OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-08-31-accounts

London Film School Limited

Annual Report and Financial Statements

31 August 2024

Company Limited by Guarantee Registration Number 01197026 (England and Wales) Charity Registration Number 270302

Contents

Reports

Reports
Reference and administrative information 1
Chair’s introduction 3
Governors report 4
Statement of corporate governance
and internal control 12
Independent auditors report 16
Financial statements
Statement of financial activities 19
Balance sheet 20
Statement of cash flows 21
Principal accounting policies 22
Notes to the financial statements 26

London Film School Limited

Reference and administrative information

Governors Greg Dyke (Chair)
Amanda Nevill CBE (Vice Chair)
Kemal Akhtar
Suzy Black
Peter Holliday (resigned 17/7/2024)
Nicholas Humby
Olivier Kaempfer
William MacPherson
Ellinor Olinder (Student Governor) (appointed 21/2/2024)
Cindy Rampersaud (resigned 17/7/2024)
Gregory Randolph (Student Governor) (resigned 21/2/2024)
Joan Watson
Sophia Wellington (Staff Governor)
Management Team Neil Peplow (Director and Chief Executive) appointed 30/1/2023
and resigned 5/11/2023
Christopher Auty (Director and Chief Executive Officer) appointed
6/11/2023
Femi Kolade (Director of Studies) retired 22/12/2023
Dan Lawson (Chief Operating Officer) resigned 6/11/2023
Rodney Jones (interim Chief Operating Officer) joined 16/10/2023
Veronique Fricke (Head of Marketing & Student Recruitment)
resigned 1/11/2023
Holly Blake (Head of Marketing) appointed 2/11/2023
Margaret Glover (interim MA Filmmaking Course Leader) joined
26/3/2023, retired 31/10/2023
Charis Cloke (MA Filmmaking Course Leader) appointed 4/9/2023
Michele Maher (Academic Registrar)
Anita O’Connor (Head of Finance)
Victoria Thomas (MA International Film Business Course Leader)
Claudia Lana (Head of HR)
Sophia Wellington (MA Screenwriting Course Leader)
Mark Prescott (Head of New Business & Training) appointed
13/5/2024
Principal address and 24 Shelton Street
registered office London
WC2H 9UB
Telephone 0207 836 9642
Facsimile 0207 497 3718
Website www.lfs.org.uk
E-mail info@lfs.org.uk

London Film School Limited 1

Reference and administrative information

Company registration number 01197026 (England and Wales) Charity registration number 270302 Auditor HaysMac LLP 10 Queen Street Place London EC4R 1AG Bankers Royal Bank of Scotland London Drummonds Branch 49 Charing Cross London SW1A 2DX Solicitors Pinsent Masons LLP 30 Crown Place London EC2A 4ES

London Film School Limited 2

Governors report Year to 31 August 2024

Chair’s Introduction to Annual Report and Financial Statements, 31 August 2024

These are the accounts for the London Film School for the year ending 31 August 2024.

London Film School has seen significant development over the past 12 months with the appointment of senior leadership positions, including School Director, Chris Auty and the development of the School’s magnificent new principal teaching building in Covent Garden, which has been made possible with the support and philanthropy of Michael Chambers. The School continues to grow and is preparing to launch a range of new courses and to expand its UK outreach and short course offering.

The School continues to consolidate its position as a leading global institution for cinematic education and artistic expression – which was underlined by the selection for the third year in a row of an LFS graduate film in one of the main competitive selections for student work at the Cannes Film Festival 2024. I have had the privilege of witnessing at first hand the talent, dedication, and vision of our students and staff through their work and seeing the host of accolades and achievements that continues to be awarded. London Film School remains committed to its mission of fostering innovative storytelling and providing an exceptional platform for aspiring filmmakers to thrive in an ever-evolving and global industry.

Throughout the past year, we have embraced opportunity and managed the challenges facing us – not least in overcoming the disruption caused by building works around our Shelton Street historic home, as the final phase of the exciting Covent Garden Yards property development came to fruition in the year under review. The School’s ability to adapt to changing environments and deliver growth has been crucial. From the adjustment to new facilities to the exploration of diverse storytelling perspectives, we have maintained our focus on equipping our students with the skills and mindset required to succeed in the dynamic creative environment of the modern screen industries.

As we look to the future, we do so with confidence and optimism. The Board is committed to supporting the School in its vision to continue shaping the storytellers of tomorrow while preserving the legacy of excellence that has defined London Film School for decades.

Financially, the School has worked diligently to ensure future sustainability and transparency, and that is reflected in the accounts presented in this report.

I would like to thank my fellow Governors for their unstinting commitment and work in supporting the School and overseeing the significant strategic paths for change and development on which the School has embarked this year. On behalf of the Board, I extend my deepest gratitude to all of the staff, students and supporters who have made possible our achievements this year.

Greg Dyke January 2025

London Film School Limited 3

Governors report Year to 31 August 2024

The Governors present their annual report together with the financial statements of London Film School Limited for the year ended 31 August 2024.

The financial statements have been prepared in accordance with the accounting policies set out on pages 22 to 25 and comply with the charitable company’s memorandum and articles of association, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), section edition effective 1 January 2019.

Overview

The 2023/24 academic year has seen significant and dynamic changes for London Film School (LFS). The most substantial change will see the School move much of its teaching into a spacious, and newly equipped building in Covent Garden, for the start of the spring 2025 term, marking a step change in provision for the MA programmes.

The last year has also seen senior personnel join LFS and add their experience and leadership abilities to the School, allowing for growth and progression throughout the management and academic development of the School. Chris Auty was appointed CEO and Director in November 2023, following the appointment of Charis Coke as Course Leader of MA Filmmaking earlier in the year.

The move into a new building has allowed for the existing LFS building to be significantly renewed and regenerated.

The School move

In taking tenancy of the building at 39-41 Parker Street, all three MA programmes will be taught under the same roof, with students working in sound stages, production design studios, post-production suites and teaching spaces together. The move provides a stepchange in quality, space and flexibility in space use for our students and staff.

