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2021-03-31-accounts

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED

GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR

THE YEAR ENDED MARCH 31 2021

Company number 02825229 Charity number 1022754

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

INDEX
Chair’s foreword 1
Administrative information 2
Trustees’ and Directors’ annual report 3 – 8
Auditors’ report 9 – 11
Group Statement of financial activities 12
Charity statement of financial activities 13
Group balance sheet 14
Charity balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17 – 31

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED CHAIR’S FOREWORD FOR THE YEAR ENDED MARCH 31 2021

When the theatre first opened back in 1894, it remained a constant throughout its various manifestations, right up until 1972. At this point there was a period of closure, and it did not reopen again until 1977, albeit as a bingo hall. It was not until the Friends of the Grand Theatre bought, and reopened it, that it became to be the kind of theatre we now know and love.

Who would ever have believed therefore, that 2020 would become the second major period of closure in our history due to, in this instance, Covid -19. Nor would we have believed that as we closed on March 17, 2020, we would be closed for so long – for the whole of the financial year and through into 2021. But that is the reality, in common with the majority of theatres and artistic venues throughout Britain.

Regretfully we had to reduce the size of our team, I have however, been amazed and proud of this reduced theatre team, under the guidance and leadership of our very capable Chief Executive Ruth Eastwood, as they responded to the crisis by creating an online digital platform, screening both performances and workshops for all, and maintaining our creative learning programme , a key element of our work in the community.

As we work now to reopen the theatre in a Covid safe way I would like to thank my fellow trustees for their support and good counsel; the staff and management team who have been a constant even on reduced hours; and all those who have held faith with us and continue to do so as we gradually open up.

We thank especially Arts Council England for Cultural Recovery Funds, the government for its Furlough Scheme, Blackpool Council and other funders that have helped us through this difficult time.

We need everyone’s support more than ever as we rebuild our audiences and theatre communities and look forward to reopening in 2021.

Anthony P Stone LALAM – Chair

1

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED MARCH 31 2021

DIRECTORS & TRUSTEES A P Stone (Chair)
A Depledge (Vice Chair)
P Akroyd
S C Bonser
L Campbell
S Crocker
G B Mascord
D W Parry (resigned 23/11/2020)
A Royle
S M K Walker
P Welsh
SENIOR MANAGEMENT TEAM Ruth Eastwood Chief Executive
Mark Preston Finance & Business Manager
Colin Johnston Venue Development Manager
Andrew Howard Marketing Manager
Celine Wyatt Creative Learning Manager
REGISTERED OFFICE AND The Grand Theatre
PRINCIPAL PLACE OF BUSINESS 33 Church Street
Blackpool
Lancashire
FY1 1HT
AUDITORS AND ACCOUNTANTS HGA Accountants & Financial Consultants
t/a Chittenden Horley
Chartered Accountants & Registered Auditors
456 Chester Road
Old Trafford
Manchester m16 9HD
BANKERS Charities Aid Foundation CAF Bank
National Westminster Bank plc

2

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021

The trustees present their annual report together with the financial statements of the group and the charity for the year ended March 31 2021, which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

REPORTING FRAMEWORK

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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 (FRS102) (effective 1 January 2019), referred to as the Charities SORP (FRS 102) (second edition – October 2019).

OBJECTIVES AND ACTIVITIES

Chartable objects

The charitable objectives are:

Activities

The Grand Theatre (A&E) Ltd fulfilled its charitable purposes to promote, maintain, improve, assist and advance public education, appreciation and understanding of the arts in the following ways:

Public Benefit

The Grand Theatre continues to create public benefit by offering artistic, educational and heritage opportunities to enjoy, participate and learn through a virtual theatre platform. It is our mission to inspire a life-long love of the theatre.

Working in partnership is central to our success in creating public benefit. We work in partnership with schools, social justice specialists, the care system, local authorities and private businesses to ensure we reach as wide a public as possible with our offer, This also enables us to help other organisations, which share our values, to achieve their planned outcomes by sharing our skills and methods to become more effective together.

With an all-year-round programme, in ‘normal’ years The Grand contributes to the economic life of Blackpool, particularly the nighttime economy, and our economic impact, calculated using the Shellard Formula, is £8m a year. Because of Covid-19 we have had to adapt our way of working, using more digital and social outlets to reach existing and new audiences and to continue to create public benefit.

3

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021

ACHIEVEMENTS AND PERFORMANCE

Looking back over the year there was nothing that made it anything like normal business because of Covid – 19. As long as we were unable to trade, our cash flow moved us close to collapse making us unable to transition to business viability and sustainability from 1 July without additional support. Prior to the pandemic, we regularly turned over £3million, earned 91% through ticket sales, had healthy reserves and numerous commissions to provide creative learning services both locally and nationally. Covid-19 triggered a year of intense learning, creativity and innovation, coupled with devastating cuts to protect the Theatre and prepare it to return to viable trading as soon as possible. 19 people out of with just 15 staff keeping the operation going.

The Theatre was successful in obtaining funds from the Arts Council England - Cultural Recovery Fund Round 1. Through this grant, we were able to cut our overheads, put the building to sleep, while maintaining its fabric and the business itself. In this way we were able to keep customers engaged, shows on sale - having moved some of them 4 times due to uncertainties of reopeningand in this way, we maintained as much income as possible in our bank, minimising the need to refund.

We found new and different ways of fulfilling our mission to ‘inspire a life-long love of theatre’ by moving into production online and streaming our services.

Lifting spirits and promoting well-being has been a key element to get us through lock-down and so we developed #athomewithyou, a digital platform for filmed content, with online masterclasses, creative activities and artistic presentations to keep our audiences and supporters engaged. The usage data evidenced an appetite for online engagement with the theatre from a wide-ranging demographic, reaching far beyond our normal catchment. Our online presence delivered 59 workshops, classes and events and with 13 aimed at children in particular, reaching 7,326 participants and helping us to meet our existing funding obligations.

As the health context changed, we adapted the venue and prepared for socially-distanced, covid-secure re-opening for Christmas 2020. We experienced pent up demand for live performance when we put our planned Christmas pantomime on sale. This was a calculated risk yet, by November, we were looking forward to a potential surplus of £150,000. However, this abruptly stopped as the second Covid -19 spike hit and again closed the theatre, forcing us to issue refunds. Then, speedily we adapted Pantomonium! for online sale, we sold more than 1700 family tickets earning £38,000. It has been seen by approximately 5,000 people from all around the world. The skills we developed in converting this show to film and digital distribution can now support ongoing, incomegenerating streaming opportunities to complement live performance.

