London College of Contemporary Arts Ltd
Annual Report and Financial Statements
For the year ended 31 May 2025
Company Registration No. 07889724 (England and Wales)
London College of Contemporary Arts Ltd
Company Information
Directors
E Groysman
(Appointed 20 June 2024)
B Arbel
(Appointed 2 September 2024)
Secretary
V Kisilevsky
Company number
07889724
Registered office
Buchanan House
30 Holborn
London
EC1N 2HS
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
London College of Contemporary Arts Ltd
Contents
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Profit and loss account
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 25
London College of Contemporary Arts Ltd
Strategic Report
For the year ended 31 May 2025
Page 1

The directors present the strategic report for the year ended 31 May 2025.

Principal Activities
The London College of Contemporary Arts (LCCA) is part of GUS's UK Colleges Division and operates as a provider of higher education programmes validated the University for the Creative Arts (UCA), delivers higher education programmes in creative arts and business disciplines. These are delivered across two central London campuses, offering a modern blend of in-person and online education that appeals to today's student demographic. This report covers the financial and operational period ending 31 May 2025 and outlines the College's strategic direction, organisational renewal, and performance over the year.
The reporting period has been characterised by a challenging external environment for the higher education sector, including increased regulatory scrutiny from the Office for Students (OfS), economic pressures affecting student affordability, and continued transformation in creative industries education. Against this backdrop, LCCA has delivered significant organisational, academic, and governance enhancements that have strengthened its institutional resilience and student outcomes.
Institutional Strategy and Vision
LCCA's mission is to foster creativity, innovation, and professional excellence within an inclusive and supportive learning environment to support widening participation students. The College aims to equip students with the knowledge, skills, and confidence to succeed in the creative and business industries.
During 2024/25, the College refined its strategic priorities to focus on:
• Strengthening academic quality and governance maturity
• Enhancing student experience, continuation, and attainment
• Diversifying the curriculum and expanding progression routes
• Building financial and operational sustainability
• Embedding a culture of accountability, collaboration, and continuous improvement
These priorities align closely with the broader GUS UK Colleges strategy and the expectations of university partners and the OfS.
Organisational Renewal and Leadership
The College underwent significant organisational renewal during 2024/25, introducing a new leadership and governance framework designed to strengthen accountability and align academic and operational functions.
This structure has clarified decision-making pathways, improved collaboration between academic and professional services teams, and ensured that institutional performance is managed through clearly defined objectives and review processes.
A programme of cultural renewal has been embedded across the organisation, centred on transparency, collegiality, and professional accountability. Enhanced induction, development, and performance frameworks have supported staff integration and leadership development, reinforcing institutional capability and long-term stability. The development of a cohesive Learning and Teaching team, now working across the institution to promote consistency, innovation, and scholarly practice has enhanced onboarding, development, and performance frameworks and supported staff integration and professional growth. The continued recruitment of experienced directors have reinforced academic leadership and operational resilience.
London College of Contemporary Arts Ltd
Strategic Report (Continued)
For the year ended 31 May 2025
Page 2
Academic and Student Performance
Under the revised leadership model, the College has established a comprehensive set of institutional Key Performance Indicators (KPIs) and strategic objectives that reflect its academic ambitions and regulatory commitments. The College continues to demonstrate strong academic performance against key OfS benchmarks. LCCA achieved a continuation rate of 82.2%, which remains above the sector average and reflects improved academic support and student engagement.
Student satisfaction indicators, including the National Student Survey (NSS) and internal pulse surveys, show a sustained improvement in students' sense of belonging, communication, and teaching quality. These results are supported by targeted interventions in academic support, strengthened assessment processes, and greater consistency in programme management and delivery.
In addition, the College successfully launched new programmes in Games Design, which is delivered through its innovative Games Hub.
Financial Update
LCCA continues to demonstrate excellent financial health. Revenues rose from £25.4m to £54.2m and net assets grew from £12.2m to £24m , driven by rising student numbers and careful financial management. Operational efficiency was maintained, with staffing remaining the largest cost after facilities. This financial robustness enables continued investment in infrastructure, systems and staff development. Cash flow remains strong and is proactively managed to support capital investment and operational needs. This underpins both the day-to-day running and long-term strategic ambitions of the College
Governance, Quality, and Compliance
Significant progress has been made in strengthening governance, quality assurance, and regulatory compliance. The College now operates a comprehensive committee framework that provides systematic oversight of academic standards, student experience, and institutional performance.
The Quality and Registry functions have been restructured to focus on proactive assurance, continuous enhancement, and evidence-based decision-making. Enhanced data reporting and review processes have improved the College's ability to identify trends, manage risk, and respond effectively to external expectations.
These developments reflect LCCA's continued commitment to regulatory alignment and to maintaining full compliance with OfS conditions of registration and partner university requirements.
Future Prospects
With proven success in launching and scaling education provision, LCCA is strategically positioned to expand its model to additional UK locations and the wider global environment. The College is well placed to expand its foundation and undergraduate provision given its close links with the sector and the parent backing from Global University Systems (GUS) offer a strong platform for sustainable expansion. This will look at expanding its curriculum to foundation degree programmes (levels 4 and 5) and further enhancements to its creative programmes. A full periodic review of all programmes will take place in 2025-26
London College of Contemporary Arts Ltd
Strategic Report (Continued)
For the year ended 31 May 2025
Page 3
Principal Risks and Uncertainties
Key risks include:
• Changes to OfS regulatory requirements
• Sector-wide financial pressures and student affordability
• People and Organisational Development
• Recruitment volatility within the domestic market
• Dependency on partner university frameworks
These risks are actively monitored through governance structures and internal controls. Mitigation measures include enhanced market analysis, targeted recruitment initiatives, strengthened compliance reporting, and the diversification of programme offerings. Opportunities remain strong within creative and applied disciplines, particularly through portfolio expansion, partnership development, and flexible delivery models.
Changes to OfS regulatory requirements
The UK higher education sector continues to face external headwinds—from regulatory changes to partnership models to changes in fees. LCCA remains well-positioned due to its diversified model and responsive strategy, but continues to monitor these factors carefully. LCCA is committed to maintaining rigorous compliance with all applicable regulatory frameworks through continuous internal audit, external validation, and process improvement.
People & Organisational Development
The period has seen substantial investment in academic capability and capacity, including the recruitment of approximately 100 new academic teaching staff, as well as a revised leadership and management structure. With the expected continued growth into other potential locations, the College will continue to expand its people resources and development to continue deliver academic excellence and further build capacity, offering reassurance to our partners and external regulators.
Final Comments
LCCA enters the next reporting period with a renewed sense of purpose, continued ambition and enhanced stability. sustained improvements in academic quality, student experience, and institutional governance, consistent with its mission to foster creativity, innovation, and professional excellence.
The College enters the next reporting period with a renewed sense of purpose and a clear strategy for continued improvement. The foundations established in 2025 — through leadership reform, strategic planning, and cultural transformation — position the College to deliver the Key priorities for 2025/26 which include:
• Further enhancement of academic quality and governance maturity
• Expansion of curriculum pathways and student progression routes
• Continued strengthening of regulatory assurance and data capability
• Sustained focus on student engagement, employability, and outcomes
LCCA is well positioned to build on the strong foundations established during 2024/25, maintaining its commitment to creativity, innovation, and professional excellence.

