WALES MILLENNIUM CENTRE (LIMITED BY GUARANTEE) GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 Registered Company Nurnber 3221924 Chority Number 1060458 CANOLFAN MILENIWM CYMRU
Wales Millennium Centre (Limited by Guorantee) Annual report and financial statements Year ended 31 March 2024 CONTENTS Welcome Charitable Objectives Our Impact Structure, Governance and Management 10 Financial Review Statement of Responsibility of the Trustees 21 Consolidated Statement of Financial Activities 22 Consolidated Balance Sheet 23 Company Bolonce Sheet 24 Consolidated Cash Flow Statement 25 Notes to the accounts 26 Independent Auditor's Report 46 CANOLFAM MILENIW14 CYMRV WALE5 MLLLENNIUM CENTRE
Wales Millennium Centre (Limited by Gvorantee) Annuol report and financial 5tatement5 Year ended 31 March 2024 WELCOME FROM THE CHIEF EXECUTIVE OFFICER This year, over 1.2m people experienced world-closs ort ond entertainment under our roof. Ticket soles for visiting commercial productions have returned to pre-pandemic levels and audiences rated their overall satisfaction with our offer ot 91 %. We presented international musicals ond opera in our iconic Donald Gordon Theatre and the best of drag, comedy• and burlesque in our Cabaret venue. We were successful in a major bid os thewelsh partner in a new £6m UK Immersive Arts program, alongside Water5hed'5 Pervasive Medio Studio. University of Bristol Nerve Centre in Belfast ond Derryj and Cryptic in Glasgow. This will enable us to further explore the intersection between immersive technology and live artistic work through research and development with artists. This will build on the succe55 of our digital arts venue, BOCS, which in 2023/24 took audiences of over 30,000 on journeys into new worlds. We attracted capital funding to commence work on our PlarfForm studios (transforming existing back of house spaces into permanent youth led studios), with new digital labs, rehearsal and performance oreas; targeted to grow our programme of free industry skills training forfuture talent. Own productions and experiences have welcomed lovers of Welsh homegrown talent to our stoges and further ofield. Critically acclaimed Es & Flo ployed in Cordiff ond the Kiln in London making it the second Woles Millennium Centre (WMC) production totronsferto London in successive years. Bronwen.. Dadeniwas a landmark Welsh language musical on an epic scale, a co-production with Fran Wen (Bangor), the show captivated over 8,000 people across Wales on tour. Communities, creative partners, and cultural residents who coll WMC home have energised our programme with collaborative showcoses, from Diwali to Butetown Cornivol and seasonal public art installations. Our 'pay what you can, community ticketing scheme has provided opportunities for over 7.000 people to attend performances in the Donald Gordon Theotre. Our 20th year, 2024, will be pivotal. We will be finolising plans with Cardiff City Council to build a new production and skills development facility which will enable us to develop and present large scale immersive digital and theatre experiences (Project Copella). Audiences will enjoy groundbreoking performances throughout the year, from our own adaptation of cult horror film Pontypool to the cultural phenomenon Hamilton, which mokes its Welsh debut. CANOLFAN NILÉNIWM CYMRU WALE5 MtLLENNtUM CENTRE
Wales Millennium Centre (Limited by Guarantee) Annual report and financial stotement5 Year ended 31 March 2024 Our other plans for 2024/25 include: A mojor new theatre co-production Nye with the National Theatre (London) which dromatises the life of Aneurin Bevan and the formation of the NHS written by Welsh writer Tim Price and storring Michael Sheen. Commencement of the UK Immersive Arts progrom which will enoble 200+ artists, young people and communities to explore their stories digitally through reseorch, training* and funding. Llois, our festival which celebrates the power of the human voice ocross oll our stages, will be our most talked-about edition through increased funding via Welsh Government ond Arts Council Wales alongside a strategic partnership with Cardiff Council. Finalise capital developmentplansfor Project Capella and continued refurbishment of the public spaces. Further development of our Platfform spaces, enabling 10.000+ young people and creatives to co- develop and access our programmes. WMC was aworded standstill revenue funding for 2024/25 of £3.5m from Arts Council Woles. As we seek to grow new income streams, the organisation has implemented a new leaner leodership structure to include a Chief Commercial Officer responsible for developing and maximising revenue opportunities across the business. Whilstthe economic outlook remains challenging, the Centre is confidentthat itcan deliver agoinst its future strategic object. es, ensuring that we can continue to fire the imaginations for future generotions. Mathew Milsom CANOLPAN MILEF41WM CYldR WALE5 MILLENNILIM CEIITRE
Wales Millennium Centre (Limited by Guarantee) Annual report and finonciol stotements Year ended 31 March 2024 OURCHARITABLE OBJECTIVES WMC aims to Inspire the Nation and Impress the World. We invite audiences to fire their imaginotion in a creative home for everyone by curating and presenting o world-class programme of critically acclaimed productions, from musical theatre and comedy to dance, cabaret, opera and an international festival. We provide supportfor artists and kindle emerging talent with fresh and popular productions of our own and provide opportunities for young people to develop skills for life ond skills for work through free courses and dedicated spaces. The Centre is o mojor tourist attraction for Wales. It aims to be internationally significant, renowned for excellence, leadership, and innovotion. Entertaining oudiences and ottrocting visitors from the whole of Wales and well beyond, it generates over £75m into the local economy annually and will continue to provide a creative home for some of Wales's leading arts and cultural organisations. We aim to: Be celebrated as one of the leading performing arts centres in the world Create innovative work that showcases Wales to the world Roise the aspiration of every young person in Wales Be accessible to everyone in Wales iydoli'r9e4 Tonto'r Fire the imu9ination ¢>r9raff oi es5 the The Trustees confirm that they are awore of the Charity Commission's general guidonce on public benefit, and they have referred tothe guidance when reviewing the Charity'saims and objectives and in planning future activities. CANOLFAN MILENIWM CYMRU WALES MILLE14NiUM ceNTAE
Wales Millennium Centre (Limited by Guorontee) Annuol report ond finoncial stotements Yearended 31 March 2024 OUR IMPACT IN 2023-24 AWORLD-LEADING PERFORMINGARTS CENTRE A5 a creative home for everyone, we take pride in the quality ond depth of our offer, maximising our impact for Wales. Pioneering experiences provide visitors with access to award-winning technology and world- leading theatre, while our innovative sustainability practices safeguard cultural access for generations to come. Throughout 2023-24, over 402,000 Donald Gordon Theatre audience members experienced 300+ world- class musical, opera, dance, theatre, and comedy performances on our largest stage. Highlights included our presentation of Branwen.. Dadeni, the first visit to Wales of Disneys Aladdin and a return vislt for Je5US Christ Superstar, while our internotionol festival Llais attracted over 19,000 people to inspiring performonces, discussions, and workshops across the venue. Our unique immersive art space, BOCS, is a visitor attroction that has helped us to establish a powerful network of producing artists, companies and venues working in this fast-growing field. We are capturing ond sharing insight and learning through our research programme to inform our design and build of a new larger scale facility for the presentation and production of immersive experiences (Project Capella). Our new Cabaret venue continues to thrive and develop as a home for vibrant, eclectic and diverse talent. It attracts a significantly younger audience than the Donald Gordon Theatre with 38% aged under 35 compared to just 11% of DGT bookers, while 42% of Cabaret attendees identify as gay or bisexual, ompared to just 7% of the DGT audience. 2023/24 2022/25 2021/22 Total visits to Woles Millennium Centre (Inc ticket buyers) 1,173,535 1,126,471 317,947 Donald Gordon Theatre: Number of performances 312 317 147 Audience Numbers 402,667 426,826 130,914 Numberof Events 15 19 Event Attendees (where ticketedl 21,546 32,037 Weston Studio: Performances in Weston Studio 53 64 81 Audience Numbers 6,965 8,247 7,283 Caboret: Performances in Cabaret (opened Feb 23) 69 27 Audience Numbers 6,008 2,713 CANOLFAN MILENIWM CYMRU WALE5 MILLENNIUM CENTRÉ