We negotiated new, flexible working contracts and pay reductions for the remaining team and invested in cross-skilling to create a one-team approach, where we all able to turn our hands to anything the business requires.

Towards the end of the year, we received the news that we had been successful in gaining a second Cultural Recovery Fund grant from Round 2. It is with the aid of these vital funds that we began to prepare for relaunch in September 2021.

4

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021

FINANCIAL REVIEW

Overview

The group had a surplus on unrestricted general funds, after transfers, for the year of £204,058 (Charity £204,058) compared with a deficit in the previous year of £70,901 (Charity £70,877). This is in part due to the additional funding secured during the year to meet the challenges of the pandemic, along with a successful insurance claim for business interruption and the prompt actions taken to control and reduce costs. We have benefitted from HMRC job retention scheme (c£388,000), as well as ACE emergency funding (c£193,000), Esmeé Fairbairn support (c£33,000), and the Cultural Recovery Fund Round 1 (CRF).

Of the CRF1 monies awarded of £483,666k, £157,000 remained unspent at the year end and formed part of the closing restricted funds. We allocated this as £122,000 for equipment, £25,000 for marketing and £10,000 for audience development. All of which is expenditure to enable a successful relaunch and reopening of the theatre in 2021. At the date of approving these accounts all the monies have been spent.

Trading subsidiaries

The Charity has three wholly owned subsidiaries: Blackpool Grand Theatre Catering Company Ltd (Catering), Showseats Ltd. and Grand Theatre Productions Ltd (BGP). Showseats Ltd continued to be dormant as well as Blackpool Grand Productions Ltd which was formed to as a production company for in house productions. It did not produce any plays in 20/21 (19/20 one play).

Although Catering was unable to trade during the year it benefitted from the successful insurance claim for business interruption and made a pre-tax profit of £13,685 (2020 - £33,324) which it has Gift Aided to the charity, under a deed of covenant.

Risk management

The Trustees maintain and review the charity’s risk register regularly. The risk management strategy comprises:

The primary risk the trustees are currently addressing is the re-positioning of the charity’s business in the local marketplace, reflecting the change in the theatre landscape.

Principal funding sources

The Grand Theatre has two, principal, funders: Arts Council England through the National Portfolio, emergency funding and CRF1 funding; and Blackpool Council through a Service Level Agreement.

Investment policy and review

The trustees, having regard to the liquidity requirements of the charity and its reserves policy, have operated a policy of keeping available funds in an interest-bearing deposit account and seek to achieve a rate on deposit which matches or exceeds inflation as measured by the retail prices index.

Reserves

Free reserves

Reserves are needed to bridge the gap between spending and receiving of resources; to sustain the charity over the next twelve months, and to cover emergency repairs and other expenditure. The trustees consider that the ideal level of free reserves (unrestricted funds not invested in fixed assets or otherwise designated) at the year-end would be between £200,000 and £300,000, equivalent to three months running costs, including relaunch costs.

Free reserves at the year-end were £370,019. We expect that given the ongoing challenges caused by the pandemic that we will have to call on the reserves in the next two years to meet operating income shortfalls and thus the free reserves will reduce to the target level.

Designated funds

The trustees have established the following designated funds:

Programme reserve This was originally to provide support for innovative and exceptional productions, which may not otherwise be financially viable, but now represents the commitment needed from the reserves for programming in 21/22 and beyond with a target of £20,000 being added when funds permit.

Learning Fund To support future development in education in the arts in schools and the local community. In 2016/17 the Trustees allocated the fees from workshops to this fund.

Advertising Fund To support future online advertising programmes. The Trustees have decided to allocate the income from online banner advertising to this fund.

5

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021

Going concern

Having reviewed these financial statements the board are comfortable that they are correctly prepared under the going concern basis for the following reasons.

Strong Reserves

The charity has a healthy unrestricted reserve balance (helped by the Cultural Recovery fund) as well as restricted and designated funds to be utilised over the next few years by the creative learning department continuing the Charitiy’s work with local schools and other local groups.

Return to operations

The theatre opened to patrons again at the beginning of September 2021 after a relaunch which involved brochures being sent to all households in the local area, a media and a poster campaign and other measures.

The campaign was received well, and virtually all the productions since reopening have exceeded the targets that had been set as well as secondary spend (programmes, bar etc) being at a good level.

Forecasts

The Senior Management Team (SMT) have produced forecasts to the end of March 2023 showing that the charity is still in a positive reserves position both under normal expectations as well as under less favourable conditions.

The board have been reassured by these forecasts as well as the resilience the SMT has shown since the pandemic hit and the charities flexible “one team” approach.

The forecasts naturally make a number of assumptions the main ones being that the Theatre will be able to open and that Arts Council funding will continue.

The board consider that both of these are appropriate assumptions ( indeed the current Arts Council funding has been extended until March 2023 and the charity is in positive discussions about funding after this).

A more pessimistic forecast showed a considerable reduction in ticket income which the forecast has shown the charity can withstand following some minor corrective action.

Market generally

Theatres in general are reporting good attendances since reopening as well as good levels of secondary spend. The forecasts were based on a reasonable assumption which if these levels continue will see the forecasts exceeded.

In the general economy there are obviously a number of strong headwinds that could have a negative effect on the financial viability of the Theatre and this has been considered by the board and they are comfortable that the revised lower forecast shows a reasonable estimation of the effect of these headwinds and that the outcome under this basis is showing a good reserves position. Both the SMT and the Board regularly review both the outcome of the current and future productions as well as the financial forecasts. Should any corrective action be needed the board have confidence that this will be taken

Conclusion

After considering the above points the Board consider that it is appropriate to prepare the accounts under the going concern basis.

FUTURE PLANS

We relaunched in September 2021.

There are several projects in train for the improvement of the building and how it works in relation to Covid – 19. These include improving ventilation of the auditorium; better box office facilities in a nearby shop will again afford improved circulation for customers and staff. An IT review has taken place and we will be better connected for both theatre and homeworking. Covid risk assessments have been done and improved working practices, including hand sanitisers potential and one- way systems have been devised. All steps have been taken with a view to improve the customer journey, experience, and safety.

We are all looking forward to welcoming people back to the theatre after such a long time away. After the ghastly time everyone has endured this is the time for feeling positive about the future. Our programme is already boasting over 50 new productions and we will be bringing back our successful home grown Around the World in 80s Days which was so well received first time round and we are thrilled too to stage our family Panto Snow White and the Seven Dwarfs later in the year.

