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2026-03-31-accounts

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Capital Theatres (A company limited by guarantee)

Annual report

and consolidated financial statements for the year ended 31 March 2026

Registered in Scotland No SC134619 Registered Scottish Charity No SC018605

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Capital Theatres

(A company limited by guarantee)

Annual report and consolidated financial statements for the year ended 31 March 2026

Contents

Reference and Administrative Details .............................................................................................................. 3 Trustees' report ........................................................................................................................................... 4-7 Strategic report .......................................................................................................................................... 8-14 Independent auditor's report .................................................................................................................... 15-17 Consolidated statement of financial activities ................................................................................................. 18 Company statement of financial activities ...................................................................................................... 19 Consolidated balance sheet .......................................................................................................................... 20 Company balance sheet ............................................................................................................................... 21 Consolidated statement of cash flows ........................................................................................................... 22 Company statement of cash flows ................................................................................................................. 23 Notes to the consolidated financial statements ......................................................................................... 24-35

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Capital Theatres

(A company limited by guarantee)

Reference and Administrative Details

Trustees / Directors

Professor Dame Joan K Stringer DBE FRSE Chair Lesley Drummond Vice Chair Michael Harrison Gillian Harkness-McKinlay Councillor Amy McNeese-Mechan Councillor Margaret Graham Tony Mills Neil Patey Martin Reynolds Finlay Russell James Saville Karyn Watt

The directors of the charitable company are its Trustees for the purposes of charity law.

Chief Executive

Fiona Gibson

Company Secretary

Crawford Hunt

Charity Number

SC018605

Company Number SC134619

Registered office

13/29 Nicolson Street Edinburgh EH8 9FT

Auditor

CT Audit Limited Chartered Accountants and Statutory Auditor 61 Dublin Street Edinburgh EH3 6NL

Solicitors

Shepherd & Wedderburn WS 9 Haymarket Square Edinburgh EH3 8FY

Bankers

Bank of Scotland The Mound Edinburgh EH1 1YZ

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Capital Theatres

(A company limited by guarantee) Trustees’ report for the year ended 31 March 2026

The Trustees, who are also Directors for charitable law purposes, present their report and the audited financial statements for the year ended 31 March 2026. This report is prepared in accordance with the Articles of Association and the Statement of Recommended Practice – Accounting and Reporting by Charities.

Objectives and Activities

Our Charitable Purposes, whether working on our own or collaboratively with others, are to:

Capital Theatres is the largest theatre charity in Scotland. We manage three venues in Edinburgh: Festival Theatre (1,915 seats), King’s Theatre (1,125 seats, reopening in summer 2026 following a major redevelopment) and Studio Theatre (155 seats). We offer a broad and inclusive programme featuring the very best in drama, dance, musical theatre, family shows, live music, comedy, and pantomime. We leverage the multiplicity of our stages and our extensive range of producer partnerships to ensure we continue to offer audiences access to work they can’t see anywhere else in Scotland, including international work and large-scale UK touring productions.

We offer an extensive programme of creative engagement activities designed to improve community wellbeing and reduce social isolation. It connects our audiences to the visiting companies on our stages and the heritage of our venues. We have three core areas of focus as follows:

We are a key creative force in Edinburgh, Scotland and beyond, fostering the creation of new work and supporting the resilience of the arts industry workforce with a wide range of opportunities. This is achieved by:

Our vision:

To share extraordinary live experiences with everyone, again and again.

Our mission:

To build a sense of belonging across our three venues in Edinburgh, through the strength of our creative programme and partnerships.

Our values:

We care We take a people-centred approach We go above and beyond so everyone feels welcome We are thoughtful, respectful, and sincere We share We are collaborative, transparent, and inclusive We truly listen and respond We are committed to widening access We dare We rise to any and every challenge We are ambitious in outlook We are courageous Together we deliver We have a 'can do' attitude and take pride in our professionalism When we collaborate, there is unmistakable energy We are trusted to deliver a quality experience every time

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Capital Theatres

(A company limited by guarantee) Trustees’ report for the year ended 31 March 2026 (continued)

Structure, Governance and Management

The Charitable Company is limited by guarantee and does not have share capital. It is registered as a charity in Scotland and governed by Articles of Association filed at Companies House. Members, of whom there are a minimum of six and a maximum of thirteen, are those individuals elected as Trustees. A maximum of two are Councillors of, and appointed by, City of Edinburgh Council, up to ten are elected by the Board from time to time, and up to one may be co-opted in the short term to take the place of an elected member during periods of illness or indisposition.

The Management of the Charitable Company is the responsibility of the Trustees who are appointed under the terms of the Articles of Association.

Elected Trustees may serve for three periods of three years before retiring. The Chair and the Vice Chair may serve one additional term of three years with a maximum of twelve years total service. Trustees are elected or co-opted based on a review by the Board Perspective committee to ensure that a wide range of skills and interests are represented on the Board as well as being representative of our communities. New Trustees meet with the Chair and the Chief Executive to be apprised of the Trust, its structure, governance, the content of its Articles of Association, the committee decision-making process, the business plan and recent financial performance. They are also given guided tours of our venues, afforded the opportunity to meet key staff, and encouraged to attend performances.

The Board of Trustees, which administers the Trust, is a unitary Board that meets approximately every eight weeks. The Trustees elect one of their number as Chair for a period of three years, which can be renewed. The Board appoints a Chief Executive, who is not a member of the Board, to deliver the strategic objectives set by the Board and manage the day to day operations of Capital Theatres. To facilitate effective operations, the Chief Executive has authority, within terms of delegation approved by the Trustees, for artistic performance and operational matters including finance and employment.

The Board is supported by sub-committees including those covering audit (Audit & Risk Committee), finance and risk (Resilience Committee), remuneration and board composition (Board Perspective Committee), and health and wellbeing (People & Wellbeing Committee). A Project Board also operates to help guide and advise on the scope and technical challenges inherent in the development and planning of the King’s Theatre redevelopment project.

The Chair conducts 1:1s with each Trustee every year as part of the review of the performance of the Board, undertaken annually.

We have two wholly owned subsidiaries. Capital Theatres Trading Limited operates the commercial bar, catering and conference facilities at all venues, donating its taxable surplus to Capital Theatres using Gift Aid. Capital Theatres King’s Limited will operate the redeveloped King’s Theatre on reopening.

Related Parties

As noted above, we have two wholly owned subsidiaries, whose Board members comprise our Chair and Chief Executive. We have a close relationship with City of Edinburgh Council, which regards us as an arms length entity and provides essential core funding for the artistic and creative engagement programme as an amenity for local residents and the public. The Council also acts as our landlord under lease agreements.