Uniquely, this building is shared with the groundbreaking Garden Cinema, the first independent cinema to open in the West End in over 20 years. Together the two facilities create a film and screen industries hub in the heart of central London.

Senior leadership appointments

Chris Auty was appointed School Director and CEO in November 2023. Chris had been a senior Head of Department at the National Film and Television School for the previous ten years.

Chris also brought with him extensive experience in the film industry as founder of The Works plc, and Managing Director of the Recorded Picture Company. He has worked with directors including Bernardo Bertolucci, David Cronenberg, Michael Winterbottom, and Vincent Ward.

Charis Coke also joined as Course Leader in September 2023 to develop the flagship MA Filmmaking programme. Charis was previously programme director at the University for the Creative Arts, Farnham and trained originally in film sound design. Mark Prescott was also appointed as Head of New Business and Training. A former Clore fellow and new business development executive, Mark had previously served as a senior exec at the British Film Institute. Rod Jones was appointed acting COO in October 2023. Prior to joining LFS, Rod served extensively as a COO and change manager at various leading educational institutions including UCL Academic Programmes Office, and extensively at the Italia Conti Academy of Theatre Arts where he oversaw the renaissance of the academy and its move to entirely new premises.

London Film School Limited 4

Governors report Year to 31 August 2024

Workshops

LFS offers a wide range of workshops for professional development, developing skills and creativity, or simply exploring a passion for cinema. The primary objective of establishing LF Works is to open pathways for the next generation of filmmaking talent to have the opportunity to study and grow their skills.

The workshops will be housed in the previous School building, the renowned 24 Shelton Street, which has been retained after the move to Parker Street, to preserve the wealth of the School’s filmmaking history, as well as its dedicated filmmaking studios and two cinemas.

Achievements and Performance

This was an exceptional year, with a particular concentration of outcomes during the Cannes Film Festival in May 2024. MA Filmmaking grad Dovydas Draksas saw his LFS graduation film Praeis selected in La Cinef – the main Cannes official Palme competition for student films from around the world.

Alumni success at Cannes in 2024 also included filmmaking alumni Cem Demirer and Sebastian Lojo. Their film Noksan won the Canal+ Award for Short Film in Semaine de la Critique at Cannes 2024. Noksan (Absent) was written and directed by Cem Demirer, with Sebastián Lojo as cinematographer. Separately, screenwriting alumna Chloe Hudson took part in CANNESERIES Unlimited, a writing residency that aims to develop the next generation of series writers.

Reflecting the wide range of work that comes from our students, Pierre Alain Giraud won an award at the Cannes Immersive Competition for Best Immersive Work – his film Colored is an XR immersive experience directed by Pierre and Stéphane Foenkinos, based on Tania de Montaigne’s book Noire . This augmented reality film tells the story of Claudette Colvin, who, at 15 years old, was arrested for refusing to give up her seat to a white passenger on a bus in 1950s segregated America. The width and range of Cannes outcomes was celebrated on the ground by the 25-strong cohort of the school’s MAIFB students attending the Cannes Film Market, and taking part in a series of industry seminars hosted at the new campus of the Cannes Mandelieu University, with specialist finance tutors from the international film business.

Other highlights of the year include this edition of the annual Audiovisual Pitching competition in Barcelona (Nov 2023): LFS our grads were selected for the main event at Audiovisual Talent Week: MA International Film Business students, Colleen Sullivan and Shammika Mukherjee, and Chenzhe Chloe He and Xiangming Huang from MA Screenwriting were all recognised as emerging talent in the screen industries.

Objectives and Activities

The School’s principal purpose is the provision of professional-level training in the art and technique of film production and feature film screenwriting. Our core provision includes a two-year MA Filmmaking degree covering all of film’s craft and interpretative departments, and a one-year MA degree in Screenwriting. The MA in International Film Business continues in partnership with Exeter University, as does a successful PhD Film by Practice programme.

From September 2023 until August 2024 a total of 160 students graduated from the three MA programmes: 41 for MA Screenwriting, 79 for MA Filmmaking and 40 for MA International Film Business.

The School has offered 25 short course workshops for film and television professionals in the past year.

London Film School Limited 5

Governors report Year to 31 August 2024

Objectives and Activities (continued)

The School also offers an expanding programme of outreach projects, bringing filmmaking training and education to audiences who could not normally access such opportunities for reasons of cost or geography.

The Governors confirm that they have referred to the Charity Commission’s general guidance on public benefit when reviewing the School’s objectives and aims and in planning future activities.

The School’s main objectives for the year were:

Bursaries and student funding

The School is focused on ensuring film education is accessible irrespective of background. As a result, the School has two means-tested Hardship Emergency Funds (i) for Home status students and (ii) for International students to support those students that were experiencing unexpected short-term emergency or crises. The criteria for Home status students were intended to help with unforeseen increase to the day-to-day expenses and course related costs, such as cost of childcare, medical expenses or utilities.

London Film School Limited 6

Governors report Year to 31 August 2024

Objectives and Activities (continued)

The School continues to work alongside the Leverhulme Trust which provides bursaries to home students who meet the means-tested criteria.

Activities

a. Workshops

The School’s series of short courses and workshops are open to the public providing an inclusive opportunity for new and young filmmakers to get hands-on, practical and intensive learning experiences without the entry requirements and time demanded by the MA programmes.

The short courses on offer are continuously reviewed to allow for more dynamic or urgent shifts in industry demand. Offering the courses over evenings and weekends allows LFS to provide professional development outside of typical working hours.

b. Outreach

The LFS Outreach programme reflects the holistic, practice-based learning which is at the core of LFS teaching. LFS develops and delivers a wide programme of film education courses to the young people in and around London as well as further afield.

LFS firmly believes that making films is a challenging and powerful creative process which benefits young people in many ways. Our mission is to make filmmaking accessible to young people anywhere, empowering them to develop their creativity, embed core life skills, and support them in their efforts to tell their own stories.

The School has a number of initiatives in place to achieve this, including an extensive outreach programme that engages with local schools, colleges and youth organisations to introduce young people to filmmaking. Our courses offer the opportunity to engage in the creative process of making a film, igniting, and nurturing creative potential, boosting confidence and self-esteem.