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BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021

STRUCTURE GOVERNANCE AND MANAGEMENT

Governing document

The charity is a company limited by guarantee governed by its memorandum and articles of association dated June 8, 1993, as amended by special resolutions dated February 18, 2016. It is a registered charity with the Charity Commission.

Members of the company

The maximum number of members is currently set at forty, but the Board may from time to time register an increase or decrease in the number. There are four classes of member in addition to a President or Vice President (if appointed):

Appointment of trustees/directors

Nominated trustees/directors

Blackpool Council has the right to nominate two trustees. The Friends of the Grand have the right to nominate one trustee. The other trustee Directors are appointed through open advertisement.

Appointed trustees/directors

Up to 15 persons appointed through a scheme of recruitment established by the Board, through an appointments panel consisting of the Chair and two other persons independent of the Board.

Co-opted trustees/directors

The Board may co-opt up to two persons to serve as directors/trustees for a period not exceeding four years, and they may renew the appointment for a further period not exceeding four years.

A nominating body has the power to appoint a deputy, but appointed and co-opted trustees/directors cannot appoint an alternate to act on their behalf.

Trustee induction and training

New trustees undergo an orientation day to brief them on their legal obligations under charity and company law, the Charity Commission guidance on public benefit, the content of the Memorandum and Articles of Association, the committee and decisionmaking process, the business plan and recent financial performance of the charity. During the induction day, they meet key staff and other trustees.

Trustees are encouraged to attend appropriate external training events where these will facilitate the understanding of their role. All trustees will have the opportunity to attend an external “refresher” on an annual basis.

Organisation

The Board administers the charity and meets every two months. The Board delegates the day to day management of the charity, to the Chief Executive, Ruth Eastwood, and the other members of the senior management team as set out on page 2. The extent of the delegated authority has been formally agreed by the Board.

The Board has established a finance sub-committee to carry out financial monitoring, and it reports to the full Board.

Co-operation with other organisations/charities

In accordance with its objectives, the charity works closely with Blackpool Grand Theatre Trust Ltd (the Trust) the charity from which it rents the theatre under a formal lease. The charity also provides management services to the Trust at cost.

Pay and remuneration for senior staff

The pay levels of the senior staff are recommended to the Board by the Finance Sub-Committee. These are set through a benchmarking process that looks at similar, industry-specific roles in regional theatre, additionally taking into account general salary levels in the Blackpool area. Salaries are reviewed annually and, unless circumstances prevent it, an inflationary rise may be applied in line with RPI. Any other increases to senior salaries will only be considered in the light of additional or special responsibilities added to their current roles.

Related parties

None of the trustees receives any remuneration or other benefits for their services. The Board requires any Trustee or senior manager to declare any interests in contracts etc., and, any relationships with production companies, contracted actors, performers or exhibitors.

Details of transactions with the Trust and Catering are given in the notes to the accounts.

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BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The trustees (who are also directors of Blackpool Grand Theatre (Arts & Entertainments) Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, 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 charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT OF DISCLOSURE TO AUDITORS

We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:

SMALL COMPANY PROVISIONS AND APPROVAL

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Approved by the Board of Trustees and signed on its behalf by:

A P Stone

A P Stone – Director

Date: 18/11/21

8

INDEPENDENT AUDITORS REPORT TO THE MEMBERS AMD TRUSTEES OF BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED FOR THE YEAR ENDED MARCH 31 2021

Opinion

We have audited the financial statements of Blackpool Grand Thaetre (Arts & Entertainments) Ltd (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended March 31 2021 which comprise the Group and parent Charity Statements of Financial Activities, The Group and Parent Charity Balance Sheets and the group and Parent Charity Statement of cash flows, and notes to the financial statements, including 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 group and parent charitable 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 group’s or parent charitable 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 trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the [strategic report and the][7] directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

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INDEPENDENT AUDITORS REPORT TO THE MEMBERS AMD TRUSTEES OF BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED FOR THE YEAR ENDED MARCH 31 2021

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, set out in the Directors’ and Trustees’ Annual Report, the trustees (who are also the directors of the parent charitable company for the purposes 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 groups and parent charitable 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 group or parent 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

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below. Our approach to identifying and assessing the risks in respect of irregularities and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statement to material misstatement, including obtaining an understanding of how fraud might occur, by:

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

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

No instances of material non-compliance were identified.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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INDEPENDENT AUDITORS REPORT

TO THE MEMBERS AMD TRUSTEES OF BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED FOR THE YEAR ENDED MARCH 31 2021

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

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 and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and its trustees 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 and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Smith

Peter Smith BA FCA DChA – Senior Statutory Auditor

For and on behalf of: HGA Accountants & Financial Consultants t/a Chittenden Horley Chartered Accountants and Statutory Auditors 456 Chester Road Old Trafford Manchester M16 9HD Date: 19/11/21

HGA Accountants & Financial Consultants Ltd t/a Chittenden Horley is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED GROUP STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED MARCH 31 2021

Notes
INCOME
Incoming resources from generated funds:
Donations
2
Charitable activities
3
Other trading activities
4
Investment income - bank interest
Other income - insurance claim
TOTAL INCOMING RESOURCES
EXPENDITURE
Costs of raising funds
6
Expenditure on charitable activities
7
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
BEFORE TRANSFERS
10
Transfers between funds
16
NET INCOME/(EXPENDITURE
Theatre Tax Credit
5
NET INCOME/(EXPENDITURE)
AFTER TAXATION - NET MOVEMENT IN FUNDS
TOTAL FUNDS:
BROUGHT FORWARD
16
CARRIED FORWARD
16		 General
Designated
Funds
Funds
£
£
870,875
-
222,293
10,000
12,085
-
2,763
-
85,162
-
Unrestricted		 General
Designated
Funds
Funds
£
£
870,875
-
222,293
10,000
12,085
-
2,763
-
85,162
-
Unrestricted		 Restricted
Funds
£
488,966
54,100
-
-
-		 Total
Total
2021
2020
£
£
1,359,841
273,715
286,393
2,671,547
12,085
258,232
2,763
8,427
85,162
-
1,193,178 10,000 543,066 1,746,244
3,211,921
66,467
919,874		 -
5,750		 -
377,670		 66,467
213,626
1,303,294
2,908,073
986,341 5,750 377,670 1,369,761
3,121,699
206,837
(2,779)		 4,250
(4,088)		 165,396
6,867		 376,483
90,222
-
-
204,058
-		 162
-		 172,263
-		 376,483
90,222
-
12,032
204,058
166,249		 162
118,625		 172,263
214,034		 376,483
102,254
498,908
396,654
370,307 118,787 386,297 875,391
498,908

The notes on pages 17 to 31 form part of these financial statements.