We are a minority shareholder in a touring consortium, Music & Lyrics Limited, which produces large scale touring musicals which visit the Festival Theatre.

We are members of the Dance Consortium Limited, the UK Touring Partnership and the Large Venues Group all of which curate and tour dance and dramatic productions respectively.

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Capital Theatres

(A company limited by guarantee) Trustees’ report for the year ended 31 March 2026 (continued)

Key Management Personnel and remuneration policy

We consider the Board of Trustees, the Chief Executive, and the Executive team to be the key management personnel of the charity as they are in charge of directing, controlling, running and operating the organisation on a day to day basis. All Trustees give of their time freely but can claim travel expenses for attendance at meetings. See note 10 for further details.

The Board Perspective Committee and People & Wellbeing Committee review the salaries of all staff each year, taking account of the financial performance of the Trust and achievement of key outcomes, together with benchmarking against salaries of comparable positions in the industry.

Reserves

The group’s unrestricted reserves increased during the year by £147,529 to £1,932,222. The group’s unrestricted reserve policy sets a target of £1,230,000 in Available Reserves as defined by OSCR (Unrestricted reserves less Fixed Assets). The £1,932,222 as at end of March 2026 in unrestricted reserves equates to £1,433,759 in Available Reserves. The Board has reviewed detailed projections and cashflows prepared by the Executive team and is confident that sufficient surplus can be earned in the short to medium term to provide adequate assurance that going concern can be maintained.

Designated funds represent the Theatres Development Fund (TDF), Musicals Commissioning Hub and the Creative Project reserve. TDF benefits from the ticket levy charged on the majority of tickets sold at our venues. Of the total designated funds balance of £8,047,544 (2025 - £7,554,731), £4,225,383 is already committed to projects and is being amortised over a period of up to fifty years in line with the life of the assets concerned. The remaining balance of £3,822,161 is providing funding for ongoing improvements to the Festival Theatre, King’s Theatre and the Studio Theatre, as well as funding work on the Musical Commissioning Hub and Creative Projects.

Restricted funds of £39,035,120 (2025 - £24,127,938) include the King’s Theatre redevelopment project, the Studio Theatre, and grants received to upgrade our wi-fi and broadband infrastructure. Further detail is provided in notes 19 to 21 of the financial statements.

Investment policy

During the year we reviewed our investment policy and agreed that unrestricted and restricted funds should remain held in minimum risk accounts or term deposit arrangements.

Statement of Trustees’ responsibilities

As Trustees (who are also Directors of Capital Theatres for the purposes of company law) we are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires us to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group, and the incoming resources and application of resources, including the net income and expenditure, of the charitable group for the year. In preparing the financial statements we are required to:

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Capital Theatres

(A company limited by guarantee)

Trustees’ report for the year ended 31 March 2026 (continued)

Statement of Trustees’ responsibilities (Continued)

We are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable us to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).

We are also responsible for safeguarding the assets of the charitable company and group and, hence, for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as we are aware:

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Capital Theatres

(A company limited by guarantee) Strategic Report for the year ended 31 March 2026

Achievement and Performance

2025-26 marked the second year of Capital Theatres’ new five-year strategy, centred on key strategic areas: Organisational Advancement, Creative Strategy, Audience Development, and Resilience.

We have developed an evaluation framework to provide a structured way to measure progress and performance year on year and ensure that we deliver on our strategic vision.

Below is a summary of our key achievements across each area this year:

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Capital Theatres (A company limited by guarantee) Strategic Report for the year ended 31 March 2026 (continued)

1. Organisational Advancement

Stewardship - we preserve and improve our theatres as major cultural and community hubs for the future

Culture - we strive to be a brilliant place to work, to perform, and to visit

Inclusivity - we aim to achieve genuine inclusion and a sense of belonging

2. Creative Strategy

Collaboration - we develop meaningful partnerships that collectively enhance our impact.

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Capital Theatres (A company limited by guarantee) Strategic Report for the year ended 31 March 2026 (continued)

Curation - we offer a programme of extraordinary live experiences for everyone, 2025/26 highlights include:

Spectacular musicals

Musical theatre continues to be a cornerstone of our programme, with much-loved classics and star-led productions delighting Festival Theatre audiences year-round. This year saw the whip-cracking Calamity Jane starring Carrie Hope Fletcher, alongside the Olivier-award winning revival of Fiddler on the Roof direct from the West End.

World-class dance

Festival Theatre remains Scotland’s leading stage for large-scale dance, with an ambitious and diverse programme from around the world. Matthew Bourne’s landmark reinvention of Swan Lake returned to celebrate its 30th anniversary, while Scottish Ballet delivered powerful storytelling in The Crucible and Mary Queen of Scots. The worlds of dance, rock music and heavy metal collided, with genre-defying performances of Quadrophenia: A Mod Ballet and Birmingham Royal Ballet’s Black Sabbath – The Ballet. Rambert’s KISMET, produced in associated with Capital Theatres, included the world premiere of Emma Evelein’s playful Gallery of Consequence, while performances from Ballet BC and Ballet Black showcased contemporary innovation. Carlos Acosta’s company Acosta Danza brought Cuban flair to Edinburgh in Nutcracker in Havana, Strictly fans enjoyed an evening with Anton & Giovanni and our first associate company, Barrowland Ballet, performed Wee Man in the Studio Theatre.

Gripping drama

Our drama offering brought together literary adaptations, gripping thrillers and major touring productions. Audiences laughed, gasped and cried along to inventive reinterpretations such as Pride and Prejudice (sort of) and Mischief’s A Christmas Carol Goes Wrong and classic storytelling in Little Women , alongside high-profile productions War Horse and To Kill a Mockingbird . Crime and suspense featured strongly in The Croft , Inspector Morse: House of Ghosts and Agatha Christie’s Death on the Nile , while new and contemporary voices were represented in the Studio Theatre through works including Common Tongue and Half Man Half Bull .

Live music

Our varied music programme spanned musical theatre heritage, live concerts and popular entertainment. Songwriter Tim Rice brought his celebrated career to life in My Life in Musicals , while singer-songwriter Lyle Lovett offered an intimate evening of storytelling and country music.

Dazzling opera

Scottish Opera returned with a rich programme of classic and lesser-known works, with classics La Bohème and The Merry Widow , alongside mixed bills including Trial by Jury and brand-new contemporary work The Great Wave .

Inviting community performances

Supporting local talent remains central to our mission. Community and amateur productions bring large casts and enthusiastic audiences to our stages, this year including Jesus Christ Superstar , Footloose , We Will Rock You , and the ever-popular Edinburgh Gang Show.

