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← Music At Paxton

2025-09-30-accounts

Registered Charity Number: SC037392

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 FOR MUSIC AT PAXTON

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MUSIC AT PAXTON

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

Contents Page
Reference and administrative information 3
Report of the Trustees 4 - 13
Auditor’s report 14 - 17
Statement of financial activities 18
Balance sheet 19
Statement of cash flows 20
Notes to the financial statements 21 - 27

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MUSIC AT PAXTON

REFERENCE AND ADMINISTRATIVE INFORMATION

Charity name: Music at Paxton
Registered Charity Number: SC037392
Trustees:
General Manager:
Auditor: S&W Partners Audit Limited
Q Court, 3 Quality Street
Edinburgh
EH4 5BP
Investment advisers: Rathbones
10 George Street
Edinburgh
EH2 2PF
Bankers: CAF Bank Ltd
25 Kings Hill Avenue
Kings Hill, West Malling
Kent
ME19 4JQ

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MUSIC AT PAXTON

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2025

The trustees present their report and the financial statements of Music at Paxton for the year ended 30 September 2025. These have been prepared in accordance with applicable charities law and the requirements of ‘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 (FRS102) (effective 01 January 2019)’.

1. Objectives and activities

Music at Paxton is dedicated to bringing exceptional chamber music to the widest possible audience in the Scottish Borders and Northumberland area, allowing affordable access to world class music (particularly classical chamber music) in local settings throughout a region with little arts provision. Special emphasis is placed on providing opportunities for families and young children to engage with outstanding music and musicians, and supporting young professional musicians in the early stages of their careers.

The charity’s main activity is centred around a ten-day festival, held each July at Paxton House on the banks of the River Tweed in the Scottish Borders, five miles from England’s most northerly town of Berwick-upon-Tweed. Through its partnership with Live Music Now Scotland the charity also promotes free informal concerts in the spring, a pre-festival Family Concert, and a primary school project in nearby Duns. During the festival Live Music Now Scotland musicians are provided with performance opportunities in family-friendly folk events held in the marquee in the grounds of Paxton House.

The Festival is an important component in the cultural calendar, now achieving national acclaim and attracting visitors from across Scotland and the rest of the UK. Its unique character reflects its close relationship with Paxton House itself: the Picture Gallery where the main festival concerts are staged providing the perfect acoustic and intimate setting for chamber music.

2. Achievements and performance

2.1 2025 events

Music at Paxton presented a summer festival of live music performances at Paxton House from 18— 27 July, featuring internationally renowned musicians, those with growing reputations on the UK music scene, and young professionals in the early stages of their careers. Most of the concerts were presented in Paxton’s spectacular Picture Gallery, an outreach of the National Galleries of Scotland. Other more informal events were presented in the semi-permanent marquee in the grounds of Paxton House, overlooking the River Tweed, including opportunities for families and young children to engage with outstanding music and musicians. Two outreach events took place during the festival, one in the Parish Church in the nearby community of Duns, and the other in in the atmospheric 12th century Norham Church, just over the River Tweed from Paxton House. A third outreach event was held in June in The Straw Yard in nearby Berwickupon-Tweed, with a programme of music and storytelling aimed at families, with songs in Scots, English, Gaelic & BSL accompanied by traditional stepdance. Pre-festival activity in 2025 also included a school project with pupils of Duns Primary School in the months leading up to the festival.

Music at Paxton’s core repertoire is classical chamber music, and this season we welcomed established, celebrated performers to Paxton House’s Picture Gallery, including pianists Mee” the London Handel Players, and the Carducci and alsoConsone hostedString outstandingQuartetsyoung— the artistslatter,iiij iiiini i jal guests.the We Chloé Piano Trio. Repertoire stretched from the Renaissance to modern Minimalism.

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MUSIC AT PAXTON

REPORT OF THE TRUSTEES (continued)

“One of the most fabulous recitals | have been privileged to attend for many, many years.” (Edinburgh Music Review)

We continue to explore new strategies for attracting first-time attendees to concerts. Post-concert artist Q&As and a specially devised ‘Words and Music’ programme (with actressPo proved to be very popular, and our free concert with the local amateur Northumbria Chamber Choir attracted a record audience.

“Wonderful to have musicians of such quality performing at Paxton.” (Audience feedback 2025)

Our celebration of chamber music extends beyond classical styles, and this year we presented a series of events with talented folk musicians in partnership with our regular partners Live Music Now Scotland that included performances specifically devised for children and families. We also featured ‘The Southall Story’, an evening of British Asian music with three charismatic artists that climaxed with rousing ‘call and response’ participation from the enraptured audience.

“My son is 7 and loves music and there’s not much education at school... We both loved the Indian Music Workshop, thank you.” (Audience feedback 2025)

This year we increased the number and range of events that we took beyond Paxton House. A midweek sequence of inter-connected concerts featured events at Norham Church (a first-time venue) and Duns Parish Church (return visit) — the former wasa sell-out, attracting a high proportion of the audience from village residents. Additionally, we presented our Family Concert this year in advance of the festival in a newly opened venue (The Straw Yard) in nearby Berwickupon-Tweed. Attendance for this was disappointing and we will accordingly consider new ways to build a following for this event.

