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2021-12-31-accounts

Charity registration number 1014891

Company registration number 02759117 (England and Wales)

THE CRITERION THEATRE TRUST

(A COMPANY LIMITED BY GUARANTEE)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees A Banes
S Fry
S Greene
S Rosen
Lily Bourne (Appointed 21 February 2022)
Secretary A Banes
Charity number 1014891
Company number 02759117
Principal address 2 Jermyn Street
London
SW1 4XA
Registered office 73 Cornhill
London
EC3V 3QQ
Independent Auditor Gerald Edelman LLP
73 Cornhill
London
EC3V 3QQ
Bankers The Royal Bank of Scotland Plc
London Piccadilly Circus Branch
48 Haymarket
London
SW1Y 4SE
Solicitors Howard Kennedy LLP
No.1 London Bridge
London
SE1 9BG

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) CONTENTS

Page
Trustees' report 1 - 5
Independent auditor's report 6 - 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 24

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their annual report and financial statements for the year ended 31 December 2021.

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 Charities Act 2011, 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)” (as amended for accounting periods commencing from 1 January 2019).

Objectives and activities

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, music, ballet, opera, puppetry, painting and sculpture, photography, cinema literature and poetry and to formulate, prepare and establish schemes to meet these objectives.

To achieve these aims the Trust:

Our key educational focus is to promote and advance the involvement of young people in the arts primarily by making this historic venue available to them both as performers and engaged theatre goers.

In setting the objectives and planning its activities the Trustees have considered the Charity Commission guidance on public benefit, including the guidance on public benefit and fee charging. The theatre relies on donations and income from fees and charges to cover its operating costs. In setting the level of fees the trustees give careful consideration to the accessibility of the theatre.

Criterion New Writing is a ground breaking education program offered by the Trust. It involves a series of script writing and development workshops taking place on stage. It is free to apply and take part.

Activities

The theatre remained closed due to Covid 19 restrictions into the first quarter of 2021 and the activities of the Trust were for the most part suspended. Technical and building staff came off furlough to part time working in January to carry out maintenance work and refurbishment in preparation for re-opening later in the year.

The full permanent Criterion staff returned with four weeks of production rehearsals in mid-April and then reopened on the 20th May with the production of Amélie playing to restricted capacity under the then current Covid restrictions. The severely restricted permitted capacity, below 50%, limited the income that could be generated both by rental to the producer and by front of house operations. The Cultural Recovery Fund grant supported the Trust through the closure period and essentially enabled the Trust to re-open on these restricted terms and employ a team of performance staff from May onwards. The production deal allowed for the rental and capacity to be increased as restrictions were gradually lifted. Although delayed from the anticipated July date we were able to open to full capacity at the end of August.

Significant work was done prior to re-opening, with the aid of the CRF grant, to ensure covid-19 safe mitigations were in place and ensured compliance with the SOLT industry standard: See It Safely. A substantial review was carried out on the air conditioning system including monitoring levels of air flow and the replacement of filters to improve air circulation and quality.

The production of Amélie ran its booked run to September, with just a couple of covid related performance cancellations, and was followed in October by the delayed run of the critically acclaimed Pride and Prejudice (sort of), originally scheduled for November 2020.

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

Post lockdown opening, the Criterion had 31 performing weeks with a total of 227 performances and played to audiences of 75,379 for the year.

The Trust’s Criterion New Writing programme resumed initially online, although the planned second Criterion Partnerships programme was further postponed to 2022.

Daytime use of the theatre by the Trust for the development of new work recommenced although still curtailed from normal levels. Covid safe restrictions remained in place in order to protect our main production and mitigate against the resurgence of cases at the end of the year.

Financial review

The statement of financial activities shows net surplus of £107,154

The Trust’s activities are financed by the income it raises itself and is therefore reliant on the theatre being fully programmed throughout the year. For the first four months of 2021 the theatre was not able to raise income and relied on support from the Cultural Recovery Fund Grant.

During closure, work was done to move both the ticketing and front of house sales to digital and cashless operations and new systems installed to encourage pre booking for front of housing trading in order to maximise income.

