2021-03-31-accounts

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Company Registered Number 3320538 Charity Registered Number 1061012

Birmingham Royal Ballet

(A Company Limited by Guarantee)

Report and Consolidated Financial Statements

For the year ended 31 March 2021

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BIRMINGHAM ROYAL BALLET

Officers and professional advisers	3
Foreword by Sir David Normington GCB	5
Directors’ report (including Strategic report)	7
Trustees’ responsibilities statement	26
Independent auditor's report	27
Consolidated Statement of financial activities	31
Balance sheets	33
Consolidated Cash flow statement	34
Notes to the financial statements	35

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BIRMINGHAM ROYAL BALLET

OFFICERS AND PROFESSIONAL ADVISERS

DIRECTORS

Sir David Normington (Chair) Mr Ian Squires Mr Michael Elliott Ms Deborah Spence Ms Hemma Patel Mr Anthony Coombs Councillor Carl Rice Mr Barry Allen Ms Jeanetta Laurence OBE Ms Jane Hackett Ms Sandra Crossley (appointed 01 January 2021) Mrs Marverine Cole (appointed 01 June 2021) Ms Shireenah Ingram (appointed 01 June 2021) Mrs Christine Ondimu (appointed 01 June 2021)

SECRETARY

Mrs Anna Williams FCA, DChA

REGISTERED IN ENGLAND & WALES

Company Number: 3320538 Registered Charity Number: 1061012

REGISTERED OFFICE

Thorp Street Birmingham B5 4AU

BANKERS

HSBC Bank plc 130 New Street Birmingham B2 4JU

SOLICITORS

Veale Wasborough Vizards LLP Second Floor, 3 Brindleyplace Birmingham B1 2JB

DWFM Beckman Solicitors 101 Wigmore Street London W1U 1FA

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BIRMINGHAM ROYAL BALLET

OFFICERS AND PROFESSIONAL ADVISERS

INVESTMENT MANAGERS

Smith and Williamson 9 Colmore Row Birmingham B3 2BJ

AUDITOR

Deloitte LLP Statutory auditor 4 Brindley Place, Birmingham, United Kingdom, B1 2HZ

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BIRMINGHAM ROYAL BALLET

Foreword by Sir David Normington GCB, Chair of Birmingham Royal Ballet

In the 75 year history of Birmingham Royal Ballet and its predecessor companies there surely has not been a more extraordinary and challenging year than 2020-21. It is a testament to the remarkable resilience and team spirit of this wonderful company that it has not only still survived financially and artistically, but it has come through stronger. I have never been more proud to be its Chair.

When the year opened in April 2020, the country had just locked down for the first time in the face of the Covid - 19 pandemic. For a performing arts company, like BRB, that seemed like a threat to our very survival. We exist to perform in front of live, expectant audiences in theatres all round the U.K. Our musicians, our dancers, our stage and technical crews and our management and administrative staff devote their working lives to bringing great shows to stage and, through our education and outreach programmes, introducing thousands of young people a year to the joy of dance. Suddenly none of this was possible. It was a particular blow to Carlos Acosta, who had joined us as our new Director three months before and had just announced exciting plans for new programmes and repertoire, all of which had to be postponed.

But never underestimate the commitment, resilience and inventiveness of the creative arts sector. Within a few weeks our dancers and musicians were creating short new works and posting them on social media. We dug into our archives for videos of previous performances and rehearsals and put them regularly on line. We were amazed at the size and warmth of the audience reaction. When our Principal dancer, Celine Gittens, performed the Dying Swan in her front room, accompanied by our orchestra leader and principal violinist, Robbie Gibbs, playing from his home, it was viewed on social media over a million times. We were suddenly in touch again with our supporters and reaching new audiences around the world. One of the unexpected benefits of the pandemic has been the spur it has given to our digital work.

Inspired by the unflagging optimism of Carlos Acosta, we took an early decision to invest some money in a new work, which we could perform as soon as we were allowed to rehearse and perform again. It was important to us to repay the investment of public money which the Arts Council continued to invest in us despite the pandemic. The result was “Lazuli Sky” by Birmingham born choreographer, Will Tuckett, which we performed as part of a Triple Bill to much acclaim to socially distanced audiences in Birmingham in the summer and at Sadlers Wells Theatre in London in the autumn. In Birmingham, our home theatre, Birmingham Hippodrome, was sadly closed for the whole period of the pandemic. But we were able to forge a new partnership with the Birmingham Repertory Theatre, whose new Director, Sean Foley, shared the same entrepreneurial spirit as Carlos. Without the Rep, we would not have been able to perform live in Birmingham, nor to record and stream some of our performances. We are immensely grateful to them and look forward to an enduring partnership.

As we entered the autumn, we were on a roller coaster, changing plans from week to week as the pandemic began to surge again. In retrospect it was something of a miracle that we were able to perform Lazuli Sky at Sadlers Wells in October 2020, just days before the November lockdown. Our planned live performance at Birmingham Town Hall to celebrate 30 years since the company’s arrival in Birmingham had to be closed to audiences at short notice and streamed on line. We did everything possible to bring Birmingham its traditional Christmas Nutcracker with plans to perform at the Utilita Arena, where a large audience could have been appropriately distanced. But with the restrictions eventually making this impossible, we decided at very short notice to film an adapted version of the Nutcracker at the Birmingham Rep and to stream it live – our first live stream to a paying audience. We then filmed a second cast performance, which we broadcast online in February 2021 at half term.

When we went into another winter lockdown after Christmas, we decided that more weeks of making plans and then cancelling them was not sustainable. We, therefore, took the decision to close the company down until we were allowed to start training and rehearsals again and to plan to be back on stage in the spring. Even then the indefatigable Carlos Acostacollaborated with award winning company, Impermanence and song writer Benjamin Scheuer to create his first digital commission for the company, Empty Stage. This short elegiac film summed up all our fears and hopes for the dance – and wider performing arts – sector. It is impossible to watch it even now without feeling moved, but also uplifted.

As a Board we met very regularly over this period online to review progress, to assess the risks to our finances and to take the necessary action to control our costs. We had two simple objectives: to keep the company in touch with our audience, performing live, when that was possible, and, on line when it was not; and secondly, to protect our financial position, so that we came out of the various lockdowns with sufficient reserves not only to return to live performances, but to begin to implement Carlos Acosta’s ambitious plans for the company. I am very glad to say that we achieved both objectives, as this Annual Report demonstrates.

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BIRMINGHAM ROYAL BALLET

Foreword by Sir David Normington GCB, Chair of Birmingham Royal Ballet

Our financial resilience is the result of some remarkably generous financial support from the Government and the Arts Council, for which we are extremely grateful. In particular the Government’s “furlough”scheme was a lifeline and enabled us to keep the company together, when we could not work or perform. But we must also thank the many friends and supporters of the company, including trust and foundations who have continued to support us financially and sometimes to increase that support substantially. This includes particularly Aud Jebsen, Charles Glanville and HSBC, whose wonderful support has enabled us to face the future with confidence.

We did everything we could during the year to keep in touch with our staff through regular online company meetings, through advice on keeping healthy and with support for individual’s wellbeing. For those who were separated from their families and friends, in some cases a long way from home, these were tough times. Inevitably the pandemic caused some of our staff to reflect on their futures. Some decided to return to their homes at the other side of the world. Some took advantage of the early retirement scheme, which we were able to offer as a result of generous support from the Government’s Cultural Recovery Fund. We thank them all for their contribution to the company and wish them well in the next phase of their lives. After over 50 years with the company as dancer and coach, our Assistant Director, Marion Tait, also decided to step down, although she will remain as a Rehearsal Director, continuing to contribute her unrivalled artistry and knowledge of our classics to current and future generations of dancers. Marion is an essential part of the BRB family. We are so glad that we can continue to call on her advice and support.

After such a year it is hard to find adequate words to express my gratitude for the remarkable way in which the whole company has responded to the pandemic. Thank you – just doesn’t seem enough. But, nevertheless, thank you so much: to Director, Carlos Acosta and Chief Executive, Caroline Miller, whose combined inspirational leadership has kept us going, even in the most difficult times; to the whole Senior Leadership Team who coped so tirelessly with the ever changing demands on them; to every member of the company, new and longstanding, who never lost heart and bounced back so brilliantly ; to all our supporters who never gave up on us; and to our audiences who came back into the theatre as soon as it was safe to do so.

We cannot be sure what lies ahead. But we are now back on stage performing a full repertoire at a remarkably high standard to appreciative audiences. We are excited by what Carlos Acosta has planned for us and we remain determinedly optimistic.

David Normington

Chair

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BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

The directors present their annual report (including the strategic report) and the audited financial statements for the year ended 31 March 2021.

STATUS, OBJECTS AND POLICIES

Birmingham Royal Ballet (BRB), a registered charity, is incorporated as a company limited by guarantee, not having a share capital.

BRB Production Services Limited is a wholly owned subsidiary of Birmingham Royal Ballet. The principal activity of the company is theatrical production for some co-productions and co-presentations such as The Nutcracker at the Royal Albert Hall. Due to covid the company did not trade during the year to 31 March 2021.

The objects of Birmingham Royal Ballet in accordance with the Articles of Association are to advance the education of the public in the arts and sciences of ballet, dance, music and drama.

Birmingham Royal Ballet seeks to be the UK’s foremost large-scale touring ballet company, enriching people’s lives through dance, and aspiring to excellence in all that it does.

DIRECTORS, OFFICERS AND PROFESSIONAL ADVISERS

The Directors of the charitable company who are also trustees for the purpose of charity law, are referred to in this report as "Directors” or “the Board of Directors".

The names of the Directors, Officers and Professional Advisers who served throughout the year and at the date of signing are provided on page 3 - 4.

All of the SORP 2019 requirements of the Trustees Report have been included within this Directors’ Report.

Organisation

The Board of Directors’ membership includes those with appropriate professional experience of dance, education, arts and charity administration, fundraising, marketing and communications, general management and financial management.

Directors' Interests in Related Bodies

Body

Governors of the Royal Ballet

Director

Sir David Normington Jeanetta Laurence OBE

Birmingham City Councillors

Councillor Carl Rice

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BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

GOVERNANCE STRUCTURE

Birmingham Royal Ballet, as a company limited by guarantee, is governed by a board of non-executive directors (charitable trustees). In accordance with the Articles of Association the directors are also the members of the company.

The Board of Directors are responsible for decisions covering the significant areas of Birmingham Royal Ballet’s affairs including:

overall strategy and planning including setting strategy and plans to respond to Arts Council England’s National Portfolio Organisation funding cycle.
appointment of the key management personnel the Chief Executive and ‘The Director’. The day-to-day management of the affairs of Birmingham Royal Ballet is delegated to the Chief Executive, Caroline Miller, who is responsible for overall organisational management. The Director, Carlos Acosta, is responsible for artistic vision and strategy and for managing artistic activities.
approval of budgets, approval of major capital expenditure projects, and development of key policies including general treasury and risk management policies.

The Governors of the Royal Ballet have the right to nominate one of their members to be a member of the Board of Directors; Birmingham City Council nominate one representative (usually a Councillor) to be members of the Board of Directors. All such nominations are approved and appointed by the Board of Directors. The Board of Directors is responsible for the appointment of a Chair.

In order to carry out their duties as effectively as possible the Board of Directors is assisted by a number of sub committees including:

The Finance and General Purposes Committee - responsible for detailed review of financial reports, planning documents, budgets and policies prior to recommendation for approval. The Finance and General Purposes Committee presently fulfils the role of the Audit Committee.
The Nominations and Governance Committee – is responsible for the review of general governance including BRB’s response to the recommendations of the Charity Governance code as well as recommendation of candidates for appointment as Directors bearing in mind the particular needs of the Board at the time as well as the future needs of the Board (succession planning). The Nominations Committee is also responsible for ensuring the appropriate induction and training of new directors. It is the responsibility of the Board of Directors as a whole to approve candidates for appointment.
The Appointments and Remuneration Committee - responsible and overseeing the appointment of The Chair of the Board, senior officers and for reviewing their remuneration and making appropriate recommendations for the Board of Directors as a whole to approve.
The Investment Committee - responsible for overseeing implementation of the investment policy and monitoring performance of invested funds.

