayment holiday. The first repayment was made in February 2025. The creditor falling due after more than one year represents the principal amount drawn down plus interest less the first repayment in February 2025 less the bi-annual repayments to be made in September 2025 and February 2026.

The company successfully applied for a repayable loan of £600,000 from Nesta Arts & Cultural Impact LLP. The loan was drawn down in August 2023,and is a 3-year loan at 4% interest per annum, repayable in annual instalments on 25 September 2024, 25 September 2025 and 25 September 2026. The first repayment has been made during the year.

63

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

16 Provisions for liabilities

Provision for VAT under the capital goods scheme Consolidated
Corporation
2025
2024
2025
2024
£’000
£’000
£’000
£’000
283
283
283
283

283
283
283
283

Provision has been made for VAT that may become payable under the Capital Goods Scheme relating to capital works. This will be payable over a 10-year period from first use of the buildings and the amount due will depend on the taxable use of the buildings over that 10-year period and the VAT partial exemption rate at that time.

17 Financial Instruments

Note
Financial assets:
Financial assets at fair value through net
income/expenditure
-Listed Investments
10(b)
Debt instruments measured at amortised cost
-Trade debtors
12
-Amounts due from subsidiary undertakings
12
-Other debtors
12
-Accrued income
12
-Cash and short-term deposits
13
Total
Financial liabilities:
Measured at amortised cost
-Trade creditors
14
-Amounts due to subsidiary undertakings
14
-Other creditors
14
-Accruals
14
-Nesta Arts & Culture Impact Loan
15
-Culture Recovery Fund repayable finance
15
Total		 Consolidated
Corporation
2025
2024
2025
2024
£’000
£’000
£’000
£’000
33,453
39,689
33,453
39,689
1,674
6,060
1,227
5,946
-
-
12,191
8,832
223
144
4
3
1,673
2,539
630
1,927
15,745
15,871
12,999
13,303

52,768
64,030
60,504
69.700

1,642
1,380
1,173
1,258
-
-
12
9
4,015
310
464
253
4,674
8,787
3,695
7,784
400
600
400
600
20,243
20,635
20,243
20,635

30,974
31,712
25,987
30,539

64

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

18
Funds
Consolidated
Balance at
1 April 2024
£’000
Unrestricted
General Operating Fund
9,967
Pension reserve
(1,016)
8,951
Unrestricted Designated Funds
Fixed Asset Fund_(Previously Capital_
Expenditure Fund)
33,877
John Jennings Legacy Fund
-
Digital Development Fund
474
Strategic Investment Fund
12,000
Total unrestricted designated funds
46,351
Total unrestricted funds
55,302
Endowment funds
Paul Hamlyn Endowment Fund
6,956
Actors’ Fund
5,542
Catalyst Fund
1,724
Expendable Endowment Fund
168
Total endowment funds
14,390
Restricted
Fixed Asset Fund_(previously_
Redevelopment Fund)
52,899
TOP Capital Fund
3,000
Costume Workshop Capital Fund
3,285
Garfield Weston Restricted Fund
-
Foyle Foundation Fund
-
Swan Wing Capital Fund
154
Theatrical Profession Relief Fund
430
Fanny Bradshaw Fund
310
New York Residency Fund
42
ACE Touring Fund
198
Creative Learning and Engagement
Fund_(previously Paul Hamlyn_
Foundation Fund)
50
Artist Development Fund
-
Arts and Humanities Research
Council Fund
460
Other restricted funds
-
Total restricted income funds
60,828
Total restricted/endowment funds
75,218
Total funds
130,520		 Income
Expenditure
Transfers
Gains/(losses)
on investments
and other
gains/(losses)
Balance at
31 March
2025
£’000
£’000
£’000
£’000
£’000
78,399
(78,942)
(4,231)
(634)
4,559
-
(50)
-
(399)
(1,465)

78,399
(78,992)
(4,231)
(1,033)
3,094

-
(2,828)
3,594
-
34,643
2,000
(23)
-
-
1,977
-
(128)
-
-
346
-
(10)
629
-
12,619

2,000
(2,989)
4,223
-
49,585

80,399
(81,981)
(8)
(1,033)
52,679

196
-
(251)
50
6,951
12
-
(2,907)
232
2,879
4
-
(13)
12
1,727
-
-
-
-
168

212
-
(3,171)
294
11,725

-
(180)
1,337
-
54,056
-
-
-
-
3,000
25
(90)
-
-
3,220
-
-
1,563
-
1,563
500
-
-
-
500
-
(18)
-
-
136
2
(22)
-
6
416
4
(1)
-
3
316
-
(10)
-
-
32
320
(165)
-
-
353
-
(290)
279
-
39
500
(500)
-
-
-
-
(460)
-
-
-
76
-
-
-
76

1,427
(1,736)
3,179
9
63,707




1,639
(1,736)
8
303
75,432




82,038
(83,717)
-
(730)
128,111

65

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

18 Funds (continued)

Consolidated
Balance at
1 April 2023
£’000
Unrestricted
General Operating Fund
25,823
Pension reserve
(2,258)
23,565
Unrestricted Designated Funds
Fixed Asset Fund_(Previously Capital_
Expenditure Fund)
4,502
Redevelopment Fund
4,167
Digital Development Fund
480
Strategic Investment Fund
-
Total unrestricted designated funds
9,149
Total unrestricted funds
32,714
Endowment funds
Paul Hamlyn Endowment Fund
6,492
Actors’ Fund
5,123
Catalyst Fund
1,595
Expendable Endowment Fund
160
Total endowment funds
13,370
Restricted
Fixed Asset Fund_(previously_
Redevelopment Fund)
66,777
TOP Capital Fund
5,405
Costume Workshop Capital Fund
4,033
Swan Auditorium Fund
513
Swan Wing Capital Fund
172
Theatrical Profession Relief Fund
389
Fanny Bradshaw Fund
286
Literary Writing Programme Fund
87
New York Residency Fund
87
ACE Touring Fund
-
Creative Learning and Engagement
Fund_(previously Paul Hamlyn_
Foundation Fund)
-
Artist Development Fund
-
Arts and Humanities Research
Council Fund
-
Total restricted income funds
77,749