“Great intimate experience, thank you very much” (Audience feedback, family concert 2025)

We presented twenty-one events during the festival itself, as well as two ‘Music at Paxton Plus’ free taster con i ing. The festival programme included two pre-concert talks from Artistic Di (one on the festival’s opening night, the other ahead of the event wit o post-concert Q&A sessions (one with the Consone Quartet and guest nd the other with the three musicians who presented the ‘Southhall Story’ programme enabling our audiences to interact wit wie plogidiitic alu Ule MluUsiCialls Il ad Valicly Ul Ways.

We continue to explore creative ways to make our events affordable for the widest in audience, and in 2025, both our pre-festival taster concerts were free, as was the Northumbria Chamber Choir concert. For the Traditional Tunes for Tiny People sessions accompanying adults were free, with siblings half price. All other marquee events were free to concessions (under 18s, full time students, registered unemployed, disabled persons and their carers). Concessions for daytime events were reduced across the festival, and tickets for the concerts in Duns and Norham were offered at a discount for those also attending the evening concert at Paxton House with mezzo-soprano [NE Free tickets were available for young people (under 26) through the Cavatina Chamber Music Trust scheme for seven events across the festival.

2.2 Primary Schools Project

We were also delighted to host our second schools project over three days with P6 pupils and teachers from Duns Primary School. We addressed the areas for attention that came to light during last year’s project (i..e. the limited classroom experience of young musicians and the lack of school staff with music skills) by appointing a professional Learning and Participation Manager

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MUSIC AT PAXTON

REPORT OF THE TRUSTEES (continued)

to mentor pupils, staff and musicians. As a result, outcomes were improved from 2024, but we recognise there is still much work to be done.

The project introduced traditional Scottish folk music and dance to the pupils, and was supported by Live Music Now Scotland and Paxton House. It consisted of two days of workshops at the school, culminating in a celebratory performance for friends and family in the Paxton House marquee. The workshops were delivered by folk musicians PS singer and dancer) and | (violinist), supported by Learning and Participation Manager Pe Over the course of the project, the children learned to sing three traditional folk songs - two in Gaelic and one in Scots. Musician fF s deaf in one ear and uses British Sign Language (BSL) in her performances, so pupils also learned the corresponding BSL signs to accompany the songs, adding a valuable inclusive dimension to their performance, as well as supporting hand-eye coordination and multitasking. Pupils also learnt a traditional stepdance, and those who already had some basic skills on the violin learnt traditional fiddle playing techniques and accompanied the stepdancers for the final performance. The project fostered musical engagement, cultural appreciation, inclusivity, and performance skills in young learners.

2.3 Audience engagement & profile

We were pleased that after a relatively static year in 2024, the number of tickets sold in 2025 increased by 12.7%, with some concerts very close to selling out. Early booking by our Friends, Patrons and Benefactors in the priority booking period remained strong, and the majority of general booking took place either as soon as general booking opened, or close to the event itself. The post-pandemic pattern of late booking looks to be set as a general pattern for a portion of arts attenders, with many unwilling to commit until the last minute. Additionally our rural location means that for evening events audiences are unlikely to just turn up, making the potential for ‘walk up’ onsite bookings relatively low.

Music at Paxton continues to provide access to a high-quality cultural event in a geographical area where professional arts provision is poor. Analysis of 2025 box office data (see table above) showed that the single largest group of bookers are resident in the local Scottish Borders/

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MUSIC AT PAXTON

REPORT OF THE TRUSTEES (continued)

Northumberland area, these two groups together making up 55.1% of all bookers. A further 25.5% travelled from within approximately a one-hour travel area for the festival, from Edinburgh/East Lothian in the north (the next largest single group at 19% of all bookers) and Newcastle/Tyneside to the south (6.5% of all bookers).

90% of responders to the post-festival survey from outside the Borders/Northumberland area said that Music at Paxton had played a part in their decision to visit the area, indicating the festival is actively attracting tourism. 40% of all responders spent over £50 in the course of their visit, indicating the festival has the potential to positively impact on the local economy.

91% said they would return to Music at Paxton in future years, with the most frequently stated reason for not returning being that they had attended in 2025 to hear a particular artist or programme.

2.4 Online engagement

We currently have 818 followers on Facebook, an 8% increase on 2024. Due to the evolving nature of social media we deactivated our Twitter/X account in early 2025 and moved to Instagram, which has allowed us to interact more proactively with Music at Paxton visiting musicians and our audiences.

Our website was extensively updated and refreshed in the early spring ahead of the festival launch, making it more user-friendly and more reflective of the current organisation. Engagement with the new site has been high, with the site registering 48k events (i.e a website visitor clicking through to further information, or to book a ticket) since its launch. Tracking on the previous website had become inconsistent and unreliable so it is not possible to draw direct comparisons in terms of usage figures, but anecdotal evidence suggests bookers have found the new site much easier to navigate. We will continue to monitor the site usage moving forward to provide more robust year-by-year comparisons.

