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

The group's core activities consist of:

1) Running a college of dance and performing arts.

2) Managing the property estate that is utilised by the college and holding company.

The group delivered a profit for the year of £492,493 (2024 £290,202)

The key risk areas affecting the Group relate in the main to the activities of its subsidiary and are summarised below, together with the steps being taken to address them. Some risks are outside the College’s direct control, and additional, unlisted factors may also present challenges.

Changes to Government Funding

The UK Government has confirmed significant changes to the funding arrangements currently used by the College. The existing DaDA scheme will transition to the Lifelong Learning Entitlement (LLE) student loan system, altering the level and type of financial support available to learners. Although the new model presents some advantages—such as the removal of means-testing, which may broaden access for prospective diploma students eligible for LLE loans—it also introduces uncertainty during the period of transition.

To manage this risk, the College has:

• Secured approval for registration with the Office for Students (OfS) in the “Approved” category, a key requirement for institutions seeking to offer LLE funding.

• Developed alternative financial models to support wider participation and to maintain income levels in line with the College’s growth plans during the shift from DaDa to LLE funding in 2027.

• Continued to ensure that all course provision remains sector-leading, industry aligned and competitive.

• Allocated responsibility to senior members of staff to strengthen relationships with funding agencies, ensuring the College is well-positioned as changes are introduced.

Risk: Legislation and Health & Safety

As with all education providers, the College must ensure that its operations comply with current health, safety and employment legislation. Failure to do so could expose the organisation to complaints or legal action from staff, students, or visitors.

During the 2024/25 academic year, the College strengthened its approach to managing this risk through several key actions:

• A dedicated Health & Safety Committee has been established and now meets monthly to monitor standards, review issues, and oversee ongoing compliance. The risk assessments from these are shared with the Senior Management committee, Audit and risk committee and the Board of Directors.

• The College appointed Create Safe as its external competent adviser, providing specialist oversight and regular checks on all aspects of our health and safety arrangements.

• A new Head of HR has joined the organisation, bringing responsibility for ensuring employment practices, policies and staff management procedures meet statutory requirements.

• All staff continue to receive appropriate health and safety training to ensure they understand their responsibilities and can maintain a safe working and learning environment.

• The Executive Director and the Maintenance manager attended and completed an IOSHH health and safety management course to further strengthen operational and strategic Health and Safety oversite.

The College is undertaking a major capital investment in its estate to support long-term growth and enhance the quality of our learning environment. We have entered into a lease agreement with the University for the Creative Arts (UCA) to part-occupy one of their vacant buildings. The initial lease term is four years, with an option to extend for a further two years. This arrangement provides the College with the flexibility required while we undertake a comprehensive review of our estate’s strategy, aligned to our ten-year institutional vision.

Risk Mitigation:

To ensure effective oversight and reduce exposure to financial, operational and delivery risk, the following controls have been implemented:

• Transparent financial oversight: All capital costs, forecasts and variances are reviewed by the Audit and Risk Committee and approved by the Board of Directors.

• Robust contractor selection: A full procurement and interview process was undertaken to appoint the building and refurbishment team, ensuring appropriate capability, compliance and value for money.

• Detailed project planning: A full programme plan and Gantt chart have been produced, incorporating contingency to accommodate reasonable slippage without impacting critical milestones.

• Regular reporting and RAG status tracking: Executive Director will receive structured updates against budget, timeline and risk indicators, enabling early intervention if required which will be shared with Audit and Risk and Board members.

• Operational readiness planning: Parallel workstreams have been established to ensure smooth transition into the new space, including IT infrastructure, safeguarding, accessibility and student-flow planning.

• Business continuity assessment: Contingency arrangements are being arranged should works be delayed or costs materially change, including extending current lease options to mitigate project slippage.

• Stakeholder engagement: Staff and students are updated throughout the project to ensure expectations are managed and potential disruptions are mitigated.

Turnover £4,325,134 (2024 £3,857,551)

Profit before tax £592,179 (2024 £366,572)

On behalf of the board

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

The principal activity of the company and group continued to be that of managing its subsidiary (the college) and the group's land/estate resources.

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a dividend.

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

In October 2025 the College signed a lease with the University for the Creative Arts (UCA) to part occupy one of their buildings in Epsom. The lease is for a minimum of 4 years with the option to extend for a further 2 years. The Board believe this will provide the capacity the College needs in the medium term to achieve its growth plans while it continues to evaluate longer term options.

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

United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group 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;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 auditor of the company 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 auditor of the company is aware of that information.

