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2020-12-31-accounts

MEDICINEMA

(A COMPANY LIMITED BY GUARANTEE)

Trustees Report and Financial Statements For the year ended 31 December 2020

Charity registration no 1058197 (England and Wales) Charity registration no SC039704 (Scotland) Company registration no 3210199 (England and Wales)

TABLE OF CONTENTS

MESSAGE FROM THE CEO..............................................................................P3 REFERENCE AND ADMINISTRATIVE DETAILS..................................................P6 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020........P7 FINANCIAL REVIEW......................................................................................P24 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF MEDICINEMA....P30 STATEMENT OF FINANCIAL ACTIVITES.........................................................P34 BALANCE SHEET...........................................................................................P35 STATEMENT OF CASH FLOWS......................................................................P36 NOTES TO THE FINANCIAL STATEMENTS.....................................................P37

Message from the CEO

Dear Reader

I do hope that you and your families have been able to stay safe and well this past year, it has been tough for everyone. At the time of submitting these accounts, COVID-19 vaccinations across the UK are being rolled out at incredible speed, and the numbers of new infections are slowly decreasing. At last we can now start to see some light on the horizon.

At the beginning of last year however, we had no idea how devastating the impact of COVID-19 would be. 2020 was defined by growing numbers of deaths, lockdowns and enormous pressure on an already overstretched NHS. We can all agree that healthcare workers have been nothing less than heroic.

The impact on non-COVID NHS hospital patients was quickly and sharply felt. With strict visitor restrictions swiftly put in place, those patients in hospital were left feeling more isolated than ever with no family or friends allowed to visit – and only limited family for children. We’ve all had a taste of the distress that this isolation can cause us in our own homes, away from so many of the people we love, but at least with our personal home comforts and familiarity in our settings.

When we had to close the doors to our cinemas in March 2020, we certainly didn’t think that they would be closed for long. Even with this in mind, our small head office team were able to pivot incredibly quickly to set up a new service in order to bring the benefits of film to people who needed it the most. This required a fast-track bringing together of a new partnership with Hospedia, the leading supplier of hospital bedside screens, and Non-Theatrical film distributors Filmbankmedia, resulting in a free MediCinema film channel for patients on their bedside screens. I also must thank our film distributor partners also for allowing us to screen their films.

This service has been more successful than we could possibly have imagined, with over 11,000 patients watching more than 31,000 hours of films across the year.

In addition, we designed ten separate Moments that Matter activity packs with our partner The Walt Disney Company, utilising their characters and stories and distributed tens of thousands of them to support paediatric patients These packs were specially created to foster positive feelings, increase confidence and help build emotional resilience of children in hospitals and hospices who were increasingly isolated during this period. We have expanded now to deliver these to hospitals we don’t usually work with and know they have been warmly received.

A Matron at the West Middlesex Hospital told us, “Thank you so much for providing us with these activities, they have kept us going in the height of COVID and for this, we are really grateful.”

We were even able to welcome thousands of patients to watch films in our cinemas, both before lockdown and for a limited number of socially distanced screenings where we have put in place new protocols with the hospitals - though we have had to open and close some cinemas dependent on developing circumstances.

Altogether MediCinema managed to provide over 43,000 experiences for patients in hospital and for this I am incredibly proud.

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As for many others, the financial impact of the pandemic has been severe. While we lost a significant level of projected income, due to careful planning we had entered the year in a strong financial position with high reserves. This has enabled us to continue our work and deliver our services for patients.

We are hugely grateful for the support of the Julia and Hans Rausing Trust, Vue Cinemas, and to The Walt Disney Company through our ongoing programmes and for its significant contribution to our capital fund. This will enable MediCinema to continue to plan for future builds.

Looking back at the year now, at the challenges we’ve all had to face as a charity and as a team, at home and at work, I believe we have achieved an incredibly high level of support for our patients. I would like to thank all our donors for their continued help, and I’m very happy to say that we are still on track to reach our target of supporting 75,000 patients by 2025, set out in our strategic plan of 2018-2025.

On that, I will leave you with the words of Gerard who visited the CW+ MediCinema at the Chelsea and Westminster Hospital in October. Despite being in hospital he was able to experience the closing night of the London Film Festival at the same time as cinemagoers around the country, watching the premiere showing of the film Ammonite.

“ This afternoon I felt like I would pay someone £1 million to take me off the ward, but tonight it all happened for free! To be able to come along in my hospital bed, to see such an interesting drama, and meet lovely people – what a wonderful, magical evening .”

Stay safe and well and here’s hoping that this next year sees us all start to emerge from the cloud of this pandemic.

With warmest regards to you all,

Kat Mason Chief Executive Officer

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MEDLI

REFERENCE AND ADMINISTRATIVE DETAILS

Charity number (England and Wales) 1058197 Charity number (Scotland) SC039704 Company number 3210199 Registered Office Conybeare House, Guy’s Hospital, London, SE1 9RT

Our advisors

Auditors Sayer Vincent, Invicta House, 108-114 Golden Lane, London EC1Y 0TL Bankers Coutts & Co, 440 Strand, London, WC2R 0QS CAF Charity Services, Kings Hill, West Malling, Kent, ME19 4TA Solicitors Akin Gump Strauss Hauer & Feld LLP, Bishops Square, Spitalfields, London E1 6EG

Directors and trustees

The directors of the charitable company (the charity) are its trustees for the purpose of charity law. The trustees and officers serving during the year and since the year end were as follows:

Chair P Massara Elected Trustees L Atkinson S Bristow M Burbidge J Chan P Hoy Dr N Lessof C Lilly S Moore (resigned 16 Sept 2020) S Morritt K Styles (resigned 18 May 2020) K Williams Secretary K Mason Key management personnel Chief Executive Kat Mason (maternity leave May 2019 - Feb 2020) Interim Chief Executive Steve Crump (maternity cover April 2019 - April 2020) Director of Operations Paul Giggal Director of Fundraising Adam Johnson (until October 2020) Director of Communications Lysette Cohen

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and accounts for the year ended 31 December 2020.

The accounts have been prepared in accordance with the accounting policies set out in Note 1 and comply with the charity’s memorandum and articles of association, the Charities Act 2011 , the Companies Act 2006 , the Charities and Trustee Investment (Scotland) Act 2005 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard application in the UK and Republic of Ireland (FRS 102) .