2.5 Volunteers

All Music at Paxton events are supported by volunteer stewards who perform an essential role in welcoming audiences to events and providing assistance as required to those who have access needs, e.g. wheelchair users. In 2025 fifteen volunteers donated a total of 106 hours to Music at Paxton as volunteer stewards. Local hosts also welcome musicians into their homes, providing them with accommodation during their festival appearances. In 2025 three local families donated artist accommodation, equivalent to a cost of £1,800.

3. Financial Review

3.1 Overview

The receipt of a legacy amounting to over £584,000 during the year changed the financial position of Music at Paxton from delicate to secure. This unexpected and very generous bequest from the estate of th n, a committed supporter of the charity, has provided sufficient funds for investment to generate increased income in the short term and the potential for long-term capital growth, while leaving a portion of the bequest as liquid funds to meet shorter-term financial challenges and fund further outreach projects. Receipt of this legacy was the key factor in the charity reporting a surplus of £552,059 this year.

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MUSIC AT PAXTON

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REPORT OF THE TRUSTEES (continued)

Beyond this significant receipt, the charity’s expenditure outstripped its income by £33,900. Income (excluding the bequest) at £102,123 (2024 - £96,607) did not have the benefit of almost £11,000 raised by a major appeal for funds in the previous year, but a shortfall in regular individual donations was compensated for by small increases in donations from Trusts and Foundations and grant funding. Ticket sales also increased, and investment of the bequest earned over £14,000.

Expenditure at £136,023 (2024 - £96,518) saw increases across all categories, significantly in Administration, where receipt of the bequest enabled the charity to increase the amounts paid to its freelance General Manager and Artistic Director to realistic levels reflecting actual hours worked, after years of nearly static fees. Activities funded were similar to those last year (free taster concerts, a Family Concert, the July Festival and two education projects), but more venues away from Paxton House itself were used, and the School Project benefitted from the employment of a dedicated Learning and Participation Manager.

Historically, Music at Paxton’s assets have been minimal, the main asset being its bank balance which for many years has fluctuated between around £7,500 and £25,000. Receipt of the bequest has enabled £425,000 to be invested in the Rathbones Charity Growth & Income Fund, which by the end of September had generated an unrealised investment gain of £1,819 to reach a value of £426,819. Bank balances totalled £139,384 (2024 - £13,691).

The trustees are mindful of the need to husband these new financial resources carefully. The bequest does present opportunities for involving the charity in more outreach work within the surrounding communities and mounting more events away from Paxton House itself; but at the same time the trustees will be exploring diverse funding avenues, the aim being to develop activities to reach a wider audience while maintaining sufficient funds to preserve the long-term future of the charity.

3.2 Unrestricted Income

Legacy income of £584,140 was clearly the major source of unrestricted income this year, dwarfing the £100,354 raised from other sources. However, Music at Paxton relies on several income streams to support its work, in particular donations. Income from donations was down by over £11,000 this year, but this was almost entirely due to 2024 having seen the benefit of a major one-off appeal for funds that raised £10,877. While regular donations from individuals were slightly down on 2024, generous support from several Trusts and Foundations meant that overall income from donations (excluding appeals) at £36,728 finished ahead of 2024’s comparable total of £34,701.

Grant funding from Creative Scotland increased slightly to £19,484 (2024 - £19,384), and income from the Festival itself, mainly ticket sales, increased by over 7.5% to £28,521 (2024 - £26,524). Investment of the bequest in short-term deposit accounts while steps were taken to select an investment manager helped add a further £14,422 in investment income (2024 - £424).

Additional to the above figures is the £1,819 unrealised gain earned on investments between the time of their purchase and the financial year-end.

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MUSIC AT PAXTON

REPORT OF THE TRUSTEES (continued)

3.3 Unrestricted expenditure

At £130,081 (2024 - £93,193), unrestricted expenditure was considerably higher than last year. Much of the increase is attributable to Administration costs, which at £52,352 (2024 - £33,248) are over 50% up on last year. The trustees had been aware for some time that the freelance General Manager and Artistic Director were not receiving adequate compensation for hours worked; receipt of the legacy enabled this situation to be rectified, helping retain their services to guide the trustees in the next stage of the charity’s development.

Governance costs also rose significantly to £7,445 (2024 - £146) due to incurring audit costs of £7,200. In previous years, the charity’s income has been sufficiently small that no audit has been required, but receipt of the legacy has sent income over the £500,000 audit threshold this year.

An increase in artist fees was necessary to keep musical standards at the level for which the Festival has become known. This year, artist accommodation and travel costs were especially high due to low availability from supporters of suitable pet-free accommodation for artists with allergies, meaning more accommodation had to be paid for. The cost of train fares from London to Berwick also rose substantially. These factors were behind the rise in Artist costs to £32,347 (2024 - £27,196).

Venue costs at £16,739 (2024 - £14,029) saw the effects of a higher charge for the use of Paxton House’s Picture Gallery and marquee, and one-off piano maintenance costs (shared with Paxton House). The 2025 total also includes the cost of two concert management assistants; in 2024, one was accounted for as a restricted expense (of £1,047) due to receipt of a restricted grant for that purpose - an experiment that worked so well that the charity itself funded the employment of a student concert assistant this year.

