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2024-08-31-accounts

THE ARTS EDUCATIONAL SCHOOLS

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

Company Number: 00712444 Registered Charity Number: 311087

THE ARTS EDUCATIONAL SCHOOLS REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

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CONTENTS Page
Patrons, Governors, Officers and Advisors 1
Trustees9 report 3
Statement of corporate governance & internal control 22
Independent auditor9s report 24
Statement of financial activities 27
Balance sheet 28
Cash flow statement 29
Notes to the financial statements 30

THE ARTS EDUCATIONAL SCHOOLS PATRONS, GOVERNORS, OFFICERS AND ADVISORS FOR THE YEAR ENDED 31 AUGUST 2024

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President Lord Lloyd-Webber
Vice Presidents Robert Powell
David Grindrod
Sharon D Clarke
Patrons and Artistic Creatives Don Black, OBE Mary King
Sir Matthew Bourne, OBE Nigel Lilley
John Brant Lynette Linton
Chrissie Cartwright Robert Lindsay
Anthony Cherry Lesley Manville
Bill Deamer Stephen Mear
Janie Dee Sir Trevor Nunn
Mike Dixon Arlene Phillips
Anthony Drew Mark Shenton
Nigel Havers George Stiles
David Howe Ian Talbot
Rachel Kavanaugh Roy Williams

The Governors and Trustees Brian Brodie (resigned 22 December 2023) Joanna MacDonnell Ann Cottis Farida Mannan Stephen Denyer Robert Mathieson Cherry Dickins Ruth Mundy Simon Dowson-Collins (resigned 14 December 2023) Julie Spencer (resigned 8 July 2024) Benjamin Gudgeon Jennifer Wilkinson (resigned 23 November 2023) Brenlen Jinkens (resigned 3 December 2024)

Officers Principal Julie Spencer (resigned 8 July 2024) Since 9 July the institution has been led by an Interim Executive Leadership Team comprising of Alexander Gillespie (Finance Director), Jonathan O9Boyle (Director of the School of Musical Theatre) and Peter Middleton (Interim Head Teacher) Company Secretary Alexander Gillespie Registered office Cone Ripman House 14 Bath Road London W4 1LY Website: www.artsed.co.uk

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THE ARTS EDUCATIONAL SCHOOLS PATRONS, GOVERNORS, OFFICERS AND ADVISORS FOR THE YEAR ENDED 31 AUGUST 2024

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Auditors HaysMac LLP
10 Queen Street Place
London
EC4R 1AG
Bankers Lloyds Bank Plc
St Mary9s Court
100 Lower Thames Street
London
EC3R 6HX
Insurance brokers Marsh Limited
Education Practice
Capital House
1-5 Perrymount Road
Haywards Heath
West Sussex
RH16 3SY

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THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT FOR THE YEAR ENDED 31 AUGUST 2024

REFERENCE AND ADMINISTRATIVE INFORMATION

The Arts Educational Schools (8the Trust9 or 8ArtsEd9) is a company limited by guarantee not having a share capital (company number 0712444) and is registered as a charity (registered charity number 311087). The Trustees and executive officers of the Charity are as listed on page 1. Particulars of the Trust9s registered office which is also the main place of business and details of the professional advisers are given on pages 1 and 2.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Trust is governed by its Memorandum of Association dating from 1962, Articles of Association last amended in 2023.

Method of Recruitment and Appointment of Trustees

The Trustees of the Charity are the Trust9s directors for the purposes of the Companies Act.

In accordance with the Articles, the Trustees of ArtsEd may recommend individuals to be appointed as new Trustees and the Members (i.e. those who are <Members= for the purposes of company law as set out in the Articles) can also nominate individuals. Candidates are interviewed, and if appropriate put forward for election by the Trustees. The new Trustees are then appointed at the Annual General Meeting. In practice the Board will encourage the Principal, and other connected parties to suggest the names of potential candidates.

The Board carries out regular reviews and skills audits to identify the appropriate mixture of skills and experience required to manage the multi-faceted affairs of ArtsEd which is also a registered charity, a company limited by guarantee, a medium sized business, and a local employer with over 200 employees.

We devote a good deal of thought to successor planning and keep a register and skills matrix of the mixture of skills and professional backgrounds represented on the Board. Our aim is to achieve a balanced Board with a core of individuals with educational, legal, accountancy, finance, property management, business, marketing and performing arts industry backgrounds. We review this balance regularly.

Our Articles specify that there should be a minimum of 5 and a maximum of 15 Trustees on our Board.

Trustees may serve up to three terms of three years and shall serve for no more than nine years. The current Trustees are:

Ann Cottis (appointed 2017) Re-elected April 2023
Stephen Denyer (appointed 2019) Re-elected June 2022
Cherry Dickins (appointed 2022) Elected July 2022
Benjamin Gudgeon (appointed 2022) Elected June 2022
Joanna MacDonnell (appointed 2022) Elected June 2022
Farida Mannan (appointed 2022) Elected June 2022
Robert Mathieson (appointed 2017) Re-elected April 2023
Ruth Mundy (appointed 2021) Re-elected January 2025

Policies and Procedures adopted for the induction and training of Trustees

All new Trustees are given a tour of the school and the chance to meet staff and students. All Trustees are provided with copies of the policies, procedures, minutes, accounts, budgets, plans, an induction pack and any other documents they need to undertake their role as Trustees. Trustees are encouraged to attend training courses and seminars arranged by the Association of Governing Bodies of Independent Schools (AGBIS) and

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THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

_______________ other professional providers, such as law and accountancy firms in order to reinforce their awareness of their varied duties and responsibilities. Trustees also receive mandatory training on Trustees9 Roles and Responsibilities, KCSIE and Prevent.

Organisational Management

The Trustees are legally responsible for the overall management and control of the Schools and meet at least three times a year. The day-to-day responsibilities are delegated to the Principal. The Board has six subcommittees which meet as follows:

All meetings of the Trustees are attended by the Principal together with other senior staff as may be required for that meeting. Specially convened meetings of staff and Trustees are arranged from time to time on topics of strategic interest. Trustees often attend performances and meetings with external partners.

Schools Structure

ArtsEd comprises the Day School (Day School for 11-16 and Sixth Form for 16-18), the School of Musical Theatre and the School of Acting. In addition, ArtsEd Extra offers provision to the local community. These departments are supported by the Finance, Facilities, HR, Production, Academic Management, Communication and Development teams and other administrative and support services.

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THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

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Senior Leadership Board

The Senior Leadership Board for the year ended 31 August 2024 comprised:

Julie Spencer, Principal (resigned 8 July 2024) Yewande Akindele, Deputy Principal (resigned 2 February 2024) Anthony Campbell, Head of HR (resigned 24 May 2024) Frank Daniel, Head of Facilities Fela George, Interim Head of HR (appointed 15 July 2024) Alexander Gillespie, Finance Director Peter Middleton, Interim Headteacher (appointed 1 September 2023) Jonathan O9Boyle, Director 3 School of Musical Theatre Kim Vithana, Director 3 School of Acting

Following the resignation of the Principal the Board of Trustees appointed an Interim Executive Leadership Team consisting of the Finance Director, The Director of the School of Musical Theatre and the Interim Headteacher. It is expected that the Interim Executive Leadership Team will remain in situ until the point that a new Principal is appointed. The Executive Leadership Team were initially appointed in November 2023 as the External Investigation began and the Principal was on extended sick leave.

Pay Policy for Senior Staff

The Trustees consider that they, together with the Senior Leadership Board, comprise the Key Management Personnel. The Trustees give of their time freely. Annual salary increases for all staff are approved by the Trustees. The pay and remuneration of the Principal and senior staff is kept under annual review. Criteria used in setting pay includes:

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable Objects

The objects for which the Trust is established are to promote the advancement of education and in connection therewith in particular to acquire, establish, provide, conduct, and carry on residential and non-residential schools in which children and students may receive a general education in conjunction with a specialised education for students desiring to follow a career in or connected with the performing arts.

Aims and intended impact

ArtsEd9s aim is to provide a first-class education through strong vocational and general education and through developing wider artistic and social skills in all its pupils and students. Each pupil or student is encouraged to develop and fulfill his or her potential, promoting self-confidence and desire to contribute to the wider community.

Objectives and Activities

ArtsEd9s mission is to deliver successful and fulfilling careers for all our students and staff. This mission is at the core of all decision making and ensures that students and staff are central to strategic planning.

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THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Strategic Aims

Key Strategic Objectives

PUBLIC BENEFIT

The Trust provides a public benefit by providing first class independent education and vocational training, both through strong teaching and through developing wider artistic and social skills in all its pupils and students. This is intended to provide an environment where each student can develop and fulfil his or her potential, thus to help build self-confidence and inculcate a desire to contribute to the wider community.

Grants and bursaries, provided by the Trust, enable those who cannot afford to pay the full fees, to benefit from an ArtsEd education. Students are also able to apply for the Dance and Drama Award (DaDA) scheme which is provided by the Education and Skills Funding Agency. This allows the most talented students from a broad range of backgrounds to benefit from the training which ArtsEd offers.

The school encourages the local community to hire the Andrew Lloyd Webber Foundation theatre and other spaces for their own activities.

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THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

In addition to the above, ArtsEd undertook the following activities:

The Trustees have given consideration to the Charity Commission9s general guidance on public benefit, and in particular to its supplementary public benefit guidance on advancing education, and have concluded:

REGULATORY COMPLIANCE

A number of allegations were raised last year about bullying and favouritism at ArtsEd. Given the nature of the allegations and the number of complaints, as well as the public attention, the Board decided that an independent investigation was necessary. In order to ensure a fair, thorough and impartial investigation, the Board appointed an experienced barrister: Ms Ghazaleh Rezaie of 12 Kings Bench Walk Chambers.

