THE PALACE THEATRE WATFORD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2022
Company Registration No. 3218719 (England and Wales)
4AtsIXU198'
1511212022
COMPANIES HOUSE

THE PALACE THEATRE WATFORD LIMITED
CONTENTS
Page
Dlrectorn and Advisers
Report of the Di￿¢t0
3-10
Report of the Independent Auditors
11-13
Statement of Financlal Actlvities
14
Balance Sheet
15
Statement of Cash Flows
16
Notes to the Financial Statements
17-27

THE PALACE THEATRE WATFORD UMITED
DIRECTORS AND ADVISERS
Directors
Chair
Deborah Lincoln (resigned 26 January 2022>
Chair
John Hunt (from 26 January 2022)
Kenny Dada
Agnieszka Dychton . {appointed 26 January 2022)
Anne Fenton
Howard Groves (appointed 10 May 2022)
Mark Lawren
Carol Lingwood
Bibi Mauthoor (appointed 14 March 20221
Binila Mehta-Parmar
Georgina Rae
Brett Spencer
Patrlck Stoddart
Jayne Trotrnan
Timothy Imlliams"
Govemancè Committee
Govemance Commrttee
Govemance Committee
Governance Committee
Govemance Committee
Directors nominated by Watford Borough
Counul.
SeGreLIry
Jamie Arden
Registered Office
20 Clarendon Road
Watford
Herts WD17 1JZ
Bankers
National Weslminster Bank plc
72-74 High Street
Watford
Herts WD17 2BQ
AudStoKs
PKF Ltluejohn LLP
15 Westferry Circus
Canary Wharf
London E14 4HD
Charity Registration number
1056950
Company Registration number
3218719

THE PALACE THEATRE WATFORD LIMITED
REPORT OF THE DIRECTORS
The Directors of the Charrtable Company present herewilh their Annual Report. together with the audited
Financial Statements for the year ended 31 March 2022. This report is intended to fulfil the requirements
both of Section 234 of the Companies Act 2(K)6 and of the Charities Act 2011.The Director5 have adopled
the provisions of the Statement of Recommended Practice "Accounts'ng and Reporb"ng by Charities" in
preparing the annual reFMJrt and financial statements of the charity.
Reference and Administrative Details
The Palace Theatre Wafford Limrted is a charitable company limtled by guarantee and govemed by a
Memorandum and Articles of Association dated 17 May 1996.
Public Benefit
The Trustees confirm that they have had regard to the guidance on public benefit issued by the Charity
Commission when considering the objectives and activities of the Charitable Company.
Board of Directors
The Directors and Trustees from 1 April 2021 to the date of the signing of the Financial Slatemenls were as
shown on page 2. The Directors shall have power at any time lo appoint any person to be a Director. but so
that the total number of Directors shall not at any time exceed the number fixed in accordance with the
Articles. Any Director so appointed shall hold office only until the following Annual General Meeting, and
shall then be e1￿ible for re-election. but shall not be tsken into account in determining Ihe Directors who are
to retire by rotation al such meeting. Tvm Directors a￿ nominated by Watford Borough Council. (There are
specific Tequirements associated with the rotstion of Directors, the terms of which are stated in the
Mernorandum and Articles of Asso(aation).
Trustees receive ongoing training. incI￿￿1n9 attendance at an annual away day.
The Directors and Trustees delegate the day to day running of the organisation to..
Brigid Lannour- A￿stIC Director and Chief Executive
Jamie Arden - Executive Director and Company Secretary
Andrew Phillips- Director of Finan
Pov￿rS of the Company
The Directors take this opportunity to confirm that under Clause 3 of the Charitable Company's
Memorandurn of Associatson. it is empowered to carry out the actNrties reviewed in the Annual Report
including, but not limited to. the beneficial investrnent of the Charitable Company's funds.
Strategic Objectives
From April 2018 Wattord Palace Theatre e4VPT) entered into our new 4 year Business Plan 2018-2022.
WATFORD PALACE THEATRE MISSION AND VISION sTATEmE￿r 2018-2022
WPT Mlsslon
Great slones that entertain. provoke and inspire. on our stage and in our streets.
WPT Vision
Everyone's welcome at the Palace. We aim to inspire arKI entertain through high-quality, invenlive and
ambitious drama, new plays. musicals, dar)ce and family shows,. free outdoor festivals.. diverse stand-up..
and a much-loved traditional panlomime.

THE PALACE THEATRE WATFORD LIMITED
REPORT OF THE DIRECTORS
See yourself on our stage. We want our shows to look like our audience.. reflecting our diverse communty,
and fully representing women. We encourage and celebrate creativity in our town, giving a plafform to our
communities and ouryoung people.
See St here first. We are proud that our locally produced shows and home grown talent have toured
nationally and intemab'onally. teen seen on BBC iPlayer, won awards and transferred to the West End.
WATFORD PALACE THEATRE - INSPIRATION ON YOUR DOORSTEP
Strategic Objectives
For the four years 201&2022. the charities strategic obj'ectives are as foll¢)WS:
STRATEGIC OBJECTIVE ONE - STRIVE FOR EXCELLENCE
To increase the quality, diversty and impact of the work prodU￿d at IP4PT.
STRATEGIC OBJECTIVE TWO - THINK LOCAL AND BE DIVERSE
Develop work for a local audience and fvrther diversfy the audience and participant demographic.
STRATEGIC OBJECTIVE THREE - BE FINANCIALLY RESOURCEFUL, RESILIENT, SUSTAINABLE
AND ENTREPRENEURIAL
Significantly increase and diversify contributed and eamed ir)come to provide organisational resilience.
STRATEGIC OBJECTIVE FOUR. PARTICIPATE- BE COLLABORATIVE & CREATIVE IN PROMOTION
& AUDIENCE DEVELOPMENT
Develop a stronger ielationship vilh the community to promote and provide opportunittes to participate with
the woth made at the venue.
OUR ACHIEVEMENTS AGAINST OUR OBJECTIVES
The Covid 19 pandemic and its ongoing impact on the theatre sector continued to be a large feature of our
year, and our recovery from the impact of dosure due lo the pandemic for large parts of 2020121. It was not
until July 2021 that we began the process ofrecovery again and being able to programme shows and reopen
our doors to the public once more.
As theatres across all four nations of the UK were pemrtted to reopen and theatres faced ongoing
challenges in relation to returning audien￿$. viability of touring. show cancellations due to illness, especially
over the winter of 21122.
Reopening
We started the reopening plans from July 2021. with Iwo outdoor festivals.. Imagine Watford and Stage in
the Park- due to the ability lo deliver these projects ambitiously and at scale, bul with the added mitigation
of reducing the covid risks for staff, artists. and audien￿$. by tsking this work outdoois.
Imagine Watford - Reimaglning our annual outd¢)or festNal for 2021
This year to ensure the festival Y￿nt ahead arKI provide much needed joy to our town and community after
an incredibly difficult year. we had to "Reimagine" our annual Imagine Waiford outdoor festival. Our priority
was keeping our community safe whilst provKling all the joy. levity. and magic that Imagine Watford has
become synonymous wrth.
To ensure that we are providing free access to greal arts auoss the town in a covid safe manner the festNal
took pla￿ across various greenfield sites across Wattord - as opposed to one large convening of people in
the town centre.
The activity will took place in two strands.
Pop up mini festivals- on Ihree green sites across Ihe town
Playful instsllats'ons- in the town centre

