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2021-07-31-accounts

London Symphony Orchestra Limited (Consolidated)

Report and Financial Statements For the year ended 31 July 2021

Company Registration No. 83608 Charity Registration No.232391

London Symphony Orchestra Limited

Report and Financial Statements

For the Year Ended 31 July 2021

Contents Page
Officers and Professional Advisers 1
Directors’ Report 2
Independent Auditor’s Report 14
Consolidated Statement of Financial Activities 16
Consolidated Balance Sheet 17
Consolidated Statement of Cash Flows 18
Notes to the Accounts 19

London Symphony Orchestra Limited Officers and Professional Advisers

Chair

David Alberman*

Vice-Chairs

David Jackson Harriet Rayfield

Managing Director

Kathryn McDowell CBE

Other Directors

Angela Barnes* Anthony Bloom (retired 14 October 2021) Professor David Gann (appointed 14 October 2021)

Matthew Gardner Richard Hardie Niall Keatley Dame Mary Marsh Jonathan Moulds CBE Olivier Stankiewicz* Janis Susskind OBE

* Playing Members of the Orchestra

Company Secretary

Rikesh Shah

Company Number

83608

Charity Number

232391

Registered Office

Barbican Centre, Silk Street, London EC2Y 8DS

Bankers

Lloyds Bank plc, 25 Gresham Street, London EC2V 7HN

Solicitors

Baker & McKenzie LLP, 100 New Bridge Street, London EC4V 6JA

Auditor

Haysmacintyre LLP, 10 Queen Street Place, London EC4R 1AG

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London Symphony Orchestra Limited

Directors’ Report

Introduction

The Directors of the London Symphony Orchestra Ltd (“LSO”) present their Annual Report and Financial Statements for the year ended 31 July 2021.

Administrative details

London Symphony Orchestra Ltd was established in 1904 and is a registered charity (no. 232391) and a company (no. 83608) limited by shares. Its registered office is the Barbican Centre, Silk Street, London EC2Y 8DS. Other administrative information, including the names of the Directors who served during the year and at the date of approval of this report, is set out on page 1.

Structure, Governance and Management

The LSO’s governing documents comprise the Memorandum and Articles of Association and state that the objects of the Company are to promote, maintain and advance musical education and to encourage the arts of music and singing. All Members of the Orchestra are required to hold ten ordinary shares of £1 each for the duration of their membership. Any surpluses are retained by the Company to further support its objects. No dividends are paid to shareholders.

The organisation is governed by the Board of Directors who are also the Trustees of the charity. The Board comprises playing members of the Orchestra (Playing Directors) and a number of Non-Playing Directors. All Directors are elected to the Board by the Members of the Orchestra. The Playing Directors must always hold a majority on the Board, and the Chair and Vice-Chairs must be Playing Directors. The Board meets once a quarter to determine the overall strategy of the organisation and to ratify all decisions made under delegated powers.

The Board delegates the orchestral governance and decisions relating to the day-to-day operation of the Orchestra itself to the Orchestra Committee; this Committee, which comprises players and the Managing Director, meets frequently throughout the year.

The financial governance is delegated by the Board to the Finance Committee which must consist of more NonPlaying Directors than Playing Directors. The Finance Committee meets quarterly to review the management accounts and to consider other financial matters including the budget.

The day-to-day business of the LSO is managed by a staff team which reports through Heads of Department to the Managing Director.

The LSO has two wholly-owned subsidiaries, each of which has its own Board of Directors which includes representatives from the LSO Board. LSO Productions Limited runs LSO Discovery, LSO St Luke’s and commercial activity including corporate sponsorships. LSO Live Limited runs LSO Live, the Orchestra’s record label, and produces digital content.

Board Recruitment, Induction and Training

Playing Directors must be current members of the Orchestra and as a result, have a good understanding of the workings of the Orchestra. Non-Playing Directors are selected on the basis of their skills and experience in particular areas, including finance and business. The composition of the Board is reviewed periodically to ensure that the Board collectively possesses the skills necessary to carry out its role effectively.

Induction processes for Directors are dealt with on a one-to-one basis. These include the provision of the company’s governing documents, the most recent Annual Report and Accounts, recent Board and Committee minutes, and the Diversity, Equity and Inclusion Action Plan.

Key Management Remuneration Policy

Remuneration of all staff, including key management, is set during the annual budgetary process, using benchmarks where appropriate. Key management remuneration is approved by the Finance Committee.

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London Symphony Orchestra Limited

Directors’ Report (continued)

The LSO’s Mission, Objectives and Activities

From delivering artistic excellence on stage, in recordings, digitally and on film, to a far-reaching education and community programme, the London Symphony Orchestra’s mission is to inspire hearts and minds through world-leading music-making.

This mission is at the heart of everything the LSO does, and drives the following objectives:

In normal times, as the Resident Orchestra at London’s Barbican Centre, the LSO regularly performs in London, throughout the UK and overseas, with its signature sound emanating from the combined virtuosity of its outstanding musicians and its family of artists, chief amongst them being Music Director, Sir Simon Rattle. LSO Discovery, a world-leading education and community programme, connects people from all walks of life to the power of great music and its reach extends across East London, the UK and the world through both in-person and digital activity. Through streaming services, broadcasts and recordings of its performances and educational programmes, the LSO reaches many millions of people around the world each year.

Inevitably, the unprecedented challenges and demands posed by the Covid-19 pandemic during the past year meant that all efforts were focused on the immediate priorities of resuming performances and other activity as soon as it was safe to do so; maintaining the LSO’s presence and relevance during a period when audiences mostly could not attend live performances; and stabilising the organisation’s financial position in the light of severe reductions in income.

The Orchestra was able to perform through most of the year at LSO St Luke’s but mostly for audiences to enjoy remotely rather than in person, and LSO Discovery also continued to largely operate on a virtual basis. Most other areas of work were disrupted until government restrictions and external conditions allowed a gradual resumption, and even then with a range of additional measures in place to ensure that all operations took place in a Covid-secure way at all times.

As the initial crisis of the pandemic passes, wider external changes are taking place, and the LSO will continue to adapt to reflect the needs, expectations and priorities of audiences, partners and funders, and of society at large. There is an opportunity to positively adapt and establish even better ways of making music and sharing this as widely as possible, as well as having an impact that stretches well beyond the LSO’s direct areas of work.

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London Symphony Orchestra Limited

Directors’ Report (continued)

Public Benefit

Directly engaging with the public is key to all aspects of the LSO’s work and the Directors take particular account of the Charity Commission’s guidance in this area. There is a clear focus on ensuring the widest possible access by the broadest range of people to the LSO’s performances, recordings, broadcasts and its education and community work.

During this year due to the impact of the pandemic, playing to live audiences and delivering in person education and community work was extremely limited. The LSO therefore focussed on maintaining its engagement with the public through a high volume of digitally delivered concerts and learning experiences. The LSO’s streamed concerts from LSO St Luke’s gave much enjoyment and the estimated worldwide audience over the year for all of the LSO’s content was more than 44 million people.

Commercial recordings output continued this year with a significant expansion of engagement by audiences through audio subscription services such as Apple, Amazon and Spotify. Several film scores and non-classical recordings had global impact including Neil Diamond’s Classical Diamonds ; Hyundai Mercury Prize nominee Promises with Floating Points and Pharoah Saunders; and Kôrôlén featuring the LSO and Toumani Diabeté. In addition, several films were released for which the LSO recorded film scores pre-pandemic.

The LSO invests in long-term initiatives to ensure that the enjoyment of and participation in music by the public at large remains at the heart of the LSO’s core activities. Most of the concerts recorded this year were available free of charge for a period of time, the LSO also delivered free live music on YouTube every Sunday for the duration of the traditional concert season. In addition, a significant number of concerts were broadcast on Classic FM or BBC Radio 3.

STRATEGIC REPORT

The Directors in preparing this Strategic Report have complied with section 414C of the Companies Act 2006

Achievements and performance

Overview

Following the unprecedented disruption of the early stages of the Covid-19 pandemic during which no live activity was possible for some 3 months, there was hope at the start of the financial year, that the LSO would be able to gradually return to normal. Whilst activity did slowly resume during the year, various government restrictions including the effective lockdown in early 2021 meant that a return to any form of normality was not possible.