Wale5 Millennivm Centre (Limited by Guorantee) Annuol report and finoncial stotements Year ended 31 March 2024 Over the post year we have emborked on new initiatives that will help us reach carbon neutral stotus, including representing Wales's theatres in the implementation of the new Theotre Green Booki joining the Cordiff District Heat Network ond generating energy from our award-winning rooftop solar panels. INNOVATIVE NEWWORKTHATSHOWCASES WALESTOTHEWORLD This year, we have created 3 WMC productions ond digital experiences enjoyed by over 35,800 people. We continue to invest in ourfuture work supporting 5 reseorch ond development projects and providing support to artists based in Wales to develop and explore their proctice through access to free space and access to producing support and guidance. Branwen.. Dadeni- is the largest and most successful Welsh language musical to have been staged. A co- production with Fran Wen (Bangor), this main stage epic employed 47 Welsh speaking creatives and o totol of 71 freelancers with much of the team being under 40 yeors old and 34 under the age of 30. A neor-sell- out national touring production, it drew 8,000 audience members across Cardiff, Bangor, and Aberystwyth. Our production of Es & Flo, a tale of older lesbian love, attrocted 5,800+ audience members at our Weston Studio and the Kiln Theatre, London. Our third successful Christmas Cabaret production The FirstXXXmas was seen by 2,800 peoplej providing an opportunity for Cabaret artists to be ombitious and grow the scale and reach of their work. WMC is leading the way in developing immersive work inwoles ond has builta reputotion for its producing in this area across the UK and internationally. Our unique digital venue, BOCS presents free immersive digital experiences mode by ourselves ond other industry leaders across the world. The space has demonstrated a keen appetite for innovotive new forms of storytelling, with half of its audiences visiting specifically to experience BOCS. A third of this audience is new to WMC and it is both younger and more ethnically diverse than across the rest of our progrommes. Positive responses testify to the growing demand forthis art form as 93% tell ustheywantto see more experiences likethese on offer in the venue in the future. RAISING THE ASPIRATIONS OFYOUNG PEOPLE We support Wales, young people to expand their creotive confidence, skills sociol networks, and career pathways through collaborative learning experiences. This year, over 4,100 young people have been inspired here ond across partner venues in Wales, and over 30 have gained paid roles and opportunities. We worked with our Youth Collective across our programmes to ensure that young people's voices are embedded in our organisational culture and decision-making processes. 7 young technical apprentices, who together have gained 11,700+ paid hours of world-class technical theatre experience with us and national partner venues. CANOLFAN MILÉNIWM CYMAU WALES XILLENTr4ILFM CENTRE
Wales Millennium Centre (Limited by Guarantee) Annual report ond finoncial statements Yearended 31 March 2024 600 young creotives were empowered to curate events and showcase theirtalents within our building. 130 Creative Voice graduates trained in radio, music, and visuol ond digital arts. The vast majority reported that their creative confidence increased over the 12-hour in-depth industry led training courses. 11 young people were allocoted poid roles in Rodio Platfform, our Aria award winning youth-led radio station. PIONEERING STUDIOS FOR YOUNG PEOPLE BYYOUNG PEOPLE In 2023 we started work on our physicol infrostructure and fundraising strategy required towards our new capital development Platfform. PlarfForm will be a unique space designed and led by young people,'a space to learn, a 5paceto be and a spoceto grow,. A homeforour creative learning programmes, itwill a150 provide state of the art facilities for young people to hone their creative practice and develop skills for work and for life. Platfform will house state of the ort facilities including Radio studios, a Performance Space, XR Studio, Editing Suites, Music production and recording facilities as well as social and well-being spaces. ACCESSIBLETO ALL Working with community, nationol, and international partners, and our eight cultural residents, we chompion the voices of Wales's many communities by creating shared joyous celebrotions and experiences for everyone in our public building. We will continue our commitment to the Welsh languoge, ensuring that we are an exemplary bilingual organisation. We will continue to work with the Welsh Longuage Commissioner in adhering to the Welsh longuoge standardsthat apply. We shared 140+ experiences and cultural celebrations with over 7,300 people in our building while our'poy what you can, ticket scheme saved community groups £101,200 in world-class performances across our spaces. 270+ volunteer5 shared the joy of live theatre with our audiences, along with over 22,200 collective hours of their time, skills, and passion for the arts. Our participatory budgeting scheme has animated our public spaces. putting co-design and collaboration at the forefront of our practice. We have supported over 10 exhibitions disploying ortists, work ocross our building, many of whom may never have before stepped through our doors. CANOLFAN MSLÉNIWM CYMIILI WALE5 MILLEt4NIUM CENTRE
Wales Millennium Centre (Limited by Guarantee) Annuol report and financial stoternents. Year ended 31 March 2024 OURPEOPLE Removing barriers at WMC Our role as a creotive home for everyone con only be achieved through an equal, fair, and inclusive organisation where everyone can be themselves and express their creativity. We have collaborated with artistS1 young people, and communitie5 to help them tell their stories in their own way. We have opened our building as a community resource, providing spaces for people to celebrote and share their cultures, skills, and experiences. This has brought the building to lifethrough workshops, public art, and events. Our efforts to remove social mobility borriers include initiotives like our community seoting scheme, ensuring everyone who has a financial barrier con take up the offer. However, our commitment to Equality. Diversityi ond Inclusion (EDI) extends beyond public spaces and productions. It encompasses our governance, organisational structure, and decision-moking processes. To truly celebrate diversity, we must equally focus on our strategy, systems, and processes, as well as our culture, values, and behoviours. Sustained inclusion can only be achieved when Strategy and culture are aligned. WMC Diversity & Inclusion Action Plon In our last action plon, we concentrated on loying the foundations of our Diversity and Inclusion strategy at WMC. Our focus was on embedding best practices and creating o more equitable future for our employees through diverse and representative recruitment practices. We adopted positive action to encourage opplications from underrepresented group5, promoting a culture of inclusion where employees can contribute freely and equally. Key initiatives included: Workforce networks: We continued running our diversity and inclusion employee network, Newid, which includes representatives from all departments, building relationships, creating learning opportunities and encouraging discussions on diversity and inclusion. Newid's sub-groups focus on specific needs related to disability, roce & ethnicity* LGBTQ+, gender, neurodiver5ityi SOCIO- economic position, and the Welsh language. D&1 working group= This working group is dedicated to driving the D&1 action plan. To toke ownership of responsibilities across various departments and ensure the successful implementation and integration of D&1 best practicesthroughout our organisation. Career enlightenment: We offered Valued Partnerships introductory sessions to secondary schools, supported by Careers Woles, to introduce young people to opportunities at WMC. This ensures that students in oreas with limited orts provision see potential careers within the Creative Industries, enhoncing the pipeline of diverse tolent for the future. Apprenticeships: We continued ourTechnical Apprenticeship Programme in partnership with CAVC. These programs offer unique opportunities for young people to pursue careers in the Creative Industries, ensuring a diverse future workforce. CA140LFAN MILENiwf4 CYMRU WALES MIILENIIIUM CENTftE
Woles Millennium Centre (Limited by Guorantee) Annual report and finoncial statements Year ended 31 March 2024 Commitment to learning: Facilitated lived experience dialogues have created sofe spaces for conversations, helping identify the need for positive change. The sessions have been led by individuals who themselves have their own experiences of barriers and this hos been helpful to open conversations. To ensure our work is embedded into WMC'S ways of working ondto create an environment where everyone feels they belong, we must continue to move forward and embed positive change. Through these ongoing efforts, we oim to svstain and odvonce our commitment to diversity and inclusion. Key initiatives include: Role modelling leadership: Engagingtop leadership in inclusion as part of ourambition and strategy will aid in future planning. Understanding needs: We will better understond the needs of our people and visitors, ensuring our environment is free of barriers to engagement. Encouraging learning- Empowering everyone to challenge behoviour, be inquisitive, and explore solutions individually, as inclusion is everyone's responsibility. Welsh language standards: Upholding high standards for the Welsh language and offering a bilingual experience to all customers, visitors, and staff, respecting language choice. Building capability: Through allyship ond conscious inclusion, we will increase access, resources, and opportunities for all, focusing on underrepresented groups. Aligning systems and structures: We will collect doto to highlight gaps, demonstrote progre55, and hold ourselves accountable. Partnerships: We will continue our partnerships with Diverse Cymru, Stonewall and Disability Cymru, providing us with best practice ond feedback on our octivities and plans. CANOLFAN MILENIWM CYMALI WALES MILLE14MIUM CEIITRE