The rise in Ticket & Marketing costs to £20,014 (2024 - £17,888) was mainly due to an extensive and much overdue website update, which saw website costs increase to £2901 (2024 - £598). Box office commission costs increased by over 7% in line with increased ticket sales.

3.4 Restricted income and expenditure

This category arises because of two education projects for which funding was received purely for these purposes.

The School Project, which paid for two artists to hold sessions in Duns Primary School and then mount a performance involving the children at Paxton, received a grant of £2500 in 2024, of which £485 remained unspent and carried forward to 2025. Building on the previous year’s experience, a dedicated Learning and Participation Manager was hired for this year’s project to act as a liaison between the artists and the school, to ensure better educational outcomes. Costs associated with this project were £4,173 (2024 - £2,015).

The University Education project, giving Edinburgh University students the chance to gain industry-related experience and education, received grant funding from Edinburgh University of £1,769 (2024 - £1,310) which in each year matched the related expenditure incurred.

3.5 Investments

On receipt of the legacy, the trustees developed an Investment Policy to aid in selecting an investment manager and to establish key parameters for the investment. The agreed investment objectives were:

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MUSIC AT PAXTON

REPORT OF THE TRUSTEES (continued)

The trustees also agreed that certain types of investment should be excluded from its direct investments. Such investments are not in line with the charity’s values, and so the charity will not directly invest, and will seek to minimise indirect investment, in companies with corporate behaviour leading to:

Music at Paxton employs only investment managers who take into account environmental, social and governance factors in assessing whether to make an investment. The Fund selected for investment, Rathbones Core Investment Fund for Charities (recently restructured to become the Rathbones Charity Growth & Income Fund), has an ethical policy that is aligned with the policy laid out above. Its risk profile and investment objectives align with those of Music at Paxton.

While the trustees were seeking a suitable investment manager, bequest funds were invested in a number of Fixed term and Deposit accounts with a range of banks, administered by Flagstone. Assets on this platform are protected by the Financial Services Compensation Scheme and do not take market risk. Shortly before the financial year-end, all funds were transferred back from Flagstone and £425,000 invested in the Rathbones Charity Growth and Income Fund. By 30 September 2025 unrealised investment gains had added £1,819 to the investment value.

3.6 Principal risks and uncertainties

The trustees continue to review risks, uncertainties and mitigating measures, following an indepth review in 2023. The principal risks are considered to be:

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MUSIC AT PAXTON

REPORT OF THE TRUSTEES (continued)

3.7 Reserves

At 30 September, 2025 the charity held total funds of £564,998 (2024 - £12,939). None of these funds are restricted (2024 - £485 restricted).

In recent years, the trustees had established a designated fund to provide an internal source of funding to address extraordinary events and fund abnormal one-off expenses that would help build long-term resilience. Receipt of the unrestricted Bequest has boosted the General Fund to the extent that for the foreseeable future the General Fund should be of sufficient size to fund such expenses. Accordingly, the trustees have taken this £12,824 Resilience Fund back into the General Fund and have set up two new Designated Funds as a more helpful way of demonstrating the charity’s reserves policy and communicating the level of funds that it holds, namely:

The remaining reserves – the General Fund – are available to meet the day-to-day operations of Music at Paxton. It is the charity’s policy to maintain a sum in the General Fund sufficient to enable the forward planning of the next festival, and to provide a cushion to facilitate flexibility of programming in future years. Having reviewed the likely future operating costs, the trustees consider this figure to be £35,000, equating to approximately six months of normal operating expenditure. As at 30 September 2025, the free unrestricted reserves amounted to £133,179.

4. Plans for future periods

Our artistic plans for the next season are in process and the 2026 programme will feature the characteristic Paxton blend of musicians with an international reputation, established artists working in the UK, and promising young musicians. We will also continue to work with Live Music Now Scotland, providing a high-profile platform for early-career musicians living in Scotland, and taking music into the Scottish Border communities. We plan to continue developing our engagement with local schools following our 2025 project with Duns Primary School.

We continue to evaluate the scope of our activities and the ways in which we operate to ensure the long-term stability of Music at Paxton, so we can continue to provide world-class access to music and musicians in the underserved area of the Borders. Environmental sustainability remains a priority, and we continue explore ways to minimise our carbon footprint. Finally, widening access to all who wish to engage with our activities is particularly important to us, and we continue to work to engage existing and potential audiences from the local Borders and Northumberland communities, as well as contributing to the local tourism economy by encouraging festival visitors from outwith the area.

5. Structure, governance and management

Music at Paxton’s legal form converted to a Scottish Charitable Incorporated Organisation (a SCIO) on 25 March 2021. The charity was previously a Scottish charitable company limited by guarantee, registered company number SC305241 (Scotland), established in 2006. As a SCIO,

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MUSIC AT PAXTON

_________

REPORT OF THE TRUSTEES (continued)

its governing document is a constitution, and it has a single tier governance structure whereby the trustees are the members of the charity.