Total restricted/endowment funds
91,119
Total funds
123,833		 Income
Expenditure
Transfers
Gains on
investments
and other
gains
Balance at
31 March
2024
£’000
£’000
£’000
£’000
£’000
89,181
(83,151)
(23,054)
1,168
9,967
-
(81)
1,140
183
(1,016)

89,181
(83,232)
(21,914)
1,351
8,951

-
(1,185)
30,560
-
33,877
-
-
(4,167)
-
-
-
(6)
-
-
474
-
-
12,000
-
12,000

-
(1,191)
38,393
-
46,351

89,181
(84,423)
16,479
1,351
55,302

197
-
(260)
527
6,956
11
-
-
408
5,542
3
-
-
126
1,724
-
-
-
8
168

211
-
(260)
1,069
14,390

44
(795)
(13,127)
-
52,899
-
(225)
(2,180)
-
3,000
25
(207)
(566)
-
3,285
-
(19)
(494)
-
-
-
(18)
-
-
154
1
(1)
-
41
430
3
(1)
-
22
310
-
(87)
-
-
-
-
(45)
-
-
42
513
(315)
-
-
198
50
(260)
260
-
50
500
(500)
-
-
-
1,594
(1,022)
(112)
-
460

2,730
(3,495)
(16,219)
63
60,828


2,941
(3,495)
(16,479)
1,132
75,218




92,122
(87,918)
-
2,483
130,520

66

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

18 Funds (continued)

Corporation
Balance at
1 April 2024
£’000
Unrestricted
General Operating Fund
9,322
Pension reserve
(1,016)

8,306

Unrestricted Designated Funds
Fixed
Asset
Fund
(Previously
Capital Expenditure Fund)
33,877
John Jennings Legacy Fund
-
Digital Development Fund
474
Strategic Investment Fund
12,000
Total unrestricted designated funds
46,351
Total unrestricted funds
54,657

Endowment funds
Paul Hamlyn Endowment Fund
6,956
Actors’ Fund
5,542
Catalyst Fund
1,724
Expendable Endowment Fund
168

Total endowment funds
14,390

Restricted
Fixed Asset Fund_(previously_
Redevelopment Fund)
52,899
TOP Capital Fund
3,000
Costume Workshop Capital Fund
3,285
Garfield Weston Restricted Fund
-
Foyle Foundation Fund
-
Swan Wing Capital Fund
154
Theatrical Profession Relief Fund
430
Fanny Bradshaw Fund
310
New York Residency Fund
42
ACE Touring Grant
198
Creative Learning and Engagement
Fund_(previously Paul Hamlyn_
Foundation Fund)
50
Artist Development Fund
-
Arts and Humanities Research
Council Fund
460
Other restricted funds
-

Total restricted income funds
60,828
Total restricted/endowment funds
75,218
Total funds
129,875		 Income
Expenditure
Transfers
Gains/(losses)
on investments
and other
gains/(losses)
Balance
at
31 March
2025
£’000
£’000
£’000
£’000
£’000
106,702
(107,315)
(4,231)
(634)
3,844
-
(50)
-
(399)
(1,465)

106,702
(107,365)
(4,231)
(1,033)
2,379

-
(2,828)
3,594
-
34,643
2,000
(23)
-
-
1,977
-
(128)
-
-
346
-
(10)
629
-
12,619

2,000
(2,989)
4,223
-
49,585

108,702
(110,354)
(8)
(1,033)
51,964

196
-
(251)
50
6,951
12
-
(2,907)
232
2,879
4
-
(13)
12
1,727
-
-
-
-
168

212
-
(3,171)
294
11,725
-
(180)
1,337
-
54,056
-
-
-
-
3,000
25
(90)
-
-
3,220
-
-
1,563
-
1,563
500
-
-
-
500
-
(18)
-
-
136
2
(22)
-
6
416
4
(1)
-
3
316
-
(10)
-
-
32
320
(165)
-
-
353
-
(290)
279
-
39
500
(500)
-
-
-
-
(460)
-
-
-
76
-
-
-
76

1,427
(1,736)
3,179
9
63,707




1,639
(1,736)
8
303
75,432

110,341
(112,090)
-
(730)
127,396

67

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

18 Funds (continued)

Corporation
Balance at
1 April 2023
£’000
Unrestricted
General Operating Fund
24,985
Pension reserve
(2,258)

22,727

Unrestricted Designated Funds
Fixed
Asset
Fund
(Previously
Capital Expenditure Fund)
4,502
Redevelopment Fund
4,167
Digital Development Fund
480
Strategic Investment Fund
-
Total unrestricted designated funds
9,149
Total unrestricted funds
31,876

Endowment funds
Paul Hamlyn Endowment Fund
6,492
Actors’ Fund
5,123
Catalyst Fund
1,595
Expendable Endowment Fund
160

Total endowment funds
13,370

Restricted
Fixed Asset Fund_(previously_
Redevelopment Fund)
66,777
TOP Capital Fund
5,405
Costume Workshop Capital Fund
4,033
Swan Auditorium Fund
513
Swan Wing Capital Fund
172
Theatrical Profession Relief Fund
389
Fanny Bradshaw Fund
286
Literary Writing Programme Fund
87
New York Residency Fund
87
ACE Touring Grant
-
Creative Learning and Engagement
Fund_(previously Paul Hamlyn_
Foundation Fund)
-
Artist Development Fund
-
Arts and Humanities Research
Council Fund
-

