Company Registration No. 02060996 (England and Wales) Registered Charity No. 1062085 Hackney Empire Limited Trustees. report and financial statements for the year ended 31 March 2021 1,11 ¢AAHIKOHN* 1811112021 COMPANIES HOUSE
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Hackney Empire Llmited Contents Page Legal and administrative information Irision. Mission & Values Tru51ee5' report 4-12 Independent auditors, report 13-16 Ststemeni of financial actmties 17 Balan¢e sheet 18 Cash flow statement 19 Noies ta the finamal staternents 20-36
Hackney Empire Limited Legal and administrative inftsmiation 'Constitutlon Hackney Empire Limited is a company limited by guarantee, not having a share capital. The company is a re8lStered Charity governed by its Memorandurn and Articles of Association. Objects The companV5 main objects. as set out in the Artides, are to advance public education and appreciation of the arts and to provide the theat facility for recreation and leisu time occupation in the interests of social welfare wrÉh the objert of improving the conditions of lrfe, particulèrly of the inhabitants of the London Borough of Hackney. Organisation The board ofd1rect0 ofthecompany andthe sub-committees have overall responsibilty for the running of the company. Through regular board meetings and sulFcommittee meetings the direttors, who are the Trustees for the Charity, advise the management of the company. in particular on strategy. The Board appoints a Chief Executive who is responsible for policy and day to day management of the Charity. Hackney Empire Limited has a wholly own subsidiary company. Hackney Ernpire Trading Limited. This company was formed to generate commercial income at Hackney Empire for the benefit of the parent company to which rt grft aids any proffts made. Board of dirertors Delphine Brand Roger Wooffe Karin Gartzke Sean Gascoine -Jay Sheth Mark Hèrwood Matthew Roeser David Adams Richard Etienne Ichairl (appointed 23 March 20211 lappointed 23 March 20211 lappointed 23 March 20211 lappointed 23 Mafch 20211 All directors are appointed in accordance wtth the Articles of A5SOCiation. Except where indicated. the direLtors Ited served throughout the year and up to the date of this report. d8el
Hackney Empire rnited Legal and administrdlive inforrnatlon (continued) Finance Committee Delphine Brand Roger Wooffe Mark Harwood Matthew Roeser David Adams Executive Oirector I Company Secretary Artistic Director Jo Hemmant Yamhn Choudury Other principal tsffi¢ers Technical Manager Head of Programme Head of Development Othman Reid Jane Walsh Elly Rothnie Company number 02060996 Charity number 1062085 Registered office Hackney Empire 291 Mère Street London E8 IEJ Auditors Saffery Charnpness LLP 71 Queen Vittoria Street London EC4V 4BE Bankers Barclays Bank PLC 27 Soho Square London WID 3QR A¢countants EPIC Investment Partners Audrey House 16-20 E Place London ECIN 6SN Connerted tharitie5 Hackney Empire Limited is connected with the Hackney Empire Preservation Trust, which owns the theatre building. Hackney Empire Limrted benefits from the continued occupation of this property at a peppercorn rental Page 2
Hackney Empire Limited Vision, Mission & Values Transform tive-Re esentative-Access(ble- Radital- In5 inn Vision We believe that everybody should have the opportunity to experience the Singular transformative power of great Arts & Culture, and we will do everything we can to create vital access for all. Mission Hackney Empire will present a programme that is extraordinary, challenging and profound, celebrating the richnes5 of local. national and international Arts & Cutture. We will nurture and platform the unheard and the unknown. to encourage and share excellence in all its forms. Values Extraordinary Arts & Culture can be created by all people. anywhere. The translomiative impart of Arts & Culture, in all ts forms. should be accessible by all. We have the opportunity to affert how we view others. our environment. our society and ourselvès. We want ignored and overlooked voices to be heard. bolated communities to be engaged and ideas to be recognlsed and responded to. Young people from all backgrounds will alvmys have a-home at Hackney Empire and our community will always be at the heart of how we think and how we work. We want to entertain and provoke. We want to fa difficult truth5. confront prejudice, embra new ideas, and share stories. We want to work with others to create high*ualtty, innovatNe and powerful programme. Pa8e 3
Hacknèy Empire Limited Trustees. Report For the year ended 31 Marth 2021 The Trustees present their report and financial statements for the year ended 31 March 2021. The finantial statements comply with the Charities Act 2011, the Compan5 Art 2006, the Memorandum and Articles of Association, and the Statement of Recommended Practice incorporating the Financial Reporting Standard 102- SORP IFRS 1021. Objectives and Activities Hackney Empire Limited, Ihenceforth Hackney Empire or HELI seek5 to develop and maintain Hacknev Empire Theatre as a leading arts and performance centre irt London serving the widest possible range of audiences. Embracing b()th local and global communities of artists and audiences, it is determined to nurture and present work that is at once extraordinary, inclusive. inspirational and transfomative. Hackney Empire has a legacy a5 a cultural beacon and safespace, which annually, in normaltimes, welcomes over 2CK),000 audience mernbers 3n audience that fully refletts the incredible diversity and vibr3ncy of LonL4on's communitie5. For decade5 Hackney Empire has been regarded as a vttal and exceptional platform for Black creatwes, artists and audiences, and has a proud legacy of supporting marginalised and isolated volces. This legary continues to thi5 day as a ntral elernent of the organisation's manifesto. As well as entertaining, educating and inspiring hundreds of thousands of peop each year through its artistic programme, Hackney Empire is a