Given the circumstances, the LSO sustained its engagement with audiences around the world through a regular digital programme of live and recorded performances, most of which took place at LSO St Luke’s which became the Orchestra’s home for most of the year.

In May 2021, following an absence of 14 months, the Orchestra played six concerts in the Barbican. The socially distanced in-person audience greeted the players and Music Director Sir Simon Rattle with a standing ovation and resounding cheers of appreciation. This significant and emotional moment hailed the beginning of return to live engagement with audiences in concert halls and in schools, colleges and hospitals.

Soon after, more face-to-face engagement with audiences and participants became possible, with one of the Orchestra’s first engagements being a concert at Snape Maltings in Aldeburgh, the beginning of a new UK partnership. This gradual reversion to live engagement in the concert hall and in the classroom highlighted once again that nothing is as valuable and cherished as face-to-face live interaction between performing artists and audiences, teachers and students.

In June and July 2021, the Orchestra undertook the first international engagements by any UK Orchestra since March 2020 with a five week residency at the Aix-en-Provence Festival. This residency was hailed as a major artistic success and attracted the highest praise from audiences and critics alike.

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Directors’ Report (continued)

Much effort was involved by the LSO’s staff team to develop and implement measures to ensure that all activities were ‘Covid secure’, to minimise the risk of infection amongst players, staff and audiences. The LSO also continued to play an important role working with colleagues across the cultural sector and with government in developing Covid-secure practices and guidelines for artists and audiences.

With the vaccination programme in place, a firm grasp of social distancing guidelines, testing procedures and the implementation of other safety measures the Orchestra a full Season has been planned for 2021/22 at the Barbican and at LSO St Luke’s. Some European touring dates are planned and much more in person teaching and community work will take place during the new academic year starting in September.

The LSO is deeply grateful to all who have helped the LSO navigate the immense challenges of the last financial year, especially those who have assisted financially at a time when tickets sales and fees for overseas touring remained elusive. The loyalty of Patrons, Friends, audiences, and the Always Playing fundraising Appeal have been an essential lifeline for the LSO and its musicians. In addition, the LSO has been sustained by the on-going support of the City of London Corporation and Arts Council England, two Cultural Recovery Fund grants and the Coronavirus Job Retention Scheme.

Throughout this period, the LSO musicians, staff, Directors, advisors, funders and audiences have pulled together as one, to ensure the future of this great Orchestra. Significant uncertainties and challenges remain: with a significant budgeted deficit for the next financial year, on top of the losses garnered during the pandemic to date, there is much still to do to fully stabilise the organisation and its business model.

Performances

The LSO’s expanded free digital programme of concerts, Always Playing, which began in in April 2020, continued to provide free archive and fresh new content throughout the year, screened on YouTube and other pay-to-view channels. LSO musicians, conductors and guest artists contributed in generating new editorial content to support the streaming on regular Thursday evening, Friday lunchtime and Sunday evening slots.

The Orchestra played 37 LSO concerts with an in-person audience, with 34 full orchestra concerts delivered via broadcast on television and radio, and 24 concerts streamed on numerous subscription and free platforms reaching approximately 225,000 viewers. The total estimated audience over the year was in excess of 44 million people.

Quarantine measures and government restrictions meant that the availability of many non-UK based artist and conductors was subject to cancellation at late notice. As a mitigation measure, a cover conductor programme was introduced. Cover conductors followed rehearsals and stepped in if needed, creating a valuable opportunity to introduce a number of new conductors to the Orchestra and audiences.

During this period the Orchestra was limited to a maximum of 70 players in LSO St Luke’s, and it was decided that concerts would be shorter and recorded without an interval, providing an opportunity to explore new repertoire.

Sir Simon Rattle opened the autumn 2020 season with the traditional all-British programme, featuring Oliver Knussen’s Songs and a Sea Interlude from Where the Wild Things Are opening the programme, Mark Anthony Turnage’s Last Song for Olly receiving its world premiere, and the final piece Britten’s Serenade for Tenor, Horn and Strings .

In April, Principal Guest Conductor Gianandrea Noseda returned to London for the first time in over twelve months to conduct the world premiere of Mark Simpson’s Violin Concerto for and with Nicola Benedetti at LSO St Luke’s. Conductor Laureate Michael Tilson Thomas featured prominently in June, performing to live audiences at the Barbican and Snape Maltings, Aldeburgh.

Other leading guest conductors who joined the LSO included Thomas Adès, Sir John Eliot Gardiner, Barbara Hannigan, John Wilson, Jonathan Bloxham, Stephanie Childress, Jonathon Heyward, Kerem Hasan, Paavo Järvi, Mirga Gražinyte-Tyla, Kevin John Edusi, Jack Sheen and Ryan Wigglesworth. Susanna Mälkki conducted the LSO during the Aix-en-Provence residency for the world premiere of the Kaija Saariho opera Innocence

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Directors’ Report (continued)

The LSO was able to field an impressive line-up of leading soloists, albeit mostly those based in the UK, including singers Karen Cargill, Allan Clayton, Lucy Crowe, Gerald Finley, Barbara Hannigan, Abigail Kelly, Magdalena Kožená and Allan Watkins; pianists Krystian Zimerman, Peter Donohoe, Kirill Gerstein, Mitsuko Uchida and Yuja Wang; horn player Richard Watkins; and violinists Nicola Benedetti and Alina Ibragimova.

This period of recorded concerts composed for smaller groups of musicians provided an opportunity for LSO players to showcase their talent as soloists. Roman Simovic (violin) and Carmine Lauri (violin) played the Schnittke Concerto Grosso No 1 for Two Solo Violins; Rachel Gough (bassoon) and Chris Richards (clarinet) played Strauss’ Duett-concertino for Clarinet and Bassoon; and Roman Simovic, Olivier Stankiewicz (oboe), Rebecca Gilliver (cello) and Daniel Jemison (bassoon) played Haydn’s Sinfonia concertante in B-flat Op 84.

Although the Barbican was closed during much the year, the LSO as Resident Orchestra was pleased to be able to offer a number of performances for the Live from the Barbican series of online concerts. This will continue into the future as part of a revised residency proposition which includes a joint commitment to growing audiences and diversifying the artistic offering, for example through further jazz and gospel collaborations.

The press continued to follow LSO concerts on streaming channels so that key moments such as the world premieres received appropriate levels of appreciation. In the case of the Mark Simpson Violin Concerto, reviews were so ecstatic that the piece was re-programmed for the final concert of the Season at the Barbican as part of a wider programme of music of today, where it was met with standing ovations. New and 21st-century works were the focus of a number of other concerts; in particular, the concert on 13 June at the Barbican conducted by Ryan Wigglesworth featured five recent works by Charlie Piper, Ayanna Witter-Johnson, Betsy Jolas, George Stevenson and Mark Simpson.

Whenever possible, BBC Radio 3 Lunchtime Concerts took place at LSO St Luke’s, in most cases without a live audience but recorded for broadcast. LSO Discovery presented a series of 12 live-streamed curated lunchtime concerts with presentation by animateur Rachel Leach and accompanied by digital teaching notes.

No overseas concerts were possible during this financial year until the LSO’s residency at the Aix-en-Provence Festival in June and July 2021. In addition to concerts and opera productions, the Orchestra was able to fulfil teaching commitments to the Mediterranean Youth Orchestra.

Although unable to travel elsewhere, the LSO worked with other overseas partners in different ways, in some cases recording bespoke concerts for streaming on local platforms. The Spanish version of LSO Play was launched in support of a partnership with Fundacion CorpArtes in Santiago, Chile, and the Japanese version of LSO Play was a further addition delivered in partnership with the British Council in Japan in the lead up to the Tokyo Olympic Games. New partnerships were also forged with the first screening on Greek National Television of a concert featuring Greek violinist Leonidas Kavakos, conducted by Sir Simon Rattle in January 2021, live from LSO St Luke’s.

LSO Discovery

LSO Discovery remained active throughout the year, delivering a broad and diverse programme which was delivered almost entirely digitally. LSO Discovery’s projects have always offered people of all backgrounds opportunities to experience the power of music in different ways, and this role became even more important as many people sought a release from the challenges of the pandemic.

