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 D1￿ctOrS 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 c￿prOduce 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
-'[ITlil￿I{￿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 reser￿8$ 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 Repo￿ng
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 entit￿ment 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 ¢r￿r, 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 othe￿iSe 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).