dedicated developmental space forthousands of young people everyyear, safe and welcoming nexus for a modern Society, which b5 drÉven by our CreatNe Futures programme. Driven by core values of quality, access. representation. participation and engagement. Hackney Empire will once again. following ihe Coronavirus pandernic, become a creatNe hub and a principal national and international cultural destiiation for the widest range of audiences. Key to this aspiration is the exceptional work presented on our main stage or in ourworkshop spaces, togetherwith the sector leading development and participation work carTied out at Hackney Empire and throughout East London. The safe space we provide to communicate. share. learn. confront and challenge now more important then perhap5 ever before. Achievements This has been an extraordinary year for Hackney Empire as we have navigated our path through the Coronavirus global pandemic. Through the support of our existing partnerships and loyal supporter5 and the development of new relationships, we have been able to continue and extend our artivtty, where P055ible within the pararneters of Coronavirus re5trKtions. This is particularly so for our work with young people, where our inf(ial response was to move to an online programme. We continue to be leading the arts anil cutture sector in terms of our diverse team and our commitment to representatton and inclusion. Page 4
Hackney Emplre Limited Trustee5' Report Icontinuedl For the year ended 31 March 2021 We are proud to be a leading example of thi5 level of engagement and inclusivty and to reflectthe borough in which we sit both on our stages and within our team. Our catiVe Futures team worked with hundreds of young people. not onty delivering a fijll development and participation programme. but also becoming a frontlTrne service to assist young people from across East and North London, their carers 3nd their families to asS much needed aid and resourte5 in the uncertainty that prevailed. During the early stages of lockdown, the InCdIble success of the Crowdfunder and of the Mayor of London's Pay it Forward scheme saw supporters raise over £130,tWJO. underlinin8 the significance of the organisation to its community. Perhap5. even more 5ignrficant, werethe messages of support ceiVed from the individuals that contributed and the generosity of Esmeé Faimbairn Foundation, Garfield Weston Foundation. the London Communtty Response Fund and Backstage Tnjst. J. ARTS & CULTURE .. lyjijk . P•8e 5
Hacknèy Empire Limited Trustees. Report Icontinuedl For the year ended 31 MaTch 2021 Hackney Empire enters 2021 with a renewed energy and sense of urgency. As cystodians to one of the countrfs most beautrfuS, diverse and important stages. we remain tommitted to excellence, ac55 and representation. wrih development of artists, audiences and young people at the very centre of everything we do. We will lead crucial ehan8e WheVer possÉble and will seek to collaborate with others to ensure that the transforn)ative effects of Arts and CUUre can be experienced by all. Community. Creative Learning & Participation Hackney Empire CreatNe Futures programme is the leading provider of arts and culture engagement for young people in Hackney, working wrth over 4,000 young people annually from some of East and North London's most rnarginalised communrf(ies. In 2019. 48% of young people in Hackney were living below the poverty line. up frorn 41.3% in the previous year. Each year we provbde over 800 hour5 of engagement across more than 50 projerts. The programme 15 designed to remove barriers to access. build confidence, raise aspirations and tacklesocial exclusion. 9YA of participants are from Black, Asian and Ethnicalty Diverse backgrounds and 15% identify as havin8 a dbilIty or special need. In 2020, CreatNe Futures wa5 swift to adapt to lockdown. delNering an online programme of workshops, panel discussions and masterclasses in everything from script writing to social media management. Resource5 were also dNerted WheVer possible to support young people, their carers and families who may have become more vulnerable. Many were experiencing increased deprivation or could not access vitsl SeiCe5 due to lockdown and the overcapacity of social and youth serwTrces. For overten years we have been workingwlth the vulnerable and at-ri5k, Hackney Empire and the Creative Futures programme continue to play a vrtal role in rebuilding the confidence and well-being of the young communities and audiences we serve. Post-pandemic we have reintroduced the idea of collective social wellbeing and safe spaces using arts and culture as a tool to unlock young people's imaginations and to create vttal inteNentions wherever p¢)ssible. Pantomime The groundwork for our acclaimed pantomime 2020 was in place by March 2020. However, it quickly became clear that it would not be possible to proceed within the CDnstraints of govemment restrictions and potential social distancing. Therefore, in line with many other theatres, we took the sa(1 decision to postpone the production of Jack aftd the Beanstalk to 2021. We were heartened by our audience loyalty. and are now looking forward to weltoming audiences through our doors to See lack and the Beanstalk from November 2021. Fundraisin The Board gratefully acknowledge5 the valuable continuing support from all tts major stskeholders (Arts Council England, London Borough of Hackney, the Esmée Fairbairn Foundation. Garfield Weston. Backstage Trust and Children in Need) as well as an increasing number of individual donors and friends. Page 6