12

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED CHARITY STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED MARCH 31 2021

Notes
Incoming resources from generated funds:
Donations
2
Charitable activities
3
Other trading activities
4
Investment income - bank interest
Other income - insurance claim
TOTAL INCOME
EXPENDITURE
Costs of raising funds
6
Expenditure on charitable activities
7
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
BEFORE TRANSFERS
Transfers between funds
16
NET MOVEMENT IN FUNDS
TOTAL FUNDS:
BROUGHT FORWARD
16
CARRIED FORWARD
16		 General
Designated
Funds
Funds
£
£
884,561
-
222,293
10,000
19,698
-
2,743
-
34,412
-
Unrestricted		 General
Designated
Funds
Funds
£
£
884,561
-
222,293
10,000
19,698
-
2,743
-
34,412
-
Unrestricted		 Restricted
Funds
£
488,966
54,100
-
-
-		 Total
Total
2021
2020
£
£
1,373,527
307,139
286,393
2,907,923
19,698
55,047
2,743
8,308
34,412
-
1,163,707 10,000 543,066 1,716,773
3,278,417
36,996
919,874		 -
5,750		 -
377,670		 36,996
43,732
1,303,294
3,132,417
956,870 5,750 377,670 1,340,290
3,176,149
206,837
(2,779)		 4,250
(4,088)		 165,396
6,867		 376,483
102,268
-
-
204,058
166,818		 162
118,625		 172,263
214,034		 376,483
102,268
499,477
397,209
370,876 118,787 386,297 875,960
499,477

The notes on pages 17 to 31 form part of these financial statements.

13

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED GROUP BALANCE SHEET AS AT MARCH 31 2021

Notes
FIXED ASSETS
Tangible Assets
11
CURRENT ASSETS
Stock
13
Debtors
14
Cash at Bank and in Hand
CREDITORS
Amounts falling due in one year
15
NET CURRENT ASSETS
TOTAL NET ASSETS		 2021
£
1,610
268,757
1,188,207		 2021
2020
2020
£
£
£
656
1,313
656
1,313
7,466
349,014
1,077,063
1,433,543
935,948
874,735
497,595
875,391
498,908
1,458,574
583,839

FUNDS

Unrestricted charitable funds
General fund
16
Designated fund
16
Restricted charitable funds
16
Total charitable funds
Non charitable trading subsidiaries
16
TOTAL FUNDS		 370,876
118,787		 166,818
118,625
489,663
285,443
386,297
214,034
875,960
499,477
(569)
(569)
875,391
498,908

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

The notes on pages 17 to 31 form part of these financial statements.

Approved by the Board of Directors and authorised for issue on: 18/11/21

A P Stone

A P STONE - DIRECTOR

Company registration number: 02825229

14

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED CHARITY BALANCE SHEET AS AT MARCH 31 2021

Notes
FIXED ASSETS
Tangible Assets
11
Investments
12
CURRENT ASSETS
Stock
13
Debtors
14
Cash at Bank and in Hand
CREDITORS
Amounts falling due in one year
15
NET CURRENT ASSETS
TOTAL NET ASSETS
FUNDS
Unrestricted
General fund
16
Designated funds
16
Restricted
16
TOTAL FUNDS		 2021
£
1,250
280,238
1,160,516		 2021
2020
£
£
656
201
857
1,250
451,020
973,081
1,425,351
927,388
875,103
875,960
166,818
118,625
489,663
386,297

875,960		 2020
£
1,313
201
1,514
497,963
1,442,004
566,901
370,876
118,787
499,477
285,443
214,034
499,477
-

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

The notes on pages 17 to 31 form part of these financial statements.

Approved by the Board of Directors and authorised for issue on: 19/11/21

A P Stone

A P STONE - DIRECTOR

Company registration number: 02825229

15

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED GROUP AND CHARITY STATEMENTS OF CASH FLOWS AS AT MARCH 31 2021

notes
Cash used in operating activities
18
Cashflows from investing activities
Interest and dividends
Purchase of tangible fixed assets
Proceeds of sale of fixed assets
Payments to acquire investments
Cash provided by/(used in) investing activities
Cashflows from financing activities
Investment in shares adjustment
Cash from financing activities
Increase/(decrease) in cash & cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Cash and cash equivalents consist of:
Cash at bank and in hand
Current asset investments		 Group
2021
£
108,381		 Group
2020
£
(67,040)		 Charity
Charity
2021
2020
£
£
184,692
(108,305)
2,763
-
-
-		 8,427
(1,970)
-
-		 2,743
8,308
-
(1,970)
-
-
-
-
2,763 6,457 2,743
6,338
- 1 -
-
- 1 -
-
111,144
1,077,063		 (60,582)
1,137,645		 187,435
(101,967)
973,081
1,075,048
1,188,207 1,077,063 1,160,516
973,081
1,188,207 1,077,063 1,160,516
973,081
-
1,188,207 1,077,063 1,160,516
973,081

The notes on pages 17 to 31 form part of these financial statements.

16

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

1 ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared: under the historic cost convention; in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) effective January 1 2019 (second edition – October 2019); FRS102; and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS102.

The accounts are prepared in £ sterling, which is the functional currency.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Going Concern

The trustees have set out their review of going concern in their trustees’ report and have concluded that the accounts are properly prepared on the going concern basis.

Income recognition

All income is recognised once the charity has an entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The following applies to particular types of income:

Grants , whether of a capital or revenue nature, are recognised when the charity has an entitlement to the funds, any performance conditions have been met, and it is probable that the income will be received.

Donations from individuals and other bodies (not being of the nature of a grant) are recognised when receivable.

Legacies are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the case of gifts that are neither cash nor financial assets tradable on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.

Earned income is measured at the fair value of the consideration received or receivable for services and goods supplied, net of discounts and VAT.

Investment income Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Deferred income

Income is only deferred and included in creditors when:

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds

including those associated with fundraising activities, managing investments and commercial trading by the subsidiary company.

Charitable activities costs of undertaking the work of the charity.