Total restricted income funds
77,749
Total restricted/endowment funds
91,119
Total funds
122,995		 Income
Expenditure
Transfers
Gains on
investments
and other
gains
Balance at
31 March
2024
£’000
£’000
£’000
£’000
£’000
125,833
(119,610)
(23,054)
1,168
9,322
-
(81)
1,140
183
(1,016)
125,833
(119,691)
(21,914)
1,351
8,306
-
(1,185)
30,560
-
33,877
-
-
(4,167)
-
-
-
(6)
-
-
474
-
-
12,000
-
12,000
-
(1,191)
38,393
-
46,351
125,833
(120,882)
16,479
1,351
54,657
197
-
(260)
527
6,956
11
-
-
408
5,542
3
-
-
126
1,724
-
-
-
8
168
211
-
(260)
1,069
14,390
44
(795)
(13,127)
-
52,899
-
(225)
(2,180)
-
3,000
25
(207)
(566)
-
3,285
-
(19)
(494)
-
-
-
(18)
-
-
154
1
(1)
-
41
430
3
(1)
-
22
310
-
(87)
-
-
-
-
(45)
-
-
42
513
(315)
-
-
198
50
(260)
260
-
50
500
(500)
-
-
-
1,594
(1,022)
(112)
-
460

2,730
(3,495)
(16,219)
63
60,828



2,941
(3,495)
(16,479)
1,132
75,218
128,774
(124,377)
-
2,483
129,875

68

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

18 Funds (continued)

Unrestricted funds

The General Operating Fund represents the total unrestricted undesignated reserves held by the Corporation.

Designated funds

During the prior year, the board agreed that the Capital Expenditure Fund and the Redevelopment Fund should be merged and renamed the Fixed Asset fund. This fund, together with the restricted capital funds, represents the net book value of Fixed Assets. Depreciation is charged against this fund.

During the prior year, the board agreed to set up a Strategic Investment Fund. This is to earmark funds for future strategic projects including commercial opportunities to generate future cashflows or initiatives to develop financial sustainability.

The Digital Development Fund was designated in January 2022, following the conclusion of the Audience of the Future project in December 2021. It represents the surplus match funding provided to support the original project together with Research and Development tax credits and will allow the RSC to build upon the digital innovation work achieved over the past few years. This includes incorporating digital tools into production and audience processes and a programme of Digital R&D.

During the year a legacy was received from the estate of John Jennings. Although there were no formal restrictions over this legacy, the trustees have decided to set up the John Jennings Legacy Designated Fund which will be used to support Education of young people in the works of William Shakespeare.

Endowment Funds

The Paul Hamlyn Endowment Fund was set up following a £7m endowment received in December 2020. The purpose of the fund is to support the future of the company’s work in schools across the UK with annual income generated by it used solely to support its charitable educational work about Shakespeare in schools, with children, young people, their families and local communities as well as staff and teachers. A transfer is made of income generated from the Endowment Fund to the Paul Hamlyn Foundation restricted income fund below, to be utilised against relevant educational expenditure.

The Actors Endowment Fund was set up following a transfer of £3.2m to the charity in 1999. The income from the Actors’ Fund must be used to support the Corporation’s actors. During the year, it was agreed with the original donor that accumulated investment gains of £2.9m could be withdrawn and used for purchase and refurbishment of accommodation used by the acting company. The balance unutilised at 31 March 2025, was transferred into the Garfield Weston Restricted fund (see below).

The Catalyst Fund is an Arts Council England match funded permanent endowment fund, the income from which will support major projects additional to those supported by other Arts Council funding agreements.

The Expendable Endowment Fund represents a capital donation to be retained in accordance with the wishes of the donor, which may be transferred to income at a future date to be agreed. The income arising from this fund may be used for general or restricted purposes in accordance with the donor’s wishes, as agreed from time to time.

Restricted Income Funds

The Redevelopment Fund represents contributions from Arts Council England, Advantage West Midlands and private donors to fund the redevelopment of the Royal Shakespeare Theatre site in Stratford-uponAvon. This was renamed to the Fixed Asset Fund during the prior year.

The Other Place (TOP) Capital Fund represents contributions from Arts Council England and private donors to fund the redevelopment of the former Courtyard Theatre into a re-purposed multi-function building incorporating a new studio theatre, rehearsal spaces and commercial spaces.

69

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

18 Funds (continued)

The Costume Workshop fund represents the funding raised towards the Stitch in Time project to improve facilities, open the workshop up to the public for the first time and allow new apprenticeships. This balance remains restricted due to charges given to funders, in accordance with the terms of the grant funding agreement. The depreciation of the capitalised cost, which is included in fixed assets, is charged against this fund.

The Swan Auditorium Fund represents the original donation received for the creation of the Swan Auditorium. The depreciation of the capitalised cost, which is included in fixed assets, is charged against this fund.

The Swan Wing Capital Fund represents contributions from the Heritage Lottery Fund and private donors to fund the redevelopment of a new exhibition space within the Swan Wing of the theatre. The depreciation of the capitalised cost, which is included in fixed assets, is charged against this fund.

During the prior year, these restricted capital funds were reviewed. Restrictions are considered to have fulfilled where the asset has been purchased or built but a restriction is considered to remain in place where there are ongoing requirements, such as guarantees or charges. Any funds that do not have an ongoing restriction or where the value of the fund exceeds the ongoing value of the restriction, have been transferred into the designated fixed asset fund.

During the year, an amount was transferred from the Actors Endowment Fund with the agreement of the original donors, The Garfield Weston Foundation. This purpose of this fund is to improve the availability and accessibility of accommodation for acting companies via the purchase of additional accommodation and the refurbishment of existing accommodation.

Foyle Foundation Fund represents the grant received from The Foyle Foundation towards costs of developing the School’s Curriculum Educational programme.

The Theatrical Profession Relief Fund exists to assist and relieve poor and necessitous persons who are either members of the theatrical profession or are, or have been, employees of, or have done service for, the Corporation.

The Fanny Bradshaw and Sir Fordham Flower Funds provide bursaries to theatre employees for travelling abroad to strengthen the Corporation’s contact with overseas theatres and theatrical organisations.