Our objectives and activities

The object of MediCinema is the relief of sickness, infirmity and old age by providing cinematic and kindred entertainment in hospitals, hospices, residential establishments and other establishments of a similar nature; and the promotion of any other charitable purpose for the relief of sick, infirm or elderly patients or residents as the trustees shall from time to time think fit. The charity aims to enrich the quality of life in hospitals and places of care for patients young and old by screening, free of charge, current cinema releases in an on-site cinema, away from the ward.

We currently have six MediCinemas in the following locations:

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MediCinemas are designed to accommodate wheelchairs and hospital beds to support as many patients as possible. Patients using the MediCinemas include those with drips and on respirators; those recovering from operations; undergoing chemotherapy or dialysis; and many, many more. As well as being looked after by our volunteers and cinema managers, patients receive constant medical care from our nurses who attend screenings throughout. Safeguarding and care are central to MediCinema’s offering, and our resourcing arrangements reflect this.

Families and carers are welcome to attend alongside patients, ensuring that the cinema offers an opportunity for patients to escape the isolation of their wards and spend quality time with their loved ones outside of the medical setting, in the ‘normal’ activity of going to the cinema. If there is capacity at individual screenings NHS staff members are also welcome to attend. This is not only a benefit to staff but also a way to engage the hospital and promote the service.

Outside of the MediCinemas’ use as a cinema, we work in partnership with the Hospital Trusts and partner organisations to ensure the best usage of the space throughout the year. This includes supporting medical teaching and training, clinical multi-disciplinary meetings, external and internal lectures and meetings, as well as other arts and entertainment activities as part of the non-clinical support of patients. While our cinemas are suspended due to COVID-19, we are proud that the spaces have instead been used to train staff and for staff wellness amongst other things.

MediCinema’s work benefits all patients signed off by the medical staff as well enough to attend screenings under the care of the dedicated nurses, their families and carers. In addition, MediCinema has a wider benefit to carers, families and staff in our sites of operation, as well as to our own staff and volunteers. In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance Public Benefit: Running a Charity (PB2) .

The trustees have considered these matters and concluded:

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Achievements and Performance

Over 193,000 cinema experiences given by MediCinema since the charity started in 1999

In 2020 MediCinema provided 43,697 experiences to patients compared to 23,867 in 2019

This consisted of:

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Moments that Matter Activity packs:

In 2020, we continued to deliver excellent – and new – services to our patients, their families and loved ones. This year saw us broaden our services in order to adapt to the changing circumstances posed by COVID-19 and the needs and challenges this presented. We continued work on the implementation of the 2018-2025 strategic plan which aims, over the next five years, to double the scope and triple the reach of our service by 2025.

Supporting patients and their families through the power of film

Cinema screenings

Between 1[st] January 2020 to 11[th] March 2020 after which our cinemas were suspended, over 4,600 people visited a MediCinema to watch a film. We have continued to work closely with our hospital partners and from the end of August, some of our cinemas reopened with new COVID-19 procedures for socially distanced screenings. In that period more than 700 patients were able to visit one of four of our sites and watch a film. We have had to close and reopen some sites depending on individual circumstances, but we remain flexible and look forward to getting them all open again.

Mary came to see The Secret Garden at a socially distanced screening at the CW+ MediCinema in November. She told us: “ I was astounded! I'd never heard of cinemas in hospitals before. I think it's fabulous. I'm a doctor, and I've worked in hospitals all my life. Coming to CW+ MediCinema lifted me from a COVID-19 world of seclusion into a place of utter magic! And I felt, with the nurses and volunteers and other patients, as if I was amongst friends .”

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A new free to use bedside service

After suspending our cinemas in mid-March, in less than a month our Operations team were able to bring together a new partnership in order to screen films at patients’ bedsides. We teamed up with Hospedia, the leading supplier of hospital bedside screens, and non-theatrical film distributors Filmbankmedia. A new channel was launched screening films for free for patients, the majority of whom were on their own on the wards unable to receive visitors due to COVID restrictions. This bedside service has also been made possible thanks to the support of our theatrical film distributor partners. There are two films played each week which are on rotation every two hours. At the time of writing our bedside service has been extended to seven hospitals.

“ My son Theo loves seeing what film is on. As soon as he enters the dialysis unit, he goes straight onto the channel. It actually helps him keep his mind off the treatment. Before this started, he used worry as soon as he entered the ward, as treatment was the first thing on his mind. But now it's what film is on? So thank you for helping my son not worry as much now .”

Moments that Matter Activity Packs for children

Throughout the COVID crisis MediCinema, together with its long-term partner The Walt Disney Company, has been designing and distributing activity packs with extra-special meaning to children in hospitals and hospices. While visitors have been severely restricted, these colourful packs based on everyone’s favourite Disney characters are designed to help foster positive feelings, increase confidence, help build emotional resilience and reduce isolation during a period in which connecting with others is even more challenging. More of these activity packs are planned for this year.

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Natalie, Play & Youth Service Team Lead at the Chelsea and Westminster and West Middlesex Hospitals: “ As play specialists we aim to ‘normalise’ the hospital for the children, taking away their fear when they are here for treatment. By giving them things to play with, that they can take home with them and take pride in, we help to create long-lasting positive memories of their hospital experience. The MediCinema and Disney activity packs and arts & crafts fit perfectly with our objectives and were a life saver at the start of the outbreak when resources were limited. We were in desperate need of individual activities that the children could keep and take home … and then the activity packs arrived. They have made such a difference here and the children absolutely love them .”

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Measuring our Impact

We know that our cinema services benefit patients, reducing anxiety, stress and feelings of isolation, increasing their quality of life and well-being. Because of the COVID-19 crisis and the suspension of our cinemas for some time, the survey data we have from 2019 is the last piece of quantitative data we were able to fully collect and was included in our last Annual Review. It is restated here for reference.

