REGISTERED COMPANY NUMBER: 05347772 (England and Wales)

REGISTERED CHARITY NUMBER: 1051578

Report of the Trustees and

Unaudited Financial Statements

for the Year Ended 31 March 2026

for

Birmingham Centre For Arts Therapies

Page

Report of the Trustees

1

to

5

Independent Examiner's Report

6

Statement of Financial Activities

7

Balance Sheet

8

to

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

to

24

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2026. The trustees have adopted the provisions of 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).

This report is also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

CHAIR'S STATEMENT

It is my privilege to present this report on behalf of the Board of Trustees of Arts Therapies UK.

The year ending 31 March 2026 was one of the most significant in the charity's recent history. It was a year that tested us financially, challenged some long-held assumptions and required us to make difficult decisions about the future of the organisation.

Across the mental health and charity sectors, demand for support continues to grow while funding becomes increasingly difficult to secure. Schools, families and communities are seeking help with increasingly complex needs at a time when public finances remain under considerable pressure. These challenges are not unique to Arts Therapies UK, but they have required us to think carefully about how we continue to deliver our charitable purpose in a sustainable way.

Our response has not been to retreat or simply reduce our ambitions. Instead, we have used this period to strengthen the organisation, review how we work and ensure that the charity is well placed to meet future need.

The reported deficit is significant, but it does not define Arts Therapies UK. It reflects a year in which previously secured funding was invested in delivering charitable services, grant income reduced sharply, and the organisation chose to confront these challenges with honesty rather than delay difficult decisions.

The Board is confident that the changes made during the year have established a stronger foundation for the future. We are building an organisation that is financially resilient, professionally credible and firmly rooted in its charitable purpose.

On behalf of the Board, I thank our staff, therapists, volunteers, funders, commissioners, schools, corporate partners and supporters for their continued commitment.

Most importantly, I thank the children, adults, families and communities who place their trust in Arts Therapies UK. Their confidence in our work continues to inspire everything we do.

I also want to thank my fellow Trustees who have given their time and expertise to support us in our new direction.

Arts Therapies UK has always sought to combine creativity with professional excellence. As the sector continues to evolve, we intend not simply to respond to change, but to help shape the future of safe, effective and accessible arts therapies.

Richard French-Lowe

Chair of Trustees

Arts Therapies UK

OBJECTIVES AND ACTIVITIES

Objectives and aims

Arts Therapies UK exists to improve mental health and wellbeing through the use of creative, evidence-based therapeutic interventions. Our charitable objectives, as recorded with the Charity Commission, are

1)

The relief of people with special needs by the provision of arts therapies

2)

To advance education and promote research and to publish the useful results of such research into arts therapies.

Public benefit

In setting these objectives and aims, the Trustees have given due regard to the guidance published by the Charity Commission on Public Benefit.

ACHIEVEMENTS AND PERFORMANCE

Making Difficult Decisions

One of the Board's most important responsibilities is ensuring that every service we provide remains clinically safe, financially sustainable and consistent with our charitable purpose.

During the year we undertook a comprehensive review of our activities and made some difficult decisions about where the charity should focus its future efforts.

We concluded that our Arts in Health programme, although successful in reaching large numbers of people, could no longer be delivered in a way that met the standards of governance, safeguarding and financial sustainability that we expect of ourselves. As participants presented with increasingly complex needs, community wellbeing provision was often required to operate closer to the threshold of regulated therapeutic practice. However, funding arrangements did not evolve to match the heightened need for professional supervision, specialist skills, and risk management.

Bringing this programme to a close was not a reflection of its value or the dedication of those involved. Rather, it reflected the Board's commitment to prioritising quality, safety, and long-term sustainability over organisational growth. Such decisions are never easy for a charity, but they are essential if we are to maintain our position as a trusted provider of mental health services.

Strengthening the Charity

Alongside these changes, we have continued to develop a more resilient operating model.

Our regulated therapy services remain the heart of Arts Therapies UK. Through art, music, drama, dance movement and play therapy, qualified practitioners continue to support children, young people and adults experiencing emotional and mental health difficulties.

We are also strengthening our partnerships with schools, recognising both the increasing demand for therapeutic support and the financial pressures under which schools now operate. Our ambition is not simply to provide more therapy sessions but to become trusted partners in helping schools improve wellbeing, inclusion and safeguarding outcomes.