LFS is hugely proud of delivering a truly unique, creative and artistic outreach programme for the children and young people in London. By providing young people with access to high quality film education, we are helping to open new opportunities for young people from all backgrounds, contributing to a more diverse and inclusive film industry.

c. Masterclasses

The Masterclasses allow students, alumni and staff to hear from experts and brilliant minds across the world of filmmaking. The masterclasses serve to inspire hope, learn more and connect students, staff and alumni with those working in the industry.

Financial review

A summary of the year’s results can be found on page 19 of the attached financial statements. Total income for the year was £7,470,179 (2023 - £7,954,707). Much of the tuition fee income is from the MA Filmmaking course. The London Film School received grant funding of £0.7m, by the Office for Students, in recognition as a World Leading Specialist Provider.

Total expenditure for the year amounted to £7,867,245 (2023 - £6,473,928).

London Film School Limited 7

Governors report Year to 31 August 2024

The net movement in funds for the year was a deficit of £397,066 (2023 – surplus of £1,480,779). During the year there was a significant movement of funds, partly due on the one hand to the receipt of two years’ worth of Office for Students funding in the prior year; and on the other hand due to significant additional costs incurred during the year as a result of dislocation following noisy building works in an adjacent building. These are one-time costs and, though the outcome is still uncertain, it is expected that a proportion of these costs will be recoverable.

Reserves Policy and financial position

The reserves policy is to maintain unrestricted reserves appropriate to ensure financial stability, continuity of activities, and effective management of risks. Governors will have regard to the School’s future plans, liquidity requirements, and proportionate contingency funds against unexpected adverse events. The reserves policy is to be kept under review in the following year.

On 31 August 2024, the School had total funds of £2,217,548 (2023 - £2,614,614). Included in total funds is an amount of £22,028 (2023 - £22,028) which is restricted. These monies have either been raised for, and their use restricted to specific purposes, or they comprise of donations subject to donor-imposed conditions. Full details of these restricted funds can be found in note 13 to the financial statements together with an analysis of movements in the year.

Unrestricted funds of the charity at 31 August 2024 amounted to £2,195,520 (2023 - £2,592,586), which are net of a £0.8m CBILS loan. These funds include tangible fixed assets with a net book value of £1,692,660 (2023 – £302,851) which are needed for the School’s day-to-day operations. At the end of the financial year, the level of free reserves of the School stood at £502,860 (2023 - £2,289,735).

Governance, structure and management

Constitution

London Film School Limited (“LFS” or “the School”) is a registered charity (Charity Registration No. 270302) and a company limited by guarantee (Company Registration No. 01197026). The charitable company’s memorandum and articles of association dated 20 January 1975 (as amended by special resolution of 21 July 1975 and 13 May 2008) are its primary governing documents.

Members’ liability

The liability of the members in the event of winding up is limited to 50 pence per member.

Governors

The Governors of the School also constitute directors of the charitable company for the purposes of company law and trustees for charity law. This report is also a directors’ report as required by section 415 of the Companies Act 2006. The Governors who held office during the financial year and at the date of signing this report are set out on page 1.

Governors are appointed by election at the Annual General Meeting (AGM). The Student Governor is elected by students and the Staff Governor is elected by the staff.

Members of the Management Team, as set out on page 1, cannot be appointed as Governors of the School.

London Film School Limited 8

Governors report Year to 31 August 2024

The size of the Governing Body is set between 8 and 25 Governors. Approximately one third of the Governing Body retire annually, by rotation in order of seniority, and can offer themselves for re-election at the AGM.

The Nominations Committee undertakes a skills analysis of the Governing Body and role profiles are agreed, against which the School recruits new Governors. Governors must have empathy with film and the creative industries. Newly appointed Governors receive a full induction to the School, bespoke to their needs. The Governing Body regularly holds an away day, joined by members of the Management Team.

Organisation

The Governing Body met seven times in the year, from 1st September 2023 until 31st August 2024.

Its governance structure includes four committees:

The Governing Body also receives minutes from the Academic Board as a line of sight on all academic matters.

The strategic priorities are focussed on by the Director and the Management Team.

The day-to-day running of the School is delegated to the Chief Operating Officer and the Management Team.

Key management personnel

The key management personnel of the School comprise the Governors and the Management Team.

The Management Team are a dedicated team of management personnel that have the authority and responsibility of planning, directing and controlling the activities of the School, directly or indirectly. Within the School this includes the Director, Director of Studies, Chief Operating Officer, Head of Marketing, Academic Registrar, Head of Finance and Head of HR. Course Leaders for each of the MA programmes have also joined the Management Team, ensuring greater visibility of academic matters and greater academic inclusion. The Management Team meets formally on a monthly basis, with minutes of each meeting shared with all staff, (see Note 7).

London Film School Limited 9

Governors report Year to 31 August 2024

Statement of governors’ responsibilities

The Governors (who are also directors of The London Film School Limited for the purposes of company law) are responsible for preparing the governors’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period. In preparing these financial statements, the Governors are required to:

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

Each of the Governors confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

Risk management

The Governors have assessed the major risks to which the charity is exposed, in particular those relating to the specific operational areas of the School and its finances. The Governors believe that by monitoring reserves levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the School, they have established effective systems to mitigate those risks. Our keys risks include:

Regulatory Environment

As a registered Higher Education Provider under the Office for Students, LFS is subject to considerable regulatory oversight aimed at ensuring its courses offer high levels of quality and value for money. In order to ensure ongoing compliance with the regulatory environment the School has made further progress in reviewing and updating the School’s policy frameworks, with an emphasis on quality assurance, and regular internal monitoring and reviews.

London Film School Limited 10

Governors report Year to 31 August 2024

LFS’ continued membership of CILECT, the confederation of international film schools, and also of GuildHE, ensures it has a supportive network of providers in the same field with whom to share and learn best practice.

LFS is also subject to considerable regulatory oversight from our validating partner the University of Warwick and delivery partner (for the MA International Film Business and PhD programmes) the University of Exeter to ensure that its courses offer high level of quality and student outcomes.

