The trustees present their annual report and financial statements for the year ended 31 March 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's memorandum and articles, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Originally founded as West Lothian Youth Theatre, Firefly Arts is a Scottish Charity with a long history of providing youth theatre, film-making, creative writing, music, dance and visual arts activity for children and young people aged 5 to 25 years across West Lothian.

Firefly’s workshop, school, community and training programmes provide young people with a safe, supportive environment to explore their world, challenge themselves, build creative and resilient futures. We specialise in developing transformative and inclusive arts experience for young people who are socially and economically marginalised, and all Firefly activity is underpinned by the following five key principles:

1. Creativity: Firefly are committed to generating fun, creative and life-transforming arts experience for all.

2. Young People: While many Firefly projects run in successful partnership with adult groups, our core purpose is to transform and enrich young lives.

3. Place: Firefly programmes are rooted in West Lothian, with commitment to, and in partnerships with, our local communities.

4. Partnership: Firefly’s strategic and community partners play a key role in our capacity to engage effectively with hard-to-reach groups, new participants and the wider community.

5. Equality: Firefly activity is committed to addressing social, economic and cultural inequality.

The cost-of-living crisis has continued to place pressure on young people, families, and the youth arts sector across Scotland, with many organisations struggling to sustain services. Despite these ongoing challenges, the charity has continued to provide high-quality, inclusive arts opportunities across West Lothian, with a particular focus on supporting those most at risk of social exclusion.

In July 2024, following a period of interim leadership, the charity appointed Electra McPhillips as CEO, marking a new chapter in its development. Drawing on more than 20 years of experience in the performing arts sector, Electra has focused on building organisational resilience, embedding a culture of collaboration, and strengthening partnerships with local agencies and community groups.

Key achievements this year include:

• Securing multi-year funding status from Creative Scotland for 2025–2028, making Firefly Arts the first ever organisation from West Lothian to receive this accolade. This recognition not only affirms the quality and impact of our work but also provides a stronger platform for long-term sustainability and growth.

• Expanding our employability and skills-based projects for young people, helping to bridge the growing gap in access to education and training opportunities.

• Deepening partnerships with Play Works, New Directions, and Knightsridge Adventure Project SCIO, ensuring joined-up provision for young people facing multiple barriers.

• Strengthening our commitment to inclusion - a distinctive strength that shapes our practice and leadership model.

• Continuing to deliver our ROOTS partnership, which remains a vital creative space for young people to connect, express themselves, and develop confidence.

The refreshed strategic direction set in 2024/25 lays the groundwork for long-term sustainability, combining a strong social purpose with a developing social enterprise approach to income generation. The organisation remains recognised for delivering artistic provision of the highest quality within a nurturing and welcoming environment open to everyone.

Highlights of 2024/25

• Community-Based Workshops: Delivered an extensive programme of workshops across West Lothian, engaging children, young people, and families in inclusive and creative activity that supported confidence, wellbeing, and self-expression.

• School Partnerships: Continued to work with primary and secondary schools across West Lothian, embedding arts-based learning and offering creative opportunities within the school day.

• National Festival of Youth Theatre: Participated in the National Festival of Youth Theatre in July 2024, where Firefly’s young company performed an original devised piece, showcasing their creativity on a national stage.

• ROOTS Programme: Sustained weekly sessions through the ROOTS programme, offering a safe and inclusive creative space for young people, particularly those who are neurodiverse or facing barriers to participation.

• Winter Production of Oh Dear, Oh Snow: Presented a new winter production at Howden Park Centre from 6–8 December 2024. The show ran for five performances, all warmly received by audiences and demonstrating the talent and commitment of Firefly’s young performers.

• Employability and Skills Projects: Expanded skills-based workshops linked to employability, offering young people opportunities to develop confidence, leadership, and transferable skills that support future education, training, and work pathways.

• Partnership Working: Strengthened local collaborations with Play Works, New Directions, and Knightsridge Adventure Project SCIO, ensuring joined-up provision for young people. Nationally, Firefly continued to contribute to sector-wide conversations around inclusion, neurodiversity, and youth arts access.

Throughout 2024/25, Firefly built on its strong regional presence and reputation, remaining strategically positioned to support children and young people during times of increasing need. Our programmes continued to be accessible, impactful, and rooted in creativity, inclusion, and community.

Firefly completed the financial year with a fund balance of £124,650, made up of £69,646 in restricted funds, and £55,004 in unrestricted funds.

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Risk Management

Firefly trustees regularly review major risks to which the charity is exposed and are satisfied that systems have been established to mitigate those risks. The principal risks and uncertainties facing the charity relate to future funding, and this is managed by preparation of budgets and regular review by the Directors.

Governance
Firefly Arts Limited is a charitable company limited by guarantee. Formerly known as West Lothian Youth Theatre was incorporated on 15 March 1990. The Company was established under a Memorandum of Association which established the objects and the powers of the charitable company and is governed under its Articles of Association. These documents were updated in line with legislation and best practice with the change of company name. Firefly Arts Ltd is registered with the office of the Scottish Charity Regulator (OSCR). The company is governed by a Board of Directors, who meet 6 times a year, this year consisting of ten members plus an observer from our major funder, West Lothian Council.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Recruitment and retention of Board Members is planned to secure a range of skills amongst the Board of Directors to ensure the aims and objectives of Firefly are well informed and fulfilled. All Board Members are encouraged to become familiar with the practical work of the charity and supported to attend Board development training sessions offered by external providers.

None of the Directors has any beneficial interest in the company. All of the Directors are members of the company and guarantee to contribute £1 in the event of a winding up.

I report on the financial statements of the charity for the year ended 31 March 2025, which are set out on pages 5 to 16.

The charity's trustees (who are also directors of the company for the purposes of company law) are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006, and they consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under section 44(1)(c) of the Act and to state whether particular matters have come to our attention.

My examination was carried out in accordance with the Statement of Standards for Reporting Accountants and Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the accounts.

In connection with my examination, no matter has come to my attention:

to keep accounting records in accordance with section 44 (1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and

to prepare accounts which accord with the accounting records and comply with the accounting requirements of Regulation 8 of the 2006 Accounts Regulations and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;

have not been met; or

to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Investments

The statement of financial activities includes all gains and losses recognised in the year.

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2025.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Firefly Arts Limited is a private company limited by guarantee incorporated in Scotland. The registered office is Howden Park Centre, Howden, Livingston, West Lothian, EH54 6AE.

The financial statements have been prepared in accordance with the charity's [governing document], the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost 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.

Charitable activity expenditure includes all expenditure directly incurred in furthering the objectives of the charity.

Governance costs consists of the costs of financial services, accounts preparation, mandatory legal and professional fees, and any other expenditure incurred in compliance with legal requirements of the charity.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including creditors and bank loans 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Core Grants

Sales

Investments

Rent and venue hire

Travel costs

Materials

Freelancers

Publicity and Marketing

Other project costs

Rent

Insurance

Repairs

Postage and stationery

Telephone

Sundries

Subscriptions

Bank charges

Bookkeeper

During the year no trustees received remuneration in respect of consultancy services (2024 - £nil). These transactions were at arms length and on normal commercial terms. None of the other trustees (or any persons connected with them) received any remuneration during the year.

The average monthly number of employees during the year was:

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

The key management personnel of the charity, comprise the Chief Executive Officer. The total employee benefits of the key management personnel of the charity were £32,242 (2024: £13,090). For part of the year the Chief Executive position was outsourced and fees for this role were £8,000 (2024: £11,780).

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

There were no disclosable related party transactions during the year (2024 - none).