THE PALACE THEATRE WATFORD LIMITED
REPORT OF THE DIRECTORS
These smaller community focused interactions of around one thousand households per location showed us
a new possibilty and future for the fests'val. But we missed the connects.on that the festival has enjoyed with
the town cenlre. ils businesses. residents. and visilors, making Wafford town centre a destination and
creating significant economic impact for the last ten years_ A5 part of our new vision for the festival - that
we submitted to Arts Council as part of our LET'S CREATE delivery plan from April 202>March 2026. there
is apFelite for Imagine becoming a hybn'd of its previous model and the reimagined version we created for
2021.
Stage in the Park
As a key part of Watford's cultural event calendar. Stage in the Path was a brand new festival delivered as
a partnership behveen Harfequin Theatricals. Watford Palace Theatre and Wafford Borough Council in
Cassiobury Park dunng the summer 2021.
The festival was exceptionally ambitious. providing a full programme of entertainment for all generations for
Ihe peoFAe of Watford and beyond.
Stand Up Comedy shows, Children's shows. Musicals, headline Musi¢ Acts. magicians brought a variety of
entertainfflent that had something for everyone.
The festival ran from 23 July lo 8 August and was delivered under Covid-19 Stage Three restrictions. so
audiences were bubbled in our event site. These restri¢tions ¢hanged during the run of the festival, to allow
more liberty and liow on the site.
The site consisted of fully operational backstage and front of house areas. in essence creating a fully
functioning venue from scratch in this new park location. There was a large main stage (with all the sound
and lighting capabilib'es) and a fully stocked bar I hospitalty marql￿o on the srte ~ with food and drinks
available throughout the festival.
The challenge was delivering the fests'val in such a short period of planning and specifically in tems
of the infrastructure operab.ons required. at a penod where these festivals were opening across the UK as
part of the covid recovery_ This rnade obtaining infrastructure such as festival toilets, fencing, and staging
exoptionally difficult due to a competitive market and at a cost premium. Therefore. the budget of the festival
had to increase dramatically. The festival was also impacted from some exceptionally severe weather
conditions dunng the whole run wtth torrential rain. IwJhlning, and extreme winds (unusual for July l August)
makin9 the site difficutt from an audience appeal perspective being exposed and open to the elements.
However, to achieve the festival in such a short period was a successfijl leaming process for Watford Palace
Theatre and our partners. that helped to shape our future strategic thinking and complexilies on the delivery
of these types of outdoor festivals within a park environment during the summer months.
Autumn season 2021- Reopening Season back Inside the Palace Theatre
From September 2021 we then began the process of bringing our work back inside and reopening our
Theatre and welcoming audien￿5 back.
This process started with Love N Stuff. a touring show from Oldham Coliseum, followed by our varied
programme of Children's shows. stand-up comedy (lan Stiding l Russell Kane l Louise Omelianl and dance
with Ballet Black retuming. We also gave Spa￿ to the Freelancers we had nurtured and supported during
the pandemic wilh our Freelancer season and support of the Walf0￿ Fring8. A particular highlight of the
season was Dracula a highly slriknng visual show from company Imitating the Dog - that was staged live,
and we also made available as a video on demand servTr￿ for audiences not able to come to the live
performances_ The reopening season concluded with our ability to stage our annual pantomime once again
in the Theatre. with Dick Whittinglon and His Cat. A Panto that was originally eamiarked for 2020 pantomime
prior to the impact and Theatre's closure from Covid-19 pandemic. We were delighted to have delivered a
11 run of panto shows. without a need to cancel any due to Covid (unlike most of our peers in the induslryl.
This is testament to the hard work of our team and our robust covid secure measure5 we put in place in the
venue.

THE PALACE THEATRE WATFORD LIMrrED
REPORT OF THE DIRECTORS
Spring Season 2022- our road to recovery
Our Spring 2022 season then started with Lile Sukhsl Stand-up comedy by Sukh Ojla. also a new strand of
programming was Introdu￿ and develoFed with music becoming a prevalent strand of our work in future.
This began with Iribute acl The Bob Dyan Story being the first this season and other music gigs, Jazz
festivals, bands and l or music projects gracing our stage.
other Take Part Youth and Community programmes included the hoskn'ng of the HertfOrdshI￿ Young
Persons Film Festival, developing exiting local film projects and young talented filmmakers, with our partners
Warner Bros Studios Leavesden, Cathartic and Hertfordshire University- Our new Storytelling and Storyplay
stsnds were also developed, helping to develop confidence and literacy skills within young age groups -
some young people with English as a second language. We also launched our Peoples Palace Cornpany.
our older generation en$em￿e, alongside establishing further our Palace Young Company as an extension
of our Palace Youth Theatre. Projects that We￿ piloled and developed using funds from the Garfield Weston
Culture Fund we received in 2020.
SHOWS AND PROJECTS DELIVERED AGAINGST STRATEGIC OBJECTNES APRIL 2021- MARCH
2022
STRATEGIC OBJECTIVE 1: STRIVE FOR EXCELLENCE
To Increase the quality, diversity and impact of the work produced at WPT
HIGH QUALITY PERFORMANCES AND ENTERTAINMENT ON OUR STAGES:
Dick Whittington and His Cat- Pantomime 2021
Love 'N Stuff
The Very Hungry Caterpillar
Dracula: The Untold Story
Underwater
Fireman Sam Saves The Circus- Live!
Russell Kane and Friends
Luisa Omelian.. God Is A Woman
Ballet Black- Double Bill
lain StITling.' Failing Upwards
Sukh Ojla- Life Sukhs
The Bob Dylan Story
Ed Gamble. Electric
Bumper Blyton- The Improvised Adventure
ELO Again