Facilities

The School’s ageing facilities at 24 Shelton Street require ongoing maintenance and updates to ensure it continues to be a space usable for all levels of film education. Since our last annual report, significant renovation of several major spaces throughout the building have taken place.

Relationship with other organisations

In pursuit of its strategic objectives of building new connections, the School works with several organisations across screen industries, training partners and public bodies: including training partners such as the University of Exeter, University of Warwick, NAHEMI, CILECT, the Deutsche Film und Fernsehakademie Berlin (DFFB), and UGC Series Mania.

Screen industry partners such as Panalux, many film festivals, plus platforms including MUBI and Omeleto, support the distribution work of LFS’s fresh filmmaking talent around the world.

To support alignment and complementarity with other initiatives in the UK, partners across UK-wide, and London-specific public bodies have included the British Film Institute, Film London’s Equal Access Network, Creative England’s iFeatures scheme, the British Council and many more.

Approved by the Governing Body and signed on its behalf by:

Greg Dyke

Chair of Governors

Approved by the Governors on: 30 January 2025

London Film School Limited 11

Governors report Year to 31 August 2024

Statement of corporate governance and internal control

The following statement is provided to enable readers of the annual report and financial statements of London Film School Limited to obtain a better understanding of its governance and legal structure. The statement covers the period from 1 September 2023 to 31 August 2024 and up to the date of the approval of the annual report and financial statements.

The School endeavours to conducts its business:

  1. Having due regard to the UK Corporate Governance Code 2024 in so far as it is applicable to the Higher Education Sector; and

  2. Complying with Office for Students on-going conditions or regulations and terms of conditions of funding as well as other regulatory responsibilities.

We have adopted the UK Corporate Governance Code. We have reported on our Corporate Governance arrangements by drawing upon best practice available, including those aspects of the UK Corporate Governance Code that we consider relevant to the Higher Education Sector.

The Governors recognise that the School, as a body entrusted with both public and private funds, has a particular duty to observe the highest standards of corporate governance at all times.

Legal Status

The London Film School is a Registered Charity and a Private Limited Company by guarantee without share capital.

The Governors confirm that they have due regard for the Charity Commission’s guidance on public benefit and that the required statement appears elsewhere within these financial statements.

Governors

The members who served as Governors during the year and up to the date of signature of this report are listed below.

Governor Appointed/Resigned
Greg Dyke (Chair)
Amanda Nevill (Vice Chair)
Kemal Akhtar
Suzy Black
Peter Holliday Resigned 17/07/2024
Nicholas Humby
Olivier Kaempfer
William MacPherson
Cindy Rampersaud Resigned 17/07/2024
Gregory Randolph (Student Governor) Resigned 21/02/2024
Ellinor Olindor Appointed 21/02/2024
Joan Watson
Sophia Wellington(Staff Governor)

London Film School Limited 12

Governors report Year to 31 August 2024

Meeting procedures

Formal agendas, papers and reports are supplied to the Governors in a timely manner, prior to Governing Body meetings. Briefings are also provided on an ad hoc basis. Reports include overall financial performance of the School together with other information such as performance against funding targets, proposed capital expenditure, quality matters and personnel related matters such as health and safety issues. The Governing Body met 7 times in 2023/24.

The Governing Body receives advice on the conduct of its business from five committees. Each committee has its own terms of reference which have been approved by the Governing Body. These committees are: Audit and Risk; Nominations; Remuneration; Relocation; and the Academic Board.

London Film School has a strong and independent non-executive element, and no individual or group dominates its decision-making process. The School considers that each of its nonexecutive members is independent of management and free from any business or other relationship which could materially interfere with exercise of their independent judgement. There is a clear division of responsibility in that the roles of the Chair and Accounting Officer are separate.

Appointment to the Governing Body

The Nominations Committee undertakes a skills analysis of the Governing Body and role profiles are agreed, against which the School recruits new Governors. New Governors must have empathy with film and creative art industries. Their induction includes a tour of the School, screenings and from time to time an away day attended by the Governing Body, the principal officers and the wider Management Team. An information pack about the School is also given to each new Governor.

Governing Body performance

The Governing Body has made a strong contribution to the improvements made in 2023/24 through the setting of challenging targets with regular scrutiny of performance. There is strong performance management at Governing Body meetings. The Governors provide robust scrutiny and challenge. Governors are pro-active in their oversight of the School and are involved in the planning and discharging of Governing Body business.

Committees

Audit and Risk Committee

The Audit and Risk Committee is responsible to the Governing Body in discharging its responsibilities for monitoring the integrity of the School’s financial statements, the effectiveness of financial controls with regard to internal risk assessment and the performance and objectivity of external auditors.

The members who served on the committee during the year and up to the date of signature of this report are listed below.

of this report are listed below.
Governor Appointed/Resigned
Peter Holliday Resigned 17/07/2024
Nicholas Humby (Committee Chair)
Cindy Rampersaud (retired Committee Chair) Resigned 17/07/2024
William McPherson
Joan Watson

The Audit & Risk Committee is responsible for the following:

London Film School Limited 13

Governors report Year to 31 August 2024

Internal Control

Scope of responsibility

The Governing Body is ultimately responsible for the organisations’ system of internal control and for reviewing its effectiveness. However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.

The Governing Body has delegated the day-to-day responsibility to the Director & CEO, as Accounting Officer, for maintaining a sound system of internal control that supports the achievement of the organisations policies, aims and objectives, whilst safeguarding the public funds and assets. The Accounting Officer is also responsible for reporting to the Governing Body any material weaknesses or breakdowns in internal control.

The purpose of the system of internal control

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure and can only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of organisation policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place at the organisation for the year ended 31 August 2024 and up to the date of approval of the annual report and financial statements.

Capacity to handle risk

The Governors have reviewed the key risks to which the organisation is exposed, together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The Governors are of the view that there was a formal on-going process for identifying, evaluating and managing the School’s significant risks that had been in place for the year ended 31 August 2024 an up to the date of approval of the annual report and financial statements.

