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Registered number: 09073223









LONDON THEATRE COMPANY HOLDINGS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
J D S Booth 
L M Dorfman 
N R Hytner 
N F Starr 
G H Weston (resigned 11 March 2025)
T Yeung Siu Tung 




Registered number
09073223



Registered office
C/O Womble Bond Dickinson (UK) LLP
4 More London Riverside

London

SE1 2AU




Independent auditors
BKL Audit LLP
Chartered Accountants & Statutory Auditor

35 Ballards Lane

London

N3 1XW





 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
 
1 - 3
Directors' Report
 
 
4 - 5
Independent Auditors' Report
 
 
6 - 9
Consolidated Statement of Comprehensive Income
 
 
10
Consolidated Statement of Financial Position
 
 
11
Company Statement of Financial Position
 
 
12
Consolidated Statement of Changes in Equity
 
 
13
Company Statement of Changes in Equity
 
 
14
Consolidated Statement of Cash Flows
 
 
15 - 16
Notes to the Financial Statements
 
 
17 - 40


 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Introduction
 
The Directors present their strategic report on the affairs of London Theatre Company group (the ‘Group’) for the 52-week period to 30 September 2024 (the ‘period’).

Strategic review
 

The principal activity of the Group continued to be that of producing new theatrical productions and running the Bridge Theatre. The period was the seventh year of operations at the Bridge since its opening in October 2017 as London's first wholly new commercial theatre of scale to be built in eighty years. The year also saw creative and international growth in Lightroom, LTC's co-venture in its premises at King's Cross. 
We write this report shortly after the successful opening of 
Richard II and as we've announced for the  the Bridge a continuing programme through 2025 and 2026 of high-definition classics in fixed runs. To follow Richard II comes a revival of the immersive A Midsummer Night's Dream, one of the Bridge's big hits from 2019 -- and giving the 100,000 new bookers we've accumulated with Guys & Dolls a treat to return for. Also announced and selling strongly is the Sondheim/Lapine musical Into The Woods directed by Jordan Fein and designed by Tom Scutt, who were responsible for last summer's big musical hit Fiddler on the Roof at the Open Air Theatre. For the remaining production for the year we have the director Simon Stone who we hope will make his home in London with us.
Our return to the programming model of four productions a year has been timely. The Bridge holds an increasing appeal for actors, directors and audience, and the advance bookings for 
Richard II were strong when we announced the show in June 2024. It had sold half its tickets before it opened. Its in-the-round format has produced the highest seated capacity at 1,041 seats, playing to full houses. 
The decision to extend 
Guys & Dolls -- a huge hit with critics and audiences in its first runs --  for the second time to the end of 2024 was a mistake in hindsight: a dip in audiences over its second summer led to a loss for the year of £4.248m. Total gross tickets sales over the year were at £12.36 m, compared to a prior year of £ 13.46m. Theatre tax credits are also a significant contributor to our financial model and our claim for the year was £573k  (22/23 £1.55 m). Trading operations improved this year with food and bar sales of 1.438m (22/23 1.189m) Lightroom opened at the same time as Guys & Dolls and has synergies with the creative and business innovations of LTC while on a track towards scale and international expansion. Iit is now in its second fundraising round to finance a growing slate of IP and collaborations which has included David HockneyTom Hanks and Vogue, and will in the near term include Prehistoric PlanetDavid Bowie and Aardman.
LTC is also now moving ahead with a wholly-owned film development arm, Tower Bridge Films, which will primarily commission and develop screenplays for Nicholas Hytner to direct and, on occasion, to produce for other directors. 
We remain deeply grateful to those who have worked tirelessly over the year running 
Guys & Dolls and bringing Richard II production to life. We continue to be grateful to the Culture Recovery Fund whose loan has remained a crucial source of support and to the Treasury for the enhanced Theatre Tax Relief which has made a material difference in our ability to stage our productions.