The charity is registered for VAT and is able to recover some of the input tax charged as it relates to VATable supplies. Costs are initially recorded gross of VAT, and the recoverable amount is retrospectively apportioned across the expenditure categories

Allocation of support costs

Support costs are those functions which assist the work of the charity either by supporting the delivery of charitable activities or by supporting the generation of funds. They include salaries, marketing cost, establishment costs, office costs, staff training and recruitment, finance charge, accountancy, audit and professional costs and depreciation.

The basis of allocations is set out in note 8.

17

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

1 ACCOUNTING POLICIES (continued)

Tangible fixed assets

Individual fixed assets costing more than £1,000 (previously - £500) are capitalised at cost and are depreciated over their estimated useful lives on a straight-line basis as set out below.

Depreciation rates

All assets are depreciated on a straight-line basis at the following rates:

Furniture and equipment

20% straight line

Investments

Investments in subsidiaries are valued at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

Debtors

Trade and other debtors are recognised at the settlement amount due, and prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

Financial instruments

The charity has only basic financial instruments which are initially recorded at cost, and with the exception of investments (as set out above) subsequently measured at their settlement value.

Group financial statements

The financial statements consolidate the results of the charity and its wholly owned subsidiaries, Blackpool Grand Theatre Catering Company Limited, Blackpool Grand Theatre Productions Ltd and Showseats Ltd, on a line by line basis and inter group balances are eliminated on consolidation.

18

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

2 DONATIONS
Revenue grants: & other funding
Arts Council England
ACE emergency funding
ACE Cultural Recovery Fund (round 1)
Esmée Fairbairn Foundation
Grant CJRS
DWP worker support
Donations & legacies
General donations
Donations for Creative Learning
Friends of the Grand
Total for group
Donation from BGT Catering Co.
Total for company		 Unrestricted 2021
Restricted		 Total Unrestricted 2020
Restricted
Total
£
213,856
193,000
-
33,300
387,891
-		 £
-
-
483,666
-
-
-		 £
213,856
193,000
483,666
33,300
387,891
-		 £
209,992
-
-
22,909
7,623		 £
£
-
209,992
-
-
-
-
-
22,909
-
7,623
828,047 483,666 1,311,713 240,524 -
240,524
42,828
-
-		 -
-
5,300		 42,828
-
5,300		 24,291
-
-		 -
24,291
-
-
8,900
8,900
42,828 5,300 48,128 24,291 8,900
33,191
870,875
13,686		 488,966
-		 1,359,841
13,686		 264,815

33,424		 8,900
273,715
-
33,424
884,561
 488,966 1,373,527 298,239 8,900
307,139

19

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

2021
Unrestricted
Restricted
Total
£
£
£
3 INCOME FROM CHARITABLE ACTIVITIES
Group
Theatre and performance
167,932
-
167,932
Creative Learning
8,142
54,100
62,242
Management charges from BGT Trust
56,219
-
56,219
Less Income in A&E from BGP
-
-
-
Total per Group
232,293
54,100
286,393
Charity
Theatre and performance
Box office & commission income
42,110
-
42,110
SLA Blackpool Borough Council
124,178
-
124,178
Production income
-
-
-
Theatre/studio hire
-
-
-
Other income
1,644
-
1,644
Ancillary trading
-
-
-
167,932
-
167,932
Creative Learning
SLA Blackpool Borough Council
-
-
-
Fees & earned income
8,142
-
8,142
Grants:
Esmée Fairbairn Foundation
-
-
-
The Goldsmiths' Company
-
34,960
34,960
The Ragdoll Foundation
-
20,000
20,000
Community Foundation
-
5,000
5,000
Blackpool BC - Betterstart
-
(11,605)
(11,605)
University of Central Lancashire
-
-
-
Peter Jackson Charitable Trust
-
2,400
2,400
Royal Shakespeare Company
-
3,345
3,345
Vera Wolstencroft Trust
-
-
-
8,142
54,100
62,242
Blackpool Grand Theatre Trust Ltd
Management charge
56,219
-
56,219
Total per Charity
232,293
54,100
286,393
Unrestricted income attributable to designated funds:
Designated fund
Recharges to Producers - advertising income
Advertising fund		 Unrestricted 2021
Restricted		 Total Unrestricted 2020
Restricted
Total
£
-
54,100
-
-		 £
167,932
62,242
56,219
-		 £
2,524,705
64,166
77,806
(236,376)		 £
£
-
2,524,705
241,246
305,412
-
77,806
(236,376)
232,293 54,100 286,393 2,430,301 241,246
2,671,547
42,110
124,178
-
-
1,644
-		 -
-
-
-
-
-		 42,110
124,178
-
-
1,644
-		 2,194,986
64,000
236,376
20,770
4,469
4,104		 -
2,194,986
-
64,000
-
236,376
-
20,770
-
4,469
-
4,104
167,932 - 167,932 2,524,705 -
2,524,705
-
8,142
-
-
-
-
-
-
-
-
-		 -
-
-
34,960
20,000
5,000
(11,605)
-
2,400
3,345
-		 -
8,142
-
34,960
20,000
5,000
(11,605)
-
2,400
3,345
-		 -
64,166
-
-
-
-
-
-
-
-
-		 -
-
-
64,166
199,800
199,800
-
-
-
-
-
-
13,446
13,446
5,000
5,000
3,000
3,000
15,000
15,000
5,000
5,000
8,142 54,100 62,242 64,166 241,246
305,412
56,219 - 56,219 77,806 -
77,806
232,293 54,100 286,393 2,666,677 241,246
2,907,923
2021
£
10,000		 2020
£
13,750
13,750
10,000