The risk and control framework

The system of internal control is based on a framework of regular management information, administrative procedures including the segregation of duties, and a system of delegation and accountability. It includes:

The Accounting Officer delegates to the Head of Finance the responsibility for reviewing the effectiveness of the system of internal control. The Head of Finance’s review of the effectiveness of the system of internal control is informed by:

London Film School Limited 14

Governors report Year to 31 August 2024

There are no significant internal control weaknesses reported for the period.

The Management Team receives reports setting out key performance and risk indicators and considers possible control issues brought to their attention by early warning mechanisms, which are embedded within the departments. The Management Team and the Audit and Risk Committee also receive regular reports, which include recommendations for improvement.

The Audit and Risk Committee's role in this area is confined to a high-level review of the arrangements for internal control. The Governors’ agenda includes a regular item for consideration of risk and control and receives reports thereon from the Management Team and the Audit and Risk Committee.

Based on above and reports by the Director & CEO, the Governing Body is of the opinion that the organisation has an adequate and effective framework for governance, risk management and control to manage the achievements of the School’s objectives for the year ended 31 August 2024 and it has fulfilled its statutory responsibility for "the effective and efficient use of resources, the solvency of the institution and the safeguarding of their assets”.

Regularity, propriety, and compliance

The School has considered its responsibility to notify the Office for Students of material irregularity, impropriety and non-compliance with Office for Students terms and conditions of funding.

We confirm, on behalf of the School, that after due enquiry and to the best of its knowledge, the Governing Body believes it is able to identify any material irregularity or improper use of funds by the School, or material non-compliance with terms and conditions of funding under the organisations financial regulations. As part of our consideration we have had due regard to our financial regulations. We confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement these will be notified to the Office for Students.

Going Concern

Details on Governors’ going concern assessment are set out on pages 22 to 23. Approved by the Governing Body and signed on its behalf by:

Greg Dyke Chris Auty Chair of Governors Director & CEO (Accounting Officer) Date: 30 January 2025

London Film School Limited 15

Independent auditor’s report Year to 31 August 2024

Independent auditor’s report to the members of The London Film School Limited Opinion

We have audited the financial statements of London Film School Limited for the year ended 31 August 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 charitable company 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 charitable company'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.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Governors’ 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

London Film School Limited 16

Independent auditor’s report Year to 31 August 2024

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Governors’ Report (which incorporates the directors’ report).

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

Matters on which we are required to report in respect of the Office for Students

In our opinion, in all material respects:

We have nothing to report in respect of the following matter in relation to which the Office for Students requires us to report where:

Responsibilities of trustees for the financial statements

As explained more fully in the Statement of Governors’ Responsibilities statement set out on page 10, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

London Film School Limited 17

Independent auditor’s report Year to 31 August 2024

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

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the Office for Students and the Charity Law, health and safety, GDPR and employment law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, Charities Act 2011 and the Office for Students Accounts Direction.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to potential for management to post inappropriate journal entries and to manipulate accounting estimates. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

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

Tracey Young Senior Statutory Auditor

For and on behalf of HaysMac LLP 10 Queen Street Place Statutory Auditors London, EC4R 1AG Date: 6 February 2025

London Film School Limited 18

Statement of Financial Activities Year to 31 August 2024

Notes Unrestricted
funds
£		 Restricted
funds
£
2024
Total funds
£		 Unrestricted
funds
£		 Restricted
funds
£
Total funds
£
Income from:
Donations
1
Charitable activities
2
Investments
Miscellaneous income
Total income
Expenditure on:
Raising funds
3
Charitable activities
. Provision of education
4
Total expenditure
Net movement in funds
6
Reconciliation of funds
Fund balances brought forward
at 1 September
Fund balances carried
forward at 31 August		 —
7,179,927
80,092
126,453
—
—
83,707
7,263,634
—
80,092

—
126,453		 27
7,776,549
47,182
63,343		 —
67,606
—

—		 27
7,844,155
47,182
63,343
7,386,472 83,707
7,470,179		 7,887,101 67,606 7,954,707
—
7,783,538		 —
—

83,707
7,867,245		 14,157
6,393,787		 —

65,984		 14,157
6,459,771
7,783,538 83,707
7,867,245		 6,407,944 65,984 6,473,928
(397,066) —
(397,066)		 1,479,157 1,622
 1,480,779
2,592,586
22,028
2,614,614		 1,113,429
20,406
1,133,835
2,195,520 22,028
2,217,548		 2,592,586 22,028 2,614,614

There is no difference between the net movement in funds stated above and the historical cost equivalent.

All of the charitable company’s activities are derived from continuing operations during the above two financial periods. Income from charitable activities includes the Office for Students World Leading Specialist Provider funding.

The charitable company has no recognised gains and losses other than those shown above.

London Film School Limited 19

Balance sheet Year to 31 August 2024

Notes
2024
£		 2024
£		 2023
£		 2023
£
Fixed assets
Tangible fixed assets
9
Current assets
Debtors
10
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within
one year
11
Net current assets
Total assets less current liabilities
Creditors:amounts falling due after
more than one year
12
Net assets
The funds of the charity
Restricted funds
13
Unrestricted funds
. General fund
. Tangible fixed assets fund
14
Total funds
17

682,863
3,358,622		 1,692,660 722,348
4,662,072		 302,851
1,024,888 3,111,763
4,041,485
(3,016,597)		 5,384,420
(2,272,657)



2,717,548 3,414,614
(500,000) (800,000)
2,217,548 2,614,614
22,028
502,860
1,692,660		 22,028
2,289,735
302,851
2,217,548 2,614,614

Approved by the governors and signed on their behalf by:

Greg Dyke Chair of Governors

Approved on: 30 January 2025 London Film School Limited Company Limited by Guarantee Registration Number 01197026 (England and Wales)

London Film School Limited 20

Statement of cash flows Year to 31 August 2024

Notes
2024
£		 2023
£
Cash flows from operating activities:
Net cash provided by operating activities
A
Cash inflow from investing activities:
Investment income
Payments to acquire tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities:
Repayment of loan
Interest payable
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 September
B
Cash and cash equivalents at 31 August
B
479,352		 1,709,260
80,092
**(1,529,894) **		 47,182
(190,910)
**(1,449,802) ** (143,728)
(300,000)
(33,000)		 (300,000)
(42,000)
(333,000) (342,000)
(1,303,450)