Page 1

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Principal risks and uncertainties
 
Commercial risk & financial sustainability
The Group’s principal risk is a downturn in theatre attendance and the failure to achieve box office targets, through unsuccessful productions or due to the impact of the economic climate on theatre attendance in general.  This financial risk has been exacerbated by the increase in the costs of production including, but not limited to, rises in costs of staging, utilities and the cost of employing people especially with the increases in London Living wage and the recent National Insurance increases. The risk is mitigated by the continuing increase in London theatre audiences over the mid- and long-term.
We are committed to offset this risk by continuing to attract our loyal audience and new customers with distinctive and high-quality productions utilising our unique auditorium. Further mitigation comes through annual budgeting, monthly management reporting, regular reviews of pricing and reviews of our business model with the Board.
Cash flow risk
The challenges of the last 6 months of this financial year meant that we breached the covenants of the Culture Recovery Fund Loan and were unable to make a repayment due in September 2024 and in February & March 2025. We have updated the Arts Council regularly on our financial performance and cash flow and we are in negotiations with the Culture Recovery fund to re-profile our loan. We are hopeful that we will have come to a new agreement by the summer of 2025 and remain committed to repaying our loan back whilst ensuring the financial stability of the London Theatre Company. 
Credit risk
Credit risk is mitigated as the Group largely operates it own ticketing, with sales to the general public settled at the point of purchase and low credit risk on its merchant provider. A small number of sales are made via their part agents, though strong contractual protection and close monitoring of debtors limits risk.
Health, safety & security risk 
The Group mitigates the inherent risks of theatre production and presentation (e.g. manual handling) and the challenges of operating busy public venue through a robust management and reporting structure for safety issues, staff training and investigation of near misses and incidents, drawing on specialist external support where required.
 

Financial key performance indicators
 
The Group considers its key financial performance indicators to be turnover and profit before tax. Details of these can be found on page 10 of these financial statements

Page 2

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Other key performance indicators
 
The Directors also examine the performance and position of the business by reference to a range of non-financial metrics, including productions and overall performance numbers, attendances and occupancy and total ticket sales.


This report was approved by the board and signed on its behalf.





N F Starr
Director

Date: 24 March 2025

Page 3

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

The directors present their report and the audited financial statements for the year ended 30 September 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated audited financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare audited financial statements for each financial year. Under that law the directors have elected to prepare the audited financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the audited financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these audited financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the audited financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the audited financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Company is that of a holding company for the London Theatre Company group, set up to develop and run independent theatres in London and produce new and distinctive theatrical productions.

Results and dividends

The loss for the year, after taxation, amounted to £4,248,182 (2023 - profit £59,064).

Directors

The directors who served during the year were:

J D S Booth 
L M Dorfman 
N R Hytner 
N F Starr 
G H Weston (resigned 11 March 2025)
T Yeung Siu Tung 

Page 4

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

Under section 487(2) of the Companies Act 2006BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





N F Starr
Director

Date: 24 March 2025

Page 5

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONDON THEATRE COMPANY HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of London Theatre Company Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 30 September 2024 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Material uncertainty related to going concern


We draw attention to note 2.3 in the financial statements, which indicates that the Company and Group's forecasted cashflow projections for the 12 months from the date of signing indicate that the Group's cashflow position is expected to remain positive, thus enabling them to meet all debts arising as they fall due, however this is dependent on the renegotiated payment terms and covenants of the Cultural Recovery Fund being accepted by the Arts Council, who have advanced a sum of £6.5m to the Group. While the Cultural Recovery Fund has previously confirmed to the directors its intention to continue to support cultural organisations such as the London Theatre Company, it is still the legal position that the Fund could require immediate repayment of these loans following a breach of this covenant and defaulting on the current repayment terms. If the Cultural Recovery Fund did choose this course of action, the Group would need to find alternative funding to meet this liability, resulting in a material uncertainty that could cast significant doubt on the Group's or the Company's ability to continue as a going concern.


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate if these terms are successfully renegotiated. Our opinion is not modified in respect of this matter.


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


Page 6

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONDON THEATRE COMPANY HOLDINGS LIMITED (CONTINUED)


Key audit matters
Except for the matter described in the Material uncertainty related to going concern section, we have determined that there are no other key audit matters to be communicated in our report. 