During the year, LSO Discovery made huge steps forward in the development of new online concerts for young people with the full Orchestra, which has huge potential to increase the national reach of the LSO’s work. Space… but not as we know it , aimed at pupils at Key Stage 2 and families, explored orchestral music where social distancing between players is required by the music. Leon and the Place Between , presented by Paul Rissmann, and featuring soprano Abigail Kelly, featured a musical setting of the story of Leon, and brings to life the characters of the popular book written by Angela McAllister and illustrated by Grahame Baker-Smith. Both projects were released for free on YouTube, together with accompanying teacher resources.

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Directors’ Report (continued)

Where many young people had seen their musical opportunities fall away during the pandemic, LSO On Track sought to bring the young members of the LSO East London Academy (LSO ELA) and Next Generation programmes together with LSO musicians online. The LSO ELA String students worked with composer Ayanna Witter-Johnson and LSO musicians on a new composition for string orchestra. After coaching by LSO musicians, the students recorded their individual parts at home, and the piece was then pieced together with imaginative visuals to create a digital performance of DreamCity and this was subsequently performed lived by the students in Trafalgar Square in August 2021.

LSO On Track also maintained important relationships with schools across East London. Teachers who had been on the Music in the Classroom CPD programme in 2019/20 season were allowed to carry on into the 2020/21 season; this was a vital move to support teachers as they continued to adapt around the coronavirus restrictions, school closures and pupils learning from home. On-going work included bespoke support to teachers, And online interactions with Special Schools.

Despite a challenging year for health settings, LSO Discovery’s Community strand was able to work creatively with health partners. Online visits to children in the Royal London Hospital school were made possible by the dedicated hospital staff, where LSO musicians visited the bedsides of young people via a touring iPad, providing a musical stimulus in an otherwise anxious time. Work in Newham University hospital saw LSO musicians playing in the corridors and foyers of the building, lifting the spirits of passing patients, staff and visitors, and creating ‘musical hugs’ in the form of short films of improvised music that individuals could send to their loved ones. In Spring 2021, players led wellbeing sessions for hospital staff seeking respite from the long and stressful days, which have had a great response from NHS staff. The work with hospitals was also been summarised in a blog (https://lso.shorthandstories.com/the-healing-power-of-music/index.html).

The LSO Connect programme started working with older adults in the development of an intergenerational programme, working in partnership with local community centres. At the other end of the age spectrum LSO musicians engaged with families with Under 5s online throughout the year, culminating with five in person sessions at the end of the season. LSO Discovery also worked with Islington partner Bright Start to deliver inperson sessions for new parents and their young babies. LSO Create, the programme working with adults with learning disabilities, continued throughout the year, allowing for a mixture of group and 1:1 sessions between players and participants to explore the participants’ individual musicality.

Singing programmes adapted to additional restrictions around singing in groups due to concerns about the potential spread of infection. An online Christmas Singalong concert led by Choral Director, Simon Halsey, invited everyone at home to sing along with the LSO through supporting resources; this concert was the LSO’s most watched newly produced YouTube video in 2020.

The LSO Discovery Choirs continued weekly sessions online throughout the pandemic, and the result of their hard work was evident in a performance they delivered from LSO St Luke’s to an audience of friends and family watching at home.

The Guildhall Masters in Orchestral Artistry continued throughout the year, blending live and online experiences for 22 students from 11 different countries. Students had online and live repertoire coaching sessions, and access to LSO artists through online conversations and live attendance at LSO rehearsals, and introductory sessions to LSO Discovery’s work.

Work with composers at the start of their careers resumed with a Soundhub Showcase filmed without an audience at LSO St Luke’s, for later broadcast. The Panufnik Workshop with the full Orchestra took place in March 2021, a year after it was originally scheduled. These digital concerts now feature as part of the LSO’s YouTube ‘Sounds of Today’ playlist. The Panufnik workshop resulted in the commission of two new works by Jonathan Woolgar and Louise Drewett to be performed in a future season by the Orchestra.

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London Symphony Orchestra Limited

Directors’ Report (continued)

Discovery Friday Lunchtime concerts continued throughout the season with online streams as well as audiences whenever possible. The relaxed performance model developed further during the year, with the aim of increasing access to music for people with autism, sensory and communication impairments and learning disabilities. An adapted sign language interpretation with more visual and gestural elements was provided, alongside closed captions and accessible digital programme notes. These concerts were particularly successful in engaging many of Discovery’s partner Special Schools in East London who joined the concert online.

The pandemic also provided an opportunity to develop and share models with communities internationally through digital means. As noted earlier, LSO Play which now includes Britten’s Four Sea Interludes , was translated fully into Spanish and Japanese. Another new initiative was ‘Digital Tea Time’ recitals for communities in Germany, as part of an online partnership with Konzerthaus Dortmund.

LSO Live

The LSO’s recording label maintained a strong programme of new releases, including projects such as the Schumann cycle, and Sir Antonio Pappano’s Vaughan Williams Symphonies 4 and 6, alongside strategically important initiatives such as Panufnik Legacies III.

The majority of new releases entered the top 10 positions in the UK Classical charts. Highlights include Vaughan Williams’ Symphonies 4 and 6 which reached No 3 in the UK Classical Chart and No 5 in the US Billboard; Schumann Symphonies 1 & 3, streamed 1.7 million times on Apple; and Shostakovich Symphonies 9 and 10, which became LSO Live’s most streamed album of all time on Amazon Music.

The LSO’s broadcast strategy continued to be critical in enabling the Orchestra to continue to work during the pandemic. LSO Live secured licences across its existing media partners, but also delivered projects to a number of new partners including the first broadcast on national Greek TV, ERT; a partnership with The Financial Times for its first digital Arts conference; and a pilot project in China supported by the British Council, which offered four LSO concerts to Chinese cinema audiences.

Third Party Recordings

Several recording projects involving the Orchestra had a significant international impact, including in particular the collaboration between Floating Points and jazz saxophonist Pharoah Saunders which reached the shortlist for the 2021 prestigious Mercury Prize.

There was also much acclaim for the live recording release of revered Malian kora virtuoso Toumani Diabaté in concert with the Orchestra, whilst Neil Diamond’s orchestral version of his most well-known songs helped the LSO to reach the top of the international Christmas record charts the for the second year in succession.

Artistic Appointments and Centre for Music

In early 2021, it was announced that Sir Simon Rattle had made a lifetime commitment to the LSO by taking on the role of Conductor Emeritus after he steps down as Music Director in July 2023. Soon after, the LSO announced the appointment of Sir Antonio Pappano as Chief Conductor from August 2024. Audiences, musicians and the international musical community were universally positive about this appointment.

Activity on the Centre for Music project, on which the LSO worked in partnership with the Barbican and the Guildhall School, was limited during the year. In February 2021 the City of London Corporation formally decided not to progress work on the project. Whilst this was naturally a disappointment, the huge impact of the pandemic made it very difficult to advance a venture of this scale. Many of the ideas and relationships developed during the planning stages of the project will be progressed in other ways in coming years. The City of London Corporation subsequently announced plans to explore refurbishment of the Barbican Centre over coming years which will be to the benefit of the LSO’s performers, audiences and supporters.

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Directors’ Report (continued)

Diversity, Equity and Inclusion

The LSO believes firmly in the value and importance of supporting and promoting diversity, equity and inclusion (DEI) in everything that it does, and it expects all those that work with the LSO in any capacity to support this approach.

By promoting and supporting DEI, the LSO’s work becomes immeasurably stronger through innovation, new ideas and consideration from different perspectives. It enables the widest range of people to access, benefit from, and contribute to the LSO’s work, and it creates an inclusive organisational culture which values and celebrates difference.

In addition, as an international leader in its sector, the LSO recognises the role and responsibility that it has to champion DEI and set an example in this area. In both the activity that the LSO delivers, and the people that deliver it, the LSO seeks to ensure that DEI is a central element of its ethos. This commitment is key to ensuring that the LSO remains relevant and reflective of wider society now and into the future.

Despite the pandemic, the LSO devoted much energy to advancing its efforts around DEI. A Diversity, Equity and Inclusion Action Group, comprising LSO staff members and Members of the Orchestra was formed and led the development of a new DEI Policy and Action Plan which was adopted by the LSO Board in March 2021. The Action Plan was informed by the findings from participation in the pilot cohort of I’M IN, a sector-wide commitment led by London Music Masters designed to encourage structured conversations around DEI throughout the classical music sector.