The Literary Writing Programme Fund represents funding received for the literary writing programme and was fully utilised at 31 March 2024.

The New York Residency Fund represents partnership funding provided by JP Morgan to fund a residency in New York.

The Arts and Humanities Research Council Fund relates to capital funding received in the prior year, the remaining balance of which was fully spent in the current year.

ACE have provided a grant totalling £1.3m over 3 years to support our programme of UK touring productions. During the year ended 31 March 2025, a further £320,000 was received which supported our First Encounters productions of Romeo and Juliet and The Tempest .

The Creative Fellowship Fund was created to enable the development and enrichment of the role of assistant directors and design assistants, past, present, and future. The fund was fully utilised in the year ended March 2023.

The Creative Learning and Engagement Fund (Previously The Paul Hamlyn Foundation Fund) represents education activity funded by income generated by the Paul Hamlyn Endowment Fund (as described above) as well as other funding received for our Creative Learning and Engagement work.

The Artist Development Fund represents funding received towards the Artist Development Programme. This programme is designed to help build cast and crew skills through training and extra rehearsal time.

70

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued)

(forming part of the accounts)

18 Funds (continued)

Transfers between funds

The transfers between funds consist of:

71

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

19 Analysis of net assets between funds

Consolidated
At 31 March 2025
Tangible
fixed assets
Other fixed
asset
investments
Net current
(liabilities)/
assets
Provisions,
creditors due
after more than
one year and
pension deficit
£’000
£’000
£’000
£’000
Unrestricted funds
-
23,809
(5)
(20,710)
Designated funds
34,643
-
14,942
-
Endowment funds
Paul Hamlyn Endowment Fund
-
6,951
-
-
Actors’ Fund
-
2,888
(9)
-
Catalyst Fund
-
1,727
-
-
Expendable Endowment Fund
-
168
-
-


-
11,734
(9)
-


Restricted funds
Fixed Asset Fund
54,056
-
-
-
TOP Capital Fund
3,000
-
-
-
Costume Workshop Fund
3,220
-
-
-
Garfield Weston Restricted Fund
-
-
1,563
-
Foyle Foundation Fund
-
-
500
-
Swan Wing Capital Fund
136
-
-
-
Theatrical Profession Relief Fund
-
427
(11)
-
Fanny Bradshaw Fund
-
243
73
-
New York Residency Fund
-
-
32
-
ACE Touring Fund
-
-
353
-
Creative Learning and Engagement Fund
-
-
39
-
Other restricted funds
-
-
76
-
60,412
670
2,625
-
95,055
36,213
17,553
(20,710)		 Total
£’000
3,094
49,585
6,951
2,879
1,727
168
11,725
54,056
3,000
3,220
1,563
500
136
416
316
32
353
39
76

63,707
128,111

72

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

19 Analysis of net assets between funds (continued)

Consolidated
At 31 March 2024
Tangible
fixed assets
Other fixed
asset
investments
Net current
(liabilities)/
assets
Provisions,
creditors due
after more than
one year and
pension deficit
£’000
£’000
£’000
£’000
Unrestricted funds
-
27,255
3,260
(21,564)
Designated funds
33,877
-
12,474
-
Endowment funds
Paul Hamlyn Endowment Fund
-
6,984
(28)
-
Actors’ Fund
-
5,535
7
-
Catalyst Fund
-
1,711
13
-
Expendable Endowment Fund
-
168
-
-


-
14,398
(8)
-
Restricted funds
Fixed Asset Fund
52,899
-
-
-
TOP Capital Fund
3,000
-
-
-
Costume Workshop Fund
3,284
-
-
-
Swan Wing Capital Fund
154
-
-
-
Theatrical Profession Relief Fund
-
462
(31)
-
Fanny Bradshaw Fund
-
241
69
-
-New York Residency Fund
-
-
42
-
ACE Touring Fund
-
-
198
-
Creative Learning and Engagement Fund
-
-
50
-
Arts and Humanities Research Council
Fund
-
-
460
-
59,337
703
788
-
93,214
42,356
16,514
(21,564)		 Total
£’000
8,951
46,351
6,956
5,542
1,724
168

14,390
52,899
3,000
3,284
154
431
310
42
198
50
460

60,828
130,520

73

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

19 Analysis of net assets between funds (continued)

Corporation

At 31 March 2025
Tangible
fixed assets
Other fixed
asset
investments
Net current
(liabilities)/
assets
Provisions,
creditors due
after more than
one year and
pension deficit
£’000
£’000
£’000
£’000
Unrestricted funds
-
24,049
(960)
(20,710)
Designated funds
34,643
-
14,942
-
Endowment Funds
Paul Hamlyn Endowment Fund
-
6,951
-
-
Actors’ Fund
-
2,888
(9)
-
Catalyst Fund
-
1,727
-
-
Expendable Endowment Fund
-
168
-
-

-
11,734
(9)
-

Restricted funds
Fixed Asset Fund
54,056
-
-
-
TOP Capital Fund
3,000
-
-
-
Costume Workshop Fund
3,220
-
-
-
Garfield Weston Restricted Fund
-
-
1,563
-
Foyle Foundation Fund
-
-
500
-
Swan Wing Capital Fund
136
-
-
-
Theatrical Profession Relief Fund
-
427
(11)
-
Fanny Bradshaw Fund
-
243
73
-
New York Residency Fund
-
-
32
-
ACE Touring Fund
-
-
353
-
Creative Learning and Engagement Fund
-
-
39
-
Other restricted funds
-
-
76
-

60,412
670
2,625
-
95,055
36,453
16,598
(20,710)		 Total
£’000
2,379
49,585
6,951
2,879
1,727
168
11,725
54,056
3,000
3,220
1,563
500
136
416
316
32
353
39
76
63,707
127,396