THE PALACE THEATRE WATFORD LIMITED
REPORT OF THE DIRECTORS
STRATEGIC OBJECTIVE 2: THINK LOCAL AND BE DIVERSE
Develop work for a local audience and further diversify the audience andparn¢ipant demographlc.
LOCAL SHOWS FOR DIVERSE AND INTREGENERATIONAL COMMUNITIES:
Celebrate Vaisakhi 2021
Eternal Taal
Good Wll Bunting
Palace Scratch Night- September 2021
Black History Month 2021 1 Am Nol Your Negro
Diwali 2021.. Pagrav Dance- Kattam Kati
Palace Young Company Summer Project- Bufferi
Hertfordshire Film Festival 2022
Community Storyplay and Storymakers
R&DIPilots
WBC Cultural Businesses Grant- First Phase delivered to invest in local creatives.
artisls and SMES - Scheme faalitated by Wattord Palace Theatre on behalf of
Watford Borough Council.
STRATEGIC OBJECTIVE 3: BE FINANCIALLY RESOURCEFUL, RESILIENT. SUSTAINABLE AND
ENTREPRENEURIAL
Significanty increase and diversify contributed and eamed income to pmvide oryanisational
resilience.
HIRING THE THEATRE TO GENERATE MORE EARNED INCOME:
Wafford Business Improvement Districl Classic Film Matinee - On The Town
RESILIENCE PROJECTS DEVELOPED:
New Comms System installed to improve Front of House l Back of House communications
Bar Reconfiguration in 2021 to make the Front of House spaces more covid resilient
Our New Scenic Workshop and Storage Unit in Bletchley - opened in June 2021
Commissioned new Masterplan vision for the fulure of Warford Palace Theatre building -
with our architeduial partners Foster & Wilson
WORKSHOP BUILDS FOR THIRD PARTIES:
Creation Musical Senrf1￿s- DJ Posib'on Build
Wind in the Wllows- Immersion Theatre Build
Aldenham School Set Build
STRATEGIC OBJECTIVE 4: PARTICIPATE - BE COLLABORATIVE & CREATIVE IN PROMOTION &
AUDIENCE DEVELOPMENT
Develop a stronger relationship with the Community to pmmote and pmvide opportunities to
participate with the work made at the venue.
DYNAMIC AUDIENCE ENGAGEMENT BEYOND THE l•lAIN STAGE:
Imagine Watford 2021
Stage in the Park Watford
The Secret Garden
New Audien￿ Oevelopment Research commissioned. and a new Audience Strategy
develoFed
The activities dwribed above demonstrate that public benefit is being provided by the Chanty.

THE PALACE THEATRE WATFORD LIMITED
REPORT OF THE DIRECTORS
Flnancial Review
The Stslement of Financial Aclivrfies shows a deficit of £462,741 (2021
surplus of £544.151) for the
financial year. This compnses a defiat before transfers on unrestn'cted fvnds of £201,423 {2021- surplus of
£207,957) and a deficit on restricted funds of £261,318 (2021 surplus of £336,194). The Directors note
that this surplus is declared after recognising depreciation chaTges of £272.525 {being £47,905 applied to
unrestricted funds, and £224.620 applied to restricted funds).
As at the year ended 31 March 2021. new and excepb'onal income sources had been recognised, resulting
from SUC￿$$￿1 applications for Covid-19 related and other support. being Restricted Grants from Arts
Council England's Cultural Recovery Fund of£248.481.' and The Gaffjeld Weston Foundation of£315.000.
Much of the related expenditure has now actually taken pla￿ in the period from 1 April 2021 due to the
extended periods of lockdown causing further delay to the Theatre's re&opening.
Income also includes HMRC'S Coronavirus Job Retention Scheme monies of £61,307 which has been
recognised in the sarne period as the wage expendiiure foi furloughed staff that it supported.
Financial Position in the Context of Ongoing Comrnitments and Obligations
The Balan￿ Sheet shows net assets of £5,646,930 at 31 March 2022 (2021- £6.099.671). As at the same
date, Revenue subsldy amounting to £231,957 and £805,118 for the following 12-month period has been
Confirmed by Wattord Borough Council and Arts Council England respect'vely. An agreed budgel for the
year to 31 March 2023 has been approved by the Board of Directors.
Subsidiary Undertaklngs
The Charitable Company's wholly owned subsidiaries. The Pala￿ Theatre Wafford Bar Limited and The
Palace Theatre Watford Productions Limited. remained domant throughout the year.
Investment Policy
The Charitable Company holds surplus cash on a deposit a¢￿Untto receive a rate ofinterestcommensurate
with an appropriate level of security. whilst not restricting access for operational purposes or payment of box
office lo touring companies and hires. Where sufficienl SLtrplus cash remains available after due
consideration for longer tem) liabilities, the Charitable Company utilises other relatNely low risk financial
products (such as Fixed Rate Bonds) to maximise income.
Parent Charitsble Company's Reserves Policy
The Trustees have reviewed the Charitable Companls needs for reserves in line with the guidance issued
by the Chanty Commission and have agreed the following reserves policy.. the target level of unrestricted
reserves is based on 1 OOA of typical box Offi￿ income and six weeks running costs. At the last calculalion,
the target is to hold free reserves of £250,000. The unrestricted general reserve (see page 13) stood at
£250.296 on 31 March 2022 {2021- £250,797). This policy is reviewed annually by the Trustees.
Risk Assessment
The Trustees have examined and prioritised the most critical risks to the Charitable Company and. as a
result, are confident that they have in pla￿ sufficient accountability and focussed action to protecl the
objectives oflhe Charitable Company. A risk register has been produced and is reviewed by the Leadership
Team and updated by the Executive Director every two months for consideration by the Board. The major
risk identified concems the funding of the Charitable Company. Arts Council England and Watford Borough
Council have the right under Service Level Agreements to wrthdraw fvnding andlor request repayment of
nds should those funds be applied to purposes other than the stated chartiable objectives. The Charitable
Company has put in Pla￿ a range of mitigatory measures. The Board operates a separate govemance
committee, with ils own Chair, to maintsin a transparent and obieth.ve overview.