Other working groups may be convened and carry out specific tasks as directed by the Board.

To enable the Directors to perform their duties all directors have full access to relevant information and to services of the Company Secretary and the Officers of the Company. If necessary, the Directors may take independent professional advice at the Company’s expense.

All new Directors receive a comprehensive information pack, a tour of the company and opportunities to meet with The Director, Chief Executive, Chief Operating Officer and other senior members of staff. All Directors have regular access to performances, other events and activities so that they are familiar with the work of the company. An extended board session is held annually to discuss subjects such as artistic policy, business strategy and governance.

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BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

The primary governance and organisational objectives for the period were to:

Recruit new Board members with appropriate skills and knowledge to fill existing and forthcoming vacancies
Use our knowledge and sector leadership role to develop safe working practises to ensure that BRB can safely return to the work place, rehearsal and performance during autumn 2020.
Use the practical experience gained during autumn 2020 performances to support the re-opening of theatres and the dance sector by sharing knowledge and good practice
Build employee engagement through regular company meetings and opportunities for staff to create digital content during the Covid 19 pandemic
Foster a culture of equality and inclusivity including embedding the ‘Dignity at Work’ programme
Improveenvironmental performance through the reduction of office space occupied by the organisation

After an interrupted recruitment process we welcomed Sandra Crossley (former BRB principal dancer) to the Board in January 2021 with her extensive knowledge of the company heritage and repertory as well as experience in dance education and training. Marverine Cole, Shireenah Ingram and Christine Ondimu joined the Board in June 2021 bringing skills in journalism, diversity/equality and performing arts to strengthen and diversify the Board membership.

BRB has been an industry leader in managing a return to work, rehearsals and performances. BRB representatives have been actively involved in developing the government approved protocols and the roadmap for the theatre industry returning to performance both behind closed doors and with live audiences. As one of a relatively limited number of companies to give live performances as well as tour during the covid pandemic period we have been able to share our experience and expertise directly with venue colleagues at Birmingham Repertory Theatre and Sadlers Wells Theatre.

The covid pandemic has meant that many staff have spent long periods on furlough or working at home. There have been regular company meetings online to nurture and sustain the shared endeavour not just to survive the pandemic but to develop, find new ways of sharing our art and emerge strong and fit to return to the stage with a renewed energy and ambition. The regular meetings were an opportunity to update on emerging plans and discuss the financial and business strategy for the covid period including use of furlough and recovery funding. Many BRB staff have created digital content from podcasts, playlists, music ensembles and short performances to personal moments such as dancing with children at home.

Supporting mental and physical wellbeing has been a priority throughout the year. Work has continued on developing BRB’s ‘Dignity at Work’ framework and ‘Guardians’ programme. BRB’s healthcare team have continued to support staff online and in person as well as implement rigorous infection control processes to ensure a safe workplace. Dancers and ballet staff returned to rehearsals in August 2020, working in discreet ‘bubbles to minimise the risk of spread of infection in the company. It is a testament to the absolute dedication and commitment of all BRB artists and staff that the company has remained infection free and has delivered a range of repertory that demonstrates its full breadth and depth from classical to contemporary work.

BRB monitors its environmental performance through Julie’s Bicycle creative green tools. BRB has reduced its carbon footprint by mothballing one building until its lease expired in December 2020.

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BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

PUBLIC BENEFIT

In shaping objectives and planning activities for the year, the Directors have considered the Charity Commission’s guidance on public benefit, including the guidance on public benefit and fee-charging.

Birmingham Royal Ballet is one of the UK’s most creative and exciting ballet companies and aims to inspire audiences with work that is entertaining, relevant, exciting and technically excellent. It is committed to inclusion and access as ballet, dance and music are art forms for everyone to experience, participate in and enjoy.

Creating new ballet is an essential part of ensuring that the art form remains vibrant and relevant. Birmingham Royal Ballet creates new one act and full-length narrative ballets and regularly commissions new music for these works, adding richness to the national cultural ecology. Birmingham Royal Ballet plays an important role in preserving the classical and heritage repertoire, in particular those works associated with the English tradition of classical ballet, ensuring their continued existence for future generations to enjoy.

With the support of its major funder, Arts Council England, Birmingham Royal Ballet presents world-class performances of the widest possible range of repertory throughout the United Kingdom in both large scale and middle scale venues. The company also tours internationally on a regular basis.

Birmingham Royal Ballet is committed to the principle that cost should not prohibit access to performances. Tickets for performances in the UK are priced across affordable ranges (between £10 and £85) which reflect the regional economies where the company performs. Work is also available online. A wide range of concessions and special offers are available on tickets including discounts for school groups. Access to live performances is supported through a programme of children’s performances, touch tours, audio description and relaxed performances.

Birmingham Royal Ballet offers free talks, open classes and activity days to support performances and membership schemes such as Birmingham Royal Ballet Friends and The Dancers’ Circle give opportunities to attend talks, rehearsals and other special events that help to give a greater insight into and understanding of the work of the company.

Birmingham Royal Ballet extends its reach and accessibility through learning, engagement and participation (LEAP) work. Programmes include free ballet training for talented individuals, repertory based programmes for schools and community groups, disability led work and continuing professional development for professional dancers and teachers. Many projects include free access to a Birmingham Royal Ballet performance. Birmingham Royal Ballet continues to expand and develop how it takes work into the community; presenting it in new and unusual settings and co-creating works and performances with community groups.

Access to performance, engagement and participation activity is amplified through Birmingham Royal Ballet’s growing digital offer which includes both free and paid for content which can range from a brilliant still images to made for digital films like Empty Stage . Whatever the format, BRB’s digital content shares the same production values and striving for excellence that drives all of BRB’s artistic work. Digital production is no longer limited to ‘show marketing’ but is part of the artistic and cultural aims of the Company and based on fundamental principles to ‘Entertain, Educate or Inspire’

Above all, Birmingham Royal Ballet believes in the importance of taking the arts to everyone and will work hard, through ballet, dance and music, to break down barriers perceived or real that prevent people from the pleasure of experiencing or engaging with the arts in its many and varied forms.

STRATEGIC REVIEW

CHARITABLE ACTIVITIES

Performance and Production

The Birmingham Royal Ballet group of companies (Birmingham Royal Ballet and its subsidiary BRB Production Services) produce and perform ballet dance and music of the highest quality ensuring access to world class performances to audiences throughout the United Kingdom as well as internationally.

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BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

BRB’s artistic and performance related objectives for the 2020-21 period were to:

Plan a programme of work to ensure that the company can continue to create and distribute worldclass art and continue to perform for both live and online audiences during the Covid 19 pandemic
Mark the important transition in BRB’s artistic leadership by securing alternative performance dates from 2021 onwards for the ‘Curated by Carlos’ Festival, Don Quixote and other key works planned to launch Carlos Acosta’s first full season
Build a new creative and presenting partnership with Birmingham Repertory Theatre ‘the Rep’.

Lockdown in March 2020 meant the loss of the whole of the summer season including Carlos Acosta’s inaugural ‘ Curated by Carlos’ festival to celebrate his first season as Director. We were clear that BRB’s best chance of longterm survival is to bring back performance in a staged and planned manner in order that BRB could protect its elite performance skills, earn income, foster and build audiences and supporters. BRB was one of the few dance and theatre companies in the UK to return to a programme of live and digital performance at any scale from autumn 2020.

Despite having only been in post for two months when the pandemic forced the shut-down of theatres, Carlos Acosta demonstrated his energy and leadership by refusing to be daunted and performance possibilities from local parks through to huge arenas were explored over summer and autumn 2020. Whilst many plans could not be realised, one positive and enduring legacy of the period was the new presenting and producing partnership with ‘the Rep’. Without this partnership BRB would not have been able to perform in Birmingham, nor prepare productions for touring or digital relay between October 2020 and July 2021.

The announcement of BRB’s programme for autumn 2020 shows was widely covered in the media as BRB was the first dance company to announce shows for live audiences. The mixed programme included a world premiere of Lazuli Sky which was commissioned to respond to social distancing; choreographed by Will Tuckett with projection design by Nina Dunn, one of the few female projection artists working in theatre. BRB’s triple bill was a catalyst for both Sadler’s Wells and Birmingham Rep deciding to re-open (albeit briefly due to the second national lockdown being announced on 5 November 2020) and were the first live shows with paying audiences in both venues since the lockdown.

On 7 November 2020, Birmingham Royal Ballet celebrated its 30th Anniversary in Birmingham with a free-streamed performance from Birmingham Town Hall including End of Time, Leibestod and Majisimo . The online show was a gift to the city of Birmingham to thank the city and audiences for all their support and offer a message of hope at a time when people were not able to enjoy live performances.

Throughout the first lockdown and into autumn 2020 BRB’s enduring ambition was to be able to present The Nutcracker for Christmas. Birmingham Repertory Theatre, once again, stepped up to the challenge and working in partnership, Carlos Acosta and Sean Foley, Artistic Director ‘The Rep’, worked togeehter to present a new adaptation of The Nutcracker using existing scenic elements, props and costumes alongside projections by Nina Dunn to create a version suitable for a smaller stage and cast. The plan was to present 13 live performances at Birmingham Rep but further to Tier 4 announcement on 2 December the decision was taken to make a for-digital version of The Nutcracker at The Rep . With two performances recorded and one live-streamed on 18 December 2020 which was available on demand until 24 December 2020. The only live performance of The Nutcracker in the UK in 2020. The Nutcracker enabled BRB to continue support vocational training for dancers with students from Elmhurst School for Dance forming one bubble of ‘Snowflakes’.

The impact of the third national lockdown in January 2021 was the cancellation of the Spring 2021 tour of Cinderella the May 2021 mid-scale tour and BRB’s home theatre, Birmingham Hippodrome staying closed until autumn 2021. The best course of action was to set a clear plan from January 2021 through until the end of the season July 2021. The constant changes of plans over autumn 2020 whilst successful in delivering performances had been exhausting for staff and a definitive plan was needed to eliminate uncertainty and enable BRB to plan into 2022. It was agreed that the company would work towards re-opening for live performances with socially distanced audiences in June 2021 ansd rehearsals for the summer performances re-started in March 2021.

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BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

We were delighted that Dominic Antonucci was appointed as BRB’s new Assistant Director on 26 February 2021. Dominic, who has worked for BRB for more than 25 years as a dancer and then ballet master, was successful in a strong field of candidates from the UK and internationally. The announcement was warmly welcomed by the company.

Overall, in 2020-21 the company gave 13 performances - 8 in Birmingham and 5 in London of which 3 performances were behind closed doors due to covid and broadcast either live or video on demand (2019-20: 140 performances – 70 in Birmingham, 70 on tour in the UK) with live audiences of approximately 2,400 (2019-20: 152,000) plus 12,775 digital audiences for paid for live or video on demand performances.

The complete repertory performed during the year was:

BALLET	CHOREOGRAPHY	MUSIC
Lazuli Sky	Will Tuckett	John Adams
Our Waltzes	Vincente Nebrada	Teresa Carreño Salvador Llamozas Manuel Guadalajara Isabel de Maury Sofia Limonta Ramon Delgado Palacios Heraclio Fernández
Liebestod	Valery Panove	Richard Wagner
Majisimo	Jorge Garcia	Massenet
End of Time	Ben Stevenson	Serguei Rachmaninoff
The Nutcracker	Sir Peter Wright	Pyotr Ilyich Tchaikovsky

Full repertory by venue was as follows:

VENUE (S)	DATE	PROGRAMME
Birmingham Rep Sadlers Wells, London	October 2020	Our Waltzes Liebestod Lazuli Sky
Birmingham Town Hall	November 2020	End of Time Liebestod Majisimo
Birmingham Rep	December 2020	The Nutcracker

Audience Reach and Growth

Audience Development objectives for 2020-21 were to:

Use digital technology to increase audiences and engagement

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BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

Increase BRB’s press and media profile to communicate Carlos Acosta’s artistic vision and mission
Grow a new dance and audience strategy with ‘The Rep’
Continue to work with key venue partners on long-term audience development as part of BRB’s digital and live performance plans

BRB has significantly extended access to audiences through growing a successful and varied online programme of free and pay per view performances, events and behind the scenes access.

