ROYAL ACADEMY OF DANCE ENTERPRISES LTD.

Company Registration Number:
02773495 (England and Wales)

Unaudited statutory accounts for the year ended 31 July 2024

Period of accounts

Start date: 1 August 2023

End date: 31 July 2024

ROYAL ACADEMY OF DANCE ENTERPRISES LTD.

Contents of the Financial Statements

for the Period Ended 31 July 2024

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

ROYAL ACADEMY OF DANCE ENTERPRISES LTD.

Directors' report period ended 31 July 2024

The directors present their report with the financial statements of the company for the period ended 31 July 2024

Principal activities of the company

The company is the publishing and distribution arm for the Royal Academy of Dance and its Examination Board. It retails examination syllabi in various media including Apps, as well as recommended uniform wear, teaching resources, dance-related products and gift items, commercial venue hire income and royalty income through licensing contracts. Its products are sold and distributed through its website, mail order, printed catalogues, book distributors, Royal Academy of Dance branches and a shop outlet located within The Royal Academy of Dance headquarters in Battersea. The company generated a profit after interest but before gift aid and tax of £94,504 (2023: £530,686). Turnover increased in 2024 to £454,355 (2023: £417,349). As a result, gross profit reduced by 6% on the previous year to 58% (2023: 64%). The gross profit was £263,140 (2023: 268,118), with other income at £636,467 (2023: £572,045). Operating costs were £781,536 (2023: £288,806), the increase is due to the introduction of central support charges. Other operating income is made up of royalty income arising out of licensing agreements with approved manufacturers, commission earned from sales of Apps through i-Tunes and Google Play, and property and studio hire. Licensing income of £191,995 (2023: £203,597) has decreased due to renegotiation of the contracts. Property and studio hire income of £191,385 (2023: 125,736) has increased due to a stronger emphasis on sales efforts and enhanced marketing strategies.

Political and charitable donations

The annual profits are donated to the Royal Academy of Dance by Gift Aid in each accounting period. The amount donated in 2024 was £93,750 (2023: £529,800). In 2011 the directors agreed that 2% of gross sales less discounts and excluding sales to branches of the Royal Academy of Dance should be set aside from the gift aid to the Academy to build up a Social Responsibility Fund to assist economically disadvantaged customers of the Academy to access its services as part of the Academy’s commitment to meet its public benefit requirement. Of the overall gift aid payment to the Academy, the directors agreed in 2024 that £9,087 is paid as a donation to the Social Responsibility Fund (2023: £8,347). Royal Academy of Dance Enterprises Limited Annual Report and Financial Statements for the year ended 31 July 2024. The directors do not recommend the payment of a final dividend (2023: £nil) and no dividend was paid or declared during the year (2023: £nil)

Additional information

Post-balance sheet events and future prospects There are no post-balance sheet events that affect the year in question. Directors The directors who served throughout the year and up to the date of the report are shown on page 1. Directors’ indemnities The company has made qualifying third-party indemnity provisions for the benefit of its directors, which were made during the year and remain in force at the date of this report. Going concern and banking The company made a profit before tax and gift aid of £94,504 during the year (2023: £530,686), and has net current assets of £14,920 as at 31 July 2024 (2023: £11,775). The company meets its day-to-day working capital requirements through trading. The directors have made enquiries and have reasonable expectation that the company will continue to generate adequate resources from existing and new products to continue operational existence for the foreseeable future; being 12 months from the date of signing this report. The directors, therefore, continue to adopt the going concern basis in preparing the financial statements of the company. The company is expected to perform in line with budget in 2024/25. Additionally, the directors have received a confirmation of support from the Royal Academy of Dance to ensure the company can meet its liabilities as they fall due for a period of at least 12 months from signing these financial statements. As at 31 July 2024, Royal Academy of Dance Enterprises Ltd had not utilised any of the £300,000 overdraft facility available. The overdraft facility was renewed for a further year in December 2024. Following discussions with HSBC, the directors believe that this facility will be renewed for another year per the standard annual renewal process. DIRECTORS’ RESPONSIBILITIES STATEMENT The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards Royal Academy of Dance Enterprises Limited Annual Report and Financial Statements for the year ended 31 July 2024 and applicable law) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the company for that period. In preparing these accounts, the directors are required to: - select suitable accounting policies and then apply them consistently.; - make judgements and estimates that are reasonable and prudent; and - prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Information to auditor Each of the persons who is a director at the date of approval of this report confirms that: - so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware; and - each of the directors has taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2016