Woles Millennium Centre (Limited by Guarantee) Annual report and financial statements Year ended 31 March 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT OUR STRUCTURE The Charity is the ultimate parent undertaking of three wholly owned svbsidiaries; Wales Millennium Centre (Troding) Limited, WMC Productions Limited. which is 100% owned by Wales Millennium Centre (Trading) Limited, and Wales Millennium Centre (Theatre) Limited. Wales Millennium Centre (Trading) Limited carries out non-charitoble trading activities for the Charity. There is a deed of covenant in place between the Charity ond Wales Millennium Centre (Trading) Lirnited whereby the profits of Wales Millennium Centre (Trading) Limtted are transferred to the Charity by way of charitable donation. The accounting profit for 2023-24 of £0.9m will be gifted to the parent company by way of charitable donotion. WMC Productions Limited creates productions commissioned by the Charity, with the Charity paying WMC Productions Limited o commissioning fee for this work. WMC commissioned the production of three shows during this financial year; Es ond Flo in Moy and June 2023, Bronwen." Dadeni in November 2023 ond our Christmos Cabaret The FirstXXXmas in December 2023. The total commissioning fee payable for the year was £1.02m (2023.. £662k). Wales Millennium Centre (Theatre) Limited remained dormant throughout the year covered by these financial statements. It is onticipated that this charitable company will become active in future years os we progress our plans to build a new production and training focility (Project Copella) in Cardiff with support from Cardiff City Council. CANOLFAM MILÉNIWK CYMRU WALÉS MILLENNIUM CENTRE io
Wales Millennium Centre (Limited by Guarantee) Annual report ond financial staternent5 Yearended 31 March 2024 OUR TRUSTEES The Trustee5 who held office during the year up to the date of approval of the financial statements were as follows: Finance & Audit Committee Governance & Compensation Committee Peter Swinburn Carol Bell (retired November 2023) Geraint Anderson (retired December 2023) Rita Singh Joanno Rees Nicky Goulder Amit Kachowoho Rhodri Talfan Davies" Julie-Ann Haines Nan Willioms (appointed July 2023) Vivian Murinde (appointed September 2023) Geraint Jones (appointed December 2023) *does not hove ony Committee membership The Board recognises the importance of effective corporate governance. Accordingly, it has established o number of Committees that meet on a regular basis, appropriate to the need of the Charity. The following Committees produce recommendations to the full Board in accordance with their terms of reference and met with the following frequency: Finance & Audit Committee Governonce & Remuneration Committee Quarterly Bi-onnvally Board and all subcommittee meetings in 2023/24 continued to be conducted in a hybrid format. CAtr40LFAN MILEIIIWM CYMRU VIALES MILLENNIUM CENTRE li
Wales Millennivm Centre (Limited by Guarantee) Annual reportand financiol stotements Year ended 31 Morch 2024 TRUSTEE APPOINTMENT The appointment of new Trustees to the Board is the responsibility of the members, who receive recommendations from the Governance ond Compensation Committee. The composition of the Board reflects the bolance of skills and attributes needed at any particulor time to oversee the management and operation of the Charity, whilst having regard for the need for a diversity of Trustees. The role of the Governance & Compensation committee is to ensure that this balance 15 maintained. The formal procedure for inducting all new Trustees into the organisation involves meetings with the Chair of the Board, current Trustees, the Strategic Leadership Team, and other senior staff as appropriate. Atour of the facility is given os port of the induction process. In addition, all Trustees are provided with o copy of the Wales Millennium Centre Trustees Briefing Pock, which includes: Corporate Governonce Stotement. Articles of Association. Membership and Terms of Reference of Committees. Directors. Report ond Financial Stotements forthe previousfinanciol year. Current Annual Business Plan and 5 Year Strotegic Plan. Charity Commission Guidance Note CC60- Hallmarks of an Effective Charity (English/ Cymraeg). Charity Commission Guidance Note CC3- Responsibilities of Chority Trustees (English/ Cymraeg). Charity Commission Guidance Note CC8- Internal Financial Controls for Charities (English/Cymraeg) Wales Millennium Centre's Trustees Code of Conduct incorporating Board policies. Summary of Organi5ation Structure. Contact List of Trustees and Senior Manogement; and Summary of Resident Organisotions and brief terms of agreement with Wales Millennium Centre. Trustees ossess their current skills ond their training needs on an annval basis and where necessary appropriate troining programmes are developed and implemented. The Board's membership includesthose with appropriote professional experience and knowledge of theatre, arts, culture, legal, estates, commercial, finance, and strategic business matters. The Board is responsible for approving overall policies, plans. and organisational priorities. The Strategic Leadership Team of the Charity is responsible for the implementation of the Board's policies and the management of the Charity. CANOLFAN MILEMIWM CYMRiI WALÉS MILL£tr4141UM CE14TtiE 12
Wales Millennium Centre (Limited by Guorantee) Annval report and financial stotement5 Year ended 31 March 2024 TRUSTEE RESPONSIBILITIES The Boord of Trustees is ultimately responsible for guaranteeing that the organisation has in place an appropriote system of controls, finoncial and otherwise, to provide reasonoble assurance that: The Charity is operating efficiently and effectively; Its assets are safeguorded against unauthorised use or disposition; Proper record5 are maintained. and financial information used within the charity, orfor publication, is reliable," The Charity complies with relevant lows and regulotions. In ossessing what constitutes reasonable assurance, the Boord hos regard to the materiality of any relevant financial risks; the likelihood of such risks crystallising and the cost and benefits of aspects of the internol control system. The effectiveness of the system of control is reviewed regularly by the Finance & Audit Committee, and objectively reviewed through an internal audit review programme conducted by external professional advisors. The internal audit plan resumed during 2023-24 with three audits being conducted: Cyber: Microsoft 365, Health and Safetyand VAT. A rolling three-year programme of workwas established in 2023/24 and will include at least one Finance and one Cyber related audit each yeor. The Board ha5 instituted a formal risk manogement process to assess business risks and implement risk management strategies. This involves identifying the type of risksthe charityfaces, prioritising them in terms of potential impact and the likelihood of occurrence and identifying meons of mitigating those risks. Management regularly reviews organisational risks, and the top 10 risks ore reported to, and reviewed by both the Finance & Audit Committee and the full Board. In addition, the adequacy of the Charity's current internal controls is regularly reviewed as part of this process. The Trustees are pleosed to report that the Charity's System of internal financiol controls conforms to guidelines issued by the Charity Commission. Following its review of the risks facing the charity, the Board and management have identified the principal risk5 and uncertainties reloting to the charity and hove taken appropriote steps, where possible, to mitigate them. These organisational risks to the organisation ore reviewed monthly by the management teom. In addition, the Trustees have considered the guidance for Directors contained within the Combined Code. They believe that although this is not mandatoryfor the Charity, as a public interest body, it should aspire to these guidelines os best practice, and the Charity has incorporated the three main principles of board leadershipi effectiveness. and accountability into its Corporate Governance Statement. As of 31 March 2024, WMC had a board of 10 Trustees. The Board effectiveness is reviewed on ot least an annual basis. The Board composition is formally assessed preceding the appointment of a new trustee, to ensure diversity maintained/improved. and appropriate expertise isobtained. Recruitment of new members IS then targeted, in line with our equality strategy plan, to ensure thot o diverse board with appropriate skills is maintained. CANOLFAN MILENIWM CYMRU WALES MILLENP4IUM CE14TRE 13
Wales Millennium Centre (Limited by Guarantee) Annual report and financial statements Year ended 31 March 2024
| Diversity data WMC (March 2024) Population of 10 WMC (March 2023) Population of 9 |
Diversity data WMC (March 2024) Population of 10 WMC (March 2023) Population of 9 |
Diversity data WMC (March 2024) Population of 10 WMC (March 2023) Population of 9 |
|---|---|---|
| Gender: Male Female 40% 60% 44% 56% |
||
| LGBTQ+ 0% 0% |
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| Registered disabled 30% 0% |
||
| Black, Asian, and ethnically diverse 30% 22% |
||
| Religious affiliation 70% 56% |
||
| Age – 35-49 50+ 40% 60% 33% 67% |
||
| Welsh speakers | 40% | 44% |
A quarterly reporting regime is in place between the Charity and its key stakeholder, Arts Council of Wales (ACW) along with an annual report. The annual report assesses performance against agreed objectives and validate objectives for the coming year. WMC has met the key objectives set with ACW and has set out objectives for the future to deliver on our vision but also within the criteria of the investment review.
The financial support of ACW has been critical to us getting through the past few financial years and we are extremely grateful for their ongoing support.
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Wales Millenniurn Centre (Limited by Guarantee) Annval report and finoncial statements Yearended 31 March 2024 PRINCIPAL RISKS AND UNCERTAINTIES The Board has instituted a formol risk management process to asse55 business risks and implement risk management Strategies. This involved identifying the types of risks the company faces, prioritlsing them in terms of potential impact and likelihood of occurrence and identifying means of mitigating those risks. Risks were reviewed, updoted ond shored quarterly at Finance & Audit Committee meetings. Current key risks, are: Risk of cyber crime Risk of terrorist attack Increased costs due to inflationary pressures, utility Costs and real living wage Over relionce on the Donald Gordon for commercial revenue Capital infrostructure monagement of aging building Risk of fundraising income targets not being met Non-compliance penalties Diversion of funds and management as Capital project works increose Lack of charitable impact Reliance on public funds With Government budget cuts and amid the risk of economic recession The adequacy of the company's current internol controls is regulorly reviewed as part of this process. The directors are satisfied that there is a strong internol control environment. CANOLFAN MILENIWM CYMRU WALES MILLEMNEUM CENTRE 15