The DEI Policy and Action Plan outlines clear objectives, actions and KPIs across the LSO’s Creative Programme; Artists and Partners; Audiences and Participants; Governance and Workforce; and Communications and Sector Leadership.

Alongside the policy development and long-term planning, there was also immediate progress in relation to DEI. Throughout autumn 2020, the LSO’s orchestral concerts at LSO St Luke’s featured works by a number of Black and female composers, including the UK premiere of George Walker’s Strands , Hannah Kendall’s The Spark Catchers , and works by Lili Boulanger, Betsy Jolas, Sally Beamish, Kaija Saariaho, Sasha Siem, Elizabeth Winters, Alma Mahler and Grażyna Bacewicz. These concerts also showcased a number of female conductors and conductors from Black, Asian or Ethnically Diverse backgrounds, including Jonathan Heyward, Kerem Hasan, Stephanie Childress, Kevin John Edusei, Mirga Gražinytė-Tyla and Jessica Cottis. For each of these conductors this was their main season LSO debut.

A digital project in collaboration with Culture Mile saw LSO players Maxine Kwok and Gareth Davies collaborate with dancers Faye Stoeser, Salomé Pressac and Astrid Mence from Ballet Black, creating two short films to music by Jasmin Kent Rodgman and Darren Bloom. The LSO’s Choral Christmas concert in December 2020 showcased Black soloists Abigail Kelly and Rodney Earl Clarke, and continued the LSO choirs’ exploration of vocal music from the Gospel tradition.

LSO Discovery’s programmes working specifically with protected characteristic groups were sustained digitally throughout the pandemic, including digital creative music sessions for young people and adults with learning disabilities through the LSO Musical Inclusion and LSO Create programmes.

The LSO East London Academy had a high proportion of Black, Asian or Ethnically Diverse participants. Launched in 2019, the LSO East London Academy was developed in response to a significant gap in the music sector’s provision of high-level instrumental coaching that is accessible to young people from lower socio-economic backgrounds. The programme aims to accelerate the instrumental learning, confidence and aspirations of talented east London musicians aged 11-18, increasing the pool of young people from diverse and disadvantaged backgrounds who have the potential to pursue a career in music.

As noted earlier, a Relaxed Friday Lunchtime Concert was live-streamed on YouTube with a British Sign Language signer, live captions, a breathing and meditation section, and resources for the LSO’s partner Special Educational Needs schools to explore in the classroom.

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Directors’ Report (continued)

Throughout the year, the LSO also collaborated on numerous studio recording projects with artists from both non-classical musical backgrounds, and Black, Asian and Ethnically Diverse backgrounds, broadening the stylistic and ethnic diversity of the LSO’s artistic collaborations. Projects included albums recorded with Toumani Diabaté; in collaboration with Floating Points and saxophonist Pharoah Sanders; and Gregory Porter’s sixth studio album, All Rise , which was nominated for a 2021 Grammy Award for best R&B Album.

Partnerships

The LSO’s success is reliant on the strong partnership with the City of London Corporation and Arts Council England. Their vital investment, combined with that of the private sector; ticket sales; income from strategic partnerships around the globe; and commercial income from recordings and other engagements, builds financial resilience and enables the LSO to deliver its vision. During this financial year all earned income streams severely reduced, the LSO is hugely grateful to the UK government and Arts Council England for the Cultural Recovery Fund awards, and to both Arts Council England and the City of London for their continued funding.

The LSO invests significant effort in nurturing, developing and strengthening relations with key stakeholders and partners. Strong relationships with sponsors and donors continue to be central and pivotal to the LSO’s success. The LSO’s corporate supporters stand alongside the LSO at concerts in London and around the world. The Principal Partnership with BMW continues to be strong and the annual BMW Classics open-air concert in Trafalgar Square which had to be in 2020 was rescheduled for August 2021.

A critical new partnership with DnaNudge was key to the Orchestra’s return to regular working together in mid2020. DnaNudge provided thousands of free rapid Covid-19 PCR tests to the LSO to ensure regular testing for all LSO musicians, guest artists and essential support staff.

The generous philanthropy of individuals continued to grow with the Always Playing Appeal in support of the LSO’ recovery in its second year. The work of LSO Discovery received vital support from a large number of charitable trusts and foundations, as well as from a number of individuals.

More than ever in these challenging times, the LSO is especially grateful to all those companies, individuals and charitable trusts who provide funding, without which the Orchestra could not achieve its ambitions. A list of acknowledgements is set out at the end of this report, in recognition of this invaluable support.

Achievements against objectives

As the report above demonstrates, the LSO had a successful productive year artistically, despite the disruption and challenges created by the pandemic. Annual objectives that were achieved, working within the constraints imposed by the pandemic, include:

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Directors’ Report (continued)

Financial Review

Income for the Group was £11.8m (2019/20: £16.6m), significantly reduced compared to previous years due to the impact of the pandemic, particularly in relation to commercial and international engagements. Because of the reduction in activity, total expenditure fell to £12.2m (2019/20: £16.7m).

The LSO was fortunate to continue to receive core funding from Arts Council England and the City of London Corporation, as well as emergency funding from the Cultural Recovery Fund. Together with income from activity which was able to take place and generous donations and grants, there was sufficient income to sustain a meaningful level of work and earnings for the Members of the Orchestra.

After gains and losses, the total deficit for the year was £542,000 (2019/20: £137,000) of which £269,000 related to Unrestricted Funds (2019/20: £123,000). The deficit led to a reduction in total reserves from £6.1m to £5.6m. Despite the challenges of the past year and the financial outturn, the balance sheet and cash position remains sound. However, a significant deficit is budgeted for the new financial year.

Reserves

In accordance with best practice and Charity Commission guidance, the LSO maintains reserves in order to provide for contingencies that may arise in the future. This is particularly necessary given the dependence on a number of variable income streams including box office sales, income from tours, donations and sponsorship and the adverse impact on all of these, as well as the on-going impacts of the pandemic and Brexit.

For the purposes of this policy, the Directors define free reserves to be unrestricted funds, excluding fixed assets, which have not been designated for specific purposes. The LSO’s policy is to set a target range for reserves of between three and six months’ core costs associated with keeping the Orchestra’s main Barbican season and LSO Discovery programme operating at a viable level.

On this basis, the Directors have set a target range for free reserves of between £2.5 million and £5 million, based on pre-pandemic levels of activity. The free reserves at 31 July 2021 were £2.1m (2019: £2.4m) which is below the target range. The priority is to stabilise the financial position after the pandemic and then to build up reserves to the target level over time.

Plans for the future

The LSO will continue its broad range of activities, with a steady resumption in live activity including the season of concerts at the Barbican, as well as more engagements in the UK and overseas. LSO Discovery will also return to more in person activity but retaining a hybrid model of live and digital engagement where appropriate. LSO St Luke’s will remain the Orchestra’s base when it is not at the Barbican, and the home of LSO Discovery, with other uses return slowly and on a limited basis. LSO Live will continue to develop and distribute audio and audiovisual recordings and broadcasts.

Other priorities include continued work to implement the Diversity, Equity and Inclusion Plan and to deepen the LSO’s engagement with audiences, communities and the wider public. The LSO’s Environmental Action Plan will be fully reviewed and updated, to ensure meaningful progress in reducing the environmental impact of the LSO’s work over coming years.

Specific plans across all areas in the year ahead will remain flexible as there may be a need to adapt depending on the on-going impact of the pandemic and wider economic and operational factors. Much effort will be required to minimise the expected operating deficit.

Alongside short-term planning, the LSO will implement a new strategy focused on adjusting its business model to take account of the much changed external environment, including the impacts of the pandemic, Brexit and financial challenges for partners in the UK and abroad. A key priority will be to return to a break-even business model within the next two years.