On behalf of the board

E Groysman
Director
23 February 2026
London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Directors' Report
For the year ended 31 May 2025
Page 4

The directors present their annual report and financial statements for the year ended 31 May 2025.

Principal activities

The London College of Contemporary Arts (LCCA), through its franchising partner, the University for the Creative Arts (UCA), delivers higher education programmes in creative arts and business disciplines. These are delivered across two central London campuses, offering a modern blend of in-person and online education that appeals to today’s student demographic.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

E Groysman
(Appointed 20 June 2024)
A N Lejune
(Resigned 20 June 2024)
B Arbel
(Appointed 2 September 2024)
Auditor

Moore Kingston Smith LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
E Groysman
Director
23 February 2026
London College of Contemporary Arts Ltd
Directors' Responsibilities Statement
For the year ended 31 May 2025
Page 5

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

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

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Independent Auditor's Report
To the Members of London College Of Contemporary Arts Ltd
Page 6
Opinion

We have audited the financial statements of London College of Contemporary Arts Ltd (the 'company') for the year ended 31 May 2025 which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 May 2025 and of its profit 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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.

London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Independent Auditor's Report (Continued)
To the Members of London College Of Contemporary Arts Ltd
Page 7

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the Strategic Report and the Directors' R eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the 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 company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the Strategic Report or the Directors' R eport.

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, or returns adequate for our audit have not been received from branches not visited by us; or

- the 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.

Responsibilities of directors

As explained more fully in the Directors' R esponsibilities S tatement, 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 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 company or to cease operations, or have no realistic alternative but to do so.

London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Independent Auditor's Report (Continued)
To the Members of London College Of Contemporary Arts Ltd
Page 8
Auditor's 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 auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 purposes of expressing an opinion on the effectiveness of the company’s internal control.

- 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 auditor’s 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 auditor’s 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.