Our evaluation in 2019 evidenced that we achieve the following key outcomes:

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A survey of hospital staff in November 2020 relating to our new bedside screen service showed strong support of its value :

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Patient Stories

The stories our beneficiaries tell us about the difference we have made to them and their families’ lives are just as important as impact figures revealed in our surveys. Here are just a few from the many received throughout the year:

Sophia-Hope

Six-year-old Sofia-Hope was a pre-term baby and has cerebral palsy and epilepsy. She developed severe sepsis and ended up in Emergency Intensive Care. Her mum Keleigh explains: “Looking at the same four walls all the time is so difficult. We can’t go out for the day or do anything really. There are only so many times you can go to the ward playroom. So being able to come to the CW+ MediCinema allows us to get Sophia-Hope out of her room and means we are able to leave the ward – we can do something normal and we forget we’re in hospital. Being able to come to

MediCinema is life changing for a child. When you have a child with complex needs it is so difficult. Difficult for the whole family. Coming to MediCinema brings everyone together. On top, if you have a child whose life expectancy is not like others, it is all about making memories. When in hospital there aren’t many opportunities to make memories, so coming to the MediCinema allows us to create these positive memories together. You cannot underestimate how much these moments really matter .

Jack

16-year-old Jack was admitted to the Royal Victoria Infirmary with a bone infection. Jack told us: “ My hospital stay was difficult. I missed playing rugby, seeing my friends and being at school. I love all of these things and it was awful to be confined to a hospital bed for 16 days without being able to see anyone, go outside or do anything physical. I was in a lot of pain and found the hospital stay emotionally difficult too – staying in the same room for a full two weeks isn’t good for anyone. The volunteers who came to pick me up in the wheelchair were kind and chatted to me on the way there. On the way back we discussed the film which was interesting. My Mum really enjoyed it too. It was good for us both to have a change of scene and to have something else to talk about together afterwards – a shared experience. The whole experience has made me realise how important a patient’s mental well-being is when

they are in hospital – and MediCinema was a good focus for the day. Without it, every day of my stay would have been pretty much the same. It made a huge difference to my hospital experience ” and really cheered both me and my Mum up – so thank you .

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Jayden

Jayden was adopted by Mum, Joanna in 2019 and she has been bringing him to the MediCinema at Serennu Children’s Centre for two years. He was diagnosed with Neurofibromatosis type 1 and is also unable to speak, so is reliant on Makaton for signing communication. “ When we first came across MediCinema, we thought it sounded really exciting, because it would provide a whole new experience for Jayden. We particularly like the idea that Jayden’s siblings were able to attend as well, as he loves doing things with his brothers. We had a lot in common with the other patients there and when Jayden occasionally wanted to get down and wander a bit during the screening, we didn’t have to feel concerned about it at all . We felt comfortable because we

were all in the same boat – it meant that Jayden could enjoy the film, make a few noises and wander about and it was still okay. He was really happy afterwards and was smiling for ages. This is only cinema that we can go to. MediCinema provides a wonderful experience for the whole family to enjoy – especially for children like Jayden for whom opportunities like this can be difficult to find. It’s also provided us with something that his brothers greatly enjoy too – it’s something he can share with them .”

Volunteer Support

MediCinema continues to benefit from an expansive volunteer network which works alongside our paid staff (cinema managers and nurses at our in-hospital sites and technical assistant at the Serennu Centre) to collect patients from the wards, walk with them or push wheelchairs or beds, bring them to the cinema and then return them to their wards after the film. More importantly, volunteers put patients, who may be very anxious about leaving the ward, at ease and give patients the chance to talk about something completely unrelated to their condition. This social interaction is vital for patients and their families, especially patients who don't get many, if any, visitors.

Since we first suspended our cinemas in March 2020 due to COVID, we have been unable to use our volunteers even in socially distanced screenings because of strict hospital COVID-protocols.

“We simply couldn’t deliver the MediCinema screening programme without the support of our incredible volunteers. We value their time enormously - it is no mean feat to walk the wards and engage patients whilst ensuring their experience is positive and adds to their wellbeing. Though we were only able to use volunteers before the suspension of our cinemas in March 2020 we are very much looking forward to their return once the current situation improves.” Paul Giggal, Director of Operations

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Organisational Development

In 2020, Board member Kezia Williams was appointed to the newly created role of Vice Chair of the MediCinema Board. This role was created to work alongside the current Chair Paul Massara until he steps down this year in line with the MediCinema Board terms of appointment. He became Chair in 2016. Kezia will step up to the role of Chair as Paul leaves in 2021. Stephen Moore who between 2011-2014 had been CEO of MediCinema and then a Board member, stepped down at the end of his two-term tenure.

Within the staff team, due to the COVID crisis we have had to put several people on the furlough scheme, some full time and some partial. In addition, towards the end of 2020 our Director of Fundraising took the decision to step down. Due to the COVID situation we have not replaced this position but instead the CEO has stepped in to oversee Fundraising, working with the Senior Partnerships Manager on all fundraising streams.

New MediCinema Developments

In 2018 we commenced work to identify new sites for the development of MediCinema capabilities where they would have the most impact, as referenced in the charity’s published 2018-2025 growth strategy. After extensive consultation and negotiation across the NHS space key sites emerged.

These talks have continued to take place this year but as a result of COVID there will be some varied delays in the plans moving forward and they are expected to come to fruition at a slightly later date than had been planned.

Key sites under discussion:

The Midland Metropolitan Hospital (Sandwell and West Birmingham NHS Hospitals Trust)

A new acute general hospital, the Midland Metropolitan occupies a 6.5 hectares site in Smethwick near Birmingham. The hospital will have 670 beds and 15 operating theatre suites.

The Royal Manchester Children’s Hospital (Manchester University NHS Foundation Trust) A large and very busy children’s hospital, the Royal Manchester has 371 paediatric beds and a further 60 neonatal cots in the adjacent tertiary neonatal unit of Saint Mary’s Hospital.

Other discussions continue with a number of other NHS Trusts and hospitals, including

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Engaging the NHS: Ensuring sustainability

To further progress its work with the NHS, at the beginning of 2020 MediCinema engaged a health specific communications agency to support representation at key conferences and partnership events during 2020. Due to COVID budgetary constraints and the impracticality of being able to effectively have impact at this time, the work has been put on hold. As we work through the long-term need and structure of our bedside and on-ward services complementary to our core cinema service, we do so with our beneficiaries and healthcare partners at the heart of this development work, which will come to fruition in 2021.

MediCinema Italy

MediCinema Italy is a separate organisation to MediCinema UK; in 2021 work is continuing to progress the MediCinema UK / Italy partnership through the exchange of information and best practice, with a view to formalising the association of all MediCinema organisations in the coming years.