Wales Millennium Centre (Limited by Gvarontee) Annvol report and financial 5totements Year ended 31 March 2024 FINANCIAL REVIEW During the year, the Charity had income of £23.1 m (2023: £26.5m) and incurred expenditure of £24.5m (2023: £27.4m). Expenditure includes depreciation ond amortisation of £2.2m (2023: £2.3m) both of which are non-cash items. The financial year therefore shows a net income of £0.8m (before depreciation and amortisation). The Charity's principol financial management policies are: To meet the annual operating budget, capital plans and cash flow; To manage Charity's reserves in line with Charity Commission guidance and our three-year strategic plan; Applying cash surpluses to ensure the maintenance ond development of the Charity and to invest in furtherance of the choritoble objectives," Establishing financial, creotive, business planning, marketingi commerciol, personnel and fundraising polices to assist the Trustees in meeting their objectives, in keeping with best corporate governance and proctice standard; Adoption of corporate governonce and environmental policies to best practice standard5. The principal funding sources Within the business for the year ended 31 March 2024 (shown proportionately again5ttotal income) are theatre income 58% (2023: 66%); commercial income 18% (2023: 13/); donations and sponsorship income 5% (2023: 4%) and Grants, Arts Council Wales ond Government support 19% (2023: 170/0 The current annuol Arts Council of Woles (ACW) revenue funding agreement to 31 March 2024 (£3.6m) enabled the Chority to meet its contractual obligations throughoutthis year and deliver on its objectives. There is a 50-year capital asset plan for the Chority that indicates on annual repair and maintenance requirement of circa £500-600k. ACW (vio Welsh Government) hos agreed an annual capitol subsidy of £300k per annum. This capital grant, along with a continued capital maintenance contribution from the Charity and its Residents will enable the building to be maintained in line with the Capital 50 plan in the medium term. The directors recognise the risk posed by high levels of inflation on repair and maintenance costs and required on a 20-yeor-old building ond will continue to review the reserves to ensure they remain appropriote. Additional funds have been designated to ensure odequote investment in the charity's assets in the shortterm. Finance & Audit Committee is responsible for providing oversight of the Centre's financial investment strategy to the Board. The investment objectives are to monage the Centre's long-term cash resources to generate income, within o prudent and careful strategy, taking note of any ethical considerations before adding new investments to the porrfolio. At the year end. the Centre held cash deposits and Managed funds as detailed in Note 20. CANOL¥AN MILENIWM CYMRII WALES MILLENP4IUM CENT%E 16
Wales Millennium Centre (Limited by Gvarantee) Annual report and financiol stotements Year ended 31 March 2024 RESERVES The ability to establish financial reserves is a consequence of achieving on operating surplus in ony given year. We anticipate that we will ochieve a surplus in 2024125 which will be used to fund the final works of our ongoing front of house redevelopment. Our reserves policy is to allocate surplus to copitol maintenance in the first instance, to maintain standords in the medium term and are then allocoted in furtherance of the charitable objectives, primarily in respect of our creative ombition and in roising the aspirotions of young people in Wales, including copital investment. The Trustees have reviewed the Charty's needs for reserves in line with the guidance issued by the Charity Commission, and considering the current economic conditions. Trustees have determined that an oppropriate level of free reserves (excluding designated reserves) to address operational risks for the monagement of unexpected reductions in income or increases in expenditure, should equateto three months running costs taking account of the current economic conditions and our business model. The Charitys current free reserves Position is £2.1 m, this is calculated using the unrestricted Net Current Assets of £1.3m plus £0.8m investment account (2023: £1.3m). Within this figure, the Trustees have designated £0.6m for essential capital maintenonce (2023: £0.6m). ANOLFAN MILEMIWM CYMRU WALES MILLENNJUM CEIITRE 17
Wale5 Millennium Centre (Limited by Guarantee) Annual report ond financial statements Yeor ended 31 March 2024 POST BALANCE SHEET EVENTS Work on the project to redesign the Front of House commenced in August 2022 and all work on Phase 1 a was completed bythe end of July2023 with the completion of members lounge. Workon phase 1 b will begin later in 2024/25 with the total cost of this project to be in the region of £4.8m. KEY MANAGEMENT PAY AND REMUNERATION The Governance & Compensation Committee decide the key management pay and remuneration based on the following key factors; current market conditions and demands, affordability, current internal pay rates and benchmarking with other similor organisations. Wales Millennium Centre continues to be an accredited Real Living Woge employer, paying the new rate from April 2024 following its announcement. Following the announcement of a 10% increase in the Real Living Wage in October 2023, a review of the salory structure was conducted between January and March 2024. As a result. an average pay increase at 1 April 2024 for eligible employees of 6% for permonent members of staff was awarded, with individual increases ranging from 0% - 10%. In addition, oll cosuols paid Real Living Wage saw their poy increose by 10%. The senior leadershipteam were awardedtheircontractuol Performance Related Payfor 2022/23, receiving payments during June 2023.The Performance Related Pay award for 2023/24 ha5 been agreed and was paid in April 2024. AUDITORS The Trustees who held office at the date of approval of the Trustees, report confirm that, so far as they are each awore, there is no relevant audit information of which the company's ouditors are unaware,. and each Trustee has token all steps that he/ she ought to have taken as a Trustee to make himself / herself aware of any relevant oudit information and to establish thatthe componqs auditors are aware of that information. Pvrsuantto Section 487 of the CompaniesAct 2006, the ouditors will be appointed atthe Company's Annvol General Meeting. ANOLFAN MILENIWM CYKRLI WALES MLLLEtr4M4UM ceNTRE 18
Wales Millennium Centre (Limited by Guarantee) Annuol reportand financial statements Yeor ended 31 March 2024 CONCLUSION Throughout 2023/24 we worked to strengthen Wales Millennium Centre as an asset and resource used by artists, communities and young people. We are committed tothe principlessetout in ACW'S cultural contract to support o more diverse, inclusive ond sustainable sector. We will reflect the diversity and richness of our community as we create work thatfulfils our mission to inspire the nation and impress the world. We want to be a creative home for everyone, we want to fire the imaginations of ortists, young people, communities ond audiences by creating unique experiences on our stages, in our public space5 and through our programmes. Our programme will continue to include the very best West End shows, alongside public art informed by porticipotory budgeting, creative learning experiences designed and developed by young people and growing support for artists and creative practitioners. We will continue to trial and present immersive experiences that will further intrigue and diversify our audiences. These statements constitute the Strotegic Report and the Directors. report required under the Companies Act 2006. By order of the Boord on 24.09.2024 Peter Swinbur Chair Bute Place Cardiff Bay Cardiff, CF10 SAL CANOLFAM MILENIWM CYMRU VIALES MILLÉNF41UM CENTRE 19
Wales Millennium Centre (Limited by Guorantee) Annual report ond financial stotements Year ended 31 March 2024 Reference and Administrdtive Detai15 CharTty Name: Wales Millennium Centre (Limited by Guarantee) Charity Number: 1060458 Compony Number: 3221924 Country of Incorporation: Wales Chair Mr P Swinburn Secretory Mr G R Tilsley Lewis Silkin LLP Southgate House, Wood Street Cardiff, CF10 1EW Senior Leadership Team: Mathew Milsom, Chief Executive Officer Graeme Farrow, Chief Creative and Content OFFicer Lizz Munday, Chief Commercial Officer Principal address and registered office Bute Place Cardiff Bay Cardiff, CF10 SAL Independent auditors- External: BPU Ltd Chartered Accountants Radnor House Greenwood Close Cordiff, CF25 8AA Internal: RSM Suite 205 Regus House Malthouse Avenue Cordiff Gate Business Park Cordiff, CF23 8RU Bankers Lloyds Banking Group 1 Queen Street Cardiff, CF10 2AF Solicitors Geldard's LLP Dumfries House Dumfries Place Cordiff, CF10 3ZF Specialist Asset Manager Sorosin & Partners LLP Juxon House, 100 St Paul's Churchyard London, EC4M 8 CAt40LFAN MILENIWM CYMRV WALES MILLEt4NIUM CENT%e 20