Directors

The directors shown below have held office during the whole of the period from
1 August 2023 to 31 July 2024

Ashish Sharma
Timothy Gwion Arthur
Sue Bacchus


Secretary Renu Randhawa

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
16 January 2025

And signed on behalf of the board by:
Name: Ashish Sharma
Status: Director

ROYAL ACADEMY OF DANCE ENTERPRISES LTD.

Profit And Loss Account

for the Period Ended 31 July 2024

2024 2023


£

£
Turnover: 454,355 417,349
Cost of sales: ( 191,215 ) ( 149,231 )
Gross profit(or loss): 263,140 268,118
Distribution costs: ( 58,827 ) ( 55,244 )
Administrative expenses: ( 722,709 ) ( 233,562 )
Other operating income: 636,467 572,045
Operating profit(or loss): 118,071 551,357
Interest payable and similar charges: ( 23,567 ) ( 20,671 )
Profit(or loss) before tax: 94,504 530,686
Tax: ( 736 ) ( 798 )
Profit(or loss) for the financial year: 93,768 529,888

ROYAL ACADEMY OF DANCE ENTERPRISES LTD.

Balance sheet

As at 31 July 2024

Notes 2024 2023


£

£
Fixed assets
Intangible assets:   0
Tangible assets: 3 1,176 4,302
Total fixed assets: 1,176 4,302
Current assets
Stocks: 4 239,855 150,984
Debtors: 5 151,480 170,675
Cash at bank and in hand: 233,970 318,416
Total current assets: 625,305 640,075
Creditors: amounts falling due within one year: 6 ( 610,386 ) ( 628,300 )
Net current assets (liabilities): 14,919 11,775
Total assets less current liabilities: 16,095 16,077
Total net assets (liabilities): 16,095 16,077
Capital and reserves
Called up share capital: 2 2
Profit and loss account: 16,093 16,075
Total Shareholders' funds: 16,095 16,077

The notes form part of these financial statements

ROYAL ACADEMY OF DANCE ENTERPRISES LTD.

Balance sheet statements

For the year ending 31 July 2024 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

This report was approved by the board of directors on 16 January 2025
and signed on behalf of the board by:

Name: Ashish Sharma
Status: Director

The notes form part of these financial statements

ROYAL ACADEMY OF DANCE ENTERPRISES LTD.

Notes to the Financial Statements

for the Period Ended 31 July 2024

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

    Turnover policy

    Turnover represents amounts derived from the sales of examination syllabi, music and related material which fall within the company’s ordinary activities as stated in the Directors’ Report, and includes delivery charges but excludes value added tax

    Tangible fixed assets depreciation policy

    Tangible fixed assets are stated at cost net of depreciation and any provision for impairment. Depreciation is provided on cost in equal annual instalments over the estimated useful lives of the assets. The rates of depreciation are as follows: - Furniture and office equipment 10% per annum - Computer equipment 33% per annum The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. A tangible fixed asset is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising on the disposal or scrappage of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in income.