The SCIO has a Board of Charity Trustees which oversees all activities. Trustees are recruited for their wide range of professional and creative skills, and are drawn from both sides of the Border. The Board meets several times a year, and sub-committees drawn from members of the Board meet as required to assist with finance, investment, fundraising, marketing and education activities and provide guidance and support to the management team. Artistic planning of the festival is led by the Artistic Director, with guidance from the trustees. Day-to-day management of the charity’s affairs is the responsibility of the General Manager, with certain functions such as maintaining books of account and managing the charity’s Friends scheme being performed by trustees.

Requirements for new trustees are discussed at Board meetings. When Board positions become vacant, attempts are made to identify individuals with an appropriate skills base, whilst also aiming to ensure that the Board of Trustees is representative of the local community and users which it serves. Trustees are appointed by way of a resolution passed by majority vote at a board meeting. All new trustees are instructed in their responsibilities in line with OSCR and charity law requirements.

The fees of Music at Paxton’s key management personnel are agreed with reference to current rates for those in similar roles in the arts sector.

6. Reference and administrative details – see page 3

7. Statement of trustees’ responsibilities

The trustees are responsible for preparing the annual Report of the Trustees and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), and with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

The law applicable to charities in Scotland requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of its income and expenditure for that period. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that:

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MUSIC AT PAXTON

REPORT OF THE TRUSTEES (continued)

The trustees are also responsible for safeguarding the assets of the charity and, therefore, for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

ON BEHALF OF THE BOARD

==> picture [165 x 72] intentionally omitted <==

18 December 2025

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF MUSIC AT PAXTON

Opinion

We have audited the financial statements of Music at Paxton (the ‘charity’) for the year ended 30 September 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the Notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the trustees' annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material

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inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 12, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

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 report in accordance with the Act and relevant regulations made or having effect thereunder.

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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We assess the susceptibility of material misstatements within the charity’s financial statements, including obtaining an understanding of how fraud might occur by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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 is available on the FRC's website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-thefi/description-of-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report.

Other matter

The financial statements of Music at Paxton for the year ended 30 September 2024 were unaudited.

Use of our report

This report is made solely to the charity’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 charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

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S&W Audit

Statutory Auditor Chartered Accountants

Q Court 3 Quality Street Edinburgh EH4 5BP

Date: 22/12/2025

S&W Audit is eligible to act as auditor in terms of section 1212 of the Companies Act 2006.

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MUSIC AT PAXTON

Statement of Financial Activities for the year ended 30 September 2025

Notes
Income from:
Donations and grants
2
Legacies
3
Charitable activities: Music Festival
4
Income from other trading activities
Investments
5
Total Income
Expenditure on:
Raising funds
Charitable activities:
Artist costs
6
Venue costs
7
Ticket and marketing costs
8
Administration costs
9
Governance costs
10
Total Expenditure
Net operating
income/(expenditure)
Net gains/(losses) on investments
13
Net Income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£
56,212
584,140
28,521
1,199
14,422
684,494
1,184
32,347
16,739
20,014
52,352
7,445
130,081
554,413
1,819
556,232
(3,688)
552,544
12,454
564,998		 Restricted
Funds
£
1,769
-
-
-
-
1,769
-
1,306
80
-
4,556
-
5,942
(4,173)
-
(4,173)
3,688
(485)
485
-		 Total
2025
£
57,981
584,140
28,521
1,199
14,422
686,263
1,184
33,653
16,819
20,014
56,908
7,445
136,023
550,240
1,819
552,059
-
552,059
12,939
564,998		 Total
2024
£
68,772
-
26,524
887
424
96,607
686
28,572
15,189
17,888
34,037
146
96,518
89
-
89
-
89
12,850
12,939

The notes on pages 21 – 27 form an integral part of these financial statements

18

MUSIC AT PAXTON

Balance Sheet as at 30 September 2025

Notes
Fixed Assets
Investments
13
Current Assets
Debtors
14
Cash at Bank
Liabilities
Creditors: Amounts falling due within one year
15
Net current assets
Total Net Assets
Represented by:
Funds
16
Unrestricted funds
General Fund

Designated Fund
Restricted funds
Schools Project
Total Funds		 2025
£
426,819
7,445
139,384
146,829
8,650
138,179
564,998
133,179
431,819
564,998
-
564,998		 2024
£
-
5,145
13,691
18,836
5,897
12,939
12,939
(370)
12,824
12,454
485
12,939

The financial statements were approved by the Board of Trustees on 18 December 2025 and were signed on its behalf by:

==> picture [86 x 51] intentionally omitted <==

==> picture [78 x 12] intentionally omitted <==

----- Start of picture text -----
– Chair
----- End of picture text -----

The notes on pages 21 – 27 form an integral part of these financial statements

19

MUSIC AT PAXTON

Statement of cash flows for the year ended 30 September 2025

Note
Cash flows from operating activities
Net cash provided by (used in) operating activities
18
Cash flows from investing activities
Dividends, interest and rents from investments
Purchase of investments
Net cash provided by (used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 October 2024
Cash and cash equivalents at 30 September 2025
Analysis of cash and cash equivalents
Cash at bank and in hand		 2025
£
536,271
14,422
(425,000)
(410,578)
125,693
13,691
139,384
139,384		 2024
£
(12,330)
424
-
424
(11,906)
25,597
13,691
13,691

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. Music at Paxton had no debt finance during 2024/25 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 above.