THE PALACE THEATRE WATFORD LIMITED
REPORT OF THE DIRECTORS
The Covid pandemic and ils move towards a more endemic. every presented seasonal disease still
represented the biggest risk to the Charitable Company's survival in recent years. Recovery from the
lockd¢)wn closures and the end of the specific ffinancial support measures {CJRS and Cultural Recovery
Fund monies), as well as audience confidence coming back into Theatres and buying tickets given the
difficu5ts.es faced with the UK economy. made this period eX￿p￿'0na1IY challenging. However. our robust
financial measures implemented during lockdown period. couple with our prudent financial management,
reserves policy. and conlinued lean operations. meant the Charitable Company was in a solid base for
surviving these challenging economic factors.
Plans for future periods
As we emerge from the Coronavirus pandemic and slvwly retum to our abilty to reopen and serve the
people of Wafford and beyond, our fvture ￿anS include".
Securiro our future funding vias Arts Council new NPO framework and Watford Borough Council
continues support
Creating a new Artistic Vision. Mission. and Core Purpose for the Pala￿ Theatre to ensure that the
building and cultural infrastructure is fit for purpose in the medium to longer temi
Delivering our Arb'stic programme IndoorslOutdoorslOnlinelOn the road.
Statement of Trustees, Responsibilities
The Twstees {who are also Directors of The pala￿ Thealre Wafford ft)r the purposes of company law} ale
responsible for preparing the Tnjstees. Report and the Financial Statements in accordance with applicable
law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclice).
Company and Charity law requires the Trustees to prepare Financial Statements for each financial year.
Under that law Ihe Trustees have elected to prepare the Financial Statements in accordance with the
Charities. Stalement of Recommended Practice, Accounting and Reporting by Charities issued in
March 2015 and United Kingdom Financial Reporting and Accounting Standards. Under Company and
Charity law the Trustees must not approve the Financial Statements unles5 they are satisfied that they give
a true and fair view of the state of affairs of the Charttable Company and of the incoming resources and
application of resources, including the income and expenditure of the Charitable Company (and the Group)
for that period. In preparing these Finan￿al Statements. the Truslees are required lo..
select suitable accounting policies arKI then apply them consistently"
obserrfe the methods and principles of the Charibes. SORP"
make judgements and estimates that are reasonable and prudent"
state vthether applicable accounting standards have b￿n followed. subject to any material
departures disclosed and explained in the Financial Statements.. and
prepare Ihe Financial Statements on the going concern basis unless rt is inappropriate to presume
that the Company will continue in business.
The Trustees are responsible for keeping proper accounting records that disdose wilh reasonable accuracy
at any ts'me the financial posits.on of the Charitable Company and enable them to ensure that the Financial
Statements comply with the Companies Act 2C￿6. They are also ￿sponsible for safeguarding the assets
of the Charitable Company {and the Group) and hence for taking reasonable steps for Ihe prevention and
detection of fraud and other irregularities.
In accordance wilh company law. as the Company's Directors, we confirn that.
so far as we are aware. there is w relevant audit infomiation of which the CoMpan￿S auditors are
unaware" and
as the Directors of the Company, we have taken all steps that we ought to have taken in order to
make ourselves aware ofany felevant audrt information and to estsblish that the Company's auditors
are aware of that information.

THE PALACE.THEATRE.WATFORD LIMITED
REPORT OF THE DIRECTORS
Aud5¢ors.
P.KF L¢ttlei¢knLLPwe app￿ted¥S3ud[I￿st0ts￿ Charit•"bJe comp8ny.and have Ind￿ted"theIrwl1llft￿ts$1
t() cLY¢tinue in.office.
This report.was appTO¥
order ofthe P￿0rd lif E)irectors and.s¥￿￿j on Its bèhalf by:
oh
30.Novenkn.2022
10

THE PALACE THEATRE WATFORD LIMrrED
INDEPENDENT AUDITORS. REPORT
Independent Auditors. Report to the Members of The Palace Theat￿ Watford Limited
Opinion
We have audited the financial statements of The Palace Theatre Walford Limited (the 'charitable company'l
for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet.
the Cash Flow Statement and noles to the financial statemenls. including a summary of significant
accounting poliaes. The financial reporb'ng framewo￿ that has Iken applied in their preparation is
applicable law and United Kingdom Accounting Standards. including Financial Reporting Slandard 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..
give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of
its incoming resources and application of resources. including it5 income and expendilure. for the
year then ended:
have teen propedy prepared in accordance wth United lQ'ngdom Generally Accepted Accounting
Practice,. and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basls for opinion
We conducted our audrt in accordan￿ wth Intemational Standards on Auditing (UK) (ISAS (UK)) and
applicatr￿e law. Our responsibilities under those stsndards a￿ further described in the Auditorfs
responsibilities for the audit of the financial statements section of our report. We are independent of the
charitable company in accordan￿ V￿th the ethical requirements thal are relevant to our audit of the financial
statements in the UK. including the FRC'S Ethical Standard, and we have fiJSfilled 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 opin￿n.
Conclusions relating to going concern
In auditing the financial ststements. we have concluded that the Tnjstees. use of the going concem basis of
accounting in the prep8rab.on of the ffinancial statements is appropriate.
Based on the work we have perfomed. we have nol identified any material un￿rtaIntieS relating to events
or conditions that, individually or collectivety, may cast signifficant doubt on the charitable company's abilty
to continue as a going concem for a period of at least ￿e1ve months from when the financial statements
are authorised for issue.
Our responsibilities and the responsibilities of the TrUst￿s with respect to going concem are desciibed in
the relevant sections of this report.
Other information
The other infomiation comprises the informab.on included in the Annual Report of the Trustees, other than
the financial statements and our auditorfs report thereon. The Trustees are responsible for the other
infomation contsined within the Annual Report of the Trustees. Our opinion on the financial statemenls
does not cover the other information and. except to the extent otherwise expliciUy stated in our report. we
do not express any form of assurance condusion thereon. Our responsibility is to read the olher 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 otherwse appears to be materially
misstated. If we idents'fy 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 condude that there is a material misstatement of this other
infomiation, we a￿ required to report that fact. We have nothing to report in Ihis regard.
11