20

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

Unrestricted
£
4 INCOME FROM OTHER TRADING ACTIVITIES
Sponsorship
12,000
Management charges
7,613
Room hire
-
Merchandise
85
Per charity
19,698
Less eliminated on consolidation:
Management charge to Catering Ltd
(7,613)
Room hire charges to Catering Ltd
-
Add Subsidiarity income Catering Ltd
-
Per group
12,085
5 TRADING SUBSIDIARIES
Catering
2021
Profit and loss account
£
Turnover
-
Cost of sales
5,964
Gross profit
(5,964)
Administration Expenses
31,120
Operating profit/loss
(37,084)
Other income
50,750
Interest receivable
20
Net profit/loss before taxation
13,686
Theatre Tax Credit
-
Net profit after taxation
13,686
Summary change in equity
Reserves b/f
655
Profit for the year
13,686
Donation under gift aid to A&E
(13,686)
Reserves c/f
655
Summary balance sheet
Total assets
54,705
Total liabilities (excluding capital grant)
(53,950)
Net funds
755		 Unrestricted 2021
Restricted		 Total Unrestricted 2020
Restricted
Total
£
-
-
-
-		 £
12,000
7,613
-
85		 £
12,000
36,107
5,141
1,799		 £
£
-
12,000
-
36,107
-
5,141
1,799
19,698
(7,613)
-
-		 -
-
-
-		 19,698
(7,613)
-
-		 55,047
(36,107)
(1,425)
240,717		 -
55,047
-
(36,107)
-
(1,425)
-
240,717
12,085 - 12,085 258,232 -
258,232
Catering
2021
£
-
5,964		 Company
2020
£
240,717
145,848		 Grand Productions
2021
2020
£
£
-
226,608
-
236,376		 Showseats Ltd
2021
2020
£
£
-
-
-
-
(5,964)
31,120		 94,869
61,565		 -
-		 (9,768)
2,264		 -
-
-
13
(37,084)
50,750
20		 33,304
-
119		 -
-		 (12,032)
-		 -
(13)
-
-
13,686
-		 33,423
-		 -
-		 (12,032)
12,032		 -
(13)
-
-
13,686 33,423 - - -
(13)
655
13,686
(13,686)		 655
33,423
(33,423)		 -
-
-		 -
-
-		 (1,123)
(1,110)
-
(13)
-
-
655 655 - - (1,123)
(1,123)
54,705
(53,950)		 113,314
(112,559)		 12,032
(12,031)		 -
-
(1,123)
(1,123)
755 755 - 1 (1,123)
(1,123)

Blackpool Grand Theatre Catering Company ltd

The subsidiary operates the bar and catering services within the theatre. On consolidation the management charge of £7,613 (2020 - £37,9392) is eliminated, and charges for room hire from A&E of nil (2020 - 1,425) are also, both against A&E income.

Blackpool Grand Productions Ltd (BGP)

In February 2019, the charity formed Blackpool Grand Productions Ltd as a vehicle for in house productions, and is eligible to claim theatre tax relief. Its first accounts covered the period 8/2/19 to 31/03/20. There were no productions in 20/21.

BGP's income derives from charity. On consolidation income from the charity of £226,608 was eliminated against theatre production costs and the direct costs of £236,376 were eliminated against production subcontractor fees in the charity, in the 20/21 accounts.

Showseats Ltd

This company has not traded in the last two years.

21

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

6 COSTS OF RAISING FUNDS
Direct costs
Direct salaries
Support costs
Per charity
Costs re Blackpool Grand Theatre Catering Company
Costs re Showseats Ltd
Less management charge
Less room hire charges
Total fundraising in Group		 2021
2020
£
£
-
4,194
13,227
13,298
23,769
26,240
36,996
43,732
37,084
207,413
-
13
(7,613)
(36,107)
-
(1,425)
66,467
213,626

All costs in both years are charged to unrestricted funds, and there are no allocations to designated funds.

7 CHARITABLE EXPENDITURE
Theatre and performance
Creative Learning
Supporting the BGT Trust
per Charity
Less subcon costs from BGP
BGP support costs
Per Group		 Unrestricted 2021
Restricted		 Total Unrestricted 2020
Restricted
Total
£
782,121
95,547
47,956		 £
331,966
45,704
-		 £
1,114,087
141,251
47,956		 £
2,815,252
152,267
75,682		 £
£
8,900
2,824,152
80,316
232,583
-
75,682
925,624
-
-		 377,670
-
-		 1,303,294
-
-		 3,043,201
(226,608)
2,264		 89,216
3,132,417
-
(226,608)
-
2,264
925,624 377,670 1,303,294 2,818,857 89,216
2,908,073

Included in unrestricted costs above are amounts charged to designated funds as follows:

Charged to Creative Learning Fund
Charged to advertising fund		 2021
2020
£
£
-
25,879
5,750
9,000
5,750
34,879

Expenditure in the charity is analysed as follows:

Expenditure in the charity is analysed as follows:
2020/21
Theatre and performance
Creative learning
Supporting the Blackpool Grand Theatre Trust
2019/20
Theatre and performance
Creative learning
Supporting the Blackpool Grand Theatre Trust		 Direct
costs
£
63,323
26,333
-		 Direct
salaries
£
554,922
79,162
47,571		 Support
costs
Total
£
£
495,842
1,114,087
35,756
141,251
385
47,956
89,656 681,655 531,983
1,303,294
1,443,706
109,505
-		 457,824
59,073
75,294		 922,622
2,824,152
64,005
232,583
388
75,682
1,553,211 592,191 987,015
3,132,417

22

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

8 SUPPORT & GOVERNANCE COSTS

SUPPORT & GOVERNANCE COSTS
2020/21
Salaries
Marketing costs
Establishment costs
Cleaners wages
Office costs
Staff training and recruitment
Finance charges
Accountancy & professional fees
Depreciation
Allocation of marketing support costs
Governance costs
Salaries
Audit, accountancy & professional fees
2019/20
Support costs
Support salaries costs
Marketing costs
Establishment costs
Cleaners wages
Office costs
Staff training and recruitment
Finance charges
Accountancy & professional fees
Depreciation
Allocation of marketing support costs
Governance costs
Salaries
Audit, accountancy & professional fees		 Marketing
£
99,299
107,648
-
-
-
-
-
-
-		 Costs of
raising
funds
£
20,272
-
2,095
614
676
112
-
-
-		 Theatre &
Performance
£
50,151
-
97,432
28,563
31,455
5,212
757
7,661
624		 Creative
Learning
£
12,538
-
5,238
1,536
1,691
280
-
-
33		 Support of
Total
Trust
2021
£
£
-
182,260
-
107,648
-
104,765
-
30,713
-
33,822
-
5,604
-
757
-
7,661
-
657
206,947
(206,947)		 23,769
-		 221,855
196,600		 21,316
10,347		 -
473,887
-
-
- 23,769 418,455 31,663 -
473,887
-
-		 -
-		 6,931
70,456		 385
3,708		 385
7,701
-
74,164
- - 77,387 4,093 385
81,865
- 23,769 495,842 35,756 385
555,752
107,579
450,389
-
-
-
-
-
-
-		 20,300
-
3,551
1,040
807
542
-
-
-		 77,646
-
165,104
48,376
37,544
25,217
3,150
919
4,068		 19,412
-
8,877
2,601
2,020
1,356
-
-
214		 -
224,937
-
450,389
-
177,532
-
52,017
-
40,371
-
27,115
-
3,150
-
919
-
4,282
557,968
(557,968)		 26,240
-		 362,024
530,070		 34,480
27,898		 -
980,712
-
-
- 26,240 892,094 62,378 -
980,712
-
-		 -
-		 6,977
23,551		 387
1,240		 388
7,752
24,791
- - 30,528 1,627 388
32,543
- 26,240 922,622 64,005 388
1,013,255