Hackney Empire Limited Tru5tees' Rem (continued) For the yearended 31 March 2021 HEL is a National Portfolio Organisation of the Arts Council and benefits from an annual grant of £375.295. The current four-year National Portfolio grnnt period has been extended by one year due to the Coronavirus restrictions and is now running until 2021122. The capttal pro8ramme of work of over £400,c0, fLrnded by Arts Council England, has been completed. supported also by Backstage Trust, Theatre Trust and individual patrons. This work completes the first phase of our plan to, amongst other things, improve our carbon footprint In total, £1,828,509 wa5 rai5ed from donations. tnjsts and foundations. gifts and legacles in 2020121 [£966,225 in 20191201. HEL operates within the code of fundraising practice set out by the independent regulator of charitable fundraising in England and no complaints We receNed in relatiorb to fundraising activities to date. We are commrtted to being fully compliant with the laws and guidance underpinning charitable fvndraising. We will not accept gifts or spon50r5hip from organisations or individuals whose 5UPPOrt of our activities we deem to be incon5iStent with our mission, vision and values. Our Vulnerable AdUS and Safeguarding policies outline our code of practice by which we operate in relation to donations from people who could be deemed as vulnerable. The policie5 provide a frameworkfor protertion to ensure that donations are voluntary and that best prartice is adhered to. Financial Review 2019120 was the first year that started to realise the promise of the vISed Business Plan. Artistically the programme reflected a broader and ever rn0 accessible line-up of incredTrble shows and events that presented the best of contemporary and cla55ical culture: operationally the organisation grew, a General Manager and Head of Development We appointed- both significant roles for resilience and development,. national partnerships gW au(liences and fvrthered the artistic offerfor our own communities. At the same time, careful financial management resufted in a £150.895 surplus, setting firm foundations to allow us to look to the future wfch confidence and aMbItn. It is this stable plaffom), coupled with continued strict fjnancial discipline, and support from our stakeholders. that has allowed us to survive the impact of the Coronavirus pandemic since March 2020. The group financial statements to March 2021 show an operating surplus on unrestricted funds of £519,6911£525,602 5urplu$ 20191201. takin8the accumulated surplus on unrestricted funds to £1,268,389. This healthy starting balance was essential as we faced a period of closure due to restrtctions imposed in response to the Coronavirus pandemic starting in March. We benefrtted from support from our funders, securing additional c0vid-1ated funding from the Mayorfs London Communtty Response Fund and further support from Arts Council England. from the DCMS Culture Recovery Funds (administered by Arts Council England). In addition, we have benefrtted frorn generous additional support from trusts and foundations, providing incremental fijnding as well as relaxing conditions for existing grants in thi5 time of turmoil. We also made full use of the governmenys Job Retention Scheme and continue to explore all avenues of financial support. From March 2020. we focussed our efforts on diversifying income streams, programming non-audience based actNity in line wrch government restrictions. Leading into 2021 we invested in artists and the PaEe 8
Hackney Empire Limited Trustees. Report Itontinuedl For the year ended 31 Marrh 2021 development of their pr3ttice and will be launching the Emerging CreatNe and Project Support Scheme, designed to support and enable sector-wide access points for diverse and under-represented art15ts, creative5 and their narratNes. Hackney Empl Trading Limited A wholty-owned tradirE subsidiary, Hackney Empire Trading Limited IHETLI is in operation to generate commercial income for the benefrt of the parent Charity (HELI. The company has three distinct areas of activity '. Firstly, it deals with commercial opportunities such as photo shoots and film work. Secondly. it manages service contrnctswith third partysuppliersto run thetheatre cafe and catering operation, Finally, it atts as a produttK)n company producing commssioned pieces of theatre. Whilst we have maxirnised this area of actNity. where possible, it has been hampered by the pandemic in terms of film shoots and coThmercial bookin8s and our café and bars activity ceased throughout the enti period. We tookthe opportunity to run the lheat bars in-house on reopening and are currently recruiting for a suitable suppliers forthe cafe. In 2020121 HETLwa5 comrnissioned to producethe pantomimejgck andtheBegnstGlk. and will be claiming Theatre Tax Relief of £5,5 in respect of this production. All of HL'S profits are gift-aided back to the parent Charity under a deed of covenant. There is no contribution from HETLto HEL in 2020121 due to HETL incurring aloss of £2,56712019120- contribution of £208,447). Reserves Poli The reserves accumulated afterthe success of 2019120 put us in a posrf(K)n to absorb losses of income which occurred as a result of Coronaviru5. related restrictions and ultimately temporary closure. Having decided to repurpose the designated building and arth5tic reserves during the pandemic, Trustees have decided to reinstate the original designations in 2021. As at 31 March 2021. the group has free resetves of £1,193,389. Given the exceptional year that we have beert operating in. and the fact that three months operatitsn costs of the groizp are circa £380.LK)O. the Trustees believe this represents a prndent level of reserve5 to hold at this point. The Trustees will continue to review the reserves policy going fOard. Goin concern The preparation and completion of the Trustees, Report and Financial Statements has, inevitably, been impacted by the Coronavirus pandemic. Since the ck)sure of theatres in March 2020. the Board of Trustees and senior team have been working on flexible plans, both operational and financial, for the continued viability of the organisètion. We have been grateful for the support of Culture Recovery Funding and we Currently remain confident aE(Jut our future. Our business plan and our model of operation allow for flexibility and for us to take advantage of responsive programming. Our cash flows are produted regular and are algned to the flexTble model. These plan5 are clearty dependent uport a variety and number of key assumptsons. Page 8