THE PALACE THEATRE WATFORD LIMrrED
INDEPENDEiif AUDrroRS' REPORT
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of Ihe audit..
the information given in the Annual Report of the Trustees (which includes the Directors. report)
prepared for the purposes of company law, for the financial year for which the financial stalements
are prepared is consistent with the finanual ststements," and
the Annual Report of the Trust*s (wthich includes the Directors. rekX)rt) has been prepared in
accordan￿ with applicable legal requirements.
Matters on which we are requlred to report by exceptlon
In the light of the knowledge and understanding of the charitable company and rts environment obtsined in
the course of the audrt, we have not identsfied matenal misstatements in the Annual Report of the Trustees.
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-
adequate accounting records have not been kept, or retums adequate for our aLKlit have not been
received from branches not visited by us. or
the financial statements are not in agreement with the accounting records and returns; or
certain disdosures of Trustees. remuneration specrf*d by law a￿ not made.. or
we have nol received JI the infomalion and explanats.ons we require for our audit.
Responsibilities of Trustees
As explained more fulty in the TFustees' responsibilities statement. the Trustee5 (who are also the directors
of the 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 detemiine is necessary to enable the preparats'on of financial ststements that are free from
material misstatement. whether due to fraud or e￿Or.
In preparing the financial ststements. the Twstees are responsible for assessing the charitable company's
ability to continue as a going concem. disclosing, as applicable. matters related to going concern and using
Ihe going cOn￿M basis of accounting unless the Trustees either intend to liquidate the charitable company
or to cease operalions. or have no realistic altemative but to do so.
Auditovs 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 lo fraud or error. and to issue an audilor's report that includes
our oynion. Reasonable assurance is a high level of assuran￿ but is not a guarantee that an audit
conducted in accordance with ISAS (UK) wll ahvays delect a material misslatement when it exisls.
Misstatements can arise from fraud or error and are considered material rf, individually or in the aggregate,
they could reasonabty be expected to influence the economic decisions of users laken on the basis ofthese
financial statements.
Irregularits'es. including fraud. are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilikn'es, outlined above, to detect material misslatements in respect of
irregularits'es, including fraud. The extent to which our procedures are capable of detectsng irregularilies.
including frautl is detailed bel¢)w'.
We obtsined an understanding of the charitable company and the sector in which it operates to
identify laws and regulabons that could reasonabty be expected to have a direct effect on the
finanoal statemenls. We obtained our understanding in this regard through discussions with
management. sector ￿searCh and applicats'on of cumulalive audit knowledge and experience.
12

THE PALACE THEATRE WATFORD LIMITED
INDEPENDENT AUDITORS, REPORT
We delemiined the principal laws and regulations relevant to the charitable company in this regard
to be those arising from the Companies Act 2006. Charities Acl 2011, Charitses (Accounts and
Reports) Regulats'ons 2008, Financial Reporting Standard 102 and Ihe Charities SORP.
We designed our audit procedures to ensure the audrt team considered whether there were any
indications of non-complian￿ by the charity wilh those laws and regulations. These procedures
included. but were not limrted to enquiries of Trustees. review of minutes and review of legal and
regulatory corresponden￿.
We also identffied the risks of material misstatement of the financial statements due to fraud. We
considered, in addition to the non-rebuttable presumption of a risk offraud arising from management
override of controls, thal there was a polential for management bias in the recognition of revenue.
We addressed this through reviewing revenue in the year foi eviden￿ of enlitlemenl and at the year
end to ensure accounted for in the correct period.
As in all of our audits. V￿ addressed the risk of fraud ansing from management overrtde of controls
by performing audit procedures which included but were not limiled to.. the testing of journals.,
reviewing accounting estimates for eviden￿ of bias- and evaluabng the business rationale of any
significant transactions that are unusual or outside the nomial course of business.
Because of the inherent limitations of an audit. there is a risk that we will notdetect all irregularities, including
those leading to a material misstatement in the financial statements or non-complian￿ with regulab'on. This
risk increases the more that compliance with a law or regulalion is removed from the events and transactions
reflected in the financial slaternents, as we will be less likety 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. omissTron or misrepresentation.
A fijrther descriplion of our responsibilities for the audit of the finanaal statements is located on the Financial
Reporting Counul's V￿b$ite at. vA4w.fr¢.org.uklauditorsresponsibilth'es. This description forms part of our
auditorfs report.
Use of our report
This report is made solety 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 memters those matters we are required to stste to them in an auditorfs report and for
no other purpose. To the fvllesl extent Femitted by law. we do nol ac￿pt or assume responsibility to
anyone, other Ihan the charrtable company and the charitable company's members as a body. for our audit
work, for this report, or for the opinions we have fomed.
Alastair Duke (Senior Statutory Auditor)
15 Westferry Circus
For and on behalf of PKF Littlejohn LLP
Canary Wharf
Ststutory Auditor
London E14 4HD
Date-.
13

THE PALACE THEATRE WATFORD LIMrrED
STATEMENT OF FINANCIAL ACTIVITIES
YEAR ENDED 31 MARCH 2022
2022
2022
Unrestricted Restricted
funds
funds
2022
Total
funds
2021
Total
funds
Incoming Resources
Grants receivable and fees
Donalions and 9￿$
Bank interesl
Ancillary trading activiti'es
Coronavirus Job Retention Scheme
1.143.075
23,094
121
52,451
61.307
1.143,075
30.835
121
52.451
61,307
1.607,000
24,547
1,069
367
388.852
7.741
1.280.048
7.741 1.287.789
2,021,835
Charilable Activities
Produdion
Participation
Other
550.454
27.751
69.609
550.454
27.751
69.609
15.324
11.857
9,639
647.814
647,814
36,820
Total Income
1.927,862
7.741 1,935.603
2,058,655
Expenditure on:
Raising funds
Charitable Activities
Production
Participakn"on
395
284
679
1.793
1,826.773
302.117
231,147 2.057,920
37,628
339.745
1.300.398
212,313
Totsl Expenditure
2.129,285
269.059 2.398.344
1,514,504
Net IncomellExpenditure)
(201,423) (261.318) {462.741)
544,151
Transfers between funds
13
159.077
1159.077)
Total funds brought forward
799.2L)J 5.300,471 6,099,671
5,555,520
Total funds carried foThYard
756.854 4.880.076 5,636.930
6,099,671
All income and expenditure derives from continuing activities.
The ststement of financial activities indudes all gains and losses recognised during the year.
The Accounting Policies and Notes on pages 17 to 27 forn part of these Financial Statements.
14

THE PALACE THEATRE WATFORD UMtrED
(Company Reg5stration numbef 3218719)
BALANCE SHEET
YEAR ENDED 31 MARCH 2022
2022
2021
Fixed A$5ets
Tangible assets
Investment5
4.543.682
200
4.709.639
4.543.882
4.7CKJ,839
stock
Doblo
Cash at bank aThJ tn hand
7.11f
241.800
1.176.196
2.564
217.714
1.313.010
10
1,425,107
1.533.288
Creditors: falm￿ thJev+ithin
onè yèar
{W2.059)
1143,4561
Net Currtnt Ass•ts
1.093.048
1.389.832
N•t Ass•ts
5.646,930
6,099,671
InconR Funds
Restricled Funds
13
4.880,076
5.3Q).471
Unr•str7eled Funts
General
Oewgnated
250.289
5C6,565
250,792
548.408
12
Total Unr•stricted Funds
756,854
799.200
Total Ch¥iify Funds"
5.646,930
6,099.671
Board on 30 November 2022 and sy*d ￿ its bohaf by:
John Hunt
Char
The AI>x4thry Policies *J Noies on pages 17 to 27 fomi pwl ofthe59 Fin￿(la7 Statements..
15