The Company’s digital initiative sits within the ‘Shout Louder, Sell More Tickets’ strategy that has driven much success since the arrival of Carlos Acosta as Director in January 2020.

We saw a steady increase in audiences in free streamed over the summer and into the autumn:

Brief Nostalgia: 4,000 viewers; Cinderella: 15,800; Solos and Pas de Deuxs coaching show: 16,900. By November 2020 BRB at 30 online show had 40,100 views.

After the success of the ‘free to see’ digital strategy in 2020, BRB’s Board challenged the Company to deliver its first paid-for content with a recording of the new Lazuli Sky Triple Bill at The Rep. Working with The Space and partner venues including Sadlers Wells The Rep, Theatre Royal Plymouth, Mayflower Southampton and The Lowry Salford, a distribution strategy for the film was developed to promote the show to BRB audiences nationally. Digital Tickets went on sale in late October 20, with the show premiering on 01 November with 2,357 tickets sold in addition to the live audience.

The majority of marketing for live shows in 2021-22 used online and digital media as opposed to traditional print media. When BRB’s The Nutcracke r at The REP went on sale for in-person performances it took almost £73k in 1- day, The REP’s biggest on-sale day ever. With the subsequent cancellation of the live performances in December 20 BRB had only had two weeks to organise the filming and selling of The Nutcracker in time for the live streamed first show on 18 December 2020. BRB commissioned renowned dance for film-maker, Ross MacGibbon, to create both a livestream and video-on-demand version to distribute the TicketCo platform. Livestream took place on 18[th] December, with the VOD film running from the 19-24 December The Nutcracker at the Rep sold over 10,400 tickets for the livestream and video on demand running until 24 December 2020 with gross revenue of £142,000

A second cast performance was recorded to make a second film, broadcast during the February 2021 half-term break. This second film is also a learning resource for BRB’s LEAP team.

Social media presence and activity grew significantly over the period with Facebook, Twitter and Instagram seeing a 33% increase in BRB page ‘likes’ in the period. Social media video views exceeded twenty million (459% increase) and social media engagement (reactions, comments and shares on a post) grew by 400% to almost two million.

Carlos Acosta’s first major digital commission for BRB, Empty Stage was released on 19 February and has been incredibly successful in terms of viewing figures, and responses from online audiences, peer to peer feedback, and press coverage. The full 5 minute film has been watched over 30,000 times on youtube. “Beautiful. Thank you. Watching this, sorting out screws and bolts in the National Theatre of Scotland Stores, having a quiet greet to myself! Waiting...just waiting...to get up and running again.”

Engagement and Participation

Offering opportunities to connect with Birmingham Royal Ballet through learning, engagement, access and participation (LEAP) programmes is one of the ways in which the company can take ballet and associated activities out beyond the traditional theatre presentations making ballet, dance, drama and music accessible art forms for everyone. BRB’s LEAP work had to go digital when the pandemic started. BRB delivered 411 structured sessions to more than 5,800 participants and created a range of online resources that were free to access.

Our LEAP objectives for the year were to:

Continue BRB’s three flagship programmes by offering an online programme during the Covid 19 pandemic

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BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

Offer a programme of online classes, activities and events to provide new insights and build engagement and interactions

Dance Track - BRB’s talent development programme for primary school children. Dance Track is key in the work BRB does to encourage arts participation across all ages, genders and backgrounds, opening up the art-form to children and families who otherwise may not engage. BRB re-started Dance Track classes online in summer 2020 and worked with schools to provide laptops to participants who needed them. Despite the challenges of the lock down and covid, 22 Dance Track children were offered pre-vocational training places on either the Royal Ballet School or Elmhurst junior associate programmes in November 2020.

Freefall Dance Company (talented adults with severe learning difficulties) - Freefall Dance Company is an ensemble of highly gifted dancers with severe learning disabilities. Throughout the pandemic, Lee Fisher; Artistic Director of Freefall has been delivering classes via zoom. This has been a lifeline for many of the ‘Freefallers’ when so much of their usual activity was interrupted by lockdown. ‘ I have to tell you Chris is really enjoying the Zoom sessions, so thank you for setting them up. It's lovely for me and Dave too, to be able to watch him dancing!’ – Parent. The dancers also created an animated film launched on Disability Awareness Day which was viewed 11,000 times.

LEAP Ambassadors - (formerly BRB Ambassadors) programme was re-launched in September 2019 as a FREE year long residency with BRB for young people aged 16-25 with limited access to ballet, the arts, culture and education. The focus of the programme was to provide young people with the skills needed to create, take part in and contribute to community arts projects in the future. The six LEAP Ambassadors continued to meet online rather than in person and created a film to celebrate and share their experiences of being a LEAP ambassador. All participants achieved their Bronze Arts Award, an achievement in lockdown. A new cohort of Ambassadors will be recruited in 2021

In September 2020, LEAP partnered with Birmingham Museums Trust at Aston Hall, with a special “Ballet, What’s That?” event as part of Birmingham Heritage Weekend. Sadly, this was the only live event delivered by the LEAP team in 2020-21.

BRB obtained the rights to re-broadcast for free the Ballet Hoo: Ballet Changed My Life series (Channel 4 – 2006) . This was part of our strategy to profile and tell the story of BRB’s LEAP work to a wider audience.

A number of free to view classes based on existing BRB programmes were made available online including Baby Ballet, Seated Class and Cinderella for 5-11 years well as well as pay-per-view online ballet training sessions based on The Nutcracker delivered by our LEAP team and filmed on stage in The Nutcracker sets.

FINANCIAL REVIEW

Birmingham Royal Ballet’s primary financial objective for the period was to maintain general, unrestricted reserves (excluding capital reserves) at a minimum of £1,000,000 with a target to grow to £1,500,000 by March 2022.

The group results for the period are set out in the financial statements on page 31 onwards.

The period to 31 March 2021 ended with a surplus on activities including the endowment fund of £3,020,608 (201920 deficit £348,472) giving total accumulated reserves of £10,263,618 (2019-20 £5,944,788).

The year-end result demonstrates the success of our commitment to prioritise protection of BRB’s performing capability through the pandemic as the best route to recovery by

Finding opportunities to continue performing and earn income
Active fundraising including Culture Recovery Funding from Arts Council England and Garfield Weston Foundation
Use of furlough funding through the Corona Virus Job Retention Scheme

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This has enabled BRB to protect jobs as well as designate funds for productions and performances which were postponed in 2020-21 to future periods.

The surplus analysed across funds was as follows:

General unrestricted funds - £2,909,866
Restricted funds – £671,095
Endowment funds £737,869

Unrestricted reserves, excluding the capital reserve for the refurbishment of BRB’s Thorp Street premises, presently stand at £4,414,490 which is in accordance with the revised reserves policy as outlined on page 23 of this report. Total unrestricted reserves are £6,373,828 (2019-20: £3,463,962) including the designated capital refurbishment reserve of £1,958,928 (2019-20: £2,067,758).

Raising Funds

Primary objectives 2020-21 were to

Continue to meet the funding requirements of Arts Council England wherever possible through a revised programme of live and digital performances and LEAP activity through to 31 March 2021 as a bridge to 2021/22 and beyond in preparation for a new NPO funding round in 2023
Secure at least one major gift to support Carlos Acosta’s new artistic vision and mission
Devise a programme of online events to enable supporters and donors to maintain their contact with the company during the Covid 19 pandemic

As in previous years our principal funding sources are:

Arts Council England – £8,036,194 (2019-20: £7,891,000) revenue funding to contribute towards Birmingham Royal Ballet’s core operating costs and the costs of delivering performances and activities including touring nationally, middle scale touring, audience development activity and our learning and outreach programme.
Birmingham City Council – £157,850 (2019-20: £154,000) revenue funding to contribute towards BRB’s core operating costs and the costs of delivering performances and learning and outreach activities primarily in Birmingham.

Core revenue funding from our major revenue funders, Arts Council England and Birmingham City Council, accounted for 60% of total income (2019-20: 52%).

Arts Council England funding for the next two years is committed as follows:

2021-22 - £8,036,000

2022-23 - £8,036,000

Birmingham Royal Ballet received £2,777,918 furlough grant income from the government towards a total staff cost of £8,021,102 for the year. From April 2020 to July 2020 up to 87% of BRB staff were furloughed. Dancers, ballet staff and technical/wardrobe staff returned to rehearsal studios, offices and workshops from August 2020 working on a part furlough basis to the end of calendar year 2020. The second full lockdown in January 2021 led to another two months of full furlough for approximately 75% of the company. BRB made its final furlough grant claim for May 2021. Furlough grant income has been vital in enabling BRB to preserve vital skills to enable the company to adapt its activity, return to performance and thereby continue to thrive during the covid pandemic. BRB has used furlough flexibly to protect most jobs and offered a limited voluntary leavers programme to reduce core salary cost and open up opportunity to restructure.

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BRB was awarded £500,000 from Arts Council England’s first round of Culture Recovery Funding (October 2021). This funding supported

Adapted performances during Autumn and Christmas 2020
Digital Relay Lazuli Sky programme, Birmingham Town Hall ’BRB at 30’ and The Nutcracker
Live and digital audience development plan from July 2021 working with the TRG consultancy.
Voluntary Leavers Scheme, completed 31 March 2021 with 14 leavers plus existing vacancies creating capacity for restructuring.

In February 2021, BRB was awarded £600,000 from the Garfield Weston Foundation to support recovery from the impact of the COVID-19 pandemic. The grant was one of the largest awards and secured against significant competition. The grant will support increase in the infrastructure and expertise to create and distribute digital content and enable BRB to invest in a state-of-the-art, energy-efficient lighting rig which will be in use by Christmas 2021.

In March 2021, BRB was awarded a further £175,000 from the second round of Arts Council England’s Culture Recovery funding to support investment in digital content and capital investment in a ‘covid-safe’ workplace at BRB stores between April and June 2021.

Total income from donations, membership schemes and other fundraising activity during the year was £1,675,430 (2019-20: £1,246,280) of which donations (including legacies) from private individuals were £570,653 (2019-20 £547,054).

We would like to take this opportunity to acknowledge the contribution Mr Charles Glanville, former Birmingham Royal Ballet board member and longstanding supporter of BRB’s Big Give Christmas appeal, for increasing his annual support of this campaign in 2020. Charles provided the entire £25,000 match funding required for the 2020 Christmas appeal. This funding enabled BRB to release the ‘champion funds’ generously provided by The Reed Foundation to reach £94,000 total income from the Big Give Appeal.

Income from trusts and foundations for the year was £1,510,957 (2019-20: £699,226).