The Board is equally committed to increasing unrestricted income through commissioned services, school partnerships, corporate wellbeing, individual giving and trust fundraising. This is not a departure from our charitable purpose. It is how we protect it.

Commercial income provides the infrastructure that enables safe, professionally governed services, while charitable funding ensures that people are not excluded from support because of their ability to pay. We believe these two approaches are complementary rather than competing, and together they provide the strongest foundation for the charity's future.

FINANCIAL REVIEW

Financial Performance

The charity recorded income of £489,143 during the year, with expenditure of £628,153, resulting in a reported deficit of £139,010. This compares with income of £704,198 and expenditure of £674,701 in the previous year.

The principal reason for the reduction in income was a significant fall in grant funding, from £308,112 to £110,455, reflecting a much more competitive funding environment. Income from charitable activities proved considerably more resilient, reducing only modestly from £390,368 to £373,806.

Importantly, the reported deficit does not tell the whole story. A substantial proportion reflects the planned expenditure of restricted grant funding received during previous financial years. Those funds were awarded to deliver services during 2025-26 and have therefore been spent in accordance with their intended purpose.

The Board nevertheless recognises the pressure placed on unrestricted funds. While demand for our services remains strong, charitable need continues to grow faster than available funding. This is a challenge faced by many organisations across our sector, and one we have addressed directly during the year.

Reserves policy

The charity's policy is to hold unrestricted reserves at a target level of 10% of annual turnover, to ensure resilience and stability.

As of 31 March 2026, our reserves totalled £114,876, of which £69,398 are restricted. The remaining £45,478 of free reserves is just below our target of 10% of turnover by only £3,436.

Going concern

There are no material concerns about the charities ability to continue. The budgeted income and expenditure for the following year, based on reduced levels of service, is sufficient fort the charity to continue as a going concern.

LOOKING AHEAD

The challenges facing mental health services are unlikely to diminish. Demand continues to grow, while funding remains uncertain. We therefore believe charities must combine strong governance, financial discipline and clinical excellence if they are to continue making a meaningful difference.

Our priorities for the coming year are clear:

•

continue to strengthen earned and unrestricted income;

•

rebuild financial resilience and reserves;

•

expand high-quality therapy services and strategic school partnerships;

•

continue securing grant funding that increases access for those unable to pay;

•

maintain the highest standards of clinical governance, safeguarding and professional practice.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document and charity constitution

The charity is a Charitable Company, Limited by Guarantee. It was opened September 1993, registered as a Charity in December 1993 and became a Company Limited by Guarantee in January 2005.

Structure, Governance and Management

The Board of Trustees has continued to provide robust oversight and strategic direction. Trustees have been fully engaged in supporting organisational restructuring, reviewing risk management, and ensuring strong financial and governance policies.

Throughout the year the Board has worked closely with the Chief Executive Officer and senior leadership team to strengthen financial oversight, governance and strategic planning.

We would like to recognise the leadership shown by Russell Wall, our Chief Executive Officer, during what has been an exceptionally demanding year. We also thank our Chief Financial Officer and senior leadership team for their careful stewardship of the organisation and their commitment to transparent decision-making.

The Board has been united in its determination that the charity should emerge from this period stronger, more focused and better equipped to meet future challenges.

Our People

None of this would have been possible without the professionalism and commitment of our staff, therapists, facilitators and volunteers.

Throughout a period of significant organisational change, they have continued to provide compassionate, high-quality support to the people who rely on our services. I would also like to acknowledge colleagues whose roles were affected by changes during the year. Their contribution to the development of Arts Therapies UK has been significant and sincerely appreciated.

Behind every figure in these accounts is a child, adult, family or school that has received support at a difficult point in their lives. Financial sustainability matters because it enables those services to continue, and every decision taken by the Board during the year has been guided by that principle.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

05347772 (England and Wales)

Registered Charity number

1051578

Registered office

c/o Locke Williams Associates LLP

Studio 2

50-54 St Pauls Square

Birmingham

B3 1QS

Trustees

Dr J Clarke

R French-Lowe

O Lee

C Graham

W A Ham (appointed 7.7.25)

S J Gambardella (appointed 7.7.25)

K Self (appointed 7.7.25)

The above Trustees are also Directors of the company.

