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2024-12-31-accounts

The Corporation of the Hall of Arts and Sciences

Annual Report and Consolidated Accounts

31 December 2024 Charity Registration Number 254543

Elected Council members: President Ian McCulloch Honorary Treasurer & Vice President Stuart Newey MBA FCBI Vice President Leon Baroukh MA CFA Vice President Linda Craig Vice President James Max BSc Hons SFDR MRICS Peter B M Lim FCA MBA Harry Handelsman Dr Monica Bloch PhD Robert Lipson Thomas Borwick MBA Jeremy Marsden (appointed 23 May 2024) Stephen Brandon MA MBA CEng Iain McNay Lucinda Case (until 31 January 2024) Anthony Ratcliffe FRICS FRSA John Cooper FCA CTA Robert Shennan (appointed 1 February 2024) Lauren Ekon (until 23 May 2024) Mark T Schnebli FInstD FBIM Nigel Hamway The Hon. Alice Walpole OBE MA (Cantab) Appointed Council members: Richard Harrington, Baron Harrington of Watford (Appointed by the Secretary of State for Digital, Culture, Media and Sport)

Jim Eyre OBE BA(Hons) AA Dip Arch RIBA (until 31 December 2024) Professor Chris Wise (appointed 1 January 2025) ( Appointed by the Royal Commission for the Exhibition of 1851)

Sir Michael Dixon BSc (Sp Hons) ARCS MA (Oxon) DPhil DSc FCGI DL (Appointed by the Trustees of the Natural History Museum)

Kevin Porter

(Appointed by the Council of the Royal College of Music)

Professor Ian Walmsley ( Appointed by the Governors of the Imperial College of Science and Technology on 27 September 2024)

Secretary to the Corporation Susan Gent

Honorary Vice Presidents C P Fairweather FCA Mrs Anthony Travis BA (Hons) H Gould OBE JP BA DL FCA

Executive Chief Executive James Ainscough OBE Chief Operating Officer Dan Freeman (until 30 September 2024) Finance Director Dan Lill (appointed 01 November 2024) Director of Programming & Engagement Matt Todd Director of Audiences Louise Halliday Director of Buildings & Facilities Neal Hockley Director of People & Culture Nigel Wilson Director of Development Darranda Rowswell

None of the members of the Executive Team are Directors of the Corporation under the Companies Act 2006

Principal Office Royal Albert Hall Kensington Gore London SW7 2AP 0207 589 3203 www.royalalberthall.com Email: admin@royalalberthall.com

Solicitors

Bankers Auditors Coutts & Co Moore Kingston Smith 440 Strand 9 Appold Street London London WC2R 0QS EC2A 2AP

Charity registration number 254543

Bates Wells Braithwaite LLP 10 Queen Street Place London EC4R 1BE

Contents

Reports
Report of the Council: 4
Our Vision and Business Plan 5
Review of 2024 6
Energy and emissions report 11
Financial Review 13
Major Objectives for 2025 16
Structure, governance and management 22
(including the relationship between the charity, its
Trustees and Seatholders)
Independent auditor’s report 44
Accounts
Consolidated statement of financial activities 48
Balance sheet 49
Consolidated cash flow statement 50
Principal accounting policies 51
Notes to the accounts 59

Report of the Council Year to 31 December 2024

Report of the Council Year to 31 December 2024

The Council presents its statutory report together with the consolidated accounts of the Corporation of the Hall of Arts and Sciences, known as the Royal Albert Hall, (“the Corporation” or “the Hall”) for the year ended 31 December 2024.

The accounts have been prepared in accordance with the accounting policies set out on pages 50 to 57 of the attached accounts and the provisions of the Corporation’s Constitution, namely its Royal Charters and the Royal Albert Hall Act 1966, applicable laws and the requirements of the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Information on structure, governance and management, including details of the Hall’s constitution, Members (or Seatholders), Council responsibilities, organisational structure and risk management are provided under Structure, Governance and Management on pages 21 to 42.

Charitable Objectives

Since 1871, the Royal Albert Hall’s purpose has been to promote the Arts and Sciences as well as to maintain our Grade I listed building, held in trust for the nation.

The charity achieves these charitable objectives by:

The report of the Council sets out how these charitable objectives have been met in the year, the financial results and implications for the charity from this activity and what the charity expects to achieve in the following year.

Overview

Since we opened our doors in 1871, the Royal Albert Hall has been home to the world’s leading figures in music, entertainment, dance and debate. From Elgar to Ella, the Beatles to Adele, the Suffragettes to Churchill… icons grace our stage.

A charity known and loved across the globe, we are home to dreams and determination, contemplation and celebration – bringing people together to lift their spirits and inspire. In 2024 £1.7m people enjoyed unforgettable experiences in our spectacular building, with millions more joining us online and through broadcast worldwide.

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Report of the Council Year to 31 December 2024

We are home to the future-famous – working tirelessly to enable talent to thrive. We embrace change as well as tradition, inviting the new, the radical and the bold. We are open to all, a committed force for good, connecting people and communities.

We are the Royal Albert Hall – the home of breathtaking moments and lasting memories, for everyone.

Together, we create the amazing.

Originally the brainchild of Prince Albert as part of his master plan for the entire Albertopolis site, and incorporated by Royal Charter, the Hall is one of the world’s best-loved and busiest performance venues. The Hall is held in trust for the nation, and unlike many other venues, operates without any recurrent government funding. It generates revenue from three key sources:

In recent years, other than in years affected by the pandemic, the Hall has produced an annual surplus, all of which is reinvested in our charitable purposes.

In 2023, the Executive Team developed four Strategic Objectives for the charity which were retained in 2024:

We also have four ethical principles which lie at the heart of our decision-making:

Within these strategic objectives and principles, our focus on public benefit through operational excellence is clear.

The direction and control of the Corporation is determined by its Council who ensure that the charity continues to develop plans to meet its charitable objects. Members of Council, as the charity Trustees, confirm that they have complied with the requirements set out in the Charities Act 2011 having due regard to the Charity Commission’s published general guidance on public benefit. The Hall’s charitable objectives, and the manner in which these are pursued, are set out in summary form on page 4. A detailed explanation of how these objectives have been achieved in 2024 is set out in the following section.

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Report of the Council Year to 31 December 2024

REVIEW OF 2024

The Royal Albert Hall’s achievements for 2024 are set out below and correspond to our charitable objectives outlined above.

DIVERSIFYING AND DEVELOPING OUR PROGRAMME, AUDIENCE AND ENGAGEMENT ACTIVITIES

Performances and events

In 2024, we achieved our targets to have more younger and ethnically diverse headline acts than in 2023 – 28 headline artists under the age of 35, and 22 headline artists from minority ethnic backgrounds.

Highlights of the year included the Hall debut for three times GRAMMY and seven times BRIT Award-winning pop superstar, Dua Lipa , whose concert was broadcast on ITVX and also in the US. Rock legend Roger Daltrey curated his last season of concerts in aid of Teenage Cancer Trust, culminating in a celebration of 24 years of Teenage Cancer Trust shows. Pink Floyd alumnus David Gilmour joined us for six performances - his first live shows in London for eight years. And Bob Dylan brought his Rough and Rowdy Ways World tour to the Hall for three unforgettable nights in November.

Fully embracing our vision of being the home of breathtaking moments and lasting memories, for everyone, we continued to be the home of ceremony and celebration with key lynchpins of the programme intact – including the Festival of Remembrance , Cirque du Soleil with 30[th] anniversary performances of Alegria from January to March, and a triumphant final year for David Pickard as Director of the BBC Proms . Alongside classical stars including Vasily Petrenko and Sir Simon Rattle, highlights from the Proms season included packed auditoriums for Florence + the Machine's Symphony of Lungs, Sam Smith and the fun-filled CBeebies prom.

2024 brought a series of ‘firsts’ – The Sound of Philadelphia hosted by Lenny Henry, the genre-defying Orchestral Qawwali Project which brought Sufi music to the Hall and How Sweet the Sound , a competition celebrating Europe’s most gifted gospel artists. We hosted stars from around the world this year too. Icelandic-Chinese singer-songwriter Laufey brought her unique blend of jazz, classical and pop to a sold-out concert in May. Norwegian art-pop superstar AURORA also made her Hall debut and was joined on stage by our associate artist organist Anna Lapwood. Renowned Japanese composer, Joe Hisaishi conducted the Royal Philharmonic Orchestra in a night of his own symphonies alongside his iconic Studio Ghibli film scores. Also joined by a full orchestra, American rapper Nas put on a huge show in celebration of the 30th anniversary of his debut album, Illmatic .

Our Films in Concert series included Disney's The Lion King ’s 30[th] anniversary with Chineke! Orchestra and the London Community Gospel Choir. The World Premiere of Top Gun: Maverick in concert saw an appearance from Hollywood royalty Tom Cruise , who said “I’ve always wanted to experience a film like this with a live full symphony orchestra in front of a packed audience in the grandeur of a classic movie palace… thank you for making this dream come true”. James Cameron and screen icon Sigourney Weaver introduced Avatar Live in Concert.

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Report of the Council Year to 31 December 2024

Other standout events included Mountbatten Festival of Music in March, Royal Variety Performance in November; Schools’ events supporting talent development and opportunity throughout the year, graduation ceremonies and our Country and Americana festival, Highways .

Spoken word and poetry took centre stage with The Poets' Revival presented by our associate artist LionHeart, CogX Leadership Summit, Letters Live presented with the Women’s Prize Trust for International Women’s Day and a host of podcasts: The Rest is History, The Rest is Entertainment, The Girls Bathroom, and The News Agents Live .

English National Ballet’s epic Swan Lake in-the-round returned in June, and Birmingham Royal Ballet’s Nutcracker returned between Christmas and New Year.

The Hall has established itself as the Home of Christmas in London, and 2024 gave weight to that status, as the venue lit up with people of all ages, genders and creeds celebrating Christmas – from Trevor Nelson’s Soul Christmas to Rick Astley’s Swinging Christmas, with plenty of Carols to top off the season.

Beyond the Main Stage

The Beyond the Main Stage programme leads our work to promote new artists and audiences at the Hall, keeping an equal gender balance and ensuring we reflect the ethnic diversity of artists in line with the make-up of London.

This future-focussed engine for artistic expression at the Hall exists to invite and inspire new artists and audiences to the Hall through a diverse, inclusive, accessible and forward-looking programme of events.

Notable events in 2024 included:

These events make a central contribution to the diversity and development of our audience.

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Report of the Council Year to 31 December 2024

Engagement

The programme is currently divided into three main strands of activity:

Notable projects and initiatives for 2024 included:

“The class and all of the adults had such a lovely time - learnt so much, still laughing … The visual presentation to support communication was fantastic… kept the children so engaged, it was a fantastic opportunity.” – Teacher, Sensory Tour

“… so memorable, our visit with my son and his friends was welcoming, inclusive, and incredibly special. You have some exceptional people in your team, thank you so much for making it happen for my son and his friends yesterday. That meant everything to us all.” – Audience member, Ghostbusters Friendship Matinee

Digital and Physical Audiences

In 2024 we invested in video creation as a way to tell the Hall’s story. As part of our new 'Backstage with...' YouTube series, we had exclusive access to AURORA's soundcheck, her dressing room preparations and the moment she finally hit the stage. And our ‘In the Archive with…’ YouTube series has seen guests including Stephen Fry, Katie Melua, Lindsey Stirling and Hak Baker delving into the Hall’s unparalleled archive of performance to uncover stories that resonate with artists and audiences today.

Phase 2 of the website project has seen a focus on increasing visibility of our engagement and commercial activity. We have been working towards getting Access bookings online, improving our Select Your Own Seat and hospitality online bookings process. These developments are due to go live in 2025.

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Report of the Council Year to 31 December 2024

On social media, TikTok saw a 12.4% engagement rate, an increase of 580%, with a net follower growth of +23%. Instagram saw a 20% net follower growth and 2.4m story impressions.

Collaborative Instagram posts feel like a natural inclusion to our feed and highlight amazing moments at the Hall – in 2024 we produced collaborative posts with channels including British Legion, Sounds Queer and Ekin Su. We continue to engage with Anna Lapwood, whose TikTok following has now surpassed 1m.

Audience levels in 2024 returned to pre-pandemic levels, with 87% of available tickets issued – 1.69m in 2024 compared with 1.66m in 2019. Over three-quarters of a million tickets were issued for orchestral performances – from purely classical concerts including the BBC Proms, to the 30[th] anniversary of Illmatic by Nas with an orchestra.

During 2024 we recruited an Access Manager who started work in 2025 so that we can fully focus on ensuring that the Hall is accessible for everyone.

STRENGTHENING OUR FINANCES AND OPERATIONAL RESILIENCE

We continued to focus on artistic excellence, audience experience and the commercial viability of events. Events – both the number and the type – drive the Hall’s additional income streams, including Catering, Merchandise, and Technical Services.

We undertook a full security tender, resulting in our new security providers, SecuriGroup, taking over at the end of maintenance week, 22 April 2024.

There is a variety of major risks to our operational resilience including cyber-attacks. We have therefore continued to invest in training, support and practical interventions to reduce the likelihood and/or impact of such an attack.

We have a new investment strategy which is delivering over £2m a year in interest. The first repayment on the Government’s £20.7m Covid loan to the Hall is due in March 2025. The loan has given us the opportunity to put the Hall back onto a secure financial footing, to rebuild our reserves and to undertake essential work in order to safeguard the Hall’s future.

The Royal Albert Hall Bill continued its progress through Parliament, having received its Third reading in the House of Lords in January 2025. In April 2024, an Opposed Bill Committee was appointed to hear a petition against the Bill by a former President of the Hall and two bodies with which he was associated. Shortly before the hearing the former president acknowledged he had no locus standi and withdrew. Then the Committee decided that the other two petitioners had locus standi either, so the Bill proceeded to an Unopposed Bill Committee, where it was scrutinised and passed. However, the Opposed Bill Committee issued a Special Report recommending that subjects not in the Bill – namely differences concerning the Hall’s governance – should be drawn to the attention of the House and the Government.

The Bill’s provisions, particularly around putting in place a procedure for designating Ordinary and Exclusive lets at the Hall (i.e. the performances from which Members are or are not excluded) are vital for the charity. The Bill has now had its first reading in the House of Commons and a date is awaited for its second reading.

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Report of the Council Year to 31 December 2024

ENHANCING THE EXPERIENCE IN A MODERNISED VICTORIAN VENUE

Our ambitious Estate Plan will enable us to develop opportunities for people of every age and background to benefit from the power of music and culture, through opening our unsurpassable building to new opportunities for everyone. They will ensure that the next generation of artists and audiences are inspired, just as our forefathers were inspired, by a welcoming, accessible, sustainable hub for inspiration.

The Hall’s Estate Plan lays out the direction of travel for the building as a whole, with each individual project to then be refined and agreed in the future. This ambitious capital project will cost in the range of £300m, and will be funded through operating surplus, voluntary income and income generated from Seatholders. In order to raise approximately £50m from voluntary income, the first phase of a Capital Appeal will be launched in Autumn 2025.

In 2024, we started work on the auditorium plasterwork repair project, major security updates including CCTV and fire doors, replacement of a new arena lift, and other show-critical infrastructure including hoist control system and show relay.

We continued the WC refurbishment, and recruited a Carbon and Environment Manager, alongside an energy usage reduction plan and continued engagement with the joint Exhibition Road carbon zero project, South Ken ZEN+.

NURTURING A TALENTED AND ENGAGED TEAM

The fit-out of the South West Basement staff accommodation was set to commence in 2024 but has been delayed to 2025. Staff whose roles require them to have proximity to the stage and backstage areas will be able to move into this new state-of-the-art office facility, giving them custom-designed spaces to work and collaborate which are fit-for-purpose.

We are undertaking a review of our existing HR system with a view to implementing an integrated HR and payroll platform in 2026.

A 3% pay increase from January 2025 and a commitment to paying London Living Wage is a demonstration of the value we put on our staff. The increase in Employers’ NI contributions and London Living Wage from April 2025 will see a £600k increase in our cost base, but we are absolutely committed to fair pay for our team. The work on a transparent, benchmarked role and pay framework continued through 2024 and it is hoped that the framework will be delivered in April 2025. Given the financial results from 2024, we paid staff a bonus in March 2024 and will do so again in March 2025.

Our apprenticeship programme was relaunched with a strong emphasis on practical experiences and having a mix of production and non-production apprenticeships. We attracted and have been training individuals who may not have previously considered the Hall as a potential employer.

