Lord Andrew Lloyd Webber's theatre conglomerate, LW Theatres, has issued a warning about the "notable impact" expected from the upcoming increase in employer's National Insurance contributions (NICs).
Chancellor Rachel Reeves announced in her October 2024 Budget that NICs would rise by 1.2 percentage points to 15 per cent starting April, aiming to generate £25bn in tax receipts, as reported by .
Based in London, LW Theatres, owned by the renowned composer, is approaching the new financial period following a year where its turnover rose to nearly £200m, despite seeing its pre-tax profit halved.
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The group comprises prestigious venues including The Theatre Royal Drury Lane, The London Palladium, Adelphi Theatre, His Majesty's Theatre, Cambridge Theatre, and Gillian Lynne Theatre.
The six theatres experienced a 1.3 per cent uptick in attendance to 3.3 million, which contributed to the company's turnover increase from £190.7m to £198.1m.
However, according to newly filed accounts at Companies House, LW Theatres saw its pre-tax profit drop from £21.4m to £11.6m for the year ending 30 June 2024.
Refurbishment and maintenance spending on the theatres almost doubled over the year, rising from £2.5m to £4.9m.
Box office revenues climbed from £126.2m to £131.4m, while the average number of employees expanded from 471 to 590.
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These figures come ahead of the anticipated financial results for Andrew Lloyd Webber's broader entertainment empire, which are expected to be released by the end of the month.
The board of Andrew Lloyd Webber's LW Theatres released a statement saying: "We expect another full year of trading next year, although the recently announced increase in national insurance in the next financial period and beyond will have a notable impact on our business."
In its most recent financial year, LW Theatres hosted an array of popular shows including Frozen, Back to the Future: The Musical, Matilda, and Phantom of the Opera.