Support costs are allocated on the following basis:

Area

Marketing costs

Support salaries

Establishment costs & cleaners wages Other costs

basis

estimate of usage estimate of time spent Space estimate of usage

comment

net of any direct attribution

23

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

9 STAFF INFORMATION
a Employees
Salaries and wages
Pension costs
Employer's NI contributions
Staff costs for the Trading subsidiary included above		 2021
2020
£
£
838,116
861,227
32,240
36,058
45,199
66,503
915,555
963,788
-
73,593

Employees earning more than £60,000pa (excluding employer's nic and pension contributions):

£60,000 - £70,000 number
number
1
1

b Key Management

The key management of the charity comprise the trustees and senior staff (as set out on page1) and the key management of the group are the same people plus catering manager. The trustees do not receive any remuneration for their services The total employee benefits of other key management were as follows:

Charity
Group		 £
£
352,106
327,425
374,055
349,374

c Average staff numbers

The average number of employees was as follows:-

Employees
NET INCOME/(EXPENDITURE) BEFORE TRANSFERS (for the Group)
This is stated after charging/(crediting):
Auditors remuneration:-
Audit fees
Accountancy fees
Operating lease rentals
Depreciation of fixed assets
Trustees remuneration
Trustees expenses		 2021
Average
number
50		 2021
Average FTE
number
38		 2020
2020
Average
average FTE
number
number
45
34
50 38 45
34
£
5,125
3,530
37,388
657
-
-		 £
5,125
3,530
37,388
4,282
-
-

10 NET INCOME/(EXPENDITURE) BEFORE TRANSFERS (for the Group)

24

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

11 TANGIBLE FIXED ASSETS

GROUP AND COMPANY
Cost or valuation
As at April 1 2020
Additions
As at 31 March 2021
Depreciation
As at April 1 2020
Charge for the year
As at 31 March 2021
Net Book Value
As at 31 March 2021
As at 31 March 2020		 Equipment
Total
£
£
20,096
20,096
-
-
20,096
20,096
18,783
18,783
657
657
19,440
19,440
656
656
1,313
1,313

12 FIXED ASSET INVESTMENTS

The charity has owns 100% of the issued share capital of the following companies:

Name
Company no.
Blackpool Grand Theatre Catering Company Ltd
1618100
Blackpool Grand Productions Ltd
11814366
Showseats Ltd
8260979
Activity
2021
2020
£
£
100
100
Bar operations
1
1
Theatre productions
100
100
Dormant
201
201

The Charity owns 100% of the issued share capital of all the above companies being ordinary shares.

25

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

13 STOCKS
Stock of goods for resale
14 DEBTORS
Trade debtors
Grants and income receivable
Blackpool Grand Theatre Catering Company Ltd
Blackpool Grand Productions Ltd
Showseats Ltd
Other debtors
Theatre Tax Credit
Prepayments
15 CREDITORS falling due within one year
Trade creditors
Other taxes and social security
Accruals
Other creditors
Income and grants in advance
Blackpool Grand Productions Ltd
Funds in trust		 GROUP
2021
£
1,610		 GROUP
2020
£
7,466		 COMPANY
COMPANY
2021
2020
£
£
1,250
1,250
58,412
200,554
-
-
-
107
-
9,684		 143,979
178,186
-
-
-
398
12,032
14,419		 58,096
143,035
175,179
178,186
37,011
104,943
-
11,081
1,123
1,123
107
398
-
-
8,722
12,254
268,757 349,014 280,238
451,020
30,078
13,152
69,680
5,804
459,342
-
5,783		 73,359
28,530
97,978
20,095
708,397
-
7,589		 29,889
70,450
13,152
28,537
52,974
92,320
5,760
20,095
459,342
708,397
1
-
5,783
7,589
583,839 935,948
 566,901
927,388

All income and grants in advance brought forward are released in the subsequent year.

26

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

16 STATEMENT OF FUNDS

2020/21
TTR &
Income
Expenditure
Transfers
31/03/2021
£
£
£
£
1,193,178
(986,341)
(2,779)
370,307
10,000
(5,750)
(4,088)
118,787		 489,094 386,297 875,391 2020
£
285,443
214,034		 499,477
(569)		 498,908
(6,867) 6,867 -
(992,091) (377,670) (1,369,761) 2021
£
489,663
386,297		 875,960
(569)		 875,391
1,203,178 543,066 1,746,244
b/f and c/f
31/03/2020
01/04/2020
£
166,249
118,625		 284,874 214,034 498,908
2019/20
01/04/2019
Income
Expenditure
Transfers
£
£
£
£
237,151
2,948,025
(2,997,604)
(21,323)
104,429
13,750
(34,879)
35,325		 14,002 (1,970) 12,032
(3,032,483) (89,216) (3,121,699)
2,961,775 250,146 3,211,921
341,580 55,074 396,654