The purpose of the investigation was to enable the Board to understand the basis of the allegations and the nature and extent of any alleged misconduct at ArtsEd. The Terms of Reference for Ms Rezaie9s investigation were published on the ArtsEd website. Ms Rezaie completed her report and sent it to the Board on the evening of 28 June 2024.

The Board of Trustees would like to thank all of the participants who came forward to give evidence to Ms Rezaie. We acknowledge that this has been a challenging, and at times an emotional, process for those involved. As can be seen in the Public Statement, the Principal was not able to participate fully in the investigation for health reasons. The Board extended the investigation on two occasions but then asked Ms Rezaie to produce a report by 28 June 2024 on the basis of her conclusions to that date.

As anticipated in the Terms of Reference, the full report contains confidential information about individuals who were interviewed. Therefore, the full report will not be published. However, the Terms of Reference requested that Ms Rezaie draft a Public Statement 3 being a summary of the conclusions from her Report capable of being published without contravening data protection law. That Public Statement has now been published on the ArtsEd website.

One of Ms Rezaie9s main findings was that the professional relationship between the Principal and current employees has been damaged beyond repair. The Principal has considered this finding and decided to step down from her role as Principal and as a Trustee in the interests of her health.

The Public Statement makes it clear that not all allegations were substantiated but a number of allegations were, in Ms Rezaie9s opinion, suitable for referral to a disciplinary process for further examination. We take these allegations very seriously. The Board is assessing the lessons which must be learned and changes which must be made. The latter will be carried out in consultation with the senior leadership at ArtsEd, which will include input into the next steps towards the recruitment of a new Principal.

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THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

At ArtsEd we are committed to a culture of inclusivity and transparency. The Board of Trustees will ensure that robust procedures and processes that create a safe environment for all of ArtsEd9s students and staff are embedded throughout the whole institution.

In March 2022 an external governance adviser completed a review of the Trust9s governance. The outcome of this review has had a profound effect on our operations. A 12-month action plan to address the recommendations from this review was subsequently approved by the Trustees, which focussed on 10 key themes:

  1. Articles of Association

  2. Membership of Committees

  3. Annual Assurance

  4. Governance and Management

  5. Committee Administration

  6. Mapping Governance and Regulatory Codes and guidance

  7. Committee Structure Review

  8. Development and Training

  9. Review

  10. Resources

A large amount of work was undertaken between 2022-2024 and the Trustees can confirm that all outstanding matters from the action plan were addressed during 2023/24.

During 2023/24 there were a number of successes, including:

  1. In Autumn 2023 ArtsEd was awarded Gold in the Teaching Excellent Framework, confirming our Higher Education provision is of the highest quality and recognised as sector leading

  2. In mid-November 2023 ArtsEd was inspected by Ofsted regarding our Higher Education provision and we are extremely pleased to announce we have been awarded 8Outstanding9 in all areas once again

  3. At the end of March 2024, ArtsEd Day School and Sixth Form were inspected by the Independent Schools Inspectorate (ISI) as part of their routine cycle of school inspections. This latest inspection took place under the new framework that was introduced in September 2023. There is no 8overall judgment9 of the school 3 ISI have removed single word judgments. However, they are permitted to identify key areas of Significant Strength in a school. It is a label applied only where a school does something truly exceptional and with impact across the whole student body; the bar is set incredibly high. Performing Arts was noted as an area of Significant Strength. The inspectors confirmed that appropriate standards had been met in all areas of the organisation.

  4. The National Student Survey undertaken in the year showed that ArtsEd is a leading institution in relation to student satisfaction.

  5. No student complaints were raised with the Office of the Independent Adjudicator in the period.

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THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

STRATEGIC REPORT

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR Student and Pupil numbers

2023/2024 2022/2023
Applications received
Musical theatre (3 year BA) 1,241 1,529
Acting (3 year BA) 830 937
Acting (1 year MA) 212 293
Applicants auditioned
Musical theatre (3 year BA) 1,023 1,110
Acting (3 year BA) 300 674
Acting (1 year MA) 120 200
New student intake
Musical theatre (3 year BA) 53 50
Acting (3 year BA) 34 34
Acting (1 year MA) 29 27
Total students (at year end)
Musical theatre 170 185
Acting 151 150
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Total 321 335
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Pupils (including <A= Level)
Applications 317 307
Offers 179 189
Acceptances 106 102
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Total number of pupils at year end 286 296

ArtsEd continues to maintain high standards across its range of activities and to sustain stable pupil and student numbers and these are more fully described for each of the schools below.

The Trustees would like to thank all staff members for the continuing success of ArtsEd, for achieving such excellent academic results and for the continued stability in the financial results.

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THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

DAY SCHOOL AND SIXTH FORM

At ArtsEd, we believe that students, and their parents, should be given the assurance that they will achieve to the very best of their potential. At ArtsEd this is achieved in both the academic and vocational aspects of the 8ArtsEd Curriculum9 through the excellence of teaching and learning; fundamentally, this is set within an environment where pastoral care is at its heart and that is inclusive, nurturing and enables all our students to thrive.

This is reflected in our strong academic results that show significant added value throughout each student9s journey at the School. There are small class sizes which enable us to know the individual student and develop highly productive working relationships between students and teachers. We are an academically non-selective school with a collaborative ethos that instils a sense of self-belief in our students which, when combined with the very significant levels of personal development, undoubtedly create the foundations for their academic success.

This ethos within our school, coupled with small cohort sizes (number of students in Year 11: GCSE - 29; Year 13: A level - 11 and BTEC - 64), means that ArtsEd has a much small number of candidates sitting GCSE and A levels than most other independent schools; we also have a much wider spread of talent and ability. Consequently, it is inevitable that there will be fluctuations in the overall results of different cohorts; combined year group outcomes do not show the programmes of personalised support for individual students, nor do they reflect the significant progress made by them.

The results at ArtsEd reflect the quality of teaching and learning, the ability of our students and their commitment to achieving their best throughout the time they are with us. At the heart of supporting the successes this year is our unique 8ArtsEd Curriculum9 3 where vocational training of the highest quality is rooted and integrated within the academic programme. This was recognised by the Independent Schools Inspectorate in the most recent inspection, when they awarded the School the highest accolade 3 an area of significant strength:

8The standards that pupils achieve in performing arts, in line with the school9s expressed aims, are a significant strength of the school.9

ISI Inspection Report 2024

8Leaders plan a curriculum through which pupils study a wide range of academic and vocational subjects. Pupils develop linguistic, mathematical, scientific and technological skills. Leaders strategically plan ahead and adapt their curriculum in the light of the changing demands of the world of performing arts.9

ISI Inspection Report 2024

Year 13 Results

Our Sixth Form students can take one of three different pathways: A levels, BTEC, or uniquely a combination of both. Those on the A level pathway usually start with up to 4 A levels. This year, the majority of students studied the BTEC pathway, which is the BTEC Level 3 Extended Diploma in Performing Arts Practice (Acting/Musical Theatre/Dance) and is the equivalent of 3 A levels; in addition, a significant number of these BTEC students also chose to study 1 or 2 A levels.

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THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

This year9s Year 13 produced some outstanding results.

2024
A level and BTEC combined %
A*- A 68
A*- B 88
A*- C 98

There were some excellent A level outcomes with 95% of grades awarded at A-C (83% last year). There were some outstanding results, including a number of students who achieved at least one A.

2024
A level only%
A*- A 27
A*- B 71
A*- C 95

The BTEC Level 3 Extended Diploma has three main specialisms in the Performing Arts: Acting, Dance and Musical Theatre. There were some outstanding results in these vocational courses, where Distinction (D) is the equivalent to an A at A level; Distinction (D) is an A grade; Merit (M) is a B grade. 69% of students achieved DDD (A level equivalent of 3 A* grades), 94% achieved DDD or better (equivalent to AAA at A level), and all our BTEC students achieved at least DDM (AAB):

BTEC Result A
Level
equivalent
grades		 2024
BTEC only%
DDD* AAA* 69
DDD - DD*D AAA- AA*A 77
DDD - DD D AAA- AA A 85
DDD* - D D D AAA*- A A A 90
DDM AAB 100

Year 11 Results

In a year when ArtsEd had its largest number of GCSE entries, 100% of Year 11 students achieved 9-4 in Maths and in one English GCSE 98% of results were graded 9-4 (up 2% on 2019), and the percentage of grades 9-7 was 46% (up 3% on 2019). These results are extremely impressive - not only are they an improvement on 2023, but crucially they exceed the excellent pre-pandemic results of 2019, which were the School9s best results since GCSEs were reformed.

All GCSEs 2024 %
9 - 7 46
9 - 4 98
Maths & English GCSE 2024 %
Maths 9 - 4 100
English(combined)9 - 4 99

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THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Destinations post Year 13

All our Year 13 students, who applied, achieved a place at their university of first choice, conservatoire, or institution of further training. This is a multi-talented year group, and many are now going on to leading institutions both in the UK and abroad and these are listed below; a number of students have gone straight into the performing arts industry:

Further training courses include:

University courses include:

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THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

POST-18 PROVISION

As one of the UK9s leading centres of conservatoire education, ArtsEd is proud of its reputation as a provider of world-class, contemporary training. Our Musical Theatre course is consistently recognised as the best in the UK, and one of only a handful which can genuinely claim to produce 8triple threat9 performers. Our 3-year Acting course is leading the way in delivering a robust, inclusive, skills-based actor training, focusing on new thinking in response to the rapidly evolving world of the arts and culture.