Family magic

Family audiences were entertained with a vibrant and imaginative programme. Highlights included literary adaptations The Lion, the Witch and the Wardrobe and the Percy Jackson musical The Lightning Thief , alongside festive favourites in Scottish Ballet’s The Snow Queen , the world premiere of Snowy and our final panto at the Festival Theatre Jack and the Beanstalk . Our rich Studio Theatre programme, including Float , Hopeful Monster and The Paper Dolls , offered engaging, accessible experiences for younger audiences and their families.

Empowerment - we build a sense of belonging and nurture everyone’s creative journey

We continued to develop our Creative Engagement programme across our core strands of Creative Pathways, Dementia Friendly Community, Heritage Preservation and Storytelling and Artist Support. We have also continued to build our relationships with communities through advisory panels and volunteering opportunities.

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Capital Theatres (A company limited by guarantee) Strategic Report for the year ended 31 March 2026 (continued)

Creative Pathways:

Dementia Friendly Programme

Heritage Preservation and Storytelling

Artist Support

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Capital Theatres (A company limited by guarantee) Strategic Report for the year ended 31 March 2026 (continued)

3. Audience Development

Growth - we sustainably grow our audiences

Depth - we build authentic and lasting relationships with our audiences

The result of our 25/26 audience post show survey include:

4. Cross-Cutting Themes

In addition to our strategic priorities, two cross-cutting themes underpin every aspect of our work: Environmental Sustainability and Equity, Diversity and Inclusion (EDI). These guiding principles are woven through our operations, programme, partnerships and organisational culture, ensuring we remain responsible, inclusive and future-focused.

Environmental Sustainability

Guided by the Theatre Green Book, we are addressing key emission sources, improving sustainability across our buildings, and embedding greener practices at every level.

During the financial year we made significant efforts to improve our sustainability:

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Capital Theatres (A company limited by guarantee) Strategic Report for the year ended 31 March 2026 (continued)

Equity, Diversity and Inclusion (EDI)

We are on a journey to build a truly inclusive organisation where everyone feels safe, welcome and represented. Our fiveyear EDI plan focuses on increasing diversity across our Board, workforce and programme, removing access barriers, and fostering a culture of equity and belonging. With expert support, we are committed to meaningful change that reflects and serves the communities around us.

Financial Review

The financial statements show a consolidated operating surplus of unrestricted general funds, after transfers, of £147,529.

Our revenue grant from City of Edinburgh Council (CEC) was maintained at £585,130 and we will work closely with CEC to ensure we continue to receive this essential support by delivering on our agreed targets set out in our funding agreement, to the benefit of audiences, artists and local residents.

As discussed elsewhere in this report, we received significant financial support from a variety of sources, a more detailed summary of which is included in note 4 to the Financial Statements. Our Friends and Patrons have also continued their much-appreciated contributions, support which goes way beyond the significant value of their donations. Their interest in, and willingness to be involved with what we do, especially those activities out with the day-to-day programme on our stages, such as our Creative Engagement activities, is immensely gratifying and provides us with extra impetus to achieve our considerable goals in equity, diversity and inclusivity.

Plans for Future Periods

As we head into a very exciting year for Capital Theatres, the reopening of the King’s Theatre will be a significant moment in time. Focused on presenting and producing an inspiring programme of shows for audiences new and returning, developing an exciting set of creative engagement opportunities for and with the communities we serve, whilst offering an open-all-day cafe meeting space for neighbours, visitors, friends, colleagues and creatives to share stories and conversation. The King’s will be re-established in its rightful place as ‘the people’s theatre’ in Edinburgh.

With all three venues back up and running for the latter half of 2026/27 we will drive forward our ambitious plans for collaborating with like-minded producing partners locally, nationally and internationally, co-producing and commissioning work of scale for touring inside Scotland and beyond. With a now established programme of artist support, we will continue to grow the opportunities for local artists to network, hone their craft and test and showcase their work.

The continued welcome funding from Creative Scotland and the City of Edinburgh Council will enable us to expand our three key strands of Creative Engagement - People Living with Dementia, Creative Pathways for young people and Heritage Storytelling - both inside our three venues and outside in the community, ensuring even broader access for all.

We will continue our journey of improving inclusivity, ensuring everyone feels welcome, ‘at home’ and represented across all areas of our business. We will work hard to delight our audiences, our staff and our visiting companies, remaining resilient as Scotland’s largest theatres charity, reinvesting what we earn into our work, our people, our buildings and our communities. Another exciting year ahead!

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Capital Theatres (A company limited by guarantee) Strategic report for the year ended 31 March 2026 (continued)

Principal Risks and Uncertainties

We have a comprehensive risk management process in place to identify and address the major financial, operational, governance, reputational and regulatory risks which may impact on our ability to meet our objectives. This includes the maintenance of a register which records the major risks, the mitigation controls in place, and the actions required, where appropriate. Management reviews and updates the register monthly, including compliance with General Data Protection Regulations.

The Resilience Committee has Trustee delegated authority to ensure that a review of the major risks, to which the charity is exposed, is conducted and that systems have been established to mitigate those risks. The Chair of the Resilience Committee reports to the Board on a regular basis on relevant matters.

Internal risks are minimised through use of a Delegated Authority Policy for approval of all material transactions and events, and review of quality of delivery for all operational aspects of the services provided by the Trust.

We have identified the following key risks:

These risks are subject to ongoing monitoring by the Resilience Committee and the Board of Trustees. We also have a strategic business plan with aims, objectives and key performance indicators that are monitored regularly by senior management and the Board to ensure the effective delivery of the plan and the management of risk.

Our Trustees’ Report and Strategic Report have been approved by the Board and are signed on our behalf by:

Professor Dame Joan K Stringer DBE FRSE

Trustee

9 June 2026

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Capital Theatres

(A company limited by guarantee) Independent auditor’s report to the members and Trustees of Capital Theatres (a company limited by guarantee)

Opinion

We have audited the financial statements of Capital Theatres (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2026 which comprise the Consolidated and Company Statement of Financial Activities, the Consolidated and Company Balance Sheets, the Consolidated and Company Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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.

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Capital Theatres

(A company limited by guarantee)

Independent auditor’s report to the members and Trustees of Capital Theatres (a company limited by guarantee)

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 6 and 7, the trustees (who are also the directors of the charitable company for the purposes of charity 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 group’s and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts.

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

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.