Hackney Empire Limited Trustees, Report (continued} For the year ended 31 March 2021 Plans for Future Perlods We are in discussion with a series of new partners as well as maintaining exisiing ones, intluding a co- production of Unexperted Twist with Royal & Derngate and the Children'5 Touring Partnership,. Michael Rosen's much loved modern adaptation of OINer Twist as a musical farn1 drama- written by Roy Williams with music by Conrad Murray of BAC Beatbox Academy. Vanara, premiered as a new musical in Ortober: A revolutKJnary show set in a futuristic prehistory. cornbining an original score wf¢h ftuid, cinematic storytellin& weaving together musical theatre. contemporary dance, circus and muftimedia innovation. The Autumn season also brought the repertoire of the English Touring Opera. who have built their tOLtring schedule around their partnership with Hackney Ernre. this season performing Handel's opera Amadigi, of his finest, though rarely perfomied. Page 9
Hackney Empire Limited Trustees. Report Icontinued) For the year ended 31 March 2021 Governance Ststement ol Trustee< responsibilltles The Trustees (who are also directors of Hackney Empire Limited for the purposes of company lawl are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepa financial statements for each financial year. which give a tnje and fair view of the rtate of affaÉrs of the Char[tab company and of the incoming $Our and application of resources. IludIng the income and expenditure. of the charitable company for that period. In preparing Ihese financi81 statements. the Trustees are required to: Selert suitable accounting policie5 and then apply them cOnstentIV.' observe the methods and principles in the Charities SORP: make judgements and estimates that are reasonable and prudent- state whether applicable UK accounting standards have been followed. subject to any material departures disclosed and explasned in the financial statements- prepare the financial siatements on the going concern basis unless it 15 inappropriate to presume that the Chartty wll continue in business. The Trustees are reswJnsIe for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with Companies Act 2fK16. They are abo responsible for safeguarding the assets of the charitable company and hente for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as each Trustee is aware.. there is no relevant audit information of which the charitable rompanvs auditor is unaware- and the Trustee5 have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the charitable company'5 auditors are aware of that information. The Trustees confirm that in planning the activities of the Charity they have had due regard to the Charitv Commission's guidance on public benefit, health and safety, due rjiligence sn relation to holding, receivin8 and moving funds safely, and in particular the guidance forfee charging charities. Pa¢e 10
Hackney Empire Llmlted Trustees. Report {continued) Fortheyear ended 31 March 2021 Trustee induction The Board Development Sub£ommittee meets through the year as required. Board member5 and senior managers are able to make suggestions for new members when vacancies arise. These are considered. against criteria which relate to areas of expertise and experience reqLli. The nominator provides the sub-committee with a biography or CV of the nominee and the reason for the nomination. The sub- committee contacts the nominee to inform them of the procedure. Where the sub-committee decides to proceed the sub-committee meets the nominee with the Executive Director and Artistic Director. If the response to this meeting is positive the sutrTrcommittee makes a proposal to the Board and further circulate the approprlète Cvlsl. If the main Board agrees, the nominee 15 infomied and is sent an introductory pack of recent Board papers. current strategic planning documents and a htstory of the theat. The nominee is then invtted to the next Board meeting to observe f0 formal appointment is made. There is a further meeting with the nominee. the Chaim)an and the Executwe team which forni a part of the induction process. Remuneration of key management personnel The pay of all staff is reviewed annually by the ExecutNe team with reference to UK industry norm5. The remuneration of key management personnel is then revièwed by the Finante Committee. Risk management The Directors have examined the major strategic, business and operational risks that the company faces ahd confirm that 5y5terns have been established so that the necessary steps can be taken to mitigate these risks. The Board conduct5 an annual review of the risk re8ister which details the risks the Charlty may face. The 8oard reviews the systems and procedures in place to mitigate those risks, advtses on improvements and provides monitoring on a regular basis. The Board then ensures there is proper implementation of the procedures with the objective of minimising any potential impact on the Charity should those risks materialise. The emergence of the Coronavirus pandemic and the measures implemented in response have exacerbated the previously identthed risk of loss of key staff. which moved up to second highest of the identified risks. Page 11