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 7

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONDON THEATRE COMPANY HOLDINGS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors 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 directors 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 directors are responsible for assessing the Group's and the parent 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 directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 Group 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:
Enquiring of management around actual and potential litigation and claims;
Reviewing minutes of meetings of those charged with governance;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risks of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.


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.


As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Page 8

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONDON THEATRE COMPANY HOLDINGS LIMITED (CONTINUED)


Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statementsWe are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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 Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Myfanwy Neville FCA (Senior Statutory Auditor)
  
for and on behalf of
BKL Audit LLP
 
Chartered Accountants
Statutory Auditor
  

25 March 2025
Page 9

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024


2024
2023
Note
£
£

  

Turnover
 4 
14,573,566
15,247,103

Cost of sales
  
(10,718,507)
(9,316,807)

Gross profit
  
3,855,059
5,930,296

Administrative expenses
  
(8,822,097)
(7,596,227)

Other operating income
 5 
398,088
417,751

Operating loss
 6 
(4,568,950)
(1,248,180)

Share of profit of joint venture
  
-
(99)

Total operating loss
  
(4,568,950)
(1,248,279)

Interest receivable and similar income
  
58,371
30,140

Interest payable and similar expenses
 10 
(310,268)
(272,811)

Loss before taxation
  
(4,820,847)
(1,490,950)

Tax on loss
 11 
572,665
1,550,014

(Loss)/profit for the financial year
  
(4,248,182)
59,064

(Loss)/profit for the year attributable to:
  

Owners of the parent Company
  
(4,248,182)
59,064

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 17 to 40 form part of these financial statements.

Page 10

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
REGISTERED NUMBER: 09073223

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
13,937,684
14,224,593

Investments
 14 
1
1

  
13,937,685
14,224,594

Current assets
  

Stocks
 2.16 
16,155
26,718

Debtors
 15 
2,483,041
3,689,439

Bank and cash balances
  
533,462
1,781,756

  
3,032,658
5,497,913

Creditors: amounts falling due within one year
 16 
(6,857,005)
(5,389,353)

Net current (liabilities)/assets
  
 
 
(3,824,347)
 
 
108,560

Total assets less current liabilities
  
10,113,338
14,333,154

Creditors: amounts falling due after more than one year
 17 
(7,968,511)
(7,944,606)

  

Net assets
  
2,144,827
6,388,548


Capital and reserves
  

Called up share capital 
 19 
885
885

Share premium account
 20 
15,999,135
15,999,135

Capital redemption reserve
 20 
15
15

Other reserves
 20 
124,260
119,799

Profit and loss account
 20 
(13,979,468)
(9,731,286)

  
2,144,827
6,388,548


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




N F Starr
Director

Date: 24 March 2025

The notes on pages 17 to 40 form part of these financial statements.

Page 11

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
REGISTERED NUMBER: 09073223

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 14 
104
104

  
104
104

Current assets
  

Debtors
 15 
30,197,290
28,299,056

Cash at bank and in hand
  
328,402
1,467,800

  
30,525,692
29,766,856

Creditors: amounts falling due within one year
 16 
(8,970,639)
(7,944,376)

Net current assets
  
 
 
21,555,053
 
 
21,822,480

Total assets less current liabilities
  
21,555,157
21,822,584

  

Creditors: amounts falling due after more than one year
 17 
(6,589,483)
(6,578,577)

  

Net assets
  
14,965,674
15,244,007


Capital and reserves
  

Called up share capital 
 19 
885
885

Share premium account
 20 
15,999,135
15,999,135

Capital redemption reserve
 20 
15
15

Other reserves
 20 
124,260
119,799

Profit and loss account
  
(1,158,621)
(875,827)

  
14,965,674
15,244,007


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


N F Starr
Director

Date: 24 March 2025

The notes on pages 17 to 40 form part of these financial statements.

