THE PALACE THEATRE WATFORD LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FPR THE YEAR ENDED 31 MARCH 2024 Company R•gl$tratlon No. 3218.719 (England and Wales) •ADJ2MCMJ• 3011212024 COMPANIES HOUSE
14
THE PALACE THEATRE WATFORD LIMITEO CONTENTS Page Directors and Advisers Report of tha Dlroctors Report ol th• Ind•p•ndent Audltors 9-11 Statement of Financlal Actlvltles 12 Balance Sheet 13 Statement of Cash Flows 14 Notes to the Flnanclal Statements 15-25
THE PALACE THEATRE WATFORD LIMITED DIRECTORS AND ADVISERS Oirectors Chalr John Hunt Marilyn Devonish Agnieszka Dychton ' Felicity Evans (appointed 19 February 2024) Anne Fenton Sarah Golding (appointed 19 February 2024) Howard Groves Mark Lawrence Carol Lingwood Bibi Mauthoor Binita Mehta-Pamiar Giles Rowland (appointed 28 November 2023) Brett Spencer Kenny Spery Patrick Stoddart (resigned on 27 November 2023) Jayne Trolman Governance Comffjittee Governance Committee Governance Committee Governance Committee Governance Cornmittee Directors nominated by Watford Borough Council. SeGret•ry Jamie Arden Registèred Offic• 20 Clarendon Road 'Watford Herts WD17 1JZ Bankern National Westminster Bank plc 72-74 High Slreet Watford Herts WD17 2BQ Auditors PKF Littlejohn LLP 15 Westferry Circus Canary Wharf London E14 4HD Charity Registration number 1056950 Company ReglstratSon number 3218719
THE PALACE THEATRE WATFORD LIMITED REPORT OF THE DIRECTORS The Directors of the Charitable Company present herewith their Annual Report. together with the audited Financial Statements for the year ended 31 March 2024. This report is intended to fulfil the requirements both of Section 234 of the Companies Act 2006 and of the Charities Act 2011.The Director$ have adopted the provisions of the Statement of Recommended Practice 'Accounting and Reporting by Charities. in preparing the annual report and financial statements oflhe charity. Refer•n¢e and Admini3trative Detalls The Palace Theatre Watford Limited is a charitable company limited by guarantee and governed by a Memorandum and Articles of Association dated 17 May 1996. Public Benefit The Trustees confirm that they have had regard to the guldance on public benefit Issued by the Charity Commission when considering the objectives and activrties of the Charitable Company. Board of Dlr•ctorn The Directors and Trustees from 1 April 2023 to the date of the signing of the Financial Statements were as shown on page 2. The D1ctOrS shall have power at any time to appoint any person lo 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 shaFI hold office only until the following Annual General Meeting, and shall Ihen be eligible for re-election, but shall not be taken into account in determining the Directors who are lo retire by rotation at such meeting. Two Directors are nominated by Vvatford Borough Council. (There ar8 specific requirements associated with the rotation of Direclors, the tenns of which are stated in the Memorandum and Articles of Association). Trustees receive ongoing training, including attend8nce at strategic 'working parties. or away days. The Directors and Trustees delegate Ihe day to day running of the organisatlon to.. Brigid Lamiour- Artistic Director and Chlef Executive (until April 2023) Sleve Marmion ~ Chief Executive and Dlrector of Programming {from July 2023) Jamie Arden - Executive Director and Company Secrelary Andrew Phillips - Director of Finance PowerJ of the Company The Directors lake this opportunity to confjrm that under Clause 3 of the Charitable Company's Memorandum of Association, it is empowered to carry out Ihe activities reviewed in the Annual Report including, but not limited to, the beneficial investment of Ihe Charitable Company's funds. Strateglc Oblectives From April 2023 Watford Palace Theatre entered into a new funding agreement with Arts Council England leading into a new three-year agreement secured as an National Portfolio Organisetion from April 2023 - March 2026. marking the organisation moving into delivering their new vision for the Theatre. Watford Palace Thealre (WPT) is Walford's 'Palace of Entertainment, _ providing a great night out. the best shows and something for everyone.
THE PALACE THEATRE WATFORD LIMITED REPORT OF THE DIRECTORS WPT is a successful, inclusive, and ambitious 8ward-winnSng professional theatre and local charity. The organisation receives core funding from Arts Council England as one of their key National Portfolio Organisalions within the 'Three Counties, region of Hertfordshire, Buckinghamshire, and Bedfordshire, and has strong partnership support with Watford Borough Counci5. Our ambition for excellence is supported by our skilled and respected Technical Production department, housed within our beautiful heritage Edwardian 600- seat auditorium and well- resourced technic41 facilities. As well as producing Theatre inside the building, we also make productions and events in Watford that go beyond our borders and extensively cprOduce and tour our shows 'Made in Watford. across the UK 114[ Inio'il',-11--10 L;lfi TtORD THEATRE, FOMEDY: CABAREI DRAÉ, DANt¥' STAND-UP, FILM-; MUSICAL, PANTO, BAPJDSrf., 8ARIGROUjS, MAST CLASSES, , OPCORHAND LOADS MORE -'[ITlilI{itll,T: A GREA,T NIGAT OUT. Allll,;,l!G, IMAG EST..ENDTR SFERS OIIRINGI NATIONAL-'PROF.ILE RKSHOPS EERS LS '* TRAIIIIN Watford Palace Theatre IWPT) exists to entertain, bring joy, empower and inspire within the "Palace of Entertainment". From its roots as 8 Music Hall, built in 1908, and an early pioneer of Theatre in Education, VVPT is an arts charity that celebrates its rich heritage. boldly steps towards Ihe future to stage shows and projects that excite, ernpower and entertain Indoors, outdoors and online. WPT 1$ the region's cultural powerhouse of inventive and inclusive creativity for all generations.
