The trustees present their annual report and financial statements for the year ended 30 November 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 of Association, 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)".
The directors of the charitable company are its Trustees for the purpose of charity law and throughout the report are collectively referred to as the Trustees.
The period from December 2024 to November 2025 has been a year of recovery and renewed creative momentum for Vision Mechanics, following two financially challenging years.
The company experienced significant financial pressure in the previous two years when our award-winning production The Fantastic Life of Minnie Rubinski was unsuccessful in obtaining Touring Fund support from Creative Scotland and we were unable to argue to HMRC that the Theatre Tax Relief claim that had been submitted for that production in November 2022 was valid. This income would have enabled us to recoup the investment in the production and preparation for touring.
During the reporting period, the organisation continued development of a new marionette theatre production, Circus of Dreams. The creative research and production approaches developed through Minnie Rubinski have continued to inform this new work, supporting the company’s ongoing artistic evolution. Production activity during the year centred on the creative and staging development of Circus of Dreams, including narrative and character development, puppet design and making, early rehearsal and staging research, and technical planning for future touring. This period of work has been essential in establishing the artistic language and practical framework of the production. The company expects to complete the final build and rehearsal phase of Circus of Dreams and begin touring in the late summer or early autumn of 2026.
Alongside production development, Vision Mechanics has delivered participatory activity that introduces people to marionette-making and manipulation. Approximately 30 participants engaged in introductory workshops, creating simple marionettes and exploring the fundamentals of the craft. This work supports the organisation’s wider skills development and engagement aims and sits alongside the production process for Circus of Dreams.
Kim Bergsagel and Symon Macintyre remain among the very few practising marionette puppeteers in Scotland. The organisation therefore continues to view the transmission of marionette-making and performance skills as a long-term cultural priority, delivered through both its productions and its wider engagement activity.
The directors consider that the organisation enters the next period with renewed confidence in its artistic direction and delivery model. While fundraising remains essential to enable the completion and touring of Circus of Dreams, Vision Mechanics is optimistic about its capacity to rebuild sustainable touring activity and to widen access to marionette theatre across Scotland.
Plans For Future Periods
The main focus in the medium term is to take The Circus of Dreams on a major Scottish tour later in 2026. The company will also develop new productions that use marionettes and to build partnerships that support touring, skills development and community engagement across Scotland.
As described above the main activity during the year to 30 November 2025 was work on the Circus of Dreams production, which had just begun in the previous year. Funding of £85,000 was received in the year and a further £126,445 has been received since 1 December 2025 to add to the balance carried forward in this restricted fund of £28,596. We expect that this funding will be sufficient to complete work on the production by the end of the financial year.
There was an overall surplus of £9,826 for the year, which was split £12,207 in restricted funds and a deficit of £2,381 in unrestricted funds. This position is a significant improvement on the past few years.
It is policy of of the charity to maintain free reserves, which are it unrestricted funds excluding fixed assets held in the general fund, sufficient to cover the management, administration and support costs for three months. These costs are estimated to amount to approximately £35,000 per annum excluding depreciation if operations are at what would be considered an optimal level. At 30 November 2025 free reserves amount to £3,300 (2024:nil). This increase is due to the improved results and the reducing net book value of fixed assets. A further improvement is anticipated over the coming year.
Going Concern
Although the charity did not have sufficient reserves to meet the definition of going concern at 30 November 2025 the projections for the current year indicate that it can continue to operate on that basis. We therefore consider it appropriate to continue to prepare the financial statements on a going concern basis.
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:
Trustees are appointed on the basis of their experience. Profiles of possible candidates are submitted and the Board decides whom to approach. Upon appointment Trustees also become members of the charitable company.
The Board of Trustees, who are elected in accordance with the Articles of Association, is responsible for the management of the charity. Board meetings are held at least four times a year to review and agree matters of strategy and principle as well as review performance. Carrying out the charitable activities is delegated to the Artistic Director and he and the Board of Trustees are considered to be the senior management team.
Related party transactions, which include the amount paid to the Artistic Director, are disclosed in note 11 to the accounts.
A prospective Trustee is invited to attend a Board meeting to learn about the aims of the charity and the expected commitment before they decide whether to be appointed. New Trustees are provided with a copy of the constitution and documentation that explains the charity's vision and activities.
Risk management
The Trustees are continuing to assess the major risks to which the charity is exposed and are in the process of compiling a risk register. The main risks are considered to be the loss of key personnel and the need to secure long term sources of funding. The latter is being addressed by a programme of grant applications for new projects and a further application for central funding will be made to Creative Scotland.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 30 November 2025, which are set out on pages 5 to 15.
The charity’s trustees, who are also the directors of Vision Mechanics for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, 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 financial statements.
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 financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Vision Mechanics is a private company limited by guarantee incorporated in Scotland. The registered office is 81 Great Junction Street, Edinburgh, EH6 5HZ.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, 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. 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.
All income is recognised when the charity has entitlement to the income, it is more likely than not that the income will be received and the amount can be measured with sufficent reliability.
Donations and grants are recognised when there is evidence of entitlement, it is probable that such income will be received and the amount can be measured with sufficient reliability. Entitlement usually arises immediately on receipt and such income is deferred only when the donor specifies that the grant or donation must only be used in future accounting periods. or when the donor has imposed conditions which must be met before the charity has unconditional entitlement. The value of services provided by volunteers has not been included in donations.
Income from charitable activities includes income earned both from the supply of good or services under contractual arrangements and from performance related grants which have conditions that specify the provision of particular goods or services to be provided by the charity. Income from charitable activities is recognised as earned as the related goods or services are provided.
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of obligation can be measured or estimated reliably.
Liabilities are measured on recognition at historical cost and the subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date.
All expenditure is accounted for on an accruals basis. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.
All expenses including support and governance costs are allocated or apportioned to the applicable expenditure headings. Further information on the basis of allocation is given below.
Expenditure on raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes. It includes the costs of all fundraising activities and events together with those costs incurred in seeking donations, grants and legacies.
Charitable expenditure comprises all costs incurred by the charity in undertaking activities that further its charitable aims in the delivery of its activities and services for its beneficiaries. It includes support costs on administrative and finance functions, business support and IT, and governance costs, which cover matters dealing with public accountability and statutory requirements, such as independent examination.
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.
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.
Vision Mechanics has only financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
Performances, pageants and workshops
Grants
Studio rental
Production and performance costs
Travel and motor costs
Anne Fleming received administration fees of £15,500 (2024:£10,700). No reimbursed expenses were paid to trustees in the year to 30 November 2025 (2024 : £nil).
Production and other fees of £14,740 were invoiced by the Red Dog Production Company, in which the artistic director, Symon Macintyre, is a partner (2024: £8,500).
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 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.
Restricted funds comprises grants and other restricted income received in respect of specific productions. Costs have been allocated to the level of restricted funding received and shortfalls are accounted for in the general fund.
Capital grants have been received from Creative Scotland and Leader to fund the purchase of equipment. The depreciation of these assets will be charged to this fund until they are written off.
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 related party transactions in the year to 30 November 2025.
The tenants improvements relate to the Big Shed, a large workshop space at Drummohr, Prestonpans. Symon Macintyre has a ten year renewable lease of this property and has given an informal lease of the space there to Vision Mechanics. This is currently on a rent free basis.