We have been successful in growing grant income and would like to acknowledge the support of the following trusts and foundations that have supported Birmingham Royal Ballet during 2020-21:

Alison Hillman Charitable Trust

Austin and Hope Pilkington Trust

Baron Davenport's Charity

Bayfield Charitable Trust

Dumbreck Charity Edgar E. Lawley Foundation Eveson Charitable Trust

FEDORA

George Fentham Birmingham Charity

GJW Turner Trust

GNC Trust

Henry James Sayer Charity

IMI Critical Engineering Charitable Appeals Committee

Langdale Trust

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Limoges Charitable Trust

M K Rose Charitable Trust Michael Watson Charitable Trust OAK Foundation

Quayle Charitable Trust Richard Cadbury Charitable Trust Souter Charitable Trust St Jude's Trust St Thomas' Dole Charity Stanley Picker Trust The Arts Society Birmingham

The Bernard Piggott Charitable Trust

The Brian Shaw Memorial Trust

The Calleva Foundation

The Cecil King Memorial Foundation

The Charles Brotherton Trust

The Chatwin Trust

The Clore Duffield Foundation

The Foyle Foundation The Goodenough Charitable Trust The Grantham Yorke Trust The Grey Court Trust The Grimmitt Trust

The H Steven & P E Wood Charitable Trust

The Hawthorne Charitable Trust

The James Frederick & Ethel Anne Measures Charity

The John Avins Trust The John S Cohen Foundation The John Sumner Trust The Kirby Laing Foundation The Linbury Trust The Loppylugs & Barbara Morrison Charitable Trust The Lord Austin Trust The Marchus Trust The Marsh Charitable Trust The Michael Bishop Foundation

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The Michael Marsh Charitable Trust

The Owen Family Trust

The Patricia Routledge Charitable Trust

The Peter and Teresa Harris Charitable Trust

The S and D Lloyd Charity

The Saintbury Trust

The Sterry Family Foundation

The Sylvia Adams Charitable Trust

The Vandervell Foundation

The Wilmcote Charitrust W E Dunn Charitable Trust The Keith Coombs Trust

The Reed Foundation

Royal Opera House Benevolent Fund

The £80,000 funding from The Linbury Trust contributed to the significant cost of filming The Nutcracker at The Rep and supported the cost of student dancers participating in the production.

Charitable Activities

Income from charitable activities in 2020-21 was £448,405 (2019-20: £5,160,680). This includes box office income for live and digital performances to £153,007 (2019-20: £3,442,351). Birmingham Royal Ballet received Theatre Tax Credit income of £849,328 in respect of 2019-20 (against an initial estimate of £740,000). It is estimated that Theatre Tax Credit for 2020-21 will be in the region of £160,000. The Theatre Tax Credit regime is a positive recognition of the contribution that both commercial and subsidised theatre makes to the economy and will help BRB to continue its commitment to investment in both new works and major revivals.

Expenditure on charitable activities in the year was £10,168,223 equivalent to 94% of total expenditure (2019-20: £14,861,650 equivalent to 96% of total expenditure).

BRB’s Board approved net £250,000 investment (excluding salary costs) in the autumn programme (50% of BRB’s planned artistic budget for autumn 2020). Carlos Acosta selected a flexible repertoire of new works for the company that could be covid-safe with minimal sets and costumes. Lazuli Sky Triple Bill was BRB’s first pay-per-view filmed show and sold 2,361 online tickets at an average price of £15, generating £27,000 which was shared between BRB and venue partners who helped to promote the online presentation.

BRB has successfully reduced costs of performances by adapting productions including The Nutcracker in Birmingham - (December 2020) and Cinderella (May 2021 postponed from March 2021) to deliver high quality and spectacular productions whilst ensuring running costs were commensurate with expected income.

Other cost and cash-flow mitigations employed to protect the organisation against loss of income during and after the Covid 19 pandemic:

VAT payment postponed to 2021
Pay and recruitment freeze including pay reductions for senior staff and across the wider organisation some pay elements converted to annual leave or waived in recognition of protection of core salary through the period to December 2020
Reduction of office space to make permanent savings from 2021 onwards.

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A structured review of costs with the aim to reduce organisational overheads including core salary costs by £1m.

GOING CONCERN

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

Looking forward to the financial year to 31 March 2022, Arts Council England (ACE) have confirmed that they want National Portfolio Organisations (NPO) to focus on plans that support their resilience and sustainability. The next full NPO funding period will start from 1 April 2023. BRB has successfully applied for NPO funding for the transitional 2022-23 financial year for funding of £8,036,000 which means that BRB has confirmed funding through to 31 March 2023. BRB is well placed to respond to the expectations of Arts Council England’s new 10 year strategy, ‘Let’s Create’. Carlos Acosta’s programming is gaining international recognition, BRB is rated ‘strong’ for the Creative Case for Diversity (critical achievement for securing future funding) and an emerging skills strategy will focus on talent development and routes into theatre and creative industries.

Financial modelling for the period through to 31 March 2023 anticipates a two years of investment in artistic programming supported by reserves set aside for this purpose, as outlined in the updated reserves policy, and growth in fundraising. Further to the voluntary leavers programme in 2021 there will be some organisational restructuring. This includes the Brand and Marketing team to establish a clear distinction and focus on earned income and audience growth with a separate team to focus on digital content creation and distribution. BRB’s fixed cost base actively managed including contract reviews, review of vacancies prior to any recruitment and reduction in leased office space.

BRB also secured a significant culture recovery grant of £600,000 from Garfield Weston Foundation to fund capital investment in a new efficient lighting rig and digital infrastructure.

Programme plans for the period to 31 March 2022 have been finalised and plans to 31 March 2023 are well progressed. Modelling for 2021-22 includes reduced income assumptions based on some uncertainty around returning to theatres in autumn and winter 2021. To support different audience choices we have maintained a number of socially distanced performances during autumn 2021

Should earned income be lower than anticipated due to ongoing uncertainty reducing audience confidence in combination with inflationary pressures, the Board will consider requesting permission from Arts Council England to use a portion of the ACE Catalyst Funding, which contributed the match funding for BRB’s Catalyst/Cadbury Family Endowment, to support financial resilience as outlined in Culture Recovery Funding guidelines. The Directors continue to take all available steps to maintain sufficient resources in order that Birmingham Royal Ballet can continue and based on projections and available information, have a reasonable expectation that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of signing these financial statements and therefore have prepared the financial statements on a going concern basis.

Further details regarding the adoption of the going concern basis can be found in note 1 of the financial statements.

RISK MANAGEMENT

Birmingham Royal Ballet has a comprehensive strategic business plan setting out the major opportunities available to the charity and the risks to which it is exposed. The Directors review the plans regularly. As part of this process, the Directors have implemented a risk management strategy, which comprises:

an annual review of the risks which the charity may face;
the establishment of systems and procedures to mitigate those risks identified in the plan; and

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the implementation of procedures designed to minimise any potential impact on the charity should any of those risks materialise.

The primary risk during 2020-21 was the impact of the covid pandemic on the long-term stability of Birmingham Royal Ballet and the wider performing arts and theatre sector. This includes assessing the impact of an extended period of closure into autumn 2021 for many of BRB’s partner venues as well as the impact of varying audience confidence, changing disposable income, supply chain disruption and inflation into 2022.

During 2020-21 BRB has successfully managed risk through a combination of:

Corona Virus Job Retention Scheme to fund salary cost and protect jobs
Culture Recovery funding
Managed return to performing activity to maintain performance capability of the company and earn income
Moving activity online to maintain contact and affinity with existing supporters and to create opportunity to engage with new audiences
Cost management including a limited voluntary leavers scheme

PLANS FOR FUTURE PERIODS

The appointment of Carlos Acosta was critical to the future of Birmingham Royal Ballet by building on the Company’s inheritance and reshaping it for the 21[st] century. Whilst Carlos’ exciting plans for his ‘Curated by Carlos’ Festival in Summer 2020 and original plans for a first full season from Autumn 2020 were postponed due to the Covid 19 pandemic, BRB has continued to create art and engage with supporters and participants through digital and live events and performances.

The strategic priorities for the period to March 2022 are to ensure that BRB emerges from the Covid 19 crisis as a resilient and sustainable organisation by:

RAISING FUNDS

Continuing to meet the funding requirements of Arts Council England wherever possible through a revised programme of live and digital performances and LEAP activity through to 31 March 2021 as a bridge to 2021-22 and beyond in preparation for a new NPO funding round in 2023
Submitting an application to Arts Council England for extension the extension of NPO funding for period to 31 March 2023. The application was submitted on 15 September 2021 and funding for 202223 was confirmed on 17 December 2021
Outline strategic goals to respond to Arts Council England’s ‘Lets Create’ strategy and deliver a full NPO application by 26 April 2022

CHARITABLE ACTIVITIES:

Performance and Production

Prepare detailed programme plans to 31 March 2023
Launch Carlos Acosta’s first full performance season with Curated by Carlos Festival at The Rep in June 2021
Return to Birmingham Hippodrome for a season of programmes based on Romeo and Juliet
Present an adapted and spectacular version of The Nutcracker at Birmingham Hippodrome in 2021 whilst the beautiful sets for BRB’s flagship production of Sir Peter Wright’s Nutcracker are being rebuilt for presentation in 2022.

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Returning to the Royal Albert Hall for a fourth season of performances of The Nutcracker in December 2021
Premiere and tour a new production of Don Quixote in February 2022

Audience Reach and Development – Birmingham Royal Ballet will continue to engage with as wide and varied an audience as possible to demonstrate that ballet is an art form for all by:

Re-structuring the Brand and Marketing team and setting up new Digital team.
Implementing a new audience development strategy to re-build, grow and broaden audiences post pandemic
Building on the success of 2020-21 investment in BRB’s digital infrastructure, supported by Garfield Weston Foundation funding, and developing content to increase audiences and engagement

Engagement and Participation – Birmingham Royal Ballet will offer unique opportunities and high quality experiences for people of all ages and backgrounds to engage with and participate in ballet and the performing arts by:

Continuing to provide classes for DanceTrack and Freefall online prior to the return of live classes which re-commenced in autumn 2021
Recruiting a new cohort of ambassadors to start working with BRB in 2022
Offering a programme of online classes, activities and events to provide new insights and build engagement and interactions
Devising and testing LEAP activities focussing on music
Undertaking research funded by Calouste Gulbenkian Foundation to inform BRB as to how it can support skills development and routes into working in theatre and creative industries

BRB’s strategic priorities are underpinned by governance, organisational development and resilience strategies which will focus on:

GOVERNANCE AND ORGANISATIONAL DEVELOPMENT

Reviewing the governance framework for BRB including Board skills and sub-committee structure to ensure scrutiny of key activity and risk
Negotiate with unions new dancers & musicians’ contracts including media agreement buy out for filming / broadcast rights
Improving environmental performance through the reduction of office space occupied by the organisation and reducing transport through hybrid working

FINANCIAL STABILITY

Grow general, unrestricted reserves (excluding capital reserves) to the equivalent of 8 weeks turnover.
Undertake a thorough review of financial systems, controls and management information to ensure that these are fit for purpose and future proof to support BRB’s artistic and financial strategy for the next 10 years

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KEY POLICIES

Financial Management:

Board authority - the Board is responsible for agreement of Birmingham Royal Ballet’s overall strategy including agreement of business plans and approval of key organisational policies to meet Birmingham Royal Ballet’s legal obligations, operational requirements and/or strategy implementation. This includes approval of the Annual Budget prepared in accordance with agreed activity plans, approval of proposals for significant capital investment projects over £50,000, approval of fundraising programmes, significant changes in financial procedures and other internal controls, approval of the Annual Report, the appointment of Bankers and investment managers, approval of changes to banking arrangements and approval of the reserves, investment and remuneration policies.
Budget setting and control – the Senior Leadership Team is responsible for proposing their departmental budgets based on the planned activity for the year. These departmental budgets are reviewed and combined to build a master budget for Birmingham Royal Ballet as a whole. The Chief Operating Officer and Chief Executive are responsible for proposing a final balanced budget for approval by the Board of Directors. Senior Managers are authorised to commit expenditure in accordance with their final approved budgets unless these are subject to further revision during the course of a financial year in the light of prevailing circumstances (see under financial reporting and review). All expenditure is reviewed and approved for payment by the Finance Manager or Chief Operating Officer.
Financial reporting and review – A company finance report and forecast to the year-end is presented at each Board and Finance and General Purposes Committee meeting. All Senior Managers receive a copy of this finance report in addition to their individual monthly budget reports. Where significant variances against budget are identified, compensating actions are identified and agreed by the Senior Management Team. This will usually involve identifying cost savings as performing activity for the year is fixed at least a year in advance and our major sources of income are also fixed. The major financial risk that faces the organisation is a shortfall in earned income sources such as box office income and fundraising income. Both these income sources can be highly variable and are subject to a number of influences that are outside the direct control of Birmingham Royal Ballet. As a result the key to financial stability is careful cost control in conjunction with growing existing income and identifying and developing new income streams.

Management remuneration

BRB is committed to paying staff fairly and in a way to attract and retain the right skills to deliver its charitable objectives.