Page 12
 

 
LONDON THEATRE COMPANY HOLDINGS LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024



Called up share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss account
Equity attributable to owners of parent Company
Total equity


£
£
£
£
£
£
£



At 1 October 2022
885
15,999,135
15
63,650
(9,790,350)
6,273,335
6,273,335





Profit for the year
-
-
-
-
59,064
59,064
59,064


Credit relating to equity-settled share based payment
-
-
-
56,149
-
56,149
56,149





At 1 October 2023 (as previously stated)
885
15,999,135
15
119,799
(9,720,951)
6,398,883
6,398,883


Prior year adjustment - correction of error
-
-
-
-
(10,335)
(10,335)
(10,335)



At 1 October 2023 (as restated)
885
15,999,135
15
119,799
(9,731,286)
6,388,548
6,388,548





Loss for the year
-
-
-
-
(4,248,182)
(4,248,182)
(4,248,182)


Credit relating to equity-settled share based payment
-
-
-
4,461
-
4,461
4,461



At 30 September 2024
885
15,999,135
15
124,260
(13,979,468)
2,144,827
2,144,827



The notes on pages 17 to 40 form part of these financial statements.

Page 13

 

 
LONDON THEATRE COMPANY HOLDINGS LIMITED


 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024



Called up share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss account
Total equity


£
£
£
£
£
£



At 1 October 2022
885
15,999,135
15
63,650
(602,340)
15,461,345





Loss for the year
-
-
-
-
(273,487)
(273,487)


Credit relating to equity-settled share based payment
-
-
-
56,149
-
56,149





At 1 October 2023
885
15,999,135
15
119,799
(875,827)
15,244,007





Loss for the year
-
-
-
-
(282,794)
(282,794)


Credit relating to equity-settled share based payment
-
-
-
4,461
-
4,461



At 30 September 2024
885
15,999,135
15
124,260
(1,158,621)
14,965,674



The notes on pages 17 to 40 form part of these financial statements.

Page 14
 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit/(Loss) for the financial year
(4,248,182)
59,064

Adjustments for:

Depreciation of tangible assets
437,933
430,646

Interest paid
310,268
272,811

Interest received
(58,371)
(30,140)

Taxation charge
(572,665)
(1,550,014)

Decrease in debtors
108,453
28,940

Decrease/(increase) in amounts owed by joint ventures
120,596
(594,368)

Increase in creditors
1,534,970
446,552

Corporation tax received
1,550,014
1,092,835

Movement in share options
4,461
56,149

Decrease/(Increase) in stocks
10,562
(12,921)

Net cash generated from operating activities

(801,961)
199,554


Cash flows from investing activities

Purchase of tangible fixed assets
(151,144)
(105,666)

Sale of tangible fixed assets
121
-

Interest received
58,371
30,140

Net cash from investing activities

(92,652)
(75,526)
Page 15

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024


2024
2023

£
£



Cash flows from financing activities

Repayment of other loans
(43,419)
-

Interest paid
(310,268)
(272,811)

Net cash used in financing activities
(353,687)
(272,811)

Net (decrease) in cash and cash equivalents
(1,248,300)
(148,783)

Cash and cash equivalents at beginning of year
1,781,756
1,930,539

Cash and cash equivalents at the end of year
533,456
1,781,756


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
533,462
1,781,756

Overdrawn petty cash
(6)
-

533,456
1,781,756


The notes on pages 17 to 40 form part of these financial statements.

Page 16

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.


General information

The principal activity of the London Theatre Company group ("the Group") is set up to develop and run independent theatres and produce new and distinctive theatrical productions.
The principal activity of the Company is that of a holding company for the London Theatre Company group.
The Company is a private company limited by shares and is incorporated in England and Wales.
The principal place of business is the Bridge Theatre on 3 Potters Fields Park, London SE1 2SG.
The registered office address is C/O Womble Bond Dickinson (UK) LLP, 4 More London Riverside, London, United Kingdom, SE1 2AU.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 17

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.3

Going concern

The directors have assessed whether the Company and the Group have adequate resources to meet their obligations as they fall due and beyond the 12 months from the date of the approval of these financial statements, considering in particular the challenges that the past three years have posed for the Company and the wider Group's activities.
The Group made a loss for the year of £4,248,182 and had, as at the Statement of Financial Position date, a net asset position of £2,144,827. The Company has an outstanding shareholder loan, advanced pre-pandemic to facilitate cash flow management, as well as £6.5m in debt from the Culture Recovery Fund.   The Board undertakes scenario planning and financial cashflow modelling on an ongoing basis, covering at least 12 months from the date of signing of the financial statements, to ensure they keep abreast of the group’s financial position.
 