4,662,072		 1,223,532
3,438,540

3,358,622		 4,662,072

Notes to the statement of cash flows for the year ended 31 August 2024

A Reconciliation of net movement in funds to net cash provided by operating activities

2024
£		 2023
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation
Investment income
Interest payable
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash inflow from operating activities		 (397,066)
140,084
(80,092)
33,000
39,485
743,941		 1,480,779
91,920
(47,182)
42,000
175,735
(33,992)
479,352 1,709,260

B Analysis of changes in net debt

Analysis of changes in net debt
2023
£’000
Cash flows
£’000
Non-cash flows
£’000		 2024
£’000
Cash at bank and in hand
CBILS loan < 1 year
CBILS loan > 1 year
Total net debt		 4,662,072 (1,303,450)
—
(300,000)
300,000
(300,000)
(800,000)
—
300,000		 3,358,622
(300,000)
(500,000)
3,562,072(1,003,450)
—		 2,558,622

London Film School Limited 21

Principal accounting policies Year to 31 August 2024

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 August 2024 and are presented in sterling and are rounded to the nearest pound.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102) second edition effective 1 January 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the Governors and management to make significant judgements and estimates.

The items in the financial statements where these judgements and estimates have been made include:

Assessment of going concern

The Governors have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Governors have made this assessment in respect to a period of one year from the date of approval of these financial statements.

In the course of preparing these accounts the Governing Body have had regard to the School’s financial forecasts, including a series of ‘reasonable worst case’ scenarios such as shortfalls in student recruitment, overruns in capital project costs, and delay or cancellation of the launch of new course offerings. The likely impact of inflation on running costs and knock-on effects of cost of living pressures on operational matters including pay, recruitment and retention have also been modelled.

London Film School Limited 22

Principal accounting policies Year to 31 August 2024

Assessment of going concern (continued)

Balanced against these downside pressures are improvements in several key aspects of the School’s operating environment. The award of World-Leading Specialist Provider status carries a significant funding commitment from the Office for Students. The move to Parker Street has been reviewed by the Relocation Committee on an ongoing basis though scenario modelling to ensure that the School has sufficient resources to meet its liabilities as they fall due. The outturn was an improvement on in-year forecasts and largely reflecting considerable improvements in financial control, monitoring and forecasting.

The Governing Body have concluded that there are no material uncertainties relating to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern.

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Income comprises grants and donations, tuition fees and charges, interest received and other income.

Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Income from charitable activities includes tuition fees and grants. The income is generally recognised in the period to which the fees or grants relate.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis and includes attributable VAT which cannot be recovered.

Expenditure comprises the costs of charitable activities including expenditure on the provision of education and associated support and governance costs.

London Film School Limited 23

Principal accounting policies Year to 31 August 2024

Assessment of going concern (continued)

Tangible fixed assets

All assets costing more than £2,000 and with an expected useful life exceeding one year are capitalised.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided to write off the cost less estimated residual value of each asset on a straight line basis over its expected useful life as follows:

Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt.

Financial instruments

The School only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the School and their measurement basis are as follows:

Financial assets – other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank – classified as a basic financial instrument and is measured at face value.

Financial liabilities – accruals and other creditors are financial instruments, and are measured at amortised cost.

London Film School Limited 24

Principal accounting policies Year to 31 August 2024

Pension costs

Contributions by the School in respect to a defined contribution pension scheme are charged to the statement of financial activities in the period in which they are payable.

Leased assets

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged on a straight-line basis over the lease term.

Fund structure

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

Designated funds comprise those resources which may be used towards meeting the charitable objectives of the School, but which have been set aside out of the general funds and designated for specific purposes by the Governors.

The tangible fixed assets fund comprises non-liquid funds represented by the net book value of tangible fixed assets.

The unrestricted general fund represents those monies which are freely available for application towards achieving any charitable purpose that falls within the School’s charitable objects.

London Film School Limited 25

Notes to the financial statements Year to 31 August 2024

1 Donations

Donations
Unrestricted
funds
£		 Restricted
funds
£		 Total
funds
2024
£
—
27
2024 Total funds: Donations
2023 Total funds:Donations		 — —
27 —

2 Income from charitable activities

Income from charitable activities
Unrestricted
funds
£		 Restricted
funds
£		 2024
Total
funds
£
Tuition fees and charges
Less: bursaries awarded
Grant income from the Office for Students
Grant income from Leverhulme Trust		 6,547,087
(82,160)		 —
—		 6,529,087
(82,160)
6,464,927
715,000
—		 —
4,744
78,963		 6,464,927
719,744
78,963
7,179,927 83,707 7,263,634
Unrestricted
funds
£		 Restricted
funds
£		 2023
Total
funds
£
Tuition fees and charges
Less: bursaries awarded
Grant income from the Office for Students
Grant income from Leverhulme Trust		 6,392,063
(59,426)		 —
—		 6,392,063
(59,426)
6,332,637
1,443,912
-		 —
21,724
45,882		 6,332,637
1,465,636
45,882
7,776,549 67,606 7,844,155

During the year ended 31 August 2024, 4 (2023 – 4) students received a bursary to support their tuition fees. The amounts shown above include £3,051 (2023 - £13,544) directly from the School, in 2024, and £79,109 (2023 - £45,882) from funding received from the Leverhulme Trust.