The notes on pages 21 – 27 form an integral part of these financial statements

20

MUSIC AT PAXTON

Notes to the financial statements for the year ended 30 September 2025

1. Accounting policies

Basis of Accounting

The financial statements have been prepared in accordance with:

Music at Paxton meets the definition of a public benefit entity under FRS102. The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to the accounts. The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.

Fund accounting

Unrestricted funds may be spent or applied at the discretion of the trustees to further any of the charity’s purposes, including to offset expenditure from restricted funds. The trustees may choose to set aside part of the unrestricted funds as a designated fund for a particular future project or commitment. Restricted funds can be lawfully used only for the purpose specified by the donor or resulting from the terms of an appeal. Music at Paxton has five funds:

Unrestricted: General Fund – held for the general work of the charity Investment Fund – held for long-term capital appreciation New commissions fund – earmarked for commissions of new music

Income

All income is recognised in the Statement of Financial Activities when the charity is legally entitled to the income, it is probable that the income will be received, and its monetary value, including any associated costs, can be measured reliably. Income is deferred where the performance conditions attached have not been met during the period.

Expenditure

Expenditure is accounted for on an accruals basis, being recognised when there is a legal or constructive obligation to pay, where it is probable that settlement will be required, and where the amount of the obligation can be measured reliably. Expenditure has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Taxation

Music at Paxton is a Scottish Charitable Incorporated Organisation and therefore exempt from tax on income and gains applied to its charitable purposes. Basic rate UK income tax is recoverable in respect of gift-aided donations. The charity is not registered for Value Added Tax and therefore unable to reclaim VAT incurred on costs. Expenditure is shown in the Accounts gross, including irrecoverable VAT.

Financial instruments

Music at Paxton carries only basic financial assets and liabilities. These may comprise investments in securities, accounts receivable and payable, and cash deposited with banks. Financial assets and liabilities are initially valued at cost; subsequently, investment assets are valued at market valuation (excluding any costs of realisation or disposal) and other assets are valued at the best estimate of settlement amount.

21

MUSIC AT PAXTON

Notes to the financial statements for the year ended 30 September 2025 (continued)

Investments

Investments are stated at market valuation.

Gains and losses

Realised gains and losses on security investments are calculated as the difference between net sales proceeds and their valuation at the start of the year (or subsequent cost) and are recognised in the Statement of Financial Activities in the year of disposal.

Unrealised gains and losses represent the movement in market valuation during the year and are recognised in the Statement of Financial Activities based on market valuation at the year-end.

2. Income from donations and grants

Donations
Appeal donations
Gift Aid
Trusts and Foundations
Total donations
Grants
Total		 General
Fund
£
15,957
-
2,971
17,800
36,728
19,484
56,212		 Restricted
Funds
£
-
-
-
-
-
1,769
1,769		 2025
£
15,957
-
2,971
17,800
36,728
21,253
**57,981 **		 2024
£
16,391
10,877
3,290
17,520
48,078
20,694
68,772

Music at Paxton’s income from donations and grants generally comes with no restrictions on how it may be used in furthering the charity’s purposes. This year, however, income of £1,769 (2024: £1,310) arose to provide arts administration education to Edinburgh University students. No grant income (2024: £2,500) was received for the School Project Fund.

3. Income from legacies

ied during 2023, leaving a bequest to Music at Paxton. During 2025 £584,140 was received, of which the trustees decided to invest £425,000 for income and long-term capital appreciation, designating it as an Investment Fund. The trustees also agreed to designate £5,000 to fund a new commission to mark the charity’s twenty-fifth anniversary. The remainder of the funds are being held in liquid or near-liquid form pending the outcome of further trustee discussions about their use, and to sustain the charity’s current activities. While further income may be received from this bequest, the amount and timing of such a receipt are unknown.

4. Income from charitable activities (Music Festival)

Ticket sales
Programme sales
Total		 General
Fund
£
27,981
540
28,521		 Restricted
Funds
£
-
-
-		 2025
£
27,981
540
28,521		 2024
£
26,054
470
26,524

5. Income from investments

Funds on deposit earned interest of £14,422 (2024 - £424) during the year. This significant increase arose from the placing of bequest funds in short-term deposit accounts while steps were taken to select an investment manager.