However, it is still the case that post-pandemic changes in audience booking patterns and increases in the Group’s cost base over the past three years, mean that to meet their obligations as they fall due and beyond the 12 months from the date of approval of these financial statements, the Company and the Group are reliant on the inflow of theatre tax credits (to be received following submission of tax returns after the approval of these financial statements), and the continued support of its investors. In particular, the Group are aware that while these forecasts show the ability of the Company to continue to meet its debts as they fall due, however in order to do this they need to renegotiate the repayment terms of the Cultural Recovery Fund loan, and will be reliant on the Culture Recovery Fund’s continued support, so as not to withdraw this funding.  Should the Culture Recovery Fund choose to withdraw the funding, the Company would need to seek alternative sources of funding in order to meet its debts as they fall due.
In light of all of the above, the directors have prepared these accounts on a going concern basis.

Page 18

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 19

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Sale of tickets
Revenue from ticket sales is recognised on the date of the performance for which the tickets were purchased.
Membership sales
Revenue from membership sales accrues evenly over the period of membership.
Cinema streaming
Revenue from cinema streaming is recognised whilst the shows are being broadcasted.
Other income
Other income relates to food, beverage and merchandise sales. Revenue is recognised at the point of sale.
Other income also relates to management recharges for services incurred on behalf of group companies. Revenue is recognised over the time the service is provided.
Other income also relates to co-production income that relates to productions created with other production companies. Revenue is recognised when the performance obligations of the contracts have been met.
BBC Production income
Income in relation to the BBC production contract is recognised in accordance with the various phases of the project as detailed in the legal agreement.
Foreign transmission income
Income from the foreign transmission of the Talking Heads productions is recognised on the broadcast date. 
Theatre commission income
Revenue is recognised on a production by production basis, on the date of the press night, as this is when the Company has fulfilled its obligation under the terms of the production commissioning agreement. 

Page 20

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term.

 
2.7

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

Page 21

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.10

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.



 
2.11

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


Page 22

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.12

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Development expenditure
-
5
years

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
5-50 years straight line
Fixtures and fittings
-
3-50 years straight line
Computer equipment
-
3 year straight line
Theatre technical equipment
-
5 year straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 23

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

Associates and joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Statement of Financial Position, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy.

 
2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

  
2.17

Production costs

Production costs, including rehearsal costs, are recognised in the Consolidated Statement of Comprehensive Income on the date of the press night performance, on the assumption that the production income is expected to exceed the costs incurred.
Should costs be incurred in excess of what is expected to be recouped through box office sales, these costs are then expensed immediately to the Consolidated Statement of Comprehensive Income.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

Page 24

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.19

Financial instruments


The Group only enters into basic financial instruments and transactions that result in the recognition of financial assets and other debtors and creditors and loans to and from related parties.
(i) Financial assets
Basic financial assets, including other debtors, and amounts due from related companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Income and Retained Earnings.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(ii) Financial liabilities
Basic financial liabilities, including accruals, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Page 25

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of Financial Position date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
(i) Share-based payments
Certain employees have been granted share options that require a fair value methodology to value the options at the date of grant as detailed in accounting policy 2.10 and note 21.
(ii) Useful economic life of tangible assets
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 reassessed 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 13 for the carrying amount of the property, plant and equipment and accounting policy 2.13 for the useful economic lives for each class of assets. 
(iii) Useful economic life of intangible assets
The annual amortisation charge for intangible assets is sensitive to technological advances. The useful economic life of the capitalised website costs is reassessed annually and is amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the changing need for the website's offering. See note 12 for the carrying amount of the website costs and accounting policy 2.12 for the useful economic lives for each class of assets. 
(iv) Recognition of a deferred tax asset
A deferred tax asset is recognised in these financial statements arising from accumulated trading losses that will be used against future profits. The extent to which this asset is recognised is based on an estimation of expected future profits, calculated using the most recent cashflow forecasts projections prepared by management. The estimation of these is therefore judgemental by nature. See note 11 for the value of the deferred tax asset recognised and accounting policy 2.11 for the recognition of the asset.