The Board is responsible for agreeing the annual pay award for the staff as a whole and a sub-committee of the Board will be convened as necessary to consider the remuneration of the Chief Executive and The Director.

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The main responsibilities of the Board in respect of remuneration are to:

Determine the remuneration package of the key management personnel - the Chief Executive and ‘The Director’;
Approve the annual percentage increase in the payroll for all staff (which can be zero) taking into account prevailing inflation rates and recommendations from the Chief Executive; and
Approve pension arrangements and pension policy.

In determining BRB’s remuneration, the Board takes into account all factors which are deemed necessary and remuneration policy, benefits and rewards strategy is reviewed as part of the strategic planning process with a priority to invest in skills and employment. This reflects the fact that delivery of BRB’s charitable objectives is dependent on our highly skilled performers and staff, the Company’s most important asset and staff costs constituting the largest single element of charitable expenditure.

Reserves

The reserves policy was reviewed and approved by the Board in March 2021.

The covid pandemic has brought renewed consideration to the level of reserves held by arts organisations such that the Culture Recovery Funding programme included a criteria that funding could be used for reflating reserves up to the equivalent of up to eight weeks’.

It was agreed that BRB’s reserves policy be revised to increase our target for general, undesignated reserves to the equivalent of eight weeks turnover which is approximately £2.3m.

In addition to the increased target for general reserves it was agreed that £1.5m be set aside in designated reserves to fund activity postponed from 2020-21 as follows

£1m – Carlos Acosta’s new artistic vision including the ‘Created by Carlos’ programmes (Summer and Autumn 2021) and a new production of Don Quixote
£500k – to complete the re-design and rebuild of BRB’s flagship production of The Nutcracker based on John McFarlanes original designs updated for 2022. The refurbishment of ‘The Red Room’ has been raised through the Big Give but the additional commitment would enable BRB to complete the full production.

Other designated funds include:

Capital Grant Fund – being funds designated for investment in major projects to purchase new or replace existing fixed assets. This fund will be used to support further investment in BRB’s premises to ensure space is used to best effect and that all office work areas are of an appropriate standard. This fund will be used to support reconfiguration of office space to create a safe, post Covid work environment in 2020-21
Thorp Street Refurbishment - being the funds relating to the Thorp Street refurbishment works. This fund is expended over 25 years from 2014/15. This fund could only be realised by disposal of the BRB Thorp Street premises which is leased by Birmingham Royal Ballet from Birmingham Hippodrome on a 125 year lease from 2001
Community Engagement Fund – represents funds received from the sale of investments by Birmingham Royal Ballet Trust prior to the winding up of the Trust on 31 March 2005 to support educational activities particularly in association with dance and choreographic training. The use of these funds has been widened and re-designated to support further development of our community engagement activity in accordance with our 2015-18 Business Plan. This fund will be used to support the development of our participation and engagement programmes in Birmingham and on

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tour particularly in support of open access opportunities with the intention that the fund will be expended by 2025

New Productions Fund - to support investment in new productions that will increase the repertory available for performances where funding is not available from private philanthropic sources. This fund will be used to support productions of new one act ballets in the NPO period to 2022.

Restricted funds - Restricted funds include donations, gifts, grants and legacies received whose use is restricted to purposes specified by the donor.

Endowment funds - Endowment funds are amounts that have been donated with the intention that they be invested to produce income, whose use is restricted to purposes specified by the donor. There is presently one endowment fund.

The Catalyst/Cadbury Family Expendable Endowment Fund for the purpose of funding dance fellowships (The Robin Cadbury Dance Fellowships) to support young dancers with teaching, training and mentoring in perpetuity. The donations received are matched by funding from Arts Council Catalyst Endowment Scheme. This endowment period is 25 years until 1 November 2037 after which the fund is expendable.

Investments:

General objectives - The cash and other investments of Birmingham Royal Ballet must be managed in such a way as to safeguard the capital value of those assets to enable Birmingham Royal Ballet to carry out its charitable purposes effectively in both the short term and over the longer term. Where possible, the value of invested assets should be enhanced so as to at least keep pace with inflation.

Short-term cash and cash contingency funds - To retain flexibility and availability of these funds, current account monies in excess of monthly operating requirements are transferred to higher rate call accounts or short-term fixed interest money market deposit accounts to maximise interest rates received. Cash investments mature on a rolling basis to ensure availability of funds and no cash investment is invested for notice periods exceeding 12 months.

Medium-term investments - Where there are surplus cash funds available for investment in excess of one year but likely to be required for expenditure within a three to five year time frame fixed interest vehicles such as gilts, bonds including index linked bonds can be considered. Investment in such vehicles should be assessed for:

Financial return;
Protection against inflation in addition to offering a financial return;
Risk of default; and
Tradeability in the event of the need to liquidate assets.

There are no medium term investments held by Birmingham Royal Ballet at present.

Long-term investments and endowment funds - Funds held for the long term (a minimum of three years but more likely to be in excess of five years) or as expendable endowment funds are held for the purpose of securing a financial return which can be applied in the furtherance of Birmingham Royal Ballet’s charitable objects and cannot be used in a way which would erode the capital of the fund, subject to any special provisions which would allow the expenditure of capital in certain circumstances.

Acceptable risk - Funds invested for the short to medium term will be held in low risk deposit accounts or fixed interest investments in order to avoid significant reductions in capital value and will be available to liquidate over a maximum of 12 months. Long term investments and endowments will be held across a mixed portfolio of investments to achieve both capital growth and return over the long term (minimum of five to seven years). It is accepted that some investments within the portfolio may be higher risk but overall the portfolio should not be exposed

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to more than a medium risk profile to balance the opportunity for increased investment returns against the risk of capital loss. It is accepted that the investments held for the long term are likely to see volatility over the short to medium term and may even have periods of negative return for certain asset classes.

Funds are managed in accordance with the investment strategy agreed with Smith and Williamson and the performance of the fund to date is in line with our policy of achieving a balance between income and capital growth in accordance with the investment policy for endowment funds.

TAXATION

The Company is a charity for tax purposes and is entitled to claim charitable tax exemptions. The Company has no liability to tax on its charitable activities.

AUDITOR

Each of the persons who is a director at the date of approval of this report confirms that:

so far as the director is aware, there is no relevant audit information of which the charitable company's auditor is unaware; and
the directors have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006. Deloitte LLP have expressed their willingness to continue in office as auditor and a resolution to reappoint them will be proposed at the forthcoming Annual General Meeting.

This Directors Report (including the Strategic Report) was approved and authorised for issue by the Directors on 26 January 2022.

Sir David Normington

Chair of the Board

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TRUSTEES’ RESPONSIBILITIES STATEMENT

The directors (who are also trustees of Birmingham Royal Ballet for the purposes of charity law) are responsible for preparing the Directors' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgments and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the directors are aware:

there is no relevant audit information of which the charitable company's auditor is unaware; and
the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The directors are responsible for the maintenance and integrity of the corporate and financial information included 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.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND DIRECTORS OF BIRMINGHAM ROYAL BALLET

Report on the audit of the financial statements

Opinion

In our opinion the financial statements of Birmingham Royal Ballet (the ‘charitable company’) and its subsidiary (‘the group’):

give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31[st] March 2021 and of the group’s incoming resources and application of resources, including the group’s income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements which comprise:

the consolidated statement of financial activities (including summary income and expenditure account);
the consolidated and parent charitable company balance sheets;
the consolidated cash flow statement; and
the related notes 1 to 23.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

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 group and of the parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (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 the group’s and parent charitable company’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.

Other information

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND DIRECTORS OF BIRMINGHAM ROYAL BALLET

The other information comprises the information included in the 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.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purpose 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.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent 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 group or the parent 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

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.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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 is detailed below.

We considered the nature of the group’s industry and its control environment, and reviewed the group’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory frameworks that the group operates in, and identified the key laws and regulations that:

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND DIRECTORS OF BIRMINGHAM ROYAL BALLET

had a direct effect on the determination of material amounts and disclosures in the financial statements, which included UK Charities Act and UK Companies Act; and
do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty, which included regulations of the Charity Commission for England and Wales (Charity Commission).

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud or non-compliance with laws and regulations in the following areas, and our specific procedures performed to address it are described below:

completeness of grant income. To address this risk we have tested a sample of grants from source records to their supporting evidence and recorded income, and assessed the classification of the income as either restricted or unrestricted; and
classification of funds between restricted and unrestricted. To address this risk we have tested a sample of restricted income and expenditure to their supporting evidence to assess whether they have been classified appropriately.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
reading minutes of meetings of those charged with governance.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND DIRECTORS OF BIRMINGHAM ROYAL BALLET

Report on other legal and regulatory requirements

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 trustees’ report, which includes the strategic report and the directors’ report prepared for the purposes of company law for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified any material misstatements in the strategic report or the directors’ report included within the trustees’ report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

adequate accounting records have not been kept by the parent charitable company, 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 returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

We have nothing to report in respect of these matters.

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. 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.

Sarah Anderson FCCA (Senior Statutory Auditor)

For and on behalf of Deloitte LLP

Statutory Auditor

Birmingham, United Kingdom

1/26/2022

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BIRMINGHAM ROYAL BALLET

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Including consolidated income and expenditure account) Year ended 31 March 2021

Notes Income from: Grants, Donations and Legacies 3 Charitable activities: Performance and related activities 4 Other trading activities 5 Investments 6 Total income Expenditure on: Raising funds 7 Charitable activities Production and Performance 8 Orchestra Projects 8 Education Projects 8 Other expenditure Total expenditure Net income/(expenditure) before investment gains and losses 10 Net gain/(loss) on investments Net income/(loss) for the year Transfers between funds 19 NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS: Total funds brought forward Net movement in funds for the year Total funds carried forward 19	Unrestricted 2021 £ 9,893,562 508,405 103,523 5,437 10,510,927 632,887 9,455,261 62,244 228,587 - 10,378,979 131,948 - 131,948 2,777,918 2,909,866 3,463,962 2,909,866 6,373,828	Restricted 2021 £ 3,856,330 - - - 3,856,330 - 303,217 - 104,100 - 407,317 3,449,013 - 3,449,013 (2,777,918) 671,095 198,087 671,095 869,182	Endowment 2021 £ - - - 56,084 56,084 - - - - 14,814 14,814 41,270 696,599 737,869 - 737,869 2,282,739 737,869 3,020,608	Total 2021 £ 13,749,892 508,405 103,523 61,521 14,423,341 632,887 9,758,478 62,244 332,687 14,814 10,801,110 3,622,231 696,599 4,318,830 - 4,318,830 5,944,788 4,318,830 10,263,618	Total 2020 £ 9,465,680 5,160,680 791,385 70,568 15,488,313 698,550 13,954,208 365,760 525,865 15,817 15,560,200 (71,887) (276,585) (348,472) - (348,472) 6,293,260 (348,472) 5,944,788

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BIRMINGHAM ROYAL BALLET

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Including consolidated income and expenditure account) Year ended 31 March 2021

There were no other recognised gains or losses other than those listed above and the net income for the year. All income and expenditure derives from continuing activities.

The net income/(expenditure) of parent charity for the year for Companies Act purposes is £3,318,830 (2020: (£348,472)). As permitted by Section 408 of the Companies Act 2006, no separate Statement of financial activities is presented in respect of the parent charity.

See note 12 for comparative Statement of Financial Activities for the period ended 31 March 2020.