Once we were able to open to our full capacity without restrictions, full rent and contra levels were resumed.

Repayments have begun on the government Bounce Back Loan of £50,000. The Trust’s intention being to repay the loan as early as possible once trading has stabilised.

The per ticket Restoration Levy has been increased to £1.25 per ticket to support the Trust in maintaining the Grade II listed building.

Reserves policy

The total funds held by the Trust at 31 December 2021 were £1,710,152 (2020: £1,602,998). Of these, the funds not committed or invested in fixed assets ("the free reserves") were £1,642,920 (2020: £1,595,375).

It is the policy of the company that its free reserves should be maintained at a level equivalent to a minimum of six month’s expenditure, including potential redundancy liabilities but excluding the salary costs associated with the theatre being programmed with a production. The policy was reviewed in December 2021 with the reserves level currently set at £850,000. The Trustees consider reserves at this level will ensure that the Trust will be able to fulfil six months of its financial commitments, including the retention of fulltime staff, while consideration is given to ways in which additional funds may be raised. As the theatre is situated in an extensive office and retail development the Trust has larger charges than ordinarily applicable for similar theatre operations. These costs are not reduced if the Trust is unable to trade.

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

Plans for the future

The focus will be to ensure that there are a minimum number of dark weeks with the theatre fully programmed. The theatre is currently programmed through to 2023 but with an awareness that theatre ticket buying is still vulnerable to further peaks in Covid 19 infection rates and external financial pressures.

As the Restoration Levy funds are rebuilt this will enable the Trust to make further improvements and repairs to the venue including refurbishment of backstage facilities, continuing work to make the venue environmentally sustainable and commence restoration work on the external canopy and entrance.

The Criterion New Writing programme will resume its full calendar of events in 2022/2023 including the resumption of the Autumn season of showcases of our writers’ work.

The Trust will continue to collaborate with existing partners working with young people for example with Eastside Educational’s spoken word programme and will explore further opportunities to engage with the main production in providing related workshops, subsidised ticketing and theatre tours to educational groups. Daytime use of the venue for the development and exploration of new work will continue.

Structure, governance and management

The Criterion Theatre Trust is a company limited by guarantee and a registered charity, governed by its Memorandum and Articles of Association dated 21 October 1992.

Trustees

The Trustees, who are also the directors for the purpose of company law, and who served during the year were:

R Bourne (Resigned 31 December 2021)
A Banes
S Fry
S Greene
S Rosen
Lily Bourne (Appointed 21 February 2022)

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The board has the power to appoint additional trustees at their discretion.

Organisation

The Trust is governed by a Board of Trustees which must have a minimum of three members and a maximum of fifteen. The Trustees meet regularly to manage its affairs. The day-to-day responsibilities for the charity are delegated to the Managing Director, Fiona Callaghan.

Risk management

The Trustees have a risk management strategy which comprises:

Particular attention has focused on non-financial risks arising from fire, health and safety of artists and audience, management of performing rights and hygiene. A key element in the management of financial risk is the setting of a reserves policy and its regular review by Trustees.

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

Trustee induction and training

New Trustees undergo an orientation day to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent financial performance of the charity. During the induction day they meet key employees and other Trustees. Trustees are encouraged to attend appropriate external events where these will facilitate the understanding of their role.

Investment powers

Under the Memorandum and Articles of Association, the charity has the power to make any investment, which they determine is in the best interests of the charity at their absolute discretion.

Related parties

A summary of transactions with related parties is set out in note 22 of the financial statements. Details of the subsidiaries of the charity are detailed in note 23.

Statement of Trustees' responsibilities

The trustees, who are also the directors of The Criterion Theatre Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Going concern

Having reviewed the company's financial forecasts and expected future cash flows, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least the next twelve months. Thus the going concern basis has been adopted in preparing the financial statements for the year ended 31 December 2021.