Page 26

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Box office income
12,357,505
13,457,283

Cinema streaming income
353,438
287,973

Membership income
155,845
91,208

Bar and Food sales
1,438,402
1,188,862

BBC production income
50,350
40,426

Trading and other income
218,026
181,351

14,573,566
15,247,103


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Other operating income
398,088
24,980

Sundry income
-
392,771

398,088
417,751



6.


Operating loss

The operating loss is stated after charging:

2024
2023
£
£

Depreciation
3,414
430,648

Other operating lease rentals
772,757
749,844

Share based payment
4,461
56,149

Page 27

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

7.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
23,250
14,000

Fees payable to the Group's auditor and its associates in respect of:

Audit-related assurance services
75,250
59,100

Taxation compliance services
8,750
8,750

All other services
-
7,824




8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
10,279,613
7,222,092

Social security costs
440,188
356,166

Cost of defined contribution scheme
78,475
158,854

10,798,276
7,737,112


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Front of house
172
169
-
-



Head office
30
41
6
6

202
210
6
6

Page 28

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

9.


Directors' remuneration



The highest paid director received remuneration of £126,188 (2023 - £143,208).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 - £NIL).

The total accrued pension provision of the highest paid director at 30 September 2024 amounted to £NIL (2023 - £NIL).


10.


Interest payable and similar expenses

2024
2023
£
£


Other loan interest payable
305,854
272,811

Other interest payable
4,414
-


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
(572,665)
(1,550,014)


Total current tax
(572,665)
(1,550,014)
Page 29

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 22.01%). The differences are explained below:

2024
2023
£
£


Loss on ordinary activities before tax
(4,820,847)
(1,490,950)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22.01%)
(1,205,212)
(328,158)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
70,014
74,406

Capital allowances for year in excess of depreciation
-
70,503

Theatre tax credits receivable
(572,665)
(1,546,039)

Remeasurement of deferred tax for changes in tax rates
-
(32,370)

Movement in deferred tax not recognised
1,135,198
270,501

Other tax adjustments
-
(58,857)

Total tax charge for the year
(572,665)
(1,550,014)


Factors that may affect future tax charges

A deferred tax asset in relation to accumulated losses has been recognised in previous years to the extent that future projections and forecasts indicated that it will be used in the foreseeable future, which for the purpose of this estimate is within the next five years. Each year, projections and forecasts are reviewed to ensure any deferred tax asset recognised is reasonable in light of the Company's ability to use this against future profits in the foreseeable future. No deferred tax asset has been recognised for 2024.
Total group losses carried forward amount to £15.6m (2023: £13.7m) that can be offset against future taxable profits.

Page 30

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

12.


Intangible assets

Group and Company





Development expenditure

£



Cost


At 1 October 2023
184,497



At 30 September 2024

184,497



Amortisation


At 1 October 2023
184,497



At 30 September 2024

184,497



Net book value



At 30 September 2024
-



At 30 September 2023
-



Page 31

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

13.


Tangible fixed assets

Group






Long-term leasehold property
Fixtures and fittings
Computer equipment
Other fixed assets
Total

£
£
£
£
£



Cost


At 1 October 2023
15,638,718
470,451
135,320
672,156
16,916,645


Additions
-
19,401
35,894
95,849
151,144


Disposals
-
(138,974)
(34,447)
(126,900)
(300,321)



At 30 September 2024

15,638,718
350,878
136,767
641,105
16,767,468



Depreciation


At 1 October 2023
1,650,923
385,365
96,422
559,341
2,692,051


Charge for the year on owned assets
332,176
21,037
30,917
53,803
437,933


Disposals
-
(138,853)
(34,447)
(126,900)
(300,200)



At 30 September 2024

1,983,099
267,549
92,892
486,244
2,829,784



Net book value



At 30 September 2024
13,655,619
83,329
43,875
154,861
13,937,684



At 30 September 2023
13,987,795
85,086
38,898
112,815
14,224,594



Page 32

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

14.