MediCinema Ireland

In 2020, MediCinema Ireland was registered as a company and it is now in the process of being registered as a charity. A MediCinema Ireland Board team has now been established with Trish Long, The Walt Disney Company’s VP and MD for Ireland, as Chair.

With three countries now having a MediCinema organisation, the UK Board and Executive team will work through the coming years to ensure that the three MediCinema capabilities of the UK, Italy and Ireland are aligned and that the group entity reflects an integrated brand and corporate character with patient safety and quality service provision at the core of the three nations where MediCinema is offered.

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Fundraising

Fundraising Strategy

2019 saw the origination and application of a fundraising strategy designed to build on the foundation of twenty-years’ of successfully delivering the very best in cinematic experiences for patients and their families. The COVID crisis has, as with all charities and businesses, changed the immediate funding landscape. Our strategy has needed to be put on hold for 2020/21 with a new focus on reducing costs as far as possible and bridging the funding gap for the charity until the point at which we can rely on our previously sustainable income streams returning. We are incredibly grateful to all our partners who have shown understanding of the challenges of financially managing a charity during these uncertain times, including pivoting our services, fundraising and reallocating resources to best meet the needs of our patients and the organisation.

Trusts & Foundations

With our usual corporate income streams severely damaged by COVID, our focus for surviving the year and responding to the increased needs of our patients even more isolated by COVID than usual had, of necessity, to turn to existing and new grant funding.

A number of applications were submitted to new supporters, including one who has supported the charity’s mission and services through CW+ charity at Chelsea and Westminster, but not directly to MediCinema before. The resulting grant from Julia and Hans Rausing Trust for £87,000 in support of core costs as part of its Charity Survival Fund has been integral to the charity’s ability to survive this year and respond to the needs of the crisis for our patients.

We are incredibly grateful for the support and flexibility given by our existing trust and foundation funders this year, all of whom unrestricted their grants to ensure the charity could use the funds where needed in this crisis. Specific grants this year were received from Children in Need (the final 3 months of our three year grant), Masonic Charitable Foundation (£20,288; year one of two), Merchant Taylors (£8,302; year one of two), and Bernard Sunley Foundation (£5,000, with a further grant received in January 2021).

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Corporate Partnerships

At the beginning of 2020, MediCinema was in dialogue with all eight major distributors having successfully developed the Nationwide Preview Screening (NPS) programme in 2019. Two NPS activities – Dora and the Lost City of Gold and Shaun the Sheep: Farmageddon had collectively generated over £167,000 and in addition helped to raise our profile in the industry. However due to the pandemic and closure of cinemas we were not able to progress this programme. This is an income line which was of particular significance to MediCinema and one that the organisation is keen to develop when the industry is ready again.

In August 2020 MediCinema was the charity partner for Disney’s PixarFest , a month-long virtual family festival to celebrate the 25[th] anniversary of Disney and Pixar’s Toy Story . To mark this occasion, Disney made a $750,000 restricted donation to MediCinema’s Capital Fund, to benefit future new builds in UK and Ireland.

Public cinemas were shut for much of the year. During the time they were open, our long-term partner Vue Cinemas continued to collect public donations on ticket sales and screened our advert with Simon Pegg and patient Sienna.

MediCinema received employee support from the sector with fundraising events that brought in substantial income, notably from Sony and also from Paramount/Viacom and Hasbro/eOne who both match funded. Obviously Creative also fundraised for MediCinema alongside providing pro-bono support by designing the new Fundraising Pack.

During the summer of 2020 MediCinema was one of two charity partners for Secret Cinema’s new Drive-In by Häagen-Dazs who jointly donated a portion of its profits from all ice-cream sales to us.

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Hospital Partners

MediCinema continued to work to develop and maintain genuine and meaningful partnerships with its hospital partners. Throughout the year we have worked in close partnership with our hospital partners to examine the situation at each site and to take their clinical expertise about our services remaining open. This includes looking at adjusting our procedures to be COVID-19-safe on reopening for socially distanced or personal screenings only, and in terms of alternative service provision -such as bedside screens and activity packs - when the cinemas have been closed. Our funding arrangements with each have continued, linked to the costs of service provision at each site.

Individual Giving & Philanthropy

Despite the economic challenges of the COVID-19 pandemic, public support for MediCinema, through donations, fundraising and challenge events has remained strong and an important ongoing stream of income for the charity.

The MediCinema advertisement that plays in cinemas had boosted awareness and led to a significant increase in individual giving in 2019. In 2020 with public cinemas closed the possibility of seeing the ad was greatly reduced. Though at the time of writing cinemas are scheduled to reopen in May, we don’t know yet what the public uptake will be and therefore believe the effect will continue for some time. In spite of this, a number of patrons, high profile supporters and former beneficiaries and their families made appeals on the charity’s behalf via social media. As a result, a number of partners, team members and individual supporters donated or successfully raised funds on behalf of the charity; supporting others to do the same continues to be a core part of our work on encouraging individual support for our mission.

While our means of developing philanthropic relationships was hampered this past year, we continue to look to develop relationships and our pathways for engagement with high net worth individuals, to support the immediate bridging need of the charity and in the longer term.

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Fundraising Practice and Regulation

We communicate with our individual supporters via email, mail and phone calls where appropriate. In previous years (pre-COVID-19) we have engaged them with invitations to patient screenings and events – these have not been able to take place this year. We recruit new supporters via an advert that would usually play in cinemas – and this year has been played in some drive-in cinemas – and through our various corporate partners who promote our cause to their customers. We utilise our social channels and general publicity of our work and initiatives to encourage people to become supporters through donating and when possible volunteering. Our main income streams are corporate, hospital partners, trusts and foundations and individual giving with a developing capability in philanthropy fundraising through developing mutually beneficial relationships with supporters. We also raise funds through community, challenge events, in memoriam and legacy activity.

MediCinema is registered with the Fundraising Regulator and seeks to adhere to its principles published in the Fundraising Code of Practice at all times when undertaking fundraising from the public. This includes being legal, open, honest, and respectful, and ensuring that no one who appears to be vulnerable is asked to commit to giving. We have a complaints policy published and received a total of 0 complaints, none of which were escalated to the Fundraising Regulator.