74

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

19 Analysis of net assets between funds (continued)

Corporation

At 31 March 2024
Tangible
fixed assets
Other fixed
asset
investments
Net current
(liabilities)/
assets
Provisions,
creditors due
after more than
one year and
pension deficit
£’000
£’000
£’000
£’000
Unrestricted funds
-
27,588
2,282
(21,564)
Designated funds
33,877
-
12,474
-
Endowment Funds
Paul Hamlyn Endowment Fund
-
6,984
(28)
-
Actors’ Fund
-
5,535
7
-
Catalyst Fund
-
1,711
13
-
Expendable Endowment Fund
-
168
-
-
-
14,398
(8)
-
Restricted funds
Fixed Asset Fund
52,899
-
-
-
TOP Capital Fund
3,000
-
-
-
Costume Workshop Fund
3,284
-
-
-
Swan Wing Capital Fund
154
-
-
-
Theatrical Profession Relief Fund
-
462
(31)
-
Fanny Bradshaw Fund
-
241
69
-
New York Residency Fund
-
-
42
-
ACE Touring Fund
-
-
198
-
Creative Learning and Engagement
Fund
-
-
50
-
Arts and Humanities Research Council
Fund
-
-
460
-
59,337
703
788
-
93,214
42,689
15,536
(21,564)		 Total
£’000
8,306
46,351
6,956
5,542
1,724
168
14,390
52,899
3,000
3,284
154
431
310
42
198
50
460
60,828
129,875

75

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued)

(forming part of the accounts)

20 Analysis of changes in net debt

20
Analysis of changes in net debt
At 1 April Cash flows Non-cash At 31 March
2024 flows 2025
£’000 £’000 £’000 £’000
Cash in hand 5,966 2,717 - 8,683
Notice deposits (less than 3 months) 9,905 (2,843) -
 7,062
Total cash and cash equivalents 15,871 (126) - 15,745
Amounts falling due within one year
- Repayable finance from Culture Recovery Fund (770) 741 (1,452) (1,481)
- NESTA Arts and Cultural Impact loan (200) 200 (200) (200)
Amounts falling due after more than one year
-Repayable finance from Culture Recovery Fund (19,865) - 1,103 (18,762)
-NESTA Arts and Cultural Impact loan (400) -
 200
 (200)
Net debt (5,364) 815 (349) (4,898)

21 Financial and capital commitments

Consolidated and Corporation

Total commitments under operating leases are payable:

2025 2024
Land and Other Land and Other
buildings buildings
£’000 £’000 £’000 £’000
Within one year 540 42 540 48
In the second to fifth years inclusive 2,065 279 2,065 129
After five years 1,740 44 2,154
 13
4,345 365 4,759 190

At 31 March 2025, capital expenditure contracted but not provided for was £176,932 (2024: £303,670).

76

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

22 Pensions

Consolidated and Corporation

The Corporation operates three pension schemes; two defined contribution schemes and one defined benefit scheme.

The Corporation also contributes to a defined contribution scheme sponsored by Equity (for actors and stage management) and a defined contribution scheme sponsored by the Musicians’ Union (for musicians). Contributions to these schemes amounted to £328,243 ( 2024: £330,796 ).

Defined contribution schemes

A defined contribution scheme was introduced with effect from 1 April 2003. The Corporation pays contributions at the rate of 6% ( 2024 : 6% ) on earnings up to the Upper Accrual Point (UAP) and 7.5% ( 2024 : 7.5% ) on earnings above the UAP to an insurance company for the benefit of members and such contributions vest immediately. Contributions are invested in a range of funds administered by the insurance company, and such funds are independent to those of the Corporation.

The pension cost charge for the year in respect of the scheme was £382,954 (2024: £461,340 ) . The unpaid contributions outstanding at the year end, included in other creditors (note 14) were £31,673 (2024: £34,935) .

An auto-enrolment compliant defined contribution scheme replaced the 2003 scheme from 2014 for new entrants. The Corporation pays contributions at the rate of 5.4% ( 2024 : 5.4% ) on earnings to an insurance company for the benefit of members and such contributions vest immediately. Members can choose to increase their contributions to benefit from an increased rate of 6% ( 2024 : 6% ) paid by the Corporation. Contributions are invested in a range of funds administered by the insurance company, and such funds are independent to those of the Corporation.

The pension cost charge for the auto-enrolment scheme was £1,645,558 (2024: £1,475,604). The unpaid contributions outstanding at the year end, included in other creditors (note 14) were £287,267 (2024: £76,744).

Defined benefit scheme

The Corporation operates a funded defined benefit pension scheme, the Royal Shakespeare Theatre Pension Scheme, providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the Corporation. Since 1 December 2006, the scheme has been closed to new members and following consultation with members was closed to future accrual on 30 June 2012.

During the year to 31 March 2025 the Corporation made contributions of £Nil (2024: £1,140,000) , in line with the independent actuary’s recommendations and it continued to fund all administration costs of the scheme. The Scheme made a discretionary increase in respect of pensions accrued pre-1997 of £Nil for the year to March 2025 (2024: £Nil).

There was a deficit in the scheme as at 31 March 2025 of £1,465,000 ( 2024: deficit of £1,016,000 ).

2025 2024
£’000 £’000
Fair value of scheme assets 14,883 16,680
Benefit obligation at the end of the year (16,348)
 (17,696)
Net deficit in scheme (1,465)
 (1,016)

There were no unpaid contributions outstanding at the year-end (2024: £Nil).

The latest actuarial valuation took place on 31 March 2023 and was updated for FRS 102 purposes to 31 March 2025 by a qualified independent actuary.