Hackney Empire Limited Trustees, Report Icontinuedl For the year ended 31 March 2021 The key risks as identified, and their mitigating factors were- Risk Mitigation Forward planning to ensure best P055ible pro8ramme. Plan marketing tycle to optimise income. Ensure secondary spend offer competitNe. Monitor cash flow. External forces IrecessiDnlpublic Spending etcl impact on business plan Loss of key staff Succession plannin& Documentation of systems plan5 and projects. Training programrnes. Notice periods and handovers. Recruitment process. Inadequate reserves Reserves policy to be linked to Business Plan, activities and identified financial and operating risk. Regular review of polic¥. Building related difliculties Ensure maintenance and operations manuals a sufficient and up to date. Implement appropriate maintenance strategy. Make suitable financial provisions where possible to ensure effertive rna1ntenan. Auditors A resolution proposing the re-appointment of Saffery Champness LLP as audrtors will be put to the Annual General Meeting. The Trustees, Report, whith includes the strategrc in accordance with the Companies Act 2CK)6. was approveil by the boar(l of director5 on and signed on its behalf by: Delphine Brand Chair 09 November2021 Pa8e 12
Hackney Empire Limlted Independent Auditoes Report to the Members for the year ended 31 March 2021 Opinion We have audited the financial statements of Hackney Ernpire Limited Ithe'parent charitable companfl and its subsldiaries Ithe'group'l for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activitves, the Group and Charity Balance Sheets. the Consolidated Cash flow statement and the notes to the financial statements. including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and Unrted Kingdom Accounting Standards. including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland Iunited Kingdom Generally Accepted Accountin8 Practice). In our opinion the financial statements.. gNe a true and fair view of the slate of the affairs of the group and the parent charitable company as at 31 March 2021 and of the group's incoming resources and application of resources, including its income and expenditure, forthe year then ended: have been properly prepared in accordance with United Kingdom Generalty Accepted Accounting Practice- and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance wfth InterThatnaI Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial 5taternent5 section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, includ4ng the FRC5 Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We bel*ve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. C'onclusions relating to going ¢oncem In auditing the financial statements, we have concluded that the Trustees. use of the goin8 concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perforrned. we have not identified any material uncertainties relating to events or conditions Ihat, indNidualty or collectively, may cast significant doubt on the grDUP or the parent charitable company'5 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 responsibilrties and the responsibilitÈs of the Trustees with respect to going concern are described in the relevant section5 of this report. Other information The Trustees are responsible for the other information. The other information comprises the inforniation included in the annual report, other than the financial statements and our auditorfs report thereon. Our opinion on the financial statements does not cover the other inforn)ation and. eXpt to the extent otherwise explicitly stated in our report, we do not express any fom of assurance coftclusion thereon. Pa8e 13
Hackney Empire Limited Independent Audhtorfs Report to the Members for the year ended 31 March 1021 (continued) Our responsibility to read the other informalion 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 materialw misstated. If we identify such material inconslstencies or apparent material mi5Statement5. we are required to determine whether this gives rise to a rnaterial misstatement in the financial statements theMsees. If. based on the work we have performed, we contlude that there is a rnaterial mi5Stètement of this other information- we a required to report that fact. We have nothing to report in this regard. Other matters prescribed by the Companies Act 2(# In our opinion, based on ihe work undertaken in the course of the audiE- the information gNen in theTrustee5' Reportwhich includes the D1ctors. Report and the Strategic Report forthe financial year for which the financial statements are prepared is ton51Stent with the financial 5tatements- and the Trustees, Report which includes the Director5. Report, and the Strategic Report has been prepare¢J in accordance with applicable legal requirements. Matters on which we are required to repL>rt by exception In the light of the knowledge and understanding of the group and the parent Charrtab company and theSr environment obtained in the course of the audit. we have not identified material misstatements in the Trustees, Report and Strategic Report. We have nothing to report in respect of the following matters where the Companies Act 2006 require u5 to report to you 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 Trustee5' remuneration specified by law are not made,. or we have not recewed all the information and explanations we require for our audit. Re5pon5ibilitie5 of Tru5tee5 As explained more fully in the Statement of Trustee5' Responsibilities. the Trustees (who are also the directors of the parent charitable company for the purpose5 of company lawl are responsible for the preparation of the financial statements and for beirtg satlsfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of the finantial Statements that are free from material misst3Ment. whether due to fraud or error. In preparing the financial 5taiements, the Trustees are responsible for assessing the group and the parent charitable cornpany's ability to continue as a going concern, disclosin& as applicable, matters related to going concern and USIngt going concern basis of accounting unle5S theTrustees either intend to liquidate PKe 14