The impact of the COVID-19 pandemic

At the time of sign off for these accounts the COVID-19 global pandemic has had, and continues to have, a deep effect on our lives, healthcare and economies.

The key impacts for the charity are in operations where the cinema service has been mainly suspended, augmented instead with our pivoted bedside offerings, development of the new sites

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which have mainly been put on hold while hospitals focus on the immediate and longer term needs of managing the pandemic, and fundraising.

One element of our funding relies on the generosity of the cinema-going public donating, and with no cinemas open this income stream has fallen drastically. With cinemas now not set to reopen until later in 2021, and with the unknown factor of how the public will respond to their reopening, this will have an ongoing impact on MediCinema’s income. Robust financial planning and the stripping back of expenditure where possible has been undertaken and we go into 2021 focussing on individual giving, philanthropy and new sectors for corporate partnerships.

This will continue to be a challenging period to negotiate for the country as a whole and for us as a charity. But we are confident that MediCinema remains an impactful going concern with an important role to play in improving the quality of life for patients in NHS hospitals.

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FINANCIAL REVIEW

2020 2019
Income £ 1,347,963* £ 1,254,338
Of which, Gifts in kind (head office rental cost,
legal advice, license and logistics of films)		 £ 114,741 £ 165,321
Expenditure £ 956,086 £ 1,142,405
Surplus/ deficit £ 391,877 £ 111,933
Total fixed assets £628,204
(at 31 December 2020)		 £719,511
(at 31 December 2019)
Overall assets £1,687,651 £1,346,545

Investment powers and policy

Aside from retaining a prudent amount in reserves each year most of the charity’s funds are to be spent in the short term so there are few funds for long term investment with the exception of those raised for new MediCinema installations. All funds are remitted to MediCinema head office and held in a Coutts deposit account.

Reserves policy and going concern

It is the policy of the charity that the level of free reserves (those not tied up in fixed assets and designated and restricted funds) should be maintained at a level equivalent to three months’ expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. At 31 December 2020 free reserves totalled £227,987 (against 3 months’ operating costs going into 2021 of £176,000). In light of the COVID-19 pandemic and the impact on the cinema industry, the trustees believe that it is prudent to hold the current level of reserves as 2021 is likely to be a challenging fundraising environment.

In 2018 the trustees designated funds to support the strategic development of new cinemas. This was released in 2019 to during the pandemic. As at 31 December 2020, £200,000 has been designated to support new cinema development.

The trustees have reviewed the circumstances of the charity, its fundraising, financial and cash flow plans, and consider that adequate resources continue to be available to fund the activities of the charity for the foreseeable future. Its cost base has been reviewed and, where possible without affecting service delivery, reduced. The trustees are of the view that the charity is a going concern.

Governance and Management

Governing Document

The organisation is a charitable company limited by guarantee, incorporated on June 10 1996 and registered as a charity on September 23 1996. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed

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under its Articles of Association. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Appointment of trustees

As an arts-in-health charity whose work focuses on a broad range of people, the directors seek to ensure that the trustee body is representative and includes members with the relevant skills. The Board consists of members from the film industries as well as members of the medical community.

Trustee induction and training

New Trustees are similarly familiarised with MediCinema and its work and also provided with an induction pack including copies of the main charity documents, latest accounts, strategy document outlining future plans and objectives and a copy of the Commission’s guide ‘The Essential Trustee’.

Trustees, already familiar with the practical work of the charity, are encouraged to visit the original MediCinema at St Thomas’ Hospital from time to time and other MediCinemas as they open.

Organisation

The trustees meet four times a year and are responsible for the strategic direction and policy of the charity, a scheme of delegation is in place and day-to-day management rests with the Chief Executive who is responsible for ensuring that the charity delivers the services specified. During the COVID pandemic, the trustees met once a month from March to December 2020, to ensure oversight and engagement within such a fast moving environment. This has been reduced to once every two months from the start of 2021, and will return to quarterly when appropriate to do so.

Related parties

None of our trustees receive remuneration or other benefit from their work with the charity. Kevin Styles is Group MD of Vue Entertainment, which supported the charity through customer donations on Vue tickets.

Pay policy for senior staff

The Directors consider the Board of Directors, who are the charity’s trustees, and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. All trustees give their time freely and no trustees received remuneration in the year. No trustees received payment for expenses in the year.

The pay of senior staff is reviewed annually and against responsibilities, duties and performance as well as the financial position of the charity. In view of the nature of the charity, the Directors benchmark against pay levels in other charities of a similar nature, scope, size and ambition. The remuneration benchmark is the mid-point of the range paid for similar roles adjusted for a weighting for any additional responsibilities. If recruitment has proven difficult in the recent past a market addition is also paid with the pay maximum no greater than the highest benchmarked salary for a comparable role.

26

Risk management

The trustees have reviewed the major risks to which the charity is exposed. A risk register has been established which is updated annually. Where appropriate, systems or procedures have been established to mitigate the risks across the key areas of Operations, Fundraising, Infrastructure and Roll-Out and these are periodically reviewed to ensure that they continue to meet the needs of the charity.

The main immediate risks presented to the charity relates to the impact and potential impact of the COVID-19 pandemic.

The primary risk is financial, given the reduction in funding anticipated. Costs have been immediately reduced as far as possible, the cinema staff furloughed, and the fundraising plan has been refocused.

Secondary risk is related to the safety of patients, volunteers and staff, and the trustees are confident that measures in place and approaches related to the temporary closure of cinemas and the moving of all office staff to working from home, as well as advice shared, mitigate these risks and have provided the protection required for our people. The charity continues to work with all its hospital and healthcare partners on the safe face to face service delivery in our MediCinemas, with staff offered vaccines as per the policies for frontline workers in the respective Trust, bi-weekly testing of staff undertaken, the suspension of volunteers on site, and revised policies and procedures for socially distanced screenings, when appropriate.

A further risk is to our patients themselves in terms of the loss of service, and the charity has worked incredibly hard with all its partners to establish a free bedside service to patients through this time. This is augmented where possible by activities and entertainment, especially through our activity packs and Moments that Matter programme in partnership with Disney. In 2021, given the feedback on the ongoing benefit to patients and staff of our new bedside services, we are working to extend these to ongoing services to be delivered alongside our cinema provision.