22

MUSIC AT PAXTON

Notes to the financial statements for the year ended 30 September 2025 (continued)

6. Artist costs

6. Artist costs
Artist fees
Artist accommodation, travel and
expenses
Total
7. Venue costs
Venue hire
Staging and streaming
Concert management
Piano tuning and hire
Other
Total
8. Ticket and Marketing costs
Publicity and Marketing
Box office commission
Website
Other
Total
9. Administration costs
Artistic Director and General Manager
fees and expenses
Other
Total
10. Governance Costs
Audit fee
Other
Total		 General
Fund
£
26,140
6,207
32,347
General
Fund
£
7,707
3,676
1,990
2,096
1,270
16,739
General
Fund
£
12,647
4,451
2,901
15
20,014
General
Fund
£
51,481
871
52,352
General
Fund
£
7,200
245
7,445		 Restricted
Funds
£
1,200
106
1,306
Restricted
Funds
£
-
80
-
-
-
80
Restricted
Funds
£
-
-
-
-
-
Restricted
Funds
£
2,034
2,522
4,556
Restricted
Funds
£
-
-
-		 2025
£
27,340
6,313
33,653
2025
£
7,707
3,756
1,990
2,096
1,270
16,819
2025
£
12,647
4,451
2,901
15
20,014
2025
£
53,515
3,393
56,908
2025
£
7,200
245
7,445		 2024
£
24,124
4,448
28,572
2024
£
6,800
3,606
2,209
1,500
1,074
15,189
2024
£
12,931
4,145
598
214
17,888
2024
£
31,961
2,076
34,037
2024
£
-
146
146

Governance Costs are those costs necessary to provide the governance infrastructure which allows Music at Paxton to operate and to generate the information required for public accountability. Apart from the audit fee noted above, no other fees were paid or payable to the auditors for any other services to the charity (2024 – nil).

23

MUSIC AT PAXTON

Notes to the financial statements for the year ended 30 September 2025 (continued)

11. Related party transactions

During the year ended 30 September 2025, Music at Paxton entered into a contract for concert management services at the Music at Paxton Festival with one of its trustees, for which a fee of £1,080 was paid. This amount was calculated with reference to the number of hours work required at the national living wage. Music at Paxton’s Constitution permits such a transaction. Aside from this transaction, there were no payments to trustees in respect of remuneration, other benefits or mileage payments for the year ended 30 September 2025, nor for the year ended 30 September 2024. Donations of £130 have been received from trustees during the year (2024 - £3,165).

12. Key management personnel costs

Music at Paxton considers its key management personnel to be the Trustees, the Artistic Director and the General Manager. No Trustee received remuneration or benefits in respect of service as a trustee. One Trustee received a fee in respect of other service to Music at Paxton – see note 11. The charity contracted part-time freelance arts administrators as General Manager and Artistic Director at fees totalling £46,175 (2024: £27,752).

13. Investments

Carrying value at 1 October 2024
Purchased at cost
Unrealised gain on revaluation
Carrying value at 30 September 2025
comprising:
Rathbones Charity Growth & Income Fund
Rathbones Capital (cash) account
Total		 2025
£
-
425,000
1,819
426,819
415,792
11,027
426,819		 2024
£
-
-
-
-
-
-
-

The Charity’s investment policy is set out in the Trustees’ Report. The investments when purchased were made in Rathbones Core Investment Fund for Charities. This Fund was restructured to become the Rathbones Charity Growth & Income Fund and on 26 September 2025 the investments were transferred to this new fund, at no gain or loss. The investments are shown at fair value.

14. Debtors: Amounts falling due within one year

4. Debtors: Amounts falling due within one year
Other Debtors
Prepayments
Total		 2025
£
7,172
273
7,445		 2024
£
4,872
273
5,145

15. Creditors: amounts falling due within one year

5. Creditors: amounts falling due within one year
Accrued charges
Deferred income: donations
Deferred income: performance-related grant
Total		 2025
£
8,150
500
-
8,650		 2024
£
1,115
2,000
2,782
**5,897 **

The increase in accrued charges relates to audit fees. In the past, the charity’s income has been below the threshold at which an audit is required; however, the receipt of a generous bequest in 2025 has triggered the audit requirement, with its associated costs.

24

MUSIC AT PAXTON

Notes to the financial statements for the year ended 30 September 2025 (continued)

15. Creditors: amounts falling due within one year (continued)

The deferred donation of £2,000 from 2024 was fully recognised as income in 2025. A new donation of £500 intended to fund 2026 activities has been deferred until 2026.

Part of a performance-related grant was deferred at 30 September 2024 pending fulfilment of its conditions. During 2025, £1,013 was repaid to the grantor, with the remaining £1,769 being fully recognised as income in 2025.

16. Funds and summary of fund movements

6. Funds and summary of fund movements
Restricted Funds
Unrestricted Funds
Designated Funds
General Fund
Total Funds		 As at
01.10.24
£
485
12,824
(370)
12,454
12,939		 Net
Movement
in Funds
£
(485)
418,995
133,549
552,544
552,059		 As at
30.09.25
£
-
431,819
133,179
564,998
564,998

Net movement in funds included in the above is as follows:

Restricted Funds
School Project
Fund
University
Education Fund
Unrestricted Funds
Designated Funds
Resilience Fund
Investment Fund
New commissions
General Fund
Total Funds		 Income
£
-
1,769
1,769
-
-
-
-
684,494
686,263		 Expense
£
4,173
1,769
5,942
-
-
-
-
130,081
136,023		 Gains
£
-
-
-
-
1,819
-
1,819
-
1,819		 Transfers
£
3,688
-
3,688
(12,824)
425,000
5,000
417,176
(420,864)
-		 Movement
in funds
£
(485)
-
(485)
(12,824)
426,819
5,000
418,995
133,549
552,059

The receipt of a large bequest has triggered a reorganisation of Music at Paxton’s Designated Funds. Previously, one Designated Fund existed, to provide an internal source of funding to address extraordinary events and fund abnormal one-off expenses that would help build long-term resilience. Receipt of the unrestricted Bequest has boosted the General Fund to the extent that for the foreseeable future the General Fund should be of sufficient size to fund such expenses. Accordingly, the trustees have decided to redesignate this Resilience Fund as part of the General Fund.