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BIRMINGHAM ROYAL BALLET

BALANCE SHEETS As at 31 March 2021

Note FIXED ASSETS Tangible assets 13 Investment assets 14 CURRENT ASSETS Stocks 15 Debtors 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net Current Assets Total Assets Less Current Liabilities Creditors: amounts falling after one year 18 NET ASSETS FUNDS Unrestricted funds: General Funds 19 Designated funds 19 Restricted funds 19 Endowment funds 19	2021 Group £ 2,235,397 3,020,608 5,256,005 89,041 1,850,881 4,526,389 6,466,311 (1,458,698) 5,007,613 10,263,618 - 10,263,618 2,587,245 3,786,583 869,182 3,020,608 10,263,618	2020 Group £ 2,330,730 2,282,739 4,613,469 99,731 3,219,831 551,547 3,871,109 (2,539,790) 1,331,319 5,944,788 - 5,944,788 913,037 2,550,925 198,087 2,282,739 5,944,788	2021 Charity £ 2,235,397 3,020,609 5,256,006 89,041 1,850,882 4,526,389 6,466,312 (1,458,698) 5,007,613 10,263,618 - 10,263,618 2,587,246 3,786,583 869,182 3,020,608 10,263,618	2020 Charity £ 2,330,730 2,282,740 4,613,470 99,731 2,526,341 551,547 3,177,619 (1,846,300) 1,331,319 5,944,789 - 5,944,789 913,038 2,550,925 198,087 2,282,739 5,944,789

These financial statements of Birmingham Royal Ballet registered number 3320538 were approved by the Board of Directors and authorised for issue on 26 January 2022. They were signed on its behalf by:

Sir David Normington

Chair of the Board

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BIRMINGHAM ROYAL BALLET

CONSOLIDATED CASH FLOW STATEMENT Year ended 31 March 2021

Notes Cash flows from operating activities: *Net cash provided by /(used in) operating activities* 23 Cash flows from investing activities: Interest received Dividends received Purchase of property, plant and equipment Proceeds from sale of tangible fixed asset Movements in investment portfolio *Net cash flows (used in)/ provided by investing activities* Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at the end of the year Reconciliation to cash at bank and in hand: Cash at bank and in hand Cash equivalents Cash and cash equivalents	Total 2021 £ 4,077,097 5,437 56,084 (125,686) 3,181 (41,271) (102,255) 3,974,842 551,547 4,526,389 4,526,389 - 4,526,389	Total 2020 £ (345,706) 2,221 68,347 (87,010) 11,999 47,470 43,027 (302,679) 854,226 551,547 551,547 - 551,547

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

1. ACCOUNTING POLICIES

The principal accounting policies are set out below.

Company and charitable status

Birmingham Royal Ballet, a public benefit entity, is incorporated in the UK and registered in England and Wales as a company limited by guarantee not having a share capital. Each member has undertaken to contribute to the assets in the event of winding up a sum not exceeding £1. The charity is a registered charity. The registered office is given on page 3.

BRB Production Services Limited is a wholly owned subsidiary of Birmingham Royal Ballet.

Basis of accounting

The financial statements are prepared under the historical cost convention, with the exception of investments which have been included at market value, in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities (SORP 2019)” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS 102), effective 1 January 2019 and the Companies Act 2006.

The company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemption available to it in respect of its separate financial statements in relation to presentation of a cash flow statement.

Basis of Consolidation

Group financial statements have been prepared in respect of the company and its wholly owned subsidiary undertaking BRB Production Services Ltd. These financial statements have been consolidated on a line by line basis and the results of the subsidiary undertaking are disclosed in note 14.

Preparation of financial statements - going concern basis

These accounts have been prepared on the going concern basis.

The group and company’s activities and future plans are set out in the directors’ report.

The group and company manages its activities with positive unrestricted bank balances. The company’s forecasts and projections are cautious and include assumptions regarding social distancing in summer 2021 and continuing for some performances in autumn 2021. The option to withdraw funding from the Endowment Fund if required and the recent announcement (October 2021) of an increase in the rate of Theatre Tax Relief show that the company should be able to continue to operate on this basis.

Revenue grant funding represents the company’s largest income stream and Birmingham Royal Ballet is dependent on the continuing financial support of Arts Council England which has confirmed its commitment to fund Birmingham Royal Ballet to 31 March 2023; committing revenue funding of £8,036,000 per annum for the period.

The directors review and manage short-term fluctuations in our other income streams: box office, commercial and development income.

The company also relies on support from other funders including individuals, trusts, foundations and corporate bodies for maintaining the high standards and diversity of its output.

Based on the above, the directors believe that the company is well placed to manage its business risks successfully.

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, being at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

1. ACCOUNTING POLICIES (continued)

Income

Box office income, performance related fees and programmes

Box office income, performance related fees and income generated from the sale of programmes are recognised in the period of the related performances which is the point at which the charity is considered to meet the income recognition criteria (probable, entitlement and measurement) as per the accounting standards.

Donations and legacies

Donations and legacies are credited to the statement of financial activities when entitlement has passed and the income is probable to be received unless donated for a specific future period by the donor in which case income will be deferred to the relevant period.

Deferred income

Amounts invoiced in advance and other income, which is subject to conditions imposed by the donor relating to the charity’s entitlement to the funds, are carried forward as deferred income in the balance sheet. Amounts are recognised as income when the services are performed or the conditions imposed by the donor are satisfied.

Grants receivable

Capital grants receivable are recognised in the year of receipt. Revenue grants receivable are recognised in the year to which the grants relate. Revenue grants received in advance of the year to which they relate are carried forward as a creditor in the balance sheet.

Capital funds comprise grants/donations towards the cost of fixed assets to be used by the company for its charitable purposes. Such income may not be treated as a deduction from the capital cost.

Investment income

Investment income is recognised on an accruals basis.

Expenditure

All expenditure is accounted for on an accruals basis. Expenditure categories include salaries, depreciation and other costs as analysed in note 9.

Expenditure on raising funds is the costs associated with generating core funding grants, legacies and donations. These include any direct costs associated with these activities as well as an appropriate proportion of relevant staff costs, support costs, premises costs and depreciation.

Costs of activities for generating funds are the direct costs of our membership schemes, sponsorship and merchandising activities including direct staff costs and an appropriate proportion of support costs, premises costs and depreciation.

Costs of charitable activities include all costs relating to delivering the charitable objectives of the company as stated in the Directors’ report plus an appropriate proportion of support costs, premises costs and depreciation.

Support costs include general administration, management and governance costs including allocations of Chief Executive and Chief Operating Officer salaries, HR functions, finance, IT, audit fees, certain legal fees meetings and appropriate proportion of premises costs and depreciation. These costs are necessary for delivering activities but do not directly produce or constitute the activity.

Costs (including support and governance costs) have been allocated on a direct basis whenever possible and on an appropriate alternative basis primarily based on staff numbers or relevant head count. Chief Executive and Chief Operating officer salaries have been allocated based on an estimate of time spent in relation to governance of the organisation.

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

1. ACCOUNTING POLICIES (continued)

New production and revivals

The costs to the company of sets and wardrobe for new productions are charged in full to the relevant production’s initial performance season. Where the performance season spans more than one financial year the costs are amortised evenly over the total number of performances of the tour.

Revival costs are written off on the first night of the relevant production’s performance.

Costs incurred in the transport and set up of a production are assigned to the appropriate tour, in the year in which the tour occurred.

Prepayments for the next season are made in respect of productions to be presented in the next financial year.

Fund accounting

Unrestricted funds

Unrestricted funds are those which are expendable at the discretion of the Directors in furtherance of the objects of the charity.

Restricted funds

Restricted funds include donations, gifts, grants and legacies received whose use is restricted to purposes specified by the donor. Such purposes must be within the overall aims of the charity.

Designated funds

Designated funds are amounts which have been put aside at the discretion of the Directors and comprise funds for specific projects.

Expendable endowment fund

Endowment funds are amounts that have been donated with the intention that they be invested to produce income, whose use is restricted to purposes specified by the donor. Such purposes must be within the overall aims of the charity.

Taxation

The parent company is a registered charity and has no liability to corporation tax on its charitable activities under the Corporation Tax Act 2010 (chapters 2 and 3 of part ii, section 466 onwards) or Section 256 of the Taxation for Chargeable Gains Act 1992, to the extent surpluses are applied to its charitable purposes.

Current tax for the subsidiary company, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the company’s taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of the timing difference. Deferred tax is measured on a non-discounted basis.

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

Tangible fixed assets and depreciation

Depreciation is provided on cost in equal annual instalments over the estimated useful lives of the assets. The rates of depreciation are as follows:

Office equipment 5% - 25% per annum Computer equipment 25% per annum Technical equipment 10% - 33.3% per annum Premises transferred from Royal Opera House: Written off over the remaining life of the lease

Investments

Investments are included in the financial statements at market value. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals on a quarterly basis.

Investments in subsidiary undertakings are measured at cost less impairment.

Stocks

Stock consists of ballet shoes and merchandise for sale and are stated at the lower of cost and net realisable value.

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

1. ACCOUNTING POLICIES (continued)

Operating leases

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Employee benefits

All permanent employees of the group and company are eligible to be members of one of the following defined contribution pension schemes:

Birmingham Royal Ballet Pension Scheme; and
Musicians’ Union Pension Scheme.

The pension costs charged to the statement of financial activities represents the amount of contributions payable by the company to the pension schemes in respect of the accounting year.

Financial instruments

Financial assets and financial liabilities are recognised when the group and company becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs).

The group and company has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

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. 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. 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.

2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the group and company’s accounting policies, which are described in note 1, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The Directors do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure.

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

3. INCOME FROM GRANTS, DONATIONS & LEGACIES

Arts Council England Revenue funding Cross Border Touring Digital Transformation Project Culture Recovery Fund Birmingham City Council Revenue funding Other Donations Grants – Trusts and Foundations Donations Legacies Coronavirus Job Retention Scheme Furlough Arts Council England Revenue funding Cross Border Touring Digital Transformation Project Birmingham City Council Revenue funding Arts Champions Donations Grants – Trusts and Foundations Donations Legacies	2021 Un- restricted funds £ 8,036,194 - - 500,000 157,850 2,500 573,950 431,248 191,820 - 9,893,562 2020 Un- restricted funds £ 7,891,000 114,400 - 154,000 - 175,500 174,236 116,022	2021 Restricted funds £ - - - - - 937,007 139,405 2,000 2,777,918 3,856,330 2020 Restricted funds £ - - 60,000 - - 523,726 256,796 -	2021 Endowment funds £ - - - - - - - - - - 2020 Endowment funds £ - - - - - - - -
	8,625,158	840,522	-

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

4. INCOME FROM PERFORMANCE AND RELATED ACTIVITIES

Box office income Production sales and hires Programmes Livestream and Video on Demand Friends Orchestra projects Education Co-production fee Other fees and services Theatre Tax Credit Box office income Production sales and hires Programmes Livestream and Video on Demand Friends Orchestra projects Education Co-production fee Other fees and services Theatre Tax Credit	2021 Un- Restricted Funds £ 37,706 55,344 - 115,301 - 24,650 5,826 - 250 269,328 508,405 2020 Un- Restricted Funds £ 3,442,351 225,647 102,698 - - 274,173 150,793 41,258 29,038 894,722 5,160,680	2021 Restricted funds £ - - - - - - - - - - - 2020 Restricted funds £ - - - - - - - - - - -	2021 Endowment funds £ - - - - - - - - - - - 2020 Endowment funds £ - - - - - - - - - - -	2021 Total Funds £ 37,706 55,344 - 115,301 - 24,650 5,826 - 250 269,328
				508,405
				2020 Total funds £ 3,442,351 225,647 102,698 - - 274,173 150,793 41,258 29,038 894,722 5,160,680

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

5. OTHER TRADING ACTIVITIES

OTHER TRADING ACTIVITIES
Memberships Sponsorship Sale of merchandise Commissioning Fee	2021 £ 103,523 - - - 103,523	2020 £ 156,501 45,428 11,548 577,908
		791,385

6. ANALYSIS OF INCOME FROM INVESTMENTS

Unrestricted £ Bank interest 5,437 Dividends - 5,437 Unrestricted £ Bank interest 2,221 Dividends - 2,221	2021 Restricted £ Endowment £ - - - 56,084 - 56,084 2020 Restricted £ Endowment £ - - - 68,347 - 68,347	Total £ 5,437 56,084
		61,521
		Total £ 2,221 68,347
		70,568