As the charity continues to extend its reach outside of UK borders through other organisations, the risks of this have been reviewed and considered. The legal structures and association of MediCinema Ireland is set up to mitigate any risks to the charity, brand, reputation and patient safety; and the work begun in 2021 to foster a closer working relationship with MediCinema Italy is being undertaken with a view to ensure the same.

Trustees’ responsibilities in relation to the financial statements

The charity trustees (who are also the directors of MediCinema for the purposes of company law) are responsible for preparing a trustees’ annual report and financial statements in accordance with application law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application resources. In preparing the financial statements, the trustees are required to:

28

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information includes on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to disclosure to our auditors

In so far as the trustees are aware at the time of approving our trustees’ annual report:

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The trustees’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

The trustees’ annual report has been approved by the trustees on 23 June 2021 and signed on their behalf by

By order of the board of trustees on

P Massara

29

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MEDICINEMA

Opinion

We have audited the financial statements of MediCinema (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on MediCinema's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

30

Other Information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the 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 trustees’ annual report, including the strategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

31

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

32

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Joanna Pittman (Senior statutory auditor) 5 July 2021 for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

33

MediCinema

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2020

Note
Income from:
2
3
4
5
5
6
Reconciliation of funds:
Total funds brought forward
Net income / (expenditure) for the year
Total funds carried forward
Transfers between funds
Net movement in funds
Raising funds
Other
Total expenditure
Charitable activities
Operation of Cinemas
Investments
Other
Total income
Expenditure on:
Other trading activities
Donations and legacies
Charitable activities		 Unrestricted
£
504,102
-
356
-		 Restricted
£
843,505
-
-
-		 2020
Total
£
1,347,607
-
356
-		 Unrestricted
£
707,337
25,800
854
-		 2019
Restricted
Total
£
£
469,575
1,176,912
-
25,800
-
854
-
-
469,575
1,203,566
-
253,493
562,160
888,911
-
-
562,160
1,142,404
(92,585)
61,162
4,880
-
(87,705)
61,162
885,724
1,234,612
798,019
1,295,774
504,458 843,505 1,347,963 733,991
146,658
425,515
-		 -
383,913
-		 146,658
809,428
-		 253,493
326,751
-
572,173 383,913 956,086 580,244
(67,715)
(2,053)		 459,592
2,053		 391,877
-		 153,747
(4,880)
(69,768)
497,755		 461,645
798,019		 391,877
1,295,774		 148,867
348,888
427,987 1,259,664 1,687,651 497,755

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 16a to the financial statements.

34

MediCinema

Balance sheet

Balance sheet Balance sheet
As at 31 December 2020 Company no. 3210199
Note
£
Fixed assets:
11
Current assets:
12
98,338
1,048,473
1,146,811
Liabilities:
13
(87,364)
16a
200,000
227,987
Total unrestricted funds
Designated funds
Restricted income funds
Unrestricted income funds:
The funds of the charity:
Total net assets
Debtors
Creditors: amounts falling due within one year
Net current assets
Cash at bank and in hand
Tangible assets
General funds
Total charity funds		 2020
£
£
628,204
628,204
242,670
398,909
641,579
(65,316)
1,059,447
1,687,651
1,259,664
-
497,755
427,987
1,687,651		 2019
£
719,511
719,511
576,263
1,146,811
(87,364)
200,000
227,987
1,295,774
798,019
497,755
1,295,774

Approved by the trustees on 23 June 2021 and signed on their behalf by

Paul Massara Chair

35

MediCinema

Statement of cash flows

For the year ended 31 December 2020

Note
Cash flows from operating activities
Net income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Dividends, interest and rent from investments
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash (used in) / provided by operating activities
a
Cash at bank and in hand
a
Total cash and cash equivalents
Analysis of cash and cash equivalents and of net debt
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Net cash used in investing activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets		 £
£
391,877
93,360
(356)
144,332
22,048
651,261
356
(2,053)
(1,697)
649,564
398,909
1,048,473
At 1
January
2020
Cash flows
£
£
398,909
649,564
398,909
649,564
2020		 £
£
391,877
93,360
(356)
144,332
22,048
651,261
356
(2,053)
(1,697)
649,564
398,909
1,048,473
At 1
January
2020
Cash flows
£
£
398,909
649,564
398,909
649,564
2020		 £
£
61,162
99,620
(854)
(139,202)
(37,603)
(16,877)
854
(4,880)
(4,026)
(20,903)
419,812
398,909
Other non-
cash
changes
At 31
December
2020
£
£
1,048,473
1,048,473
2019		 £
£
61,162
99,620
(854)
(139,202)
(37,603)
(16,877)
854
(4,880)
(4,026)
(20,903)
419,812
398,909
Other non-
cash
changes
At 31
December
2020
£
£
1,048,473
1,048,473
2019
651,261
(1,697)		 (16,877)
(4,026)
At 1
January
2020
£
398,909		 Other non-
cash
changes
£
649,564
398,909		 (20,903)
419,812
1,048,473 398,909
Cash flows
£
649,564		 At 31
December
2020
£
1,048,473
398,909 649,564 1,048,473

36

MediCinema

Notes to the financial statements

For the year ended 31 December 2020

a) Statutory information

MediCinema is a charitable company limited by guarantee and is incorporated in United Kingdom.

The registered office address is Conybeare House, Guy's Hospital, London, SE1 9RT.

b) Basis of preparation

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 with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

On 17th August 2020 MediCinema Ireland was registered as an Irish company. MediCinema is the sole member for this company. MediCinema Ireland is in the process of registering as a charity and no transactions took place during 2020, therefore, consolidated accounts have not been prepared.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

f) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

37

MediCinema

Notes to the financial statements

For the year ended 31 December 2020

g) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

h) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

i) Expenditure and irrecoverable VAT

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

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Operation of cinemas 72.34%
Fundraising 22.47%
Governance costs 5.19%

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity

Operation of cinemas 76.30%
Fundraising 23.70%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

38

MediCinema

Notes to the financial statements

For the year ended 31 December 2020

k) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

 Cinema installations 25 years  Fixtures and fittings 4 or 10 years  Equipment 5 years

l) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

m) Cash at bank and in hand

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

n) Creditors and provisions

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

o) Pensions

Pension contributions are made by the company in respect of employees' individual personal money purchase pension schemes. The assets of the fund are held separately from those of the charitable company which has no liability under the scheme other than for the payment of contributions.