We will update our Employee Handbook, incorporating key policies and procedures, to ensure that all staff are aware of our culture and ways of working.

The Hall values diversity, promotes inclusion, and prioritises the well-being and professional growth of our employees. To that end, in 2024 we appointed our first ever Wellbeing Manager to ensure our ways of working, and the support we offer to staff, are planned to promote wellbeing, which is to the benefit of the charity and to our passionate and dedicated

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Report of the Council Year to 31 December 2024

team members. As we look ahead to 2025, our commitment to these principles remains steadfast, and we will continue to adapt and evolve our strategies to meet the dynamic needs of our workforce. Our investment in upskilling our staff and managers will continue in 2025, reinforcing our commitment to nurturing and developing staff at all levels.

Energy and emissions report

The data in this document shows the Royal Albert Hall’s energy usage from 1 January 2024 to 31 December 2024.

Our emission levels have increased this year, with a significant increase in gas consumption in January 2024 compared with January 2023 due to a colder month and an increase in shows. Our profiling on the gas usage vs degree days appear to map as expected. Work on a gas regression project to decrease the gas usage will be underway in 2025.

There were warmer days in August which resulted in an increased cooling demand.

Electricity consumption data for the reporting year has been collated from half hourly data available on the Drax portal.

Gas consumption data for the same period has been provided from invoicing data from Total Energies for the main plant meter.

Summary

Summary
2024 2023 2022 2016
Baseline
Energy
consumption
used to calculate
emissions in
kWh		 Electricity
5,241,684
kWh		 Electricity
5,154,767
kWh		 Electricity
5,498,290
kWh		 Electricity
5,443,803
kWh
Gas
4,506,907
kWh		 Gas
4,276,840
kWh		 Gas
4,719,574
kWh		 Gas
5,110,376
kWh
i) Emissions from
combustion of
gas tCO2e
(Scope 1)		 824 782 862 940
ii) Emissions
from purchased
electricity tCO2e
(Scope 2,
location based)		 1,085 1,067 1,063 2,243
iii) Emissions
from water
supply and
treatment tCO2e
(Scope 3)		 11 12 N/A N/A
Total gross CO2e
based on above
(tCO2e)		 1,920 1,861 1,925 3,183

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Report of the Council Year to 31 December 2024

iii) Intensity ratio:
tCO2e gross
figure based on
mandatory fields
(tCO2e/m2)		 0.063 0.062 0.064 0.106
Methodology
i) Emissions from combustion
of gas tCO2e (Scope 1)		 tCO2e calculated from the product of the gas
consumption in kWh during the reporting period and the
UK Government GHG Conversion Factors for Company
Reporting 2024 for ‘Fuels, Natural Gas, kWh (Gross
CV)'.
ii) Emissions from purchased
electricity tCO2e (Scope 2,
location based)		 tCO2e calculated from the product of the electricity
consumption in kWh during the reporting period and the
UK Government GHG Conversion Factors for Company
Reporting 2024 for ‘UK Electricity, Electricity
Generated, UK’
iii) Emissions from water
supply and treatment tCO2e
(Scope 3)		 tCO2e calculated from the product of the water
consumption and water treatment in cubic meters
during the reporting period and the UK Government
GHG Conversion Factors for Company Reporting 2024
for ‘Water Supply, Cubic Meters’ and ‘Water Treatment,
Cubic Meters’
iii) Intensity ratio: tCO2e gross
figure based on mandatory
fields		 The intensity ratio stated above has been calculated as
tonnes of carbon dioxide equivalent per total square
metres of property owned (30,077m2)

Energy efficiency

During 2024, the Hall has engaged in a number of energy efficiency measures and investigations in order reduce consumption and subsequent carbon emissions, including:

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Report of the Council Year to 31 December 2024

FINANCIAL REVIEW

The Royal Albert Hall had a very successful year in 2024 with a full calendar of events. In 2024 total income of £60.5m was generated from performances, commercial activity, bank interest and philanthropic support (2023: £54.4m). With total expenditure of £47.0m (2023: £42.7m), this resulted in a net surplus of £12.2m for the year (2023: £11.7m).

An operating surplus was generated in both 2023 and 2024 meaning we have continued to boost our reserves. Our general fund shows a surplus of £2.3m (2023: surplus £0.7m) with a further £17.1m designated in other non-asset-based funds (2023: £7.5m). Our priority now is to generate annual surpluses over the coming years which are sufficient to continue rebuilding reserves, investing in our Grade I listed building, and enable repayment of the loan. We are grateful to the DCMS and Arts Council England for their support in 2021 in providing a £20.7m loan, without which we would have had insufficient operating cash flow to re-open the Hall after the pandemic and progress the backlog of essential maintenance projects required to preserve and maintain our Grade I listed building.

Event income and expenditure

Event income in 2024 was £51.7m, an increase of £5.0m on the £46.7m achieved in 2023.

Rental and ticket commission was £41.2m, an increase of 27% from 2023 (2023: £32.3m).

Other event income, which includes items such as ticket booking fees and merchandise sales, was up by 11% to £7.3m for the year (2023: £6.6m), catering income up by 14% and income from corporate partnerships by 6%.

At £35.3m event expenditure was up £3.1m, an increase of 10% (2023: £32.2m). Direct show costs include show management, production, programming, ticketing and visitor services, accounted for £24.3m of total expenditure this year (2023: £21.7m), up 12% on the prior year. Support costs were £10.7m (2023: £10.6m).

Event profits continued to generate a surplus, with event income running £16.4m ahead of event expenditure, an increase of 13% on the prior year (2023: £14.5m).

Other income and expenditure

At £8.7m, other income was up 13% from the prior year (2023: £7.7m) mainly owing to an increase in interest from cash placed on deposit. Philanthropy remains at the heart of all that we do at the Royal Albert Hall. It represents a major source of income, generating £3.3m inclusive of gift aid (2023: £3.2m) and we have ongoing plans for a significant uplift in this area in the coming years. Our Members’ contribution through the seat rate, plus other miscellaneous items added £2.1m to income (2023: £2.5m).

At £11.8m, other expenditure increased by 12% (2023: £10.5m) due to an increase in building costs. In 2024 £4.8m (2023: £4.1m) was spent on building maintenance and refurbishment. A further £7.0m (2023: £6.4m) of other costs, including support costs, security, housekeeping, fundraising and other overheads, were incurred during the year.

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Report of the Council Year to 31 December 2024

Staff costs

Staff costs, at £16.5m, made up 34% of total expenditure, an increase of £2m or 13% over 2023. This reflects the Corporation’s ongoing commitment to the London Living Wage, cost of living challenges and additional headcount to reflect increased activity in the Hall.

Loan

In March 2021, DCMS and Arts Council England funded the Hall with a £20.7m loan on a 20-year repayment term. The loan accrues interest at 2% over the life of the term which is added to the loan on the balance sheet, with an initial four-year repayment holiday. This loan and associated accrued interest remains on the Hall’s balance sheet at its carrying value of £22.3m (2023: £21.9m). Repayments commence in March 2025.

Reserves

Total reserves held at 31 December 2024 were £74.6m (2023: £62.4m) of which £3.4m (2023: £2.7m) were restricted funds (note 21). The remaining £71.3m (2023: £59.7m) forms the Hall’s unrestricted funds (note 22). After setting aside £68.9m in designated funds (2023: £59.0m), general funds improved over the year from £0.7m at the end of 2023 to £2.3m at the end of 2024.

The Hall’s reserves are essential to fund ongoing operations, provide a contingency for unforeseen events, and to ensure that we adequately provide for long-term maintenance and improvement. In determining the appropriate level of funding for both designated funds and free reserves, the Council has adopted the reserves policy set out below:

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Report of the Council Year to 31 December 2024

Investment policy

The Hall’s policy is to hold cash and investments to protect the Hall’s assets from any losses that might otherwise arise. Cash investments are held to fund the Hall’s long-term commitment to maintaining and developing the building and to ensure that the risk of unforeseen circumstances does not prevent the Hall from taking a long-term view when planning activities, including the Engagement programme.

At the balance sheet date, £43.5m of cash and £21.5m of short-term cash deposits (shown as current assets) (2023: £38.1m of cash and £25m of deposits) were held in current assets. A further £11.5m (2023: nil) was held in non-current investments as these deposits will mature over 12 months after the year end. This balance includes the £20.7m loan described above and an approximate £14.5m (2023: £13.9m) of cash held in respect to ticket sales for future performances hosted by third parties which is held on their behalf and will be passed on to promoters in due course as part of the show settlement process. A further £3.4m of cash (2023: £2.7m) is held in restricted funds for spending on future projects as agreed with the donor. Investment income in the year of £3.3m (2023: £2.0m) was due to the decision to move additional cash into longer dated cash investments, taking advantage of strong interest rates. A revised investment policy was approved by the trustees in December 2024.

Pension fund

The Corporation has previously taken steps to limit future pension funding risk. The final salary section of the Scheme was closed to new entrants in 1997, and rates of contribution by the Corporation and its employees had been increased. To further alleviate funding difficulties, the benefits accruing to members of this section of the Scheme in respect of future service were reduced at the beginning of 2003, following consultation with active members of the Scheme, the Trustees and actuaries. Then, during 2014 the Corporation consulted with the 10 remaining active members of the Scheme, as a result of which they voluntarily transferred out of the Scheme into the Hall’s Stakeholder scheme. Therefore as at

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Report of the Council Year to 31 December 2024

31 December 2014 the Scheme became a frozen scheme, meaning that from 2015 onwards no further benefits accrued to any of the members. For more information, please see note 24 of the accounts. As noted above, during 2024, the corporation transferred a special contribution to the pension scheme of £1.3m to fund the shortfall in the pension fund and facilitate the initial bulk annuity purchase by a third-party insurer.

MAJOR OBJECTIVES FOR 2025

We have a new three-year rolling business plan that starts in 2025 – our major objectives are set out below.

A Home for Everyone – Equity, Diversity and Inclusion A Home for Thriving Creativity – Principally our reimagined Engagement programme A Home for A Sustainable Future – Greening the Royal Albert Hall towards achieving net-zero and enhancing local biodiversity

PROGRAMMING

In 2025, we will continue to broaden inclusion within the Hall’s programme, across Hires, Own and Co-promotes (Royal Albert Hall Presents / RAHP) and Beyond the Main Stage (BTMS). We will increase talent development through BTMS, and develop new content – concert productions, festivals, sports, and science-specific strands of programming.

We will work with new Associate and Resident Artists, introduce a new annual charity partner programme, streamline our contracts and agreements process and continue to push for increased revenue.

Highlights of the 2025 programme include the Grand Sumo Tournament – the second elite five-day Basho tournament outside of Japan in the sport's 1500-year history. The first Basho

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Report of the Council Year to 31 December 2024

tournament outside Japan was in 1991, also at the Royal Albert Hall, so it is a huge privilege to be hosting the tournament once more.

The Hall’s ambitions for more traditional programming are equally stretching. Cirque du Soleil bring their production of Corteo in a unique traverse staging that cuts the auditorium in half, reducing the capacity by 15% and leading to an entirely new experience for audiences as they look through the performers to see almost a mirror image of the audience.

The first six months of 2025 features programming around International Women’s Day including Annie Lennox , Women of the World at 15 , Women’s boxing and Barbie the Movie in concert with an all-female orchestra. Films in Concert include Indian historical epic RRR and Crouching Tiger, Hidden Dragon ; the Olivier Awards ; Eric Clapton , The Rest is History live (this time focusing on Tchaikovsky and Wagner) and a headline concert from one of our Associate Artists and TikTok million-follower organist Anna Lapwood . We also have concerts from stars including Gary Barlow, Father John Misty, Holly Johnson, Sophie Ellis-Bextor and Gregory Porter.

Ludovico Einaudi returns for the longest continuous headline run by a pianist in the history of the Royal Albert Hall, with five shows in Summer 2025.

The BBC Proms returns for a summer of the world’s greatest classical music, alongside stalwarts the Royal British Legion’s Festival of Remembrance and the Mountbatten Festival of Music.

Sigur Rós , performing with London Contemporary Orchestra, have a run of four concerts in October. British music icon Sir Cliff Richard returns for two very special nights in concert at the age of 85.

The Christmas season brings the sparkle year after year and 2025 promises to be another stellar year, with Carols having sold 25,000 tickets by January 2025, and Nutcracker returning between Christmas and new year once more.

A new role of Head of Engagement is introduced in 2025, with a remit to revolutionise the reach and remit of the Hall’s Engagement programme. The role will establish an impact framework for Creative Wellbeing and the roll-out of our newly-focused ambition, identifying and developing new engagement projects in support of Creative Wellbeing.

For Programming and Technical, Production & Technical, 2025 will be focussed on embedding a restructure of the Technical Operations team. Systems upgrades will include the core-stage lift; organ lighting; mushroom lighting replacement; and dinners terrace . Projects to be focused on in-year are the stage risers; technical infrastructure; and PA Audio works . We will be looking to make significant improvement in backstage facilities / environment for artists.

The Tours Manager role will expand to incorporate a Visitor Experience brief in 2025, thinking about retail and customer experience more widely in additional to tours. We will identify revisions and improvements to the tours experience, increase marketing and tours awareness – public and B2B – and return visitor figures to pre-pandemic levels

AUDIENCES

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Report of the Council Year to 31 December 2024

2025 will see the next stage of our investment in Security , with the move towards the building control room and the associated cultural change, training and empowering of internal teams, and embedding of our new security provider, Securigroup. We will introduce and establish a new Incident, Health & Safety and Building Services Management System, a visitors and contractor management system, and convert Stage Door into a staff and visitor reception (with Artist Stage Door moving permanently to Door 11). We will also review and implement a public-facing Security posture online and through external communication, in order to reassure customers and deter bad actors, whilst retaining appropriate levels of confidentiality. We are also working towards upgrading our Hostile Vehicle Mitigation (HVM) outside Door 11.

Duty Managers will transition to a more holistic Venue Manager Role, and we will undertake a strategic review of the entire Visitor Services structure . We will also introduce comprehensive testing and exercising for Emergency Procedures and Incident Management , and focus on providing a better experience for customers with access needs.

IT remains at the heart of everything we do, and the risk of cyberattack remains a concern, with bot attempts on our website reaching ever-higher levels. In 2025 we will upgrade Tessitura (our Customer Relationship Management - CRM) and replace our iSCSI switches (which connect our servers to storage) as they reach the end of their useful life. The basement development will facilitate the long-overdue movement of our server room and the upgrading of the on-premises server and movement to the Cloud where we can demonstrate business benefit. As data becomes ever-more-central in our decision-making, we will continue to invest in software to facilitate data-driven decisions .

Over the course of the three years, we will also expand our wired and wireless network to support customer facing services in the auditorium, boxes, corridors and outside the Hall; and to allow the expansion of our CCTV and access control systems.

The focus for the Marketing and Communications team is on reputation, revenue and reach. Work will be undertaken on building a stronger and consistent brand and shaping the reputation of the Hall as a force for good amongst different stakeholders, inspiring people across the UK and the world with what the Hall does online, even if they can never attend in person. In 2025 we will roll out a visual and brand voice refresh and bring the vision to life across the building.

The themes of Engagement activity, sustainability, accessibility and diversity will be the focus on all the Hall’s communications through video, in-house editorial and press.

Our ambitions for Ticketing Services for 2025 include the launch of access bookings online , Members’ website improvements, improvements on View From Your Seat , and a further review of phone bookings . We will continue to review our CRM , Tessitura, and consider whether alternative systems may be able to deliver better speed of sales without increasing our operating costs. We will also introduce dynamic barcodes for tickets, in an effort to reduce the number of tickets that are touted on secondary ticketing websites.

The new Archives store has given us a fantastic springboard from which to tell the Hall’s story, as seen already through the video series “In the Archive with…” In 2025, engagement activities such as tours and schools' workshops, as well as online content, will drive further engagement. We are working towards Archive Service Accreditation and a Digital Preservation system , with collection data and databases migrated by 2027.

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Report of the Council Year to 31 December 2024

Retail remains a small part of the Hall’s operations, but we are streamlining our products and introducing new ranges which have appeal and longevity, such as a Royal Albert Hall Top Trumps.

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Report of the Council Year to 31 December 2024

BUILDING AND FACILITIES

The focus is the completion and development of both Capital and Maintenance projects within the Estate Plan for the period 2025-27.

The purpose of the Estate Plan is to transform the impact of the building by enhancing our ability to:

The Hall has recently developed an environmental sustainability policy, and to support these commitments we have developed a sustainability action plan to drive continuous improvement in all our environmental impacts. Our action plan has also been developed to help achieve the relevant UN’s Sustainable Development Goals (SDGs). This action plan will be regularly reviewed and updated, and we will report progress at least annually.