11

London Symphony Orchestra Limited

Directors’ Report (continued)

Principal Risks and Uncertainties

A risk register is reviewed and updated by Heads of Department on a regular basis and the Finance Committee reviews key risk areas periodically. Through this process, the major risks to which the Company is exposed have been reviewed and procedures have been established to mitigate the impact of those risks. The major risks facing the group, are the on-going and long-term impacts of the pandemic on operations and finances; possible outbreaks of Coronavirus infections amongst LSO personnel; the impact of Brexit on operations and finances; and inability to raise sufficient commercial and private sector funds. Plans and processes are in place to manage and mitigate these and other risks as far as is practical.

Going Concern

The LSO benefits from the ongoing commitment of its core funders, with funding from Arts Council England confirmed through to March 2022 and funding confirmed from the City of London Corporation until March 2024. A number of sponsorship and other funding agreements are in place, for varying periods beyond the balance sheet date.

In addition to public funding, the LSO has a diversified range of other income streams and aims to be not critically dependent on any other single organisation for funding. These other income streams are gradually rebuilding following the pandemic with a number of international residencies and engagements planned over the coming 2 years as well as residencies within the UK.

Despite the immediate challenges, the LSO has plans in place to develop its activities in response to the changed economic and funding environment and to ensure that the organisation is thriving, successful, relevant and resilient in the decade ahead. The Directors therefore believe that the LSO is adequately placed to manage its business and financial risks and have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Fundraising Approach and Performance

The LSO subscribes to principles of fundraising best practice by committing to high standards, and being clear, honest, open, respectful, fair and reasonable, and accountable and responsible. The LSO is registered with the Fundraising Regulator and adheres to the standards of the Code of Fundraising Practice. No complaints were received about the LSO’s fundraising practices in the current year.

Acknowledgements

The Board of the LSO would like to express its deep thanks and appreciation to the people and organisations whose vital support underpins the activities of the Orchestra. Primary amongst these are:

The Board is also appreciative of the deep commitment of the LSO’s members and dedicated staff to maintaining its standing as a world-class orchestra, and the exceptional efforts of everyone during the pandemic to sustain the organisation.

12

London Symphony Orchestra Limited

Directors’ Report (continued)

Auditor

Each of the persons who is a Director at the date of approval of this report confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The Directors’ Report, incorporating the Strategic Report, was approved by the Board of Directors and signed on behalf of the Board.

Statement of Directors’ Responsibilities

The Directors are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Directors to prepare financial statements for each financial year. Under company law, the Directors 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 company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and the group for that period. In preparing these financial statements the Directors are required to:

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

David Alberman Chair

16 December 2021

13

London Symphony Orchestra Limited

Independent Auditor’s Report to the Members of London Symphony

Orchestra Ltd

Opinion

We have audited the financial statements of London Symphony Orchestra Limited for the year ended 31 July 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheets, the Consolidated Statement of Cash Flows and the 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).

In our opinion, the financial statements:

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 are independent of the group in accordance with the ethical requirements that are 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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. In connection with our audit of the financial statements, 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 or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

14

London Symphony Orchestra Limited

Independent Auditor’s Report to the Members of London Symphony

Orchestra Ltd (continued)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement set out on page 13, the directors 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 directors 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 directors are responsible for assessing the group’s and the parent charitable company’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 directors either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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.

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

Use of Audit Report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Weaver (Senior statutory auditor) for and on behalf of Haysmacintyre LLP, Statutory Auditor

10 Queen Street Place London EC4R 1AG

Date: 23/12/2021

15

London Symphony Orchestra Ltd

Consolidated statement of financial activities

(Incorporating an Income and Expenditure Account) Year ended 31 July 2021

Note
Income from:
Donations, grants and legacies
6
Charitable activities
7
Other trading activities
9
Investment income
10
Other
11
Total income
5
Expenditure on:
Raising funds
Charitable activities
Total expenditure
12
Net expenditure
15
Transfers between funds
Other recognised losses
Currency exchange losses
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 2021
Unrestricted
funds
£000
6,150
3,508
44
-
743
10,445
1,036
9,630
10,666
(221)
20
(67)
(268)
4,056
3,788		 2021
Designated
funds
£000
-
-
-
-
-
-
-
-
-
-
-
-
1,547
1,547		 2021
Restricted
funds
£000
959
124
-
-
237
1,320
-
1,574
1,574
(254)
(20)
-
(274)
493
219		 2021
Total
funds
£000
7,109
3,632
44
-
980
11,765
1,036
11,204
12,240
(475)
-
(67)
(542)
6,096
5,554		 2020
Total
funds
£000
6,117
8,118
653
8
1,713
16,609
1,737
14,928
16,665
(56)
-
(81)
(137)
6,233
6,096

As permitted by Section 408 of the Companies Act 2006, the Statement of Financial Activities of the Company is not presented as part of these financial statements. The net loss of the Company was £532,114 including the donation of subsidiary company profits.

There were no recognised gains or losses other than the net movement in funds for the year. All income and expenditure derive from continuing activities.

The notes on pages 19 to 39 form part of these accounts.

See note 3 for comparative Statement of Financial Activities analysed by funds.

16

London Symphony Orchestra Ltd

Company Number: 83608

Consolidated and Charity Balance Sheet

As at 31 July 2021

2021
2020
Note
£000
£000
Fixed assets
Tangible assets
17
1,855
1,844
Investment assets
18
-
-
Total fixed assets
1,855
1,844
Current assets
Stock
19
518
649
Debtors: amounts falling due within one year
20
4,285
2,115
Cash at bank
2,676
4,454
Total current assets
7,479
7,218
Current liabilities
Creditors: amounts falling due within one year
21
(3,780)
(2,966)
Net current assets
3,699
4,252
Total net assets
5,554
6,096
Total funds
23
Unrestricted funds
3,788
4,056
Designated funds
1,547
1,547
Restricted funds
219
493
Funds carried forward
5,554
6,096
Group		 2021
2020
£000
£000
1,662
1,633
-
-
1,662
1,633
-
-
4,083
2,222
2,498
4,361
6,581
6,583
(2,651)
(2,092)
3,930
4,491
5,592
6,124
3,859
4,377
1,547
1,547
186
200
5,592
6,124
Charity

The notes on pages 19 to 39 form part of these accounts. Approved by the Board on 16 December 2021 and signed on its behalf by:

D Alberman Chair

K McDowell Managing Director

17

London Symphony Orchestra Ltd

Consolidated and Charity Statement of Cash Flows

Year ended 31 July 2021

2021
2020
Note
£000
£000
Cash from operating activities
A
(1,560)
1,574
Cash flows from investing activities
Bank interest
-
8
Purchase of fixed assets
(218)
(201)
Increase / (decrease) in cash and cash equivalents in the year
(1,778)
1,381
Cash and cash equivalents at the beginning of the year
4,454
3,073
Total cash and cash equivalents at the end of the year
2,676
4,454
Reconciliation to cash at bank and in hand:
Cash at bank and in hand
2,331
4,109
Short-term deposits
345
345
2,676
4,454
A
Reconciliation of net movement in funds to net cash flow from operating activities
Net movement in funds
(541)
(137)
Depreciation charge
207
177
Bank interest
-
(8)
Decrease/(increase) in stock
131
(70)
Decrease/(increase) in debtors
(2,171)
1,273
Increase in creditors
814
339
Net cash from operating activities
(1,560)
1,574
Group		 2021
2020
£000
£000
(1,701)
1,739
-
8
(162)
(100)
(1,863)
1,647
4,361
2,714
2,498
4,361
2,153
4,016
345
345
2,498
4,361
(532)
(46)
133
121
-
(8)
-
-
(1,861)
943
559
729
(1,701)
1,739
Charity

Charity law prohibits the use of net cash inflows on any endowed or other restricted fund to offset net cash outflows on any fund outside its own objects, except on special authority. In practice this restriction has not had any effect on the cash flow for the year.

18

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

a) Basis of preparation

The financial statements have been prepared under the historic cost convention and in accordance with the Charities SORP 2015 (FRS 102) and the Companies Act 2006.

The London Symphony Orchestra Ltd is a Public Benefit Entity. It is a registered company in England & Wales (company number 83608 and charity number 232391).

The Group Financial Statements consolidate the results of the charitable company and its subsidiaries for the year ended 31 July 2021 after elimination of intra-group transactions.