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Capital Theatres

(A company limited by guarantee)

Independent auditor’s report to the members and Trustees of Capital Theatres (a company limited by guarantee)

Auditor’s responsibilities for the audit of the financial statements (continued)

We gained an understanding of the legal and regulatory framework applicable to the charitable company and the industry in which it operates and considered the risk of acts by the charitable company which were contrary to applicable laws and regulations, including fraud. These included but were not limited to the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

We focused on laws and regulations that could give rise to a material misstatement in the charitable company’s financial statements. Our tests included, but were not limited to:

There are inherent limitations in an audit of financial statements and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Jeremy Chittleburgh BSc CA (Senior Statutory Auditor) For and on behalf of CT Audit Limited Chartered Accountants and Statutory Auditor 61 Dublin Street Edinburgh EH3 6NL

………………………………..

CT Audit Limited is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. 

03 August 2026

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Capital Theatres

(A company limited by guarantee) Consolidated statement of financial activities for the year ended 31 March 2026

(Incorporating a consolidated income and expenditure account)

Unrestricted Designated Restricted Total Total
Funds Funds Funds Funds Funds
2026 2026 2026 2026 2025
Notes £ £ £ £ £
Income and endowments
Donations and legacies
Grants and donations 4 1,030,380 - 13,838,919 14,869,299 9,256,445
Friends/Patrons/Sponsorship 373,432 4,037 1,076,843 1,454,312 1,766,624
Other trading activities
Commercial trading operations 5 1,779,745 - - 1,779,745 2,012,356
Investment income 6 353,733 - - 353,733 361,892
3,537,290 4,037 14,915,762 18,457,089 13,397,317
Income from Charitable activities
Operation of theatre income 7 11,963,946 611,885 - 12,575,831 16,806,524
Total Income 15,501,236 615,922 14,915,762 31,032,920 30,203,841
Expenditure:
Costs of raising funds
Fundraising costs of grants and donations 8 (193,212) - - (193,212) (185,469)
Commercial trading operations 5 (1,216,914) - - (1,216,914) (1,298,389)
(1,410,126) - - (1,410,126) (1,483,858)
Expenditure on Charitable activities
Operation of theatre costs - Kings (892) - - (892) -
Operation of theatre costs 9 (13,961,269) (113,109) - (14,074,378) (17,563,710)
Total expenditure (15,372,287) (113,109) - (15,485,396) (19,047,568)
Net income and net movement in funds
before transfers 128,949 502,813 14,915,762 15,547,524 11,156,273
Transfer between funds 19-21 18,580 (10,000) (8,580) - -
Net movement in funds for the year 147,529 492,813 14,907,182 15,547,524 11,156,273
Reconciliation of funds
Fund balance as at 1 April 2025 19-21 1,784,693 7,554,731 24,127,938 33,467,362 22,311,089
Fund balances as at 31 March 2026 19-21 1,932,222 8,047,544 39,035,120 49,014,886 33,467,362

All incoming resources and resources expended in 2026 were derived from continuing activities. The statement of financial activities includes all gains and losses recognised in the year.

A detailed analysis of the 2025 comparative figures is provided in note 25 of these statements.

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres

(A company limited by guarantee) Company statement of financial activities or the year ended 31 March 2026

(Incorporating a consolidated income and expenditure account)

Unrestricted Designated Restricted Total Total
Funds Funds Funds Funds Funds
2026 2026 2026 2026 2025
Notes £ £ £ £ £
Income and endowments
Donations and legacies
Grants and donations 4 1,030,380 - 13,838,919 14,869,299 9,256,445
Friends/Patrons/Sponsorship 373,432 4,037 1,076,843 1,454,312 1,766,624
Investment income 6 353,733 - - 353,733 361,892
Gift Aid from trading subsidiary 5 560,403 - - 560,403 705,631
2,317,948 4,037 14,915,762 17,237,747 12,090,592
Income from Charitable activities
Operation of theatre income 7 11,963,946 611,885 - 12,575,831 16,806,524
Total Income 14,281,894 615,922 14,915,762 29,813,578 28,897,116
Expenditure:
Costs of raising funds
Fundraising costs of grants and donations 8 (193,212) - - (193,212) (185,469)
Expenditure on Charitable activities
Operation of theatre costs 9 (13,961,269) (113,109) - (14,074,378) (17,563,710)
Total expenditure (14,154,481) (113,109) - (14,267,590) (17,749,179)
Net income and net movement in funds
before transfers 127,413 502,813 14,915,762 15,545,988 11,147,937
Transfer between funds 19-21 18,580 (10,000) (8,580) - -
Net movement in funds for the year 145,993 492,813 14,907,182 15,545,988 11,147,937
Reconciliation of funds
Fund balance as at 1 April 2025 19-21 1,773,221 7,554,731 24,127,938 33,455,890 22,307,953
Fund balances as at 31 March 2026 19-21 1,919,214 8,047,544 39,035,120 49,001,878 33,455,890

All incoming resources and resources expended in 2026 were derived from continuing activities. The statement of financial activities includes all gains and losses recognised in the year.

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres (A company limited by guarantee) Consolidated balance sheet as at 31 March 2026

2026 2025
Notes £ £
Fixed Assets
Tangible assets 12(a) 39,272,347 23,364,961
Current assets
Investments 13 - -
Stock 14 24,343 46,388
Debtors 15 667,194 404,936
Cash at bank and in hand 15,737,741 15,185,456
16,429,278 15,636,780
Creditors:amounts falling due within one year 17 (6,686,739) (5,534,379)
Net current assets 9,742,539 10,102,401
Net Assets 49,014,886 33,467,362
Funds
Unrestricted – general 19 1,932,222 1,784,693
Designated 21 8,047,544 7,554,731
Restricted 20 39,035,120 24,127,938
Total charity funds 22 49,014,886 33,467,362

The financial statements on pages 18 to 35 were approved by the Board of Trustees and authorised for issue on 9 June 2026 and were signed on its behalf by:

Professor Dame Joan K Stringer DBE FRSE Neil Patey Trustee Trustee

Registered in Scotland No SC134619

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres (A company limited by guarantee) Company balance sheet as at 31 March 2026

2026 2025
Notes £ £
Fixed Assets
Tangible assets 12(b) 39,272,347 23,364,961
Investments 13 3 3
39,272,350 23,364,964
Current assets
Investments 13 - -
Debtors 15 1,075,316 1,274,303
Cash at bank and in hand 13,935,455 14,305,297
15,010,771 15,579,600
Creditors:amounts falling due within one year 17 (5,281,243) (5,488,674)
Net current assets 9,729,528 10,090,926
Net Assets 49,001,878 33,455,890
Funds
Unrestricted – general 19 1,919,214 1,773,221
Designated 21 8,047,544 7,554,731
Restricted 20 39,035,120 24,127,938
Total charity funds 49,001,878 33,455,890