27

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

16 STATEMENT OF FUNDS (continued)

2020/21
TTR &
Income
Expenditure
Transfers
31/03/2021
£
£
£
£
1,153,707
(955,870)
(2,779)
361,876		 90,000
18,787
10,000		 118,787 480,663 156,000
10,000		 166,000 - - 8,102
-
1,867
-
172,368
34,960
-
12,000		 229,297 395,297 875,960 2020
£
5,000
-		 5,000
20,000
(24,088)
-		 (4,088) (6,867) -
-		 - - - -
-
-
-
6,867
-		 6,867 6,867 -
-
-
(5,750)		 (5,750) (961,620) (327,666)
-		 (327,666) (5,300) (5,300) (171)
(2,400)
(3,942)
(1,219)
(19,972)
-
(18,000)		 (45,704) (378,670) (1,340,290) 2021
£
-
12,000		 12,000
-
-
10,000		 10,000 1,163,707 483,666
10,000		 493,666 5,300 5,300 -
2,400
3,345
-
-
34,960
(11,605)
25,000		 54,100 553,066 1,716,773
b/f and c/f
31/03/2020
01/04/2020
£
166,818		 70,000
42,875
5,750		 118,625 285,443 -
-		 - - - 8,273
-
2,464
1,219
192,340
-
4,738
5,000		 214,034 214,034 499,477
2019/20
01/04/2019
Income
Expenditure
Transfers
£
£
£
£
237,706
3,014,521
(3,052,054)
(33,355)		 -
35,325
-		 35,325 1,970 -
-		 - - - (1,970)
-
-
-
-
-
-
-		 (1,970) (1,970) -
-
(25,879)
(9,000)		 (34,879) (3,086,933) -
-		 - (8,900) (8,900) (318)
(5,578)
(5,939)
(13,781)
(7,460)
-
(8,708)
(38,532)		 (80,316) (89,216) (3,176,149)
-
-
13,750		 13,750 3,028,271 -
-		 - 8,900 8,900 5,000
3,000
-
15,000
199,800
-
13,446
5,000		 241,246 250,146 3,278,417
70,000
33,429
1,000		 104,429 342,135 -
-		 - - - 5,561
2,578
8,403
-
-
-
-
38,532		 55,074 55,074 397,209

28

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

16 STATEMENT OF FUNDS (continued)

STATEMENT OF FUNDS (continued)
Transfers
Adjustment to fund balance		 Unrestricted Restricted
General Programme
Reserve		 designated
Creative
Learning fund
GDPR		 Advertising
fund		 Ambition for
Excellence
Fund
24,088 - (24,088) - - -
24,088 - (24,088) - - -

Designated funds

Programme reserve

To provide support for future seasons programming.

Creative learning fund

Funds set aside to support the delivery of the creative learning programme.

Advertising fund

Funds designated to support online advertising.

Restricted funds

Restricted funds
ACE CRF1 has been allocated as follows:
Equipment 122,000
Marketing 25,000
Development 10,000

Creative Learning towards future project costs in 2021/22.

17 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Company fund balances at March 31 2021
are represented by:-
Fixed assets
Net current assets		 Unrestricted funds
General
Designated
£
£
857
-
370,019
118,787		 Unrestricted funds
General
Designated
£
£
857
-
370,019
118,787		 Restricted
Funds
£
-
386,297		 Total
£
857
875,103
370,876 118,787 386,297 875,960

Company fund balances at March 31 2020 are represented by:- Fixed assets Net current assets

Unrestricted funds
General
Designated
£
£
1,514
-
165,304
118,625		 Unrestricted funds
General
Designated
£
£
1,514
-
165,304
118,625		 Restricted
Funds
£
-
214,034		 Total
£
1,514
497,963
166,818 118,625 214,034 499,477
2021 2016

Free Reserves:

Free Reserves: 2021 2016 £ £ Net current assets 370,019 165,304

29

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

18 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES

Net income/(expenditure)
Add back depreciation
Deduct interest income shown in investing activities
Decrease/(increase) in stock
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash generated from/(used in) operating activities		 Group
2021
£
376,483
657
(2,763)
5,856
80,257
(352,109)		 Group
2020
£
102,254
4,282
(8,427)
1,275
(179,119)
12,695		 Charity
Charity
2021
2020
£
£
376,483
102,268
657
4,282
(2,743)
(8,308)
-
-
170,782
(222,616)
(360,487)
16,069
108,381 (67,040) 184,692
(108,305)

Changes in Net Debt

The Group and the Charity had no net debt in either year

19 CONSTITUTION

The Company is limited by guarantee and does not have a share capital. In the event of the Company being wound up the members are committed to contributing £1 each.

20 TAXATION

The company is a registered charity and is entitled to claim annual exemption from UK corporation tax under sections 466 to 477 of the Corporation Tax Act 2010.

21 CAPITAL COMMITMENTS

The company had no capital commitments at the year end (2016 - none).

22 LEASE COMMITMENTS

Operating leases

The charity and group had the following future minimum commitments under non cancellable operating leases:

Not later than one year
Later than one year and not later than five years
Greater than 5 years		 Group
2021
£		 Group
2020
£		 Charity
Charity
2021
2020
£
£
40,721
40,721
160,000
161,442
320,000
360,000
40,721
160,000
320,000		 40,721
161,442
360,000
520,721 562,163 520,721
562,163

30

BLACKPOOL GRAND THEATRE (ARTS & ENTERTAINMENTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

23 RELATED PARTY TRANSACTIONS

Blackpool Grand Theatre Catering Company Ltd (Catering)

Catering is the wholly owned trading subsidiary of the charity (A&E) and operates the bars and sells ice-creams and other catering services in the theatre. During the year the charity charged Catering for the following services:

Staff costs
Room hire charges
Management fee
Sales to A&E by Catering
Profits Donated under gift aid by Catering to A&E
Balance outstanding at the year end		 2021
2020
£
£
62,446
62,446
-
1,425
7,613
36,107
70,059
99,978
1,704
1,704
13,686
33,424
37,011
104,943

Blackpool Grand Productions Ltd (BGP)

BGP is the wholly owned trading subsidiary of A&E and was formed as a production company for in house productions. During the year it earned £NIL (2020 - £206,608) from A&E for production services and was charged £NIL (2020 - £236,376) by A&E for subcontracts production services and costs.

Balances outstanding at the year end

(1) 11,081

Blackpool Grand Theatre Trust Ltd (The Trust)

A&E works closely with the Trust, a registered charity, which owns the theatre and to who is pays rent and provides management services.

During the year A&E had the following transactions with the Trust:

Rent and hire charges to A&E
Management charges to the Trust
Amount due (to)/from the Trust at the year end		 40,000
36,667
56,219
77,806
(121)
5,354

A formal lease was entered into between the Trust and A&E in respect of the theatre in January 2021. This provides for a basic rent of £40,000 pa with an additional payment based on 1% of the unrestricted surplus, after free reserves reach £250,000 and after providing for a £20,000 allocation to the programme reserve. Only the minimum annual payments are shown in note 23.

Friends of the Grand Theatre (The Friends)

A&E works closely with the Friends in order to secure the viability of the theatre. The Friends provide a pool of volunteer ushers for the theatre. Although the Friends financial support is chiefly directed towards the Trust, they have made donations in each of the last two years to support the work of A&E of £5,300 per year.

A&E support the Friends with their fundraising activities and sell tickets on their behalf for fundraising events. At the year end it held the following amounts:

- 1,806

There are no other related party transactions that are required to be disclosed.

The Charity is controlled by its directors.

31