Based on a range of evidence, including graduate destinations, external reports, feedback from students and industry professionals, annual evaluation, and internal self-assessment, we believe our overall effectiveness to be outstanding. We report a variety of statistical data to the Higher Education Statistics Agency (HESA) including for the Destination of Leavers from Higher Education survey, which calculated that 100% of our graduates go on to work or further study.

Our graduate destinations are outstanding. Each year ArtsEd graduates can be seen performing in commercial theatres in the West End and on tour, as well as appearing in television dramas and feature films.

A number of regulatory, accrediting and validating bodies have oversight of our provision (both HE and FE), and reports from these provide assurance of the quality and relevance of our provision:

We can therefore be confident that our content and our curricula remain relevant, the standards of teaching and learning remain very high, with high expectations for what all learners can achieve, and that our education and training provides each student with the best possible preparation for a successful and fulfilling career.

The school continues to attract highly skilled and expert practitioners with a wealth of relevant subject knowledge to teach at ArtsEd, both as regular tutors and visiting creatives. In Year 1 the majority of teaching is undertaken by core in-house staff to encourage confidence, generosity to the ensemble, and to allow students the time and support to develop a broad range of technical skills before testing them against industry standards. As the courses progress, through projects, public productions and professional practice modules, students are introduced to a wide range of practitioners, directors and creatives, including leaders in their field as well as emerging artists. The experience of working with these people develops students9 skills and confidence and allows them to build up a broad portfolio of professional contacts in preparation for entry to the industry. This combination of rigorous technical training from in-house staff, and the experience of working with a huge variety of industry professionals, is a key strength of teaching and learning at ArtsEd.

ArtsEd is noted in the industry for our success in attracting and retaining a particularly diverse student body, over one third of our students come from Black, East Asian, South Asian, and other under-represented Ethnic groups. We continue to address under-representation and lack of diversity in UK drama schools in our student population, permanent staffing and the creative practitioners we bring in to work with us. We are committed to maintaining our strength in this area, improving diversity of all kinds over the coming years.

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THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Our commitment to inclusivity is apparent in a warm and welcoming environment, with a strong attention on the development of the individual. The pastoral care that is a core aspect of our provision is rooted in the expertise of our staff and is driven by the belief that a person9s wellbeing is core to their success. Training is undertaken each year to update and allow us to critically reflect on our provision and practices. Extensive performance experience gives staff an understanding of the rigours and demands of the industry and the ability to inspire resilience alongside expertise. This is an essential element in creating graduates who are confident, resourceful and committed performers, well prepared to enrich and influence the creative industries in the UK and beyond.

Diversity statistics

In September 2024 the BA School of Acting recorded an intake of 42% Black, East Asian, South Asian, and other under-represented Ethnic groups. The BA School of Musical Theatre recorded an intake of 19%. Overall, 25% of the new intake of students (all courses) are Black, East Asian, South Asian, and other under-represented Ethnic groups. It is an ongoing target to maintain and improve equality, inclusivity and diversity, and efforts are made at audition to recruit students from a diverse range of backgrounds and support them to succeed at the highest levels. We continue to explore how we can influence the intake in Musical Theatre, through targeted outreach and marketing strategies. Our commitment to diversity continues to be reflected in our efforts to attract talented students from a range of backgrounds to our post-18 courses.

New intake

% Black, East Asian, South Asian, and other under-represented Ethnic groups. 2024-25 25% 2023-24 26% 2022-23 29% 2021-22 41% 2020-21 30% 2019-20 37% 2018-19 29% 2017-18 23% 2016-17 21% 2015-16 20% 2014-15 18%

Wellbeing and Pastoral Care

The challenge of supporting the growing number of pupils and students with mental health is one faced by all education and training providers. Trustees are committed to supporting initiatives for continual improvement in pastoral care in support services and the promotion of wellbeing for all our students and staff. The HE Registry Team have a centralised Student Support Team in place who support our students through a range of support mechanisms and procedures such as a new Personal Tutoring System and revised Attendance Policy. ArtsEd also offer on-site external Counselling Service to all students and confidential external online support is available to both staff and students through Togetherall.com. We are committed to ensuring the effectiveness of our support systems for students and ensuring students are supported during their time at ArtsEd.

School of Musical Theatre

ArtsEd9s Musical Theatre (<MT=) department is regarded as the premier Musical Theatre school in the country and Europe, and one of only a handful which can genuinely claim a 8triple threat9 training. The training is rigorous and robust. All our Graduate shows for 23/24 were in person with sold out audiences at our Andrew Lloyd Webber Foundation Theatre. For the fourth year running the MT showcase was filmed as showreels directed by Jonathan O9Boyle, who is the Director of the School of Musical Theatre.

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THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Employability

Students continue to be well prepared for employment, both in the development of the key skills necessary for work in the profession, and in the development of understanding about the industry. They take part in regular mock and preview interviews and auditions, and the requirement to audition for roles in their final year productions and films gives students a real sense of what to expect when seeking professional work. Students benefit from an extensive programme of professional practice and industry talks from agents, casting directors and actors on a range of subjects including how to start their own theatre company, how to manage their finances and taxes, how to develop their own work for television, how to market themselves and understanding their individual casting potential. These industry guests frequently cast and audition the students for professional productions.

Similarly , the policy of bringing West End casting directors to audition BA Musical Theatre whilst still in training continues to be highly successful and will continue for the forthcoming year. This year we have invited five leading casting directors to attend our casting director days.

Graduate Success

We have several further students up for awards at the Black British Theatre Awards:

Recent graduate Sedona Sky has been nominated for a Black British Theatre Award for Best Graduate in Heathers .

Marley Fenton is nominated for Best Supporting Male Actor in a Musical for his work in The Wizard of Oz at the Norwich Theatre Royal.

Rhianne-Louise McCaulsky is nominated for Best Female Lead Actor in a Musical for her work in Cruel Intentions The Musical at The Other Palace.

Ashley Campbell is nominated for Best Supporting Male Actor in a Musical for his work in Cabaret at the Kit Kat Club at the Playhouse Theatre.

2023/24 - July 2024 Graduates

51 students graduated in 2024.

51 students 3 100% 3 secured an agent before graduation.

EMPLOYMENT

As of 23 September 2024, 30 students secured employment within the first three months of graduating ArtsEd.

That is 59% of students gaining employment within the first 3 months after graduating. A 4% increase on 2022/23.

Recent graduate destinations include West End Musicals: The Wizard of Oz , Mamma Mia, Book of Mormon, Your Lie In April, Starlight Express, Fangirls, Babies The Musical, Marie Curie, A Face in the Crowd, Les Miserables, and Cabaret.

Regional theatre including: Singin9 In The Rain at Kilworth House, Becoming Nancy at Birmingham Rep.

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THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

UK Tours including: Wizard of Oz, Grease, Only Fools and Horses: The Musical.

As well as International and European tours, including The Bodyguard, Cats, Les Misérables World Tour and Hello Dolly!, and further engagements (concerts and new writing workshops).

The ArtsEd Choir participated in the Olivier Awards 2024 at the Royal Albert Hall, and the 50[th] Anniversary concert of Pippin at Theatre Royal Drury Lane.

- 2022/23 July 2023 Graduates

58 students graduated in 2023.

58 students 3 100% 3 secured an agent before graduation.

EMPLOYMENT

As of 27 September 2023, 33 students secured employment within the first three months of graduating ArtsEd.

That is 55% of students gaining employment within the first 3 months after graduating.

Destinations include West End Musicals: Old Friends: Stephen Sondheim Concert, The Wizard of Oz , Mamma Mia, Moulin Rouge, Tina: The Musical, Back To The Future, Les Miserables, Grease, Pretty Woman and Cabaret.

Regional theatre including: Assassins and Rock Follies at Chichester Festival Theatre, Evita at Curve Leicester, Roman Holiday at Bath Theatre Royal, Hairspray at Kilworth House.

UK Tours including: Hamilton, Wizard of Oz, Wicked, Madagascar The Musical, Jesus Christ Superstar, Pretty Woman.

As well as International and European tours, including The Phantom of the Opera and Love Never Dies , and further engagements (concerts and new writing workshops).

Olivier Awards 2023 3 The ArtsEd Choir at the Royal Albert Hall.

School of Acting

The School of Acting is one of the most diverse schools in the sector, from both a student and teacher stance. Its reputation has grown substantially. By culturally diversifying the curriculum, pedagogical approach and operational structures it has seen a meaningful cultural shift which has impacted positively on the wellbeing of both students and staff. This is highlighted in the number of student applications, yet again, at the end of the 2023/24 audition cycle. We offer an inclusive, diverse contemporary industry-facing programme, an exciting alternative to the traditional model of classical theatre training. The BA Acting course was the first to introduce intimacy training and British Sign Language embedded within the 1st Year curriculum, these strands are further developing to ensure that they weave through all three year9s training including 3rd year show support. We continue to develop cross curriculum and co teaching to enhance student experience and our TV Film delivery has been noted by screen industry professionals as the best drama school training provision. This is evidenced in the continued success of the Original Screenplays 2023 ' Prompt Date ' which has won Best Short Film 2023 at the Vlaardings Film Festival (Netherlands), ' 21st Century Séance' which was selected and now nominated at Grindhouse Nights Film Festival 3 New Jersey, USA and ' Ocras' which has an Official Selection at the 29th International Festival of Golden Beggar 3 Slovakia. This again highlights the exceptional training and opportunities offered to our BA Acting Students.

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THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Our commitment to forward-thinking training has also been formally recognised this year, in re-accreditation from CDMT and ArtsEd being awarded 'Gold ' for TEF ' Teaching Excellence Framework ', by delivering excellence in areas that students care most about: teaching, learning and achieving positive outcomes from their studies. This outcome noted the student submission as one of the best submitted.