THE PALACE THEATRE WATFORD LIMITED
STATEMENT OF CASHFLOWS
YEAR ENDED 31 MARCH 2022
2022
2021
Cash flow provlded from operating activities
(30,367)
837.187
Cash flow from investing activities
Payments to acquire tangible fixed assets
Interest reCeiva￿e
(105,568)
121
(6,5031
1.069
Net cash flow (used in) Investing a￿l¥ll1e5
(105.44n
{5,434)
Change in cash and cash equivalents in the year
(135,814)
831,753
Cash and Cash equivalents at stsrt of year
1,313.010
481,257
Cash and cash equlvalents at end of year
1,177,196
1.313.010
Reconciliation of not income to net cash flow from operating activities
Net incomel(expenditure) for year
Interest receivable
Depreciation of tangible fixed assets
{Increase)IOecrease in slock
{Increase)IDecrease in debtors
Increasel(Decrease) in credito
(462,741)
(121>
272.525
(4.547)
124,086)
188,603
544.151
{1,069)
315,815
3,643
72.244
<97.597)
Net cash flow provided from operating activitles
{30.367)
837,187
The Accounting Policies and Notes on pages 17 to 27 fomi part of these Financial Statements.
16

THE PALACE THEATRE WATFORD LIMITED
NOTES TO THE FINANCIAL STATEMEl+lTS
YEAR ENDED 31 MARCH 2022
General infonnation and basis of preparation
The Palace Theatre Watford Limited is a company limited by guarantee in the United Kingdom. In the
event of the charity bein9 wound up. the liability in respect of the guarantee is limited to £1 per member
of the charty. The address of the registered office is given in the charity information on page 2 of
these financial ststements. The nature of the chanty's operations and principal actlvities are set out
in the Report of the Trustees.
The charity constitutes a public benefft entity as defined by FRS 102. The financial statements have
been prepared in accordance with Accounting and Reportlng by Charities.. Statement of
Recommended Practi￿ applicable to charits'es preparing th&r accounts in accordance with the
Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102), the Financial
Repo￿ng Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities
Act 2011, the Companies Acl 2006 and UK Generally Accepted practi￿ as it applies from 1 January
2019.
The financial statements are prepared on a going concem basis under the historical cost convention,
modified to include certain items at fair value. The financial statemenls are prepared in sterjing which
is the functional cUr￿ncY of the charity.
The significant accounting policies apPl￿d in the preparation of these financial statements are set out
bdow. These policies have been consistenuy appl￿ to all years presenled unless otherwise stated.
Going Concern
It is the opinion of the DireCtorn￿rustees that the use of the going concem basis of accounting is
appropriate because..
there are no material uncertainties relating to events or conditlons that may cast signthcant
doubl about the ability of the Charitable Company to continue as a going Con￿rn.,
• there is reasonable expectation that the Charitable Company has adequate resour￿5 to
continue in operational existence for the foreseeable fvture.
Accounting Pollcles
2.1 Funds
Unrestricted Designated Funds
Refurbishment Depreciats"on Fund costs rdated to small scale repairs and renovations, and the
associated depreciation.
Future Production and Artistic projects - to hold grant and other monies for use on fvture productions
and artistic projects.
Building and visitor experien￿ - to hold grant and other monres to cover building contingency
expenses and for physical improvements to enhanr£ the visitor expenence.
Fapde Renovation Fund - costs related to the renovation of the building fapde and the associated
depreciats'on.
Lighting Desk Depwialion Fund - the dep￿lation cost of the lighting desk acquired in November
2012.
Resilience Projects FurKI- to hold grant and other m¢)nies to tund one-off mldllong tenn impact projects
related to the Charitable Company s strategic resilience.
Bar Refit Dep￿latIOn Fund - costs related to the renovation of the Bar I Cafe areas, and the
associated depreciation
VAT Project Fund fees and other exFenses in relation to a review of the Theatre's historic VAT
treatment. and subsequent daim for a refijnd from HMRC
17

THE PALACE THEATRE WATFORD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2022
Accounting Policies (continued)
Restricted Funds
Theatre refurt)ishment fund- funds received1￿CeIV8ts1e specifically for ihe cost of the refurbishment of
the Theatre.
Catalyst Arts Fund - funds re￿1Ved1receivab1e spectficalty in relation to the Arts Council England's
Catslyst Arts Capacity building and match funding scheme, to support organisations in building their
fundraising capacty and capability over a three-year period_
ACE Capital Fund - funding towards capital works to enhance rehearsal facilrties, to impTove energy
efficiency and to replace essents'al specialist equipment.
New Writing Fund - funding towards investrnent in vKitsng new work.
Merchant of Venice - donations r￿e1Ved to supwrt our future production of Shakespeare's The
Merchant of Venice (a Creative response to anti-semitism in Britain. set in the London of the 1930s).
Arts Council Cultural Recovery Fund - the govemment's Culture Recovery Fund, supporb.ng cultural
organisations through the impact ofthe Covi&19 pandemic.
Garfield Weston Foundats'on - grant re￿1ved forn the Weston Cutture Fund to sut4K)rt our Take Part
youth and community programmes. Amounts are drawn down against the fund and transferred to Ihe
general fund when expenditure is incurred.
Fund Transfers
Transfers are made between fvnds as and when the Trustees d￿M them necessary, within the limits
of any reslriclions Ihat are in place.
2.2 Incoming Resources
Voluntary income including donalions, gifts and grants that provide core funding or are of a general
nature are recognised where there is entitlement. probabilrty of receipt and the amount can be
measured wrth sufficient reliability. Such income is only deferred where the donor has specffied that
the grant or donation must be used in a fvture accounting period.
Investment income is recognised on a receivable basis.
Income from charilable activities indudes..
income derived from the*rical productions which is accounted for in the period in which the
productions tske place"
grant income to support education and youth activilies which is recognised where there is
entillement. ￿rtaInty of r￿lpt and the amount can be reliably measured.
2.3 Resources Expended
Expenditure is recognised when a liability is incurred.
Charitable aciivikn.es include expenditure assoaated with the staging of theatrical productions and
participation activibes. These include both the direct costs and support Costs relating to these
aclivities. ExFenditure on materials for set. props and costumes are accounted for in the Consolidated
Statement of FirTrancial Activities (SOFA) of the period of Ihe production. None of this expenditure is
capitalised. as sets are either dis[￿Sed of, or sold on within the same financial year, or very shortSy
after the financial year end.
Support costs represent central function costs, governance costs and ovetheads and have been
allocated betAeen the activities of productions and participation usjng an apF￿rti0nMent percentage
calculated by comparing the direct costs attributable to each of those categories in the year.
18