Company Secretary

R Wall

Independent Examiner

Locke Williams Associates LLP

Chartered Accountants

Studio 2

50-54 St Pauls Square

Birmingham

West Midlands

B3 1QS

Approved by order of the board of trustees on 11 August 2026 and signed on its behalf by:

R French-Lowe - Trustee

Independent examiner's report to the trustees of Birmingham Centre For Arts Therapies ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2026.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, 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:

1.	accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts 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 accounts 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 accounts to be reached.

David Williams FCA FCCA

Locke Williams Associates LLP

Chartered Accountants

Studio 2

50-54 St Pauls Square

Birmingham

West Midlands

B3 1QS

8 September 2026

31.3.26

31.3.25

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

19,451

92,795

112,246

309,871

Charitable activities

4

Therapy

366,406

7,400

373,806

390,368

Investment income

3

2,631

-

2,631

3,189

Other income

460

-

460

770

Total

388,948

100,195

489,143

704,198

EXPENDITURE ON

Raising funds

5

17,100

-

17,100

22,935

Charitable activities

6

Therapy

396,953

214,100

611,053

651,766

Total

414,053

214,100

628,153

674,701

NET INCOME/(EXPENDITURE)

(25,105

)

(113,905

)

(139,010

)

29,497

Transfers between funds

16

(2,500

)

2,500

-

-

Net movement in funds

(27,605

)

(111,405

)

(139,010

)

29,497

RECONCILIATION OF FUNDS

Total funds brought forward

73,083

180,803

253,886

224,389

TOTAL FUNDS CARRIED FORWARD

45,478

69,398

114,876

253,886

31.3.26

31.3.25

Notes

£

£

FIXED ASSETS

Tangible assets

12

3,969

4,120

CURRENT ASSETS

Debtors

13

30,891

43,017

Cash at bank

92,792

216,571

123,683

259,588

CREDITORS

Amounts falling due within one year

14

(12,776

)

(9,822

)

NET CURRENT ASSETS

110,907

249,766

TOTAL ASSETS LESS CURRENT LIABILITIES

114,876

253,886

NET ASSETS

114,876

253,886

FUNDS

16

Unrestricted funds

45,478

73,083

Restricted funds

69,398

180,803

TOTAL FUNDS

114,876

253,886

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2026.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2026 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

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

The financial statements were approved by the Board of Trustees and authorised for issue on 11 August 2026 and were signed on its behalf by:

R French-Lowe - Trustee

Cash flows from operating activities

Cash generated from operations

1

(123,890

)

31,073

Net cash (used in)/provided by operating activities

(123,890

)

31,073

Cash flows from investing activities

Purchase of tangible fixed assets

(2,520

)

(2,474

)

Interest received

2,631

3,189

Net cash provided by investing activities

111

715

Change in cash and cash equivalents in the reporting period

(123,779

)

31,788

Cash and cash equivalents at the beginning of the reporting period

216,571

184,783

Cash and cash equivalents at the end of the reporting period

92,792

216,571

1.	RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

31.3.26

31.3.25

£

£

Net (expenditure)/income for the reporting period (as per the Statement of Financial Activities)

(139,010

)

29,497

Adjustments for:

Depreciation charges

2,671

2,041

Interest received

(2,631

)

(3,189

)

Decrease in debtors

12,126

5,209

Increase/(decrease) in creditors

2,954

(2,485

)

Net cash (used in)/provided by operations

(123,890

)

31,073

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.25

Cash flow

At 31.3.26

£

£

£

Net cash

Cash at bank

216,571

(123,779

)

92,792

216,571

(123,779

)

92,792

Total

216,571

(123,779

)

92,792

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing.

No amount is included in the financial statements for volunteer time in line with the Charities SORP (FRS 102).

Expenditure

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 a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Allocation and apportionment of costs

Expenditure on charitable activities includes:

-

Direct costs being directly related therapists fees and travel costs incurred in the performance of the therapy programmes

-

Support costs, being those costs that that assist the work of the charity but do not directly represent charitable activities and include office premises costs, administrative support costs and governance costs. They are incurred directly in support of expenditure on the objects of the charity.

Where costs can not be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Office equipment and furniture

-

25% on cost

Computer equipment

-

25% on cost

The costs of minor additions or those costing below £500 are not capitalised.