Employability

ArtsEd facilitates a robust practical creative environment to facilitate students to progress into professional work in all genres. We bring stage and screen casting directors to audition Acting students whilst still in training, which has started to bear fruit in students being cast for stage and screen. This addition, like our Musical Theatre course, provides another indicator of the quality of standards on the programme. We are proud our students continue to gain professional recognition and obtain high quality professional work with alumni being nominated for the BBTA Awards this year! Nominations include: Best Playwright; Best Supporting Male Actor in a Play & Best Graduate.

We are pleased to see 2023/24 Graduates undertaking work since graduating: Cast as Mercutio in Jamie Lloyd9s Romeo and Juliet; Joining the RSC cast of The School for Scandal; Cast in Test Match at the Orange Tree Theatre; Playing Paris in Shakespeare9s Globe; Cast in 8Sorry not Sorry9 at Tramshed; Edinburgh Fringe/The Lion Theatre - Critically acclaimed one man show written and performed by a graduate; 93% SoA Graduates secured agents before leaving and 30% were employed.

Below are further examples of the quality of work our Graduates/Alumni have undertaken:

Screen: Apple TV+ series 'Invasion'; Warner Brothers 'The Flash'; ITV 'The Walk In'; Apple TV 'Criminal Record'; Channel 4/Disney/ Lionsgate 'Queenie'; Netflix 'The Crown'; Syfy Channel 'The Arc' Season 2; Empire Productions 'Pulcinella' Apple TV 'Hijack'; BBC 8Doctors9 and 'Casualty'; ITV 'PIglets'; Netflix 'One Day'; MGM Studios ' Lazarus'; Miramax/Working Title 'Bridget Jones Diary'.

Radio/Voicework: BBC Radio 4 series regular Torchwood; Prodigious UK, Iris Worldwide, BBC Audio Drama. Theatre: Criterion Theatre ' Unbelievable' National Theatre extended tour ' The Ocean at the End of the Road ' The Changeling Theatre Company ' Loves Labours Lost '; Leeds Playhouse/Home Theatre Manchester/Northern Stage ' The White Card'.

FINANCIAL RESULTS

The Trust produced a deficit for the year of £591,776 (2023: deficit of £107,596). The total accumulated unrestricted general fund surplus at the end of the year was £6,717,607 (2023: £7,299,987). There were designated funds at the year end of £188,110 (2023: £188,110).

Capital expenditure in the year totalled £370,824 (2023: £154,543). Year-end cash balances were £4,098,223 (2023: £4,159,559) and there were long term loans with Lloyds Bank plc of £5,606,671 (2023: £5,994,045).

From a financial perspective 2023/24 was a year of transition. The institution has continued to feel the impact of the cost of living crisis and inflation. Our financial result for the year was largely impacted by the costs relating to the Rezaie external investigation that was carried out between January and July 2024. Our total fee income for the year was £10,542,566 (2023: £10,592,476). Studio hire and mast income continued to grow in the period, generating income of £206,471 (2023: £175,451) and our Theatres Tax Credit generated income of £250,000 (2023: £230,000).

We are mindful that students and families have felt a significant financial strain We have continued to support families with bursaries and discounts from our unrestricted funds of £440,913 (2023: £422,309).

17

THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Total expenditure in the year was £11,921,857 (2023: £11,332,502). The increase in costs is largely due to inflationary increases, alongside significant legal and regulatory costs arising as a result of the Rezaie investigation.

The Trustees remain confident that our financial position remains robust in an extremely challenging external environment that includes an uncertain political climate for the sector, along with high inflation and financial uncertainty that has put a financial strain on parents and students. A prudent budget has been prepared for 2024/25, during which we will be looking ahead to forge a new 5-year strategy.

Charitable Support

The Trust is immensely grateful for the support from the following individuals and trusts and foundations in 2023/24. Their generosity ensures that we can continue in our mission to enrol students with the greatest potential, regardless of their financial circumstances and that our facilities continue to be of a quality that matches their talent.

Special thanks to:

Andrew Lloyd Webber Foundation The Leverhulme Trust

ArtsEd TAP and ArtsEd Parents & Families

We would like to thank the TAP committee for their continued hard work, commitment and enthusiasm, and the Day School & Sixth Form parent and carer community for their ongoing support of TAP events and ArtsEd9s wider fundraising initiatives. Funds continue to be raised to be applied towards hardship grants.

ArtsEd Champions

A Cottis

ArtsEd Enthusiasts

S Simpson, R J Parkinson

ArtsEd Admirers

B Dias, F Mannan, G Williams, J Brant, S Osman, S Bates, T Yeates

Tim English and all the generous supporters of the Chris Hornby Bursary Fund

Justin & Sarah Savage and all the generous supporters of the Graham Martin Bursary Fund

Corporate

Acre Properties in memory of Ben Turner, Smith & Brant Theatricals

Trusts and Foundations

The D9Oyly Carte Charitable Trust, Help Musicians UK, The Honourable Society of Knights of the Round Table, Society of London Theatres (Laurence Olivier Bursary), The Lionel Bart Foundation, Lynne & Land Foundation, Pamela Brady Todd Fund, The Royal Victoria Hall Foundation (Lilian Baylis Award) The Sir John Gielgud Charitable Trust, Sophie9s Silver Lining Fund, The Stanley Picker Charitable Trust

Legacy Pledges

Anon, Vanessa Cameron, David J Yeoward

18

THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Future Plans

Following the completion of the Rezaie Investigation and the subsequent resignation of the Principal in July 2024, the Board of Trustees undertook a number of actions:

A new and ambitious strategic plan will be launched in the coming year covering the period to 2030.

Reserves Policy

Total funds at the balance sheet date were £15,012,257 (2023: £15,604,033) of which £2,741,637 were restricted (2023: £2,893,984) and £10,925,717 were unrestricted (2023: £11,508,097). Details of restricted funds are provided in note 19. Of the unrestricted reserves, there is a designated fund of £188,110 (2023: £188,110) which has been set up for student bursaries. Also included in the unrestricted fund is the revaluation reserve of £4,020,000 (2023: £4,020,000) which arose on the last revaluation of the School9s land and buildings. At the balance sheet date the permanent endowment fund had a balance of £1,344,903 (2023: £1,201,952).

As the school has historically invested in its building and, accordingly, there were no free reserves at the balance sheet date (2023: £nil). It is likely that free reserves will remain minimal. The Trustees believe that it is important to continue to maintain operational surpluses in order to build up total reserves and in order to be able to invest in the facilities and staff of ArtsEd.

Investment Policy

An investment policy has been written and adopted that seeks to optimise cash flow whilst maximising return on investment in a safe and secure manner. The investments are held within the permanent endowment fund. During the year, the net gain on investments was £142,951 (2023: losses of £11,308). The fund continues to generate restricted income totalling £38,000 (2023: £38,000).

Fundraising practices and performance

Raising voluntary funds from trusts, foundations and individuals is a vital source of income for ArtsEd, enabling us to fulfil our charitable objectives as effectively as possible. We are very grateful for the support from all of our donors.

At ArtsEd, we believe that fundraising should be an open, honest and respectful process. We aim to build partnerships with our supporters and donors that are based on mutual understanding and shared values. In developing our approach to fundraising, we have taken account of the Code of Fundraising Practice issued by the Fundraising Regulator. We have a small internal fundraising team which carries out our principal fundraising activity and make occasional use of external professional fundraisers for standalone fundraising projects. We do not engage commercial participators to carry out fundraising activity. The fundraising team works closely with ArtsEd9s executive and trustees to develop its fundraising strategy and identify potential prospects, the vast majority of whom have an existing connection to ArtsEd or to a member of one of these internal bodies. ArtsEd does not engage in unsolicited face-to-face or telephone fundraising.

As part of General Data Protection Regulation, ArtsEd reviewed and updated its Privacy Policy with regards to fundraising. This policy, published on our website, clearly states what personal data ArtsEd will hold in relation to supporters and how this data will be used. It sets out how individuals can raise concerns or complaints.

19

THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

ArtsEd has received no complaints about its fundraising activities either during the financial year or subsequently.

PRINCIPAL RISKS AND UNCERTAINTIES

Risk Management

The main risks that the Trustees have identified and the plans to manage those risks are:

Compliance 3 Compliance with the requirements of our regulators is fundamental for ArtsEd to continue to offer an outstanding education to its students in a safe environment. We manage this risk through the employment of appropriately qualified and experienced senior staff who report into the Board of Trustee and relevant Sub-Committees. A rolling list of actions is maintained to assist with the monitoring of compliance matters.

Reputation 3 The School9s success is built on its reputation of the quality of its education/training and wellbeing of our students.

We manage this risk by:

Finance 3 Our ability to continue is reliant on student fees and effectively managing costs, including factoring in VAT on DSSF fees in future periods.

We manage this risk by:

Competition 3 Innovative or unexpected developments are made by competitor organisations. We manage this risk by:

Through the risk management processes established for the Charity, the Trustees are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable, but not absolute, assurance that major risks have been adequately managed.

Trustees9 responsibilities for the financial statements

The Trustees, who are also directors of ArtsEd for the purposes of company law, are responsible for preparing the Trustees9 Report and the Financial Statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare Financial Statements for each financial year. Under that law the Trustees have prepared the Financial Statements in accordance with United Kingdom Generally Accepted

20

THE ARTS EDUCATIONAL SCHOOLS TRUSTEES9 REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the profit or loss of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company9s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Provision of information to auditors

The Trustees at the time when this Trustees9 Report is approved have confirmed that:

Trustees9 Report, incorporating the Strategic Report, approved on behalf of the Trustees:

Farida Mannan, Trustee, Acting Chair 21 January 2025

21

THE ARTS EDUCATIONAL SCHOOLS STATEMENT OF CORPORATE GOVERNANCE & INTERNAL CONTROL FOR THE YEAR ENDED 31 AUGUST 2024

Corporate Governance

The Statement which follows is provided to enable readers of the Annual Review and Financial Statements of the School to obtain a better understanding of its governance and legal structure and applies to the 2023/24 financial year and to the date of the approval of the audited financial statements.