77

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

22 Pensions (continued)

The principal actuarial assumptions used are shown below:

Main financial assumptions- Liabilities
Discount rate
Rate of inflation (RPI)
Rate of inflation (CPI)
Rate of increase to pensions in payment
CPI inflation up to a maximum of 5%
CPI Inflation up to a maximum of 2.5%
Mortality assumptions
Assumed life expectancies on retirement at age 65 are:
Males retiring immediately
Females retiring immediately
Males retiring in 20 years’ time
Females retiring in 20 years’ time
Scheme assets
The assets in the Scheme were:
Fixed interest
Cash
Credit and Diversified Private Debt
Fair value of scheme assets
Actual return on assets over the period		 2025
% per
Annum
5.70
3.00
2.70
2.65
2.00

2025
21.7
24.0
23.0
25.4
2025
£’000
5,003
670
9,210

14,883

2025
£’000
(997)
 2024
% per
Annum
4.90
3.10
2.70
2.65
2.00
2024
21.7
23.9
23.0
25.5
2024
£’000
6,195
1,458
9,027

16,680
2024
£’000
(432)

A fixed legal charge exists over some of the freehold residential properties owned by the Royal Shakespeare Company (see note 27).

The Scheme does not hold any ordinary shares issued or property owned by the Royal Shakespeare Company.

The assumptions for discount rate and RPI inflation at 31 March 2025 have been estimated with reference to yield curves as these are a close match for the Scheme’s liability cash flows.

78

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

22 Pensions (continued)

The liability at 31 March 2025 of £1,465,000 ( 2024: £1,016,000 ) has been shown on the Balance Sheet.

The amounts recognised in the Statement of Financial Activities are:

Service cost
Net interest
Total Expense
Actuarial gain on liabilities
Return on assets, excluding interest income

Change in effect of the asset ceiling, excluding interest income

Other recognised losses / (gains)
Total amount recognised in the Statement of Financial Activities		 2025
£’000
-
50

50

(1,396)
1,795
-

399

449
 2024
£’000
-
81

81

(1,430)
1,247
-

(183)

(102)

Reconciliation of opening and closing balances of the present value of the defined benefit obligations

Benefit obligation at the beginning of the year
Interest cost
Actuarial gain on scheme liabilities *
Net benefits paid out
Benefit obligation at the end of year		 2025
£’000
(17,696)
(848)
1,396
800

(16,348)
 2024
£’000
(19,120)
(896)
1,430
890
(17,696)

Reconciliation of opening and closing balances of the fair value of the scheme assets:

Opening fair value of scheme assets
Interest income on scheme assets
Contributions from the employer
Return on assets, excluding interest income
Benefits paid
Fair value of scheme assets at the end of year		 2025
2024
£’000
£’000
16,680
16,862
798
-
815
1,140
(1,795)
(1,247)
(800)
(890)

14,883
16,680

79

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

23 Loans to subsidiary companies and joint ventures

In March 2023, a loan was issued by the Corporation to RSC Estates Limited for £150,000 on normal commercial terms at an interest rate of 6%. A further loan of £104,000 was issued in November 2024 on the same commercial terms. The loans were required to enable the subsidiary to make an investment in Arden Hotel Waterside LLP. Both loans were repaid in February 2025. The balance outstanding at 31 March 2025 was £Nil ( 2024: £150,000 ) .

RSC Estates Limited issued a loan to Arden Hotel Waterside LLP in March 2023 of £150,000. This loan was on normal commercial terms and interest was charged at 8% per annum. A further loan of £104,000 was issued in November 2024 on the same commercial terms. Both loans were repaid in February 2025. The balance outstanding at 31 March 2025 was £Nil ( 2024: £150,000 ).

Interest on both loans was paid quarterly in arrears.

24 Transactions with group and related undertakings

Transactions between the Corporation and group and related undertakings during the year and balances outstanding at 31 March 2025 were:

Organisation Name Nature of transaction 2025 2024
£ £
Subsidiary undertakings
RSC Enterprise Limited Rental, utilities recharges and management charges 288,171 288,487
from parent undertaking
Charges to parent undertaking for programmes, (316,997) (266,690)
catering, theatre tours and commissioning fees
Gift Aid 245,251 460,732
RSC Pre-Productions Limited Commissioning fee (37,647,281) (45,403,070)
Pre-production costs 43,906,643 52,965,492
RSC Touring Limited Commissioning fee 5,075 4,540
Hathaway Productions Limited Show development, marketing, producer fee and 271,055 264,816
management charges from parent undertaking
Cost recharges and costs relating to set build and 1,231,007 412,848
costume hire
Share of profit and loss from productions and 683,977 -
minimum weekly guarantees
Investments in productions 3,482,246 -
Joint ventures
Arden Hotel Waterside LLP Accommodation charges (89,810) (52,752)
Sale of tickets and catering charges 17,533 12,261
Purchase of property 1,325,000 -

All transactions were completed on normal commercial terms and balances outstanding are repayable on demand.

Organisation Name Balance due from Balance due to Balance due from Balance due to
Corporation at Corporation at Corporation at Corporation at
31 March 2025 31 March 2025 31 March 2024 31 March 2024
£ £ £ £
RSC Enterprise Limited - 242,697 - 515,991
RSC Productions Ltd - - - -
RSC Matilda Australasia Ltd - - - -
RSC Pre-Productions Limited
-		 6,210,333 - 7,078,439
RSC Estates Limited - - - 152,500
RSC Matilda US Limited 12,114 - 9,203 -
RSC Touring Limited - 747,084 - 747,229
Hathaway Productions Limited - 4,990,603 - 337,227
Arden Hotel Waterside LLP 1,649 4,707 3,671 1,005

80

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

25 Transactions with connected persons

It is normal practice for members of the Board, or organisations with which they are connected, to help raise donations or sponsorship for the Corporation. Such receipts can come from members directly or from organisations in which members have controlling interests. No material benefits arise to members as a result of such transactions and they are therefore not detailed below.

The following transactions took place with related parties:

Andrew Miller is a national council member of Arts Council England. During the year, the Corporation received a National Portfolio Organisation grant of £15,259,706 (2024: £15,259,706) and a touring grant of £320,367 (2024: £512,586).

Andrew Miller’s partner, Tim Meacock, invoiced the Corporation £1,187 (2024: Nil) for designing services. This was on Tim Meacock’s normal commercial terms and the balance owed at the end of the year was £Nil (2024: £Nil).