The Directors have considered the financial and other risks facing the Group, including those arising as a result of Covid-19, and have assessed the Group’s ability to operate as a going concern including reviewing the financial position and forecasts, reserves levels and future plans. Following this assessment, which includes judgements regarding the various impacts of Covid-19 on the business, the Directors are confident that there is no material uncertainty that the charity and Group remain a going concern for the foreseeable future.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably. Ticket income and other income are stated net of Value Added Tax and consist primarily of ticket sales together with sales of other goods and services. Revenue from ticket sales is recognised at the time of the performance.

Donations are recognised when the Charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Legacy gifts are recognised on a case-by-case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.

Investment income and interest receivable are recognised on an accruals basis.

19

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

d) Expenditure

Expenditure is recognised on an accruals basis and has been classified under headings that aggregate all costs related to the category. Costs of raising funds are those costs incurred in attracting voluntary income and those incurred in trading activities that raise funds. Costs of charitable activities include expenditure associated with the performance of concerts and educational programmes and include both the direct costs and support costs relating to these activities. Governance costs are a sub-section of support costs and include those costs incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements. Support costs which include the central functions such as employee-related costs, premises and facilities, communications and information technology and other general management, are allocated across the categories of charitable expenditure and the costs of generating funds. The basis of the cost allocation is explained in Note 12.

e) LSO Live acting as an agent

LSO Live operates through a subsidiary company, LSO Live Ltd. Its operations include providing services relating to the distribution and marketing of recordings for external parties on a commercial basis. When providing such services, LSO Live acts as agent for its client rather than as principal. Accordingly, no transactions or balances relating to this particular activity are included in the financial statements other than the commission earned by LSO Live in its capacity as agent.

f) Foreign currencies

Assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the Balance Sheet date. Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Foreign currency gains and losses are recognised in the Statement of Financial Activities.

g) Funds

The General Fund is a general unrestricted fund and represents funds which are expendable at the discretion of the Directors in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

The Directors have established a Designated Fund, the purpose of which is to manage the effect on income of the fluctuation of numbers of Barbican concerts between years, and to fund any major capital investment that may be required in the future.

Restricted funds are subject to specific restrictions imposed by the donors and these funds are therefore not available for the Directors to apply at their discretion. The purpose and use of the various restricted funds is set out in Note 24.

20

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

h) Tangible fixed assets

Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment. At each reporting date fixed assets are assessed for impairment. If an asset is impaired the carrying amount is reduced to its fair value and the loss is recognised immediately. Depreciation is charged at rates calculated to write off the cost of each asset over its expected useful life on a straight-line basis as shown below:

Land and buildings - 15 years Motor vehicles - 4 years Instruments and music scores - 10 years* Fixtures, fittings and equipment - 3-10 years

A full year of depreciation is charged in the year of purchase.

i) Investments

In the parent charity balance sheet investments in subsidiary undertakings are measured at cost less impairment.

Stocks of CDs are held at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. At each reporting date inventories are assessed for impairment. If inventory is impaired, the carrying amount is reduced to its selling price less costs to complete and sell and the impairment loss is recognised immediately.

Development costs, representing the costs of recordings which are under way or have been completed but have not yet been released for sale, are held in the balance sheet and the costs charged to the Statement of Financial Activities in line with expected revenues for the recording.

k) Financial instruments

During the year the charity had financial assets and financial liabilities of a kind that qualify as other financial instruments, being forward contracts for the sale of foreign currencies. These were redeemed during the year.

l) Leases

Rentals paid under operating leases are charged on a straight-line basis over the lease term.

21

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

The company makes employer contributions to the LSO Group Personal Pension Plan underwritten by Aegon and to other personal pension schemes held by members of staff. These are individual money purchase arrangements owned by the employees. The pension cost charge represents contributions payable to the scheme. The company’s liability is limited to the amount of the contribution.

The Group Financial Statements consolidate the results of the charitable company and its subsidiaries for the year ended 31 July 2021 after elimination of intra-group transactions.

22

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

In the application of the Group’s accounting policies, which are described in Note 1, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The Directors do not consider that there are any critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed above.

Income and endowments from:
Donations and legacies
Charitable activities
Other trading activities
Investment income
Other
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income
Transfers between funds
Currency exchange (losses)
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 2020
Unrestricted
funds
£000
4,813
8,118
653
8
1,713
15,305
1,737
13,610
15,347
(42)
-
(81)
(123)
4,179
4,056		 2020
Designated
funds
£000
-
-
-
-
-
-
-
113
113
(113)
-
(113)
1,660
1,547		 2020
Restricted
funds
£000
1,304
-
-
-
-
1,304
-
1,205
1,205
99
-
-
99
394
493		 2020
Total
funds
£000
6,117
8,118
653
8
1,713
16,609
1,737
14,928
16,665
(56)
-
(81)
(137)
6,233
6,096

23

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

London Symphony Orchestra Ltd also owns the whole of the share capital of LSO Live Limited which manages all aspects of the LSO Live recording label and other media activity. Its taxable profit is also donated to London Symphony Orchestra Ltd.

Turnover
less: Cost of sales
Gross profit
less: Administration Expenses
Operating Profit/(Loss) for the year
Interest receivable
Corporation Tax relief
less: Donation to parent charity
Retained Profit/ (Loss) for the year
Assets
less: Liabilities
Net Funds		 2021
2020
£000
£000
5,803
11,501
(5,464)
(11,022)
339
479
(1,067)
(1,424)
(728)
(945)
-
-
716
854
-
(12)
(91)
2,107
1,312
(2,158)
(1,351)
(51)
(39)
LSO Productions Ltd		 2021
2020
£000
£000
1,379
791
(1,134)
(529)
245
262
(113)
(182)
132
80
-
2
-
-
(132)
(80)
-
2
-
975
-
(963)
-
12
LSO Live Ltd
United Kingdom
Europe
Asia
Latin America
USA		 2021
£000
9,466
2,019
52
76
151
11,764
by Source		 2020
£000
12,020
4,132
234
8
215
16,609
of Funds		 2021
2020
£000
£000
10,459
11,696
1,305
3,316
-
1,597
-
-
-
-
11,764
16,609
by Location of Activity

24

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

6
Income from donations, grants and legacies
Arts Council England core grant
Arts Council England Cultural Recovery Fund grants
Corporation of London core funding
Corporation of London other funding
LSO Endowment Trust grants
Grants for LSO Discovery
Sponsorships and donations
Total income from grants and donations
7
Income from charitable activities
LSO Concerts at the Barbican
Engagements
LSO Live
LSO St Luke's - Artistic
LSO Discovery
Sponsorships
Total income from charitable activities
8
Income from engagements
Overseas Residencies, Tours and Partnerships
UK Residencies, Concerts and Partnerships
Third-Party Recordings
Total income from engagements
9
Income from other trading activities
LSO St Luke's - Commercial
Total income from trading activities
10
Income from Investments
Bank interest received
Total investment income
11
Other income
Other Income
Total other income		 2021
£000
2,247
937
1,975
13
650
296
991
7,109
136
2,146
973
113
163
101
3,632
1,309
284
553
2,146
44
44
-
-
980
980		 2020
£000
2,220
-
1,975
32
844
562
484
6,117
1,055
5,710
643
195
251
264
8,118
5,056
389
265
5,710
653
653
8
8
1,713
1,713

Other income includes a claim for Orchestra Tax Relief (£716,000), funds received through the Coronavirus Job Retention and Kickstart Schemes (236,000) and income received from the LSO Endowment Trust for capital purchases (£20,000).

25

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

12 Analysis of group expenditure

Costs of raising funds:
Voluntary income
St Luke's - Commercial
Costs of charitable activities:
Barbican concerts
Engagements
LSO Live
LSO St Luke's - Artistic
LSO Discovery
Total group expenditure
Costs of raising funds:
Voluntary income
St Luke's - Commercial
Costs of charitable activities:
Barbican concerts
Engagements
LSO Live
LSO St Luke's - Artistic
LSO Discovery
Total group expenditure		 2021
£000
338
185
523
2,395
5,040
1,216
103
1,200
9,954
10,477
2020
£000
517
428
945
5,636
5,081
661
204
1,432
13,014
13,959
Staff and
Direct Costs		 2021
£000
289
224
513
370
303
160
96
321
1,250
1,763
2020
£000
387
405
791
574
470
193
174
503
1,914
2,705
Allocated
Support
Costs		 2021
£000
627
409
1,036
2,765
5,343
1,376
199
1,521
11,204
12,240
2020
£000
903
833
1,736
6,210
5,551
855
378
1,934
14,928
16,664
Total

Staff and direct costs are allocated on an actual basis to each area of activity. Support costs consist of staff costs, overheads and governance costs. Staff costs and overheads are allocated based on an assessment of the time spent by each department in supporting various activities.