The structure of Corporate Governance is set out on pages 3 and 4, being the first section of the Trustees9 Report. The Governing Document which dates from 1962 and was last amended in 2023 underpins the Governing practices adopted by the Board.

The Trustees are legally responsible for the overall management and control of the Schools. The Board of Trustees meets at least three times a year. Day to day responsibilities are delegated to the Principal and the Board has six sub-committees that meet at least three times a year that cover specific areas of the business. For the year under review these were:

All the sub-committees are attended by the Principal and other senior staff as may be required. Minutes are taken from all such meetings which are included in the Board papers so that all Trustees have an appreciation of the issues dealt with by the sub-committees.

Every year the Board holds at least one Strategic Review day when issues of a longer term and more strategically orientated are considered.

The Principal and the Senior Leadership Board (SLB) meet weekly to discuss current issues and to agree actions for the short, medium and longer term as required.

The Finance & Audit Committee ensure the adequacy and effectiveness of arrangements for corporate governance, risk management and oversight of any statutory and other regulatory responsibilities including compliance with the OfS9s ongoing conditions of registration, any terms and conditions of funding as well as any other relevant regulatory responsibilities.

As part of the action plan in response to the external investigation the Trustees commissioned an external specialist adviser to complete a governance effectiveness review which was completed in March 2022. As detailed on pages 7 and 8, detailed work on the actions arising from this review concluded in 2023/24.

Internal Controls

Identifying and managing risk is a key part of the work of the Board and the SLB. This is addressed by the maintenance of a detailed Risk Register that is discussed and updated as necessary at all the meetings of the Board and the SLB and is covered where appropriate by the other sub-committees.

The approach to internal controls is risk-based including an evaluation of the risks becoming a reality. The risk weighting is considered by assessing the likelihood of the risk and the potential damage it could do. This approach helps management and Trustees prioritise actions and enhance controls if the potential impact of a risk is considered to be increasing.

22

THE ARTS EDUCATIONAL SCHOOLS STATEMENT OF CORPORATE GOVERNANCE & INTERNAL CONTROL FOR THE YEAR ENDED 31 AUGUST 2024

Whilst many risks do have a financial implication many others do not and could have compliance, operational, health and safety or reputational implications. The Risk Register covers all such issues and not the purely financial ones.

Members of the Board of Trustees understands that it is their responsibility to ensure that a sound system of internal controls is maintained and confirms that it has reviewed the effectiveness of these arrangements.

The Trustees, SLB and external auditors have not identified any significant internal control weaknesses or failures in the financial year under review or in the period since the year end up to the date that the financial statements were signed that need to be disclosed.

Farida Mannan, Trustee, Acting Chair 21 January 2025

23

THE ARTS EDUCATIONAL SCHOOLS INDEPENDENT AUDITOR9S REPORT TO THE MEMBERS OF THE ARTS EDUCATIONAL SCHOOLS FOR THE YEAR ENDED 31 AUGUST 2024

Opinion

We have audited the financial statements of The Arts Educational Schools 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 Auditor9s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC9s 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 trustees9 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 company9s 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 Trustees9 Report (incorporating the strategic 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.

Opinions on other matters prescribed by the Companies Act 2006

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

24

THE ARTS EDUCATIONAL SCHOOLS INDEPENDENT AUDITOR9S REPORT TO THE MEMBERS OF THE ARTS EDUCATIONAL SCHOOLS FOR THE YEAR ENDED 31 AUGUST 2024

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 Trustees9 Report (which incorporates the strategic report and directors9 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 matters 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 Trustees9 Responsibilities statement set out on pages 20 and 21, 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 company9s 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor9s 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 auditor9s 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.

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 group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to independent schools, higher education and further education provision including Independent Schools Inspectorate, Ofsted and the Office for Students regulations, charity and company law applicable in England and Wales, 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

25

THE ARTS EDUCATIONAL SCHOOLS INDEPENDENT AUDITOR9S REPORT TO THE MEMBERS OF THE ARTS EDUCATIONAL SCHOOLS FOR THE YEAR ENDED 31 AUGUST 2024

of the financial statements such as the Companies Act 2006, Charities Act 2011 and the Office for Students Accounts Direction.

We evaluated management9s 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 revenue recognition, in particular in relation to voluntary and other income and management override of controls. 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 Council9s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor9s 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, Statutory Auditors

28 January 2025

10 Queen Street Place London

EC4R 1AG

26

THE ARTS EDUCATIONAL SCHOOLS STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024

Unrestricted Restricted Endowment Total Total
Funds Funds Funds Funds Funds
2024 2024 2024 2024 2023
Note £ £ £ £ £
INCOME FROM:
Donations and legacies 2 25 159,121 - 159,146 220,757
Charitable activities
Fee income 3 10,101,653 - - 10,101,653 10,170,167
Other income 4 790,388 - - 790,388 751,117
Investment income 97,943 38,000 - 135,943 94,173
------------------ ------------------ ------------------ ------------------ ------------------
TOTAL INCOME 10,990,009 197,121 - 11,187,130 11,236,214
------------------ ------------------ ------------------ ------------------ ------------------
EXPENDITURE ON:
Raising funds (54,071) - - (54,071) (75,684)
Charitable activities (11,518,318) (349,468) - (11,867,786) (11,256,818)
----------------- ----------------- ----------------- ----------------- -----------------
TOTAL EXPENDITURE 5 (11,572,389) (349,468) - (11,921,857) (11,332,502)
------------------ ------------------ ------------------ ------------------ ------------------
NET EXPENDITURE BEFORE (582,380) (152,347) - (734,727) (96,288)
INVESTMENT GAINS/
(LOSSES)
Net gains/(losses) on - - 142,951 142,951 (11,308)
investments
------------------ ------------------ ------------------ ------------------ ------------------
NET (EXPENDITURE) / (582,380) (152,347) 142,951 (591,776) (107,596)
INCOME BEFORE
TRANSFERS
Transfers - - - - -
------------------ ------------------ ------------------ ------------------ ------------------
NET MOVEMENT IN (582,380) (152,347) 142,951 (591,776) (107,596)
FUNDS
Funds brought forward at
1 September 11,508,097 2,893,984 1,201,952 15,604,033 15,711,629
------------------- ------------------- ------------------- ------------------- -------------------
TOTAL FUNDS AT
31 AUGUST 10,925,717 2,741,637 1,344,903 15,012,257 15,604,033
========= ======== ========= ========= =========

All amounts are derived from continuing activities. All gains and losses recognised in the year are included in the Statement of Financial Activities.

The notes on pages 30 to 50 form part of these financial statements. Full comparatives for 2023 are provided in note 25.

27

Registered Number: 0712444

THE ARTS EDUCATIONAL SCHOOLS BALANCE SHEET AS AT 31 AUGUST 2024

2024 2023 2023
Note £ £ £ £
FIXED ASSETS
Tangible assets 12 18,561,748 18,928,307
INVESTMENTS
Investments 13 1,445,189 1,264,238
CURRENT ASSETS
Debtors 14 3,031,125 3,031,125 2,874,670
Cash at bank and in hand 4,098,223 4,098,223 4,159,559
--------------------- --------------------- ---------------------
7,129,348 7,129,348 7,034,229
CREDITORS: amounts falling due
within one year 15 (6,856,478) (6,038,404) (6,038,404)
--------------------- --------------------- ---------------------
NET CURRENT ASSETS 272,870 995,825
---------------------- ----------------------
TOTAL ASSETS LESS CURRENT 20,279,807 21,188,370
LIABILITIES
CREDITORS:Amounts falling due 15 (5,267,550) (5,584,337)
after one year
---------------------- ----------------------
NET ASSETS 18 15,012,257 15,604,033
=========== ===========
RESERVES
Unrestricted funds
-
general funds		 6,717,607 7,299,987
-
designated funds		 188,110 188,110
-
revaluation reserve		 4,020,000 4,020,000
Restricted funds 19 2,741,637 2,893,984
Endowment funds 20 1,344,903 1,201,952
---------------------- ----------------------
TOTAL FUNDS 17 15,012,257 15,604,033
=========== ===========

The notes on pages 30 to 50 form part of these financial statements.

The financial statements were approved and authorised for issue by the Trustees on 21 January 2025 and were signed below on its behalf by:

Farida Mannan Trustee, Acting Chair

Jonathan O9Boyle Accountable Officer

28

THE ARTS EDUCATIONAL SCHOOLS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024

_______________ _______________ _______________ _______________ _______________ _______________
2024 2023
Note £ £ £ £
Net cash provided by 22 813,590 773,484
operating activities
Cash flows from investing
activities
Dividends 38,000 38,000
Interest income 97,943 56,173
Interest payable (214,171) (214,663)
Purchase of fixed assets (370,824) (154,543)
------------------ ------------------
Net cash used in investing (449,052) (275,033)
activities
Financing activities
Cash
outflows
from		 (387,874) (383,161)
repayments
------------------ ------------------
Net cash (outflow) from
financing activities (387,874) (383,161)
------------------ ------------------
Change in cash and cash (23,336) 115,290
equivalents in the year
Cash and cash equivalents 4,159,559 4,044,269
at the beginning of the ------------------ ------------------
year
Cash and cash equivalents 23 4,136,223 4,159,559
at the end of the year
======== ========

The notes on pages 30 to 50 form part of these financial statements.