Fixed asset investments

Company





Investments in subsidiary companies
Investment in joint ventures
Total

£
£
£



Cost or valuation


At 1 October 2023
103
1
104



At 30 September 2024
103
1
104





Direct subsidiary undertakings


The following were direct subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

London Theatre Company Productions Limited
C/O Womble Bond Dickinson (UK) LLP, 4 More London Riverside, London, United Kingdom, SE1 2AU
Ordinary
100%
LTC Talking Heads Limited
C/O Womble Bond Dickinson (UK) LLP, 4 More London Riverside, London, United Kingdom, SE1 2AU
Ordinary
100%
LTC OTB Limited
C/O Womble Bond Dickinson (UK) LLP, 4 More London Riverside, London, United Kingdom, SE1 2AU
Ordinary
100%
LTC KX Limited
C/O Womble Bond Dickinson (UK) LLP, 4 More London Riverside, London, United Kingdom, SE1 2AU
Ordinary
100%

Page 33

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Indirect subsidiary undertaking


The following was an indirect subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

London Theatre Company Staging Limited
C/O Womble Bond Dickinson (UK) LLP, 4 More London Riverside, London, United Kingdom, SE1 2AU
Ordinary
100%


Participating interests


For the year ended 30 September 2024, the joint venture made a loss for the year and therefore no adjustment has been made in regards to this. The Group does not have a legal or constructive obligation to make good any losses regarding the joint venture other than the underlease commitment of the King's Cross theatre.
 


15.


Debtors

Group

Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Due after more than one year

Other debtors
25,000
25,000
-
-

Due within one year

Trade debtors
297,471
416,293
-
-

Amounts owed by group undertakings
-
-
30,197,290
27,797,345

Amounts owed by joint ventures
473,772
594,368
-
500,000

Other debtors
774,362
739,901
-
15

Prepayments and accrued income
912,436
1,890,877
-
1,696

Tax recoverable
-
23,000
-
-

2,483,041
3,689,439
30,197,290
28,299,056


Amounts owed by group undertakings are unsecured, interest-free and repayable on demand.
Amounts owed by joint ventures are unsecured, interest-free and repayable on demand.

Page 34

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

16.


Creditors: Amounts falling due within one year

Group

Group
Company

Company
2024
2023
2024
2023
£
£
£
£

Bank overdrafts
6
-
-
-

Other loans
250,080
250,080
250,080
250,080

Trade creditors
1,193,216
235,641
-
-

Amounts owed to group undertakings
-
-
7,201,149
6,468,383

Amounts owed to joint ventures
100
100
100
100

Other taxation and social security
422,920
141,772
294,310
5,063

Other creditors
1,798,916
2,036,060
1,200,000
1,200,000

Accruals and deferred income
3,191,767
2,725,700
25,000
20,750

6,857,005
5,389,353
8,970,639
7,944,376


Amounts owed to group undertakings are unsecured, interest-free, have no fixed repayment date and are repayable on demand.
Amounts owed to joint ventures are unsecured, interest-free and repayable on demand.


17.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Other loans
6,206,501
6,249,920
6,206,501
6,249,920

Other creditors
382,982
328,657
382,982
328,657

Accruals and deferred income
1,379,028
1,366,029
-
-

7,968,511
7,944,606
6,589,483
6,578,577


In February 2021, the Company drew down £5m from the Culture Recovery Fund. The first repayment of this loan was due in February 2025, and then was subsequently to be repaid in 13 equal instalments. However, the repayment terms are being renegotiated. The balance accrues interest at 2% p.a.
In March 2022, the Company drew down a further £1.5m from the Culture Recovery Fund. The first repayment of this loan was not due until March 2024, and then was to subsequently be repaid in 13 equal instalments. However, the repayment terms are being renegotiated. The balance accrues interest at 3% p.a.

Page 35

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

18.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Amounts falling due within one year

Other loans
250,080
250,080
250,080
250,080


250,080
250,080
250,080
250,080

Amounts falling due 1-2 years

Other loans
1,052,532
1,052,532
1,052,532
1,052,532

Amounts falling due 2-5 years

Other loans
3,021,210
3,021,210
3,021,210
3,021,210

Amounts falling due after more than 5 years

Other loans
2,132,759
2,176,178
2,132,759
2,176,178

6,456,581
6,500,000
6,456,581
6,500,000



19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



513,750 (2023 - 513,750) A Preference shares of £0.001 each
514
514
371,250 (2023 - 371,250) Ordinary shares of £0.001 each
371
371

885

885


The preference shares rank pari passu in all respects as Ordinary shares in the capital of the Company, apart from on the distribution of assets on a return of capital, on or following an exit event where they will rank above the Ordinary shares. 