Taxation

The charity is registered with the Charity Commission and under the provisions of Section 478 Corporation Tax Act 2010, is exempt from liability to taxation on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Financial instruments

The Charity only has 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. These basic financial instruments include debtors and creditors, receivable or payable within one year and with no with stated interest rate.

Cash and cash equivalents

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.

2.	DONATIONS AND LEGACIES

31.3.26

31.3.25

£

£

Donations

1,791

1,759

Grants

110,455

308,112

112,246

309,871

Grants received, included in the above, are as follows:

31.3.26

31.3.25

£

£

National Lottery Community Fund

38,278

75,889

Birmingham Cty Council

-

73,400

G H Collins

1,000

-

Baron Davenports

1,500

1,700

Eveson Charitable Trust

20,000

-

Birmingham District Nursing Charitable Trust

-

3,000

Edward and Dorothy Cadbury Trust

-

2,500

Roger & Douglas Turner Charitable Trust

5,000

5,000

WED Charitable Trust

-

1,000

Souter Charitable Trust

-

3,000

Cole Charitable Trust

2,000

2,000

Arnold Clark

-

1,000

DG Albright Charitable Trust

-

500

George Fentham Birmingham Charity

3,000

-

Lillie Johnson Charitable Trust

500

500

Fitton Trust

-

300

Grimmitt Trust

3,000

-

Groundworks

500

-

Garfield Weston Foundation

-

15,000

W A Cadbury

-

25,000

City of Wolverhampton Council

-

5,632

Sir Jules Thorn Trust

-

3,000

Richard Kilcuppes Charity

-

500

Awards For All

20,000

18,736

Bentley Advancing Life Chances

-

500

Eric W Vincent Trust

510

780

The Grantham Yorke Trust

-

4,000

G J W Turner Trust

1,000

1,000

The James Frederick And Ethel Anne Measures Charity

-

1,500

Keith and JoanMindelshon Charitable Trust

-

1,000

The Lord Austin Trust

2,000

1,500

The Saintbury Trust

3,000

3,000

Squire Patton Boggs Charitable Trust

-

500

The Haramead Trust

-

5,000

The Patrick Trust

2,000

2,000

Department for Education (DfE)

-

7,943

Hodge Hill Neighbourhood Network Scheme

-

9,991

Arts Council England

-

26,971

Ways for Wellbeing UK CIC

-

3,330

Warwick Town Council

-

1,440

Henry James Sayer Charity

750

-

The Kaye Charitable Trust

500

-

The John Avins Trust

1,000

-

Grimley Charity

750

-

Sandwell Council

4,167

-

110,455

308,112

3.	INVESTMENT INCOME

31.3.26

31.3.25

£

£

Deposit account interest

2,631

3,189

4.	INCOME FROM CHARITABLE ACTIVITIES

31.3.26

31.3.25

Activity

£

£

Therapists sessional fees

Therapy

290,934

307,505

Arts in Health

Therapy

82,872

82,863

373,806

390,368

5.	RAISING FUNDS

Raising donations and legacies

31.3.26

31.3.25

£

£

Staff costs

17,100

22,935

6.	CHARITABLE ACTIVITIES COSTS

Support

Direct

costs (see

Costs

note 7)

Totals

£

£

£

Therapy

487,503

123,550

611,053

7.	SUPPORT COSTS

Governance

Management

costs

Totals

£

£

£

Therapy

121,870

1,680

123,550

Support costs, included in the above, are as follows:

Management

31.3.26

31.3.25

Total

Therapy

activities

£

£

Wages

69,863

64,151

Rent

-

144

Administration

17,973

10,772

Meetings

851

653

Communication

11,676

16,042

Legal and professional

600

-

Light, power & heating

1,935

13,211

Training & courses

4,235

919

Miscellaneous

2,654

5,552

Advertising & marketing

7,983

1,872

Carried forward

117,770

113,316

31.3.26

31.3.25

Total

Therapy

activities

£

£

Brought forward

117,770

113,316

Insurance

1,429

1,183

Depreciation of tangible and heritage assets

2,671

2,041

121,870

116,540

Governance costs

31.3.26

31.3.25

Total

Therapy

activities

£

£

Accountancy and legal fees (including independent examination)

1,680

1,744

8.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.3.26

31.3.25

£

£

Depreciation - owned assets

2,671

2,041

Independent examination

600

540

9.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2026 nor for the year ended 31 March 2025.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2026 nor for the year ended 31 March 2025.