26

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

13 Analysis of support costs

Staff costs
Other overheads
Staff costs
Other overheads
14
Governance costs
Included within support costs are the following governance costs:
Audit fees
Directors’ fees
Other governance costs
Total Governance costs
15
Net (expenditure)/income is stated after charging:
Fees payable to the Company’s auditors for the audit of:
- the Company’s annual accounts
- the Company’s subsidiaries' accounts
Total Audit Fees
Movement in stock
Depreciation
Realised foreign currency exchange loss / (gain)
Operating lease rentals - Land and buildings		 2021
£000
210
303
513
Raising
funds
2020
£000
297
495
792
Raising
funds		 2021
£000
512
738
1,250
Charitable
activities
2020
£000
717
1,197
1,915
2021
£000
29
29
8
66
2021
£000
12
17
29
131
207
67
124
Charitable
activities		 2021
£000
722
1,041
1,763
Total
2020
£000
969
1,461
2,430
2020
£000
25
26
7
58
2020
£000
11
14
25
(70)
177
81
123
Total

27

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

The number of employees during the period was as follows:

Concerts Management
Marketing
Development
Management, Finance and IT
Total Charity
LSO Discovery
LSO St Luke’s
LSO Live
Total Group		 2021
2020
16
18
5
9
9
10
14
15
44
52
10
13
10
15
5
5
69
85
Average Headcount No.		 2021
2020
16
18
5
9
9
10
13
14
43
51
10
12
10
15
5
5
68
83
Full Time Equivalent No.
All employees aggregate remuneration
Salaries
National Insurance
Pension Costs
Other staff costs
Key management aggregate remuneration
Salaries and pension
National Insurance		 2021
2020
£000
£000
2,549
2,956
257
290
200
219
32
28
3,038
3,493
346
354
39
40
385
394
Group		 2021
2020
£000
£000
1,849
2,080
193
220
165
186
32
28
2,239
2,513
346
354
39
40
385
394
Charity

28

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

The number of Group employees whose emoluments, excluding pension contributions but including benefits in kind, were in excess of £60,000 was:

2021 2020
No. No.
£190,001 - £200,000 0 1
£180,001 - £190,000 1 0
£100,001 - £110,000 1 1
£70,001 - £80,000 1 2
£60,001 - £70,000 3 3

The Directors who are playing members of the Orchestra received performance fees and expenses on the same scale as those paid to other playing members in respect of their performances with the Orchestra.

Fees in relation to the office of Director were paid to the following playing members:

2021 2020
£ £
David Alberman Chair 16,000 15,635
Clare Duckworth Vice - Chair - 4,356
David Jackson Vice - Chair 5,000 4,774
Harriet Rayfield Vice - Chair 8,000 1,333

A total of £6,389 (2020: £5,841) was also paid to 7 (2020:8) Directors in respect of reimbursing expenses incurred for Board and Committee meetings.

29

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

17
Tangible fixed assets
Group:
Cost
At 1 August 2020
Additions
At 31 July 2021
Depreciation
At 1 August 2020
Charge for the year
At 31 July 2021
Net book values
At 31 July 2021
At 1 August 2020
Charity:
Cost
At 1 August 2020
Additions
At 31 July 2021
Depreciation
At 1 August 2020
Charge for the year
At 31 July 2021
Net book values
At 31 July 2021
At 1 August 2020		 £000
624
-
624
283
29
312
312
341
571
-
571
230
29
259
312
341
Freehold
land and
buildings		 £000
304
-
304
134
26
160
144
170
304
-
304
134
26
160
144
170
Motor
vehicles		 £000
1,495
16
1,511
469
21
490
1,021
1,026
1,431
16
1,447
430
14
444
1,003
1,001
Instruments		 £000
1,407
202
1,609
1,100
131
1,231
378
307
486
146
632
365
64
429
203
121
Fixtures,
fittings and
equipment		 £000
3,830
218
4,048
1,986
207
2,193
1,855
1,844
2,792
162
2,954
1,159
133
1,292
1,662
1,633
Total

Within the costs of Land and Buildings is a balance of £135,000 relating to Land (2019: £135,000): This element is not depreciated as the Directors are of the opinion that the net residual value is at least equal to the original cost.

30

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

17
Tangible fixed assets
Group:
Cost
At 1 August 2019
Additions
Disposals
At 31 July 2020
Depreciation
At 1 August 2019
Charge for the year
Disposals
At 31 July 2020
Net book values
At 31 July 2020
At 1 August 2019
Charity:
Cost
At 1 August 2019
Additions
Disposals
At 31 July 2020
Depreciation
At 1 August 2019
Charge for the year
Disposals
At 31 July 2020
Net book values
At 31 July 2020
At 1 August 2019		 £000
622
2
-
624
254
29
-
283
341
368
569
2
-
571
201
29
-
230
341
368
Freehold
land and
buildings		 £000
257
56
-
313
113
30
(9)
133
180
144
257
56
(9)
304
113
30
(9)
134
170
144
Motor
vehicles		 £000
1,495
-
-
1,495
449
20
-
469
1,026
1,046
1,431
-
-
1,431
415
15
-
430
1,001
1,016
Instruments		 £000
1,264
143
(208)
1,199
1,002
98
-
1,100
99
262
444
42
-
486
318
47
-
365
121
126
Fixtures,
fittings and
equipment		 £000
3,638
201
(208)
3,631
1,818
177
(9)
1,986
1,645
1,820
2,701
100
(9)
2,792
1,047
121
(9)
1,159
1,633
1,654
Total

Within the costs of Land and Buildings is a balance of £135,000 relating to Land (2017: £135,000): This element is not depreciated as the Directors are of the opinion that the net residual value is at least equal to the original cost.

31

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

Charity 18 Investments in subsidiaries £ Cost at 1 August 2020 and 31 July 2021 101

The investments represent 100 shares in LSO Productions Ltd (£100) and 1 share in LSO Live Ltd (£1) which were all held at the start of the year. Both subsidiaries are 100% owned by London Symphony Orchestra Ltd and are registered in England and Wales. Their activities are explained in Note 4.

19
Stocks of CDs and related development costs
Stocks of own-label recorded CDs and DVDs
Deferred development costs of own-label CDs and DVDs		 2021
2020
£000
£000
136
129
382
520
518
649
Group
20
Debtors: amounts falling due within one year
Trade debtors
Other debtors
Prepayments
Amounts owed by Group companies
Accrued Income
Other taxes and social security
21
Creditors: amounts falling due within one year
Trade creditors
Other taxes and social security
Owed to players
Other creditors
Accruals
Deferred income		 2021
2020
£000
£000
1,891
456
56
40
233
516
-
-
1,389
217
716
886
4,285
2,115
408
297
28
266
689
586
428
333
911
558
1,316
926
3,780
2,966
Group		 2021
2020
£000
£000
1,430
145
55
40
227
456
2,072
1,403
299
178
-
-
4,083
2,222
371
348
43
220
344
347
39
6
824
477
1,030
694
2,651
2,092
Charity

32

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

22
Deferred Income
Brought forward
Released in the year
Deferred in the year
Carried Forward
23
Statement of funds
Group:
Unrestricted funds:
Share Capital
General fund
Designated fund
Total unrestricted funds
Restricted funds
Total group funds
Charity:
Unrestricted funds:
Share Capital
General fund
Designated fund
Total unrestricted funds
Restricted funds
Total charity funds		 1 August
2020
£000
1
4,055
1,547
5,603
493
6,096
1
4,376
1,547
5,924
200
6,124		 Income
£000
-
10,445
-
10,445
1,320
11,765
-
12,572
-
12,572
357
12,929		 2021
2020
926
752
(926)
(752)
1,316
926
1,316
926
Gains and
Expenditure
losses
£000
£000
-
-
(10,666)
(67)
-
-
(10,666)
(67)
(1,574)
-
(12,240)
(67)
-
-
(13,046)
(60)
-
-
(13,046)
(60)
(355)
-
(13,401)
(60)
Group		 2021
2020
694
318
(694)
(318)
1,030
694
1,030
694
Balance
31 July
Transfers
2021
£000
£000
-
1
20
3,787
-
1,547
20
5,335
(20)
219
-
5,554
-
1
16
3,858
-
1,547
16
5,406
(16)
186
-
5,592
Charity