    Other accounting policies

    General information and basis of preparation Royal Academy of Dance Enterprises Limited (RADE) is a company incorporated under the Companies Act 2006. The company is a private company limited by shares and is registered in England and Wales and incorporated in the United Kingdom. The company meets the definition of a qualifying entity under FRS 100 Application of Financial Reporting Requirements issued by the Financial Reporting Council. The financial statements have been prepared under the historical cost convention and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) The Financial Reporting Standard applicable in the UK and Republic of Ireland issued by the Financial Reporting Council. Exemptions have been taken in relation to financial instruments and presentation of a cash flow statement. The financial statements are prepared in pounds sterling which is the functional currency of the Company. Going concern The company continues to adopt the going-concern basis in preparing these financial statements. The company made a profit before tax and gift aid of £94,504 during the year (2023: £530,686), and has net current assets of £14,920 as at 31 July 2024 (2023: £11,775). The company meets its day-to-day working capital requirements through an overdraft and trading. The directors have made enquiries and have reasonable expectation that the company will continue to generate adequate resources from existing and new products to continue operational existence for the foreseeable future; being 12 months from the date of signing this report. The directors, therefore, continue to adopt the going concern basis in preparing the financial statements of the company. The company is expected to perform in line with budget in 2024-25. Additionally the directors have received a confirmation of support from the Royal Academy of Dance to ensure the company can meet its liabilities as they fall due for a period of at least 12 months from signing these financial statements. As at 31 July 2024, Royal Academy of Dance Enterprises Ltd had not utilised any of the £300,000 overdraft facility available. The overdraft facility was renewed for a further year in December 2024. Following discussions with HSBC, the directors believe that this facility will be renewed for another year per the standard annual renewal process. Foreign currencies Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date and gains or losses on translation are included in the profit and loss account. Recognition of income Income from sales of products is recognised in the profit and loss on a delivery basis, net of any discount and VAT. App, property and studio hire and royalty income is recognized on an accruals basis. Stocks Stocks are stated at the lower of cost and net realisable value. Work in-progress represents the development costs of new products which form part of the basis of the cost of sale when the product is sold. Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal. Pension schemes Employees of RADE belong to the Royal Academy of Dance Stakeholder and Auto-Enrolment Pension Schemes with Aegon Scottish Equitable for which attributable costs are charged to the profit and loss account in the period in which they become payable. Taxation Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Financial assets and liabilities Financial assets and liabilities are recognised with the company becomes party to the contractual provision of the instrument. Cash and cash equivalents Cash and cash equivalents in the balance sheet comprise cash at banks and in hand. Debtors Short-term debtors are measured at transaction price, less any impairment. Judgments and key sources of estimation uncertainty In the application of the Company’s accounting policies, which are described in this note, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. 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. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. In the opinion of the directors, there were no critical judgments in the application of accounting policies in preparing the financial statements which are likely to result in a material change in the next financial year. There is uncertainty in the estimation of the recoverability of the stock held on the balance sheet and the related provision required against the cost of the stock, which will be impacted by the level of future sales

ROYAL ACADEMY OF DANCE ENTERPRISES LTD.

Notes to the Financial Statements

for the Period Ended 31 July 2024

  • 2. Employees

    2024 2023
    Average number of employees during the period 7 6

ROYAL ACADEMY OF DANCE ENTERPRISES LTD.

Notes to the Financial Statements

for the Period Ended 31 July 2024

3. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 August 2023 6,700 23,695 30,395
Additions
Disposals
Revaluations
Transfers
At 31 July 2024 6,700 23,695 30,395
Depreciation
At 1 August 2023 5,898 20,195 26,093
Charge for year 325 2,801 3,126
On disposals
Other adjustments
At 31 July 2024 6,223 22,996 29,219
Net book value
At 31 July 2024 477 699 1,176
At 31 July 2023 802 3,500 4,302

ROYAL ACADEMY OF DANCE ENTERPRISES LTD.

Notes to the Financial Statements

for the Period Ended 31 July 2024

4. Stocks

2024 2023
£ £
Stocks 239,855 150,984
Total 239,855 150,984

ROYAL ACADEMY OF DANCE ENTERPRISES LTD.

Notes to the Financial Statements

for the Period Ended 31 July 2024

5. Debtors

2024 2023
£ £
Trade debtors 16,790 43,570
Prepayments and accrued income 94,129 40,090
Other debtors 40,561 87,015
Total 151,480 170,675

ROYAL ACADEMY OF DANCE ENTERPRISES LTD.

Notes to the Financial Statements

for the Period Ended 31 July 2024

6. Creditors: amounts falling due within one year note

2024 2023
£ £
Trade creditors 59,870 36,601
Taxation and social security 736 790
Accruals and deferred income 19,208 43,271
Other creditors 530,572 547,638
Total 610,386 628,300