The financial statements on pages 18 to 35 were approved by the Board of Trustees and authorised for issue on 9 June 2026 and were signed on its behalf by:

Professor Dame Joan K Stringer DBE FRSE Neil Patey Trustee Trustee

Registered in Scotland No SC134619

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres

(A company limited by guarantee) Consolidated statement of cash flows for the year ended 31 March 2026

Notes 2026
£
2025
£
Net cash provided by operating activities
16,156,754
6,599,160
Cash flows from investing activities:
Interest received
6
353,733
361,892
Purchase of property, fixtures and fittings
12(a)
(15,958,202)
(10,920,400)
Disposal of property, fixtures and fittings
12(a)
-
-
Disposal of investments
13
-
-
Cash used in investing activities
(15,604,469)
(10,558,508)
Increase in cash and cash equivalents in the year
552,285
(3,959,348)
Cash and cash equivalents at 1 April 2025
15,185,456
19,144,804
Cash and cash equivalents at 31 March 2026
15,737,741
15,185,456
Reconciliation of net movement in funds to net cash flow from
operating activities
Notes
2026
£
2025
£		 16,156,754
6,599,160
353,733
361,892
(15,958,202)
(10,920,400)
-
-
-
-
(15,604,469)
(10,558,508)
552,285
(3,959,348)
15,185,456
19,144,804
15,737,741
15,185,456
Net movement in funds
Adjustments for:
Add back depreciation charges
12(a)
Deduct interest income shown in investing activities
6
Loss on investments
13
Decrease in stock
14
(Increase) in debtors
15
Increase/(Decrease) in creditors
17
_Net cash_providedby operating activities		 15,547,524
11,156,273
50,816
61,645
(353,733)
(361,892)
-
-
22,045
5,084
(262,258)
(133,480)
1,152,360
(4,128,470)
16,156,754
6,599,160

Accounting Standards require the Cash Flow Statement to be accompanied by an 'Analysis of Changes in Net Debt'. 'Net Debt' means debt finance less cash. The group had no debt finance during 2026 or 2025 and therefore its net debt is simply the negative of its cash balances. Accordingly, the change in net debt is apparent from the Statement of Cash Flows.

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres

(A company limited by guarantee) Company statement of cash flows for the year ended 31 March 2026

Notes 2026
£
2025
£
Net cash provided by operating activities
15,234,627
6,328,637
Cash flows from investing activities:
Interest received
6
353,733
361,892
Purchase of property, fixtures and fittings
12(b)
(15,958,202)
(10,920,400)
Disposal of property, fixtures and fittings
12(b)
-
-
Disposal of investments
13
-
-
Cash (used in)/ provided by investing activities
(15,604,469)
(10,558,508)
Increase in cash and cash equivalents in the year
(369,842)
(4,229,871)
Cash and cash equivalents at 1 April 2025
14,305,297
18,535,168
Cash and cash equivalents at 31 March 2026
13,935,455
14,305,297
Reconciliation of net movement in funds to net cash flow from
operating activities
Notes
2026
£
2025
£		 15,234,627
6,328,637
353,733
361,892
(15,958,202)
(10,920,400)
-
-
-
-
(15,604,469)
(10,558,508)
(369,842)
(4,229,871)
14,305,297
18,535,168
13,935,455
14,305,297
Net movement in funds
Adjustments for:
Add back depreciation charges
12(b)
Deduct interest income shown in investing activities
6
Loss on investments
13
Decrease/(Increase) in debtors
15
(Decrease) in creditors
17
_Net cash_providedby operating activities		 15,545,988
11,147,937
50,816
61,645
(353,733)
(361,892)
-
-
198,987
(418,108)
(207,431)
(4,100,945)
15,234,627
6,328,637

Accounting Standards require the Cash Flow Statement to be accompanied by an 'Analysis of Changes in Net Debt'. 'Net Debt' means debt finance less cash. The charity had no debt finance during 2026 or 2025 and therefore its net debt is simply the negative of its cash balances. Accordingly, the change in net debt is apparent from the Statement of Cash Flows.

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres

(A company limited by guarantee)

Notes to the consolidated financial statements for the year ended 31 March 2026

1 Company information and legal status

Capital Theatres is a company limited by guarantee with no share capital, incorporated in Scotland with registered company number SC134619. The registered office is 13/29 Nicolson Street, Edinburgh, EH8 9FT. The liability of each member in the event of winding up is limited to £1. There are currently 12 members (2025: 12). The financial statements have been presented in Pounds Sterling as this is the functional and presentational currency of the company.

2 Principal accounting policies

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Capital Theatres meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Basis of consolidation

These financial statements consolidate the results of the charity and its wholly owned subsidiaries, Capital Theatres Trading Limited and Capital Theatres King’s Limited (dormant).

Going concern

The Trustees consider the charitable company and group to be a going concern and the financial statements have been prepared on that basis. The future operations of the charitable company and group are dependent on the continued financial support of the core funding body and sufficient ongoing operating cash flow. Support from the core funding body has been confirmed until 31 March 2027. At the date of approval of these financial statements the Board is not aware of any reason why core funding would not be renewed in future years.

The Trustees are of the view that, at the date of approval of the financial statements, the group has sufficient reserves to continue to operate for the foreseeable future and have plans in place to mitigate any issues associated with any unforeseen circumstances.

Incoming resources

Voluntary income including donations, gifts and grants that provide core funding or are of a general nature are recognised where there is an entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when: -

Capital grants and donations are recognised in the year of receipt and treated as restricted funds, with subsequent depreciation on the relevant assets matched by a transfer from restricted funds to unrestricted funds. Depreciation on assets purchased using the Theatres Development Fund is matched by a transfer from designated funds to unrestricted funds.

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres

(A company limited by guarantee)

Notes to the consolidated financial statements for the year ended 31 March 2026

2 Principal accounting policies (continued)

Income from patrons, friends and sponsorship is recognised on receipt. Income from commercial trading activities is recognised as earned.

Investment income is recognised on a receivable basis.

Income from charitable activities includes income received under contract or, where entitlement to grant funding is subject to specific performance conditions, is recognised as and when it is earned. Income is deferred when ticket sales or performance related grants are received in advance of the performance to which they relate.

Resources expended

Expenditure is recognised when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods or services are supplied.

Significant judgements and estimation uncertainty

In the application of the company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. As the estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant, actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis and those that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for carrying amounts of tangible assets.

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 15 for carrying amount of debtors.