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

7. ANALYSIS OF EXPENDITURE ON RAISING FUNDS

Activity Raising donations, grants and legacies Memberships and Subscription Schemes	Activities undertaken directly £ 392,475 33,183 425,658	Support costs £ 185,601 21,628 207,229	Total 2021 £ 578,076 54,811 632,887

Activity Raising donations, grants and legacies Memberships and Subscription Schemes	Activities undertaken directly £ 426,435 76,721 503,156	Support costs £ 175,118 20,276 195,394	Total 2020 £ 601,553 96,997 698,550

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

8. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

	Unrestricted	Total 2021 £ 9,455,261 62,244 228,587 9,746,092 Total 2021 £ 303,217 - 104,100 407,317
Activities ndertaken directly £ 7,624,215 51,430 184,006 7,859,651	Support costs £ 1,831,046 10,814 44,581 1,886,441 Restricted


Activities undertaken directly £ 248,044 - 83,797 331,841	Support costs £ 55,173 - 20,303 75,476 Unrestricted
Activities undertaken directly £ 11,526,233 355,622 353,656 12,235,511	Support costs £ 1,758,511 10,138 46,259 1,814,908 Restricted	Total 2020 £ 13,284,744 365,760 399,915 14,050,419
Activities undertaken directly £ 576,817 - 111,381 688,198	Support costs £ 92,647 - 14,569 107,216	Total 2020 £ 669,464 - 125,950 795,414

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

9. ANALYSIS OF SUPPORT COSTS

Staff costs Recruitment, training and development Office infrastructure Insurance Premises costs Depreciation	Raising funds £ 68,037 2,592 89,631 5,449 37,358 4,162 207,229	Production and performance £ 619,170 53,715 274,717 112,918 615,692 210,007 1,886,219	Orchestra projects £ 2,748 328 1,795 690 4,729 524 10,814	Education projects £ 16,486 1,969 10,772 4,139 28,373 3,145 64,884	Total 2021 £ 706,441 58,604 376,915 123,196 686,152 217,838 2,169,146

Governance costs included in the above amount to £222,962 in 2020-21 (2019-20: £188,864).

2020 Comparatives

Staff costs Recruitment, training and development Office infrastructure Insurance Premises costs Depreciation	Raising funds Production and performance £ £ 67,945 580,168 2,878 52,874 74,487 328,448 5,597 102,805 40,484 590,210 4,003 196,653 195,394 1,851,158	Orchestra projects £ 2,337 303 2,178 589 4,261 470 10,138	Learning projects £ 14,020 1,818 13,067 3,535 25,569 2,819 60,828	Total 2020 £ 664,470 57,873 418,180 112,526 660,524 203,945 2,117,518

10. NET INCOME/(EXPENDITURE) FOR THE YEAR

		2021	2020
		£	£
Income (Expenditure) is stated after charging:
Depreciation of owned assets		198,558	203,944
Rentals under operating leases		230,589	243,125
Auditor’s remuneration:
-	Fees payable to the company’s auditor for the audit of the company’s annual
	financial statements	20,130	19,550
-	Fees payable for the audit of the company’s subsidiary	3,190	3,100
-	Fees payable to the company’s auditor for other services:
	- Taxation services	-	4,500

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

11. ANALYSIS OF GROUP AND COMPANY STAFF COSTS, DIRECTOR REMUNERATION AND EXPENSES, AND THE COST OF KEY MANAGEMENT PERSONNEL

The average monthly number of employees was:

Raising funds Charitable activities Support	2021 No. 8 159 15 182	2020 No. 9 170 15 194

Their aggregate remuneration comprised:

Wages and salaries Social security costs Pension costs (including Dancers Career Development fund)	2021 £ 7,021,461 630,212 369,429 8,021,102	2020 £ 7,873,757 713,343 391,588 8,978,688

The aggregate remuneration above includes termination payments of £332,126 (2019-20: £169,125) including £nil additional pension contributions (2019-20 £28,300). All amounts were fully paid in cash during the year. The number of employees whose emoluments, excluding pension contributions but including benefits in kind, were in excess of £60,000 was:

£60,001 - £70,000 £70,001 - £80,000 £80,001 - £90,000 £90,001 - £100,000 £100,001 - £110,000 £110,001 - £120,000 £120,001 - £130,000 £250,001 - £260,000	2021 No. 7 5 2 - - 1 - 1	2020 No. 11 3 4 1 - - - 1 -

The key management personnel of the Group and Company are listed on page 6. The total remuneration (including pension contributions and social security costs) of the key management personnel of the Group and Company for the year totalled £414,325 (2020: £267,832).

Directors’ Remuneration

No Directors received remuneration during the current or prior year. Total travel and subsistence expenses of £nil (2020: £2,038) were paid to nil directors (2020: 3 directors).

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

12. COMPARATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31 March 2020

Unrestricted Notes 2020 £ Income from: Grants, Donations and Legacies 3 8,625,158 Charitable activities: Performance and related activities 4 5,160,680 Other trading activities 5 791,385 Investments 6 2,221 Total income 14,579,444 Expenditure on: Raising funds 7 698,550 Charitable activities Production and Performance 8 13,284,744 Orchestral Projects 8 365,760 Education Projects 8 399,915 Other resources expended - Total expenditure 10 14,748,969 Net gain/(loss) on investments - Net income/(loss) for the year (169,525) Transfers between funds 100,000 NET MOVEMENT IN FUNDS (69,525) RECONCILIATION OF FUNDS: Total funds brought forward 3,533,487 Net movement in funds for the year (69,525) Total funds carried forward 19 3,463,962	Restricted 2020 £ 840,522 - - - 840,522 - 669,464 - 125,950 - 795,414 - 45,108 - 45,108 152,979 45,108 198,087	Endowment 2020 £ - - - 68,347 68,347 - - - - 15,817 15,817 (276,585) (224,055) (100,000) (324,055) 2,606,794 (324,055) 2,282,739	Total 2020 £ 9,465,680 5,160,680 791,385 70,568 15,488,313 698,550 13,954,208 365,760 525,865 15,817 15,560,200 (276,585) (348,472) - (348,472) 6,293,260 (348,472) 5,944,788

There were no other recognised gains or losses other than those listed above and the net income for the year. All income and expenditure derives from continuing activities.

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

13. TANGIBLE FIXED ASSETS – GROUP AND CHARITY

Cost At 1 April 2020 Additions Disposals At 31 March 2021 Depreciation At 1 April 2020 Charge for the year Disposals At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020	Short Leasehold property £ 2,998,234 40,876 (92,292) 2,946,818 930,364 112,918 (92,181) 951,101 1,995,717 2,067,870	Computers £ 427,739 2,822 - 430,561 380,614 23,223 - 403,837 26,724 47,125	Fixtures, fittings and equipment £ 1,526,810 81,988 (104,615) 1,504,183 1,311,075 62,417 (82,265) 1,291,227 212,956 215,735	Total £ 4,952,783 125,686 (196,907) 4,881,562 2,622,053 198,558 (174,446) 2,646,165 2,235,397 2,330,730

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

14. FIXED ASSET INVESTMENTS – GROUP AND CHARITY 2021 Group £ 2020 Group £ Investments listed or traded on a recognised stock exchange 3,020,608 2,282,739 Subsidiary undertakings - - 3,020,608 2,282,739 Investments listed or traded on a recognised stock exchange Market value at 1 April 2020 Additions Disposal proceeds Unrealised/realised investment gains/(losses) Cash held with investment manager Closing value at 31 March 2021 2021 Market value % of portfolio £ UK equities 884,368 29% Overseas equities 1,137,464 37% UK fixed income 290,074 10% Overseas fixed income 60,334 2% Alternative assets 291,134 10% UK property 275,786 9% Cash 81,448 3% 3,020,608 100%	2021 Charity £ 3,020,608 1 3,020,609 2021 £ 2,260,293 403,561 (421,293) 696,599 81,448 3,020,608 Market value £ 624,280 868,250 201,728 97,828 259,287 208,920 22,446 2,282,739	2020 Charity £ 2,282,739 1
		2,282,740
		2020 £ 2,493,967 375,542 (332,631) (276,585) 22,446
		2,282,739
		2020 % of portfolio 27% 38% 9% 4% 12% 9% 1% 100%

The historical cost of the investments is £1,870,144 (2020: £1,887,876). Post year-end the value of investments has increased to £3,38,631 at 11 November 2021.

Subsidiary undertakings Cost At 1 April 2020 and 31 March 2021	2021 Group £ - -	2020 Group £ - -	2021 Charity £ 1 1	2020 Charity £ 1
				1

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

14. FIXED ASSET INVESTMENTS (continued)

The company owns the entire issued ordinary share capital of BRB Production Services Ltd, incorporated and registered in England and Wales (registered office Birmingham Royal Ballet, Thorp Street, B5 4AU), whose principal activity is theatrical production.

The result of the Company’s trading activities through its subsidiary undertaking is detailed below:

Profit and Loss account for the year ended 31 March 2021

Turnover Cost of sales Gross Loss Operating Loss Loss before taxation Theatre Tax Relief Profit for the financial year attributable to the equity shareholders of the Company Balance Sheet at 31 March 2021 Current assets Debtors Creditors: amounts falling due within one year Net current assets Total assets less current liabilities Net assets Capital and reserves Called-up share capital	2021 £ - - - - - - - 2021 £ 59,681 59,680 1 1 1 1	2020 £ 807,932 867,587 (59,655) (59,655) (59,655) 59,655 - 2020 £ 753,146 753,145 1 1 1 1

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

1 1

15. STOCKS - GROUP AND CHARITY

Shoes Merchandise 16. DEBTORS Trade debtors Other debtors Amount owed by subsidiary undertaking Prepayments and accrued income	2021 £ 89,041 - 89,041 2021 Group £ 58,494 1,339,413 - 452,974 1,850,881	2020 £ 93,864 5,867 99,731 2020 Group £ 1,587,817 1,199,186 - 432,828 3,219,831	2021 Charity £ 58,494 1,279,734 59,680 452,974 1,850,882	2020 Charity £ 894,327 1,139,531 59,655 432,828 2,526,341

Other debtors include £63,375 (2020: £63,375) in respect of a rent deposit which is due in more than one year.

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

17. CREDITORS: Amounts falling due within one year

Bank loans Trade creditors Other creditors Taxation and social security Accruals and deferred income Movements in deferred income (Group and Charity): Balance at 1 April 2020 Amounts released during the period Deferred in the current period Balance at 31 March 2021	2021 Group £ - 458,278 381,921 251,779 366,720 1,458,698 2021 £ 120,180 (104,180) 104,214 120,214	2020 Group £ 43,332 1,224,352 406,690 391,020 474,396 2,539,790 2020 £ 282,170 (281,669) 119,679 120,180	2021 Charity £ - 458,278 381,922 251,779 366,720 1,458,699	2020 Charity £ 43,332 530,861 406,691 391,020 474,396 1,846,300

Deferred income at 1 April 2020 comprised membership scheme income and donations and legacy income relating to activity in the periods to 1 April 2020 and 31 March 2021.

Deferred income at 31 March 2021 comprised grants, membership scheme income and donations relating to activity in the periods to 1 April 2021 and 31 March 2022.