29

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

1. ACCOUNTING POLICIES

Basis of Preparation of the Financial Statements

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - effective 1 January 2019. The Financial Statements are drawn up under the historical cost convention, with the exception of investments which are included at valuation.

The Trust is a Public Benefit Entity registered as a charity in England and Wales, it was registered in 1962 (charity number: 311087).

Going concern

Having reviewed the funding facilities available to the Trust together with the expected ongoing demand for places and the Trust9s future projected cash flows and in addition having reviewed the potential impact of the cost of living crisis and uncertainty on the Trust9s finances, the Trustees have a reasonable expectation that the Trust has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the Trust9s financial viability. Accordingly, they also continue to adopt the going concern basis in preparing the financial statements.

Group structure

A subsidiary called ArtsEd International Ltd (company number 11960873) was established on 24 April 2019. This subsidiary is now dormant and consolidated accounts are therefore no longer required. ArtsEd International Performing Arts Education LLC is limited by shares, of which The Arts Educational Schools owned 49%, until 1 September 2021, when the company was sold to the Dubai local management team for £1. Following the sale, the school no longer had control of the company. The company is now dormant.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, the Trustees are required to make judgement, estimates, and assumptions about the carrying value 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 ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

30

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Trust9s financial statements.

Fees and Similar Income

Fees receivable and charges for services and use of the premises, less any allowances, scholarships, bursaries granted by the Trust against those fees, but including contribution received from restricted funds, are accounted for in the period in which the service is provided.

Government grants are reported as fees or other grants as appropriate.

Donations, grants and legacies

Donations, grants and legacies are accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable.

Investment income

Investment income from the investments and bank balances are accounted for on an accruals basis.

The income from the invested endowment fund is wholly restricted.

Expenditure

Charitable expenditure and administration costs comprise direct expenditure including staff costs attributable to the activity and are accounted for on the accruals basis. Where costs cannot be directly attributed they have been allocated to the activities on a basis consistent with the use of resources. The Trust is unable to recover VAT incurred on expenditure accordingly expenditure is shown inclusive of any associated VAT payable.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Trust and include the audit fees and costs linked to the strategic management of the Trust.

Fund accounting

Unrestricted funds comprise resources available to the Trustees to be applied for any purpose within the objects of the Trust.

Restricted funds comprise donations for purposes restricted by the wishes of the donor.

Endowment funds arise when the donor has expressly provided that the gift is to be invested and only the income of the fund may be spent. These funds are sub-analysed between those where the Trustees have the discretion to spend the capital (expenditure endowment) and those where there is no discretion to expend the capital (permanent endowment). The Charity has one permanent endowment fund, and no expendable endowment. The fund is managed by the investment managers on a total return basis. This means that the funds are invested to maximise the return on investment without regard as to whether that return is in the form of income from dividends or interest or capital appreciation (where the market value of the investment increases). The investment managers each year release a set amount of that return for spending on bursaries for Musical Theatre students.

Revaluation reserve comprises total revaluations in the deemed cost of the properties.

Designated funds are funds that the Trustees have earmarked for a particular purpose or use without restricting or committing the funds legally.

31

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

Pension

The Trust makes pension contributions to defined contribution pension schemes on behalf of certain employees. These contributions are held in a separately administered fund.

Operating leases

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Fixed asset investments

Investments are a form of basic financial instrument. Fixed asset investments are initially recognized at their transaction value and are subsequently measures at their fair value (market value) as at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid deposit accounts.

Debtors

Fee and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. A specific provision is made for debts for which recoverability is in doubt.

Creditors and provisions

Creditors and provisions are recognized where the Trust has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognized at their settlement amount after allowing for any trade discounts due.

32

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

Depreciation

Tangible fixed assets are stated at cost or deemed cost, net of depreciation and any provision for impairment. Tangible fixed assets costing greater than or equal to £500 are capitalised and stated at cost, net of depreciation. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost or valuation, less estimated residual value of each asset on a straight-line basis over its expected useful life, as follows:

Freehold buildings 2% per annum Computer equipment 33.33% per annum Furniture and fittings 10% - 50% per annum Motor vehicles 25% per annum Building & theatre refurbishment 2% - 10% per annum

The valuation of freehold land and buildings on transition to FRS 102 at 1 September 2014 has been taken as the deemed cost.

2 INCOME FROM DONATIONS AND LEGACIES

Unrestricted Restricted Endowment
Funds Funds Funds Total
2024 2024 2024 2024
£ £ £ £
Donations 25 159,121 - 159,146
---------------- ---------------- ---------------- ----------------
25 159,121 - 159,146
======== ======== ======== =========
Comparative analysis
Unrestricted Restricted Endowment
Funds Funds Funds Total
2023 2023 2023 2023
£ £ £ £
Donations 36,210 184,547 - 220,757
---------------- ---------------- ---------------- ----------------
36,210 184,547 - 220,757
======== ======== ======== =========
GRANT AND FEE INCOME
2024 2023
£ £
Fee income from other bodies 865,977 920,967
Fee income for taught awards 3,368,698 3,399,343
Fee income from non-qualifying courses 5,866,978 5,849,857
---------------- ----------------
10,101,653 10,170,167
======== ========

3 GRANT AND FEE INCOME

33

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

4. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted Unrestricted
Funds Funds
2024 2023
£ £
Fees income
Fees receivable 10,542,566 10,592,476
Bursaries and discounts (440,913) (422,309)
--------------------- ---------------------
10,101,653 10,170,167
--------------------- ---------------------
Other income
Studio, theatre hire and classes 206,471 175,451
Audition and registration fees 61,289 61,735
School productions 93,482 97,001
Catering 88,768 87,691
Bar income 11,896 11,854
Theatre tax relief 250,000 230,000
Other income 78,482 87,385
--------------- ---------------
790,388 751,117
--------------- ---------------
10,892,041 10,921,284
========== ==========

34

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

5. ANALYSIS OF TOTAL EXPENDITURE
Staff Other
Costs Costs
 Depreciation Total
2024 2024 2024 2024
Raising funds: £ £ £ £
Fundraising
 49,465 4,606 - 54,071
Charitable activities
Teaching costs
 4,847,141 493,229 32,782
 5,373,152
Welfare costs
 1,021 406,595 -
 407,616
Premises costs
 512,580 859,029 700,759
 2,072,368
Productions costs
 571,515 134,445 -
 705,960
Grants, awards and prizes
 - 213,952 -
 213,952
Support costs
 1,299,939 1,472,772 3,842
 2,776,553
Finance costs
 - 318,185 -
 318,185
-------------------- -------------------- -------------------- --------------------
7,232,196 3,898,207 737,383
 11,867,786
-------------------- -------------------- -------------------- --------------------
7,281,661 3,902,813 737,383 11,921,857
========== ========== ========== ==========
Comparative analysis
Staff Other
Costs Costs Depreciation Total
2023 2023 2023 2023
Raising funds: £ £ £ £
Fundraising 63,794 11,890 - 75,684
Charitable activities
Teaching costs 4,773,764 571,893 45,677 5,391,334
Welfare costs 2,000 405,821 - 407,821
Premises costs 459,946 1,002,899 690,321 2,153,166
Productions costs 525,590 134,470 - 660,060
Grants, awards and prizes - 229,426 - 229,426
Support costs 993,511 1,184,259 3,843 2,181,613
Finance costs - 233,398 - 233,398
-------------------- -------------------- -------------------- --------------------
6,754,811 3,762,166 739,841 11,256,818
-------------------- -------------------- -------------------- --------------------
6,818,605 3,774,056 739,841 11,332,502
========== ========== ========== ==========

35

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

6. ANALYSIS OF SUPPORT COSTS

All costs included in charitable activities are direct costs with the exception of support costs of schooling which comprise:

7.

hich comprise:
General
Governance		 General Governance
support
costs
Total		 support costs Total
2024
2024
2024		 2023 2023 2023
£
£
£		 £ £ £
Staff costs 1,261,918
38,021
1,299,939		 956,846 36,665 993,511
Administrative 604,229
1,041
605,270		 578,280 2,777 581,057
costs
Professional costs 827,833
-
827,833		 562,873 - 562,873
Audit remuneration -
26,820
26,820		 - 29,400 29,400
Bank charges 12,849
-
12,849		 10,929 - 10,929
Depreciation 3,842
-
3,842		 3,843 - 3,843
----------------
---------------------
---------------------		 ---------------- --------------------- ---------------------
2,710,671
65,882
2,776,553		 2,112,771 68,842 2,181,613
========
==========
========		 ======== ========== ========
NET MOVEMENT IN FUNDS 2024 2023
£ £
Net movement in funds is stated after charging:
Operating leases 3 equipment 56,420 71,978
Depreciation of tangible fixed assets 3 owned by the charity 737,383 739,841
Interest costs 214,171 214,663
Auditors9 remuneration 3 audit 30,000 26,820
Auditors9 remuneration 3 other 9,000 15,870
========== ==========

8. ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES, AND THE COST OF KEY MANAGEMENT PERSONNEL

Staff Costs

Staff Costs
2024 2023
£ £
Wages and salaries 6,500,620 6,086,243
Social security costs 564,706 529,932
Pension costs 203,015 189,108
Apprenticeship levy 13,320 13,322
--------------------- ---------------------
7,281,661 6,818,605
========== ==========

36

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

Trustees9 remuneration and expenses

The charity trustees were not paid and did not receive any benefits from employment with the Trust in the year (2023: £nil). Trustees were reimbursed expenses of £1,041 for travel to/from meetings and subsistence during the year (2023: £2,764). No charity trustee received payment for professional or other services supplied to the charity (2023: £nil).

Key Management Personnel

The key management personnel of the charity comprise the trustees and the Senior Leadership Board listed on page 5. The total employee benefits of the key management personnel were £791,336 (2023: £820,329).