THE PALACE THEATRE WATFORD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2022
Accounting Policies (continued)
2.4 Tangible Fixed Assets
Fixed assets (other than those relating to productions - see above) are stated at historical cost.
Depreciation is provided on all tangible fixed assets at rates calculated to write each asset down lo its
estimated residual value eventy over its expected usefvl Itfe. as follows..
Plant, equipment and machinery
Information technology
Leasehold improvements
Long leasehold property
10Vo - 250/0 straight line
10% - 33°/ty straight line
2.5Vo - 20¥0 51raight line
2.5% stravJht line
2.5 stock
Stock is valued at the lower of cost arKI net realisable value, after making due allowan￿ for obsolete
or slow moving items.
2.6 Leased assets and obligations
All operats'ng lease rentals are charged to the SOFA on a straight line basis over the lease temi.
2.7 New Writing Arrangements
These are advance costs inujrred for possible fijbjre Shov￿ where the Charitable Company
cornmissions a writer to work on a production which may or may not eventually be produced. The
costs are written off to the SOFA in the year in which they are incurred.
2.8 Pensions
The Charitable Company operates a defined contrrbution pension scheme and the pension charge
represents the amounts payable by the Charitable Company lo the fund in respect of the year.
2.9 Taxation
The Charitable Company is exempl from Corporats'on Tax as all of its income is charitable and is
applied for charrtable purposes. The Charttable Company is regislered for Value Added Tax (VAT).
irrecoverable VAT (where applicable) is included in the cost of Ihose items to which il relates.
19

THE PALACE THEATRE WATFORD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2022
Net IncomellExpenditure)
2022
2021
This is ststed after Gharging..
Auditors, ￿Muneration
Depreciation
Operab"ng leases- land and buildings
8,820
272,525
27.000
8,888
315,815
Incoming Resources
2022
2021
Grants Receivable and fees
Unrestricted income from-.
Arts Council England - grant
servi￿ provision fees- Wafford Borough Council
Support grant- Watford Borough Council
805.118
231.957
106.000
805,118
238.401
Restrscted income from..
Arts Council England - Cultural Recovery Fund grant
Garfield Weston Foundats'on - grant
248,481
315,000
1,143,075 1,607,000
Incoming ReSoU￿eS from Charitable Activities
Production..
Box office income - produced
Box office income- co produced
Box office income - presented
Other produclion income
Film sales
Hire fees income
Front of house sales
268.706
725
151,119
119.406
3.413
240
6,845
921
6.056
24
598
7,725
550,454
15,324
Parts'cipation-.
Educational aclivits'es
External funding
26.861
890
8.457
3,400
27.751
11.857
Other-.
Tax relief
Sundry income
45,332
24,277
6,418
3,221
69.609
9,639
Total income from charrtable activities
647,814
36,820
Income from grants receivable and fees was £1.143,075 (2021 £1,607,000) of which £Nil {2021
563.4811 was attributable to reslricted funds and £1.143 075 {2021 £1.043,519} was attributable to
unrestricted funds.
Income from charitsble activikn'es wa5 £647.814 (2021- £36,820) ofwhich £Nil (2021- £Nil) was attributable
to restricted funds and £647.814 (2021- £36.820} was attributable to unrestricted fvnds.
20

THE PALACE THEATRE WATFORD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENOED 31 MARCH 2022
Employee Information - Staff Costs
2022
2021
Establishment salaries
Establishment social security costs
Establishment pension costs
Non-establishment salaries
Non-establishment s¢xial security costs
Nonostablishment pension costs
764,367
74,783
16.749
261,893
4.633
3,817
671.778
59.621
1 S.269
169.897
1.158
1.573
1,126,242
919.2
One employee received emoluments beiween £70.000 and £80.000 (2021- one). The total amount
of employee benefits re￿r￿ed by key management personnel, Considered to be the Executive Team.
during the year was £176,990 (2021- £177.￿6).
Average Monthly Number of Employees durlng the Year
Part-time
Casuavseasonal
2022
2021
Establishment
Non Establishment
25
25
25
37
Transactions with Dlrectors
The Directors of the Charitable Company received no ￿MuneratiOn or reimbursement of expenses in
the year (2021- £nil).
Total Resources Expended
6.1 Analysis of Charitable Expenditure
Dlre
¢osts
Support
costs
Total
2022
Total
2021
Production
Participation
811.735
136,879
1,246,185 2.057.920 1.300,398
202,866
339,745
212,313
948,614
1.449,051
2,397,665 1,512,711
Charitable expenditure was £2,397.665 (2021 £1.512.711) of which £268,775 12021 £229,069)
was attributable to restricied funds and £2,128.890 (2021
£1.283.642) was attributable to
unrestricted funds.
21

THE PALACE THEATRE WATFORD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2022
Total Resources Expended (continued)
6.2 Analysls of Support Costs
Charitable Govemance
Activities
costs
Totsl
2022
Total
2021
Wages
Establishment
Administration
Marketing and box office
Depreciation
Bank charges and inteiest
Legal and accountancy fees
Board
Audit
794,775
193,307
100.633.
75.660
270.551
794.775
193.307
1LNJ,633
75.660
270,551
2,651
2.462
192
8,820
866.127
92,033
93.047
35,200
299.173
2.372
446
2,651
2,462
192
8,820
8,888
1.434.926
14,125
1,449,051 1.397,286
Support costs are allocated as shown in the table above and then further apportioned be￿een the
two charitable activities urKlertaken.
Support costs are allocated on a basis consistent with the use of resources.
Tangible Assets
Leasehold
improvement
projects
Plant
Long
and leasehold
Equipment machtnery
property
Total
Cost
At 1 April 2021
Additions
407,808
52,454
728,057
54.114
349,984
7,819.178 9.305,027
105,568
At 31 March 2022
460,262
782,171
349.984
7.819.178 9,411.595
Depreclatlon
At 1 April 2021
Charge for the year
379,988
28,604
651,824
43,486
339,703 3,223.873 4.595.388
4.956
195,479
272,525
At 31 March 2022
408.592
695.310
344,659 3,419,352 4.867,913
Net Book Value
At 31 March 2022
51,670
86,861
5.325 4.399,826 4.543,682
At 31 March 2021
27.820
76.233
10,281
4.595,305 4,709.639
22