Tangible fixed assets

The cost of tangible fixed assets is their purchase cost together with any incidental expenses of acquisition. Depreciation is calculated to write off the cost of tangible fixed assets less their estimated residual values on a straight-line basis over the expected useful economic lives of the assets concerned. The principal annual rates used for this purpose are: -

Fixtures and fittings five years Computers three to five years Leasehold improvements over the term of the lease Leasehold asset fifty years

Fixed assets are not capitalised below £10,000 and other items are reviewed by management on an individual basis.

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres

(A company limited by guarantee)

Notes to the consolidated financial statements for the year ended 31 March 2026

2 Principal accounting policies (continued)

Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. The Charitable Company does not acquire put options, derivatives or other complex financial instruments.

Operating leases

Costs in respect of operating leases are charged on a straight-line basis over the lease term.

Stock

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

Debtors

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

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors

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

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Pension costs

The company makes pension contributions to employees' personal pension plans which are charged to the income and expenditure account when paid.

Taxation

The company is a charity for the purposes of Section 505 ICTA 1988 and is exempt from taxation on the whole of its income. The subsidiaries are not charities but have agreed to Gift Aid any taxable surplus of income over expenditure to Capital Theatres.

Restricted funds

These are funds from a donor or grant body that can only be used for a particular restricted purpose within the objects of the charity.

Designated funds

These funds consist of The Theatres Development Fund, which are funds set aside for the repair and renewal of Capital Theatres venues and the replacement of equipment, the Musical Commissioning Hub Fund and the Creative Projects reserve fund.

Unrestricted funds

These are funds which can be used in accordance with the charitable objects at the discretion of the Trustees. In particular circumstances the Board may reclassify reserves as appropriate.

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres

(A company limited by guarantee) Notes to the consolidated financial statements for the year ended 31 March 2026

3 Movement in total funds for the year

The movements in total funds for the year are stated after charging: -

2026 2025
£ £
Auditor’s remuneration
- As auditor 20,250 18,500
Operating leases:
- Festival Theatre - -
- King’s Theatre - -
Depreciation:
- Owned assets 50,816 61,645

4 Voluntary Income – Grants and Donations

Unrestricted
funds
£		 Designated
funds
£		 Restricted
funds
£		 2026
£		 2025
£
CEC Funding 585,130 - 10,000,000 10,585,130 8,136,130
Creative Scotland grant 445,250 - - 445,250 -
National Lottery Heritage Fund - - 1,838,919 1,838,919 1,120,315
UK Government - - 2,000,000 2,000,000 -
1,030,380 - 13,838,919 14,869,299 9,256,445

5 Commercial Trading operations

The company owns 100% of the issued share capital of Capital Theatres Trading Limited which provides bar, catering and front of house facilities at all venues, and pays management charges for heating, lighting and management provided by Capital Theatres staff. A summary of the trading results is shown below:

2026
£
2025
£
Turnover
Cost of sales and admin costs
Interest receivable
Net Profit/ (Loss)
Gift Aid		 1,779,745
2,012,356
(1,216,914)
(1,298,389)
-
-
562,831
713,967
(560,403)
(705,631)
Retained in subsidiary 2,428
8,336
The assets and liabilities of the subsidiary
Fixed Assets
Current Assets
Current Liabilities		 -
-
460,094
933,852
(446,192)
(922,378)
Total Net Assets 13,902
11,474
Aggregate Share Capital & Reserves 13,902
11,474

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres

(A company limited by guarantee)

Notes to the consolidated financial statements for the year ended 31 March 2026

6 Investment Income

2026 2025
£ £
Interest receivable 353,733 361,892

7 Income from Charitable activities

The income was primarily from the operation of the three theatres.

2026 2025
£ £
Unrestricted funds– concert, stage performance, box office &
ancillary income		 11,963,946 16,167,399
Designated funds– box office income 611,885 639,125
Total 12,575,831 16,806,524

8 Allocation of support costs

Capital Theatres allocates its support costs as shown in the table below. Support costs are allocated on a basis consistent with the use of resources.

Allocated to
Theatre Fundraising
Operation Costs of Grants Governance
(note 9) and Donations (note 9) Total
Support cost £ £ £ £
General office 338,772 193,212 63,265 595,249
Finance office 126,682 - - 126,682
Information technology 142,786 - - 142,786
External audit - - 20,250 20,250
Legal and other professional fees 27,199 - - 27,199
Total 635,439 193,212 83,515 912,166

9 Analysis of Expenditure on Charitable activities

Capital Theatres undertakes direct charitable activities only and does not make grant payments.

2026 2025
Notes £ £
Backstage and other production costs 10,198,621 13,833,279
Production/activity advertising, marketing & education 827,122 871,395
Box office 474,649 580,816
Course and activities 15,761 30,248
Depreciation 24,978 27,367
Central premises costs 1,701,184 1,505,840
Governance 8 83,515 77,971
Support costs 8 635,439 613,593
Unrestricted funds 13,961,269 17,540,509
Designated funds 113,109 23,201
Restricted funds - -
Total 14,074,378 17,563,710

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres

(A company limited by guarantee)

Notes to the consolidated financial statements for the year ended 31 March 2026

10 Employee information

(a) The average number of people employed by the Group during the year was:

2026 2025
Full time Part time Full time Part time
Customer Services 9 25 8 25
Marketing and Box office 15 3 15 5
Stage, stage door and maintenance 29 10 30 11
Administration 21 - 19 1
74 38 72 42

Part time numbers are represented on a full time equivalent basis.

(b) Employment costs - all employees: -

2026 2025
£ £
Aggregate gross wages and salaries paid to employees 3,894,139 3,913,586
Social security costs 459,770 357,733
Pension contributions 242,949 225,923
Total direct costs of employment 4,596,858 4,497,242

(c) The number of employees who earned greater than £60,000 during the year is as follows:

2026 2025
£60,001 - £70,000 2 -
£70,001 - £80,000 2 2
£80,001 - £90,000 - 2
£90,001 - £100,000 2 -
£150,001 - £160,000 1 1

(d) Key Management Personnel

For the purposes of this disclosure, the Key Management Personnel are defined as the Trustees, Chief Executive and the Executive team whose aggregate remuneration in the year was £514,584 (2025 - £471,543)

(e) Trustees’ emoluments

Trustees received no remuneration (2025: nil) and were paid £ nil (2025: £nil) travel expenses in the year.

11 Pension obligations

Capital Theatres makes pension contributions to employees' personal pension plans which are charged to the income and expenditure account when paid. The total cost of contributions during the year was £242,949 (2025: £225,923).