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.

London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Independent Auditor's Report (Continued)
To the Members of London College Of Contemporary Arts Ltd
Page 9

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

- We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.

- We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.

- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.

- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 2006. Our 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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Shivani Kothari
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
24 February 2026
Chartered Accountants
6th Floor
9 Appold Street
London
EC2A 2AP
London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Profit and Loss Account
For the year ended 31 May 2025
Page 10
Year
period
ended
ended
31 May
31 May
2025
2024
Notes
£
£
Turnover
54,183,701
25,360,932
Cost of sales
(15,167,360)
(8,137,380)
Gross profit
39,016,341
17,223,552
Administrative expenses
(23,162,657)
(14,136,579)
Other operating income
-
0
419,148
Operating profit
15,853,684
3,506,121
Interest payable and similar expenses
(32,327)
(5,716)
Profit before taxation
15,821,357
3,500,405
Tax on profit
4
(3,923,665)
-
0
Profit for the financial year
11,897,692
3,500,405
London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Balance Sheet
As at 31 May 2025
31 May 2025
Page 11
2025
2024
Notes
£
£
£
£
Fixed assets
Intangible assets
5
9,507,563
2,815,412
Tangible assets
6
3,381,950
2,426,603
12,889,513
5,242,015
Current assets
Debtors
7
70,923,739
18,648,313
Cash at bank and in hand
4,434,505
8,179,531
75,358,244
26,827,844
Creditors: amounts falling due within one year
8
(63,982,630)
(19,703,999)
Net current assets
11,375,614
7,123,845
Total assets less current liabilities
24,265,127
12,365,860
Provisions for liabilities
(159,776)
(158,201)
Net assets
24,105,351
12,207,659
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
24,105,251
12,207,559
Total equity
24,105,351
12,207,659
The financial statements were approved by the board of directors and authorised for issue on 23 February 2026 and are signed on its behalf by:
E Groysman
Director
Company Registration No. 07889724
London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Statement of Changes in Equity
For the year ended 31 May 2025
Page 12
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 August 2023
100
8,707,154
8,707,254
Period ended 31 May 2024:
Profit and total comprehensive income for the period
-
3,500,405
3,500,405
Balance at 31 May 2024
100
12,207,559
12,207,659
Year ended 31 May 2025:
Profit and total comprehensive income for the year
-
11,897,692
11,897,692
Balance at 31 May 2025
100
24,105,251
24,105,351
London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Statement of Cash Flows
For the year ended 31 May 2025
Page 13
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
13
17,200,139
14,654,536
Interest paid
(32,327)
(5,716)
Income taxes paid
-
(107,290)
Net cash inflow from operating activities
17,167,812
14,541,530
Investing activities
Purchase of intangible assets
(19,198,256)
(6,075,910)
Purchase of tangible fixed assets
(1,714,582)
(1,654,043)
Net cash used in investing activities
(20,912,838)
(7,729,953)
Financing activities
Payment of finance leases obligations
-
0
(108,829)
Net cash used in financing activities
-
(108,829)
Net (decrease)/increase in cash and cash equivalents
(3,745,026)
6,702,748
Cash and cash equivalents at beginning of year
8,179,531
1,476,783
Cash and cash equivalents at end of year
4,434,505
8,179,531
London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Notes to the Financial Statements
For the year ended 31 May 2025
Page 14
1
Accounting policies
Company information

London College of Contemporary Arts Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Buchanan House, 30 Holborn, London, EC1N 2HS.

1.1
Reporting period

These financial statements have been prepared for a 12 month period ended 31 May 2025. The prior year comparatives were prepared on a 10 month period commencing on 1 August 2023 and ending on 31 May 2024. The change in reporting period in the prior year aligned the financial year end with the year end of the ultimate parent.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a wholly owned subsidiary of Global University Systems Holding B.V. and the results of the company are included in the consolidated financial statements of Global University Systems Holding B.V. which are available from Passeerdersgracht 23, 1016 XG, Amsterdam, the Netherlands.

1.3
Going concern

The financial statements have been prepared on a going concern basis which the Director true s believe to be appropriate for the following reason. In addition to its own cash resources the company has access to additional funding from its parent company under a support letter. Global University Systems Holding B.V. has agreed to continue to provide financial and other support to the company for the foreseeable future as required to enable it to continue to trade.

