The Trustees present their annual report and financial statements for the year ended 31 March 2026.
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 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)” (effective for accounting periods commencing from 1 January 2019).
The Charity’s objectives are to promote, maintain, improve and advance education by the encouragement of the arts, including the arts of drama, mime, dance, singing and music, and to formulate, prepare and establish schemes therefore provided that all the objects of the Charity shall be of a charitable nature.
The policies adopted in furtherance of these objectives are:
To use a mixture of performance, digital media and sound pedagogy to create experiences for children, young people and disabled people and marginalised and excluded communities
To build a network of partners with whom we deploy this distinct methodology
and there has been no change to these during the year.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.
During 2025/26, C&T continued to develop its distinctive practice at the intersection of theatre, digital technology and participatory learning. In a difficult financial climate for the arts, education and charitable sectors, the organisation maintained continuity of delivery while securing new project income and strengthening the role of Prospero as both a creative platform and a source of digital infrastructure for partners.
The year's activity combined three connected areas of work: participatory and networked theatre projects; bespoke commissions and research partnerships; and the continuing development and licensing of Prospero. Across these areas, C&T worked with children and young people, learning-disabled adults, schools, universities, arts organisations and communities experiencing social or economic disadvantage.
Delivery of our services
Prospero is C&T's digital platform for creating and delivering interactive learning, research and participatory storytelling experiences. It enables artists, educators and organisations to create reusable digital resources, or SmartScripts, which can combine multimedia, participant choices, movement, location and data capture. During the year, C&T continued to refine the platform and extend its application across education, culture, community participation and research.
C&T continued to work with a network of institutional and creative partners using Prospero, including King's College London and Imperial College London. Work with higher-education partners helped to demonstrate how C&T's combination of drama, digital interaction and research tools can support creative learning, simulation, participation and evaluation.
Our partnership with Imperial College London developed further through Mission Control, using narrative, role and digital interaction to create participatory STEM learning experiences. This work supported C&T's strategic ambition to apply its theatre-led methods in new educational and research settings, while retaining participation, creativity and active learning at their centre.
International work also continued. C&T maintained its long-standing relationships in New York and with partners in Korogocho, Nairobi, exploring how Prospero can support creative participation across distance and in contexts where access to resources and technology may be limited
Power Up
A major development during the year was Power Up, supported through the Department for Science, Innovation and Technology's Digital Inclusion Innovation Fund. The project brought together C&T with partners in Redditch, Bootle and Gloucestershire to explore how participatory drama and Prospero could build digital confidence among young people, including those at risk of exclusion from education, employment or training.
The project combined co-design, practical workshops and iterative development. Participants did not simply receive digital-skills training: they used games, storytelling and creative production to explore how digital technology operates in their own lives. The work also enabled C&T to develop Prospero's research and evaluation capacity, including more accessible ways for participants to reflect on their confidence, experience and learning.
Elgar at the Asylum
C&T continued its partnership with Worcester's Monday Night Club through Elgar at the Asylum, an ambitious disability-led heritage and performance project involving 174 learning-disabled adults. The project draws on the relationship between Edward Elgar, the music he conducted at the former Worcester County Pauper and Lunatic Asylum at Powick, and the lives of people who lived and worked there.
During the reporting year, participants began creative development through drama, visual arts, movement, archive research and digital storytelling. C&T led the development of the project's interactive and digital dimensions through Prospero, working alongside Monday Night Club and a wider partnership that included local and national arts, heritage and disability organizations. Following delays to the redevelopment of Worcester's Scala, plans were adapted so that the final public presentation could take place at Malvern Theatres in September 2026. This ensured that the creative ambition and public reach of the work could be maintained.
Promotion of creativity and teaching
C&T continued to advocate for theatre, digital creativity and participatory practice as means of advancing education and widening cultural participation. This included work through local cultural networks, national professional relationships and international partnerships. The organisation contributed to conversations with Arts Council England about the developing place of digital arts within the National Portfolio and presented its work to senior Arts Council colleagues.
The year also provided an opportunity to clarify C&T's longer-term artistic model. This work increasingly describes the organisation's creative intellectual property as Story Systems: participatory narrative frameworks realised through theatre and Prospero. This provides a coherent basis for connecting C&T's community projects, educational programmes, immersive productions, research partnerships and software licensing.
Organisational development
The organisation managed a period of staffing transition following the departure of its General and Finance Manager at the end of March 2025. Financial administration was supported through Fresh Financials, while company-secretarial responsibilities transferred to the Creative Producer. The Board continued to oversee staffing, finance, risk and strategic development through its quarterly meetings and its Finance and Staffing Committee.
The Board also considered the implications of Arts Council England's proposed new Digital Arts category and the extension of the current National Portfolio investment period. These discussions informed C&T's planning for 2026/27 and the development of its next business plan.
The Statement of Financial Activities shows income of £238,086 (2025: £244,657), all relating to unrestricted funding. As a recognised National Portfolio organisation income is received from Arts Council England, this is detailed in note 4 to the financial statements. The charitable company does not carry out significant fund raising activities.
Unrestricted reserves, being the total reserves of the charity, stand at £96,269 (2025: £86,336), which after allowing for tangible fixed assets gives free reserves of £89,883 (2025: £79,826).
