The Trustees present their report and independently examined financial statements for the period 1 September 2024 to 31 August 2025.
Reference and administrative information set out on page one forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by 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).
For the period ending 31 August 2025, the company was entitled to exemption from audit under section 477 of the companies act relating to small companies.
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 constitution and the Companies Act 2006.
The advancement of education and training in musical theatre performance; and the advancement of the arts particularly but not exclusively in the medium of musical theatre.
Public Benefit
The Trustees are aware of the Charity Commission guidance regarding public benefit, and confirm that they have complied with the duty in section 4 of the charities act 2011 to have due regard to it. They consider that the information which follows in this annual report, about the organisation's aims, activities and achievements demonstrates public benefit in relation to the delivery of the objects of the company.
The student cohort who commenced their training in September 2024, completed the course in July 2025.
The trustees are mindful of the importance of the vocational aspect of the training provision, and the opportunity it gives to connect directly with the industry. There were thirty-two graduating students in July 2025 and twenty-three have secured agents through LSMT placement. During the final term the organisation arranges individual auditions with a considerable number of well- regarded agents, and after graduation the Principal also continues to liaise with agents to secure remaining graduates, suitable industry representation.
The school is able to provide training that enables graduating individuals the level of skill and demonstrable talent, to secure such representation.
In addition to presenting their talent to agents, the students from this course auditioned for the casting department of Cameron Mackintosh Limited, the producer of Les Misérables, Phantom of The Opera, Miss Saigon and Hamilton.
Theatre Production/Public Presentation
Consistent with the advancement of the arts object of the charity, for six weeks each year Theatrical Educational Services Limited, operates entirely as a theatre production company.
The public are invited, through suitable marketing, to watch unique and inspiring presentations, in a well-established theatre venue.
In the period of this report, the organisation presented ‘Alice By Heart’, by Steven Sater, Jessie Nelson, and Duncan Sheik. The musical is an adaptation of Alice's Adventures in Wonderland set during World War II, exploring themes of first love and loss through the lens of childhood imagination. The production was presented at The Bridewell Theatre, and benefited from high production values, including excellent sound by David Beckham, Lighting Design by Adam King and set and costume design by Anthony Lamble.
The show was adeptly and creatively directed by Shaun Kerrison.
The production received exceptional public response, and a five-star review from Ian Bowkett at Musical Theatre Review -
‘What a delight to finally catch a musical I had been wanting to see for years so stylishly and confidently produced with such an impressive cast of young musical theatre performers. The London School of Musical Theatre has built a sterling reputation for its annual musical presentations, and this staging of Alice By Heart is exemplary.’
Student Funding Support
There were thirty-two students on the course ending in July 2025, and the fees were £16,850.
The trustees understand that LSMT must operate for the public benefit, and in particular are committed to supporting those whose demonstrable talent will advance the arts, once they receive suitable professional training.
We were able to offer fifteen of the students grants towards fees, and in total we distributed £46,000 which included a £3,000 George Peabody Performing Arts Grant, which we award yearly in respect of supporting the increase in ethnic diversity, within the industry.
In addition to the grants against course fees provided to students directly by LSMT, many other charitable organisations gave support to our students through allocation of restricted funds given in respect of course fees. This recognition of our ability to fulfil our charitable objectives was much appreciated, and enabled some individuals to attend, who would otherwise have been unable to do so.
The charitable organisations who gave restricted fund student fee support in the period of this report, were as follows:
Collins Educational Trust - £6,000 (£3,000 X 2).
National Youth Arts Trust - £250
Lionel Bart Foundation - £2,000
Bermuda Musical and Dramatic Society - £3,810
Andrew Lloyd Webber Foundation - £10,000
The Walker Trust - £4,500
In addition to the restricted funds given to LSMT in respect of the training of particular individuals, some students received funding themselves as support towards their fees, including one who secured £10,000 from Arts Aid (The Isle of Man) and another £4,000 from The Freemasons.
Recruitment Outreach
The organisation is recognised by other performing arts educational charities, as being highly suitable for vocational training for young people that may only require a one-year course, to enter the profession. This year we visited Arts Educational Foundation Course, Artemis College, London College of Performing Arts and West End MT. Previously we have also attended GSA, Newcastle College, University of Central Lancashire, Birmingham Conservatoire and Colchester Institute. The Principal of LSMT delivers either a practical performance class which benefits the educational progress of the students at the organisation, or an industry question and answer session. LSMT often benefits reciprocally from this outreach, by reaching suitably talented prospective students, who then apply for a place at LSMT.