As a result, having assessed the response of the directors of Global University Systems Holding B.V., in light of its support and on the basis of their assessment of the company's financial position and Global University Systems Holding B.V.'s financial position, the Director s ha ve a reasonable expectation that the company will be able to continue in operational existence for at least 12 months from the signing of these accounts and therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2025
1
Accounting policies
(Continued)
Page 15
1.4
Turnover

Revenue represents fees receivable for the provision of tuition and student services. Revenue is recognised on the basis of the estimated timing of delivery of the courses and the provision of student services. For certain courses delivery can vary on a student by student basis and therefore an estimation of the timing of the delivery is made on a course by course basis. Revenue in respect of student services is recognised on invoice.

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the balance sheet date. Deferred income represents amounts invoiced for which the service will be provided in future periods. Revenue is only recognised when the company has performed all of its required obligations and when all the following conditions are satisfied: the revenue can be measured reliably; it is possible that the economic benefits will flow to the company; the state of completion at the balance sheet date can be measure reliably; and the cost relating to the transaction can be measured reliably.

1.5
Intangible fixed assets other than goodwill

Intangible assets are made up of costs incurred in securing customer contracts and are recognised as intangible fixed assets when the following criteria are met:

- The costs are incremental and would not have been incurred if the contract had not been obtained;

- It is probable that the expected future economic benefits associated with the contract will flow to the entity;

- The costs can be reliably measured.

Amortisation is recognised evenly over the life of the contract in place.

Capitalised commission
Straight line over the contract period
Website
Straight line over 5 years
1.6
Tangible fixed assets

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:

Leasehold improvements
Straight line over the lease period
Plant and machinery
Straight line over 5 years
Computer exquipment
Straight line over 3 - 5 years

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 credited or charged to profit or loss.

London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2025
1
Accounting policies
(Continued)
Page 16
1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and 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.

1.9
Financial instruments

The company 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 company's balance sheet when the company 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

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.

The Company makes allowances for doubtful trade debtors. Significant judgement is used to determine doubtful accounts. Changes in the economy, industry, or specific customer conditions may require adjustments to the allowance for doubtful debts recorded in the financial statements.

London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2025
1
Accounting policies
(Continued)
Page 17
Other financial assets

The company does not enter into any transactions that can be classified as other financial assets, including equity instruments which are not subsidiaries, associates or joint ventures.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 paymen ts 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 business from suppliers. A m ounts 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.

London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2025
1
Accounting policies
(Continued)
Page 18
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account, except to the extent that any tax charge is offset by other UK group company tax losses.

Current tax

Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements.

Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2025
1
Accounting policies
(Continued)
Page 19
1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i s measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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 company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

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

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease s asset are consumed.

1.16
Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

1.17

Commission costs

Commission costs are capitalised as intangible fixed assets and amortised on a monthly basis over the expected study period. This provides reliable and relevant information as it more appropriately allocates the costs based on the service it relates to, being the study period.

London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2025
Page 20
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors 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 key judgement applied by management is in respect of the recoverability of amounts due from related entities. In assessing recoverability, management have considered the net asset and trading position of the related entity, including any credit enhancements such as guarantees or support from other group entities to determine the expected recoverable amount. Any shortfall is recognised as an impairment. The director determined that no impairment was required at the period end.

The director s apply judgement when considering the income recognised, which is based on the information received at a moment and time, these estimates are amended for each ongoing course once updated student information is received from the University for the Creative Arts (UCA). A judgement is made on the overall recoverable amount, taking into account student withdrawals, changes in student funding and other disruptions. Income for each course is reassessed up until the completion of the course and income recognised is adjusted for changes in total income which take place after the year end.

The director s also appl y judgement when assessing the appropriate provision for corporation tax. The

company has access to trading losses which may arise, or be held in respective of previous trading periods, in other group companies. In assessing the appropriate provision, the director s make an assessment of the availability of such losses and the likelihood that the company will be able to benefit from them in forming their judgement. These factors have been taken into account in assessing the the appropriate tax provision.

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.

One key area of estimation is the determination of useful life for amortisation of intangible assets and depreciation of tangible assets as explained in note 1.5 and note 1.6.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
Total
160
109
London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2025
Page 21
4
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
4,069,269
-
0
Adjustments in respect of prior periods
(147,180)
-
0
Total current tax
3,922,089
-
0
Deferred tax
Total current year deferred tax
1,576
-
0
Total tax charge
3,923,665
-