Clare Reddington has been a Trustee of Wise Children Limited since 2018, which invoiced the Corporation for the development costs and royalties in relation to the theatrical production of “Buddha of Suburbia” as well as other smaller projects for £301,322 (2024: £33,515). The balance owed at the end of the year was £Nil (2024: £Nil). During the year, the Corporation also invoiced Wise Children Limited for its contribution to costs relating to the abovementioned production and rent of a residential property for £104,311 (2024: £772). These were on Wise Children Limited’s normal commercial terms and the balance owing at the end of the year was £Nil (2024: £772).

Clare Reddington has also been working as Chief Executive Officer at Watershed Arts Trust since 2019. During the year, the Corporation paid a fee of £15,000 (2024: £Nil) to participate in the interdisciplinary learning group. The transaction was on Watershed Arts Trust’s normal commercial terms and the balance owed at the end of the year was £Nil (2024: £Nil).

Intermission Youth, of which Amanda Parker is a Trustee, has been working with the Learning and National Partnerships team at the RSC during the year as a Theatre partner. During the year the Corporation paid a total of £987 (2024: £10,353) for their services. These were on Intermission Youth’s normal commercial terms. The balance owed at the end of the year was £97 (2024: £10,000). Sarah Ellis has been a Trustee for Headlong Theatre Limited since 2019. The Corporation was invoiced £9,910 (2024: £Nil) for content creation projects in relation to “The New Real” . This was on Headlong Theatre Limited’s normal commercial terms and the balance owed at the end of the year £Nil (2024: £Nil).

Jacqui O’Hanlon MBE has worked for Stratford-Upon-Avon Primary School as a Chair of Governors since 2023. During the year, the Corporation invoiced Stratford-Upon-Avon Primary School £300 (2024: £Nil) for the cost of involvement in the Playmaking Festival 2024. This was on Stratford-Upon-Avon Primary School’s normal commercial terms and the balance owed at the end of the year was £Nil (2024: £Nil).

Shakespeare Globe Trust, to which Despina Tsatsas has been a Trustee since 2022, was invoiced £6,089 (2024: £Nil) by the Corporation for the cost of costume hire. This was on Shakespear Globe Trust’s normal commercial terms and the balance owed at the end of the year was £Nil (2024: £Nil).

Despina Tsatsas is also an External Member of the Barbican Centre Board, a committee responsible for the activities and services of the Barbican Centre. During the year, the Corporation invoiced the Barbican Centre £2,281,128 (2024: £6,671,741) for theatre ticket sales for productions of “Buddha of Suburbia” and “A Midsummer Night’s Dream” that played in the West End. RSC Enterprise Limited, a subsidiary of the Corporation, invoiced the Barbican Centre £117,369 (2024: £Nil) for its share from the sale of programmes. The Corporation was also invoiced £1,029,947 (2024: £1,749,707) for various items including theatre rental, sales commission as well as charges for utilities, technical staff and catering. These were on the Barbican Centre’s normal commercial terms and the balance owed at the end of the year was £5,155 (2024: balance owing £478,370).

Professor Emma Smith is an employee of University of Oxford, which during the year, invoiced the Corporation £15,224 (2024: £Nil) for delivery of interdisciplinary fellowship and game sets. RSC Enterprise Limited, subsidiary of the Corporation, purchased goods for resale from University of Oxford Bodleian Libraries and Oxford University Press totalling £3,528 (2024: £6,043). RSC Enterprise Limited also invoiced University of Oxford £Nil (2024: £63) for the use of an image, and Oxford University Press £1,826 (2024: £658) for the use of images and royalties. These transactions were on normal commercial terms and the balance owing at the end of the year was £270 (2024: £863).

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Notes (continued) (forming part of the accounts)

25 Transactions with connected persons (continued)

Professor Emma Smith invoiced the Corporation £2,000 (2024: £Nil) for dramaturgical advice provided in relation to the development of Macbeth-inspired video game, Lili . This transaction was on normal commercial terms and the balance owed at the end of the year was £Nil (2024: £Nil).

Until August 2024, Griselda Yorke was a trustee for Improbable, which provided creative and logistical support with production of “My Neighbour Totoro”. The Corporation paid a total of £Nil (2024: £6,918) for their services during the year. The balance owed at the end of the year was £Nil (2024: £Nil) . Griselda Yorke is also a board member for Society of London Theatre.

Sarah Ellis has been a Trustee of Figurative since 2023. The Corporation is in a receipt of a repayable finance from Arts & Culture Finance, which is now part of Figurative. During the year, the Corporation made a loan repayment including interest of £220,000 (2024: £15,032). The Corporation was also invoiced £306 (2024: £Nil) for further services in relation to participation in fellowship advisory meetings. These transactions were on Arts & Culture Finance’s normal commercial terms and the loan balance outstanding at the end of the year was £400,000 (2024: £600,000).

During the year, Tamara Harvey and Andrew Leveson used RSC freehold property in Stratford Upon Avon rent-free, creating a taxable benefit in kind. See note 6 for further details.

A proportion of the indemnity insurance equating to £6,490 (2024: £6,490) covers Board members. The Charity Commission has indicated its approval of this arrangement.

26 VAT Group Liability

The Corporation entered into a group arrangement for Value Added Tax (VAT) on 1 January 2015 with RSC Pre-Productions Limited and RSC Enterprise Limited, the representative member of the group being The Royal Shakespeare Company. All members of the group are jointly and severally liable for the tax due from the representative member. The VAT liability of the other members of the group that were not recognised in the Corporation’s own balance sheet as at 31 March 2025 was £175,614 (2024: liability of £174,043).

27 Legal Charges

A fixed legal charge dated 30 November 2006 exists over The Royal Shakespeare Theatre, The Other Place, 3 Chapel Lane and Avonbank Paddocks in Stratford-upon-Avon in accordance with the terms of grant funding for the redevelopment of the Royal Shakespeare Theatre from Arts Council England. The charge expires on 29 November 2026 and the value at the year-end was £52,899,025. (2024: £52,899,025).