Auditor

Gerald Edelman LLP were appointed as auditor to the company and a resolution proposing that they be reappointed will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021 The Truslees. report was approved by the Board of Trusle8s and signed on their behalf by.. S Greene Trusteè Dated." 16 S mber 2022

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE CRITERION THEATRE TRUST

Opinion

We have audited the financial statements of The Criterion Theatre Trust (the ‘company’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of 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:

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 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 Trustees' 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 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 trustees 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 trustees 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 CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE CRITERION THEATRE TRUST

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' 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:

Responsibilities of trustees

As explained more fully in the statement of Trustees' responsibilities, the trustees, who are also the directors of the company for the purpose of company law, 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 trustees 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 trustees are responsible for assessing the 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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our audit procedures were primarily directed towards testing the accounting systems in operation upon which we have based our assessment of the financial statements for the year ended 31 December 2020.

We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE CRITERION THEATRE TRUST

The extent to which the audit was considered capable of detecting irregularities including fraud

We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.

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

Audit response to risks identified

Fraud due to management override

To address the risk of fraud through management bias and override of controls, we:

Irregularities and non-compliance with laws and regulations

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but are not limited to:

The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance.

Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors of The Criterion Theatre Trust.

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE CRITERION THEATRE TRUST

Use of our report

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Engin Zekia FCA (Senior Statutory Auditor) for and on behalf of Gerald Edelman LLP

16 September 2022

Chartered Accountants Statutory Auditor

73 Cornhill London EC3V 3QQ

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Restricted
funds
funds
Notes
£
£
Income from:
Income from charitable activities
3
1,464,215
61,984
Investment income
4
1,048
-
Other income
5
422,278
-
Total income
1,887,541
61,984
Expenditure on:
Charitable activities
6
1,839,996
2,375
Net income/(expenditure) for the year
47,545
59,609
Net movement in funds
47,545
59,609
Fund balances at 1 January 2021
1,595,375
7,623
Fund balances at 31 December 2021
1,642,920
67,232		 Total
2021
£
1,526,199
1,048
422,278
1,949,525
1,842,371
107,154
107,154
1,602,998
1,710,152		 Total
2020
£
755,862
5,309
508,376
1,269,547
1,692,146
(422,599)
(422,599)
2,025,597
1,602,998

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET AS AT31 DECEMBER 2021 2021 2020 Notss Fixed assets Tangible assèts Investments 10 11 81,578 1,661 129,283 1.662 83.239 130,945 Currènt assets Stocks Débtors Cash at bank and in hand 13 14 18,452 291,673 2.032.452 10.5e7 147,558 1,611,949 2,342,577 1,770.074 Creditors.. amounts falling due wlthin one year 16 1678,0871 1248,0211 Net current assets I,e64,490 1,522,053 Total a$sèts loss CUTrerit lioblllties 1,747,729 1,652,998 Crèdltors.. amounts falllng due aftèr more than one year 17 137,5771 150.0001 Net assets 1,710,152 1,602,998 Incomè funds Reslricled funds Unreslriel8d fund8 19 67,232 1.642,920 7.623 1,595,375 1,71Q.152 1,602.998 The directors acknowledge their reswn5ibilitiÈs for ensuring thal the chaiity keeps accounting records which comply with section 386 of the Act and for prèparing financial slalements which give a true and fair view ol the state ol affairs of the company as al the $nd ol the financial year and of ils incoming resources and application ol reSoUr￿s. includillg its income and expenditure, for the financial year in 8¢¢ordance with thè requirements ol sections 394 and 395 anil which olherwise ¢omply with thé requirements of Ihp Companies Ael 2006 relating lo rillancial statements so far as applicable lo the cotnpany. The financial sialements were approved by the Board of Truslees and aulho¥ised for issue on 16 September 2022 and signed on their behalf by.. S Grèene Trusts Com any glstration No, 02759117

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
24
Investing activities
Investment income received
Net cash generated from investing
activities
Financing activities
Repayment of bank loans
Net cash (used in)/generated from
financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
£
421,229
1,049
1,049
(1,775)
(1,775)
420,503
1,611,949
2,032,452		 2020
£
£
(889,967)
5,309
5,309
50,000
50,000
(834,658)
2,446,607
1,611,949

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Company information

The Criterion Theatre Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is 73 Cornhill, London, EC3V 3QQ.