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
15,821,357
3,500,405
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
3,955,339
875,101
Tax effect of expenses that are not deductible in determining taxable profit
44,373
584
Adjustments in respect of prior years
(147,179)
-
0
Group relief
-
0
(922,925)
Deferred tax adjustments in respect of prior years
1,576
47,240
Other adjustment
69,556
-
0
Taxation charge for the year
3,923,665
-
London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2025
Page 22
5
Intangible fixed assets
Capitalised commission
Website
Total
£
£
£
Cost
At 1 June 2024
10,428,520
-
10,428,520
Additions
19,177,186
21,070
19,198,256
At 31 May 2025
29,605,706
21,070
29,626,776
Amortisation and impairment
At 1 June 2024
7,613,108
-
7,613,108
Amortisation charged for the year
12,502,118
3,987
12,506,105
At 31 May 2025
20,115,226
3,987
20,119,213
Carrying amount
At 31 May 2025
9,490,480
17,083
9,507,563
At 31 May 2024
2,815,412
-
2,815,412
London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2025
Page 23
6
Tangible fixed assets
Leasehold Improvements
Plant and machinery etc
Total
£
£
£
Cost
At 1 June 2024
2,452,744
1,422,876
3,875,620
Additions
995,405
719,180
1,714,585
At 31 May 2025
3,448,149
2,142,056
5,590,205
Depreciation and impairment
At 1 June 2024
820,508
628,509
1,449,017
Depreciation charged in the year
368,205
391,030
759,235
At 31 May 2025
1,188,716
1,019,539
2,208,255
Carrying amount
At 31 May 2025
2,259,433
1,122,517
3,381,950
At 31 May 2024
2,187,278
239,325
2,426,603
Included in plant and machinery are hire purchase leases for computer equipment with a cost of £956,399 and a net book value of £659,238. These are depreciated between 3-5 years.
7
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
10,190
55,163
Amounts owed by group undertakings
27,450,540
7,262,711
Prepayments and accrued income
43,463,009
11,330,439
70,923,739
18,648,313
London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2025
Page 24
8
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
826,447
267,229
Corporation tax
4,069,269
147,179
Other taxation and social security
1,014,331
552,515
Deferred income
41,462,651
12,288,098
Accruals
15,900,607
5,976,281
Other creditors
709,325
472,697
63,982,630
19,703,999
9
Financial commitments and guarantees

At year end, the company had no capital commitments of £nil (202 4: £nil).

The company, along with other group companies, is named as a guarantor for a lease held by Interactive Pro Limited, a company in the Global University Systems group. The company guarantees to pay any rents and make good to the landlord on a full indemnity basis all losses, costs, damages and expenses in case of any default by the lessee. The maximum rent payable under the guarantee, if triggered, is estimated as £25.4m (2024: £9.6m). The director s consider that no material exposure arises as a result of the guarantee.

10
Events after the reporting date

The director is of the opinion that there were no significant adjusting or non-adjusting events occurring after the reporting date.

11
Related party transactions

The company has taken advantage of the exemption allowed in FRS 102 para 33.1A and has not disclosed details of related party transactions with 100% owned entities within the group.

12
Parent company

The immediate parent undertaking is Global University Systems Holding B.V., a company incorporated in The Netherlands.

The ultimate controlling party is The Heritage Trust, registered in Guernsey.

The smallest group into which the entity is consolidated is Global University Systems Holding B.V., a company registered in The Netherlands. The largest group into which the entity is consolidated is Academic Bridge B.V., a company registered in The Netherlands. The registered office of both companies is Passeerdersgracht 23, 1016 XG Amsterdam, The Netherlands.

London College Of Contemporary Arts Ltd
London College of Contemporary Arts Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2025
Page 25
13
Cash generated from operations
2025
2024
£
£
Profit for the year after tax
11,897,692
3,500,405
Adjustments for:
Finance costs
32,327
5,716
Amortisation and impairment of intangible assets
12,506,105
5,446,604
Depreciation and impairment of tangible fixed assets
759,235
476,859
Increase in provisions
1,575
-
Movements in working capital:
Increase in debtors
(52,275,426)
(9,158,147)
Increase in creditors
44,278,631
14,383,099
Cash generated from operations
17,200,139
14,654,536
14
Contingent liabilities

In 2018 HMRC opened an enquiry into historic VAT treatments applied by certain entities within the Global University Systems group, including London College of Contemporary Arts Limited. The Directors are of the view that directives relating to the application of VAT as it applies to education services is open to varying interpretations by HMRC, tax tribunals and courts. As at the year end and date of approval of the financial statements, appeals were continuing and so no final resolution had been reached in respect of the enquiries. Therefore the Director s consider the outcome of the enquiry, which could include interest and penalties in addition to any assessed VAT liability, to be uncertain.

At year end and at the date of approval of the financial statements, an HMRC enquiry into certain historic loss allocations and corporate interest deductions within the Global University Systems group is ongoing. The enquiry may result in additional corporation tax, plus interest, becoming payable. However, the enquiry is ongoing and the Director s consider that the outcome is uncertain.

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