London Film School Limited 26

Notes to the financial statements Year to 31 August 2024

3 Expenditure on raising funds

Expenditure on raising funds
Unrestricted
funds
£		 Restricted
funds
£		 2024
Total
funds
£
Staff costs
Total funds		 — — —
— — —
Unrestricted
funds
£		 Restricted
funds
£		 2023
Total
funds
£
Staff costs
Total funds		 14,157 — 14,157
14,157 — 14,157

4 Expenditure on charitable activities – provision of education

Unrestricted
funds
£		 Restricted
funds
£		 2024
Total
funds
£
Direct costs
. Staff costs
. Visiting lecturers
. Premises
. Production allowances and costs
. Repairs and technical maintenance
. Depreciation
. IT costs
. Marketing costs
. Other costs
.Studio & space hire
Support costs
. Staff costs
. Legal and professional
. Other costs
. Interest Payable
. Governance costs (note 5)
2024 Total funds		 2,373,381
519,186
476,699
461,642
217,231
138,533
237,786
68,826
565,837
853,388		 26,571
5,812
5,337
5,168
2,432
1,551
—
—
6,335
9,554		 2,399,952
524,998
482,036
466,810
219,663
140,084
237,786
68,826
572,172
862,942
5,912,509 62,760 5,975,269
1,171,130
269,142
329,181
33,000
68,576		 13,112
890
3,685
—
3,260		 1,184,242
270,032
332,866
33,000
71,836
1,871,029 20,947 1,891,976
7,783,538 83,707 7,867,245

London Film School Limited 27

Notes to the financial statements Year to 31 August 2024

4 Expenditure on charitable activities – provision of education (continued)

Unrestricted
funds
£		 Restricted
funds
£		 2023
Total
funds
£
Direct costs
. Staff costs
. Visiting lecturers
. Premises
. Production allowances and costs
. Repairs and technical maintenance
. Depreciation
. IT costs
. Marketing costs
. Other costs
. Studio & space hire
Support costs
. Staff costs
. Legal and professional
. Other costs
. Interest Payable
. Governance costs (note 5)
2023 Total funds		 2,060,615
478,775
522,717
471,139
91,279
91,121
175,234
56,391
385,967
166,305		 26,722
6,209
4,435
6,623
925
799
—
—
3,616
1,677		 2,087,337
484,984
527,152
477,762
92,204
91,920
175,234
56,391
389,583
167,982
4,499,543 51,006 4,550,549
1,011,699
559,695
195,613
42,000
85,237		 8,768
502
3,910
—
1,798		 1,020,467
560,197
199,523
42,000
87,035
1,894,244 14,978 1,909,222
6,393,787 65,984 6,459,771

5 Governance costs

Governance costs
Unrestricted
funds
£		 Restricted
funds
£		 2024
Total
funds
£
Audit and advisory fees
Other professional costs
2024 Total funds		 26,584
41,992		 453
2,807		 27,037
44,799
68,576 3,260 71,836
Unrestricted
funds
£		 Restricted
funds
£		 2023
Total
funds
£
Audit and advisory fees
Other professional costs
2023 Total funds		 23,424
61,813		 1,296
502		 24,720
62,315
85,237 1,798 87,035

London Film School Limited 28

Notes to the financial statements Year to 31 August 2024

6 Net movement in funds

This is stated after charging:

Depreciation – owned assets
Operating lease rentals – Land and buildings
Operating lease rentals – Equipment hire
Auditor’s remuneration (including VAT)
. Statutory audit
. Other services
Staff costs (including visiting lecturers) (note 7)		 2024
£		 2023
£
140,084
148,727
245,953
28,200
3,960
4,109,190		 91,920
338,097
101,783
21,500
3,000
3,606,945
7 Staff costs 2024
£
2,826,614
370,608
302,857
84,113
3,584,192		 2023
£
Wages and salaries
Other staff costs
Social security costs
Pension costs		 2,567,224
217,291
273,727
63,719
3,121,961

In addition to the staff costs disclosed above, the amount paid to visiting lecturers used by the School in year was £524,998 (2023 – £484,984).

During the year, termination payments of £114,989 (2023: £34,630) were made.

The average number of employees, excluding visiting lecturers and temporary staff, during the year was as follows:

2024
Number		 2023
Number
Provision of education
. Academic staff
. Support staff		 39
18		 42
22
57 64

London Film School Limited 29

Notes to the financial statements Year to 31 August 2024

7 Staff costs (continued)

The number of employees who earned £60,000 per annum or more (including taxable benefits but excluding employer pension contributions) during the year was as follows:

2024
Number		 2023
Number
£60-001 - £65,000
£65,001 - £70,000
£75,001 - £80,000
£80,001 - £85,000
£90,001 - £95,000
£95,001 - £100,000
£105,001 - £110,000
£120,001 - £125,000		 3
2
—
—
—
1
1
1		 4
—
1
1
1
—
—
—
8 7

The key management personnel of the charity in charge of directing and controlling, running and operating the charity comprise the governors and the Management Team as detailed on page 1. The total remuneration (including taxable benefits and employer's pension contributions) of the key management personnel for the year was £1,093,077 (2023 – £848,662).

During the year, staff governors received remuneration only in relation to their roles as staff members. No member(s) of the governing body received any remuneration in respect of their services as governors during the year (2023 – £nil).

No expenses were reimbursed to the governing body members during the year (2023 - £nil).

Remuneration of Director and Chief Executive Officer
CEO to 5 Nov
2023 £
CEO to 31
Aug 2024
£
Basic salary
39,693
106,833
Bonus
—
—
Pension contribution
440
—
Compensation for loss of office
—
—
40,133
106,833		 Remuneration of Director and Chief Executive Officer
CEO to 5 Nov
2023 £
CEO to 31
Aug 2024
£
Basic salary
39,693
106,833
Bonus
—
—
Pension contribution
440
—
Compensation for loss of office
—
—
40,133
106,833		 2024
£
146,526
—
440
—
146,966		 2023
£
Basic salary
Bonus
Pension contribution
Compensation for loss of office		 114,518
—
1,452
—
40,133 115,970

The remuneration package of senior members of staff, including the Director and Chief Executive Officer, is subject to review by the Remuneration Committee who use benchmarking information to provide objective guidance.

The Director and Chief Executive Officer reports to the Chair of the Board, who undertakes an annual review of his performance against the School’s overall objectives using both qualitative and quantitative measures of performance.

London Film School Limited 30

Notes to the financial statements Year to 31 August 2024

2024
£		 2023
£
Chief Executive’s basic salary as a multiple of the median of all staff
Chief Executive’s total remuneration as a multiple of the median of all staff		 3.68
3.69		 3.08
3.12

During 2023/24 the previous Chief Executive Officer left the School on 5 November, 2023 and the presiding Chief Executive Officer joined the School on 6 November, 2023 on a full-time basis.