In 2025, we will continue to work with our neighbours in the Exhibition Road Cultural Group to reduce our emissions, including on the South Ken ZEN+ (Zero Emissions Neighbourhood) plans. This year we will continue with the work to get our Building lighting converted to LED .

To ensure best value and service across our supplier group, the Life Safety system maintenance contract will be re-tendered as with our security offering increasing, we need to ensure that we have the best contractor for this critical system.

PEOPLE AND CULTURE

In 2025, we will continue to implement people-related initiatives aimed at enhancing the employee experience:

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Report of the Council Year to 31 December 2024

These initiatives will help strengthen the Hall’s ability to attract, develop, and retain talented individuals, supporting its long-term growth and success.

PARTNERSHIP AND HOSPITALITY

The focus in 2025 will be securing vital revenue and ensuring we provide all customers with the best possible experiences that meet their expectations and requirements.

We aim to establish the Hall’s first “Principal Partner” partnership.

DEVELOPMENT

The 3-year goals for the Philanthropy Team are that by the end of 2027 we have raised:

The major priorities for 2025 to help us achieve these goals are to recruit a Chair and the rest of the Capital Appeal board and launch the ‘Quiet Phase’ of the capital appeal; to secure initial gifts from potential donors to the Capital Appeal; and to review the costs and benefits of the Friends and Patrons scheme.

GOVERNANCE AND MEMBERS

The Hall’s Governance and Members team is at the centre of the Hall’s governance and its relationship with the Hall’s Members. Its mission is to assist the Hall in achieving its charitable and strategic objectives by running and maintaining appropriate legal, statutory, governance and administrative/company secretarial systems to support the organisation; being the central point of communication and administration with the Hall’s Members; and providing legal and governance advice and oversight as required by the organisation.

In 2025 we will continue to ensure the smooth running of the Hall’s governance with an emphasis on Council and Committees working at a strategic level, pursue the constitutional reforms agreed by Council, transition to the new President in May, work towards the Hall’s Private Bill being taken to Royal Assent by the end of the year, and continue to build up good working relationships with the Hall’s Members, particularly engaging the Corporate Members.

FINANCE

Goals for 2025 include:

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Longer term goals include increasing the level of automation in the department through system interfaces as well as encouraging training and professional studies to improve the level of expertise within the team, increase employee retention and ultimately, the level of service offered to the organisation.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The Corporation of the Hall of Arts and Sciences was incorporated under a Royal Charter dated 8 April 1867. Its governing documents now consist of two further supplemental Charters and four Acts of Parliament. The Corporation is also a registered charity (charity registration No. 254543). The Members of the Corporation are the Hall’s Seatholders. There are currently 315 Seatholders who have access to 1,256 seats in the Hall. The consolidated constitution of the Hall is set out in Schedule 2 of the Royal Albert Hall Act 1966.

Background

The Hall’s history and its legal position are unique. The Royal Albert Hall was the brainchild of Prince Albert, part of his master plan for the entire Albertopolis site. It is a Grade I listed building and receives no recurrent public funding for its running costs.

The Hall has always had charitable objectives and was registered as a charity in 1967. Funding for the building of the Hall in the 1860s was contributed to by a group of private individuals and corporations, and by the Royal Commission for the Exhibition of 1851 (on land which is leased by the Corporation from the Royal Commission for the Exhibition of 1851 at a peppercorn rent for 999 years). These original founders or Members not only had access to seats for the term of the Corporation’s lease, but also took on the obligation to govern the Hall for the nation’s benefit and these arrangements continue to this day.

The Hall’s Council, which is its governing body, is made up of a maximum of 24 members which include 18 Seatholders and the President (who is also a Seatholder), 6 of whom are elected by the Members annually at the Corporation’s AGM. The remaining members of Council are appointed members from the Natural History Museum, the Royal College of Music, Imperial College, the 1851 Commission and the Department for Digital, Culture, Media and Sport.

By acquiring the right to use permanent seats at the Hall, the Seatholders have private property rights (personal estate, not real estate) as set out in the Hall’s Royal Charter, which can be given or sold by one party to another and which are distinct from the charity. The charity exists subject to these private property rights. In other words, the Corporation was only ever entitled to its 999-year leasehold interest subject to the property rights of the Seatholders and pursues its charitable objectives only with the assets it has at its disposal.

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Understanding the correct legal basis underpinning the Hall is vital to understanding the true nature of the relationship between the charity and its Members or Seatholders. The implications of this legal basis include:

Seat Rate

Initially, the Seatholders had no obligation to make any financial contribution towards the annual costs of the Hall. However, from the Royal Albert Hall Act 1876 onwards and as the Hall has evolved over the decades, the Seatholders have financially supported the Hall’s charitable objectives by agreeing at each year’s Annual General Meeting to pay an Annual Contribution, or “seat rate”, per seat to the Hall.

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The current form of the seat rate, as set out in the 1966 Act, is a minimum annual £10-perseat compulsory payment, plus an additional amount which is binding on the Seatholders if approved by a two-thirds majority at the AGM. The Hall’s Council determines the total amount of the seat rate to be proposed at the AGM each year, based on a recommendation by the Seat Rate Committee. This Committee comprises the five appointed Council members plus the Treasurer as non-voting chairman (please see page 24 for the terms of reference and membership).

At the 2024 AGM, the Seatholders voted for a seat rate of £1,690 per seat plus VAT (£1,538 plus VAT in 2023) towards the Hall’s annual costs. In total the Seat Rate generated an annual contribution to the Hall of £2,142,920 in 2024.

Ordinary and Exclusive Lets

Over time, the Seatholders have also assisted the Hall by giving up their right to attend many performances by voting at the AGM to allow the Hall to go beyond s14 of the Act.

Seatholders now exclude themselves from performances on up to 110 days during the year, which amount to approximately 130 performances each year.

The Hall is able to hire a greater number of seats to a promoter for an Exclusive performance and can therefore attract more performers and charge a higher rental fee. The difference in the rental fee is then paid to the Seatholders by means of a reduction in their annual seat rate, known as the “rebate”. The rebate is defined in the 1966 Act as “any additional rent received in respect of the letting of the hall on any occasion on which the Seatholders are excluded from the hall”.

In 2024 the rebate paid to Seatholders was £735,360 plus VAT, totalling £882,432, this value relates to shows from the prior year, the effect of which was to reduce the annual contribution by £580 per seat (£580 in 2023).

The performances that the Seatholders have access to, known as “Ordinary” lets, accounted for 246 of the 386 lettings in 2024. In total, the Seatholders therefore had access to 311,928 tickets. These figures include Community Ordinaries.

Other ways in which the Seatholders support the charity

Donations

In 2024, 18 Seatholders (not including council members) made donations to the Hall totalling £1,609 comprising gift with ticket, online donations and Friends and Patrons memberships.

The Hall also enables the promoters of charity events to write to the Seatholders to ask if they would like to donate their tickets to these charities. There were 9 such letters of appeal to Members in 2024 covering 12 events, from which 3032 tickets were donated to the respective charities. Members also donated 746 tickets to the Hall out of which 438 seats were sold.

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Report of the Council Year to 31 December 2024

Community Ordinaries

A Community Ordinary is a type of Ordinary Let only available to promoters of community events. In the case of Community Ordinaries, Seatholders are asked in advance whether they would like to give up their seats for that performance, thus allowing increased access for more participants to take part in the event. The vast majority of Seatholders give up their seats in support of the Hall and these community events. In 2024, there were 19 such performances.

The Hall’s Ticket Return Scheme (TRS)

The TRS was launched in 1983. Its purpose is to provide a means through which Seatholders can sell the tickets they do not want to use and give the public the best possible opportunity to purchase from the Hall’s own box office all available Seatholders’ tickets for each “Ordinary let” performance and in particular to avoid as much as possible the sight of empty seats in an otherwise packed house, at sold-out concerts. All tickets returned to the TRS are sold to the public at the same price as the Hall sells equivalent promoter tickets.

Today the TRS is used by most of the Hall’s Seatholders, with around 68% of tickets issued to Seatholders returned to the Hall’s box office each year, greatly increasing public access to events staged in the main auditorium. The features of the Ticket Return Scheme are set by the Hall’s Council and the Scheme is entirely voluntary for Seatholders. The Hall operates the TRS for any Seatholders who choose to use it (administering the Scheme through the ticketing system that the Hall already operates for Promoters’ ticket sales). The Hall does not charge any fee to the Seatholders for this service and is only an intermediary between the Seatholders and the public who are purchasing their tickets. But the Hall does generate a direct income by charging the standard booking fee and levy to the public who purchase tickets. If the TRS did not exist, it is likely that there would be more empty seats in the auditorium and a higher portion of Seatholders’ tickets would be put up for sale on third party websites, in some instances at prices greater than the equivalent promoter face value and in many cases at prices lower than the equivalent promoter face value.

The Members’ Ticket Return Scheme is advantageous to the charity not only because it fills Members’ seats when they are not being used by the Members and enables the charity to generate a direct income via the standard booking fee levied on the ticket sales, but also because the TRS buyout compensates promoters for sales of tickets displaced by Members’ ticket sales. It also allows the Hall to communicate directly with the customers who buy these Members’ tickets through the Hall’s box office.

We estimate that the operation of the TRS, from the direct booking fee income and the indirect impact on rental revenue, was worth £1.4m to the charity in 2024 (£1.2m in 2023). A Seatholder who returned all of their tickets to the TRS would have received a gross financial return of £11,518 per seat in 2024 excluding rebate

Seatholders’ rights and obligations

Being a Seatholder of the Corporation carries with it certain functions. These include:

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Report of the Council Year to 31 December 2024

Seatholders and the Hall’s financial surplus

All of the Hall’s financial surplus is retained by the Hall (the Hall’s charter expressly prohibits any dividend being paid to Seatholders) and is re-invested by the charity into delivering its charitable objectives, including growing a vibrant, varied and diverse programme, as well as preserving and developing a world-renowned listed building, and providing arts and education initiatives within the local London community and beyond.

The Hall estimates that its annual income benefitted by some £4.5m in 2024 (£4.4m in 2023) due to the ongoing support of the Seatholders and as a result of the various initiatives explained previously in relation to seat rate, exclusive lettings, and the operation of the Ticket Return Scheme etc. This contribution enables the charity, which receives no recurring financial support from the Arts Council or government, to fulfil its public benefit obligations to a greater degree than would otherwise be the case.

The Hall has benefited over its first 150 or so years from its distinctive model whereby capital from Seatholders was used to contribute to the building of the Hall and their continued support has enabled the Hall to continue to flourish. The confluence of interest, whereby private individuals have an in-built incentive to support the charity, is unique, visionary and in the Hall’s case has proven over time to be highly successful.

Charity Governance Code and governance measures enacted in 2024

The Council of the Royal Albert Hall has considered the Charity Governance Code in detail and continues to review its compliance with it. The Council and Hall abide by and support the Code’s seven principles of organisational purpose: leadership, integrity, decision-making, risk and control, board effectiveness, diversity and openness and accountability. The Trustees have debated how to apply the Code’s recommendations and note that the intention is that the Code is aspirational, and a tool for continuous improvement towards the highest standards. The Hall’s four ethical principles of Equity, Diversity and Inclusion; Accessibility; Sustainability; and Health and Safety, Safeguarding and Wellbeing are central to the Hall’s three- year rolling Business Plan.

The Hall’s constitution, in several Royal Charters and Acts of Parliament, prescribes the majority of the processes which the Council and the Hall’s Executive Team must follow, including the election and membership of the Council of the Hall, giving a governance structure for the Hall which is already of the highest standard. The Council applies the Code’s recommendations where appropriate, and where they do not contradict or affect the Hall’s constitution itself.

There are some recommendations in the Code that cannot be applied, because the charity’s constitution specifies otherwise. These include the size of the Hall’s Council, and its

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composition – the Hall’s constitution requires up to 24 Council members, not the ‘maximum of 12’ recommended by the Code; and three-year terms for Council member appointments, at which time a Council member can be re-elected. The charity already goes further than some recommendations – for example, it has a Conflicts Committee and a published Conflicts Policy, as well as applying the recommendations for identifying, dealing with and recording conflicts of interest.

The Corporation’s AGM held in May 2024 was held both in person and virtually, following the byelaw introduced in 2020 to enable virtual General Meetings, electronic voting and the service of formal notices electronically.

The Good Governance Institute conducted an extensive Board Effectiveness Review for the Hall in 2022 and the Council continues to enact the recommendations in this report. In particular the Hall refreshed its strategic objectives and restated its vision and purpose in 2023, leading to the introduction of a three-year rolling Business Plan in 2024.

During 2024 the Hall has continued the process of amending its constitution by means of a private Bill which was lodged in Parliament at the end of November 2022 and has now passed to the House of Commons. The contents of the Bill are:

Seat Rate Proposal

  1. To drop the six-year cap on increases in the seat rate.

  2. Increase the voting threshold for the annual approval of the seat rate to a 75% majority.

Exclusives Proposal

  1. Provide for the Hall to seek the agreement of the Members to a variation of the provisions of section 14 of the Royal Albert Hall Act 1966 for any of the three calendar years following the year in which such a resolution may be passed.

  2. Provide for such a variation to require consent by a 75% majority.

The Bill now contains amendments agreed by the House of Lords at its third reading in that House.

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Report of the Council Year to 31 December 2024

Council members

Members of Council constitute the Trustees of the Corporation for the purposes of the Charities Act 2011. The following Council members served during 2024:

Council members

President of the Corporation:

Ian McCulloch

Other elected members:

Leon Baroukh MA CFA Dr Monica Bloch PhD Stephen Brandon MA MBA CEng Thomas Borwick MBA Lucinda Case (resigned 31 January 2024) John Cooper FCA CTA Linda Craig Lauren Ekon (resigned 23 May 2024) Nigel Hamway Harry Handelsman Peter B M Lim FCA MBA Robert Lipson Jeremy Marsden (appointed 23 May 2024) James Max BSc Hons SFDR MRICS Iain McNay Stuart Newey MBA FCBI Anthony Ratcliffe FRICS FRSA Robert Shennan (appointed 1 February 2024) Mark T Schnebli FInstD FBIM The Hon. Alice Walpole OBE MA (Cantab)

Appointed members:

Sir Michael Dixon BSc (Sp Hons) ARCS NA (Oxon) DPhil DSc FCGI DL (appointed by the Trustees of the Natural History Museum)

Jim Eyre OBE BA(Hons) AA Dip Arch RIBA (appointed by the Royal Commission for the Exhibition of 1851) (resigned 31 December 2024)

Lord Harrington (appointed by the Secretary of State for Digital, Culture, Media and Sport)

Kevin Porter (appointed by the Council of the Royal College of Music)

Professor Ian Walmsley (Appointed by the Governors of the Imperial College of Science, Technology and Medicine)

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Report of the Council Year to 31 December 2024

Professor Chris Wise (Appointed by the Royal Commission for the Exhibition of 1851) (appointed 1 January 2025)

Secretary to the Corporation: Susan Gent

Seatholders as Council members

The majority of Council members are also Members of the Corporation who own seats in the Hall. As such they pay the Members’ Annual Contribution (or seat rate), receive the rebate for Exclusive performances where they return their tickets to the Hall, receive tickets for Ordinary lets and generally enjoy Seatholders’ rights on exactly the same terms as the other Members of the Corporation.

For all Council members who served during the year and up to the date of this report: the total number of seats directly or jointly owned by the 15 individual Council members is 43, with a further 70 owned by their related parties. During the period there have been eight representatives of Corporate seatholders on the Hall’s Council and these Corporate seatholders own 50 seats. Two of the appointing bodies own 6 seats. In total the number of seats owned by Council members is therefore 43, with a further 108 owned by their related parties, out of the total number of seats owned by Members in 2024 of 1,268, (now 1,256). This does not include the 2 council members who resigned before (or at) the 2024 AGM.

During 2024 the Annual Contribution payable to the Hall by each Seatholder was £1,690 per seat plus VAT (2023: £1,538 plus VAT). The ‘rebate’ that Seatholders were entitled to during 2024, relating to prior year lettings where Seatholders were excluded, was £580 per seat plus VAT (2023: £580). Therefore, in total in 2024 Council members and their related parties paid a seat rate to the Hall of £255,190 and, offset against this, a total rebate from the Hall of £87,571.

