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2023-12-31-accounts

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

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 2023

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

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

Trustees A Banes
S Fry
S Greene
S Rosen
Lily Bourne
I C Edwards-Jones (Appointed 21 November 2023)
Secretary A Banes
Charity number 1014891
Company number 02759117
Executive officer F Callaghan
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

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

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

Page
Trustees' report 1 - 4
Independent auditor's report 5 - 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12 - 23

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

The Trustees present their annual report and financial statements for the year ended 31 December 2023.

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 Criterion started the year with the final performance of the hugely successful 2:22 A Ghost Story , followed by a programme of comedies and entertainment featuring The Unfriend , Bleak Expectations , The Way Old Friends Do and Unbelievable .

Although the year was characterised by shorter runs than has been historically the pattern for the Trust, we were contracted to productions with 49 performance weeks in the year. The Trust activities continued with a full programme of Criterion New Writing courses and events including 3 showcase performances in October/ November presenting 45-minute excerpts of 6 plays by Criterion New Writing alumni.

Daytime use of the theatre by the Trust for the development of new work continued with open and closed reading sessions, workshops and continued collaboration with the Adopt a Playwright scheme, Eastside Educational and Coram Shakespeare School Foundation.

Improvement works in the building continued as an ongoing programme around busy performance and event schedules.

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

A new paid Front of House Management training scheme commenced in December. Each scheme runs for six months with on-the-job training in addition to funding their qualifications in licensing, first aid and health and safety.

The Trust also started running its Theatre Skills workshops for young people in collaboration with Coram Shakespeare Schools Foundation, giving hands on experience in directing, stage management, lighting and sound design in full day on stage workshops.

Financial review

The statement of financial activities shows net income of £433,487 (2022: £538,004)

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.

We continue to develop sales opportunities through digital marketing and pre-order opportunities via our digital ticketing path.

Reserves policy

The total funds held by the Trust at 31 December 2023 were £2,681,643 (2022: £2,248,156). Of these, the funds not committed or invested in fixed assets ("the free reserves") were £2,474,135 (2022: £2,101,894).

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 2023 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 operate. The trustees recognise that they are holding available funds of circa £1.50M and future planning incorporates how these will be usefully expended in line with the aims and objectives of the charity.

Plans for the future

The Trust continues to make improvements and repairs to our Grade II listed building with a focus on improving our operations in line with environmental sustainability. A planned dark period was scheduled for five weeks at the beginning of 2024 for larger essential maintenance, restoration and staff training.

The Trust will continue to deliver skills workshops for schools on and off site to encourage interest and understanding of opportunities within the industry.

The Front of House Management training scheme will continue with rolling six-month courses and will be expanded into opportunities within box office and technical departments. Collaboration with other venues will be explored to offer formal technical apprenticeship.

The Criterion New Writing programme will continue to develop with more focus on supported development of full length plays and more one on one support for the presentation of the showcase performance in the autumn in addition to collaboration with regional venues.

2024 is the 150th anniversary of the Criterion Theatre which will be marked with a range of Trust activities including offering free tickets to under 21-year-olds to productions at the theatre, free curated talks on the history of the venue and a celebratory gala performance in June.

The Trust will continue to collaborate with partners working with young people for example with Eastside Educational Trust’s spoken work programme and Coram Shakespeare, 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 development and exploration of new work will continue encouraging engagement with new and emerging practitioners.

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

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:

A Banes S Fry S Greene S Rosen Lily Bourne I C Edwards-Jones (Appointed 21 November 2023)

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.

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 23 of the financial statements. Details of the subsidiaries of the charity are detailed in note 24.

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

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 2023 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:

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

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 directors' report included within 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 2023.

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.

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

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.

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

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 charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen Coleman ACA (Senior Statutory Auditor) for and on behalf of Gerald Edelman LLP

Chartered Accountants Statutory Auditor

......................... 01 July, 2024

73 Cornhill London EC3V 3QQ

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

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

FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted
Restricted
funds
funds
Notes
£
£
Income from:
Income from charitable activities
3
3,111,028
143,464
Investment income
4
50,326
-
Other income
5
7,692
-
Total income
3,169,046
143,464
Expenditure on:
Charitable activities
6
2,796,805
82,218
Net income for the year
372,241
61,246
Fund balances at 1 January 2023
2,101,894
146,262
Fund balances at 31 December 2023
2,474,135
207,508		 Total
2023
£
3,254,492
50,326
7,692
3,312,510
2,879,023
433,487
2,248,156
2,681,643		 Total
2022
£
3,266,987
6,613
13,420
3,287,020
2,749,016
538,004
1,710,152
2,248,156

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

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

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

FOR THE YEAR ENDED 31 DECEMBER 2023

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
25
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash generated from investing
activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
£
(222,670)
(34,514)
50,326
15,812
-
-
(206,858)
3,276,089
3,069,231		 2022
£
£
1,290,011
(4,762)
6,613
1,851
(48,225)
(48,225)
1,243,637
2,032,452
3,276,089

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

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, the Charities Act 2011 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 undertaking is 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 trustee 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.