Wales Millennium Centre (Limited by Guorontee) Annual report and financial stotements Yeor ended 31 March 2024 STATEMENT OF RE5PONSIBIUTY OF THE TRUSTEES OF WALES MILLENNIUM CENTRE (LIMITED BY GUARANTEE) IN RESPECT OF THE TRUSTEE'S ANNUAL REPORT AND THE FINANCIAL sfATEMENTS. The Trustees are responsible for preparing the Trustees. report and consolidated financial statements in accordance with opplicoble low ond United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the Trvstees to prepare financial statements for each financial year which give a true and fair view of the state of offairs of the group and the charity and of the incoming resources and application of resources of the group and of the charity for that period. In preparing these fsnancial statements, the Trustees are required to: Select suitable accounting policies and then apply them consistently. Observe the methods and principles in the Charities SORP. Make judgement5 and estimatesthat are reasonable and prudent. State whether applicable accounting standards, comprising FRS 102, have been followed, subject to any moteriol deportures disclosed ond exploined in the financial statements. and Prepare the finonciol statements on the going concern basis unless it is inapproprioteto presume that the group and the charity will continue in busines5. The Trustees are responsible for keeping proper accounting recordsthat disclose with reasonable accuracy at any time the financial position of the group and the charity and enable it to ensure that the financial statements comply with the Charities Act 2011. the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. The Trustees are also responsible for safeguarding the assets of the group and the chority and hence for taking reasonable steps for the prevention and detection of fraud ond other irregularities. The Trustees are responsible for the maintenonce and integrity of the group and the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of finoncial stotements moy differ from legislation in other jurisdictions. CANOLFAtrI MILEtr41WM CYMAV WALIS MILLÉNNIUM CENTRE 21
Wales Millennium Centre (Limited by Guorontee) Annual report and financial statements Year ended 31 March 2024 CONSOLIDATED STATEMENTOF FINANCIALACTIVITIES (INCLUDING INCOME & EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 37 MARCH2024 Note Unrestricted Restricted incame income funds funds Total fvnds Unrestricted income funds Restricted income funds Total fvnds 2024 2024 2024 2023 £'ooo 2023 £'i)00 2023 £'ooo Income from charitable ortivities Donotions Sponsorship Grants receivable 365 364 3,657 504 869 364 4.313 320 280 3,688 550 850 280 4,461 676 773 Income from other troding activities: Cateringi merchandising and facilities hire Rentol Interest & investment income receivoble Theatre income 3.608 3.132 3,132 235 250 235 250 200 (24) 200 (24) 13,492 13.492 17,637 17,637 Total income 21,951 1.180 23,131 25,233 1,303 26,536 Expenditure on raising funds Charitable octNitie5 (inclvdes depreciation of £2.2m;12023: £2.3ml) 9,078 740 9.818 8.252 1,635 9,887 Troding activities Tox chorge/(ollowance) for the yeor 15.247 (506) 1 S,252 (506) 17,757 1280) 17,757 (280) Total expenditure expended 23.819 745 24,564 25,729 1,635 27,364 Net (expenditvre) / income ond rtet movernents in funds for the year (1,868) 435 (1,433) (496) (332) 1828) Reconciliation of fvnds Total fund5 brotjght forward 43.119 45,007 43.615 2,220 45,835 Total funds carried fonvord 41.251 2.323 43,574 43.119 1.888 45,007 All income und expenditvre were derived from continuing octivities. The company hos no recognised gains or losses other than the above results forthe two years. The notes on pages 26 to 46 form an integrol part of these financiol statemen15. CA140LFAN MtLENJWM CYKRiF WALES MILLENNIUM CENTRE 22
Wales Millennium Centre (Limited by Guorontee) Annual report and finonciol statements Yearended 31 March 2024 CONSOLIDATED BALANCE SHEET ASA T37 MARCH2024 Note Group 2024 £'ooo Group 2023 £'ooo Fixed assets Intangible as5et5 Tangible assets Investments 10 20 40,483 745 41,541 672 Total Fixed Assets 41.228 42,213 Current assets Stock Debtors Cash at bonk and in hand 55 2,175 11,256 62 2,115 9,142 72 73 Total Current Assets 13,486 11,319 Liobilities Creditors folling due within one year 14 (11,140) (8,525) Net Current Assets 2.346 2,794 Total assets less current liabilities 43,574 45,007 Net Assets 43,574 45,007 The funds of the charity Unrestricted funds Restricted funds 77 77 41,251 2,323 43,119 Total Charity Funds 43,574 45,007 These financial statements were approved by the Board of Trustees on 24/09/2024 and were signed on its behalf by.. Peter Swinburn Chair CANOLFAN MILENIWM CYMAU WALES MILL£N14tUM CENfRE 23
Wales Millennium Centre (Limited by Guarantee) Annual report and financiol statements Yearended 31 March 2024 COMPANY BALANCE SHEET ASA T31 fvIARCH 2024 Note Company 2024 Company 2023 £'ooo Fixed assets Tangible assets Investments io 20 41,474 674 747 Total Fixed assets 41,187 42,148 Current assets Debtors Cash at bank and in hand 12 13 1,615 1,094 1,369 1,445 Total Current Assets 2,709 2.814 Uabllities Creditors falling due within one year 14 {1.180} {1,8551 Net Current Assets 1,529 959 Total assets 42,716 43,107 Creditors: falling due after more than one year 15 121 Net Assets 42.714 43,105 The funds of the charlty Unrestricted funds Restricted funds 17 17 40,391 2.323 41,217 1,888 Total Charfty Funds 42.714 43,105 These financial statements were approved by the Board of Trustees on 2410912024 and were signed on it5 behalf by: Peter Swinburn Chair Reglstered Company number 3221924 Registered charity number 1060458 CANOLFAN MILENIWM CYMRU WALES MILLÉNNIUM CENTRE 24
Wale5 Millennium Centre (Limited by Guarantee) Annvol report and financial statements Year ended 31 March 2024 CONSOLIDATED CASH FLOW STATEMENT For the yeorended 37 Mt7rch 2023 Note Group 2024 Group 2023 £'ooo Cash flows from operating octivities Net income/(expenditure) forthe yeor (1.433) (828) I nterest receivable Depreciation and amortisation Loss on disposal of fixed asset5 Decrease/(increase) in stock Ilncrease)/decrease in debtors IDecrea5e)/increase in creditors IGoin)/loss on revaluation of investment Net cash inflow from operating activities (250) 2,234 62 (24) 2,346 109 (9) (535) (3,897) 27 (2,811) 9&10 70 72 74 160) 2.615 {73) 3.102 Cash flows from investing artivities Interest received Acquisition of fixed assets Disposal of fixed assets Impairment of fixed osset Dividend received Net cash outflow from investing activities 250 (1,243) 24 (3,634) 9&70 (988) (3.602) Increose in cash and cash equivalent5 in the year 2,114 (6,413) Cash ond cash equivalent5 at beginning oftheyear 9,142 15,555 Total cash ond cash equivalents atthe end of the year 11,256 9,142 ANALYSIS OF CHANGES IN NET DEBT At 1 April 2023 Cash flows Other non cosh changes At 31 March 2024 Cash and cash equivalents Cash Overdrafts Cash equivalents 9,142 2.114 11,256 9,142 2,114 11,256 Borrowings Debt due within one yeor Debt due after one yeor Total 9,142 2,114 11,256 CANOLFAN MILENIWM CYMRU WALES MILLENNIUM CEWT8E 25
Woles Millennium Centre (Limited by Guarantee) Annual report and financial 5totements Yeor ended 31 March 2024 NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS (FORMING PAR T OF THE FINANCIAL STA TEMENTS) 1. ACCOUNTING POLICIES The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Group's financial statements. BASIS OF PREPARATION The financiol statements have been prepared in accordance with Accounting and Reporting by Charities: Stotement of Recommended Practice applicable to charities preparing their Finoncial Statements in accordance with the Financial Reporting Stondord opplicable in the UK and Republic of Ireland (FRS 102) (effective 1 Janvory 2015) - (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Wales Millennium Centre meets the definition of a public benefit entity under FRS 102. Assets and liabi lities are initially recognised at historical cosf or transaction value unless Otherwise stated in the relevant accounting policy notes. The Company hastaken odvontage of the exemption contained in FRS 102 to only present a consolidated cash flow statement. BASIS OF CONSOLIDATION The Group financial statements consolidate the Financial Statements of Wales Millennium Centre (Limited by Guarantee) and of its subsidiaries, Wales Millennium Centre (Trading) Limited, WMC Productions Limited and Wales Millennium Centre (Theatre) Limited, drawn for the year ended 31 March 2024. No separate statement of financial activities and income and expenditure account is presented for Wales Millennium Centre (Limited by Guarantee) as permitted by s408 of the Companies Act 2006. GOING CONCERN The Arts Council of Wales (ACW) have confirmed o newfunding arrangement until 31 March 2025. This settlement hassecured Wales Millennium Centre annual revenue funding of £3.5m from ACW along with annual capital funding of £0.3m. The Trustees have concluded that the organisation will continue to remain in operational existence for at least 12 months from the date the financial statements ore signed. Therefore, these financial statements are prepared on a going concern basis. KEY ESTIMATES AND JUDGMENTS Preparation of the financial stotements requires management to make significant judgements and estimotes. The items in the financial statements where these judgements and estimates have been made include: Provisions for bad debts- all provisions have been made with information ovailoble as at the date of the signed statements. CANOLFAN MILENIWM eYMAU YIALES MILLENNIUM CENTRE 26