STAFF NUMBERS

The average headcount employed by the charitable company during the year was as follows:

2024 2023
Number Number
Principal and management 8 8
Domestic 15 15
Facilities/IT/Library 15 15
Finance 4 4
Production 11 11
Administration 15 13
Teaching staff 147 151
---------------- ----------------
215 217
======== ========

HIGHER PAID STAFF

The number of staff whose basic salary exceeded £60k per annum during the year was as follows:

No. of Staff No. of Staff
2024 2023
£60,000-£64,999 4 4
£65,000 - £69,999 1 -
£70,000 - £74,999 - 2
£75,000 - £79,999 2 1
£85,000 - £85,999 1 -
£105,000 - £109,999 1 -
£110,000 - £114,999 - 1
£150,000 - £154,999 - 1
£190,000 - £194,999 1 -
---------------- ----------------
10 9
======== ========

Pension contributions totaling £33,024 (2023: £23,756) were made on behalf of 10 (2023: 9) of the above employees.

37

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

PRINCIPAL9S REMUNERATION

The total remuneration package for the Principal during the year was as follows:

2024 2023
£ £
Julie Spencer (until 9 July 2024)
Basic salary 113,382 113,300
Pension contributions 4,997 3,067
Other taxable benefits 180 191
Payment in lieu of notice 80,000 -
---------------- ----------------
198,559 116,558
======== ========

The Principal9s remuneration package is set by reference to similar organisations and is approved by the Board following a recommendation from the Chair. There is an annual appraisal with the Chair and Deputy Chair when targets are set for the ensuing short, medium and long term together with a discussion and assessment of the achievements in the period under review.

The Principal9s (head of provider) total remuneration is 4.88 times (2023: 3.28 times) the median total remuneration of staff, where the median total remuneration is calculated on a full-time equivalent basis for the total remuneration by the provider of its staff.

Following the resignation of the Principal on 9 July 2024, the Trustees appointed an Interim Executive Leadership Team, consisting of the Finance Director, the Director of the School of Musical Theatre and the Headteacher of the Day School and Sixth Form, to lead the institution until a new Principal was recruited. The aggregate remuneration in the period from 10 July to 31 August was:

2024 2023
£ £
Executive Leadership Team (from 10 July 2024)
Basic salary 39,741 -
Pension contributions 1,478 -
Other taxable benefits 98 -
---------------- ----------------
41,317 -
======== ========

SEVERANCE PAYMENTS

The total amount of severance payments for the year was £126,465 (2023: £76,000) to 3 individuals (2023: 1).

38

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

9. RELATED PARTY TRANSACTIONS

Trustees made donations of £3,563 to the School (2023: £3,462). There were no other related party transactions.

10. PENSIONS

The charity makes contributions to defined contribution pension schemes on behalf of certain employees. The charge for the year was £203,015 (2023: £189,108). At the year end, there was an amount payable of £29,047 (2023: £30,632).

11. SUBSIDIARIES

The charitable company has two subsidiary entities: ArtsEd International Limited (registered in the England and Wales), Company number 11960873 and ArtsEd International Performing Arts Education LLC (known as ArtsEd Dubai) (registered in Dubai) which is based in Dubai. Both entities are now considered dormant.

ArtsEd International Limited

ArtsEd International Limited is limited by shares, of which The Arts Educational Schools is the sole Shareholder. It was incorporated on 24 April 2019. The company provides educational services internationally. During the year the Company did not trade. This company is dormant.

The income and expenditure of Arts Ed International Limited for the year ended 31 August 2024 was:

2024 2023
£ £
Turnover - -
Cost of sales - -
------------------- ---------------------
- -
========== ===========
The assets and liabilities of Arts Ed international Limited at 31 August 2024 were:
2024 2023
£
Fixed Assets - -
Debtors 109,974 109,974
Creditors (109,974) (109,974)
------------------- -------------------
- -
========== ==========

39

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

ArtsEd International Performing Arts Education LLC

ArtsEd International Performing Arts Education LLC is limited by shares, of which The Arts Educational Schools owned 49%, until 1 September 2021, when the company was sold to the Dubai local management team for £1. Following the sale, the school no longer had control of the company and it has subsequently been excluded from the consolidation. The company is dormant.

The income and expenditure of ArtsEd Dubai for the year ended 31 August 2024 were:

2024 2024
£ £
Turnover - -
Cost of sales - -
Admin costs - -
------------------- -------------------
- -
========== ==========

The assets and liabilities of ArtsEd International Performing Arts Education LLC at 31 August 2024 were:

2024 2023
£ £
Cash - -
Debtors - -
Creditors - -
------------------- -------------------
- -
========== ==========

40

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

12. TANGIBLE Freehold Furniture Computer Motor Building, Assets under Total
FIXED ASSETS land and vehicles studios & construction
buildings theatre
£ £ £ £ £ £ £
Cost or deemed
cost
At 1 September 6,600,000 2,149,018 671,615 30,228 15,762,024 241,840 25,454,725
2023
Additions - 353,002 17,822 - - - 370,824
--------------------- --------------------- ------------------ -------------- -------------------- -------------- --------------------
At 31 August 6,600,000 2,502,020 689,437 30,228 15,762,024 241,840 25,825,549
2024
--------------------- --------------------- ----------------- ------------- -------------------- --------------- --------------------
Depreciation
At 1 September 1,660,512 1,766,001 636,943 22,224 2,198,898 241,840 6,526,418
2023
Depreciation 97,000 130,918 32,782 3,842 472,841 - 737,383
charge for the
year
--------------------- --------------------- ---------------- ------------- -------------------- --------------- --------------------
At 31 August 1,757,512 1,896,919 669,725 26,066 2,671,739 241,840 7,263,801
2024
--------------------- --------------------- ---------------- ------------ -------------------- --------------- --------------------
Net Book Value
At 31 August 4,842,488 605,101 19,712 4,162 13,090,285 - 18,561,748
2024
========== ======== ======== ====== ======== ======= ==========
At 31 August 4,939,489 383,016 34,673 8,003 13,563,126 - 18,928,307
2023
========= ======== ======== ====== ======== ======= ==========

13. INVESTMENTS

2024 2023
£ £
Fair value brought forward at 1 September 1,264,238 1,275,546
Gain/(loss) on revaluation of investments 142,951 (11,308)
Investment income retained 38,000 -
------------------- -------------------
Fair value as at 31 August 1,445,189 1,264,238
========= =========

41

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

14. DEBTORS

2024 2023
£ £
Trade debtors 2,427,568 2,380,996
Prepayments 325,821 219,682
Other debtors 277,736 273,992
------------------- -------------------
3,031,125 2,874,670
========= =========
15. CREDITORS: amounts falling due within one year
2024 2023
£ £
Bank loan (note 16) 421,949 409,708
Trade creditors 422,073 221,784
Other creditors 1,595,047 1,566,789
Accruals 585,248 511,347
Deferred income 3,832,161 3,328,776
-------------------- --------------------
6,856,478 6,038,404
========== ==========

Included within other creditors is an amount of £133,527 (2023: £139,300) relating to taxes and social security.

CREDITORS: amounts falling due in more than one year 2024 2023
£ £
Bank loan (note 16) 5,184,222 5,584,337
Deferred income 83,328 -
-------------------- --------------------
5,267,550 5,584,337
========== ==========
ANALYSIS OF DEFERRED INCOME 2024 2023
£ £
At 1 September 3,328,776 3,270,803
Released to income in the year (3,328,776) (3,270,803)
Deferred in the year 3,915,489 3,328,776
At 31 August -------------------- --------------------
3,915,489 3,328,776
=========== ===========

Deferred income consists of fees income received in advance. Deferred income of £83,328 (2023: nil) relates to a period of greater than one year.

42

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

16. BANK LOAN: classification of amounts falling due within one year
and more than one year 2024 2023
£ £
Bank loan 5,184,222 5,584,337
========== ==========
Wholly repayable within five years 2,170,599 2,109,508
Wholly repayable within more than five years 3,435,572 3,884,537
-------------------- --------------------
5,606,171 5,994,045
Less: Included in current liabilities (421,949) (409,708)
-------------------- --------------------
Amounts included above 5,184,222 5,584,337
========== ==========

There are two 15 year loans with Lloyds Bank plc secured by a charge over the assets of the Charity. One loan for £6,000,000 is at a fixed rate of 2.97% the second for £1,000,000 is at a rate of the Bank of England base rate plus 2.2%. These loans were made available to provide funding for the new studio block that was completed in November 2020.

17. ACCUMULATED FUNDS

Opening Gains & Closing
Fund Income Expenditure Transfers losses Funds
2024 2024 2024 2024 2024 2024
£ £ £ £ £ £
Unrestricted general
funds 7,299,987 10,990,009 (11,572,389) - - 6,717,607
- revaluation reserve 4,020,000 - - - - 4,020,000
Designated reserves
- bursaries 188,110 - - - - 188,110
--------------------- ------------------- --------------------- ------------------ ----------------- ---------------------
Total unrestricted 11,508,097 10,990,009 (11,572,389) - - 10,925,717
funds
Restricted funds 2,893,984 197,121 (349,468) - - 2,741,637
Endowment funds 1,201,952 - - - 142,951 1,344,903
--------------------- ------------------- --------------------- ------------------ ----------------- ---------------------
Total funds 15,604,033 11,187,130 (11,921,857) - 142,951 15,012,257
=========== ========== =========== ========= ========= ===========

The general fund is the unrestricted reserves after allowing for all designated funds. The designated fund has been set up for the provision of bursaries.