Investment income is included on an accruals basis

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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).

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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 twelve 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.

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors 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.

Key sources of estimation uncertainty

Depreciation, useful life and residual value of tangible fixed assets

The Trustees estimate the useful life of tangible assets in order to calculate the depreciation charge. Changes in this estimate could result in changes being required to the annual charges in the profit and loss account and the carrying value of the asset in the Balance Sheet.

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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		 2023
£
140,957
709,268
1,712,491
54,206
494,106
143,464
3,254,492
3,111,028
143,464
3,254,492		 2022
£
150,447
869,053
1,623,510
37,291
409,728
176,958
3,266,987
3,090,029
176,958
3,266,987

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

The entire income arose within the UK (2022: 100%). The entire net assets and resources relate to the theatre operations (2022: 100%).

4 Income from investments

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Interest receivable 50,326 6,613
Other income
Unrestricted Unrestricted
funds funds
general general
2023 2022
£ £
Grants receivable 7,692 13,373
Other income - 47
7,692 13,420

5 Other income

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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		 2023
£
1,298,166
25,521
1,535,346
1,490
2,860,523
18,500
2,879,023
2023
£
16,500
25,521
210,000		 2022
£
1,143,328
47,566
1,539,076
2,046
2,732,016
17,000
2,749,016
2022
£
16,500
47,567
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.

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

9 Employees

Number of employees

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:		 2023
10
5
3
5
20
43
2023
£
1,162,599
106,838
28,729
1,298,166
2023
Number
1		 2022
10
5
2
4
20
41
2022
£
1,032,488
88,565
22,275
1,143,328
2022
Number
1

10 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

11
Tangible fixed assets
Leasehold
improvements
Fixtures,
fittings &
equipment
£
£
Cost
At 1 January 2023
156,358
615,070
Additions
-
34,514
At 31 December 2023
156,358
649,584
Depreciation and impairment
At 1 January 2023
156,358
576,297
Depreciation charged in the year
-
25,521
At 31 December 2023
156,358
601,818
Carrying amount
At 31 December 2023
-
47,766
At 31 December 2022
-
38,773
12
Fixed asset investments
2023
Notes
£
Investments in subsidiaries
24
2
Unlisted investments
1,659
1,661
The unlisted investment is in respect of shares in Greene Light Stage Plc.		 Total
£
771,428
34,514
805,942
732,655
25,521
758,176
47,766
38,773
2022
£
2
1,659
1,661
Movements in fixed asset investments
Cost
At 1 January 2023 & 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022		 Shares
£
1,661
1,661
1,661

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

13
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
14
Stocks
Finished goods and goods for resale
15
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
16
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
17
Retirement benefit schemes
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes		 2023
£
176,379
1,659
453,501
2023
£
13,436
2023
£
121,021
55,358
175,232
351,611
2023
£
166,293
182,533
270,968
182,268
802,062
2023
£
28,729		 2022
£
185,523
1,659
1,102,082
2022
£
11,710
2022
£
63,065
122,458
122,891
308,414
2022
£
159,347
153,924
948,158
127,062
1,388,491
2022
£
22,275

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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
2023 2023
£ £ £ £
Restoration levies 146,262 143,464 (82,218) 207,508

20 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 January At 1 January Incoming Resources At 31
2023 resources expended December
2023
£ £ £ £
General funds 2,101,894 3,169,046 (2,796,805) 2,474,135
Previous year: At 1 January Incoming Resources At 31
2022 resources expended December
2022
£ £ £ £
General funds 1,642,920 3,110,062 (2,651,088) 2,101,894
Analysis of net assets between funds
Unrestricted Restricted Total
£ £ £
Fund balances at 31 December 2023 are represented by:
Tangible assets 47,766 - 47,766
Investments 1,661 - 1,661
Current assets/(liabilities) 2,424,708 207,508 2,632,216
2,474,135 207,508 2,681,643

21 Analysis of net assets between funds

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

22 Operating lease commitments

Lessee

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		 2023
£
210,000
840,000
3,062,500
4,112,500		 2022
£
210,000
840,000
2,482,500
3,532,500

23 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel was as follows:

2023 2022
£ £
Aggregate compensation 118,560 107,812

24 Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking and country of Nature of business Class of % Held
incorporation or residency shareholding
Criterion Theatre Piccadilly Limited England Dormant Ordinary 100.00

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.

DocuSign Envelope ID: 960D3862-6426-4372-8D76-F955FA06964D

THE CRITERION THEATRE TRUST (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

25
Cash generated from operations
Surplus 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) in debtors
(Decrease)/increase in creditors
Cash (absorbed by)/generated from operations
26
Analysis of changes in net funds
At 1 January
2023
£
Cash at bank and in hand
3,276,089
3,276,089		 2023
2022
£
£
433,487
538,004
(50,326)
(6,613)
25,521
47,567
(1,726)
6,742
(43,197)
(16,742)
(586,429)
721,053
(222,670)
1,290,011
Cash flows At 31 December
2023
£
£
(206,858)
3,069,231
(206,858)
3,069,231