Hackney Empiie Limited Independent Auditorfs Report to the Members for the year ended 31 March 2021 Itontinued) the group or the pant charitable company or to cease operations or have no altIC alternative but to do so. Auditorfs re5pon5ibilities forthe audit of the financial statements We have been appointed as auditors under the Companies Act 2(K16 and report in accordance wrfih regulations made under that Act. Our objectives areto obtain reasonable assurance about whetherthe group and parent financial Statements as 3 whole are free from material misstatement, whether due to fraud or error. 3nd to issue an auditorfs 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 IUKI will always detect a material misstatement when ri exists. Misstatements can arise from fraud or error and are considered material rf, individua15y or in the aggregate. they could reasonably be expected to influence the econom•c decisions of users taken on the basi5 of these financial statements. Irregularities, including fraud, are instance5 of non-compliance with laws and gUlatiOns. We design procedures in line with our responsibilities. outlined above, to detect material mstatementS in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, induding fraud are detailed below. Identifying and assessing risks related to irregularttie5: We assessed the Susceptibility of the group and parent charitable compan$ financial statements to materlal misstatement and how fraud might occur. including through di5CUS5ions with the Trustees, discussion5 Wlthin our audit team planning meeting, updating our record of intemal controls and ensuring these controls operated as intended. We evaluated possible intentTves and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent ch3rstable company by discussions with Trustees and updating our understanding of the sectors in which the group and parent Charitab cornpany operate. Laws and gUlationS of direct significance in the context of the group and parent charltable company include The Companies Act 2OJ6 and guidance issued by the Chartty Commission for England and Wales. Audit response to risks identified= We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement ttems including a review of financial statement disclosures. We reviewed the parent charrtable company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identfy potential material mis5tatement5 arising. We discussed the parent charitable CoMpanS policies and procedures for compliance with laws and regulations with member5 of management responsible for compliance. During the planning meeting with the audit team. the engagement partner drew attention to the key areas which might invOe non-compliance with laws and regulation5 or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and gUlationS or knowledge of any actual, suspected or alleged fraud. We addressed the risk of frèud through management override of controls by testing the appropriateness of journal entries and identtfying any signrficant transactions that were unusual or outside the normal course of bu5ine55. We assessed whether judgements rnade in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partnerfs review included ensuring that the team had approached their work with Page IS
Hackney Empire Limited Independent Auditorfs Report to the Mernrs for the year ended 31 Marth 2021 Icontinuedl appropriate professional xepticism and thus the capacty to identify non-compliance with laws and regulations and fraud. There are inherent limitations in the audit procedure5 described above and the further removed non- compliance with laws and regulations Es from the events and transactions reflected in the financial statement5. the less likely we would become aware Of it. Also, the risk of not detecting a material niisstatement due to fraud is higher than the risk of not detecting one resulting from error. as fraud may involve deliberate concealment by. for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibiltties is available on the Financial Reporting Council's website at: www.frc.o auditorsrÈs nsibilities. This description fornis part of our auditorfs report. Use Df our report This report is made solely lo the parent charitable company's members, a5 a body, in accordance with Chapter 3 of Part 16 of the Companies Art 2006. Our audit work has been undertaken so that we might State to the parent charftable company'5 rnembers those matters we are required to State to them in an auditorf5 report and for no other purpose. To the fullest extent permitted by law, we do not atcept or assume resF)onsibility tL) anyone other than the parent charitable company and the parent charitable tompanrfs members as a bjdy, for our audit work, forthis report, or forthe opinions we have formed. Cara Turtington (Senior StAutory Auditorl for and on behalf of Saffery Champness LLP Chartered Accountants Statutory Auditors 71 Queen Victoria Street London EC4V48E Date.. Saffery Champne5s LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 Pate 16
Hackney Emplre Limited Consolidated ststement of financial activities Iln¢luding income and expenditure account) For the year ended 31 Marth 2021 Not Unrestricted Funds 2021 Total 2020 Totsl funds Income Irom: Donètions, gifts, and lewaoes Grants rÈtèivable 219.829 648.350 219,829 1.608.680 198,141 768,084 %0.330 Investment income 718 718 2,362 Intome from trading attivities Incomefrom choritoble octivifies Income Irorn runnin6 theatre 64,575 64,575 359,630 7.892 7,892 1.918,408 Total Income 941.364 960,330 1,901,694 3.246,625 Expendlture on.. CDSt of rtrisingfvnds Fundraising costs Choritable tsrtivity Cost of operation of the theatre 35.021 35,021 51.729 392.557 1.235.955 L628,512 3.129,338 Total expenditure 427.578 1.235.955 1,663,533 3.181.067 Net ineomellexpenditurel for the year 513.786 1275.6251 238.161 65.558 Corporation tax li 5,905 5,905 85,337 Net movemènt in funds 519.691 1275.6251 244.066 150.895 Opening fund balances 748.698 .143.153 8.891,851 8,740,956 C105inKlund balances 17.18 1.268.3B9 7,867.528 9.135,917 8,891,851 There were no recognised gains and10sses otherthan the movements in funds shown above. All operations are continuing. The note5 on pages 20 to 36 form part of the financial statements. P3Be 17