43

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

Comparative analysis

omparative analysis
Opening Gains & Closing
Fund Income Expenditure Transfers losses Funds
2023 2023 2023 2023 2023 2023
£ £ £ £ £ £
Unrestricted
general funds 7,259,064 11,013,667 (10,973,084) 340 - 7,299,987
- revaluation 4,020,000 - - - - 4,020,000
reserve
Designated reserves
- bursaries 188,110 - - - - 188,110
--------------------- ------------------- --------------------- ------------------ ----------------- ---------------------
Total unrestricted 11,467,174 11,013,667 (10,973,084) 340 - 11,508,097
funds
Restricted funds 3,031,195 222,547 (359,418) (340) - 2,893,984
Endowment funds 1,213,260 - - - (11,308) 1,201,952
--------------------- ------------------- --------------------- ------------------ ----------------- ---------------------
Total funds 15,711,629 11,236,214 (11,332,502) - (11,308) 15,604,033
=========== ========== =========== ========= ========= ===========

44

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS

General Revaluation Designated Restricted Endowment 2024
Funds Reserve Reserves Funds Funds Total
2024 £ 2024 £ 2024 £ 2024 £ 2024 £ £
Tangible fixed assets 12,364,267 4,020,000 - 2,177,481 - 18,561,748
Investments - - - 62,286 1,382,903 1,445,189
Net current assets (379,110) - 188,110 501,870 (38,000) 272,870
Long Term Liability (5,267,550) - - - - (5,267,550)
----------------- ----------------- ------------------ ------------------- ------------------- ------------------
At 31 August 2024 6,717,607 4,020,000 188,110 2,741,637 1,344,903 15,012,257
========= ========= ========== ========== ========== ==========

Comparative Analysis

General Revaluation Designated Restricted Endowment 2023
Funds Reserve Reserves Funds Funds Total
2023 £ 2023 £ 2023 £ 2023 £ 2023 £ £
Tangible fixed assets 12,593,060 4,020,000 - 2,315,247 - 18,928,307
Investments - - - 62,286 1,201,952 1,264,238
Net current assets 291,264 - 188,110 516,451 - 995,825
Long Term Liability (5,584,337) - - - - (5,584,337)
----------------- ----------------- ------------------ ------------------- ------------------- ------------------
At 31 August 2023 7,299,987 4,020,000 188,110 2,893,984 1,201,952 15,604,033
========= ========= ========== ========== ========== ==========

45

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

19. ANALYSIS OF MOVEMENTS IN RESTRICTED FUNDS:

Balance at Balance at
1 September 31 August
2023 Income Expenditure Transfer 2024
£ £ £ £ £
ALW Foundation 2,315,247 - (137,766) - 2,177,481
The ArtsEd Student Fund 27,677 - (4,482) - 23,195
The
ArtsEd
Scholarship		 10,995 40,705 (65,462) 13,762 -
Fund
Bursary fund 20,566 - - - 20,566
Capital campaign 397,872 - - - 397,872
Chris Hornby Fund 7,086 4,784 (2,500) - 9,370
The CMF Scholarship Fund 1,085 - - - 1,085
Guildford Academic 1,327 - - - 1,327
Associates
Leverhulme Trust - 99,750 (98,100) - 1,650
Restoration levy 40,778 - - - 40,778
Spencer Will Trust 1,091 - - - 1,091
TAP 7,636 - - - 7,636
Graham Martin Memorial 4,111 - (2,500) - 1,611
Excellence Award 13,933 38,000 (38,658) - 13,275
Friends Giving 44,580 13,882 - (13,762) 44,700
------------------- ------------------ ----------------- ---------------- -------------------
2,893,984 197,121 (349,468) - 2,741,637
========= ========== ========== ========= =========

-The Andrew Lloyd Webber Foundation donated £3.5million to the Schools to fund a major refurbishment project. The funds were received in the three years ended 31 August 2012, 2013 and 2014. The money was spent to improve four key areas: the main theatre, costume storage, the film and television studios and disabled facilities. At the end of October 2013 when the work was virtually complete, the expenditure was transferred to fixed assets and from that date is being depreciated and included under expenditure.

46

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

20. ANALYSIS OF MOVEMENTS IN ENDOWMENT FUNDS:

Balance at Income Expenditure Gains and Balance at
1 September losses 31 August
2023 2024
£ £ £ £ £
Musical Theatre 1,201,952 - - 142,951 1,344,903
bursary fund
---------------------- --------------------- -------------------- ------------------- ----------------------
1,201,952 - - 142,951 1,344,903
========== ========== ========== ========= ==========
Comparative
Analysis
Balance at Income Expenditure Gains and Balance at
1 September losses 31 August
2022 2023
£ £ £ £ £
Musical Theatre 1,213,260 - - (11,308) 1,201,952
bursary fund
---------------------- --------------------- -------------------- ------------------- ----------------------
1,213,260 - - (11,308) 1,201,952
========== ========== ========== ========= ==========

21. CAPITAL COMMITMENTS

At 31 August 2024, capital expenditure contracted for but not provided in these accounts amounted to nil (2023: £nil).

47

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

22. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOWS FROM OPERATING ACTIVITIES

2024 2023
£ £
Net movement in funds (591,776) (107,596)
Depreciation charges 737,383 739,841
(Gains)/losses on revaluation of investments (142,951) 11,308
Interest receivable (97,943) (56,173)
Interest payable 214,171 214,663
Dividends receivable (38,000) (38,000)
(Increase)/decrease in debtors (156,455) (250,364)
Increase/(decrease) in creditors 889,161 259,805
------------------ ------------------
Net cash provided by operating activities 813,590 773,484
========= =========

23. ANALYSIS OF CHANGE IN NET DEBT

ANALYSIS OF CHANGE IN NET DEBT
Movement
between
At due within At
1 September and after 31 August
2023 Cash flows one year 2024
£ £ £ £
Cash at bank 4,159,559 (61,336) - 4,098,223
Cash held within investments - 38,000 - 38,000
Debt due within one year (409,708) 387,874 (400,115) (421,949)
Debt due after one year (5,584,337) - 400,115 (5,184,222)
-------------------- ------------------- -------------------- --------------------
(1,834,486) 364,538 - (1,469,948)
========== ========== ========== ==========

24. COMMITMENTS UNDER OPERATING LEASES

At 31 August 2024, the charitable company had future minimum lease commitments under non-cancellable operating leases as set out below:

Assets other than land & buildings

2024 2023
£ £
Within 1 year 34,978 41,488
Within 2 3 5 years 39,473 29,014
-------------- --------------
74,451 70,502
======= =======

48

THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

25. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR THE 2023 FINANCIAL YEAR

Unrestricted Restricted Endowment Total
Funds Funds Funds Funds
2023 2023 2023 2023
Note £ £ £ £
INCOME FROM:
Donations and legacies 2 36,210 184,547 - 220,757
Charitable activities
Fee income 3 10,170,167 - - 10,170,167
Other income 4 751,117 - - 751,117
Investment income 56,173 38,000 - 94,173
------------------ ------------------ ------------------ ------------------
TOTAL INCOME 11,013,667 222,547 - 11,236,214
------------------ ------------------ ------------------ ------------------
EXPENDITURE ON:
Raising funds (75,684) - - (75,684)
Charitable activities (10,897,400) (359,418) - (11,256,818)
----------------- ----------------- ----------------- -----------------
TOTAL EXPENDITURE 5 (10,973,084) (359,418) - (11,332,502)
------------------ ------------------ ------------------ ------------------
NET INCOME / (EXPENDITURE) 40,583 (136,871) - (96,288)
BEFORE INVESTMENT (LOSSES)
Net (losses) on investments - - (11,308) (11,308)
------------------ ------------------ ------------------ ------------------
NET INCOME/ (EXPENDITURE) 40,583 (136,871) (11,308) (107,596)
BEFORE TRANSFERS
Transfers 340 (340) - -
------------------ ------------------ ------------------ ------------------
NET MOVEMENT IN FUNDS 40,923 (137,211) (11,308) (107,596)
Funds brought forward at 1
September 11,467,174 3,031,195 1,213,260 15,711,629
------------------- ------------------- ------------------- -------------------
TOTAL FUNDS AT
31 AUGUST 11,508,097 2,893,984 1,201,952 15,604,033
========= ======== ========= =========

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THE ARTS EDUCATIONAL SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

26. COMPARATIVE ANALYSIS OF MOVEMENTS IN RESTRICTED FUNDS FOR THE 2023 FINANCIAL YEAR:

Balance at Balance at
1 September 31 August
2022 Income Expenditure Transfer 2023
£ £ £ £ £
ALW Foundation 2,453,013 - (137,766) - 2,315,247
The ArtsEd Student Fund 36,175 - (8,498) - 27,677
The ArtsEd Scholarship Fund 3,807 62,788 (55,600) - 10,995
Bursary fund 20,566 - - - 20,566
Capital campaign 397,872 - - - 397,872
Chris Hornby Fund 5,182 4,404 (2,500) - 7,086
The CMF Scholarship Fund 1,085 - - - 1,085
Guildford Academic 1,327 - - - 1,327
Associates
Leverhulme Trust 1,088 94,812 (99,544) 3,644 -
Restoration levy 40,778 - - - 40,778
Spencer Will Trust 2,338 - (1,247) - 1,091
TAP 7,404 232 - - 7,636
Graham Martin Memorial 6,811 300 (3,000) - 4,111
Excellence Award 23,463 38,000 (47,530) - 13,933
Friends Giving 22,569 22,011 - - 44,580
The Green Roof Fund 7,717 - (3,733) (3,984) -
------------------- ------------------ ----------------- ---------------- -------------------
3,031,195 222,547 (359,418) (340) 2,893,984
========= ========== ========== ========= =========

Please refer to note 19 for details of each of the restricted funds.

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