The trustees have also decided to set up two new Designated Funds as a more helpful way of demonstrating the charity’s reserves policy and communicating the level of funds that it holds, namely:

25

MUSIC AT PAXTON

Notes to the financial statements for the year ended 30 September 2025 (continued)

16. Funds and summary of fund movements (continued)

Prior year comparatives for movement in funds:

As at
01.10.23
£
Net
Movement
in Funds
£
Restricted Funds
-
485
Unrestricted Funds
Designated Fund
12,824
-
General Fund
26
(396)
12,850
(396)
Total Funds
12,850
89
Comparative net movement in funds included in the above is as follows:
Restricted Funds
Income
£
Expense
£
School Project Fund
2,500
2,015
University
Education Fund
1,310
1,310
3,810
3,325
Unrestricted Funds
Designated Fund
Resilience Fund
-
-
General Fund
92,797
93,193
Total Funds
96,607
96,518		 As at
30.09.24
£
485
12,824
(370)
12,454
12,939
Movement
in funds
£
485
-
485
-
(396)
89

17. Analysis of net assets between funds

Investments
Debtors
Cash at bank
Creditors
Total		 General
Fund
£
-
7,445
134,384		 Designated
Funds
£
426,819
-
5,000
431,819
-
431,819		 Restricted
Funds
£
-
-
-
-
-
-		 Total
Funds
£
426,819
7,445
139,384
141,829
8,650
133,179		 573,648
8,650
564,998

Prior year comparatives for analysis of net assets between funds:

Debtors
Cash at bank
Creditors
Total		 General
Fund
£
5,145
(2,400)		 Designated
Fund
£
-
12,824
12,824
-
12,824		 Restricted
Funds
£
-
3,267
3,267
2,782
485		 Total
Funds
£
5,145
13,691
2,745
3,115
(370)		 18,836
5,897
12,939

26

MUSIC AT PAXTON

Notes to the financial statements for the year ended 30 September 2025 (continued)

18. Reconciliation of net income/(expenditure) to net cash flow from operating
2025
£
Net income for the year
552,059
Adjustments for:
(Gains) on investments
(1,819)
Dividends, interest and rents from investments
(14,422)
(Increase)/decrease in debtors
(2,300)
Increase/(decrease) in creditors
2,753
Net cash provided by (used in) operating activities
536,271		 activities
2024
£
89
-
(424)
385
(12,380)
(12,330)

27

MUSIC AT PAXTON

DETAILED STATEMENT OF INCOME & EXPENDITURE FOR THE YEAR ENDED 30 SEPTEMBER 2025

NDED 30 SEPTEMBER 2025
Unrestricted Restricted 2025 2024
£ £ £ £
INCOME
Donations and grants
Donations (including sponsorship) 15,957 - 15,957 16,391
Appeal donations - - - 10,877
Gift Aid 2,971 - 2,971 3,290
18,928 - 18,928 30,588
Trusts and Foundations 17,800 - 17,800 17,520
Grants 19,484 1,769 21,253 20,694
56,212 1,769 57,981 68,772
Bequest 584,140 - 584,140 -
Income from charitable activities (Music Festival)
Ticket & programme sales (all events) 28,521 - 28,521 26,524
Other trading activities(interval drinks, 1,199 - 1,199 887
advertising)
Investment income- interest 14,422 - 14,422 424
TOTAL INCOME 684,494 1,769 686,263 96,607
EXPENDITURE
Raising funds 1,184 - 1,184 686
Charitable Activities
Artist costs
Artist fees 26,140 1200 27,340 24,124
Artist accommodation, travel and expenses 6,207 106 6,313 4,448
32,347 1,306 33,653 28,572
Venue costs
Venue hire 7,707 - 7,707 6,800
Staging & streaming 3,676 80 3,756 3,606
Box office 1,990 - 1,990 2,209
Piano tuning and hire 2,096 - 2,096 1,500
Other 1,270 - 1,270 1,074
16,739 80 16,819 15,189
Ticket and marketing costs
Publicity and marketing 12,647 - 12,647 12,931
Box office commission 4,451 - 4,451 4,145
Other (incl. website) 2,916 - 2,916 812
20,014 - 20,014 17,888
Administration
Artistic Director/General Manager fees/expenses 51,481 2,034 53,515 31,961
Governance (mainly Audit Fees) 7,445 - 7,445 146
School project administration & travel costs - 2,522 2,522 468
Other 871 - 871 1,608
59,797 4,556 64,353 34,183
TOTAL EXPENDITURE 130,081 5,942 136,023 96,518
NET INCOME/(EXPENDITURE) 554,413 (4,173) 550,240 89

This page does not form part of the statutory financial statements

28