Corporate Donations
Grants
Gifts in kind
Individual Donations
and Gift Aid		 Unrestricted
£
130,560
205,831
167,711
-		 £
3,511
571,022
154,231
114,741
Restricted		 2020
Total
£
134,071
776,853
321,942
114,741		 Unrestricted
£
144,200
553,257
9,880
-		 2019
Total
£
£
25,986
170,186
47,167
600,424
231,101
240,981
165,321
165,321
469,575
1,176,912
Restricted
504,102 843,505 1,347,607 707,337

Gifts in kind represent legal services, office rental and film delivery costs.

39

MediCinema

Notes to the financial statements

For the year ended 31 December 2020

3
Unrestricted
£
Fundraising events
-
-
4
Unrestricted
£
Interest receivable
356
356
Income from other trading activities
Income from investments		 3
Unrestricted
£
Fundraising events
-
-
4
Unrestricted
£
Interest receivable
356
356
Income from other trading activities
Income from investments		 £
-
Restricted		 2020
Total
£
-		 Unrestricted
£
25,800		 £
-
Restricted		 2019
Total
£
25,800
- - - 25,800 - 25,800
Unrestricted
£
356		 £
-
Restricted		 2020
Total
£
356		 Unrestricted
£
854		 £
-
Restricted		 2019
Total
£
854
356 - 356 854 - 854

40

MediCinema

Notes to the financial statements

For the year ended 31 December 2020

5a Analysis of expenditure (current year)

Staff costs (Note 7)
Nurses cost
Direct cinema costs
Fundraising costs
Communication costs
Finance
IT
General office
Governance
Depreciation
Gifts in kind
Support costs
Governance costs
Total expenditure 2020
Total expenditure 2019		 Raising
funds
£
109,422
-
-
11,338
-
-
-
-
-
-		 Charitable
activities
Running
cinemas
£
352,278
38,254
85,988
-
41,431
-
-
-
-
93,360
114,741
726,052
54,545
28,831
809,428
888,911		 Governance
costs
£
25,291
-
-
-
-
-
-
-
8,580
-
-		 Support
costs
£
26,160
-
-
-
20,443
12,511
16,289
-
-
-		 2020
Total
2019
Total
£
£
513,151
509,585
38,254
123,644
85,988
41,759
11,338
95,217
41,431
39,613
20,443
21,613
12,511
3,346
16,289
34,286
8,580
8,400
93,360
99,620
114,741
165,321
956,086
1,142,404
-
-
-
-
956,086
1,142,404
120,760
16,942
8,956		 33,871
3,916
(37,787)		 75,403
(75,403)
-
146,658 - -
253,493 - -

41

MediCinema

Notes to the financial statements

For the year ended 31 December 2020

5b Analysis of expenditure (prior year)

Staff costs (Note 7)
Nurses cost
Direct cinema costs
Fundraising costs
Communication costs
Finance
IT
General office
Governance
Depreciation
Gifts in kind
Support costs
Governance costs
Total expenditure 2019		 Raising
funds
£
125,696
-
-
95,217
-
-
-
-
-
-
220,913
21,933
10,647
253,493		 Charitable
activities
Running
cinemas
£
332,716
123,644
41,759
-
39,613
-
-
-
-
99,620
165,321
802,673
58,056
28,182
888,911		 Governance
costs
£
25,909
-
-
-
-
-
-
8,400
-
-
34,309
4,520
(38,829)
-		 Support
costs
2019
Total
£
£
25,264
509,585
-
123,644
41,759
-
95,217
39,613
21,613
21,613
3,346
3,346
34,286
34,286
-
8,400
-
99,620
-
165,321
84,509
1,142,404
(84,509)
-
-
-
-
1,142,404

42

MediCinema

Notes to the financial statements

For the year ended 31 December 2020

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2020 2019
£ £
Depreciation 93,360 99,620
Auditor's remuneration (excluding VAT):
Audit 7,150 7,000
Other services 3,200 -

7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Employer pension contributions
Social security costs
Salaries and wages		 2020
2019
£
£
458,809
453,951
41,282
43,120
13,060
12,514
513,151
509,585

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2020 2019
No. No.
£60,000 - £69,999 1 1

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £252,914 (2019: £259,097).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2019: £nil). No charity trustee received payment for professional or other services supplied to the charity (2019: £nil).

8 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 13 (2019: 14).

Staff are split across the activities of the charity as follows (full time equivalent basis):

Raising funds
Operation of Cinemas		 2020
2019
No.
No.
2.0
3.0
11.0
11.0
13.0
14.0

43

MediCinema

Notes to the financial statements

For the year ended 31 December 2020

9 Related party transactions

MediCinema is delighted to have received donations totalling £51,522 (2019: £328,599) from Vue Entertainment Limited. Kevin Styles, a trustee and Managing Director of Vue International, provided his advice and support to develop this partnership.

10 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

11 Tangible fixed assets

At the end of the year
Cost
Disposals in year
Charge for the year
At the start of the year
At the start of the year
Additions in year
Disposals in year
Depreciation
At the end of the year
Net book value
At the end of the year
At the start of the year		 Cinema
installations
£
1,032,779
-
(229,425)		 Fixtures and
fittings
£
359,760
-
(18,543)		 Equipment
£
330,612
2,053
(84,691)		 Total
£
1,723,151
2,053
(332,659)
803,354 341,217 247,974 1,392,545
436,519
39,821
(229,425)		 275,860
33,111
(18,543)		 291,261
20,428
(84,691)		 1,003,640
93,360
(332,659)
246,915 290,428 226,998 764,341
556,439 50,789 20,976 628,204
596,260 83,900 39,351 719,511

All of the above assets are used for charitable purposes.