Wales Millennium Centre (Limited by Guarantee) Annual reportand financial stotements Year ended 31 March 2024 Fixed assets: oll fixed assetsare measured ot cost less accumuloted depreciation. No assets have been revalued. At the date of capitalising fixed assets, management estimate the Company estimates the useful life of the asset based upon monagement's judgement and experience, Theotre tax relief: a provision has been made with information available as at the date of the Signed statements. FUND ACCOUNTING The various types of funds for which the charity is responsible, and which require separate disclosure, are as follows: RESTRICTED FUNDS The funds can take two forms: income and capital. The funds con arise by way of donationsi gifts (of ossets and services), grants, and legacies, and ore earmarked by the donor for specific purposes. Such purposes are within the overall aims of the orgonisotion. For restricted income funds, the donation ond income deriving therefrom moy be utilised. Inthe case of restricted capitalfunds, onlythe income arising frorn the fund may be utilised for the restricted purposes and the capital asset must be retained. DESIGNA TED FUNDS These ore funds which hove been setaside atthe discretion of the Board membersfor specific purposes. The purpose and uses of the designated funds are set out laterin these notestothefinanciol statements. UNRESTRICTED FUNDS These are funds which are expendable at the discretion of the Trustees in furtherance of the objects or administration of the Chority. CREDITORS PROVISIONS Provisions ore recognised where the Chority has a present obligation resulting from o 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. Provisions are normally recognised at their settlement omount after allowing for any trade discounts due. INVESTMENTS Investments are initially recognised at their transaction value and subsequently measured at their fair value as atthe balance sheet date using the closing quoted market price. All gains and1055es are token to the Statement of Financial Activities. FIXED ASSETS INTANGIBLE FIXEDASSETS Intangible fixed assets are stated at cost less accumulated amortisation. The annual rate of amortisation, once the assets have been brought into use. is 20% on a straight-line basis. CANOLFAN MILENIWM CYMRU WALÈS NILLEF4NIUII CENTkE 27
Wales Millennium Centre (Limited byGuarontee) Annval report and financial statements Year ended 31 March 2024 TANGLIBLE FIXEDASSETS Tangible fixed assets are stated ot cost less accumulated depreciation. In the case of assets and services gifted to the Charity a valuation is established by means of an external profe55ional valuation or a certificate of valve from the donor as oppropriate. Assets with a value of less than £1,000 will not be copitalised unlessthey form part of a larger copitol project. DEPRECIA TION Depreciotion is calculated so as to write-off the cost of on osset, less its estimated residual value, on o straight-line bosis over its vseful economic life as follows: Annual r(rte 2%- 20°A straight line 5%- 20Yo Stroight line 4¥.- 33Yo Stroight line Buildings Plant and machinery Fixtures, fittings, and equipment IMPAIRMENTREVIEWS The corrying amounts of the Group's assets ore reviewed for impairment when events or changes in circumstances indicate thotthe corrying amount of the fixed assets moy not be recoverable. If any such indication exists, the asset's recoverable amount is estimated. INCOME RECOGNITION GRANTS Grants receivable are accounted for in line with charitable income recognition rules. DONA TIONSAND SPONSORSHIP Donations and sponsorship income are recognised when the Charity becomes entitled to the income, when there is certointy that it will be received, ond the amount con be measured. Where conditions of a grant require spend to be incurred during a specific accounting period, and the grant has been received in advance, the income is accounted for as deferred income until the accounting period in which the Charity is allowed, by the condition of the grant, to expend the funds. THEA TRE INCOME Theatre income is recognised in the yeor to which it relates. Ticketing income received in advance is deferred. It 15 released to the stotement of financial activities when the performance takes place. CA TERINGINCQME Catering and other income represents the value, net of value odded tax and discounts, of goods and services provided to customers. INTERESTRECEIVABLE 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. CANOLFAN MILÉNIWM CYMAU WALES MtLLENNiiif4 CENTRE 28
Wales Millennivm Centre (Limited by Guorontee) Annuol report and financial stotements Yearended 31 March 2024 INVESTMENTINCOME Investment income is received quarterly and reinvested intothefund. Quarterly statements are received from Sarasin. Investment income is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the income paid by the Investmentfund. GIFTS IN KIND Gifts in kind include non - cosh donations of services and assets. In accordance with the Statement of Recommended Proctice they have been included in income, and in the relevont cotegoryof expenditure and fixed assets and have been recorded at a reasonable estimate of their value to the Charity. We do not recogni5e ony volunteer hours in the accounts. GRANTS OFRIGHTS Where rights are granted to third parties under which benefits accrue over a prescribed period, the proceeds on the grant of those rights are transferred to a deferred credit account and released to income on a straight-line basis overthe period during which those benefits are to be provided. EXPENDITURE All expenditure is accounted for on an accruol's basis. Costs are apportioned between expenditure categories in a manner which reflectsthe allocotion of resources to these areas. PENSION COSTS Contributions ore made to employees personal pension schemes, which ore defined contribution schemes, as port of their remuneration package and are chorged in the year in which they are incurred. STOCK Stock is valued at the lower of cost and net realisoble value. INVESTMENTS IN SUBSIDIARIES Investments in subsidiaries ore carried at cost less impairment. TAXATION Wales Millennium Centre (Limited by Guarantee) is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2014 and therefore it meets the definition of a charitable trustfor UK income tax purposes. Accordingly, the charity is potentially exempt from toxation in respect of income or capital gains received within categories covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. CANOLFAN MILENIW14 CYMRU WALES biELLENNIUM eÈF4T#E 29
Wales Millennium Centre (Limited by Guarantee) Annuol report ond financial statements Year ended 31 March 2024 2. FINANCIAL PERFORMANCE OFTHECHARITY The consolidated statement of financial activities includes the results of the Charity s wholly owned subsidiary which operates the Theatre business and hospitolity facilities, along with its wholly own subsidiaryi WMC Productions Limited. The summary finoncial performonce of the Charity alone is: 2024 £000 2023 £'ooo Income Gift from svbsidiary company Expenditure on charitable activities 8,415 2,044 (10,848) 7,653 (10 550) Net income/(expenditure) (391) (2,897) Total funds brought forward 43,105 46,002 Total funds carried forward 42,714 43,105 3. INTEREST AND INVESTMENT INCOME RECEIVABLE The group's interest and investment income arises from money held in interest bearing deposit & instant access occounts and from a medium-term investment held with Sarosin. The income of £250k (2023: £24k loss) includes an unrealised revaluation gain of the Sarosin investment of £54k (2023: £45k unrealised revaluation loss). CA140LFAN MILÉ141WM CY14R WALES 14ILLENpiILfM CÈNTRE 30
Wale5 Millennium Centre (Limited by Guarantee) Annual report and financial statements Yearended 31 March 2024 4. ANALYSIS OF EXPENDITURE ON CHARITABLEACTIVITIES 2024 Concerts and stage performonces isiting orts exhibitions and Installations Education including residences General centre visitation 2024 Total expenditure £'ooo £'ooo £'ooo £'ooo Artists, and exhibition fees Production expenses Education and outreach Box office and front of house Promotion and marketing Central premises costs Bank charges Depreciation Governance cost5 (Note 357 77 434 313 118 100 128 431 519 132 124 295 12 35 47 1,897 41 325 2,119 4,382 2,202 2,202 5) Support costs (Note 5) Total 1,669 6,450 1,669 2.583 165 620 2023 Concerts and stoge performonces isiting arts exhibitions and Installations Educotion including residences General centre visitation 2023 Tota expenditure £000 £'ooo £'ooo Artists, and exhibition fees Production expenses Education and outreach Box office and front of house Promotion and marketing Centro I premises costs Bank charges Depreciation Governance cost5 (Note 416 435 640 39 291 176 679 962 200 268 403 24 24 35 1,628 35 279 1,818 3,760 2,257 2,257 5) Support costs (Note 5) Totol 1,557 6,183 1,557 9,887 2,719 303 682 CANOLFAN MfLENIWM eYMkU VIALES MILLENNIUM CEMTRE 31
Wales Millennium Centre (Limited by Guarantee) Annual report and financial statements Year ended 31 March 2024
5. ANALYSIS OF GOVERNANCE AND SUPPORT COSTS
The Charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance functions. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned between the three key charitable activities undertaken in the year. Refer to the table below for the basis for apportionment and the analysis of support and governance costs.
| 2024 | General | Governance | Total | Basis of |
|---|---|---|---|---|
| Support | Function | apportionment | ||
| £’000 | £’000 | £’000 | ||
| Salaries, wages and related | 812 | - | 812 | Allocated on time |
| costs | ||||
| General office | 702 | - | 702 | Invoiced |
| Audit fees – External audit | 27 | - | 27 | Invoiced |
| Non audit fees | 114 | - | 114 | Invoiced |
| Audit fees – Internal audit | 14 | - | 14 | Invoiced |
| Total | 1,669 | - | 1,669 |
6. EMPLOYEE NUMBERS AND COSTS
| 2024 | 2023 | |
|---|---|---|
| £’000 | £’000 | |
| Employee costs during the year amounted to | ||
| Wages and salaries | 4,831 | 4,702 |
| Social security costs | 427 | 437 |
| Pension contributions to defined contribution schemes | 290 | 259 |
| 5,548 | 5,398 | |
| 2024 | 2023 | |
| Number | Number | |
| Average number of persons employed (including casuals) | ||
| were: | ||
| Stage, technical, front of house, catering and venue operations | 285 | 245 |
| Management and administration | 7 | 7 |
| 292 | 252 |
During the year, the company’s wages and salaries costs above include remuneration paid to the Trustees amounting to £nil (2023: £nil). Travel expenses of £101 were reimbursed to one Trustee during the year (2023: one trustee, £128).