8 Taxation

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

9 Tangible fixed assets

angible fixed assets
Leasehold
Premises in
Course of
Construction
£
—
401,753
—		 Cinema
equipment
£		 Fixtures,
fittings and
computer
equipment
£		 Total
£
Cost
At 1 September 2023
Additions
Disposals
At 31 August 2024
Depreciation
At 1 September 2023
Charge for the year
Disposals
At 31 August 2024
Net book values
At 31 August 2023
At 31 August 2024		 469,930
311,150
(52,299)		 131,874
816,991
(6,203)		 601,804
1,529,894
(58,502)
401,753 728,781 942,662 2,073,196
—
—
—		 247,933
92,476
(52,299)		 51,020
47,608
(6,202)		 298,953
140,084
(58,501)
— 288,110 92,426 380,536
— 221,997 80,854 302,851
401,753 440,671 850,236 1,692,660

10 Debtors

Debtors
2024
£		 2023
£
Trade debtors
Other debtors
Prepayments and accrued income		 62,792
57,733
562,338		 109,863
75,243
537,242
682,863 722,348

London Film School Limited 31

Notes to the financial statements Year to 31 August 2024

11 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income
Sundry creditors
CBILS Loan (see note 12)		 2024
£		 2023
£
657,855
1,653,594
405,148
300,000		 312,884
1,145,452
514,321
300,000
3,016,597 2,272,657
2024
£		 2023
£
Deferred income at 1 September
Released during the year
Resources deferred in the year
Deferred income at 31 August		 853,308
(853,308)
963,159		 1,259,412
(1,259,412)
853,308
963,159 853,308

Deferred income consists principally of fee income received in advance.

12 Creditors: amounts falling due in more than one year

Creditors: amounts falling due in more than one year
2024
£		 2023
£
CBILS Loan 500,000 800,000
Maturity of debt 2024
£		 2023
£
CBILS loan repayable within one year
CBILS loan repayable between one and two years
CBILS loan repayable between two and five years		 300,000
300,000
200,000		 300,000
300,000
500,000
800,000 1,100,000

The CBILS loan was drawn down in full in April 2021 with a fixed interest rate of 2.42% above the base rate per annum. The first year is interest and repayment free; the balance is then to be repaid over five years at £25,000 per month plus interest from May 2022. The bank has a debenture charge over the property and undertakings of the company.

London Film School Limited 32

Notes to the financial statements Year to 31 August 2024

13 Restricted funds

The income funds of the School include restricted funds comprising the following unexpended balances of grants and donations to be applied for specific purposes.

At 1
September
2023
£		 Income
£		 Expenditure
£		 Transfer
between
funds
£		 At 31
August
2024
£
Office for Students
Skillset Academy Fund
Adam Sedgwick Award
Leverhulme fund		 —
5,692
5,010
11,326		 4,744
—
—
78,963		 (4,744)
—
—
(78,963)		 —
—
—
—		 —
5,692
5,010
11,326
22,028 83,707 (83,707) — 22,028
At 1
September
2022
£		 Income
£		 Expenditure
£		 Transfer
between
funds
£		 At 31
August
2023
£
Office for Students
Skillset Academy Fund
Adam Sedgwick Award
Leverhulme fund		 —
5,692
5,010
9,704		 21,724
—
—
45,882		 (21,724)
—
—
(44,260)		 —
—
—
—		 —
5,692
5,010
11,326
20,406 67,606 (65,984) — 22,028

Office for Students fund

The Office for Students fund is restricted to supporting teaching through spend related to the delivery of course costs.

Skillset Academy fund

The Skillset Academy fund is restricted to the funding of bursaries for the Skillset Screen Academy Project, specific new teaching and associated overheads.

Adam Sedgwick Award

The Adam Sedgwick Award is restricted to the funding of a grant to help a graduating student after the completion of the course.

Leverhulme fund

The Leverhulme Trust has donated to this fund which is dedicated to applicants of high academic standard who could not otherwise continue their studies throughout the academic year and beyond without funding assistance.

London Film School Limited 33

Notes to the financial statements Year to 31 August 2024

14 Tangible fixed assets fund

2024
£		 2023
£
At 1 September
Net movements in year
At 31 August		 302,851
1,389,809		 203,861
98,990
1,692,660 302,851

The tangible fixed assets fund represents the net book value of the School’s fixed assets. A decision was made to separate this fund from the other unrestricted funds of the School in recognition of the fact that the tangible fixed assets are essential to the day-to-day operation of the School. The fund value, therefore, cannot be easily realised without jeopardising the ongoing operation of the School.

15 Operating lease commitments

At 31 August the School had the following future minimum commitments under noncancellable operating leases:

Equipment Equipment Land and buildings Land and buildings
2024 2023 2024
£		 2023
£
£ £
Operating lease payable:
Within one year		 — — 89,400 89,400
- — 89,400 89,400

The lease renewals for both properties occupied by the School are in place including clauses which allow the School a break option subject to giving six months’ notice. This will enable a move to new premises once the development project is complete.

16 Related and connected parties disclosure

The School paid £840 to a supplier for services provided during the year ended 31 August 2024 (2023:£nil). The supplier is the partner of a Governor.

Note 7 details no further disclosures.

17 Analysis of Net Assets Between Funds

2024
Unrestricted Restricted Total
funds funds funds
£ £ £
Fixed Assets 1,692,660 - 1,692,660
Net current assets 1,002,860 22,028 1,024,888
Long term liabilities (500,000) - (500,000)
2024 Total 2,195,520 22,028 2,217,548

London Film School Limited 34

Notes to the financial statements Year to 31 August 2024

17 Analysis of Net Assets Between Funds (continued)

Unrestricted
funds
£		 Restricted
funds
£		 2023
Total
funds
£
Fixed Assets
Net current assets
Long term liabilities
2023 Total		 302,851
3,089,735
(800,000)		 -
22,028
-		 302,851
3,111,763
(800,000)
2,592,586 22,028 2,614,614

London Film School Limited 35