THE PALACE THEATRE WATFORD LIMITED REPORT OF THE DIRECTORS Watford to the World {Produced I Co-Produced events) Included: The Merchant Ofvenice 1936, by Wiliam Shakespeare. with Trafalgar Studios. RSC and HOME Manchester Cinderella, by Teresa Burns , The Lost Spells, with Goblin Theatre, Polka Theatr8 and Th8atr8 by The Lake Happy Birthday Sunita, by RIFCO Theatre in association with Watford Palace Theatre The Worfd to Watford (Received workl included: Curious Investigators, by One Tenth Human Twirlywoos 2023, by MEI Theatrical Ltd Dinosaur Adventure Live. by Dinosaur Adventure. Live Ltd (Red Entertainment) l Believe In Unicorns 2023, by Danyah Miller Storyteller Ltd There's A Monster In Your Show, by MEI Theatrical Ltd Ministry of Science: Science Saves The World, by Mark Thompson Productions LimÉted The Bubble Show, Eran Backler. by The Highland Joker Fiieman Sam.. The Great Camping Adventure. by Mark Thompson Productions Limited Wifi Wars, by WIFI Wars Ltd Frankenstein, by Imitating the Dog Pop Princesses. by Sweeney Entertainment Ltd Bring Your Own Baby, by Bring Your Own Baby Comedy Rave On.. The British Invasion, by Bluejays Productions Ltd Dreamcoat Stars, by Joe Show Lld Lucy Porter- Wake Up Call, by Bound and Gagged Comedy Disco Inferno, by Veritas Entertainment Ltd. Dara O'Briain.' So...Where Were We? By Off the Kerb Productions Ltd Walk Like a Man, by Veritas Entertainment Ltd. Jen Brisler.. The Optimist, by Little Wander Ltd Rush.. A Joyous Jamaican Journey, by Rush Theatre Company Susie Dent.. The Secret Lives of Words. by No Third Enlertainments LLD The bAakings of a Murderer, by Entertainers Show Providers Ltd. ELO Again, by MRC Enterprises Ltd Queenz with Balls, by David Michael Productions Ltd Kizza'.Jiggy Yak Figgy Yak {Watford Fringe), by 8 Summers Neil Ben (Watford Fringe), by Neil Bèn Axel Blake.. In Style, by GAG REFLEX LTD Ballet Black.. Pioneers, by Ballet Black Limited Lee Mead.. The Best of Me, by RED Entertainment Uncanny.. l Know What I Saw, by Tilted Sessions Ltd Back Into Hell.. A Tribute to Meat Loaf, by MRC Enterprises Ltd Bridget Christie: Who Am I, by Little Wander Ltd The Ronnie Scott's Story, by Ronnie Scott's Jazz Club (clo JBA Concerts, acting as agent) Chris Mccausland.. Yonksl By Bound and Gagged Comedy Tom Davis: Underdog, by Off the Kerb ProduGtions Ltd Sindu Vee; Alphabet, by HahaHouse Ltd clo Chambers Touring Ltd An Evening of Burlesque 2024, by Entertainers Show Providers Ltd Swinging at the Cotton Club, by Swinging at the Cotton Club (clo agent: JBA Concerts) Luisa Omielan.. Bitter. by Big Love Productions Illegal Eagles, by Phil Aldridge Productions Ltd Damian Lewis 2024, by Neil 0'8rien Entertainment Zog and The Flying Doctors, by Freckle Productions Paul Young.. Behind the Lens, by A Way Wth Media Productions Ltd Comedy Club 4 Kids, by Comedy Club for Kids
THE PALACE THEATRE WATFORD LIMITED REPORT OF THE DIRECTORS Tak• Part, Communlty*. and Bu8lne88 actlvitl•8 included.. Mission ImpossiBALL Celebrate Diwali 2023 1 Rangdhvani Chinese New Year 2024 Palace Youth Theatre Youth Advisory 808rd Young Orbital l Hatfield Outreach Groups Storytelling Projects Mockingbird Youth Theatre Merchant of Venice - Online Education Programme Palace Musical Theatre Palace Technical Crew Electric Umbrella - No Such Thing As Normal, by Electric Umberella Watft)rd Jazz Junction Gala Concert, by Watford Jazz Junclion Wandershow- Ma.ng Memories. by WANDERSHOW Purcell School of Muslc, by Purcell School of Music SHIAMAK Dance School- Bollywood Forever, by Shiamak Dance Ltd Daniel Martinez Flamenco - The Art of Believlng, by Daniel Martinez Flamenco Company Ltd NHS All Stars l Herts NHS Trust Kinky Boots, by Cassio Operatic Society Shiamak Dance Ltd. Bollywood Winter Funk, by Shimak Dance Ltd BT Business Advert Film and Location, by Somesuch & Company Llmlted Camp Productions - by Music Video, Camp Productions Cannen, by Abbots Langley G & S Society TJX Hire - Comic Relief 2024, by TJX Theatre School Hire l Beth Jacob Foundation, Topstitch OTHER ACHIEVEMENTS IN THE YEAR: Establishing a busier theatre including Front of House and bar are8S Outside of show times Creating a higher profile across creative industries and locally Front of house 13 rèvitalised and open again Our media coverage and followings on socials are at thelr highest since The Merchant of Venice Take Part offer redesigned and launched KPIS have been eslablished New CCTV installed Restoration levy introduced (circa £30k genorated per artnum) Secured VVBC funding for the next three years (indicatlve) Secured decarbonisation grant for plant and HVAC system replacement The actlvitles described above demonstrate that public benefit is belng provided by the Charity.