32
Wales Millennium Centre (Limited by Guorontee) Annuol report and financial statements Year ended 31 March 2024 The number of employees whose emoluments as defined for taxation purposes amounted to over £60k in the year was as follows: 2024 Number 2023 Number £60,000- £90,000 £90,001- £100,000 £100,001- £110,000 £110,001- £120,000 £120,001- £130,000 £130,001- £160,000 £160,001- £170,000 £170,001- £180,000 £180,001- £190.000 2024 2023 £'ooo £'ooo Pensions contribvtions to defined contribution schemes in respect of these five employees (2023: four employees) 42 35 Key monogement personnel who have responsibility for plonning, directing and controlling the activities of the organisation are detailed in the Trustees report on Page 3 (Trustees) and separately on Page 3 (Managing Director and other senior stoffl. The total amount poid to these four employees was £448k (2023: £492k). 7. NETEXPENDITURE FOR THEYEAR 2024 £'ooo 2023 £'ooo Net expenditure is stated after charging the following Auditorfs fee for parent companyand grovp finoncial statements Auditor's fee for subsidiarycomponies Poyroll processing fees Payments mode under operating leoses Depreciotion and omortisotion (Notes 9 & 10) Trvstees and officer's indemnity insurance 15 10 10 85 2,234 14 10 10 171 2,346 TAXATION Wales Millennium Centre (Limited by Guarantee) is considered to poss the tests set out in Paragraph I Schedule 6 Finance Act 2014 and therefore it meetsthe definition of a charitable trust for UK income tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Part l O Income Tax Act 2007 or Section 256 of the Toxotion of Chargeable Goins Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. CANOLFAM MILENIWM CYMRU WALES MILLENNIUM CEFITRE 33
Wales Millennium Centre (Limited by Guarantee) Annual report ond financial statements Year ended 31 March 2024 9. INTANGIBLE ASSETS Group Group £'ooo Cost At 1 April 2023 Additions during the yeor 289 Cost at 31 March 2024 289 Amortisution and Impairment At l April 2023 Charge forthe year Amortisotion at 31 March 2024 289 289 Net Book Value ot 31 March 2024 Net Book Value at 31 March 2023 Intangible ossets represent the volue of funds invested in the redevelopment of the WMC Website, which wos lounched in August 2018. CANOLFAM MILENIW14 CYMRV WALES MILLEt4MIUM CENTAE 34
Wales Millennivm Centre (Limited by Guarantee) Annual report and financial statements Year ended 31 March 2024 10. TANGIBLE ASSETS Group Long leasehold land & buildings £'ooo Plant & machinery Fixtures, frttings & equipment Asset under construction Total £'ooo £000 £'ooo £'ooo Cost At 1 April 2023 Additions in the year Dispos015 in the year Transfers in the year 57,738 38,822 230 3,988 250 2,869 763 103,417 1,243 (160) (160) 1,823 1,472 13,295) Year ended 31 March 2024 57,578 40,875 5.710 337 104,500 Accumvlated depreciation At 1 April 2023 Charge forthe year Disposals during the year 21.335 1,154 (93) 38,182 438 2,359 642 61,876 2,234 (93) Yeor ended 31 March 2024 22,396 38,620 3,001 64,017 Net book value 31 March 2024 35,182 2.255 2.709 337 40,483 31 March 2023 36,403 640 1,629 2.869 41,541 CANOLFAN MILETr41WM CYMftV WALES MILLENNIUM eÉr4TRE 35
Wales Millennium Centre (Limited by Guorontee) Annual report ond financial stotements Year ended 31 March 2024 Company Long leasehold land & buildings £'ooo Plant & mochinery Fixtvres, fittings & equipment Asset under construction Total £'ooo Cost At l April 2023 Add itions in year Disposals in year Transfer5 in year 57,738 38,693 230 3,750 241 2,869 763 103,050 1,234 (160) (160) 1,823 1,472 (3,295) Yearended 31 March 2024 57,578 40,746 5,463 337 104,124 Accumuloted depreciation At 1 April 2023 Chorge forthe yeor Disposals during the yeor 21,335 1,154 (94) 38,096 413 2,145 635 61,576 2,202 (94) Year ended 51 March 2024 22,395 38,509 2,780 65,684 Net book value 31 March 2024 35.183 2.237 2,683 337 40,440 31 March 2023 36,403 597 1,605 2,869 41,474 Substontially all tongible fixed assets are used for direct choritable purposes. The remainder are used for administration and fundraising purposes. At 31 March 2024there were no assets held under finance leases (2023: £nil). These figures represent amovnts in both the Company and Group. CANOLFAN MILENIWM CYMRU WALES hilLLEtINLUM CENTAE 36
Wales Millennivm Centre (Limited by Guarantee) Annuol report and finonciol statements Year ended 31 March 2024 11.STOCK Group 2024 £'ooo Group 2023 £'ooo Compony Company 2024 2023 £'ooo £'ooo Good5for Resale 55 62 55 62 12. DEBTORS Group Group 2024 2023 £'ooo £'ooo Company Company 2024 2023 £'ooo £'ooo Trade debtors Other debtors Prepayments VAT receivable Theotre Tax Relief Amount owed by svbsidiary undertaking 742 236 411 880 424 301 93 417 $44 109 360 53 329 79 260 341 786 549 360 2.175 2,115 1,615 1,369 13. CASHAT BANKAND IN HAND Cash held by the Group atthe bolonce sheet date includes bank accounts relating to ticketing income received in advance of £8.Om (2023: £5.3m). 14. CREDITORS FALLING DUEWITHIN ONEYEAR Group Group 2024 2023 £'ooo £'ooo Company Compony 2024 2023 £'ooo £'ooo Social security and other taxes VAT Trade creditors Accruals Income in advance Other creditors 102 148 374 939 7.964 1.613 96 77 71 172 1,849 5,337 1,071 338 717 116 1,592 48 76 11,140 8,525 1,180 1,855 CANOLFAN MILÉNl*tM CYMRU WALE5 MILLENNIUM CÉNTRE 37
Woles Millennium Centre (Limited by Guarantee) Annual report and finonciol statements Year ended 31 March 2024 15. CREDITORS FALLING DUE AFTER MORETHAN ONE YEAR Group Group Compan Compan 2024 £000 2023 £'ooo 2024 £'ooo 2023 £'ooo Unpaid share capital Total 16. CAPITAL The Compony is limited by guarantee and therefore has no share copital. The extent of the guarantee is £1 per member. The moximum number of members permitted is 15. 17. FUNDS UNRESTRICED FUNDS Group Income Expenditure Capital Spend £'ooo Transfer 2023 £'ooo 2024 £'ooo £'ooo De51 nated funds Capital Maintenance Capitol Development Creotive Ambition Total designated funds 578 186 (200) 564 576 (576) 200 1,354 (200) (776) 186 (200) 564 General unrestricted fvnds 41,765 21,765 (23,043) 200 40,687 Total funds 43,119 21,951 (23,819) 41,251 CA14QIFAN MILENIWM CYMRU WALES MILLENtr411JM CENTAE 38
Wales Millennium Centre (Limited by Guarantee) Annual report and financiol statements Year ended 31 March 2024 Company Income Expenditure Capital Spend Transfer 2023 £'ooo 2024 £'ooo £000 £'ooo £'ooo £'ooo Desi funds Capital Maintenance Copital Development Creative Ambition Total designated funds nated 578 186 (200) 564 576 (576) 200 1200) 1,354 186 1776) 1200) 564 Generol unrestricted funds 39,863 9,095 (9.331) 200 39,827 Total funds 41,217 9,281 (10,107) 40,391 Unrestricted funds ore expendable atthe discretion of the Trustees for the Choritys purposes. DESIGNATED FUNDS Capital Maintenance a capital maintenance funding requirement has been identified through the Capital 50 plan, estimated at half a million pounds per onnum, to maintain the building, plont ond equipmentto a high standord. This designated fund represents funds set aside to meet this requirement. Capital development reserve-this has been set up to support the cost of new capital projects. Creative ambition reserve-this has been established to enhance the creative ambition. CANQLFAN MILÉNSWM CYMRU WALES MIILEI4MILtM CENTkt 39
Wales Millennium Centre (Limited by Guorontee) Annual report ond finonciol statements Yearended 31 March 2024 RESTRICTED FUNDS Group Movement in funds Income Expenditure Transfers 2023 2024 £'ooo £'ooo Capital Mointenonce Capital Development Creative Ambition Festival of Voice Merthyr Core Restricted Funds 1,372 500 300 500 (349) 1,525 1,000 308 (308) 72 (88) Totolfunds 1,888 1,180 (745) 2,323 Movement in funds Company Income Expenditvre Transfers 2023 £000 2024 £'ooo £'ooo £'ooo Copital Maintenance Capitol Development Creative Ambition Festival of Voice Merthyr Core Restricted Funds 1.372 500 300 500 (349) 1,323 1,000 308 (308) 68 {84) Total funds 1,888 1,176 (741) 2,523 Capital Maintenance During the year, the Centre received restricted grant income from The Arts Council of Wales reloting to capital maintenance of the Centre underthe Capital 50 plan. Fixed assets relating to this expenditure have been copitolised and will be written down over the expected life of the assets. Core resfricted funds related to the Arts Council of Wales Culrural Recovery Fund Gront CANOLFAN MILENIWM CYMRU WALÉS MILLÉNNIiJM CENTAE 40
Wales Millennivm Centre (Limited by Guarantee) Annual report and financial statements Yearended 31 March 2024 Analysis of net assets between funds Group Unrestrirted Funds Restricted Funds Total for the year ended 31 March 2024 £'ooo Total for the year ended 31 March 2023 £'ooo £000 Intangible & Tangiblefixed assets Investment Net current assets 39,160 745 1,323 40,483 745 41,541 672 2,794 1,346 1,000 2,346 41,251 2,323 43,574 45,007 Analysis of net assets between funds Unrestricted Funds Restricted Funds Total for the year ended 31 March 2024 £'ooo Total for the year ended 31 March 2023 Company £000 £'ooo £'ooo Tangible fixed assets Investment Net current assets Creditors falling due after more than 1 year 59,117 747 529 (2) 1,323 40,440 747 1,529 (2) 41,474 674 959 (2) 1.000 40,391 2.523 42,714 43,105 Total income comprises £22.Om (2023.- £25.2m) for unrestricted funds and £1.2m (2025.. £7.3m) for restricted funds. Adetoiled analysis of incoming resources isgiven inthe Statement of Financial Activities and notes. Total expenditure comprises £23.8m (2023.. £25.7m) for unrestricted funds and £0.7m (2023.. £7.6m) for restricted funds. A detailed analysis of expenditure is given in the Stotement of Financial Activities ond notes. In accordance with the Charities SORP 2015, capital grants are recognised in full in the statement of finoncial activities in the year in which they ore received, subjectto performance criteria. Capital grant5 are recognised in full in the yeorthey are received. CAMOLFAN MILEMIW14 CYMRLI WALES NtLLEtlldlUM CENTRE 41
Wales Millennium Centre (Limited by Guarantee) Annual report and financial statements Year ended 31 March 2024
The summary income and expenditure account illustrated above is derived from the statement of financial activities on page 20 which, together with the notes of the financial statements provides full information on the movements during the year on all the funds of the Group.
18. PENSION CONTRIBUTIONS
The Wales Millennium Centre makes contributions on behalf of employees to individual defined contribution schemes. The amount charged to the statement of financial activities during the year ended 31 March 2024 was £290k (2023: £259k).