A further fixed legal charge dated 24 June 2015 has been granted over the freehold land and buildings of The Other Place, which was redeveloped during 2016 in accordance with the terms of grant funding for the capital project from Arts Council England. The charge expires on 24 June 2035. At the balance sheet date, the value of the grant approved and drawn down was £3,000,000. (2024: £3,000,000).

A full title guarantee dated 19 June 2014 exists over the Royal Shakespeare Theatre as a continuing security for the payment or discharge of any secured obligations under the grant contract issued by the National Heritage Memorial Fund in respect of the development of the Swan Wing of the theatre. At the balance sheet date, the value of grant approved and draw down was £2,849,200. (2024: £2,849,200).

A fixed legal charge dated 15 November 2010 exists over some of the other freehold residential properties in accordance with the terms of an agreement with the Trustees of the defined benefit pension scheme. At the balance sheet date, the value of this charge was £6,845,000 (2024: £6,845,000).

A full title guarantee dated 31 January 2019 exists over the freehold land and buildings of 38/39 Waterside as a continuing security for the payment or discharge of any secured obligations under the grant contract issued by the National Heritage Memorial Fund in respect of the re-development of the Costume Workshop. At the balance sheet date, the value of grant approved was £950,000 and payments of £1,137,125 (2024: £1,137,125) had been made to the RSC.

A further fixed legal charge dated 31 January 2019 has been granted over the freehold land and buildings of 38/39 Waterside in accordance with the terms of grant funding for the capital project from Arts Council England. The charge expires on 31 January 2039. At the balance sheet date, the value of the grant approved was £2,146,800 and payments of £2,146,800 (2024: £2,146,800) had been made to the RSC .

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Comparative consolidated statement of financial activities for the year ended 31 March 2024

for the year ended 31 March 2024
Operations/
Unrestricted		 Restricted
unrestricted
designated		 Restricted
Endowment
Total funds
Note funds
funds		 funds funds 2024
£’000 £’000 £’000 £’000 £’000
Income and endowments from:
Charitable activities
Performance related grants 2 15,260 - 513 - 15,773
Income from productions, tours and theatre
operations 3 58,167 - - - 58,167
Creative learning and engagement 1,238 500 - 1,738
Donations and legacies 4 3,729 - 1,713 - 5,442
Other trading activities 10(c)
7,089		 - - - 7,089
Investments 5 1,615 - 4 211 1,830
Licensing of rights 2,083 - - - 2,083
Total 89,181 - 2,730 211 92,122
Expenditure on:
Charitable activities
Productions, tours and theatre operations 3 (72,944)
(1,191)		 (2,646) - (76,781)
Creative learning and engagement (2,715)
-		 (847) - (3,562)
Raising donations and legacies (1,716)
-		 - - (1,716)
Other trading activities (5,564)
-		 - - (5,564)
Share of net loss in joint ventures 10(a)
(223)
-		 - - (223)
Investment management costs (70)
-		 (2) - (72)
Total 7 (83,232)
(1,191)		 (3,495) - (87,918)
Net gains on investment assets 10(b)
1,168		 - 63 1,069
 2,300
Net income / (expenditure) 7,117 (1,191) (702) 1,280 6,504
Transfers between funds 18 (21,914)
38,393		 (16,219) (260) -
Net (expenditure) / income after transfers (14,797)
37,202		 (16,921) 1,020 6,504
Other recognised losses
Actuarial gains on defined benefit pension
scheme 22 183
 -
 -
 -
 183
Net movement in funds (14,614)
37,202		 (16,921) 1,020 6,687
Reconciliation of funds
Total funds brought forward 18 23,565
 9,149
 77,749
 13,370
 123,833
Total funds carried forward 18 8,951
 46,351
 60,828
 14,390
 130,520

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

The notes on pages 42 to 82 form part of these accounts.

83

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2025

Comparative corporation statement of financial activities for the year ended 31 March 2024

for the year ended 31 March 2024
Operations/
Unrestricted		 Restricted
unrestricted
designated		 Restricted
Endowment
Total funds
Note funds
funds		 funds funds 2024
£’000 £’000 £’000 £’000 £’000
Income and endowments from:
Charitable activities
Performance related grants 2 15,260 - 513 - 15,773
Income from productions, tours and theatre
operations 3 99,034 - - - 99,034
Creative learning and engagement 1,238 - 500 - 1,738
Donations and legacies 4 3,729 - 1,713 - 5,442
Other trading activities 10(c) 2,879 - - - 2,879
Investments 5 1,615 - 4 211 1,830
Licensing of rights 2,078 -
 - - 2,078
Total 125,833 -
 2,730 211 128,774
Expenditure on:
Charitable activities
Productions, tours and theatre operations 3 (114,291) (1,191) (2,646) - (118,128)
Creative learning and engagement (2,715) - (847) - (3,562)
Raising funds
Raising donations and legacies (1,732) - - - (1,732)
Other trading activities (883) - - - (883)
Investment management costs (70) -
 (2) - (72)
Total 7 (119,691) (1,191)
 (3,495) - (124,377)
Net gain on investment assets 10(b) 1,168 -
 63 1,069
 2,300
Net income / (expenditure) 7,310 (1,191) (702) 1,280 6,697
Transfers between funds 18 (21,914) 38,393
 (16,219) (260) -
Net (expenditure) / income after transfers (14,604) 37,202 (16,921) 1,020 6,697
Other recognised losses
Actuarial gains on defined benefit pension
scheme 22 183
 -
 -
 -
 183
Net movement in funds (14,421) 37,202 (16,921) 1,020 6,880
Reconciliation of funds
Total funds brought forward 18 22,727
 9,149
 77,749
 13,370
 122,995
Total funds carried forward 18 8,306
 46,351
 60,828
 14,390
 129,875

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

The notes on pages 42 to 82 form part of these accounts.

84