THE PALACE THEATRE WATFORD LIMITED REPORT OF THE DIRECTORS F5nanclal Rev5ew The Statement of Financial Activities shows a deficit of £144,43912023- deficit of £295.215) for the financial year. This comprises a surplus before transfers on unrestricted funds of£58,764 <2023 - deficit of £82,575) and a deficit on restricted funds of £203.203 (2023 - deficit of £212,640). The Directors note that this deficit is declared after recognising depreciation charges of £263,397 (being £38,420 applied lo unrestricted funds, and £224,977 applied to restricted funds). Financial Position in the Context of Ongoing Commilnyents and Obligations The 88lance Sheet 8hows net asset8 of £5,197,276 at 31 March 2024 {2023 - £5,341,715). As 81 the sarn8 date, Revenue subsidy amounting to £805.118 and £231,957 for the following 12-month period has been confirmed by Watford Borough Council and Arts Council England respectively. An agreed budget for the year to 31 March 2025 has been approved by the Board of Dlrectors. Subsidlary Undertaklng8 The Charitable Company's wholly owned subsidiaries, The Palace Theatre Walford Bar Limited and The Palace Theatre Watford Productions Limited. remained dormant throughout the year. Invo8tm•nt Pollcy The Charitable Company holds surplus cash on a deposit account to receive a rate of interest commensurate with an appropriate level of securlty, whilst not restricting access for operational purposes or payment of box office to touring companles and hires. Where sufficient surplus cash remains available 8ft8r due consideration for longer term liabililies. the Charitable Company utilises other relatively low rlsk financial products (such as Fixed Rate Bonds) to maximise income. Parent Charitable Company'j Reserves Pollcy The Trustees have reviewed the Charitable Company's ne8ds for reser8$ in line with the guidance issued by the Charity Commission and have agreed the following reserves policy: the target level of unrestricted reserves is based on 100/0 of typical box office income and six weeks running costs. At the last calculation, the target is to hold free reserves of £250,000. The unrestricted general reserve (see page 13) stood at £250,312 on 31 March 2024 {2023 - £250,666). This policy Is reviewed annually by the Trustees. R18k A8se8sment The Trustees have examined and prioritised the most critlcal risks to Ihe Charitable Company ahd. as a result. are confident thal they have in place sufficient accountability and focussed action to protect the objectives of the Charitable Company. A risk register has been produced and is reviewed by the Le8dership Team and updated by the Executive Director every two months for consideration by the Board. The major risk identified concerns the funding of the Charitable Company. Arts Council England and Watford Borough touncil have the right under Service Level Agreements to withdraw funding andlor request repayment of funds should those funds b8 applied to purposes other than the stated charitable objectives. The Charitable Company has put in place a range of mitigatory measures. The Board op8rates a separate governance committee, with its own Chair, to maintain a transparent and objective overview.
THE PALACE THEATRE WATFORD LIMITED REPORT OF THE DIRECTORS statement of Trustses, Responsibilities The Trustees (who are also Directors of The Palace Theatre Watford for the purposes of company law) are responsible for preparing the Trustees, Report and the Financial Statements in accordan with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company and Charity law requires the Trustees to prepare Financial Statements for each financial year, Under that law the Trustees have elected to prepare the Financial Statements in accordance with the Charities, Statement 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 unless they are satisfied that they give 8 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 (and the Group} for Ihat period. In preparing these Financial Ststements, the Truslees are required to.. select suitable accounting policies and then apply them consistently. observe the methtxls and principles of the Charities, SORP; make judgements and estimates that are reasonable and prudent,. state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the Financial Statements,. and prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any lime the financial position of the Charitable Company and enable them lo ensure thal the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company (and the Group) and hence for taking reasonable steps for the prevention and detection of fraud 8nd other irregularitieg. In accordance with company law, as the Company's Directors, we confirm that.. $0 far as we are aware, there is no relevant audit information of which the Company'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 awa of any relevant audit information and to establish that the Company's auditors are aware of that information. Audltorn PKF Littlejohn LLP are appointed as auditorsto the Charilable Company and have indicated theirwillingness to continue in office. This report was by order of the Board of Diredors and stgned on its behalf by: John Hunt Chair Date 25 262f
THE PALACE THEATRE WATFORD LIMITED INDEPENDENT AUDITORS, REPORT Independènt Auditors. Report to the Member8 of The Palace Theatre Watford Limited Opinion We have audited the financial statements of The Palace Thealre Watford Limlted {the 'charitable company,) for the year ended 31 March 2024 which MpriSe the Statement of Financial Activities. the Balance Sheet, the Statement of Cashflows and noles to the financial statements. including significanl accounting policies. The financial reporting frafflework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Repong 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 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended,. have been properly prepared in accordance with United Klngdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audft In accordance wilh Inlernatlonal Slandards 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 slatemants section of our report. We are independent of the charitable company in accordance wlth 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 oblained is sufficient and appropriate to provide a basi8 for out opinion. Conclusiong relating to going concern In audlting the financial statements, we have concluded that the Trustees, use oflhe going concern basi8 of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any materi81 uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial stalements are authorised for issue. Our responsibilities and the responsibililies of Ihe Trustees with respect to going concern are described in the relevant sections of this report. Othèr informatlon The other infomiation comprises the information included in the Annual Report of the Trustees, other than the financial statements and our auditor's report thereon. The Truslees are responsible for the olher information conlained within the Annual Report of the Trustees. Our opinion on the financlal 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 infofmation is mateTiaSly inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materk311y 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 Dn the work we have perfornied. 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.