Haekney Empire Limited Balance sheeis As at 31 March 2021 Notes Group Charlty 2021 2020 2021 2020 Flxed assets Tangible assets Investrnents 7.8.397 8.279,183 7.800,397 8,279,183 7.800.397 8.279.183 7,800,398 8,279,184 Current assets Debtors Cash at bank and in hand 14 251.678 L513.815 373.874 890.106 288.391 1.499.727 378,424 832,454 1.765.493 L263.980 1.788.118 L210.878 Creditors.. Amounts falling due within one year 15 1429,9731 16513121 1392.4181 1598,2111 Nèt current assets 1,335.520 612,668 1.395,700 612.667 Total assets less current liabititles 9.135.917 8.89L851 9.196.098 8,891.851 Net assets 9.135.917 8,891.851 9.196.098 8.891.851 Represented by: RestriCEed funds 17 7%67.528 8.143.153 7.867.528 8.143.153 Unrestrirted funds.. General funds 1.268.389 748.698 1.328.570 748.698 Totsl 19 9.135.917 8,891,851 9,196,098 8,891,851 The total income of the CharTty as an individual entity for the year was £ 1,869,97412020- £3,307,455) and ils net income was £304,247 12020 - £150,897). A statement of financial artNlties for the Charity as an Individual entity is not indu(Jed using the exemption gwen in section 408 of the Companies Act 2CM)6. Approved by the Board of dirertors on 09 November 2021 and signed on its behalf. Delphine Brand Chair Company nurnber 021)60996 The notes on pages 20 to 36 form part of the financial statements. Page 18
Hackney Ernpire Limited Consolidated cash flow statement FOT the year ended 31 March 2021 2021 2020 Reconciliation of net ihcomellexpenditurel to cash inflow from operating artiwtie5 Net incomellexpenditurel Depreciation Interest received DecreaSe/lincaSej in debtors IDecreasel/increase in creditor5 (excluding loans and finance leases) 244.066 649,760 (7181 122,196 150,895 631,544 12.3621 66,386 1221.3391 1271,2291 Net cash Inflow from operating artivities 793.965 575,234 Cash flows from investing artivitie5 Interest received Payments to atquire tangible fixed assets 718 1170.9741 2,362 1217,8961 1170,2561 1215.5341 Change in cash and cash equivalents 623,709 359,700 Cash at l April 2020 8.106 530,406 Cash at 31 March 2021 1.513,815 890,106 Analysis of changes in net debt At start of year120201 Cash.Ilows At end of yeaT120211 Cash 8,106 623,709 1,513,815 Total 890,106 623.709 1,513.815 The notes on pages 20 to 36 form part of the financial statements. Pay 19
Ha¢kney Empire Limited Notes to the accounts For the year endÈd 31 March 2021 l Atcounting po5icie5 Accounting convention The finantial statements have been prepared under the historical cost convention. The accounts Ifinancial statements) have been prepared in accordance with the second edition of the Statement of Recommended Practice= Accounting and Reporting by Charities preparing their accounts in accordance wrth the Financial Reportingstandard applicable in the UK and Republic of Ireland IFRS 1021 issued in October 2019 the Financial Reporting Standard app5icable in the United Kingdom and Republic of Ireland IFRS 1021. the Companies Act 2CQ6 and UK Generally Accepted Prartice as it applies from l January 2015. The Charity constitutes a public benefit entity as defined by FRSIO2. The financial statements a prepared in sterlin& which 15 the funrtional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £. Going ¢on¢em In March 2020 the Wodd Health Organisation dedared Covid-19 a pandemic and the UK government put in place regulations to SeVe1V restrict the fe movement of individuals and to insist on the closure of all theatS and hosprf(ality venues. This has significantly impacted the operations of the the3trÈ and our income from the date of closure. However, the Ch3rity has benefitted from the Coronavirus Job Retention Scheme to mitigate ongoing staff costs, has put in place tost savings. and remains in reIpt of revenue grants and fundraising income. As of 31 March 2021 the Charty has net current assets of £1,395,701 and for the year ended 31 March 2021 a Surplus of £579.872 was made on unrestricted fund5 leaving a surplus on unfe51ricted funds of £1,328,570. Therefore, at the time of approving the financial statements. the Trustees have a reasonable expectation that the Charity has adeqijate resources to continue in operational existence for the foreseeable fvture. Thus. the Trustees continue to adopt the going concern basis of accounting in prerIng the financial statements. Income Income from donations and grants, including caprtal grants, is included in incorning resources when there 15 entitlement, probabilr(y of receipt and the amount can be measured with sufficient reliability, unles5 Ihe donor has specrfied that the donation or grant relates to a future period or that certain pre4onditK)ns must be fulfilled before use. In these cases. amounts retefved are recognised in the relevant period or when the pre-conditions have been met and until then treated as deferred income. Donations and grants for particular purposes are included in incoming resources as restricted funds. Production Intome is included in incoming resources in the period in which the relevant perforniance take5 place. Income related to productK)ns in a subsequent period is treated as deferred income.All other income is recognised on an accruals basis once the Charity is legally entitled to Teceipt. All incoming resources are recorded net of VAT. Poge 20