The Hall’s Council members actively supported the operation of the Ticket Return Scheme (TRS - please see page 25 for a full explanation of how the TRS works). For the 151 seats owned by the Hall’s Council Members and their related parties (see above), 22,082 tickets were returned to the TRS (being 64% of the total tickets they received). The Hall put these tickets on sale on behalf of the Seatholders and, in total, this generated a payment to them of £869,584 (equivalent to approximately £5,759 per seat) for those Seatholders (paid to them during 2024, relating to the performance period November 2023 to October 2024), equivalent to £39.38 per ticket returned to the TRS.

No member of Council received any remuneration from the Corporation during the year (2023 - £nil). One member of Council received £943.48 of out-of-pocket expenses in 2024 (2023 - £52). There were no additional expenses reimbursed to Council in 2024 (2023: £2,041 reimbursed for meals with Council members or the Hall’s Members). Other than the transactions noted above, no member of Council had any beneficial interest in any contract with the Corporation or its subsidiary undertakings during the year.

During the year 8 Trustees provided donations to the charity and the Royal Albert Hall Trust to carry out its charitable objectives during 2024 totalling £66,494 (2023: £21,471).

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Report of the Council Year to 31 December 2024

As well as giving their time freely to serve on the Hall’s Council and its committees, Council members assist the Hall by hosting guests who are supportive of, or in other ways helpful in promoting the work of the Hall. In these circumstances those who entertain on the Hall’s behalf will have access to seats in the Kirby Laing Box (Grand Tier 29) for themselves, for Hall guests and for one personal guest.

Council members are also encouraged to attend a variety of performances at the Hall in order to experience the range of charitable activities undertaken by the Hall and the policy for the use of the Kirby Laing Box in the Grand Tier and the provision of tickets to Council members generally (known as the GT29 policy) was amended in October 2021 to facilitate this.

For this purpose, all Council members can request complimentary tickets in the Kirby Laing Box (or stalls if the Kirby Laing Box is full) for themselves and a guest on up to ten occasions throughout the year. If Council members wish to buy additional seats in the Kirby Laing box for such performances and there are tickets available, they are able to do so. When using the Box for an Ordinary performance, Council members who are seatholders, are invited to swap a number of their own tickets for the same number in the Kirby Laing Box or the stalls, returning their tickets to the Hall (for its own use and sale), but are not obliged to do so.

During the year Council members were given 69 (2023: 81) complimentary tickets under the Hall’s policy with a face value of £7,848.72 (2023: £10,364). Council members can access the staff discount on food and beverage available at the Hall. In 2024 this totalled £2,553 (2023: £3,762).

Throughout the year the Corporation secured indemnity insurance under a policy covering the members of Council and the Hall’s officers, Trustees and officers of the subsidiary company and related Royal Albert Hall Trust. The total premium charged to the Corporation was £18k (2023 - £19k) and the cover provided totalled £5million (2023 - £5 million).

Election and appointment of members of Council

In accordance with the Hall’s constitution, the Council, which is the Hall’s governing trustee body, comprises the President and up to 18 Members of the Corporation (i.e. they are all Seatholders) and five independent members, one being appointed by each of the Secretary of State for Digital, Culture, Media and Sport; the Trustees of the Natural History Museum; the Governors of the Imperial College of Science, Technology and Medicine; the Council of the Royal College of Music and the Royal Commission for the Exhibition of 1851.

Six out of the 18 members of Council who are also Seatholders are elected annually by rotation at the Hall’s Annual General Meeting. The Members of the Corporation, also at the AGM, appoint the President who is eligible to stand for re-election every year for a maximum term of six years, at which point the President retires from office. The Treasurer (who is one of the 18 members elected by Seatholders) is also elected annually at the AGM.

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The Hall’s Governance and Ethics Committee considers how the Council should fill any casual vacancies on Council[1] , having regard to the need to achieve a balance of skills, experience and specialist knowledge within the Council. The Members of this Committee then meet potential candidates before putting their recommendations to Council for approval. Historically the Council undertakes an annual Board Effectiveness Review which has been either carried out by the Hall’s auditors, or internally by the President meeting with each Committee Chair to review that Committee. As described above, in 2022, the Council carried out an in-depth external Board Effectiveness Review using the Good Governance Institute and is currently enacting the recommendations from this Review.

The Council appoints the Secretary to the Corporation, who is responsible for all charity, governance and administrative aspects of the Corporation’s and Council's affairs and for company secretarial duties. Susan Gent has been the Secretary to the Corporation since December 2018.

Council members’ Induction and Training

The Secretary to the Corporation provides all new members of Council, the Hall’s subsidiary trading companies and the RAH Trust with an induction programme which includes a full briefing on the purposes of the Charity and its provision of public benefit, the Corporation’s constitutional structure, their obligations as Trustees under charity law and the Corporation’s Scheme of Delegation and decision-making processes. This is supplemented by an induction session with the Hall’s Executive team.

Statement of Council’s responsibilities

The Council is responsible for preparing the annual report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Council to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Corporation and the group and of their incoming resources and application of resources for that period. In preparing these accounts, the Council is required to:

1 Royal Albert Hall Act 1966 Schedule 2(8): Power for Council to fill up casual vacancies

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The Council is responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions, disclose with reasonable accuracy at any time the financial position of the Corporation and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the Corporation’s constitution. It is also responsible for safeguarding the assets of the Corporation and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Organisation

The direction and control of the Corporation is determined by Council, which meets at least five times a year. The role of Council is to oversee the Corporation’s strategy in pursuit of its charitable objectives, to set policies and to ensure that the Charity is properly and effectively managed.

The following committees of Council have been established to deal with specific aspects of the work of the Corporation as defined in their terms of reference, which are set out in abridged form below. Meetings of the Council and of various Committees are attended by the Hall’s Chief Executive, the Secretary to the Corporation, and variously by other members of the Executive team.

Since 2016, Mrs Lin Craig has been the Trustee with safeguarding responsibility and through the Chief Executive, Nigel Wilson (Director of People and Culture) is responsible for the implementation of the procedures and policy as Child Protection Officer.

The Safeguarding Committee acts as a forum for the Safeguarding Officers and other key personnel to ensure the Hall’s Safeguarding Policy is up to date and operational activities are effective and in line with best practice. It reports annually to Council via the Chief Executive’s report to Council. The Safeguarding Committee and the Trustee with safeguarding responsibility receive training on the policy and their roles and responsibilities. Training for other key personnel is ongoing.

Stuart Newey is the Trustee with specific oversight for matters of security.

Conflicts Committee

The Committee considers and responds to any decision of Council which involves a Designated Collective Conflict (a conflict that involves all seatholding members of Council) as referred to it under paragraph 19 of the Conflicts Policy (published on the Hall’s website), to determine whether such decisions have been made in the best interests of the charity. The Committee also considers and responds to any decision referred to it by the President or Secretary to the Corporation.

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Report of the Council Year to 31 December 2024

At the request of the President, it also advises individual Trustees, the Council, all committees, the boards of subsidiary companies, and, where appropriate, staff, generally, on conflicts of interest. The Committee also monitors the implementation of the Conflicts Policy; recommends appropriate systems for promoting and monitoring compliance with this policy; reviews annual and other declarations of interest and briefs the Council or the President on any difficult individual cases referred to it. The minutes of the Committee are provided to the Auditors throughout the year and the Secretary to the Corporation prepares an annual report of the working of the Conflict Committee for the Committee and the auditors.

The Committee was chaired by a non-voting Seatholder, Lucinda Case until 31 January 2024. Subsequently the Committee has been chaired by Sir Michael Dixon during 2024. Voting members of the Committee during the year have been Sir Michael Dixon, Kevin Porter, Monica Bloch, Prof Ian Walmsley and The Hon. Alice Walpole, none of whom have personal seatholdings.

The Committee considers and makes recommendations to the Council on: the annual income and expenditure budget; longer term business plans and capital expenditure programmes; the Hall’s Investment Policy and the Auditors’ Annual Report. It is responsible for monitoring the financial performance of the Corporation against budget and business plans; ensuring proper financial and accounting controls; compliance with statutory requirements and risk management. It is also responsible for making recommendations to Council with respect to the appointed Auditors, the approval of external and internal audit plans and the consideration of any matters raised by the auditors. The Committee is also responsible for the oversight of the Hall’s security. The Finance, Audit and Risk Committee has a delegated authority of up to £500,000.

The Honorary Treasurer, Stuart Newey, chairs this Committee, which meets at least four times a year. Other members during the year were Leon Baroukh, Peter Lim, John Cooper, Nigel Hamway and Jeremy Marsden.

Seat Rate Committee

The Seat Rate Committee has two purposes:

  1. to review the purpose of the Seatholders’ seat rate, as set out in the 1966 Act, and the consequent principles upon which it should be calculated, and to advise Council accordingly; and

  2. annually, to recommend to Council the level of the seat rate that the Seatholders will be invited to approve at the next Annual General Meeting.

The Committee’s members during the year have been the Honorary Treasurer, Stuart Newey (non-voting Chairman) and the current independent Appointed Members of Council: Richard Harrington, Sir Michael Dixon, Jim Eyre and Kevin Porter. Prof Ian Walmsley and Prof Chris Wise join this Committee in 2025.

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Report of the Council Year to 31 December 2024

Fabric Committee

The Committee advises Council on all matters relating to the preservation, maintenance and further improvement of the Hall and its setting. It also oversees the Hall’s sustainability work and its Carbon Management Plan. During 2024, Anthony Ratcliffe chaired this Committee. The Committee meets four times a year. Other members during the year were Harry Handelsman, Jim Eyre, Stephen Brandon and the Hon Alice Walpole OBE. Nigel George, Martin Williams, Tanvir Hassan and Lady Moynihan serve as co-opted non-voting members on this Committee.

This Committee oversees all aspects of the Hall’s philanthropy and fundraising, including the outcomes of fundraising events and on the resources expended, giving a broad overview of the Hall’s fundraising. The Committee also reviews and reports on the Hall’s sponsorships and partnerships. The Committee is chaired by Nigel Hamway. Other members during the year were Robert Lipson, James Max, Richard Harrington, Stephen Brandon and Thomas Borwick.

Council appoints a Chief Executive who, together with the Executive Team, is responsible for all aspects of the day-to-day running of the Hall, including programming the annual calendar of performances. The Programming Committee advises Council and monitors on its behalf the Hall’s Programming strategy (including its Engagement Work and performances on and off the main stage), the extent to which they meet the Hall’s charitable objects and financial objectives and to ensure they comply with the Hall’s constitution and the Hall’s Programming Policy. Section 14 of the 1966 Act specifies the number of occasions on which Seatholders may be excluded from the Hall (Exclusives as explained above) – each year at the AGM, the Members of the Corporation agree to more or different Exclusives than the 1966 Act allows, enabling the Hall to operate with more latitude than the Act would otherwise allow, to the benefit of the charity. The Programming Committee oversees the allocation of Exclusive and Ordinary performances and the shows promoted by the Hall itself.

During 2024 James Max chaired this Committee. The Committee meets at least four times a year. Other members during the year were Leon Baroukh, Robert Lipson, James Max, Iain McNay, Monica Bloch and Bob Shennan.

The Committee advises Council on the conduct of the affairs of the Corporation, in compliance with:

34

Report of the Council Year to 31 December 2024

It also advises Council on due diligence on major donors and sponsors, the structure and membership of Council Committees, reviews nominations for membership of Council (for casual vacancies) and makes recommendations accordingly, and reputational issues generally. The Committee is chaired by the President and meets at least 4 times per year, and as necessary to consider appointments and due diligence. Members during the year were Leon Baroukh, Mrs Lin Craig, Sir Michael Dixon, James Max, Kevin Porter, Mark Schnebli, the Hon Alice Walpole and Jeremy Marsden.

Members’ Liaison Committee

The Committee advises the Council on all matters relating to the role of the Members in the conduct of the affairs of the Corporation. It also provides a means of communication between the Members and the Hall, promotes Member support for Hall activities and oversees communications to the Members. Mrs Lin Craig chairs this Committee which meets at least four times a year. Other members during the year were Monica Bloch, Stephen Brandon, John Cooper, Mark Schnebli and Thomas Borwick. Larry Viner, Ed Milner and Verity Waterbury (who are also seatholders) served as co-opted members.

Remuneration and HR Committee

The Committee is chaired by the President and deals with HR matters together with the salary and performance of direct reports to the President (the Chief Executive and the Secretary to the Corporation), the salary and performance of the Directors and succession planning. Ian McCulloch chaired the committee and the Members during the year were Mrs Lin Craig, Sir Michael Dixon, Michael Jackson, , Lauren Ekon and Bob Shennan.

Sustainability Working Group

During 2024, the Sustainability Working Group continued to oversee the production of the Hall’s Carbon Management Plan. This Working Group is chaired by Stephen Brandon. The Carbon Management Plan was presented to Council in February 2024.

35

Report of the Council Year to 31 December 2024

Hall Staff

The Executive Team

The day-to-day management of the Corporation is the responsibility of the Chief Executive, James Ainscough OBE.

The Chief Executive is supported by the Executive Team who throughout 2024 were:

Chief Operating Officer Dan Freeman (until September 2024) Finance Director Dan Lill Director of Programming Matthew Todd Director of Building & Operations Neal Hockley Director of Audiences Louise Halliday Director of People and Culture Nigel Wilson Director of Philanthropy Darranda Rowswell

The Chief Executive, supported by the Executive Team, is responsible for the development and implementation of strategy and business plans for the Corporation, for policy recommendations to Council, for the development and implementation of appropriate controls and procedures and for the day-to-day management of its operations. The Directors and the Secretary to the Corporation meet at least twice a month to monitor operational and financial progress against plans approved by Council and to discuss strategic objectives. A wider group comprising all Heads of Department meets on a weekly basis with the Executive to exchange information on operational issues.

Employees

The Corporation strives to be an equal opportunities employer. It aims to ensure that no job applicant or employee receives less favourable treatment on the grounds of age, race, colour, nationality, religion, ethnic or national origin, gender, marital status, sexual orientation or disability.

Selection criteria and procedures are reviewed regularly to ensure that individuals are selected, trained, promoted and treated on the basis of their relevant merits and abilities.

Remuneration Policy

The Hall’s approach to remuneration is designed to ensure it can attract and retain the talented and motivated people needed to achieve its vision and values. The policy is applied consistently across the organisation, with the aim of paying competitively in the not-for-profit sector within the context of affordability. Each year the Hall’s Executive team (with approval from the HR & Remuneration Committee and Council) set a rate of increase for Hall-wide salaries and hourly pay to take account of the impact of general inflation. Above-inflation pay increases are only awarded to individuals for changes in role/responsibility, exceptional performance or with regard to changes in industry norms for comparable roles. These are determined on a case-by-case basis, within the constraints of the annual budget. The remuneration of the Executive team is set annually by the HR & Remuneration Committee.

The Hall does not use volunteers.

36

Report of the Council Year to 31 December 2024

Connected charities and related parties

The accounts consolidate financial information of the Corporation of the Hall of Arts and Sciences and its wholly owned trading subsidiaries, Royal Albert Hall Developments Ltd (company number 01539294) and RAH Concerts Ltd (company number: 10664172 which was dissolved in 2024) and a related charity, the Royal Albert Hall Trust (charity number: 285111). This requires the line-by-line consolidation of the operating results of these subsidiary undertakings in the statement of financial activities.

Royal Albert Hall Developments Limited (RAHDL) is responsible for the Hall’s trading activities, namely catering, merchandising, tours, retail, licensing boxes for corporate use and selling hospitality packages. For further details of RAHDL please see note 15.

The Board of RAHDL meets at least 4 times per year. RAHDL is chaired by Leon Baroukh and other Directors during 2024 were James Ainscough, Peter Lim, Stuart Newey, John Cooper, Nigel Hamway, Mark Schnebli and Dan Freeman. The independent Director on the Board of RAHDL is Charles Gilkes. The Secretary to the Corporation is the Company Secretary of RAHDL.

The Royal Albert Hall Trust raises funds from donations and other fundraising events in order that it may make donations to the Corporation. The Trustees have reviewed procedures in place to ensure that all funds received, are properly utilised by the Corporation in line with donors’ restrictions or wishes, on projects which are efficiently managed and fully completed. The Trustees of the Royal Albert Hall Trust, (Registered Charity No: 285111), a connected charity, are the President and additional trustees appointed to the Trust following the amendment of the Trust Deed for the RAH Trust in 2019/2020. The Trust donated £1.2m to the Corporation in 2024 (2023 - £2.1m). Prior to 2023, the trustees of the Trust also included the Vice-President of the Corporation, but the Trust Deed was further amended in 2023 so that this requirement was removed. During the year, the Trust received the bequest of a seat in the Hall which is currently held by the Trust to produce income.