33

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

23 Statement of funds (continued)

Group:
Unrestricted funds:
Share Capital
General fund
Designated fund
Total unrestricted funds
Restricted funds
Total group funds
Charity:
Unrestricted funds:
Share Capital
General fund
Designated fund
Total unrestricted funds
Restricted funds
Total charity funds		 1 August
2019
£000
1
4,178
1,660
5,839
394
6,233
1
4,309
1,660
5,970
200
6,170		 Income
£000
-
15,305
-
15,305
1,304
16,609
-
22,509
-
22,509
107
22,616		 Expenditure
£000
-
(15,347)
(113)
(15,460)
(1,205)
(16,665)
-
(22,374)
(113)
(22,487)
(107)
(22,594)		 Gains and
losses
£000
-
(81)
-
(81)
-
(81)
-
(68)
-
(68)
-
(68)		 Transfers
£000
-
-
-
-
-
-
-
-
-
-
-
-		 Balance
31 July
2020
£000
1
4,055
1,547
5,603
493
6,096
1
4,376
1,547
5,924
200
6,124

34

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

24 Restricted funds

Restricted funds are those funds raised for a specific purpose within the LSO’s charitable objectives. An explanation of each restricted fund and movements during the year are shown below and on the following page.

Antonio Brenzi Viola
Always Playing Appeal
Anglo-Japanese Fund
City of London - Culture Mile Grant
Government Grants
Total charity restricted funds
LSO Discovery
LSO St Luke's Lunchtime Concert Fund
Moving Music Fund
Anglo-Japanese Fund
Government Grants
Total group restricted funds
Antonio Brenzi Viola
City of London - Culture Mile Grant
Total charity restricted funds
LSO Discovery
Moving Music Fund
Total group restricted funds		 Balance
1 August
2020
£000
200
-
-
-
-
200
293
-
-
-
-
493
Balance
1 August
2019
£000
200
-
200
194
-
394		 Income
£000
-
164
16
13
165
357
638
35
133
84
72
1,320
Income
£000
-
32
32
1,049
223
1,303		 Expenditure
£000
-
(180)
-
(10)
(165)
(355)
(899)
(35)
(133)
(80)
(72)
(1,574)
Expenditure
£000
-
(32)
(32)
(950)
(223)
(1,204)		 Transfers
£000
-
-
(16)
-
-
(16)
-
-
-
(4)
-
(20)
Transfers
£000
-
-
-
-		 Balance
31 July
2021
£000
200
(16)
-
3
-
186
32
-
-
-
-
219
Balance
31 July
2020
£000
200
-
200
293
-
493

35

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

24 Restricted funds (continued)

Antonio Brenzi Viola Fund

This fund represents an Antonio Brenzi Viola which is held in tangible fixed assets. The restriction accompanying this instrument is that it must be used by an LSO orchestra member for the duration of his or her life as a professional LSO musician.

Always Playing Appeal

This fund was established to enable the LSO to rebuild and operate in the coming years in a way that is financially viable.

Anglo-Japanese Fund

The purpose of this fund is to build Anglo-Japanese cultural relations by supporting the LSO's work in Japan.

Government Grants

These funds include the government contribution towards fuloughed employees and support for the Kickstart job creation scheme.

City of London - Culture Mile Grant

This fund represents a restricted grant from the City of London Corporation for cultural and community acitvities as part of the Culture Mile Programme.

LSO Discovery

This fund represents all restricted funds relating to LSO Discovery projects. The balance carried forward at the year end relates to funds received but not yet spent. It is expected that these funds will be applied towards LSO Discovery work in future years.

LSO St Luke's Lunchtime Concert Fund

This fund consists of a legacy to support lunchtime concerts at LSO St Luke's.

Moving Music Fund

This fund represents grant funding received to fund audio/visual recordings of key concert performances by the LSO and the distribution of these worldwide, including to young people and new audiences.

25
Analysis of net assets between funds
Group
Tangible fixed assets
Current assets
less: Current and long term liabilities
At 31 July 2021
Charity
Tangible fixed assets
Current assets
less: Current liabilities
At 31 July 2021		 Unrestricted
General
Funds
£000
1,635
5,933
(3,780)
3,788
1,446
5,035
(2,651)
3,830		 Unrestricted
Designated
Funds
£000
-
1,547
-
1,547
-
1,547
-
1,547		 Restricted
Funds
£000
220
(1)
-
219
216
-
-
216		 Total
2021
£000
1,855
7,478
(3,780)
5,554
1,662
6,581
(2,651)
5,592

36

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

25 Analysis of net assets between funds (continued)

Group
Tangible fixed assets
Current assets
less: Current and long term liabilities
As at 31 July 2020
Charity
Tangible fixed assets
Current assets
less: Current liabilities
As at 31 July 2020		 Unrestricted
General
Funds
£000
1,644
5,377
(2,966)
4,056
1,433
5,036
(2,092)
4,377		 Unrestricted
Designated
Funds
£000
-
1,547
-
1,547
-
1,547
-
1,547		 Restricted
Funds
£000
200
294
-
494
200
-
-
200		 Total
Funds
£000
1,844
7,218
(2,966)
6,096
1,633
6,583
(2,092)
6,124

26 Commitments under operating leases

At 31 July 2021 the present value of the Group's total future minimum lease commitments under non-cancellable operating leases was as follows:

Land and buildings
- within one year
- between two and five years		 2021
£000
124
82
206		 2020
£000
124
206
330

37

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

27 Share capital

The charity is a company limited by shares. The authorised share capital is 1,500 ordinary shares with a value of £1 each.

each.
Shares Shares
Allotted, called-up and fully paid No. Value £
1,000 shares of £1 each 1,000 1,000

LSO Endowment Trust

The registered charity The London Symphony Orchestra Endowment Trust (reg no 233700) has engaged with the London Symphony Orchestra Limited in respect of the following transactions during the year. The LSO Endowment Trust is controlled by a majority of independent trustees and, as such, there is no requirement to consolidate or detail any part of that organisation’s results. The matters to report are:

2021 2020
£000 £000
Donations made to the Group 650 844

In addition the following positions existed between the Group and the LSO Endowment Trust as at 31 July:

2021 2020
£000 £000
Amounts owed to the Group by the LSO Endowment Trust 146 -
Amounts owed by the Group to the LSO Endowment Trust 25 -

Members of the London Symphony Orchestra

The permanent members of the London Symphony Orchestra are engaged by the Group to perform at concerts, engagements and education projects. These members are also the shareholders in London Symphony Orchestra Limited.

Directors' & Officers' Insurance

During the year the Group took out Directors & Officers Liability insurance which was included in a commercial combined policy covering a wider range of insurable risks. Therefore no separate premium specifically for Directors' and Officers' Liability is available. (2020: no separate premium available).

Other transactions

During the year the London Symphony Orchestra made payments to two companies of which members of the LSO Board were also Directors. These payments were: £40,724 to Boosey & Hawkes Ltd, of which Janis Susskind is a Director; and £5,365 to Henry Wood Hall Ltd, of which both Kathryn McDowell and David Jackson are Directors. These payments were made in the normal course of business.

38

London Symphony Orchestra Ltd

Notes to the financial statements

Year ended 31 July 2021

The London Symphony Orchestra Limited is a registered charity and is thus exempt from tax on income and gains, falling within part 11 of the Corporation Taxes Act 2010 or s256 of the Taxation of Chargeable Gains Act 1992, to the extent that these applied to its charitable objectives. No tax charges have arisen in the charity.

The subsidiary companies donate an amount equivalent to any taxable profits to the charity each year under Gift Aid.

The London Symphony Orchestra's wholly owned subsidiary LSO Productions Limited expects to be making a claim of £716,329 for Orchestra Tax Relief based on its results for the year ended 31 July 2021.

39