LSMT Building
We shall be leaving our current building during July 2026, before the expiry of the lease on 1st August.
The organisation will be moving to new premises, for future delivery of our charitable objects. There are many sites currently available, and we are performing due diligence on any available properties, including any requirement for change of use to F1 (education), accessibility to central London, and the assessed refurbishment costs. We are looking at both buildings for sale, and for long-term tenure. LSMT is dealing with a specialist mortgage broker, with access to lending for charitable organisations and has also secured the required additional funding for the relocation, from supporters of the charity who are associated with the industry. The intent is to acquire and refurbish a new premises for the course delivery as soon as possible, for continuation of the charitable objects.
Funding sources
The charity charges a set fee for the course it provides.
Some of these fees are paid by outside charitable bodies and trusts directly to the organisation as restricted funds, and in other instances the student receives funding themselves, as support towards their training.
The charity suffered a deficit of £70,614 in the delivery period from 1 September 2024 to 31 August 2025. This was primarily due to the smaller intake of trainees on the course. The student intake for the period commencing September 2025 is closer to forty, and this has already stabilised the financial position.
The trustees are committed to ensuring the controlling of expenditure, so that the charity returns to surplus in the very near future. Once a new building has been acquired, the trustees are aware of the need of a suitable intake of trainees to increase income, whilst the cost of relocation is being settled.
The trustees have examined the requirement for reserves in light of the main risks to the organisation.
The intention in the future is to hold reasonable levels of reserves to protect against unforeseen circumstances and potential risks without over retention, which would be contrary to our charitable delivery.
At the end of the accounting period to 31 August 2025 the charity does not have reserves, but with an increased recruitment level planned for future training provision, a more sustainable balance sheet is projected.
The school was established as a full-time training establishment in January 1995 and incorporated as a Company Limited by Guarantee on 18 December 1996. On 30 October 2007 the company changed its name from London School of Musical Theatre Limited to Theatrical Educational Services Limited, with the former name retained as a trading designation. The company was registered as a charity on 21 March 2016.
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:
In accordance with the Articles of Association, a Trustee shall hold office indefinitely unless they resign, are removed or are disqualified. The Trustees have been appointed with due consideration to their background and experience, in respect to delivering the objects of the company.
Adrian Jeckells is both a Trustee and an employee of the company in the capacity of Principal. All other Trustees give their time voluntarily and receive no benefits from the charity. There must be at least three Trustees and no more than six, at any one time.
Risk Management including Current Risks
The principal risk faced by the charity lies in failing to generate sufficient income in the future, to service any financial obligations outstanding from the outlay required for relocation, and in respect of delivery of the charitable objects.
The charity needs a certain number of students in order to financially meet its objectives. The course application rate continues to increase, and the forthcoming move to alternate premises will enable the organisation to benefit from this potential.
Meetings of the Board of Trustees
The trustees meet at regular intervals throughout the year, depending on the importance of matters to be discussed, and such meetings are run in accordance with the articles of association. The articles of association also allow meetings to be held through the use of telephone, or other suitable electronic means.
Financial management
Where appropriate, systems or procedures have been established to mitigate the risk the charity faces. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions, and projects. Finance management is closely monitored, with a Finance Manager being employed by the charity.
The Principal who is also a trustee, is aware of and responsive to the financial needs of the organisation, through regular communication with the Finance Manager. All appointed trustees approve the company accounts before submission to Companies House, and give due diligence to the Independent Examiner’s Report and the Financial Statements, for their consideration.
Key Staff
London School of Musical Theatre employs three staff to administer the course; The Principal (Full-time), Course Manager (Part-time) and Finance Manager (Part-time).
All artistic/teaching staff are engaged on a freelance basis in line with their self-employed tax status. Specialist freelance theatre practitioners are engaged for the advancement of the arts charitable purpose, through delivery of the theatre-based production; such as Director, Choreographer, Musical Director, Stage Manager, Set
Designer, Costume Designer and Sound Designer
The charity plans to continue its activities to serve the community in which it operates in the forthcoming years.
The charity plans to continue stabilising and strengthening its financial health.
The organisation plans to acquire a permanent premises in the near future, to deliver its charitable objectives.
The organisation plans to continue to offer subsidised places on our course to those who will benefit from our training.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Theatrical Educational Services Limited (the charity) for the year ended 31 August 2025.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Since the charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of The Association of Certified Accountants, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the Companies Act 2006.