Fundraising

The Corporation does not engage any third parties in its fundraising efforts and all approaches and relationships are managed by our internal Philanthropy team with introductions or referrals being affected by our Philanthropy Advisory Board and other close contacts or through our database and legitimate online research.

The Philanthropy Board performs an introductory function, allowing the team to meet more potential supporters with an interest in the Royal Albert Hall. The efforts of the Philanthropy

37

Report of the Council Year to 31 December 2024

Board are monitored by the Development Committee which is the conduit between the Philanthropy Board and the Hall’s Council.

During the year the Corporation did not receive any complaints regarding Fundraising. The Hall is a member of the Fundraising Regulator and adheres to the Fundraising Code and all good standards of practice.

As set out in our Philanthropy Policy, the Hall’s fundraising team adheres to Section 1.2 of the Code of Fundraising Practice and is committed to protecting vulnerable donors. We comply with all legal requirements relating to data protection, under the Data Protection Act 2018 and the UK GDPR and do not share any data for the purposes of fundraising with third parties or data sharing schemes. We regularly carry out data protection impact assessments to ensure that we comply with the UK GDPR and we do not engage in intrusive practices.

Risk management

The Council has established a process for identifying and reviewing the major strategic and operational risks (including financial, reputational, health and safety, and security risks) to which the Corporation is exposed. The Council is satisfied that systems and controls have been established and are functioning to mitigate and manage those risks. The current Risk Management Policy Framework was approved by Council in 2018. The framework ensures that major risks are identified on a regular basis, and progress is monitored against mitigating actions.

The Executive review the strategic risks every quarter and the divisional risk registers are reviewed by the senior management team and the respective Heads of departments. The risk registers score risks according to probability of occurrence and the impact on the organisation (the “gross risk”). The registers also note the “net risks” and “residual risks” after taking into account existing controls and further mitigating actions respectively. The Executive’s risk appetite to strategic risks is generally low.

The Hall ensures a multi-year programme of regular internal audits is maintained. Internal Audit reports are presented to the Finance, Audit and Risk Committee.

38

Report of the Council Year to 31 December 2024

The principal risks and uncertainties to the Hall are detailed below.

Risk Management
Major Emergency or
Incident
Fire
Terror attack
Crowd surge
Major Security breach,
protest or demonstration
Accident at work		 Fire alarm system in place with relevant mechanical
controls, sprinkler system and detection.
All Visitor Service staff and Duty Managers trained in
evacuation at induction level and twice-yearly including
practice drills.
Ongoing fire and evacuation drills done through the
year with staff. Scenario training for Duty Managers,
DSMs and Event Managers.
Fire lane access kept clear for attendance by Fire
brigade
CCTV System, Access Control system
Intruder alarm
Security Search and screen for public.
ACT and Scan training for all staff
Limited capacities in standing areas.
Standing area accreditation system in place
Age restrictions for standing areas.
Correct barriers in place.
Trained and experienced staff in standing areas.
Limited capacities for building occupancy
External Security Patrols, searches on entry
Pre event assessments, information gathering
Accreditation system in place
Security response teams, Stage Security
Evacuation and invacuation procedures, documented
Regular staff training, permits to work, ‘Toolbox’ talks,
PAT and servicing of equipment
Regular Risk assessments carried out
Accident and near misses logged and investigated
Major Systems or
Equipment Failure
Cyber attack
Data Breach
Website or email failure
Server Room fire or flood
Utility supply failure		 Gold, Silver, Bronze command and control structure
Disaster recovery plan in place
Adherence to ICO protocols and procedures
Immutable daily backups stored on and offsite
Cyber insurance policy
Ability to take manual bookings
Compulsory cyber security awareness training for new
starters and all staff annually.
All redundant equipment containing sensitive data is
securely destroyed using specialist provider
Show stop, pause and delay procedure
Managed egress procedure
Standalone/manually deployed CO2 extinguisher

39

Report of the Council Year to 31 December 2024

Sustained lighting and
audio failure		 Staff in key locations during performance
Incident Management procedure
Back-up power supply and power switching system
Equipment procurement and replacement plan
Critical spares in place
Staff training in place for use of equipment
Structural damage or
collapse
Impact of major building
project
Lack of funds or income for
maintenance or repair
Staging, flooring or set
collapse
Fire, flood or extreme
weather impact or damage		 Structural Engineer appointed to review projects or
abnormal event weight loadings
Insurance inspections, temperature monitoring
Safe working loads signed off
Three-year business plan and long-term estate plans to
ensure the correct level of financial resources are
allocated towards maintaining the Grade I listed
building
Designs and build plan pre-approved by RAH Event
Managers
In house technical and events team supervising
external productions.
Equipment stored and locked in safe locations
Controls locked via key and access code system
Risk assessments for all events and new activity in
place
Good level of fire protection in place
Emergency and evacuation procedures in place
Monitoring and repair of weather-related damage
Significant Loss of
Revenue or Funding
Major projects overspend
Sustained low ticket sales
and audience attendance
Major financial fraud/theft
Sudden loss of major
partner or contractor, e.g.
caterer, promoter, building
contractor
Sudden long-term closure
of venue		 Robust internal controls and processes to mitigate
major overspends
Focused approach to resourcing for under performance
of ticket sales
Robust controls in place for payment and cost reporting
Monthly management accounts reviewed by leadership
team
Limited access to the Hall’s finance and banking
systems
Well established and effective relationship with current
partners, contractors and key service providers
relationships maintained with other providers in the
market
Key third party contracts identified and extended to
ensure business continuity, i.e. Catering, Security,
Promoters
Business interruption fund in free reserves, equivalent
to six months of operating expenditure
Business interruption insurance

40

Report of the Council Year to 31 December 2024

Significant Staff
Shortages
High turnover of staff due to
short supply and wage
inflation
Inability or delay in
recruiting key positions
Inability of contractors and
agencies to provide staff
Low availability given from
casual and part time staff to
covershifts		 Remuneration and employee benefits is benchmarked
regularly
Existing flexible working request procedure in place.
Recruitment is prioritised when needed by People and
Culture for specific teams with high vacancies.
Key partners have contingency plans and enhanced
initiatives to secure the quantity and calibre of
temporary staff required to work at the Hall.
Effective scheduling, as far in advance as possible
Regular reviews of teams’ resources
Relationshipwith multiple agencies
Major Safeguarding
Breach		 Robust code white procedure for reported incidents or
missing children and adults at risk.
Show stop, pause and delay procedure.
Violence at work procedure
Mental Health first aid programme.
Working PA system
In house events and programming teams to manage
artist liaison.
Director on duty function.
On call safeguarding leads
Local police contacts
Hall safeguarding committee and officers in place to
assess risks
Significant Reputational
Damage
Inappropriate behaviour or
statement from an
associated person, group
or organisation
Large scale negative press
coverage about
governance and the
conflation of secondary
ticketing
Major accident or incident
resulting in loss of life or life
changinginjuries		 Well-developed and good relationships with major
artists, their managers and promoters
Reputational and liability clauses in contracts
Policies and procedures in place to deal quickly and
effectively with any incidents of this nature
Successful Partner and Donor schemes
Charity Commission whistleblowing process
Documentation and statements have been prepared in
response to queries.
Monitor secondary websites
Robust Emergency Procedures in place and clear roles
and responsibilities for key staff members to help
mitigate the recover

41

Report of the Council Year to 31 December 2024

Going Concern

This report sets out a review of financial performance and the charity’s reserve position. We have adequate financial resources and are well placed to manage the business risks.

Our planning process, including financial projections, has taken into consideration the current economic climate of inflation, changing energy prices and the current cost of living challenges and its impact on the various sources of income and planned expenditure. We believe that there are no material uncertainties that call into doubt the charity’s ability to continue. The accounts have therefore been prepared on the basis that the charity is a going concern.

2024 has built on the strong performance in 2023, and again was not hindered by any enforced closures seen in previous years. Ticket sales were strong throughout the year, culminating in an excellent Christmas season. Expenditure continued to be tightly controlled and the year proved to be the Hall’s strongest financial performance in its history, for the second consecutive year. This has allowed its general and designated funds to be replenished in line with the Hall’s (See note 22) reserves policy after the negative impact of Covid-19.

On 24 February 2021, the Hall obtained a loan of £20.74m from the government’s Cultural Recovery Fund as security against future losses and, if necessary, to fund essential maintenance works (although our plan is to do so out of operating surpluses). The loan is repayable over 20 years and carries an interest rate of 2%. The Hall is in a strong position to start repayments as planned, starting March 2025.

In 2024, our organisation embarked on a new three-year business planning process, including financial projections for 2025-2027. It has taken into consideration current uncertainties. The directors have reviewed the current financial position of the Hall for the foreseeable future and have taken action as necessary to manage risks arising from different scenarios.

It is reasonable to expect the Corporation to generate adequate income to continue in operation for the foreseeable future, being the period of at least 12 months from the date of approval of these financial statements. Accordingly, the going concern basis of accounting continues to be adopted in preparing the financial statements.

Related Parties

Subject to the items set out in this report, none of the Trustees receives remuneration or other benefit from their work with the charity. The relationship between Seatholders, Council members and the Hall is described in full on pages 27 to 37.

Any connection between a Trustee or senior manager of the charity with a promoter, contracted performer or exhibitor must be disclosed to the full board of Trustees in the same way as any other contractual relationship with a related party and recorded in the Hall’s register of related party transactions.

42

Report of the Council Year to 31 December 2024

Approved by the Council on 1 April 2025 and signed on its behalf by

Ian McCulloch President

43

Independent auditor’s report Year to 31 December 2024

Independent Auditor’s Report to the Members of the Corporation of the Hall of Arts and Sciences

Opinion

We have audited the financial statements of The Corporation of the Hall of Arts and Sciences for the year ended 31 December 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 charity 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

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 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.

44

Independent auditor’s report Year to 31 December 2024

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 Trustees are responsible for the other information contained within the annual report. 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 course of 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 where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 32, 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 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 charity or to cease operations, or have no realistic alternative but to do so.

45

Independent auditor’s report Year to 31 December 2024

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

46

Independent auditor’s report Year to 31 December 2024

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

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.

Our approach was as follows:

Use of our report

This report is made solely to the charity's Trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. 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 any party other than the charity and charity's Trustees as a body, for our audit work, for this report, or for the opinion we have formed.

Moore Kingston Smith LLP 24 April 2025 Statutory auditor 9 Appold Street London EC2A 2AP

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

47

The Corporation of the Hall of Arts and Sciences

Consolidated statement of financial activities Year to 31 December 2024

Notes Unrestricted
funds
£’000		 Restricted
funds
£’000		 2024
Total
funds
£’000		 2023
Total
funds
£’000
Income:
Donations and legacies
1
Income from charitable activities:
Operation of Hall
2
Investment income and interest
Income from other activities:
Commercial trading operations
3
Total income
Expenditure:
Costs of raising funds
Expenditure on charitable activities:
Maintaining and developing the Hall
4
Promoting the arts and sciences
4
Interest repayable
Total expenditure
Net income
Transfer between funds
21/22
Actuarial loss on pension scheme
25
Net movement in funds
Reconciliation of funds:
Fund balances brought forward at 1 January
Fund balances carried forward at 31 December		 1,858
41,174
3,266
12,770		 1,457
-
-
-
3,315

41,174

3,266
12,770
3,248

32,480
1,976
16,659
59,068 1,457 60,525 54,363
642
10,714
34,612
415		 -
47
593
-		 642
10,761
35,205
415		 553
9,581
32,143
415
46,382 640 47,022 42,692
12,686
173
(1,320)
817
(173)
-		 13,503

-
(1,320)		 11,671
-
11,538
644
12,182		 11,671
59,722
2,706
62,428		 50,757
71,260 3,350
74,610		 62,428

All of the group’s activities derived from continuing operations during the two financial periods above.

For the parent charity alone, total income for the year was £54.9m (2023: £47.2m) and net income was £11.4m (2023: £12.1m).

The notes on pages 50 to 82 form an integral part of these financial statements.

48

The Corporation of the Hall of Arts and Sciences

Balance sheet 31 December 2024

t31 December 2024
Notes
Corporation
2024
£’000		 Group
2024
£’000		 Corporation
2023
£’000		 Group
2023
£’000
Fixed assets
Tangible assets
11
Intangible assets
12
Investments
15
Investment in subsidiary
16

Current assets
Stock
17
Debtors
18
Short-term deposits
Cash at bank and in hand


Current liabilities
Creditors: amounts falling due within
one year
19


Net current assets

Total assets less current liabilities

Creditors: amounts falling due after one
year
21
Total net assets
Represented by
Funds and reserves
Restricted funds
22
Unrestricted funds
23
51,415

312

11,500

25		 51,415

442
11,500

-		 51,069
453
-
25
51,069

453
-

-
63,252 63,357 51,547 51,522


-

4,840
21,500
42,086
216

8,486
21,500
43,521		 -
15,431
15,000
31,678		 154

6,935

25,000

38,132
68,426 73,723 62,109
70,221


39,706
41,724		 31,876
37,401
39,706
41,724		 31,876
37,401

28,720
91,972

20,745
31,999

95,355

20,745		 30,233
81,780
21,914
32,820

84,342

21,914
71,227
74,610		 59,866
62,428

97

71,130
3,350
71,260		 144
59,722		 2,706
59,722
71,227
74,610		 59,866 62,428

The notes on pages 51-83 form an integral part of these financial statements.

Approved by the Trustees and authorised for issue on 1 April 2025 and signed on their behalf by:

Ian McCulloch President

Stuart Newey Honorary Treasurer

49

The Corporation of the Hall of Arts and Sciences

Consolidated cash flow statement Year to 31 December 2024

cash flow statementYear to 31 December 2024 cash flow statementYear to 31 December 2024 cash flow statementYear to 31 December 2024 cash flow statementYear to 31 December 2024
Notes
2024
£’000		 2023
£’000
Cash flows from operating activities
A
13,524
19,668
Cash flows from investing activities
B
(8,135)
(29,061)
Cash flows from financing activities
C
-
-
Changes in cash and cash equivalents in the reporting period
5,389
(9,393)
Cash and cash equivalents at the beginning of the reporting period
38,132
47,525
Cash and cash equivalents at the end of the reporting period
43,521
38,132
Comprising

Cash at bank and in hand
43,521
38,132
Total cash and cash equivalents at the end of the reporting period
43,521
38,132
Notes to the cash flow statement for the year to 31 December 2024
A Reconciliation of cash flows from operating activities
2024
£’000
2023
£’000
Net income for the reporting period (as per the statement of financial
activities)
13,503
11,671
Adjustments for:
Pension loss
(1,320)
-
Depreciation charges
2,760
2,559
Amortisation
141
150
Disposal of tangible assets
26
34
Dividends, interest and rents from investments
(3,266)
(1,976)
(Increase)/decrease in stock
(62)
(44)
(Increase)/decrease in debtors
(1,282)
(957)
Decrease/(increase) in creditors
3,154
8,231
Donated asset
(130)
-
Net cashprovided by (used in) operating activities
13,524
19,668
B Cash flows from investing activities
2024
£’000
2023
£’000
Dividends, interest and rents from investments
2,997
1,558
Purchase of property, plant and equipment
(3,132)
(5,599)
Purchase of intangible assets
-
(20)
(Increase) in cash deposits
(8,000)
(25,000)
Net cash(used in) investing activities
(8,135)
(29,061)
C Cash flows from financing activities
2024
£’000
2023
£’000
Proceeds from new loans
-
-
Repayments on borrowings
-
-
Net cash provided by (used in) financing activities
-
-
D Net funds reconciliation
1 January
2024
£’000
Cashflow
£’000
Other non-
cash changes
£’000
31 December
2024
£’000
Cash at bank and in hand
38,132
5,389
-
43,521
Borrowings
(21,914)
-
(415)
(22,329)
16,218
5,389
(415)
21,192
13,524

(8,135)

-		 19,668
(29,061)

-
5,389
38,132
(9,393)

47,525
43,521
38,132

43,521		 38,132
43,521 38,132
Net income for the reporting period (as per the statement of financial
activities)
Adjustments for:
Pension loss
Depreciation charges
Amortisation
Disposal of tangible assets
Dividends, interest and rents from investments
(Increase)/decrease in stock
(Increase)/decrease in debtors
Decrease/(increase) in creditors
Donated asset
Net cashprovided by (used in) operating activities		 13,503
(1,320)
2,760
141
26
(3,266)
(62)
(1,282)
3,154
(130)
13,524
B Cash flows from investing activities 2024
£’000
Dividends, interest and rents from investments
Purchase of property, plant and equipment
Purchase of intangible assets
(Increase) in cash deposits
Net cash(used in) investing activities		 2,997
(3,132)
-
(8,000)
(8,135)
C Cash flows from financing activities 2024
£’000
Proceeds from new loans
Repayments on borrowings
Net cash provided by (used in) financing activities		 -
-
-
D Net funds reconciliation 1 January
2024
£’000


Cashflow
£’000
Cash at bank and in hand
Borrowings		 38,132
(21,914)
5,389
-
16,218
5,389

50

Principal accounting policies Year to 31 December 2024

Company information

The Corporation of the Hall of Arts and Sciences (“the Corporation”), its whollyowned subsidiary, Royal Albert Hall Developments Limited (RAHDL) and subsequent wholly owned subsidiary RAH Concerts Limited, and its related charity, Royal Albert Hall Trust (RAHT) all serve to promote the Arts and Sciences and the preservation and enhancement of the Grade I listed building which is held in trust for the nation. The Royal Albert Hall constitutes a public benefit entity as defined by FRS 102.