Page 36

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

20.


Reserves

Share premium account

The share premium reserve includes all amounts paid over and above par value for shares issued in the Company.

Other reserves

Other reserves consist of the unwinding of the fair value of share options issued as part of the share-based payment scheme run by the Company.

Profit and loss account

Includes all current period retained profits and losses.

Page 37

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

21.


Share-based payments

The Group offers a share-based payment scheme for some of its employees.
Under this scheme, certain employees are granted share options in the Company. The options are granted with a fixed exercise price, are exercisable after the date of grant and expire 10 years after this date and are equity settled. The vesting conditions are split evenly between the date of grant, date of opening and upon and exit event.
A reconciliation of share option movements over the year to 30 September 2024 is shown below

Weighted average exercise price (pence)
2024
Number
2024

Outstanding at the beginning of the year

7.99

60,000

Outstanding at the end of the year

60,000


The total number of share options exercisable at the end of the period was 40,000 (2023: 40,000).
The total charge for the year in respect of these share-based payments was £4,461 (2023: £56,149).
The charge is treated as an expense in the financial statements of London Theatre Company Productions Limited, a company whose results are consolidated within these financial statements. The corresponding reserve is held within equity in the Company Statement of Financial Position within these financial statements.
The fair value calculation has been provided by an expert third party and uses an average of the Black- Scholes and binomial option pricing models with the following parameters

2024

Fair value at grant date


2.35

Share price at grant date


7.99

Exercise price (pence)


7.99

Option life


10 years

Expected volatility


Up to 20%

Expected dividend


None

Risk-free interest rate


1.27%


Page 38

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

21.Share-based payments (continued)

Warrants
In 2017 the Company issued share warrants to two individuals, one a former director of the Company, for a total of 15,000 Ordinary shares to be issued at the discretion of the warrant holders. The exercise price of these warrants is £13.33 Ordinary share.
The Company has taken advantage of the exemption to account for these warrants upon transition to FRS 102 under FRS 102 section 35.10(b).



22.


Prior year adjustment

The following prior year adjustment was made in one of the subsidiary companies.
A prior year adjustment has been made to more accurately reflect the cessation of a license in place with regards to an overseas distributor. This was in relation to income and cost of sales recognised in the year ended 30 September 2022. This has resulted in a decrease in 2022 sales of £147,646 and a decrease in cost of sales of £137,311. Therefore there was a decrease in retained earnings of £10,335 impacting the 2023 and 2024 financial accounts.
The impact of the above adjustment has resulted in an increase of debtors of £137,311 and an increase of creditors of £147,646, therefore a net impact of £10,335.


23.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. Contributions totalling £44,360 (2023: £41,745) were payable to the fund at the Consolidated Statement of Financial Position date and are included in creditors. The pension cost charge represents contributions payable by the Group and amounted to £78,475 (2023: £158,854). 


24.


Commitments under operating leases

At 30 September 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
733,767
724,583

Later than 1 year and not later than 5 years
3,038,767
3,029,583

Later than 5 years
22,249,795
22,814,178

26,022,329
26,568,344


Page 39

 
LONDON THEATRE COMPANY HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

25.


Related party transactions

Where possible the Group and the Company have taken advantage of the exemption conferred by FRS 102 section 33.1A from the requirement to disclose transactions with other wholly owned group undertakings on the grounds that the consolidated financial statements are prepared by the parent undertaking and are publicly available.
Key management personnel were paid remuneration of £541,678 (2023: £385,866).
Governance costs were paid to directors of the Company of £46,390 (2023: £55,000).
Loans due to shareholders were included in other creditors and amount to £1,200,000 (2023: £1,200,000). These amounts accrued interest at 6%.

 
Page 40