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Donations, grants and legacies
Investments
Taxation
Comparative Period
The comparative figures presented in the Statement of Financial Activities relate to the 8-month period from 1 January 2024 to 31 August 2024 and are therefore not directly comparable with the current 12-month reporting period.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Theatrical Educational Services Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 83 Borough Road, Southwark, London, SE1 1DN.
The financial statements have been prepared in accordance with the charity's constitution, the Companies Act 2006 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)” (as amended for accounting periods commencing from 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 applying FRS 102 Update Bulletin 1 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. The principal accounting policies adopted are set out below.
As shown in the balance sheet the charity has net liabilities.
The Trustees are aware of the need to ensure a higher income, through the recruitment of a suitable cohort of training recipients. The intent is to return to a minimum of forty students per year, which enables a suitable financial stability.
The audition process has been adapted to enable a more expedient process for offering a place on the course. This has been determined as an important factor, for the securing of the required cohort.
The charity has various contacts who have provided short term funding to overcome cashflow difficulties. These loans have been repaid before the year-end. The same contacts have indicated their willingness to provide short term funding again if necessary.
Overall the trustees are therefore confident that they can continue operating fully for at least the next 12 months and meet debts as they fall due. The trustees therefore consider that it is appropriate for the accounts to continue to be prepared on the going concern basis.
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.
Turnover is measured at the fair value of the consideration received or receivable and is in the main derived from the annual course, from which the revenue is recognised as the courses are delivered. In the event of a school year spanning more than one accounting period course revenue is apportioned between the accounting periods by reference to costs incurred in each period.
Revenue from auditions are recognised when the auditions are incurred.
Revenue from the ticket sales of school productions are recognised when the productions are incurred.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Expenditure is recognised on an accruals basis as a liability is incurred.
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill shall be considered to have a finite useful life, and shall be amortised on a systematic basis over its 20 year life.
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 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).
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.
Basic financial liabilities, including creditors are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Accounts payable 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. Accounts payable 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.
Irrecoverable VAT
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
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.
Donations, grants and legacies
Course fees
Audition income
Box income
Rental income
Investments
Other interest receivable
The average monthly number of employees during the year was:
Charitable activities
Support costs
Charitable activities
Support costs
Rent, rates, and water
Trade mark licence
London School of Musical Theatre grants and charitable awards
Costs of productions
Advertising and promotion
Tutors fees
Establishment expenses
Office expenses
Travel and subsistence and outings
Miscellaneous expenses
Cost of goods for resale
Mr A Jeckells was paid a salary during the year of £75,000 (Period to 31 August 2024: £50,000).
The emoluments paid to Mr Jeckells is in accordance clause 6 of the Articles of Association concerning allowed payments for reasonable and proper remuneration for services rendered to the charity as the Principal.
Professional fees
Interest paid and bank charges
Accountancy fees
Governance costs includes a payment to the accountants of £684, including Value Added Tax (2024- £660) for the independent examination fee.
Taxation
Theatre tax relief
Theatrical Educational Services, as a registered charity, is exempt from corporation tax under Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of the Chargeable Gains Act 1992 to the extent that surpluses are applied to its charitable purposes.
The charity does however qualify for Theatre Tax Relief in respect of certain expenditure it incurs on its theatrical productions, resulting in the tax credits included in the accounts as above.
The bank loan was obtained on 12 May 2020 under the government's Bounce Back Loan scheme in order to assist with the financial effects of the Coronavirus epidemic.
The loan is repayable in monthly instalments over a five year period commencing on the first anniversary after the loan was taken out. The interest for the first year of the loan was paid for by the government via a Business Interruption Payment. Interest charges for the charity are accruing at a rate of 2.5% per annum from 12 June 2021.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
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.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year the charity entered into the following transactions with related parties:
The founder of the school, resigned as a Company Director on 1st January 2008, before the organisation had become a Charity (21st March 2016). He has remained associated with the organisation, both before and after charitable status, through the pre-existing Trade Mark Licence agreement for the use of his intellectual property, and in recent years as an employee, in the role of financial controller. He was paid £6,000 (Period to 31 August 2024: £4,000) as financial controller during the year of this report.
In addition the founder was paid £30,000 in the period of this report, under the existing Trade Mark Licence agreement (Period to 31 August 2024: £20,000). The current Trade Mark Licence has been in operation since 16th October 2015 as registered at The Intellectual Property Office, replacing a former Licence from 28th November 2007.