THE PALACE THEATRE WATFORD LIMITED INDEPENDENT AUDITORS, REPORT Oplnlon8 on other matter8 prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: the infomation given in the Annual Report of the Trustees (which includes the Directors, report) preparecl for the purposes of company law. for the financial year foi which the financial ststements are prepared is consistent with the financial statements,. and the Annual Report of the Trustees (which includes the Directors, report) has been prepared in accordance with applicable legal requirements. Matters on whlch we are required to report by exception In1he light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Annual Report of the Trustees. We have nothing to feport 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 returns adequate for our audit have not been reGeived from branches not vlslted by u8: or the financial statements are not in agreernenl with the accounting records and retums: or certain disclosures of Trustees, remuneration specified by law are not made- or we have not received all the inft)rmation and explanations we require for our audit. Responslbllltles of Tru$te¢8 As explained more fully in the Trustees, responsibilitieB Statement, the Trusteeg (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 th8 Trustees determine is necessary to enable the preparation of financial statements that are Ire8 from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the chaTltable company's ability to continue as 8 going concern, disclosing, as applicable, matters related to going concern and using the going concern basls ofaccounting unless the Trustees either intend to liquidate the charitable company or to cease operalions. or have no realistic alternative but to do so. Audltor's respon8lbllltles lor the audit of the financlal statement8 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 8ssurance but is not a guarantee that an audit conducted Sn accordance With ISAS (UK) will always delect a material misstalement when it exists. Misstatements can arise from fraud or error and are considered material If, individually or in the aggregste, they could reasonably be expected to Influen the economic decisions of users taken on Ihe basis of these financial statemenls. 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 respeci of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We obtained an understanding of the charitable company and the sector in which it operates to identify laws and regulations that could reasonably be expected to have a direct effect on Ihe financial statements. We obtained our understanding in Ihis regard through discussions with management, sector research and application of cumulative audit knowledge and experience. 10
THE PALACE THEATRE WATFORD LIMITED INDEPENDENT AUDITORS, REPORT We determined the principal laws and regulations relevant to the charitable company in this regard to be those arising from the Companies Act 2006, Charities Act 2011, Charities (Accounts and Reports) Regulations 2008, Financial Reporting Standard 102 and the Charilies SORP. We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the charity wilh those laws and gUlatiOnS. These procedures included. but were not limited to enquiries of Trustees. review of minutes and review of18gal and regulatory correspondence. We also id8ntified the risks of material misstatemenl of the financial ststements due to fraud. We considered. in addition to the non-rebuttable presumption ofa risk of fraud arising from management override of controls, that there was a potential for management bias in the recognition of revenue. We addressed this through reviewing revenue in the year for evidence of entitment and at the year end to ensure accounted for in thé eorrecl period. As in all of our audits. we addressed Ihe risk of fraud arising from management override of controls by performing audit procedures which included but were not limited to.. the testing of Journals; reviewing accounting estimates for evidence of blas,. and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. 8ecause 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 feflected 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 occuiring due to fraud rather than ¢rr, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description ofour responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website 81.. www.frc,org.ukJauditorsresponsibilities. This description forms part of our audltor's report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance wilh Chapter 3 of Part 16 of the Companies Act 2006. Our 8udit work h88 been undertaken so that we might state to the charitable company's members those matters we are requlred to state to them In an auditols report and for no other purpose. To the fullest extent permitted by law, we do nol accepl or assume responsibility to anyone, other than the charitable company and the charitable company's members as a body, for our audit work, for this report. or for the oplnions we have formed. Alastalr Duke (Senlor Statutory Audltor) 15 Westferry Circus For and on behalf of PKF Littlejohn LLP Cgnary Vvharf statutory Auditor London E14 4HD Date: 17 December 2024 11