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

18. CREDITORS: Amounts falling due after one year GROUP AND CHARITY

Bank loans Bank loans are repayable as follows: Within one year Between one to two years Between two to five years More than five years	2021 £ - - 2021 £ - - - - -	2020 £ -
		-
		2020 £ 43,332 - - -
		43,332

19. MOVEMENTS ON FUNDS

a) Restricted Funds (Group and Charity)

Garfield Weston Foundation Production and Performance Education Projects Coronavirus Job Retention Scheme - Furlough Nutcracker Sets & Costumes (Big Give 2020) Nutcracker Sets & Costumes (Big Give 2019) Digital Transformation Project (ACE) Nutcracker Costumes (Big Give 2018) Jerwood Apparatus Jerwood Ultrasound Machine	At 1 April 2020 £ - - - - - 119,649 40,000 10,157 16,342 11,939 198,087	Income in the period £ 600,000 277,738 104,100 2,777,918 96,574 - - - - - 3,856,330	Expenditure in the period £ - (277,738) (104,100) - - - (20,000) - (1,480) (3,999) (407,317)	Transfer in the period £ - - - (2,777,918) - - - - - - (2,777,918)	At 31 March 2021 £ 600,000 - - - 96,574 119,649 20,000 10,157 14,862 7,940 869,182

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

19. MOVEMENTS ON FUNDS (continued)

a) Restricted Funds (Group and Charity)

Production and Performance Education Projects Nutcracker Sets & Costumes (Big Give 2019) Digital Transformation Project (ACE) Nutcracker Costumes (Big Give 2018) Jerwood Apparatus Jerwood Ultrasound Machine	At 1 April 2019 £ - - - - 119,521 17,520 11,939 15,938 152,979	Income in the period £ 534,923 125,950 119,649 60,000 - - - - 840,522	Expenditure in the period £ (534,923) (125,950) - (20,000) (109,364) (1,178) (3,999) (3,999) (795,414)	Transfer in the period £ - - - - - - - - -	At 31 March 2020 £ - - 119,649 40,000 10,157 16,342 7,940 11,939 198,087

There were a number of production and performance, engagement and education projects funded by restricted grants and donations.

The Coronavirus Job Retention Scheme was utilised when our operations were adversely affected by coronavirus (COVID-19). As a result, a large number of employees were furloughed during the financial year. A grant was received to cover a portion of their usual monthly wage costs where employees were recorded as being on furlough. The grant was received as restricted income and transferred to fund unrestricted employee costs.

The Big Give 2020 and 2019 campaign raised funds for the refurbishment of our Nutcracker sets and costumes.

The Big Give 2018 campaign raised funds for the refurbishment of our Nutcracker costumes.

The Digital Transformation project is funded by Arts Council England and designated funds which supports BRB’s evolving and growing digital strategy.

The Jerwood centre purchased equipment and an ultrasound machine funded by restricted grants.

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

b) Designated funds (Group and Charity) comprise amounts set aside by the Directors in respect of:

Capital Grants Fund Community Engagement Fund New Productions Fund Thorp Street Refurbishment Digital Transformation Project New Artistic Vision Capital Grants Fund Community Engagement Fund New Productions Fund Thorp Street Refurbishment Digital Transformation Project	At 1 April 2020 £ 144,263 177,276 150,000 2,067,758 11,628 - 2,550,925 At 1 April 2019 £ 144,263 177,276 150,000 2,176,588 - 2,648,127	Income in the period £ - - - - - - - Income in the period £ - - - - 100,000 100,000	Expenditure in the period £ - - - (108,830) (111,249) - (220,079) Expenditure in the period £ - - - (108,830) (88,372) (197,202)	Transfer in the period £ (144,263) - 500,000 - 100,000 1,000,000 1,455,737 Transfer in the period £ - - - - - -	At 31 March 2021 £ - 177,276 650,000 1,958,928 379 1,000,000 3,786,583 At 31 March 2020 £ 144,263 177,276 150,000 2,067,758 11,628 2,550,925

The Capital Grants Fund represents income designated for the acquisition of fixed assets to be used by the company for its charitable purposes. Such income may not be treated as a deduction from the capital cost, therefore the depreciation on the underlying assets is charged to the designated fund.

The Community Engagement Fund represents amounts received following the decision to wind up Birmingham Royal Ballet Trust.

The New Productions Fund represents income designated to support major new productions that will extend the repertory available for Birmingham Royal Ballet performances.

The Digital Transformation project is funded by Arts Council England and designated funds from a three year grant from the Michael Bishop Foundation which support BRB ‘s evolving digital strategy.

The New Artistic Vision represents income designated to support Carlos Acosta’s new artistic vision including the ‘Created by Carlos’ programme and festival activity and the new production of Don Quixote.

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

19. MOVEMENTS ON FUNDS (continued)

c) Unrestricted, undesignated funds (Group):

General funds General funds c) Unrestricted, undesignated funds (Charity): General funds General funds	At 1 April 2020 £ 913,037 913,037 At 1 April 2019 £ 885,360 885,360 At 1 April 2020 £ 913,038 913,038 At 1 April 2019 £ 885,361 885,361	Net inflows in the period £ 352,027 352,027 Net outflows in the period £ (72,323) (72,323) Net inflows in the period £ 352,027 352,027 Net outflows in the period £ (72,323) (72,323)	Transfer in the period £ 1,322,181 1,322,181 Transfer in the period £ 100,000 100,000 Transfer in the period £ 1,322,181 1,322,181 Transfer in the period £ 100,000 100,000	At 31 March 2021 £ 2,527,245
				2,527,245
				At 31 March 2020 £ 913,037
				913,037
				At 31 March 2021 £ 2,587,246
				2,587,246
				At 31 March 2020 £ 913,038
				913,038

c) Unrestricted, undesignated funds (Charity):

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

19. MOVEMENTS ON FUNDS (continued)

d) Endowment funds (Group and Charity):

Catalyst/Cadbury Family Endowment Fund Catalyst/Cadbury Family Endowment Fund	At 1 April 2020 £ 2,282,739 2,282,739 At 1 April 2019 £ 2,606,794 2,606,794	Inflows in the period £ 737,869 737,869 Outflows in the period £ (224,055) (224,055)	Transfer in the period £ - - Transfer in the period £ (100,000) (100,000)	At 31 March 2021 £ 3,020,608 3,020,608 At 31 March 2020 £ 2,282,739 2,282,739

The Catalyst/Cadbury Family Endowment Fund represents donations received specifically for the purpose of funding dance fellowships to support young dancers with teaching, training and mentoring. The endowment period is 25 years until 1 November 2037 after which the fund is expendable.

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

19. MOVEMENTS ON FUNDS (continued)

e) Allocations of net assets between funds (Group):

2021 Unrestricted funds £ Investments 1 Cash at Bank and in Hand 3,587,509 Debtors 1,850,881 Stocks 89,041 Fixed Assets 2,212,595 Creditors (1,366,199) 6,373,828	2021 Restricted funds £ - 938,880 - - 22,802 (92,500) 869,182	2021 Endowment funds £ 3,020,608 - - - - - 3,020,608	2021 Total funds £ 3,020,609 4,526,389 1,850,881 89,041 2,235,397 (1,458,699) 10,263,619

2020 Comparatives

2020 Unrestricted funds £ Investments - Cash at Bank and in Hand 381,741 Debtors 3,219,831 Stocks 99,731 Fixed Assets 2,302,449 Creditors (2,539,790) 3,463,962	2020 Restricted funds £ - 169,806 - - 28,281 - 198,087	2020 Endowment funds £ 2,282,739 - - - - - 2,282,739	2020 Total funds £ 2,282,739 551,547 3,219,831 99,731 2,330,730 (2,539,790) 5,944,788

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

19. MOVEMENTS ON FUNDS (continued)

e) Allocations of net assets between funds (Charity):

	2021	2021	2021	2021
	Unrestricted	Restricted	Endowment	Total
	funds	funds	funds	funds
	£	£	£	£
Investments	1	-	3,020,608	3,020,609
Cash at Bank and in Hand	3,587,509	938,880	-	4,526,389
Debtors	1,850,882	-	-	1,850,882
Stocks	89,041	-	-	89,041
Fixed Assets	2,212,595	22,802	-	2,235,397
Creditors	(1,366,199)	(692,500)	-	(2,658,699)
	6,373,827	869,182	3,020,608	10,263,619
2020 Comparatives
	2020	2020	2020	2020
	Unrestricted	Restricted	Endowment	Total
	funds	funds	funds	funds
	£	£	£	£
Investments	1	-	2,282,739	2,282,740
Cash at Bank and in Hand	381,741	169,806	-	551,547
Debtors	2,526,341	-	-	2,526,341
Stocks	99,731	-	-	99,731
Fixed Assets	2,302,449	28,281	-	2,330,730
Creditors	(1,846,300)	-	-	(1,846,300)
	3,463,963	198,087	2,282,739	5,944,789

2020 Comparatives

20. EMPLOYEE RETIREMENT BENEFITS

The company contributes to two group personal pension schemes. The cost to the company for the period ended 31 March 2021 is equal to the amount of employer contributions paid in the period to each scheme, and is detailed below:

Birmingham Royal Ballet Pension Scheme Musicians’ Union Pension Scheme	2021 £ 312,656 12,036 324,692	2020 £ 323,312 20,911
		344,223

The company also contributes a fixed percentage of dancers’ basic salaries to the Dancers’ Career Development Fund. In 2020-21 the company contributed a total of £44,737 (2019-20: £47,365).

As of 31 March 2021 there were £62,127 outstanding contributions due in respect of the current reporting period (2020: £61,651).

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BIRMINGHAM ROYAL BALLET

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021

21. FINANCIAL COMMITMENTS – GROUP AND CHARITY

Operating lease commitments

The total future minimum lease payments under non-cancellable operating leases:

Charity - expiring within one year - expiring between one and five years	2021 Land and buildings £ Other £ 81,750 7,087 - 14,092 81,700 21,179	2020 Land and buildings £ Other £ 133,750 7,087 75,000 21,180 208,750 28,267	2020 Land and buildings £ Other £ 133,750 7,087 75,000 21,180 208,750 28,267
			28,267

22. RELATED PARTY TRANSACTIONS

No Director received payment for professional or other services supplied to the charity during the year (2020: £nil).

Total donations received from the directors during the year was £5,398 (2020: £34,075).

All transactions between charity and the subsidiary, BRB Production Services Limited, are eliminated on consolidation.

23. CASHFLOW STATEMENT

Reconciliation of net income / (expenditure) to net cash flow from operating activities:

Net income / (expenditure) for the year (before investment gains and losses) Adjustments for: Dividends and interest receivable Depreciation charges Profit on the disposal of tangible fixed asset Operating cash flow before movement in working capital Decrease / (Increase) in stocks Decrease / (Increase) in debtors (Decrease) in creditors Net cash provided by / (used in) operating activities	2021 £ 3,622,231 (61,521) 198,558 19,280 3,778,548 10,690 1,368,951 (1,081,092) 4,077,096	2020 £ (71,887) (70,568) 203,944 (5,039) 56,450 (17,238) (168,074) (216,844) (345,706)

Birmingham Royal Ballet

BIRMINGHAM ROYAL BALLET

CONTENTS

BIRMINGHAM ROYAL BALLET

OFFICERS AND PROFESSIONAL ADVISERS

DIRECTORS

SECRETARY

REGISTERED IN ENGLAND & WALES

REGISTERED OFFICE

BANKERS

SOLICITORS

BIRMINGHAM ROYAL BALLET

OFFICERS AND PROFESSIONAL ADVISERS

INVESTMENT MANAGERS

AUDITOR

BIRMINGHAM ROYAL BALLET

Foreword by Sir David Normington GCB, Chair of Birmingham Royal Ballet

BIRMINGHAM ROYAL BALLET

Foreword by Sir David Normington GCB, Chair of Birmingham Royal Ballet

BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

STATUS, OBJECTS AND POLICIES

DIRECTORS, OFFICERS AND PROFESSIONAL ADVISERS

Organisation

Directors' Interests in Related Bodies

Body

Director

BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

GOVERNANCE STRUCTURE

BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

PUBLIC BENEFIT

STRATEGIC REVIEW

CHARITABLE ACTIVITIES

Performance and Production

BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

Audience Reach and Growth

BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

Engagement and Participation

BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

FINANCIAL REVIEW

BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

Raising Funds

BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

Charitable Activities

BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

GOING CONCERN

RISK MANAGEMENT

BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

PLANS FOR FUTURE PERIODS

RAISING FUNDS

CHARITABLE ACTIVITIES:

Performance and Production

BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

GOVERNANCE AND ORGANISATIONAL DEVELOPMENT

FINANCIAL STABILITY

BIRMINGHAM ROYAL BALLET

DIRECTORS’ REPORT (INCLUDING THE STRATEGIC REPORT) (continued)

KEY POLICIES

Financial Management:

Management remuneration

BIRMINGHAM ROYAL BALLET