The Corporation is a registered charity (registered number: 254543) which is incorporated and domiciled in the UK. The address of the registered office is Royal Albert Hall, Kensington Gore, London, SW7 2AP, UK.

Basis of accounting

These financial statements have been prepared in accordance with the Charities SORP (FRS 102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Charities Act 2011 and UK Generally Accepted Practise. The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The group accounts consolidate on a line-by-line basis the accounts of The Corporation of the Hall of the Arts and Sciences (“the Corporation”), its whollyowned subsidiary Royal Albert Hall Developments Limited (RAHDL) and its connected charity Royal Albert Hall Trust (RAHT). In 2024 RAHDL’s wholly owned subsidiary RAH Concerts Limited (RAHCL) was wound up.

The individual entity accounts of Royal Albert Hall have taken advantage of the disclosure exemption under FRS 102 from preparing its own cash flow statement and to separately disclosure categories of financial instruments and items of income, expenses, gains or losses relating to instruments as these have been presented on a group basis in the notes to the accounts.

Going concern

The Hall derives its surpluses primarily from performances and commercial activity directly related to performances, as well as bank interest and philanthropic support, and relies on its own reserves for working capital requirements.

51

Principal accounting policies Year to 31 December 2024

Going concern (continued)

In 2024 the Hall was able to build on the success of 2023, with strong ticket sales throughout the year, culminating in an excellent Christmas season. Expenditure continued to be tightly controlled and 2024 proved to be the Hall’s strongest financial performance in its history.

Whilst the Hall was financially weakened during the pandemic, we have since returned to full time business and financial surplus and have been able to replenish our general and designated funds (see note 23). Our planning process, including financial projections, has taken into consideration the current economic climate of inflation, high energy prices and the current cost of living crisis and its impact on the various sources of income and planned expenditure. A designated fund relating to 6 months of operating expenditure has been established to ensure the Hall is in a strong financial position, should any significant future event impact the organisation.

On 24 February 2022, the Hall obtained a loan of £20.74m from the government’s Cultural Recovery Fund as security against future losses and, if necessary, to fund essential maintenance works (although our plan is to do so out of operating surpluses). The loan is repayable over 20 years and carries an interest rate of 2% with repayments starting March 2025.

The Trustees have reviewed the current financial position of the Hall for the foreseeable future and have taken action as necessary to manage risks arising from different scenarios. We believe that there are no material uncertainties that call into doubt the charity’s ability to continue. It is reasonable to expect the Charity to generate adequate income to continue in operation for the foreseeable future, being the period of at least twelve months from the date of approval of these financial statements. Accordingly, the going concern basis of accounting continues to be adopted in preparing the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, which are described below, Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 on-going 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 the current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies and are summarised below:

52

Principal accounting policies Year to 31 December 2024

Critical accounting judgements and key sources of estimation uncertainty (continued)

Pension liabilities – The charity recognises its liability to its defined benefit pension scheme which involves a number of estimations as disclosed in note 24.

Fixed assets – decisions are taken by the charity in determining whether expenditure meets the criteria for being capitalised and also in determining the useful life of assets as set out in the applicable accounting policy notes and notes 11 – 13 in the accounts.

Financial instruments

If the Corporation has any basic financial instruments, they are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash and bank and in hand, together with trade and other debtors. Financial liabilities held at amortised cost comprise bank loans and overdrafts, trade and other creditors. Investments in subsidiary undertakings are held at cost less impairment.

Cash and cash equivalents include cash in hand, deposits at call with banks, other short-term liquid investments with original maturities of 3 months of less. Shortterm liquid investments with original maturities of 3 months or more are included in short-term investments.

Short-term liquid investments with original maturities of 12 months or more following the end of the accounting period are included within fixed term investments. See investments accounting policy for further detail.

Stock is included at the lower of cost and net realisable value. Cost is determined on a first-in, first-out basis.

Accounting for income

Income is recognised in the period in which the charity is entitled to receipt of the funds if performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Accordingly, rental income, ticket sales and commission, income from trading activities and other show-related income is recognised as income on the day that each show takes place. Income from licensing of boxes and Members’ annual contributions is recognised over the period to which it relates.

Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period.

Legacies are recognised on the earlier of the receipt of funds or the receipt of final agreed estate accounts which shows that the income is probable, and the amount can be measured reliably. Donated assets are recognised at their market value.

53

Principal accounting policies Year to 31 December 2024

Accounting for income (continued)

Income which is derived in exchange for donated goods and services is recognised as income in the period in which the charity is entitled to receipt of the funds, a matching expense is recognised at the same point in time. The income is recognised at the cost to the Hall of providing those services.

Government grants are recognised on the performance model, when the charity has complied with any conditions attaching to the grant and the grant will be received.

Expenditure

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:

Allocation of support costs

Termination Payments

Termination payments are payable when employment is terminated before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The charity recognises termination payments when it is demonstrably committed to either (i) terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or (ii) providing termination payments as a result of an offer made to encourage voluntary redundancy or (iii) the employee’s contract is terminated and payment has been made in full.

Pension costs

The Corporation has two pension schemes, the Royal Albert Hall Stakeholder Pension Plan and the Royal Albert Hall Pension Scheme. It also uses The Peoples’ Pension to fulfil its auto-enrolment obligations.

54

Principal accounting policies Year to 31 December 2024

Pension costs (continued)

All staff are entitled to join the Royal Albert Hall Stakeholder Pension Plan, which with effect from 1 September 2006 is the only scheme open to new entrants.

The Royal Albert Hall Pension Scheme has both a defined contribution section and a defined benefit section. The defined benefit section was closed to new entrants in 1997 and ceasing of accrual on 31 December 2014; the defined contribution section was closed to new entrants on 31 August 2006.

Pension costs for the defined contribution section of the Royal Albert Hall Pension Scheme are charged to the statement of financial activities as they become payable. The cost is split by department depending on the role of the individual. In 2020, the Scheme’s trustees transferred responsibility for the defined contribution section funds from the Scheme into the Legal & General (L&G) Mastertrust, which is run by a board of professional trustees independent of L&G.

Tangible fixed assets

All assets costing more than £10,000 (other than heritage assets – see below) which have an expected useful life exceeding one year are capitalised.

Freehold land comprising car parking spaces and those assets included in the art collection are included in the accounts at their deemed cost having taken advantage of the transitional rules of the previous accounting standard, FRS15: Tangible Assets (see note 11 for details). All other assets are included at cost.

Tangible fixed assets are depreciated at the following annual rates in order to write them off over their estimated useful lives (see note 5):

55

Principal accounting policies Year to 31 December 2024

Tangible fixed assets (continued)

Expenditure on the general upkeep of the building and ‘like for like’ replacements (which allows for some technological developments and other advancements) is expensed. Expenditure on the building is capitalised if it fits within the criteria for capitalisation highlighted within FRS102 which refers generally to the recognition of an “asset” if and only if:

a) it is probable that future economic benefits associated with the item will flow to the entity; and

b) the cost of the item can be measured reliably.

Assets under construction are not depreciated until complete and operational.

No depreciation is charged on freehold land.

No depreciation is provided on the Hall’s Art Collection as its expected useful life is indefinite. Annual impairment reviews are undertaken and provision is made accordingly.

Intangible fixed assets

In accordance with FRS 102 website and digital costs have been recognised as intangible assets as they can be identified with a project anticipated to produce future benefits. On initial recognition, assets are measured at cost and include all costs directly attributable to bringing them into working condition.

Intangible fixed assets are amortised at the following annual rates in order to write them off over their estimated useful lives (see Depreciation and amortisation in note 5):

Heritage assets

The land and buildings comprising the Royal Albert Hall have been classified as heritage assets. The Hall is an asset of acknowledged historic importance and must be held indefinitely in direct furtherance of the Corporation’s charitable objects i.e. to maintain the Hall and, through its use, to promote the arts and sciences.

Following the creation of the Archive room in 2023, Council has reviewed the classification of the Archival collection in the financial statements and has determined that it should be regarded as a Heritage asset given its unique status documenting the history and development of the Hall.

56

Principal accounting policies Year to 31 December 2024

Heritage assets (continued)

The collection is held primarily for its contribution to knowledge and culture and is now accessible to the public and for academic research. Where valuations have been easily ascertainable, items in the collection have been recognised in the financial statements at their estimated value on adoption of FRS102 which has been treated as deemed cost. Other items in the Archival collection have not been accorded a value in these financial statements as their original cost or value on accession occurred many years ago and is therefore no longer available, and in many cases would not be material to the financial statements.

As reliable cost information is not available and conventional valuation approaches lack sufficient meaning given that certain aspects of the building and its historic significance are irreplaceable, no value is included on the balance sheet in respect of the Hall.

As explained fully within note 13 of the accounts, all subsequent expenditure incurred on the land and buildings of the Royal Albert Hall is reviewed to determine whether it meets the criteria set out in FRS 102 for capitalising subsequent expenditure on an asset. Where the criteria is not met the expenditure is accounted for through the statement of financial activities.

Investments

Investments relate to cash deposits held for investment purposes. These are held at their fair value.

Fund accounting

Restricted funds comprise monies raised for, or their use restricted to, a specific purpose or contributions, subject to donor-imposed conditions.

Designated funds comprise monies set aside out of unrestricted general funds for specific future purposes or projects – based on decisions made by Trustees

General funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the Corporation’s charitable objects.

Government loan

The £20.7m loan from Arts Council England and the Department of Culture, Media and Sport is considered to be a public benefit entity concessionary loan as the interest rate of the loan is below the prevailing market rate.

The loan is valued at amortised cost using the effective interest method. Interest is accrued annually at 2% and is repayable over 20 years, with a repayment holiday for the first four years. The interest is accrued and added to the initial £20.7m loan.

As at 31 December 2024, the loan remained fully drawn down. Repayments commence in March 2025.

57

Principal accounting policies Year to 31 December 2024

Taxation – subsidiary

Theatre tax relief credits payable to the trading subsidiary in relation to eligible expenditure on theatrical productions are recognised as a credit within the tax charge in the company and as a gain in the consolidated financial statements.

58

Notes to the accounts 31 December 2024

1 Donations and legacies

Donations
Legacies		 2024
Restricted
funds
£’000		 2024
Unrestricted
funds
£’000
2023
Restricted
funds
£’000
2023
Unrestricted
funds
£’000
1,457
-		 1,728
130		 1,691
1,532
-
25
1,457 1,858 1,691
1,557

2 Income from charitable activities

Rentals
Ticket commission
Members’ contribution
Restoration / Recovery levy
Other		 2024
Restricted
funds
£’000		 2024
Unrestricted
funds
£’000
2023
Restricted
funds
£’000
2023
Unrestricted
funds
£’000
-
-
-
-
-		 4,311
29,555
2,143
1,494
3,671		 -
3,764
-
23,870
-
2,476
-
1,494
-
876
- 41,174 -
32,480

3 Income from other activities

Rental
Ticket sales and commission
Concessions and licences granted
Other show-related income
Other income		 2024
Restricted
funds
£’000		 2024
Unrestricted
funds
£’000
2023
Restricted
funds
£’000
2023
Unrestricted
funds
£’000
-
-
-
-
-		 53
1,901
8,637
989
1,190		 -
718
-
3,909
-
7,836
-
2,766
-
1,430
- 12,770 -
16,659

Please see note 15 for information on the Corporation’s wholly owned trading subsidiary, Royal Albert Hall Developments Limited.

59

Notes to the accounts 31 December 2024

4 Analysis of expenditure on charitable activities

Maintaining
and
developing
the Hall
£’000		 Promoting
the arts and
sciences
£’000		 2024
Total
£’000		 2023
Total
£’000
Building maintenance
Building refurbishment and improvements
Security and housekeeping
Archives
Ticketing
Show management and production
Front of house services
Programming, marketing and PR
Engagement activities
Miscellaneous
Support costs (see note 5)		 2,587
2,194
2,654
131
-
-
-
-
-
-
3,195
-

-

1,977

-

3,126

13,231

4,824

2,028

393

2,140

7,486
2,587

2,194

4,631

131

3,126

13,231

4,824

2,028

393

2,140

10,681		 2,167
1,955
4,040
110
2,551
12,266
4,084
1,954
398
1,564
10,635
10,761
35,205
45,966		 41,724

5 Support costs

Maintaining
and
developing
the Hall
£’000		 Promoting
the arts and
sciences
£’000		 2024
Total
£’000		 2023
Total
£’000
Finance and information systems
Administration and human resources
Overheads and insurance
Utilities
Depreciation and amortisation
General Office
Governance costs (note 6)		 356
331
605
286
703
16
898
2,072

1,527

585

1,012

2,199

91

-
2,428

1,858

1,190

1,298

2,902

107

898		 2,291
1,659
1,019
2,063
2,709
111
783
3,195
7,486
10,681		 10,635

Support costs that can be directly attributed to an activity have been allocated accordingly. Where support costs relate to more than one activity the cost has been allocated on a head count basis, with the exception of depreciation costs which have been allocated on an analysis of usage.

60

Notes to the accounts 31 December 2024

6 Governance costs

Maintaining
and
developing
the Hall
£’000		 Promoting
the arts and
sciences
£’000		 2024
Total
£’000		 2023
Total
£’000
Salaries, wages and related costs
General office
Audit fees
Legal and other professional fees		 223
255
69
351
-

-

-

-
223

255

69

351		 257
237
69
220
898
-
898		 783

7 Auditor’s remuneration

2024
£’000		 2023
£’000
Group audit
Taxation services
Other services		 69
5
-		 69
10
2

8 Staff costs

2024
£’000		 2023
£’000
Salaries
Social security costs
Pension costs
Staff benefits		 14,367
1,227
705
194		 12,688
1,099
590
159
16,493 14,536

The Council Members were not paid and did not receive any other benefits from employment with the Corporation or its subsidiaries in the year (2023: £nil). One member of Council received out of pocket expenses in the year of £943 (2023: One member of £53). Additional expenses were incurred by Council in the sum of £2,553 for meals with Council members or the Hall’s Members (2023: £2,041). No Council Member received payment for professional or other services supplied to the Corporation (2023: £nil).

Ex gratia and termination payments in the year totalled £42k (2023: £12k). Of this amount, at the year-end £nil (2023: £nil) was still to be paid.

The key management personnel of the Corporation comprise the Council Members and members of the Executive. The total employee benefits of the key management personnel of the Corporation were £1,336k (2023: £1,154k).

61

Notes to the accounts 31 December 2024

8 Staff costs (continued)

The average number of employees during the year, analysed by function, was as follows:

follows:
2024
Number		 Full-time
equivalent
2024
Number		 2023
Number		 Full-time
equivalent
2023
Number
Generating funds
Maintaining the Hall
Promoting arts and sciences
Administration and support
Governance		 6
51
364
40
2		 6
44
246
40
2		 7
53
320
37
2		 7
44
238
37
2
463 338 419 328

The number of employees whose total emoluments were £60,000 or more (including taxable benefits but excluding employer's pension contributions) during the year was as follows:

2024
Number		 2023
Number
£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
£140,001 - £150,000
£170,001 - £180,000
£190,001 - £200,000
£200,001- £210,000		 8
6
3
2
3
1
2
-
-
-
1		 9
8
1
3
2
1
1
-
1
-
-
26 26

Emoluments include remuneration, benefits-in-kind and (where relevant) redundancy payments. There are no employees accruing benefits under the Corporation’s defined benefit scheme whose emoluments exceeded £60,000 (2023: none). Total employer’s pension contributions for the provision of money purchase benefits for employees whose emoluments exceeded £60,000 were £196K (2023: £170k).