THE PALACE THEATRE WATFORD LIMITED STATENIENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2024 2024 2024 Unregtrlcted Restricted funds funds 2024 Total funds 2023 Total funds Incoming Resources Grants receivable and fees Oonations and gifts Bank interest Ancillary trading activities 1,037,075 16,899 20,489 138,000 10,000 1,047.075 1,286 18,185 20.489 138,000 1.087,075 40,631 4,796 1.13.630 1,212,463 11,286 1,223.749 1,246.132 Charitable Activities Production Participalion Other 1,048,434 20,723 188,675 1,048.434 20,723 199.544 1,026,087 18,724 237,877 10,869 1,257,832 10,869 1,268,701 1,282,688 Totsl Income 2,470,295 22,155 2,492,450 2,528.820 Expendlture on: Raising funds Charitable Activities Production Participatlon 381 381 2,899 2,316.452 95,079 215,978 2,532,430 8,999 104,078 2,544,498 276,638 Total Expenditur• 2,411,531 225,358 2,636,889 2,824,035 Net Expenditure 58,764 (203,203) (144,439) (295.215) (15,850) Transfen8 between funds 13 15,850 Total funds brought fonNard 880.479 4,461,236 5.341,715 5,636,930 Totsl fund8 carrled forward 955,093 4,242,183 5,197,276 5.341.715 All income and expenditure derives from continuing activities. Tbe statement of financlal actlvlties includes all gains and losses reco9nised duilng the year. The Accounting Policies and Notes on pages 15 to 25 form part of these Financial Statements. 12
THE PALACE THEATRE WATFORD LIMITED (Company Registration number 3218719 BALANCE SHEET YEAR ENDED 31 MARCH 2024 2024 2023 Note Fixed Assets Tangible assets Investments 4,169,622 200 4,366,835 200 4,169,822 4,367,035 Current A880ts Stocks Debtors Cash at bank and in hand Short term investments 8,114 609,154 586,413 300,000 5,190 454.535 796.681 7S,677 10 1,501,681 1.332.083 Credltor8: amounts falllng due within one year (474.227) (357.403) Net Current A58ets 1.027.454 974,680 Nèt A•$ets 5,197,276 5,341,715 Incomo Funds Restricted Funds 13 4,242,183 4,461,236 Unrestrlcted Fund8 General Desi9nated 12 250,312 704,781 250,666 629,813 Total Unrestrlcted Fund8 955.093 880.479 'Total Charlty Funds 5,197,276 5,341,715 Approv mber 2024 and signed on its behalf by.. NoK6taety Lg %Jr ohn Hunt Chair The Accounting Policies and Notes on pages 1510 25 form part of these Flnancial Statements. 13
THE PALACE THEATRE WATFORD LIMITED STATEMENT OF CASHFLOWS YEAR ENDED 31 MARCH 2024 2024 2023 Cash flow provided from operating activities 59,750 (215,348) Cash flow from investlng activlties Payments to acquire tangible. fixed assetg Interest receivable (66,184) 20,489 {9.3,286) 4,796 Net cagh flow (used in) investing activities (45.695) (88,490> Change In cash and ca8h equlval•nts In the year 14,055 (303,838) Cash and ¢a8h equivalents at start of year 872,358 1,176,196 Ca8h and cash ?qulvalents at end of year 886,413 872,358 ReGonGiliation of net expendlture to net cash Ilow Irom operating activltles Net expenditure for year Interest receivable Depreciation of tangible fixed assets (Increase)IDecrease In stocks Increase in debtors Increase in creditors <144,4391 (295,215) (20,489) (4.798) 263,397 270,133 (924) 1,921 (.154,619) (212,735) 116.824 25.344 Net ca8h flow provlded from operatlng actlvltle• 59,750 (215,348) Cash and cash equlvalents con318ts of: Cash at bank and in hand Short term investrnents 588,413 300,000 796,681 75,677 Cash and Gash equivalents 886,413 872,358 The Ac.counting Policie8 and Notes on pages 1 S to 25 fomi part of these Flnancial Statements. 14
THE PALACE THEATRE WATFORO LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 Genoral information and ba$1$ of preparation The Palace The8tre Watford Limited is a company limited by guarantee in the United Kingdom. In the eventof the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 2 of these financial statements. The nature of the charity's operations and principal activities ar8 set out in the Report of the Trustees. The charity constilutes a public benefil entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance wrth the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011. the Companies Act 2006 and UK Generally Accepted Practice 88 it applies from 1 January 2019. The financial statements are prepared on a going concem basis under the hislorical cost convention, modified to include certain items at fair value. The financial statemenls are prepared in sterling which is the functional currency of the charity. The Signlficant accounting policies applied in the preparation of these financial ststements are set out below. These policies have been consistently applied to all years presented unless otheiSe slated. Golng Concern It is the opinion of the Director3lTrustees that the use of the going Concern basi3 of accounting is appropriate because: Ihere are no material uncertainties relating to events or conditions that may cast significant doubt 8bout the ability of the Charitable Company to continue as a going concern., there is reasonable expectation that the Charitable Company has adequale resources to continue in operational exislence for the foreseeable future. Accountlng Polici•• 2.1 Fund8 Unrestricted Designated Fund8 Refurbishment Deprecialion Fund - costs relaled to Small g¢ale repairs and n0vations, and the associated depreciation. Future Production and Artistlc projects - to hold grant and other monles for use on future production8 and artistic projects. Building and visitor experience to hold grant and other monies to covar building contingency expenses and for physical improvgment$ to enhance the visitor experience. Lighting Desk Depreciation Fund the depreciation cost of the lightin9 desk acquired in November 2012. Resilience Projects Fund- to hold gr8nt and other moniesto fund one-off midllong term impact projects related to the Charitable. Company's strategic resilience. Bar Refit Depreciation Fund - costs related to the renovation of the Bar I Cafe areas, and the associated depreciation VAT Project Fund - fees and other expenses in relation to a review of the Theatre's historic VAT treatment, and subsequent claim for a refund from HMRC 15