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres

(A company limited by guarantee)

Notes to the consolidated financial statements for the year ended 31 March 2026

12 Tangible fixed assets

(a) Group Leasehold Leasehold Fixtures and
assets Improvements Fittings Total
£ £ £ £
Cost
At 1 April 2025 1,495,695 43,418,152 1,516,838 46,430,685
Additions - 15,846,453 111,749 15,958,202
Disposals - - - -
At 31 March 2026 1,495,695 59,264,605 1,628,587 62,388,887
Depreciation
At 1 April 2025 511,753 21,349,359 1,204,612 23,065,724
Charge for year 25,838 - 24,978 50,816
Disposals - - - -
At 31 March 2026 537,591 21,349,359 1,229,590 23,116,540
Net book value
At 31 March 2026 958,104 37,915,246 398,997 39,272,347
At 31 March 2025 983,942 22,068,793 312,226 23,364,961
(b) Company Leasehold Leasehold Fixtures and
assets Improvements Fittings Total
£ £ £ £
Cost
At 1 April 2025 1,495,695 43,418,152 1,447,870 46,361,717
Additions - 15,846,453 111,749 15,958,202
Disposals - - - -
At 31 March 2026 1,495,695 59,264,605 1,559,619 62,319,919
Depreciation
At 1 April 2025 511,753 21,349,359 1,135,644 22,996,756
Charge for year 25,838 - 24,978 50,816
Disposals - - - -
At 31 March 2026 537,591 21,349,359 1,160,622 23,047,572
Net book value
At 31 March 2026 958,104 37,915,246 398,997 39,272,347
At 31 March 2025 983,942 22,068,793 312,226 23,364,961

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres

(A company limited by guarantee)

Notes to the consolidated financial statements for the year ended 31 March 2026

12 Tangible fixed assets (continued)

On 16 July 1992 Capital Theatres signed a 25-year lease for the Festival Theatre with Edinburgh District Council, predecessor of City of Edinburgh Council, who own the site. A new lease is still in the course of preparation by the Council. On 4 August 2011 Capital Theatres signed a 125-year lease for the site of The Studio on Potterrow with City of Edinburgh Council.

On 31 March 2023 Capital Theatres signed a 52-year lease for the King’s Theatre with the City of Edinburgh Council.

13 Investments

Investments in unlisted entities

Capital Theatres owns 100% of the ordinary shares of each of its trading subsidiaries:

It also holds one ordinary share (6.25%) in Music & Lyrics Ltd., a consortium of theatres which produces large scale touring musicals. Its cost of £1 has been written off.

14 Stock

Group
2026 2025
£ £
Bars, cafe, catering and kiosk 21,311 43,885
Ice Cream and Sweets 3,032 2,503
24,343 46,388

15 Debtors

Group Company Company
2026 2025 2026 2025
£ £ £ £
Amounts falling due within one year
Trade debtors 26,626 27,286 25,767 26,755
Prepayments and accrued income 640,568 377,650 634,106 370,875
Amounts due from subsidiary - - 415,443 876,673
667,194 404,936 1,075,316 1,274,303

16 Operating lease commitments

At 31 March 2026, the group had total future minimum commitments under non-cancellable operating leases, all of which are due to City of Edinburgh Council, of:

due to City of Edinburgh Council, of:
2026 2025
£ £
Expiring within one year 1 1
Expiring between two and five years 4 4
Expiring over five years 44 45

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres

(A company limited by guarantee)

Notes to the consolidated financial statements for the year ended 31 March 2026

17 Creditors: amounts falling due within one year

Group Company Company
2026 2025 2026 2025
£ £ £ £
Trade creditors 409,346 323,810 399,684 305,870
Other creditors, tax and social security 1,083,120 505,686 1,083,120 505,686
Accruals and deferred income 5,194,273 4,704,883 3,798,439 4,677,118
6,686,739 5,534,379 5,281,243
5,488,674

Other creditors, including tax and social security are made up as follows:

Group Company
2026 2025 2026 2025
£ £ £ £
Salary costs including taxation and
social security 96,312 87,320 96,312 87,320
Other creditors 986,808 418,366 986,808 418,366
1,083,120 505,686 1,083,120 505,686

Other creditors include settlements due to producers.

18 Capital and other commitments

Capital Theatres had contracted capital expenditure of £9,800,415 at 31 March 2026 (2025: £18,066,989) for the King’s redevelopment project. This is being funded through grants from the Scottish Government, City of Edinburgh Council, National Lottery Heritage Fund, UK Government, donations from individuals and trusts, and Capital Theatres own funds. Guarantees to promoters issued in the normal course of business at 31 March 2026 amounted to £607,200 (2025: £398,000).

19 Unrestricted funds

19 Unrestricted funds
Group Company
General £ £
At 31 March 2025 1,784,693 1,773,221
Profit for the year 128,949 127,413
Transferred from designated and restricted funds 18,580 18,580
At 31 March 2026 1,932,222 1,919,214

20 Restricted funds

At 31 March
Income		 Expenditure Transfers At 31 March
Group and company 2025
£		 £ £ out
£		 2026
£
The Studio 389,814 - - (8,580) 381,234
King’s redevelopment 23,738,124 14,915,762 - - 38,653,886
24,127,938 14,915,762 - (8,580) 39,035,120

The Studio: The cost of the construction and fitting out of The Studio on Potterrow was funded by donations from trusts and individuals, a grant from Creative Scotland and a contribution of £500,000 from the Theatres Development Fund. The reserve is being released annually over 50 years in line with the associated depreciation charges arising.

King’s redevelopment : Cost of redeveloping the theatre funded by grants from the Scottish Government, City of Edinburgh Council, National Lottery Heritage Fund, UK Government, donations from individuals and trusts.

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres

(A company limited by guarantee)

Notes to the consolidated financial statements for the year ended 31 March 2026

21 Designated funds

At 31 March Income Expenditure Amortisation At 31 March
Group and company 2025
£		 £ £ £ 2026
£
Theatres Development Fund 6,912,368 492,765 - (10,000) 7,395,133
Musicals Commissioning Hub 38,087 - (3,000) - 35,087
Creative Projects 604,276 123,157 (110,109) - 617,324
7,554,731 615,922 (113,109) (10,000) 8,047,544

The Theatres Development Fund is predominantly raised from a levy on the majority of ticket sales in our two principal venues and is currently being retained as seed funding for the King’s Theatre redevelopment project as well as other improvements required at the Festival Theatre or the Studio.

The Musicals Commissioning Hub’s aim is to collaborate with musicians, writers and artists to develop Scottish talent and cultural output, so that our stages become a home for great Scottish musicals year on year, which could ultimately be shared on tour with venues across the country.