It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at an appropriate level of up to six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Risk management
The Trustees maintain a risk management strategy, which comprises:
an ongoing review of the risks that the Charity faces and the implementation of systems to assess risks continuously:
the establishment of systems and procedures to mitigate the risks identified;
the implementation of procedures to minimise any potential impact on the Charity should any of those risks materialise.
During the year, the Board paid particular attention to the challenging funding environment, the sustainability of major project delivery, staffing capacity, information governance and safeguarding, and the protection of the Prospero name and intellectual property. These risks were monitored through the organizational risk register, financial reporting and regular Board oversight.
In 2026/27, C&T will build on the creative and organisational development undertaken during the year. The organisation will continue to bring together applied theatre, participatory storytelling and digital technology through its Story Systems and the Prospero platform.
Elgar at the Asylum will culminate in a major public presentation at Malvern Theatres in September 2026, combining performance, visual art, movement, archive material and an interactive Prospero experience. C&T will also develop further Smart Plays and participatory projects, including work with schools, universities, learning-disabled adults, young migrants and communities affected by digital exclusion.
Prospero will continue to evolve as a platform through which organisations and individual creators can develop and deliver participatory experiences without needing to code. C&T will refine its licensing and membership models, strengthen Prospero's research and evaluation tools, and develop the Prospero Commons as a curated environment in which participatory creative methods can be documented, shared, adapted and sustained.
The organisation will use the two-year extension to Arts Council England's current National Portfolio investment period to test and refine this model ahead of the next application round. It will continue to develop partnerships in education, universities, arts and culture, community inclusion and international practice, while maintaining careful oversight of cash flow, reserves and organisational capacity.
The Trustees are grateful for the support of Arts Council England, the National Lottery Community Fund, the Department for Science, Innovation and Technology, charitable trusts, commissioning partners and the many organisations and communities with whom C&T works
The Charity is a charitable Company limited by guarantee incorporated on 8 December 1993 and as amended by special resolutions dated 16 June 2000, 22 March 2005 and 27 September 2005. The Charity was established under a Memorandum of Association that established the objects and powers of the charitable company and is governed under its Articles of Association. The Charity registered with The Charity Commission for England & Wales on 19 March 2001.
The Trustees, who are also the Directors for the purpose of Company law, and who served during the year were:
The Board has the power to appoint additional Directors as it considers fit to do so. Directors are recruited from across a wide range of expertise relevant to the activities of the Charity including the arts, education and business. These positions are publicly advertised and appointments are made through a selection process managed by the existing Directors and the Artistic Director and formally approved by the Board. A retiring Director should be eligible for re-election provided such retiring Director has not served as a Director for a continuous period of 6 years immediately prior to such re-election.
None of the Trustees has any beneficial interest in the Charity. All of the Trustees are members of the Charity and guarantee to contribute £1 in the event of a winding up.
The Memorandum & Articles of Association permit the Charity to enter into contracts with Trustees where the goods or services subject to contract are properly required by the Charity.
The Board meets quarterly to manage the affairs of the Charity. An Artistic Director is appointed by the Trustees. The Board is responsible for agreeing strategic and business plans, policy setting, approval of budgets, ensuring legal compliance and risk management. The day to day management of the Charity's affairs is delegated to the Artistic Director who is the Chief Executive Officer, and who is responsible for developing strategic and artistic plans for approval by the Board, and for ensuring the delivery of those plans.
I report to the Trustees on my examination of the financial statements of Collar & Tie Limited (the Charity) for the year ended 31 March 2026.
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.
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.
Collar & Tie Limited is a private company limited by guarantee incorporated in England and Wales and a charity registered in England and Wales. The registered office is 105 High Street, Worcester, Worcestershire, WR1 2HW.
The accounts have been prepared in accordance with the Charity's memorandum and articles of association, 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)” (effective 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.
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 and that there are no material uncertainties about its ability to continue. 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.
Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Expenditure is recognised in the period in which the goods or services are received. Expenditure includes attributable VAT which is not recoverable. Expenditure is allocated to the particular activity where the cost relates directly to that activity.
Governance costs include those costs incurred in the governance of the Charity and its assets and are primarily associated with constitutional and statutory requirements.
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 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 and deposits held at call with banks.
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 and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Trade creditors 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. Trade creditors 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.
The Charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the Charity. The annual contributions payable are charged to the statement of financial activities.
Income is deferred where the Charity is not yet entitled to the use of the resources. When the pre-conditions for use are met then the income is released.
Liabilities are recognised as soon as there is a legal or constructive obligation committing the Charity to expenditure.
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.
Income generated from, and grants within, charitable activities
Charitable activity
Board meeting costs
Legal and professional fees
Independent examiners fees
None of the Trustees received any remuneration during the year (2025 - £nil) and no Trustees were re-imbursed expenses during the year (2025 - £20).
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
The average monthly number of employees during the year was:
Key management personnel remuneration was £119,849 (2025: £137,581).
The deferred income shown above together with £17,676 (2025 - £2,668) included in current liabilities, relates to grant funding for future projects, along with subscriptions for the use of Prospero for periods ranging from 1 to 5 years. The income is released over the life of the agreement.
The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.
There were no disclosable related party transactions during the year (2025 - none).