1.1 Accounting convention

The financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102"), 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)(Charities SORP (FRS 102 as amended for accounting periods commencing after 1 January 2019)”. The company is a Public Benefit Entity as defined by FRS 102.

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 accounts have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Group Financial Statements

Group financial statements have not been prepared as the subsidiary undertakings are dormant and would be immaterial after consolidation adjustments.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the company 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.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds relate to the restoration levies collected on each ticket sold. The funds will be available for future expenditure on the restoration of the theatre.

1.4 Incoming resources

Income is recognised when the company 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.

Income from charitable activities is accounted for on an accruals basis net of VAT. No permanent endowments or voluntary income and donations have been received in the year, but these are dealt with through the Statement of Financial Activities when received. Income is only deferred when it specifically relates to future accounting periods.

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.5 Resources expended

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure.

Resources expended are included in the Statement of Financial Activities on an accruals basis.

Charitable expenditure includes theatre running costs which are directly attributable to theatre activities. These include costs incurred for the governance of the charity and are primarily associated with constitutional and statutory requirements.

1.6 Tangible fixed assets

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:

Leasehold improvements Over period of the lease Plant and machinery 25% on cost Fixtures, fittings & equipment 10% on cost

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.

1.7 Fixed asset investments

Fixed asset investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in net income/ (expenditure) for the year.

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

1.8 Impairment of fixed assets

At each reporting end date, the company 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).

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ (expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9 Stocks

Stocks are stated at the lower of cost and net realisable value. Cost is computed on a first in first out basis and comprises of food and drink and merchandise available for consumption at the theatre.

Net realisable value is the estimated selling price less costs to be incurred in marketing, selling and distribution.

1.10 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.

1.11 Financial instruments

The company 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 company's balance sheet when the company 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

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 unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.12 Taxation

The charity is exempt from corporation tax on its charitable activities.

1.13 Retirement benefits

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

1.14 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

1.15 Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2 Critical accounting estimates and judgements

In the application of the company’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.

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

3 Income from charitable activities

Private property seats income
Merchandising and catering
Producers contra charges
Hire of theatre
Booking fees and commission receivable
Restoration levies
Analysis by fund
Unrestricted funds - general
Restricted funds		 2021
£
74,694
305,463
874,587
22,147
187,324
61,984
1,526,199
1,464,215
61,984
1,526,199		 2020
£
27,925
133,965
448,737
5,834
109,935
29,466
755,862
726,396
29,466
755,862

All of the above income relates to the theatre company operations.

The entire income arose within the UK (2020: 100%). The entire net assets and resources relate to the theatre operations (2020: 100%).

4 Investment income

Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Interest receivable 1,048 5,309

5 Other income

Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Grants receivable 416,943 508,376
Other income 5,335 -
422,278 508,376

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

6 Charitable activities

Theatre costs
Staff costs
Depreciation and impairment
Operation of theatre
Hires/conferences
Support costs (including governance)
7
Net movement in funds
Net movement in funds is stated after charging/(crediting)
Fees payable to the company's auditor for the audit of the company's financial
statements
Depreciation of owned tangible fixed assets
Operating leases - rent		 2021
£
760,421
47,706
1,014,866
2,375
1,825,368
17,003
1,842,371
2021
£
14,500
47,706
210,000		 2020
£
845,754
47,706
762,490
22,946
1,678,896
13,250
1,692,146
2020
£
13,250
47,706
210,000

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. No expenses were refunded to the trustees in the year.

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

9 Employees

Number of employees

Number of employees
2021 2020
9
4
3
2
8
The average monthly number employees during the year was:
Admin
Box office
Stage
Electronics
Front of House
Employment costs
Wages and salaries
Social security costs
Other pension costs
Number of employees whose annual remuneration was £60,000 or more:		 10
4
2
3
10
29
2021
£
683,775
60,279
16,367
760,421
2021
Number
1
26
2020
£
752,123
72,381
21,250
845,754
2020
Number
1