Throughout the year the Corporation secured indemnity insurance under a policy covering the members of Council and the directors, Trustees and officers of the subsidiary company and related trust. The total premium charged to the Corporation was £18k (2023: £19k) and the cover provided totalled £5m (2023: £5m).

62

Notes to the accounts 31 December 2024

9 Related party transactions

During the year the Royal Albert Hall Trust, a related charity, made a donation to the Corporation of £1.2m (2023: £2.1m). As summarised in note 17, at the year-end there was an intercompany creditor between the Corporation and Royal Albert Hall Developments Limited of £1.6K (2023: £14.1m creditor), nil owing between the Corporation and RAH Concerts due to the closure of RAH Concerts Ltd during 2024 (2023: £0.1m debtor) and an intercompany debtor between the Corporation and Royal Albert Hall Trust of £3.3m (2023: £2.5m debtor).

In accordance with the Corporation’s Charter, elected Council members (which exclude appointed Council Members) are required to be seatholders. For a detailed explanation of the relationship and transactions between Council members and the Corporation, please see under ‘Council members’, within “Structure, governance and management” section, on pages 21 to 42.

At the year-end there was a total of £29k (2023: £25k) due to Council Members in respect of rebate income collected during 2024 which will be paid across in 2025. At the year-end there was a total of £nil (2023: £nil) due from Council Members in respect of annual contributions and supplementary seat rate charged during 2024.

The key matters are summarised in the table below:

2024 2023
Number Number
Number of seats owned by Council members 43 43
Number of seats owned by parties related to Council members 108 126
Number of tickets returned by Council members and related parties through 22,082 25,112
ticket return scheme
Number of complimentary tickets requested by Council members under the 69 81
GT29 policy
2024 2023
£ £
Total seat rate amount paid by Council members and related parties 255,190 330,057
Total rebate amount received by Council members and related parties 87,639 98,020
Amount distributed to Council members & related parties for returned Tickets 869,584 770,229
Face value of complimentary tickets requested by Council members under 7,849 10,364
the GT29 policy
Value of discount received on food and beverage available at the Hall 2,553 3,762
Donations from Council members 66,494 21,471

63

Notes to the accounts 31 December 2024

10 Taxation

The Corporation is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities

64

Notes to the accounts 31 December 2024

11 Tangible fixed assets

65

Notes to the accounts 31 December 2024

11 Tangible fixed assets (continued)

As permitted under FRS 102, the Corporation has continued a policy of not revaluing its tangible fixed assets. The book values of tangible fixed assets held are derived as follows:

The historical cost of assets included above at a valuation is not available. Many of the assets were acquired a significant number of years ago and the expense associated with researching their original cost outweighs any benefit derived from having such information.

At 31 December 2024 the Corporation had capital commitments of £4.5m (2023: £0.6m).

66

Notes to the accounts 31 December 2024

12 Intangible fixed assets

Charity

Property rights consist of seats which the Corporation purchased from Members and receives income in respect of. The property rights from the purchase of the RNIB second tier box entitle the seller to a right to five hundred complimentary tickets, for 10 years from August 2017, which are currently based at an estimated value of £nil.

Group

All intangible fixed assets were acquired, none were internally developed.

Included in the group intangible fixed assets are the rights to a seat in the Hall which was bequeathed to the subsidiary charity during the year.

67

Notes to the accounts 31 December 2024

13 Heritage assets

The land and buildings comprising the Royal Albert Hall are defined as heritage assets for the purposes of these accounts. Under the Corporation’s Royal Charter the Hall, which is an asset of acknowledged historic importance, must be held indefinitely so as to fulfil the Corporation’s primary charitable objectives of maintaining the Hall and, through its use, promoting the arts and sciences.

The nature of the land and buildings means that any meaningful and/or conventional valuation of the Royal Albert Hall is not possible. The historic importance of the Hall means that certain aspects of the building and its historic significance are irreplaceable. The land and buildings, therefore, appear at nil value on the Corporation’s balance sheet.

The assets comprise the land and buildings known as the Royal Albert Hall, situated at Kensington Gore, London SW7 and demised under a 999-yearlease dated 25 March 1872.

The Hall is valued for insurance purposes only at a gross reinstatement cost of £484m, (2023: £459m) based on a surveyor’s valuation as at October 2024 by Ecclesiastical.

While not shown in the accounts, the operating expenditure includes the ground rent of one shilling (5p) a year payable to the owners of the Hall’s freehold, The Royal Commission for the Exhibition of 1851.

The Hall capitalises expenditure on removable fittings, computers and equipment. Expenditure on the general upkeep of the building and ‘like for like’ replacements (which allows for some technological developments and other advancements) is expensed.

Fixed asset additions to heritage assets in 2024 totalled £2.0m (2023: £5.2m). This included installation of a lift system and various works to the roof and glazing.

In addition to the Hall itself, the Corporation owns an Archival Collection of over 100,000 items which provide a unique insight into the history and development of the Hall. During 2023 a new Archive room was created in order to make the collection more accessible to the public and for research. Certain items have been recognised at a valuation (total £353k) where this can be easily established. However, the majority of items (documents, paintings, memorabilia etc) are unique to the Hall and therefore cannot be valued according to conventional valuation techniques. The collection has been built up since the Hall’s inception and is continually added to in order to provide a permanent record of the Hall’s activities. In many cases the items have little or no intrinsic value and their original cost would not be material to the financial statements.

68

Notes to the accounts 31 December 2024

13 Heritage Assets (continued)

Expenditure on heritage assets
Capital expenditure
Facilities for performers and the public
Other building works and fees
Revenue expenditure
Facilities for performers and the public
The building’s structure
The auditorium
Other building works and fees		 2024
2023
2022
2021
2020
£'000
£'000
£'000
£'000
£'000
2,034
4,956
1,067
1,001
1,903
28
219
58
4,082
3,121
2,062
5,175
1,125
5,083
5,024
1,214
1,278
576
7
575
470
-
29
247
2,677
19
-
64
-
-
95
36
64
406
2,139
1,798
1,314
733
660
5,391
3,860
6,489
1,858
5,743
10,415

The above table shows that £2.1million of the total tangible fixed asset additions in the year relate to heritage assets. A further £1.8 million of non-capital spend was incurred in relation to heritage assets.

14 Leases

The Corporation had the following future minimum lease payments under noncancellable operating leases for each of the following periods:

Corporation
2024
£’000		 Group
2024
£’000		 Corporation
2023
£’000		 Group
2023
£’000
Not later than one year
Between one and five years
Later than five years		 12
32
-
12

32

-		 12
35
2
12

35

2
44
44		 49
49

The above leases relate to office equipment.

15 Investments

The corporation holds cash deposits maturing in greater than 12 months as follows:
Corporation
2024
£’000
Group
2024
£’000
Corporation
2023
£’000
Group
2023
£’000
Cash deposits
11,500
11,500
-
-
11,500
11,500
-
-		 The corporation holds cash deposits maturing in greater than 12 months as follows:
Corporation
2024
£’000
Group
2024
£’000
Corporation
2023
£’000
Group
2023
£’000
Cash deposits
11,500
11,500
-
-
11,500
11,500
-
-		 The corporation holds cash deposits maturing in greater than 12 months as follows:
Corporation
2024
£’000
Group
2024
£’000
Corporation
2023
£’000
Group
2023
£’000
Cash deposits
11,500
11,500
-
-
11,500
11,500
-
-		 The corporation holds cash deposits maturing in greater than 12 months as follows:
Corporation
2024
£’000
Group
2024
£’000
Corporation
2023
£’000
Group
2023
£’000
Cash deposits
11,500
11,500
-
-
11,500
11,500
-
-
Cash deposits 11,500
11,500		 -
11,500
11,500		 -

69

Notes to the accounts 31 December 2024

16 Investment in subsidiary undertakings

Royal Albert Hall Developments Limited

The Corporation’s subsidiary is Royal Albert Hall Developments Limited (RAHDL) which is incorporated in England (company number 1539294). During the year RAHDL wound up its subsidiary company RAH Concerts Limited which was incorporated in England (company number 10664172). The principal activities of Royal Albert Hall Developments Limited are the licensing of the Royal Albert Hall to third parties, the licensing of boxes to corporate clients, the receipt of income from catering and services provided to patrons of the Royal Albert Hall by concessionaires appointed by the company, tours, a shop, merchandise sales, a car parking concession, and events which are outside of the Hall’s charitable objectives. The Corporation’s investment in Royal Albert Hall Developments Limited comprises 25,000 ordinary shares of £1 each, being the entire issued share capital of that company.

A summary of the financial results of the company is shown below.

Statement of Comprehensive Income
Turnover
Cost of sales
Operating profit
Net interest receivable
Profit on ordinary activities before taxation
Tax on ordinary activities
Profit on ordinaryactivities after taxation
Retained earnings at the start of theperiod
Deed of Covenantpayable to the Corporation
Retained earnings at the end of theperiod
Summarised balance sheet
Current assets
Creditors: amounts fallingdue within oneyear
Net assets
Called up share capital
Profit and loss account		 2024
£’000		 2023
£’000
12,770
(5,746)		 16,432
(9,159)
7,024
731		 7,273
650
7,755
-		 7,923
-
7,755 7,923
- 361
(7,755) (8,284)
- -
2024
£’000		 2023
£’000
5,129
(5,104)		 19,324
(19,299)
25 25
25
-		 25
-
25 25

70

Notes to the accounts 31 December 2024

15 Investment in subsidiary undertakings (continued)

RAH Concerts Limited

The subsidiary company (RAHDL) wound up its subsidiary entity, RAH Concerts Limited, in October 2024, which was incorporated in England (company number 10664172). The principal activity of RAH Concerts Limited was the licensing of the Royal Albert Hall to third parties.

A summary of the financial results of the company in its final year of trading is shown below.

Statement of comprehensive income
Turnover
Cost of sales
Operating profit
Net interest receivable
Profit on ordinary activities before taxation
Tax on ordinary activities
Profit on ordinaryactivities after taxation
Retained earnings at the start of theperiod
Deed of Covenantpayable to the Corporation
Retained earnings at the end of the period
Summarised balance sheet
Current assets
Creditors: amounts fallingdue within oneyear
Net assets
Called up share capital
Profit and loss account		 2024
£’000
2023
£’000
-
226
-
(192)
-
34
-
-
-
34
-
-
34
-
-
(34)
-
-
2024
£’000
2023
£’000
-
12
-
(12)
-
-
-
-
-
-
-
-

17 Stock

Stock
Corporation
2024
£’000		 Group
2024
£’000		 Corporation
2023
£’000		 Group
2023
£’000
154
154
Stock - 216 -
- 216 -

71

Notes to the accounts 31 December 2024

18
19		 Debtors Corporation
2024
£’000		 Group
2024
£’000		 Corporation
2023
£’000		 Group
2023
£’000
Rentals and concession income receivable
Other debtors
Amounts due from subsidiary
Prepayments and accrued income		 2,371
112
-
2,357
5,100

1,016

-

2,370		 1,732
149
11,413
2,137
4,367

182

-

2,386
4,840
8,486		 15,431
6,935
Creditors: amounts falling due within one year
Corporation
2024
£’000
Group
2024
£’000
Other loans
1,584
1,584
Trade creditors
3,918
3,926
Other creditors
18,424
20,005
Social security and other payroll taxes
379
379
Accruals
5,683
6,913
VAT
858
1,162
Amounts due to subsidiary
3,250
-
Deferred Income (see note 20)
5,612
7,755
39,706
41,724		 Corporation
2023
£’000		 Group
2023
£’000
-

3,579

17,339

368

4,762

1,225
-

10,128

37,401
Other loans
Trade creditors
Other creditors
Social security and other payroll taxes
Accruals
VAT
Amounts due to subsidiary
Deferred Income (see note 20)		 1,584
3,918
18,424
379
5,683
858
3,250
5,612		 1,584

3,926

20,005

379

6,913

1,162
-

7,755		 -
2,822
16,473
368
3,847
560
-
7,806
39,706
41,724		 31,876

Included within other creditors are amounts of £15.9m (2023: £13.9m) held in respect to ticket sales for future performances hosted by third parties which is held on their behalf and will be passed on to promoters in due course as part of the show settlement process. Included in other creditors is £39k of unpaid pension contributions (2023: £34k).

20 Deferred Income


Balance as at 1 January
Amount released to incoming resources
Amount deferred in year
Balance as at 31 December		 Corporation
2024
£’000
7,806
(7,559)
5,365
5,612		 Group
2024
£’000
10,128
(8,670)
6,297
7,755

Deferred income for the Corporation comprises deposits on future lettings of £3.1m (2023: £3.3m) and advance ticket sales on RAH presents performances of £2.5m (2023: £4.5m) relating to performances after the balance sheet date. Deferred income for the Group comprises deposits on future lettings of £3.1m (2023: £3.3m), advance ticket sales on RAH presents performances of £2.9m (2023: £5.7m) and other advance income £1.2m (2023: £1.1m) relating to performances after the balance sheet date.

72

Notes to the accounts 31 December 2024

21 Creditors: amounts falling due over one year

Corporation
2024
£’000		 Group
2024
£’000		 Corporation
2023
£’000
21,914
21,914		 Group
2023
£’000
Other loans (see below) 20,745
20,745
21,914
20,745
20,745
21,914

Government Loan

Government Loan
2024
£’000		 2024
£’000
Amounts payable:
Under 1 year
1 – 5 years
Over 5 years		 1,584
6,335
14,409		 -
6,335
15,579
22,328 21,914

In March 2022, the Hall received a loan of £20.7m from Arts Council England and the Department of Culture, Media and Sport as part of the Culture Recovery Fund. The loan incurs an annual interest charge of 2%, which has been accrued and added to the total amount payable, and is repayable over 20 years, with a repayment holiday for the first four years. Repayments of the loan commence March 2025.

22 Restricted funds

Balance at
1 January
2024
£’000
Income
£’000
Expenditure
£’000
Transfers
£’000
Balance at
31 December
2024
£’000*		 Balance at
1 January
2024
£’000
Income
£’000
Expenditure
£’000
Transfers
£’000
Balance at
31 December
2024
£’000*		 Balance at
1 January
2024
£’000
Income
£’000
Expenditure
£’000
Transfers
£’000
Balance at
31 December
2024
£’000*
Engagement Fund:
Engagement
Total Engagement Fund
Production Fund:
Associated Artists
Total Production Fund
Building Fund:
Artists Bar
Creator Space
Door 6 restoration
Total Building Fund:
Royal Albert Hall Trust
Public Realm Grant
Corporation
Group		 106
477		 (546) -
37
106
477		 (546) -
37
356
-		 (47) -
309
356
-		 (47) -
309
1,000
830
500
-
600
150		 -
-
-		 327
2,157
(500)
-
-
750
2,100
980		 - (173)
2,907
2,562
1,457		 (593) (173)
3,253
144
-		 (47) -
97
144
-		 (47) -
97
2,706
1,457		 (640) (173)
3,350

73

Notes to the accounts 31 December 2024

22 Restricted Funds (Continued)

* Please note: donations are received by the Royal Albert Trust and then granted to the Corporation to fund the delivery of each initiative.

Balance at
1 January
2023
£’000
Income
£’000
Expenditure
£’000
Transfers
£’000
Balance at
31 December
2023
£’000*		 Balance at
1 January
2023
£’000
Income
£’000
Expenditure
£’000
Transfers
£’000
Balance at
31 December
2023
£’000*		 Balance at
1 January
2023
£’000
Income
£’000
Expenditure
£’000
Transfers
£’000
Balance at
31 December
2023
£’000*
Engagement Fund:
Engagement
Total Engagement Fund
Production Fund:
Associated Artists
Total Production Fund
Building Fund:
Artists Bar
Creator Space
Door 6 restoration
150th Statues
Archive Project
Total Building Fund:
Royal Albert Hall Trust
Public Realm Grant
Corporation
Group		 111
471		 (476) -
106
111
471		 (476) -
106
424
-		 (68) -
356
424
-		 (68) -
356
1,000
-
500
-
450
150
112
-
-
908		 -
-
-
-
-		 -
1,000
-
500
-
600
(112)
-
(908)
-
2,062
1,058		 - (284)
2,100
2,597
1,529		 (544) (1,020)
2,562
-
162		 (18) -
144
-
162		 (18) -
144
2,597
1,691		 (562) (1,020)
2,706

Restricted funds in the group comprise the Building Fund, Engagement Fund and Production Fund.