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 Accounting Policies {contlnued) Restricted Funds Theatre refurbishment fund - funds receivedlreceivable specifically for the cost of the refurbishment of the Theatre. Catalyst Arts Fund funds receivedlreceivable specifically in relation to the Arts Council England's Catalyst Arts Capacity building and match funding scheme, to support organisations in building their fundraising capacity and capability over a three-year period. ACE Capital Fund - funding towards capital works to enhance rehearsal facilrties, to improve energy efficiency and lo replace essential specialist equipment, New Writing Fund - funding towafds investrnent in writing new work. Merchant of Venice - donations received to support our future production of Shakespeare's The Merchant of Venice (a creative response to anti-semilism in Britain, set in the London of the 1930s). Arts Council Cultural Recovery Fund - the government's Culture Racovery Fund, 8UPPOrting cultural organisations through the impact of lh8 Covid-19 pandemic. Garfield Weston Foundation - grant received form the Weston Culture Fund to support our Take Part youth and community programrnes. Amounts are drawn down against the fund and transferred to the general fund when expenditure is incurred. Restoration Levy Fund monies charged per 8ox Office trans8Ction, specifically towards tho refurbishment, improvement, and upkeep of the theatre. Herts Foundation Fund- grant received from the Hertfordshiie Community Foundation to support the WPT and OneYMCA Partnership Youth Theatres project. Fund Tran¥fer8 Transfers are made between funds as and when the Trustees deem them necessary, within the limits of any restrictions that are in place. 2.2 Incoming Resources Voluntary income includlng donations, gifts and grants that provide core funding or are of a general nature are recognised where there is entitlement. probability of receipt and the amount can be measured with sufficient reliability. Such income is only deferred where the donor has specified that the grant or donation must be used in a future accounting period. Investment income is recognised on a receivable basis, Income from charilable activitles includes.. income derived from theatrical productions which is accounted for in the period in which the production closes; grant income to support education and youth activities which recognised where there Is entitlement, certainty of receipt and the amount can be reliably measured. 2.3 Resources Expended Expenditure is recognised when a liability is incurred. Charitable activities include expenditure associated with the stsging of theatrical products'ons and participation activities. These include both the direct costs and support costs relating to these activities. Expenditure on materials for set, props and costumes are accounted for in the Consolidated Statement of Financial Activities (SOFA) of the period of the production. None of this expenditure is ¢apilalised, as sets are either disposed of, or sold on within the same financial year, or very shortly after the financial year end. Support costs represent central function costs, governance costs and overheads and have been allocated between Ihe activities of productions and participation using an apportionment percentage calculated by comparing the direct costs attributable to each of those categories in the year. 16
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 AGcountlng Policies (contlnued) 2.4 Financial Instruments Basic financial assets, including debtors, cash at bank and in hand, and short term investments, are initially recognised at transaction price. unless the arrangement constitutes a financing transaction. where the transaction is measured at the present value of the future receipts discounled at a market rate of interest. Other financial assets are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity inslruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. Financlal assets are derecognised when (a) the contractual rlghts to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing addilional restrictions. 2.4 Tanglble Flxèd 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 to its esllrnated residual value evenly over its expected useful life, as follows.. Plant. equipment and machln8ry Information technology Leasehold improvements Long leasehold property 1 OV. 250/0 Straight line 1 OYO - 33 % straight line 2.60/0 200/0 Straight line 2.5Ph straighl line 2.5 Stock Stock is v81ued at the lower of GO8t and net realisable value, after making due allowance for obsolete or slow moving items. 2.6 Lea8ed 488ets and obligatlons All operating lease rentals are charged to the SOFA on a slraight line basis over the lease term. 2.7 Now Writlng Arrangements These are advance costs Incurred for possible future shows where the Charitable Company commissions a writer to work on a production which may or may not eventually be produced. Thej costs are written off to the SOFA in the year in which they are incurred. 2.8 Pensions The Charitable Company operates a defined Contributlon pension Scheme and the pension charge represents the amounts payable by the Charitable Company to the fund in respect of the year. 2.9 Taxation The Charitable Company Is exempt from Corporation Tax as all of Its income is charitable and is applied for charitable purposes. The Charitable Company is registered for Value Added Tax (VAT): irrecoverable VAT (where applicable) is included in the cost of those items to which it relates.