12 Debtors

Debtors
Prepayments and accrued income
Other debtors
Trade debtors
Taxation and social security
Creditors: amounts falling due within one year
Accruals and deferred income
Other creditors
Trade creditors		 2020
£
46,127
51,608
603		 2019
£
78,630
164,040
-
98,338 242,670
2020
£
24,894
10,330
2,441
49,699		 2019
£
20,488
12,675
2,699
29,454
87,364 65,316

44

MediCinema

Notes to the financial statements

For the year ended 31 December 2020

14 Deferred income

Deferred income comprises amounts received in 2018 relating to 2019

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 2020
2019
£
£
-
51,000
-
(51,000)
-
-
-
-

15a Analysis of net assets between funds (current year)

Tangible fixed assets
Net current assets
Net assets at 31 December 2020		 General
unrestricted
£
-
227,987		 Designated
£
-
200,000		 Restricted
Total funds
£
£
628,204
628,204
631,460
1,059,447
1,259,664
1,687,651
227,987 200,000

15b Analysis of net assets between funds (prior year)

Analysis of net assets between funds (prior year)
Net assets at 31 December 2019
Tangible fixed assets
Net current assets		 General
unrestricted
£
-
497,755		 Designated
£
-
-		 Restricted
Total funds
£
£
719,511
719,511
78,508
576,263
798,019
1,295,774
497,755 -

45

MediCinema

Notes to the financial statements

For the year ended 31 December 2020

Movements in funds (current year)
Total restricted funds
Total designated funds
General funds
Strategic Development
Designated funds:
Fixed Assets
Total funds
Total unrestricted funds
Gifts in kind
Royal Victoria Infirmary, Newcastle
Restricted funds:
Capital fund
Chelsea and Westminster Hospital
Southern General Hospital Glasgow
Serennu Children's Centre
St Thomas's Hospital
Guy's Hospital		 At 1 January
2020
£
7,393
2,045
14,298
-
9,772
10,000
35,000
-
719,511		 Income &
gains
£
26,822
44,893
15,654
6,568
33,086
32,323
569,418
114,741
-		 Expenditure
& losses
£
(26,352)
(46,938)
(29,952)
(6,568)
(25,522)
(25,480)
(15,000)
(114,741)
(93,360)		 Transfers
£
-
-
-
-
-
-
-
-
2,053		 At 31
December
2020
£
7,863
-
-
-
17,336
16,843
589,418
-
628,204
798,019 843,505 (383,913) 2,053 1,259,664
- - - 200,000 200,000
- - - 200,000 200,000
497,755 504,458 (572,173) (202,053) 227,987
497,755 504,458 (572,173) (2,053) 427,987
1,295,774 1,347,963 (956,086) - 1,687,651

The narrative to explain the purpose of each fund is given at the foot of the note below.

46

MediCinema

Notes to the financial statements

For the year ended 31 December 2020

16b Movements in funds (prior year)

Total restricted funds
Total designated funds
General funds
Total funds
Southern General Hospital Glasgow
Strategic grant
Fixed Assets
Royal Victoria Infirmary, Newcastle
Strategic Development
Total unrestricted funds
Serennu Children's Centre
St Thomas's Hospital
Guy's Hospital
Capital fund
Restricted funds:
Gifts in kind
Chelsea and Westminster Hospital
Unrestricted funds:
Designated funds:		 At 1 January
2019
£
4,211
4,139
26,530
-
-
-
36,593
-
814,251		 Income &
gains
£
20,834
73,894
49,422
14,312
55,687
55,105
-
35,000
165,321
-		 Expenditure
& losses
£
(17,652)
(75,988)
(61,654)
(14,312)
(45,915)
(45,105)
(36,593)
-
(165,321)
(99,620)		 Transfers
£
-
-
-
-
-
-
-
-
-
4,880		 At 1 January
2020
£
7,393
2,045
14,298
-
9,772
10,000
-
35,000
-
719,511
885,724 469,575 (562,160) 4,880 798,019
120,792 - - (120,792) -
120,792 - - (120,792) -
228,096 733,992 (580,245) 115,912 497,755
348,888 733,992 (580,245) (4,880) 497,755
1,234,612 1,203,567 (1,142,405) - 1,295,774

Purposes of restricted funds

The restricted funds relate to grants and income and expenditure for the operational cost of each MediCinema.

Grants and income received to contribute towards the running costs of the MediCinema at Royal Infirmary Hospital, Newcastle:

Masonic Charitable Foundation
Hadrian Trust
Other small grants and individual donations
Children in Need
Rothley Trust		 2020
2019
£
£
4,280
12,909
-
1,500
20,288
-
-
2,000
2,254
4,424
26,822
20,833

47

MediCinema

Notes to the financial statements

For the year ended 31 December 2020

Purposes of restricted funds (continued)

Grants and income received to contribute towards the running costs of the CW+ MediCinema at Chelsea and Westminster Hospital:

Other small grants and individual donations
CW+
Children in Need
Saturday Hospital Fund		 2020
2019
£
£
42,595
55,958
2,045
12,319
-5,000
253
617
44,893
73,894

Grants and income received to contribute towards the running costs of the MediCinema at Southern General, Glasgow:

Kilpatrick Fraser Charitable Trust
Merchant House of Glasgow
Schuh
Other small grants and individual donations
Glasgow Children's Hospital Charity		 2020
2019
£
£
12,813
27,238
-2,500
-2,500
-2,845
2,841
14,339
15,654
49,422

Grants and income received to contribute towards the running costs of the Serennu Childrens' Centre:

2020
2019
£
£
6,568
14,312
6,568
14,312
2020
2019
£
£
32,071
45,105
1,015
10,582
33,086
55,687
Other small grants and individual donations
Guy's and St Thomas's Charity
nts and income received to contribute towards the running costs of the MediCinema at St Thomas's Hospital:
Sparkle		 2020
£
6,568		 2019
£
14,312
6,568 14,312

Grants and income received to contribute towards the running costs of the MediCinema at St Thomas's Hospital:

48

MediCinema

Notes to the financial statements

For the year ended 31 December 2020

Purposes of restricted funds (continued)

Grants and income received to contribute towards the running costs of the MediCinema at Guy's Hospital:

Guy's and St Thomas's Charity
Real D
Other small grants and individual donations		 2020
2019
£
£
32,071
45,105
-10,000
252
-
32,323
55,105

The capital fund is income to fund the development of future MediCinemas.

Purposes of designated funds

In 2018 the Trustees designated funds to be used for the strategic development of new cinema sites. This was released in 2019 as a result of the COVID 19 pandemic but reinstated in 2020.

20 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

49

li MEDICINEMA feel better withfilm 50