The Engagement Fund represents donations received in respect of specific education projects to be delivered by the Corporation. This engagement programme is helping to change lives through music and is divided into three main strands of activity through supporting communities, engaging with music and discovering careers in music.

The Production fund’s associated artist scheme is committed to developing talent and diversifying our artists and audiences. The introduction of this scheme allows us to put the forefront of artistic innovation, and positively challenge people’s perception of the Royal Albert Hall.

74

Notes to the accounts 31 December 2024

22 Restricted Funds (Continued)

The Building fund contains a number of projects including a plan to create a modern Artist bar and backstage space. Works started on the Artists Bar during 2024. The Creator space is no longer a proposed project and funds were transferred to the Artists Bar fund during the year by agreement of the donor. Also included is a fund to complete the restoration of Door 6. This is the door that faces the Prince Albert memorial.

The Royal Albert Hall Trust is a separately constituted Trust with charitable status whose Trustees include the current President of the Corporation. Its purpose is to raise funds for future maintenance and preservation of the fabric and facilities of the Royal Albert Hall and to help fund its Engagement Programme. It periodically makes donations to the Corporation.

During the year the Trust made a grant of £0.5m to the Corporation’s Engagement Programme (2023: £0.5m). It also made a grant of £0.2m (2023: £1.0m), to the restricted Building Fund (which comprises grants and donations raised from companies and individuals), in order to fund improvements to the building. A further grant of £0.1m (2023: £0.1m) was made to the Production Fund to fund the Hall’s Artistic Development programme. These funds were received by the Corporation and spent in the year.

During the year a transfer of £0.2m (2023: £1.0m) was made from the Building Fund to unrestricted reserves. This represents the transfer of assets as the money has been used for the purpose for which it was given.

75

Notes to the accounts 31 December 2024

23 Unrestricted funds

Corporation Tangible &
intangible
fixed assets
fund
£’000		 Engagement
fund
£’000		 Project
expenditure
fund
Pension
Buyout fund
£’000
£’000
-
1,500
-
-
1,000
-
-
-
-
(1,320)
1,000
180		 Business
Interruption
fund
Total
designated
funds
£’000
£’000		 General
fund
£’000
700
54,937
(14,032)
-
(39,282)
2,323		 Total
unrestricted
funds
£’000
Balance at 1 January 2024
Income
New Designations
Transfer
Utilisation/expenditure
Balance at 31 December 2024		 51,522
-
3,132
173
(3,100)
600

-

-

-

-		 5,400
59,022
-
-
9,900
14,032
-
173
-
(4,420)		 59,722
54,937
-
173
(43,702)
51,727 600 15,300
68,807		 71,130
Group Tangible &
intangible
fixed assets
fund
£’000		 Engagement
fund
£’000		 Project fund
Pension
Buyout fund
£’000
£’000		 Business
Interruption
fund
Total
designated
funds
£’000
£’000
5,400
59,022
-
-
9,900
14,032
-
303
-
(4,420)
15,300
68,937		 General
fund
£’000
700
59,068
(14,032)
(130)
(43,283)
2,323		 Total
unrestricted
funds

£’000

59,722

59,068

-

173

(47,703)
71,260
Balance at 1 January 2024
Income
New Designations
Transfer
Utilisation/expenditure
Balance at 31 December 2024		 51,522
-
3,132
303
(3,100)		 600
-
-
-
-		 -
1,500
-
-
1,000
-
-
-
-
(1,320)
51,857 600 1,000
180
Corporation Tangible &
intangible
fixed assets
fund
£’000
48,646
-
4,599
1,020
(2,743)
51,522		 Engagement
fund
£’000

-
-

600

-

-
600		 Pension
Buyout fund
£’000		 Business
Interruption
fund
Total
designated
funds
£’000
£’000		 General
fund
£’000
(846)
45,513
(12,099)
-
(31,868)

700
General
fund
£’000
(486)
52,672
-
(12,099)
-
(39,387)
**700 **		 Total
unrestricted
funds
£’000
Balance at 1 January 2023
Income
New Designations
Transfer
Utilisation/expenditure
Balance at 31 December 2023		 -
-
1,500
-
-		 -
48,646
-
-
5,400
12,099
-
1,020
-
(2,743)		 47,800
45,513
-
1,020
(34,611)
1,500 5,400
**59,022 **
59,722
Group Tangible &
intangible
fixed assets
fund
£’000
48,646
-
-
4,599
1,020
(2,743)
51,522		 Engagement
fund
£’000
-
-
-
600
-

-
600		 Pension
Buyout fund
£’000		 Business
Interruption
fund
Total
designated
funds
£’000
£’000		 Total
unrestricted
funds
£’000
Balance at 1 January 2023
Income
Other gain/(losses)
Transfer
Utilisation/expenditure
Balance at 31 December 2023		 -
-
-
1,500
-
-		 -
48,646
-
-
-
-
5,400
12,099
-
1,020
-
(2,743)		 48,160
52,672
-
-
1,020
(42,130)
1,500 5,400
59,022
59,722

76

Notes to the accounts 31 December 2024

23 Unrestricted funds (continued)

The Tangible and Intangible Fixed Asset Funds represent the net book value of the Corporation’s fixed assets. A decision was made to separate this fund from the general fund in recognition that the tangible and intangible fixed assets are essential to the day-to-day work of the Corporation and as such their value should not be regarded as funds that are realisable to meet future contingencies. The net increase in the fund of £0.3m represents the level of capital additions during the year (net of depreciation).

The Engagement Fund (formerly the Education & Outreach fund) exists to protect such initiatives from any adverse short-term financial performance issues the Corporation may encounter. There was no movement on this fund in the year (2023: £0.6m added).

Previously the Hall maintained a Plant and Fabric Sinking Fund and a Major Building Development Fund. These were merged during 2024 to create the Estate Plan Fund. There is currently nil held in this fund.

The trustees set aside £1.5m in 2023 for the Pension Fund as they began to explore the opportunity of a buy out of the defined benefits pension (See note 24). During 2024 the corporation transferred a special contribution to the pension scheme of £1.3m to fund the shortfall and facilitate the initial bulk annuity purchase by the third-party insurer. The balance of £0.2m will be used to fund any further associated fees until the buy-out of the scheme. This is expected in late 2025 / early 2026.

The Business Interruption Contingency Fund was set up in response to the covid-19 pandemic which had a significant impact on the Hall and its finances. The Trustees believe it is prudent for the charity to hold a Business Interruption Contingency Fund, equivalent to 6 months of operating expenditure, to ensure the Hall can react proactively should a future scenario have a similar impact on the Hall’s operations. During the year £9.9m was transferred to this fund (2023: £5.4m). The closing balance held of £15.3m is therefore considered to be 6 months of operating expenditure so the fund is at its desired level.

The Project Expenditure fund was set aside in 2024 to meet the cost of proposed project and building expenditure originally planned for 2024 but has been rolled over into 2025. During the year £1m was transferred to this fund to meet the cost of works during 2025.

77

Notes to the accounts 31 December 2024

24 Analysis of net assets between funds

Corporation
Tangible & Intangible fixed assets
Fixed Asset Investments
Net current assets
Creditors over 1 year
Total net assets		 Unrestricted fund 2024
Total
£’000
Designated
funds
£’000
General
fund
£’000
Restricted
funds
£’000
51,727
-
-
-
11,525
-
17,080
11,543
97
-
(20,745)
-		 51,727
11,525
28,720
(20,745)
68,807
2,323
97		 71,227
Group
Tangible & Intangible fixed assets
Fixed Asset Investments
Net current assets
Creditors over 1 year
Total net assets
Corporation
Tangible & Intangible fixed assets
Investments
Net current assets
Creditors over 1 year
Total net assets
Group
Tangible & Intangible fixed assets
Investments
Net current assets
Creditors over 1 year
Total net assets		 Unrestricted fund Unrestricted fund
Designated
fund
£’000		 General
fund
£’000		 Restricted
Funds
£’000		 2024
Total
£’000
51,857
-
17,080
-		 -
11,500
11,568
(20,745)		 -
-
3,350
-		 51,857
11,500
31,998
(20,745)
68,937 2,323 3,350 74,610
Unrestricted fund 2023
Total
£’000
Designated
funds
£’000		 General
fund
£’000		 Restricted
funds
£’000
51,522
-
7,500
-		 -
25
22,589
(21,914)		 -
-
144
-		 51,522
25
30,233
(21,914)
59,022 700 144 59,866
Unrestricted fund
Designated
fund
£’000
General
fund
£’000		 Restricted
Funds
£’000		 2023
Total
£’000
51,522
-
-
-
7,500
22,614
-
(21,914)		 -
-
2,706
-		 51,522
-
32,820
(21,914)
59,022
700		 2,706 62,428

78

Notes to the accounts 31 December 2024

25 Pension commitments

The Royal Albert Hall offers a Stakeholder Pension Plan which comprises a series of individually owned personal pension accounts, arranged on a group basis, the provider of which is Aviva. Each member and, in respect of eligible members, the Corporation contribute amounts determined by either an age related or a matching scale into a personal account for each member, which is held and invested by Aviva.

For staff who choose not to join the Stakeholder Pension Plan, or are not eligible to join, the Hall uses “The People’s Pension” scheme to comply with the requirements of automatic enrolment.

The Royal Albert Hall Pension Scheme has two sections. The defined benefit section was closed to new members on 30 September 1997 and ceased accruals on 31 December 2014. A defined contributions section commenced on 1 October 1997, and was closed to new entrants and future contributions on 31 August 2006. Both sections are externally funded and contracted out of the State Second Pension. In 2020, the Scheme’s trustees transferred responsibility for the defined contributions section into the Legal & General Mastertrust. The defined benefit section remains held in a separate trustee administered fund.

The defined benefit section is valued every three years by a professionally qualified actuary using the attained age method, the rates of contribution payable being recommended by the Scheme’s Trustees and agreed by the Corporation on the advice of the actuary. In the intervening years, the actuary reviews the progress of this section. Under the projected unit method, current service costs for the defined benefit section will increase as members of the scheme approach retirement.

During the year the corporation transferred a special contribution to the pension scheme of £1.3m to fund the shortfall in the pension fund and facilitate the initial bulk annuity purchase by the third-party insurer.

A full actuarial valuation of the defined benefit section was carried out as at 31 March 2021. The valuation findings indicated a market value of the defined benefit section assets of £15.3m, sufficient to cover 105.8% of the benefits which had accrued to Scheme Members; and a past service surplus of £0.8m.

The unrestricted surplus, as calculated under the accounting standard FRS 102, was £0.04m as at 31 December 2024, down from £0.7m as at 31 December 2023. The main reason for the decrease in the surplus over the period is the Scheme’s assets performing worse than expected and negative inflation experience. This has been partially offset by increases in corporate bond yields leading to a higher discount rate and a lower value being placed on the liabilities.

79

Notes to the accounts 31 December 2024

25 Pension commitments (continued)

However, the surplus in the disclosures below has been restricted to £nil. This is because the Corporation is only allowed to recognise a surplus in its balance sheet to the extent that it can generate a future economic benefit for itself. As regards the Stakeholder Scheme, the Corporation and each member contribute amounts determined by an age related or a matching scale into a personal account for each member, which is invested by investment managers appointed by the Scheme’s Trustees.

Pension expenses have been split between maintaining and developing the Hall and promoting the arts and sciences based on allocation of staff within unrestricted funds.

The contributions made by the Corporation over the financial year in respect of each section of the scheme were as follows:

2024
£’000		 2023
£’000
Defined benefit section
Defined contribution section / Stakeholder Scheme		 -
705		 -
579

The Hall expects to pay no contributions in the year to 31 December 2025 as there was a surplus in the Scheme at the last actuarial valuation. The Hall will meet directly any administrative costs and other expenses incurred by the Scheme.

FRS 102 requires the surplus or deficit on the Scheme as at 31 December 2024, calculated in accordance with the requirements of FRS 102, to be included on the balance sheet. For the purpose of FRS 102, the assets of the scheme have been taken at market value and the liabilities have been calculated by a qualified independent actuary using the following principal assumptions (which differ from those used for the triennial actuarial valuation):

Inflation
Salary increases
Rate of discount
Pension increases
Assumed life expectancy inyears at age 65:
Retiring today – Males
Retiring today – Females
Retiring in 20 years’ time – Males
Retiringin 20years’ time – Females		 2024
%		 2023
%
3.5%
-
5.5%
3.2%		 3.3%
n/a
4.6%
3.0%
2024 2023
21.5
24.2
23.1
25.8		 22.2
24.7

23.9
26.4

80

Notes to the accounts 31 December 2024

25 Pension commitments (continued)

The assets in the scheme were:
Assets
Gilt Fund
Index-Linked Gilts
Cash
Multi Asset Credit
Insured assets
Total market value of assets
Actuarial value of liability
Surplus in Scheme
Unrecognised asset
Recoverable surplus		 Value at 31
December
2024
£’000		 Value at 31
December
2023
£’000
-
-
41
-
8,711		 2,306
3,565
81
3,903
629
8,752
(8,710)		 10,484
(9,799)
42
(42)		 685
(685)
- -

The Scheme has in the past secured annuities with an insurance company for members on their retirement. An allowance has been made for these members in both the asset and liability figures at 31 December 2024.

In total, the movement in the Scheme’s assets during the year is made up as follows:

2024
£’000
2023
£’000
10,484
10,681
503
516
1,320
-
(489)
(316)
(3,066)
(397)
8,752
10,484
Fair value of assets at 1 January
Interest on assets
Company contributions
Benefits paid
Return on plan assets less interest
Fair value of assets at 31 December

In total, the movement in the Scheme’s liabilities during the year is made up as follows:

2024
£’000		 2023
£’000
Actuarial value of liabilities at 1 January
Current service cost
Contributions by Scheme participants
Past service cost
Interest cost
Benefits paid
Experience (gain) on defined benefit obligation
Changes to demographic assumptions
Changes to financial assumptions
Actuarial value of liabilities at 31 December		 9,799
-
-
-
437
(489)
58
(170)
**(925) **		 9,407
-
-
-
453
(316)
300
(396)
351
8,710 9,799

81

Notes to the accounts 31 December 2024

25 Pension commitments (continued)

In accordance with FRS 102 the following components of pension charge have been recognised in the statement of financial activities for the year ended 31 December 2024.

31 December 2024.
2024
£’000		 2023
£’000
Analysis of the amount charged within resources expended
Current service cost
Past service cost
Total amount included within resources expended
Analysis of net return on scheme
Interest assets
Interest on liabilities
Interest on effect of asset ceiling
Net return
Analysis of amount recognised as an actuarial loss within the
statement of financial activities
Gain/(loss) on scheme assets in excess of interest
Experience losses on liabilities
(Losses)/gains from changes to demographic assumptions
(Losses)/gains from changes to financial assumptions
Adjustment in respect of restriction of surplus
Actuarial loss recognised within statement of financial activities		 -
-		 -
-
- -
503
(437)
(32)		 516

(453)

(63)
34
-
(3,066)
(58)
170
925
675		 (397)
(300)
396
(351)
652
**(1,354) ** -
Amount recognised in Statement of Financial Activities
Actuarial (losses) on liabilities
Actuarial gains on net return on scheme
Total (loss) recognised in Statement of Financial Activities in the period		 (1,354)
34		 -

-
(1,320)
-

82

Notes to the accounts 31 December 2024

26 Prior year consolidated statement of financial activities

The statement of financial activities for 2023 is shown here for comparison purposes. The 2024 statement of financial activities is shown on page 49.

Notes
Unrestricted
funds
£’000		 Restricted
funds
£’000		 2023
Total
funds
£’000
Income:
Donations and legacies
1
1,557
1,691
3,248
Income from charitable activities:
Operation of Hall
2
32,480
-
32,480
Investment income and interest
1,976
-
1,976
Income from other activities:
Commercial trading operations
3
16,659
-
16,659
Total income
52,672
1,691
54,363
Expenditure:
Costs of raising funds
553
-
553
Expenditure on charitable activities:
Maintaining and developing the Hall
4
9,563
18
9,581
Promoting the arts and sciences
4
31,599
544
32,143
Interest repayable
415
-
415
Total expenditure
42,130
562
42,692
Net income
10,542
1,129
11,671
Transfer between funds
21/22
1,020
(1,020)		 -
Net movement in funds
11,562
109
11,671
Reconciliation of funds:
Fund balances brought forward at 1 January
48,160
2,597
50,757
Fund balances carried forward at 31 December
59,722
2,706
62,428

83