Net Expenditure Note 2024 2023 This is stated after charging: Auditors, remuneration Depreciation Operating leases - land and buildings. 9.389 263,397 27.000 9,383 270,133 27.000 Incoming Resources 2024 2023 Grants Receivable and Fees Unrestricted income from.. Arts Council England - grant Service provision fees - Watford Borough Council Support grant - Watford Borough Council 805,118 231,957 805,118 231.957 50,000 Restricted income from: Hertfordshire Foundation - grant 10,000 1,047,075 1.087,075 Incoming Resources 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 383,168 73,272 441,958 71,629 18,412 52,431 7,564 563,458 42,264 175,052 175,681 16.025 51,839 1,768 1,048,434 1.026,087 Partlcipalion.. Educational activities 20,723 18.724 20,723 18,724 Other.. Tax relief Sundry income 162,421 37,123 191,433 48,444 199,544 237,877 Total income from charitable activities 1,268,701 1.282,688 Income frorn grants receivable and fees was £1.047,075 (2023 £1,087,075) of which £10,000 (2023 £Nil) was attributable lo restricted funds and £1,037,075 (2023- £1,087.075) was attributabl8 to unrestricted lunds. Income trom charitable activities was £1,268,701 (2023 - £1,282,688> of which £10,869 (2023 - £Ni5) was attributable to restricted funds and £1 ,257,832 {2023 - £1.282.688) was attributable to unrestricted funds.
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 Employee Information - Stsff Costs 2024 2023 Eslablishment salaries Establishment social security costs Establishment pension costs Non-establishment salaries Non-establishment social security costs Non-establishmenl pension costs 815,153 77,436 18,800 278,851 6,337 1,810 797,822 82,167 17,186 289,654 4.255 3,523 1.196,387 1,194,607 The number of employees during the period who e8Tned over £60,000 in the year was as follows: Number of employees 2024 2023 £60.001- £70,000 £70.001- £80,000 The total amount of employee benefits received by key management personnel, considered lo be the Executive Team, durin9 the year was £185,630 {2023 . £183,219). Total redundancy I termination payments of £13,704 (2023 - £nil) were made to one individual (2023 none). No payments were outst8ndlng at the year end. Avarage Monthly Number of Employees durlng the Year Part-tlme Casuallseasonal 2024 2023 Establishment Non Establishmant 26 26 26 24 Trangactions with Dlrectors The Directors of the Charitable Company received no remuneratlon or reimbursement of expenses in the year (2023- £nil). Total Resources Expended 6.1 Analysls of Charitable Expendlture Direct Costs Support costs Total 2024 Total 2023 Production Participation 946.084 37,980 1,586.346 66,098 2,532,430 2.544,498 104.078 276,638 984,064 1,652,444 2,636,508 2,821,136 19
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 Total Resources Expendèd {continued) Charitable expenditure was £2,636,508 (2023- £2,821,136) ofwhich £224,977 (2023- £237,198) w89 attributable to restricted funds and £2,411,531 (2023 - £2,583,938) was attributable to unrestricted funds. 6.2 Analysi¥ of Support Costs Charitable Governance Activities osts Total 2024 Total 2023 Wages Establishment Administration Marketing and box office Depreciation Bank charges and interest Legal and accountancy faes Board Audit 922.434 235,232 132.954 84.291 263,397 3.790 922,434 235,232 132.954 84,291 263,397 3,790 813 144 9,389 826.962 242,754 120,620 79.783 268,826 4.629 684 133 9,383 813 144 9,389 1,642,098 10,346 1,652,444 1,553,754 Support costs are allocated as shown in the table above and then further apportioned between the two charitable activits'es undertaken. Support costs are allocated on a basis consistent with the use of resources. Tanglble A890ts Loalohold Improvement projects Plant Long and leasehold Equ5pment machinery property Total Co¥t At 1 Aprll 2023 Additions 533,307 4,919 802,412 61,265 349,984 7,819,178 9,504,881 66,184 At 31 March 2024 538.226 863,677 349,984 7.819,178 9,571,065 Depreciation At 1 April 2023 Charge for the year 439.179 25.933 736,918 40.051 347,118 1,934 3,614,831 5,138,046 195,479 263.397 At 31 March 2024 465,112 776.969 349,052 3,810,310 5,401.443 20
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 7. Tangible Assets (continued) Net Book Value At 31 March 2024 73,114 86,708 932 4,008,868 4,169.622 At 31 March 2023 94,128 65,494 2,866 4.204,347 4,368,835 8. Investment- 8ubsldiary tradlng companles 2024 2023 Shares in group undertaklng8: Cost at l April and at 31 March 200 200 The Charltable Company owns 100Qh of the ordlnary share capilal of The Palace Theatre Wafford Productions Limited, which is incorporated in England and Wales. The Subsidiary company was dormant during the year. The Charltable Company owns 1000/0 of th8 ordinary share capital of The Palace Theatre Watford Bar Limited. which is incorporaled in England and Wales. The Charitable Company has 100 % control over this subsiOiary company. This subsidiary company has been dormant from 1 April 2015, but previously operated to provide working capital finance for the charitable parent Charltable Company by covenanting distributable profits to The Palace Theatre Watford Limited. The subsidiary company operated catering facilities at the theatre. 9. Stock8 Stocks 6,114 5,190 10. Debtorn Trade debtors Prepayments and accrued income 38,592 570,562 130,279 324,258 609,154 454,535 11. Credltors: Amounts falllng due wlthln one year Trade creditors Amounts due to subsidiary companies Social security and other taxes Other creditors Accruals and deferred income 43,520 200 25,729 55,541 349,237 61,198 200 41,827 16,843 237,335 474,227 357,403 21