THE PALACE THEATRE WATFORD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2022
8. Investment- subsidiary trading companies
2022
2021
Shares in group undertakings:
Cost at 1 April and at 31 March
200
200
The Charitable Company owns 1c￿0￿ of the ordinary share capital of The Palace Theatre Watford
Productions Limited. which is incorporated in England and Wales. The subsidiary company was dormant
during the year.
The Charrtable Company owns 100% of the ordinary share capital of The Palace Theatre Wafford Bar
Limited, which is incorporated in England and Wales. The Charitable Company has 100 % control over
this subsidiary company. This subsidiary company has been domiant from 1 April 2015, but previously
operated to provide working capital finan￿ for the charitable parent Charitable Company by covenanting
distributable profits to The Palace Theatre Watford Limited. The subsidiary company operated catering
facilities at the theatre.
9. Stocks
Stock
7.111
2,564
10. Debtors
Trade deblo
Prepayments and accrued income
8.274
233,526
6.453
211,261
241,800
217,714
11. Creditorn: Amounts falling due within one year
Trade creditors
Amounts due to subsidiary companies
Social securty and other taxes
Other ¢￿dItorS
Accruals and deferred income
58.992
200
16,666
19,053
237,148
26.236
200
14,536
22,357
80,127
332,059
143,456
Included in accruals and deferTed income is deferred income of £115.445 (2021 £19,970) which
comprises a(fvance tscket sales. £19.970 was released to the SOFA in the year to 31 March 2022 and
£115.445 will be released to the SOFA in the year to 31 March 2023.
Included in other creditors are defined contribution pension liabilities of £4.183 (2021 £3.078) all of
which has been funded by unrestricted funds.
23

THE PALACE THEATRE WATFORD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2022
12. Unrestricted Designated Funds
The income funds of the Charitable Company include the following designated funds which have been
sel aside out of unrestriGled funds by the Trustees for specTrfic wr[￿$..
Balance at
1 Aprll Incoming
Outgoing
2021 resources expenditure
Balance at
31 March
2022
Transfers
General Funds
250.792 1,921,529
(2,123.6091
201.577
250,289
Deslgnated Funds
Refurbishment Fund
Future Production & Artistic Projects 223,316
Building and Visitor Experience
161,443
Lighting Desk Depreciation
3,803
Resilience Project Fund
133,255
VAT Project Fund
18.725
(1.123)
6,743
(20.000) 209,649
161,443
6.333
(3.803)
(22.500)
110,755
17,975
(750)
548.408
6.333
{5.676)
(42,500) 506.565
Unrestricted Fund5
799.200 1,927.862
(2.129,285)
159,077
756.854
Balance at
1 Aprll IncomSng
Outgoing
2020 resources expenditure
Balance at
31 March
2021
Transfers
General Funds
250.231
1,493.106
(1.259.387> {233,1591
250,792
Designated Funds
Refurbishment Fund
8,989
Future Production & Artistic Projects 136,316
Building and Visitor Experience
74.443
Facade Renovation
14.357
Lighting Desk Depreaab'on
7.604
Resilience Project Fund
40.255
Bar Refit Depreciation Fund
5.831
VAT Project Fund
19,375
{1.123)
7,866
223,316
161,443
87,000
87,Crf)O
(14,357}
(3,801 }
3,803
133,255
93.000
(5.831)
(650)
18,725
307,170
{25.7621
267.C
548.408
Unrestricted Funds
557.402 1.493.106
(1.285.149)
33,841
799,200
A description of the deggnated funds can be found at note 2.1.
24

THE PALACE THEATRE WATFORD LIMITEO
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2022
13. Restricted Fund
The income funds of the Charitable Company include the foll¢)wing restricted furtds where the donor has
specified the purpose for which the fund is to be used:
Balance at
1 April Incoming
Outgoing
2021 resources expenditure
Balance at
31 March
2022
Transfers
Theatre Refurbishment Fund
4.595.305
CatslystArts Fund
15.045
Arts Council England ca￿ts1 Fund
59.074
New Writing Fund
478
Merchanl of Venice
113.523
Arts Council Cultural Recovery Fund 202.046
Garfeld Weston Foundation
315.000
(195,479)
(284)
{18,496)
4.399,826
12,972
40.578
478
119,553
(50.000)
97,246
1105.577) 209,423
1.711
{3.500)
6.030
{54,800)
5.300.471
7.741
(269.059) (159.077) 4,880,076
Balance at
1 April Incomlng
Outgoing
2020 resources expenditure
Balance at
31 March
2021
Transfers
Theatre Refurbishment Fund
Catalyst Arts Fund
Arts Counal England ca￿la1 FurKI
New Writing Fund
Merchant ofvenice
Arts Counal Cultural Recovery Fund
Gatheld Weston Foundalion
4.790.784
15.763
77,570
478
113.523
(195.479)
(2,786)
(18,496)
4,595,305
15,045
59.074
478
113,523
{33,841) 202.046
315.000
2,068
248,481
315,000
(12,594)
4.998.118
565.549
(229.355)
(33,841) 5,300.471
A description of the restricted funds can be ft)und at note 2.1.
25

THE PALACE THEATRE WATFORD LIMrrED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2022
14. Allocation of Net Assets between Fund5
General Designated Restricted
fund
fund
fund
Total
2022
Tangible f￿ed assets
Inveslmenls
Current assets
Currenl liabililies
96,535
200
485,613
(332,059)
6.743
4.440.404 4,543.682
200
439.672 1,425.107
(332.059)
499.822
Net assels
250,289
506.565 4.880.076 5,646.930
General Designated Restricted
fund
fund
fund
Total
2021
Tangible fixed assets
Investments
Current assets
Current liabilities
43.591
200
350.457
(143,456)
11.669
4.654.379 4,709,639
200
646.092 1,533,288
(143,456>
536.739
Net assets
250.792
548,408
5,300,471 6.099,671
15. Revenue Commitments
The Charitable Company's annual obligation under an operating lease is as follows, analysed according
to the dale of the first review of the lease.
2022
2021
Land and Land and
Buildings Bulldings
Operating lease which expires..
Betsyeen 2 and 5 years
114.500
16. Capital Commitinents
There were contracted capital commitrnents at 31 March 2022 (2021- none).
26

THE PALACE THEATRE WATFORD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2022
17. Related Party Relationships and Transactlons
During the year, the following TnBtees have b&n connected with organisations that have made
payments to the Charitable Cofflpany..
Counrillor Agnieszka Dychton and Councillor Timothy Wlliams - Watford Borough Council - Service
provision fees of £231.957 (2021.. £238,401) and further funding of £106.000 {2021- £ nil).
DeL￿rah LIn￿In- Wamer Bros Intemational- sponsorship £17.500 (2021: £Nil)
27