We have audited the financial statements of Laine Theatre Arts Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group 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 group's and the parent company's affairs as at 31 August 2025 and of the group's 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 group and parent 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 group's and parent 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.

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' report 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.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

• We obtained an understanding of the legal and regulatory frameworks applicable to the Group and the sector in which it operates. We determined that the following laws and regulations were most significant: The Companies Act 2006, UK GAAP.

• We obtained an understanding of how the Group are complying with those legal and regulatory frameworks and made enquiries to the management of known or suspected instances of fraud and non-compliance with laws and regulations. We corroborated our enquiries through our review of board minutes, other relevant meeting minutes and review of correspondence with regulatory bodies.

• We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the audit team included:

• Identifying and assessing the controls management has in place to prevent and detect fraud;

• Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

• Challenging assumptions and judgements made by management in its significant accounting estimates and judgements;

• Identifying and testing journal entries, in particular journal entries posted with unusual account combinations;

• Assessing the extent of compliance with the relevant laws and regulations.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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 collusions.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters - Prior period financial statements unaudited

The Company was not required to have a statutory audit for the year ended 31 August 2024, as it was entitled to exemption from the provision of the Companies Act 2006 relating to the audit of the financial statements for the period, by virtue of Section 477, and no member or members requested an audit pursuant to Section 476 of the Act. Accordingly, the corresponding figures for the year ended 31 August 2024 are unaudited.

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £268,661 (2024 - £4,849 profit).

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

Laine Theatre Arts Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is First Floor, Sheraton House, Lower Road, Chorleywood, Hertfordshire, United Kingdom, WD3 5LH.

The group consists of Laine Theatre Arts Holdings Limited and all of its subsidiaries.

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 amounts in these financial statements are rounded to the nearest £.

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

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

The consolidated group financial statements consist of the financial statements of the parent company Laine Theatre Arts Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

All financial statements are made up to 31 August 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

During the year, certain properties classified as investment properties in the parent company were occupied by the subsidiary. On consolidation, the property has been reclassified to tangible fixed assets as it is owner occupied from a group perspective. The fair value at the date of reclassification has been treated as deemed cost.

At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Income comprises the invoiced value of tuition fees, including bursaries granted and net of scholarships and awards including discounts given to those on the Dance and Drama Awards (DaDA) scheme. Additional amounts are recognised on receipt.

Grants receivable from the Department for Education are credited to the Statement of Comprehensive Income in the year for which they are receivable.

Rents are recognised on a straight line basis over the term of the lease.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Expenditure is recognised on an accruals basis when 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.

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 profit and loss account.

Assets in the course of construction are not depreciated.

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.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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.

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

When the group acts as a lessor, a lease is classified as a finance lease whenever it transfers substantially all the risks and rewards of ownership of the underlying asset to the lessee, either at the end of the lease term or for the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains both lease and non-lease components, the group allocates the consideration in the contract to the two elements.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

In the application of the group’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 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.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The subsidiary is currently capitalising the initial costs relating to a long term new development of the college that will allow it to grow significantly in student numbers, but if for any reason this does not progress to completion said costs would need to be written off. Costs to 31st August 2025 amount to £430,860 (2024: £ 309,113).

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

Their aggregate remuneration comprised:

Fees paid to a director of £84,000 (2024: £84,000) were capitalised as referred to in note 2.

No employees received remuneration greater than £100k.

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:

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

Land and buildings includes £430,860 (2024: £309,313) of preliminary works analysis and consultancy costs relating to advisory services provided pertaining to to the the development of new premises. The work on the premises is yet to begin and therefore the costs have not been depreciated.

The fair value of the investment property has been arrived at on the basis of a valuation carried out on 31 March 2026 by Stiles Harold Williams Partnership LLP, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. In the directors' opinion the value has not materially changed since this valuation.

Details of the company's subsidiaries at 31 August 2025 are as follows:

The following are the major deferred tax liabilities and assets recognised by the group and company:

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

At the year end the group held a lease on a property in East Street, Surrey. The lease is due to expire 31 July 2026.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Transactions took place during the year between the company and its subsidiary, Laine Theatre Arts Limited.

Transactions with related parties during the year were rent receivable of £248,400 (2024: £230,000), management fee receivable £70,000 (2024: £65,000) and loan interest payable £23,700 (2024 £30,000). Amounts due to group and associated companies amounted to £353,223 (2024: £587,808), and amounts due from group and associated companies amounted to £57,285 (2024: £92,625). Amounts due from the company's director were £73,052 (2024: £41,949)

The ultimate controlling party is Elizabeth Jenkins Discretionary Trust 2026, of which the trustees are, Mr P. Morel and Mr D.J Manning