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 11. Creditors: Amounts falling due wlthin one year (continued) Included in accwals and deferred income is deferred income of £225,791 (2023 £168,006) which comprises advance ticket sales. £168,008 was released to the SOFA in the year to 31 March 2024 and £225,791 will be released to the SOFA in the year to 31 March 2025. Included In other creditors are defined contribution pension liabilitles of £3.941 (2023 £4,994) all of which has been funded by unrestrlcted funds. 12. Unrestricted De8ignated Funds The income funds of the Charitable Company include the following designated funds which have been set aside out of unrestricted funds by the Trustees for specific Purposes: Balance at 1 April Incoming Outgoing 2023 resources expenditure Balance 4t 31 March 2024 Transfers General Fund• 250.666 2,449,352 (2,405,056) (44.650) 250,312 Do¥ignated Fund8 Refurbishment Fund 5,620 Future Production & Artistrc Projects 169.649 Building and Visitor Experience 245,814 Resilience Project Fund 190,755 VAT Project Fund 17,975 (1,126) 4,494 190,592 271.685 220,755 17,255 20,943 (4,629) 30.500 30.000 (720) 629,813 20,943 (6,475) 60,500 704,781 Unrestricted Funds 880,479 2,470,295 (2,411.531> 15,850 955,093 Balance at 1 April Incoming Outgolng 2022 resources •xpenditure Balance at 31 March 2023 Transfers General Fund8 250,289 2,503,964 (2,580.787) 77.200 250,666 Desfjgnated Funds Refurbishment Fund 6,743 Future Production & Artistic Projects 209,649 Building and Visilor Experience 161,443 Resilience Project Fund 110,755 VAT Project Fund 17,975 (1,123) 5.620 169,649 245,814 190,755 17,975 (40.000) 89,000 80,000 14,629) 506,565 (5,752) 129,000 629,813 Unrestricted Funds 756,854 2,503,964 (2,486,539) 206,200 880,479 22
THE PALACE THEATRE WATFORD LIMITED NOTESTO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 12. Unrestricted Designated Funds (continued) A description of the designaled funds can be found at note 2.1. 13. Restricted Fund The income funds of the Charitable Company include the following restricted funds where the donor has specified the purpose for which the fund is to be used.. Balanc• at 1 April Incoming Outgoing 2023 resources expenditure BalanGo at 31 March 2024 Transfers Theatre Refurbishment Fund 4,204.347 Catalyst Arts Fund 10,780 Arts Councll England Cap6tal Fund 22,082 New Writing Fund 478 Arts Council Cultural Recovery Fund 83,764 Garfield Weston Foundation 139,785 Restoration Levy Fund Herts Foundation Fund (195,481) (379) (13,501) 4,008,866 8.387 8.581 478 73,119 121,883 10.869 10,000 1,286 (3,300> (10,6451 (5,352) (12,550) 10.869 10.000 4,461,236 22.155 (225,358) (15,850) 4.242.183 Balance at 1 Aprll Incomlng Outgolng 2022 resources expendlture Balance at 31 March 2023 Translers Theatre Refurbishment Fund 4.399,826 Catalyst Arts Fund 12,972 Arts Council England Capital Fund 40,578 New Writing Fund 478 Merchant of Venice 119,553 Arts Council Cultural Recovery Fund 97,246 Garfield Weston Foundation 209,423 (195,479) (298) (18,496) 4,204,347 10,780 22,082 478 1.608 {3,500) 23,250 (4,389) (138,414) (13,482) (5,352) 83.764 139,785 {64,286) 4,880,076 24.856 237.496 (206,200) 4,461,236 A description of the restricted funds can be found at nole 2.1. 23
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 14. Allocation of Net Assets between Funds Genera'l Deslgnated Restricted fund fund fund Total 2024 Tangible fixed assets Investrnents Current assets Current liabilities 102,118 200 622,221 (474,227) 66,052 4,001,452 4.169.622 200 240.731 1,501,681 (474,227) 638,729 Nel assets 250,312 704,781 4,242,183 5,197.276 General Designated Restricted fund fund fund Totsl 2023 Tangible fixed assets Investments Current assets Current liabilities 134,786 200 473,083 (357,403) 5,820 4,226,429 4,366,835 200 234,807 1,332,083 (357,403) 824,193 Noi assets 250,289 506,565 . 4,880,076 5,646,930 15. Revenue Commitments The Charitable Company's annual obllgatlon under an oper8tlng lease is Ss follows, analysed accordin9 to the dale oflhe first review of th8 lease. 2024 2023 Land and Land and Buildings 8uilding5 Operatlng lease whlch expires.. .Between 2 and 5 years 87,500 16. Capital Commitments There wère no. contracted capltal commitments at 31 March 2024 (2023 - none), 24
THE PALACE THEATRE WATFORD LIMITED NOTESTO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 17.,Relatod Party Relationships and Tran8actlon8 During the year, the following Trustees have been connected with organisations that have made payments to the.Charitable'Company'. Councillor Agnieszka Dychton and Councillor Marilyn Devonish Watford Borough Council- Ser4ice. provision fees of £231.957 {2023- £231.,957) and further funding of £nil (2023 - £50.000).