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

10
Tangible fixed assets
Leasehold
improvements
Plant and
machinery
£
£
Cost
At 1 January 2021
156,358
55,149
At 31 December 2021
156,358
55,149
Depreciation and impairment
At 1 January 2021
156,358
55,149
Depreciation charged in the year
-
-
At 31 December 2021
156,358
55,149
Carrying amount
At 31 December 2021
-
-
At 31 December 2020
-
-
11
Fixed asset investments
Notes
Investments in subsidiaries
23
Unlisted investments
The unlisted investment is in respect of shares in Greene Light Stage plc.
Movements in fixed asset investments
Cost
At 1 January 2021 & 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020		 Fixtures,
fittings &
equipment
£
796,552
796,552
667,270
47,704
714,974
81,578
129,283
2021
£
2
1,659
1,661		 Total
£
1,008,059
1,008,059
878,777
47,704
926,481
81,578
129,283
2020
£
3
1,659
1,662
Shares
£
1,662
1,662
1,662

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

12
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Equity instruments measured at cost less impairment
Carrying amount of financial liabilities
Measured at amortised cost
13
Stocks
Finished goods and goods for resale
14
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
15
Creditors: amounts falling due within one year
Notes
Bank loans
16
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
111,258
1,659
597,553
2021
£
18,452
2021
£
25,501
85,757
180,415
291,673
2021
£
10,648
90,869
42,166
507,162
27,242
678,087		 2020
£
-
1,659
240,045
2020
£
10,567
2020
£
-
-
147,558
147,558
2020
£
-
36,567
5,934
184,111
21,409
248,021

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

16
Loans and overdrafts
Bank loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments
17
Creditors: amounts falling due after more than one year
Notes
Bank loan
16		 2021
£
48,225
10,648
37,577
-
2021
£
37,577		 2020
£
50,000
-
50,000
7,904
2020
£
50,000

18 Share capital

The company has no share capital being a company limited by guarantee. The liability of the members is limited to £1 upon winding up.

19 Restricted funds

The income funds of the charity include restricted funds comprising restoration levies collected via ticket sales at £1.25/ticket sold. The movement in the year was as follow:

Movement in funds Movement in funds
Balance at 1
Income		 **Expenditure ** Balance at 31
January December
2021 2021
£ £ £ £
Restoration levies 7,623 61,984 (2,375) 67,232

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

20 Analysis of net assets between funds

Unrestricted
Restricted
£
£
Fund balances at 31 December 2021 are represented by:
Tangible assets
81,578
-
Investments
1,661
-
Current assets/(liabilities)
1,597,258
67,232
Long term liabilities
(37,577)
-
1,642,920
67,232		 Total
£
81,578
1,661
1,664,490
(37,577)
1,710,152

21 Operating lease commitments

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

Within one year
Between two and five years
In over five years
Related party transactions
Remuneration of key management personnel		 2021
£
210,000
840,000
3,692,500
4,742,500
The remuneration of key management personnel is as follows.
Aggregate compensation
Subsidiaries		 2021
£
87,197
Details of the company's subsidiaries at 31 December 2021 are as follows:
Name of undertaking and country of
Nature of business
incorporation or residency
Criterion Theatre Piccadilly Limited
England
Dormant

22 Related party transactions

23 Subsidiaries

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

23 Subsidiaries

(Continued)

Criterion Theatre Piccadilly Limited has been dormant throughout the current and previous year. The aggregate share capital and reserves of Criterion Theatre Piccadilly Limited amounted to a deficit of £21,464, which was represented by an amount due to The Criterion Theatre Trust. The amount has been previously provided against.

During the year, CRI Piccadilly Ltd was dissolved and ceased to be a subsidiary of the company.

24
Cash generated from operations
Surplus/(deficit) for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Cash generated from/(absorbed by) operations
25
Analysis of changes in net funds
At 1 January
2021
£
Cash at bank and in hand
1,611,949
Loans falling due within one year
-
Loans falling due after more than one year
(50,000)
1,561,949		 2021
2020
£
£
107,154
(422,599)
(1,048)
(5,309)
47,706
47,706
(7,885)
4,225
(144,116)
192,405
419,418
(706,395)
421,229
(889,967)
Cash flows At 31 December
2021
£
£
420,503
2,032,452
(10,648)
(10,648)
12,423
(37,577)
422,278
1,984,227