The Creative project fund supports the development of several projects involving the company in co-production work in conjunction with Raw Material, Pitlochry Festival Theatre, and other partners.

22 Analysis of group net assets between funds

22Analysis of grou p net assets betw een funds
At 31 March 2026 Unrestricted Designated Restricted Total
£ £ £ £
Tangible Fixed Assets 498,463 4,225,383 34,548,501 39,272,347
Cash at Bank 6,562,533 3,822,161 5,353,047 15,737,741
Other current assets 691,537 - - 691,537
Liabilities (5,820,311) - (866,428) (6,686,739)
1,932,222 8,047,544 39,035,120 49,014,886
At 31 March 2025 Unrestricted Designated Restricted Total
£ £ £ £
Tangible Fixed Assets 531,887 1,055,952 21,777,122 23,364,961
Cash at Bank 6,335,861 6,498,779 2,350,816 15,185,456
Other current assets 451,324 - - 451,324
Liabilities (5,534,379) - - (5,534,379)
1,784,693 7,554,731 24,127,938 33,467,362

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres

(A company limited by guarantee)

Notes to the consolidated financial statements for the year ended 31 March 2026

23 Related party transactions

City of Edinburgh Council is a related party of Capital Theatres by virtue of the Council's representation on the Board of Trustees. During the year, City of Edinburgh Council invoiced Capital Theatres for the sum of £209,154 (2025: £228,156) in respect of foyer shop rentals and insurance with invoices raised to the Council for training, seminars, box office tickets and functions totalling £15,000 (2025: £nil). Balances outstanding at the year end to and from the Council totalled £128,550 (2025: £128,550) and £nil (2025: £ nil) respectively. Grant income of £10,585,130 (2025: £8,136,130) was received during the year.

Capital Theatres is a stakeholder in a touring consortium, Music & Lyrics Limited, which produces large scale musicals. During the year, Music & Lyrics Limited and its subsidiaries invoiced Capital Theatres for the sum of £nil (2025: £nil) for production fees and Capital Theatres raised invoices to them for £nil (2025: £3,500) for accounting, business planning and managerial support, and miscellaneous expenses. At the year end, Music & Lyrics Limited and its subsidiaries neither owed nor were owed any sums to/by Capital Theatres (2025 - £nil).

24 Subsequent Events

No subsequent events have been identified since the year end which would require disclosure in these financial statements.

Docusign Envelope ID: 4E07FE2E-1399-8FBF-8247-B753A8900686

Capital Theatres

(A company limited by guarantee)

Notes to the consolidated financial statements for the year ended 31 March 2026

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

(Incorporating a consolidated income and expenditure account)

Unrestricted Designated Restricted Total
Funds Funds Funds Funds
2025 2025 2025 2025
Notes £ £ £ £
Income and endowments
Donations and legacies
Grants and donations 4 585,130 - 8,671,315 9,256,445
Friends/Patrons/Sponsorship 260,535 8,708 1,497,381 1,766,624
Other trading activities
Commercial trading operations 5 2,012,356 - - 2,012,356
Investment income 6 322,142 39,750 - 361,892
3,180,163 48,458 10,168,696 13,397,317
Income from Charitable activities
Operation of theatre income 7 16,167,399 639,125 - 16,806,524
Total income 19,347,562 687,583 10,168,696 30,203,841
Expenditure:
Costs of Raising funds
Fundraising costs of grants and donations (185,469) - - (185,469)
Commercial trading operations 5 (1,298,389) - - (1,298,389)
Expenditure on Charitable activities (1,483,858) - - (1,483,858)
Operation of theatre costs 9 (17,540,509) (23,201) - (17,563,710)
Total expenditure (19,024,367) (23,201) - (19,047,568)
Net (expenditure)/income and net movement
funds before transfers		 in 323,195 664,382 10,168,696 11,156,273
Transfers between funds 19-21 18,580 (10,000) (8,580) -
Net income/(expenditure) 341,775 654,382 10,160,116 11,156,273
Unrealised (losses) on investments - - - -
Net movement in funds for the year 341,775 654,382 10,160,116 11,156,273
Reconciliation of funds
Fund balance as at 1 April 2023 19-21 1,442,918 6,900,349 13,967,822 22,311,089
Fund balances as at 31 March 2024 19-21 1,784,693 7,554,731 24,127,938 33,467,362

The statement above contains detailed analysis of the comparative figures noted in the consolidated statement of financial activities on page 18 of the financial

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Capital Theatres

(A company limited by guarantee)

This page does not form part of the audited financial statements

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Consolidated income and expenditure account for the year to 31 March 2026

Kings Trading Theatre Total Cons Total
2026 2026 2026 2026 2025
£ £ £ £ £
Turnover - 1,779,745 12,388,408 14,168,153 18,475,290
Cost of sales - (586,490) (7,923,800) (8,510,290) (12,380,276)
Gross profit - 1,193,255 4,464,608 5,657,863 6,095,014
Other income
Interest receivable - - 353,733 353,733 322,142
Grant income - - 1,030,380 1,030,380 585,130
Total other income - - 1,384,113 1,384,113 907,272
Expenditure
Salaries and wages (net of technical contras) - 584,624 3,388,258 3,972,882 3,802,935
Rent & rates - - 174,596 174,596 171,121
Repairs - - 780,176 780,176 509,463
Gas & electric - 43,200 472,856 516,056 553,080
Insurances - - 152,757 152,757 158,318
Books, Magazines & Subs - - 9,598 9,598 8,160
Post, printing, Stationery & copying - - 12,512 12,512 13,152
Telephone - - 27,356 27,356 25,898
Admin, computer expenses - - 142,786 142,786 118,023
Travel & subs - - 10,523 10,523 16,060
Recruitment & Training - - 30,879 30,879 33,888
Hospitality & entertaining - - 15,975 15,975 19,036
Subs & licences - - 8,264 8,264 4,759
Audit 850 2,600 16,800 20,250 18,500
Legal - - - - 3,252
Professional fees - - 27,199 27,199 30,047
Bank charges & interest 42 - 2,399 2,441 435
Marketing & promotion - - 239,703 239,703 262,020
Box Office exps (net) - - 164,218 164,218 235,697
Front of House - - 40,431 40,431 37,965
Development & education - - 99,028 99,028 151,466
Sundry costs - - 975 975 3,672
Stage - - 96,884 96,884 107,985
Irrecoverable VAT - - 316,723 316,723 332,514
Depreciation - - 50,815 50,815 61,645
Total expenses 892 630,424 6,281,711 6,913,027 6,679,091
Gift aid charge/income - (560,403) 560,403 - -
Operating Profit (892) 2,428 127,413 128,949 323,195