19. OPERATING LEASES
Total commitments under non-cancellable operating leases are as follows:
| 2024 | 2023 | |
|---|---|---|
| £’000 | £’000 | |
| Within one year | - | 85 |
| In the second to fifth years inclusive | - | - |
| - | 85 |
20. INVESTMENTS
| INVESTMENTS | ||
|---|---|---|
| Group | Company | |
| 2024 | 2024 | |
| £'000 | £'000 | |
| Value at 1 April 2023 | 672 | 674 |
| Additions | 19 | 19 |
| Disposals | - | - |
| Revaluations during the year | 54 | 54 |
| Value at 31 March 2024 | 745 | 747 |
During the year we reviewed our investment policy and agreed that unrestricted and restricted funds should be predominantly held in minimum risk deposit accounts. Current investments are held in a 5- year investment fund with Sarasin & Partners LLP . This fund has a risk level between 4 and 7. Quarterly investment reports are received.
42
Wales Millennium Centre (Limited by Guarontee) Annual report and financial statements Yeor ended 31 March 2024 21. CAPITALCOMMITMENTS Group & Company 2024 £'ooo Group & Company 2023 £'ooo Capitol expenditure contracted but not provided for in the financial statements Capitol expenditure authorised by the board but not controcted 250 900 500 910 750 1,810 These capital commitments relate to Platfform and the next Stage of the Front of House redesign project12023: £1,81 Ok related to the first stage of the Front of House redesign project). 22. SUBSIDIARYCOMPANIES The Charity has two wholly owned subsidiary companies, Wales Millennium Centre (Trading) Limited and Wales Millennium Centre (Theatre) Limited and is the ultimate parent undertaking of WMC Productions Limited. All companies ore registered in England ond Wales. CANOLFAN MILENIWM CYMHU WALES MILLENNIUIII CENTRe 43
Wales Millennium Centre (Limited by Guarantee) Annual report ond finonciol statements Yearended 31 Morch 2024 Wales Millennium Centre (Trading) Limited (registered number 3776896) Wales Millennium Centre (Trading) Limited carries out trading activity on behalf of the charity. The tradin9 company has been consolidated in these group Financial Statements. A summary of its trading results is shown below: 2024 £'ooo 2023 £'ooo Turnover Cost of Sale5 16,069 (11,976) 19,636 (14,893) Gross Profit 4,093 Administrative Expenditure Interest receivable (3,256) 167 (2,673) Profit before charitable donotion Choritable donation to parent organization 1,004 (2,044) 2,070 (1,040) 2024 £'ooo 2023 £'ooo Tangible fixed Assets Net current assets 68 1,833 817 Net assets 861 1,901 Called up share capital and retained earnings 861 1,901 CANOLFAN MILENIWM CYMRIJ WALE5 MILLENIIILtM CÉNTRÉ
Woles Millennium Centre (Limited by Guorantee) Annual report and financial statements Year ended 31 March 2024 WMC Productions Limited (registered number: 09696006) WMC Productions Limited is a wholly owned Subsidiary of Woles Millennium Centre (Troding) Limited. It has been consolidated in these group Finonciol Stotements. WMC Productions Limited is commissioned by the Charity to create productions. A summary of its results is shown below: 2024 £'ooo 2023 £'ooo Turnover Cost of Sales 1,303 {1,809) 1,024 (1,304) Gross Loss (506) (280) Administrative Expenditure Loss Before Taxation (506) (280) Tax on loss 506 280 Result for the financial year 2024 £'ooo 2023 £'ooo Intangible & Tongible fixed Assets Net current asset5 Net assets Called up share capital Wales Millennium Centre (Theatre) Limited (registered number: 03749246) Woles Millennium Centre (Theatre) Limited was dormantthroughout the year. CANOLPA14 MILÉNlWt4 CYMAV WALES MILLENNIUM CENTRE 45
Wale5 Millennium Centre (Limited by Guorantee) Annual report ond financial statements Year ended 31 March 2024 INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF WALES MILLENNIUM CENTRE (LIMITED BY GUARANTEE) Opinion We have avdited the financial stotements of Wales Millennium Centre (Limited by Guarantee) (the 'parent charitoble company,) ond its subsidiaries (the'grovp,) forthe year ended 31 March 2024 which comprise the Consolidated Statement of Financial Activities, Consolidated Bolonce Sheet, Porent Charitable Company Balance Sheet, Consolidated Cash Flow Stotement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting frameworkthat has been applied in their preparation is applicable law and United Kingdom Accounting Standords, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion the finoncial statements: give a true ond fair view of the state of the group's and of the parent charitable company's offairs as at 31 March 2024 and of the groups and the parent charitable company's incoming resources and application of resources, including its income and expenditure, forthe year then ended: have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice," and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our oudit in accordonce with International Standards on Auditing (UK) (ISAS (UK)) and opplicable law. Our responsibilities under those standards are further described in the Auditors, responsibilitie5 for the audit of the financial statement5 section of our report. We are independent of the group in accordonce with the ethicol requirementsthat ore relevant to our audit of the financiol stotements in the UK, including the FRC'S Ethicol Standard, and we hove fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we hove 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 financiol statements is oppropriote. 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 about the groups and the parent charitoble company's abilityto continue as a going concern for a period of at leasttwelve monthsfrom when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respectto going concern are described in the relevant sections of this report. CAP40LFAP4 MILENIWM CYMR WALES MILLÉNNIUM CEMTFtE 46
Wales Millennivm Centre (Limited by Guorantee) Annual report and finoncial statements Year ended 31 March 2024 Other information The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report. we do not express anyform of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information 15 moterially inconsistent with the financial statement5, or our knowledge obtained in 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 there is a material misstatement in the financiol statements or a moterial misstatement of the other information. If, based on the work we hove performed, we conclude thatthere is a material misstatement of this Other information, we are required to report that fact. We hove 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: the information given in the Group Report of the Trustees for the financial year for which the financial statements ore prepared is consistent with the financial statements; ond the Group Report of the Trustees has been prepared in accordance with applicable legol requirements. Matters on which we are required to report by exception In the light of the knowledge and understonding of the charitoble company and its environment obtained in the course of the audit, we hove not identified material misstatements in the Group Report of the Trustees. We have nothing to report in respect of the following matters where 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 received from branches not visited by us; or the parent charitable company financial statements are not in agreement with the accounting records and return5" or certoin disclosures of trustees, remuneration specified by low are not made; or we have not received all the information and explanations we require for our audit. CANOtFAN MILE141WM CYMRU WALES MILLENNIUM CENTRE 47
Wales Millennium Centre (Limited by Guorgntee) Annuol report and financial statements Yearended 31 March 2024 Responsibilities of trustees As explained morefully in the Statement of Trustees, Responsibilities, thetrustees (who are also the directors of the parent charitable company for the purposes of company low) are responsible for the preparation of the financial statements and for being satisfied that they give o true and fair view, and for such internal control as thetrvstees determine is necessaryto enoble the preparation of financial 5totements that are free from material misstatement, whether dueto fraud or error. In preporing the financial stotements, the trustee5 are responsible for assessing the groups and the parent choritable company's obility to continue as a going concern, disclosing, as applicable, motters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the porent charitable company or to cease operations, or hove no realistic alternative butto do so. Our responsibilities for the audit of the financial statements Our objectives ore to obtain reasonable assurance about whether the finonciol statements as a whole ore free from material misstatement, whether due to froud or error, and to issue o Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in occordance with ISA5 (UK) will always detect a material misstatement when it exists. Misstatements con arise from fraud or error and are considered moterial if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extentto which our procedures are copoble of detecting irregularities, including fraud is detailed below: We gained an Understanding of the legol and regulatory framework applicable to the charity and the industry in which it operates and considered the risks of acts by the charity that were contrary to applicoble law5 and regulations, including froud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a materiol misstatement due to froud is higher than the risk of not detecting one resulting from error, as fraud moy involve deliberate conceolment. The laws and regulations that we determined were most significant to the company were the Companies Act, Charities Act, Employment Rights Act and the Heolth and Safety Act. We obtained an understanding of howthe company is complying with those laws and regulations by making enquiries to the management and corroborated these enquiries through our review of board minutes and review of legal and professional spend for the year. We assessed the susceptibility of the charitys financial statements to material misstotement, including how fraud might occur. We assessed the risk of management override of internal controls and assessed the effectiveness of internal controls that management has in ploce to prevent ond detect fraud, including testing of manual journals and evaluating the assumptions and judgements made by management in its significant accounting estimates. A fvrther description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council'swebsite atwww.frc.org.uk/ouditorsresponsibilities. This description forms part of our Report of the Independent Auditors. CANOLFAN MILENIWM cYf4AU WALES MtLLENWIUM CENTRE 48
Wales Millennium Centre (Limited by Gvarantee) Annual report ond financial statements Year ended 31 March 2024 Use of our report This report is made solelyto the choritable company's members, as a body, in accordancewith Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so thot we might state to the charitable company's member5those matter5 we ore reqvired to stoteto them in an auditors, report and for no other purpose. TothÈfullestextent permitted by law,we do not acceptorassvme responsibililyto anyone otherthan the charitablecomponyand the choritable company's members as o body, forourauditwork, for this report, orfor the opinions we have formed. 711ti124 Nicholas Matthew Toye FCA (Senior Statutory Auditor) for and on behalf of BPU Limited ChorteredAccountantS Statutory Auditor Rodnor House Greenwood Close Cardiff Gate Business Park Cardiff CF23 8AA ¢ANOLFAM MILEIIIVIM CYMRU WALIS MILLENNIUbt CENTRE 49