Hackney Empsre Limitsd Notes to the accounts Itontinued) For the yearended 31 March 2021 Expenditure Expenditure is included in the Statement of Financial ActTVrties on an accnjal basis, intlusive of any VAT which canTrot be recovered. Expenditure 15 recogni5ed when a liability is incurred. Costs of raising fund5 are those costs incurred in attracting Voluntary income and those incurred in the operation of trading attNities which raise funds. Charitable activities include expendtture associated WTth the operation of the theatre and such direct associated activities as educational programmes. Cost of charitable activities includes both the direct cost of activf(ies and related sUPPOrt costs. Support costs include central functions and have been allocated to activity costs on a basi5 con51Stent with the use of resources. This is frequently on the basis of staff time spent in each area trAJt other bases such as usage are also employed. Support costs abo include Governance costs. Governance costs include those incurred in the governance of the Charity and its assets and are primarlly èssociated wrth Constttutional and statutory qUIreMents. whe performances of a production straddle the balance sheet date, produrtion costs are apportioned in relation to the number of perfomiance5 falling within each period and the amount relating to performances after the balance sheet dète are treated as debtors. Tangible fixed assets and depreciation Tangible fsxed assets a stated at cost S depreciation. DepCiatIon is provided at rates calculated to write off the cost less estimated sIdUal value of each asset over its expecied usefu5 lrfe. once brought into use. as follows: Freehold land Frèèhold buildings Theatre improvements Fixtures, fittings and equipment 2% straight line over 30 to 10 years straight line From IO% to 33% straight line Individual fixed assets consisting more than £l.(KJO are capitalised at cost. Leased assets and obligations whe assets are financed by leasing agreements that give rights approximatlng to ownership (finance leases}. thè assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable during the least term. The corresponding leasing commitments are shown as ObligatnS to the lessor. Finance lease payments are treated as consisting of capttal and interest elements. and the interest is charged to the statement of finantial activities in proportion to the remaining balance outstanding. All other leases re operating leases and the annual rentals are charged to the statement of financial activities on a straight line basis ovÈrthe lease term. Pa4e 21
Hackney Empire Limited Notes to the accounts Icontinuedl For the year ended 31 March 2021 Investments The Statement of Recommended Practice requi investments to be stated at market value. The investment5 of Hackney Empire Limited consist of one wholly owned subsidiary. Hackney Empire Trading Limited. The company is not quoted and the directors consider it appropriate to include the investment at cost. Pensrons The Charity operates a defined contribution scheme forthe benefit of its employees. Contributions payable are charged to the Statement of Financial Activities in the year they are payable. Foreign currencytrnnslation Monetary assets and liabilities denominated in foreign cUrnCIeS a translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in fOIgn currencies are recorded at the rate ruling at the date of the transaction. All drfferences a taken to the Statement of Financial Artivities. i.io Consolidation The consolidated financial statements present information about the company and its wholly owned subsidiary Hackney Empire Trading Limited. The consolidation has been performed on line by line basis. i.ii Fund accounting Funds received for a purpose specffied by the donor are credited to restricted funds. Expenditure incurred on these purposes is then charged to the funds as tt is incurred (see note 171. All other income is treated as unrestricted fvnds. The Trustees have chosen to designate certain funds for specific future expendrture as explained in the Trustees, Report. 1.12 Financial instruments The Charitsble only has financial assets and finaftcial liabilities of a kind that qualify as basK financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exceplion of bank loans which are subsequentty measured at amorti5ed cost using the effectwe interest method. The Charity has elected to appty the provisions of Section 11 'Basic Financial Instruments, and Sectton 12 '0ther Finantial Instruments Issues, of FRS 102 to all of its financial instruments. airment of financial assets Financial assets. other than those held at frdir value through the statement of financial activitie5, are assessed for indicators of impairment at each reporting end date. Page 22
Hackney Empire Ltmited Notes to the accounts (continued) For the year ended 31 March 2021 1.12 Financial instrnments Icontinuedl Financial assets are impaired where there is objectwe evidence that, as a result of one or more events that occurred after the initial cOgnItion of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised inthe statement of financial activities. Dereco nition of financial assets Financial assets are derecognised only when the contrartual rightsto the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entrty. Dereco nition of financial liabilities Financial liabilities are derecognised when. and only when, the Charity obligations are discharged. cancelled. or they expire. Critical accounting judgements and key sources of estimation uncertainty In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions a based on historical experience and other factors that are considered to be relevant. Actual resu$ may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing bas. Revisions to accounting e5timate5 are recognised in the period in which the estimate is ViSed where the revision affetts only that period. or in the period of the revision and future periods where the revision affects both curnt and fLrtLJre periods. Status of company The company is a registered Charty. limited by guarantee. s at 31 March 2021, the company has 9 members. who are abo directors. The liab51ity of each member on a winding up is limited to a maximum of £1. Pa4e 23
Hackney Empire Limited Notes to the accounts Icontinuedl For the year ended 31 March 2021 Grants receivable As at31 Marth 2021 Urtrestrittèd Funds Restrlcted Funds Total 2021 Core fundin Arts Council England Atts Council En8land- Culture Recovery Fund Arts Council England- Emergenty Funding Clarion Futures Esmée Fairbairn Foursdation- Untritted grants HMRC JRS Grant Jean HodgkiNson London Community Response Fund 375,295 375,295 534,226 244,555 s,000 23.500 166,732 5,300 22.237 534.226 244.555 23,500 166.732 5,300 22,237 Pro ect Fundi Arts Council England-capitsl Work5 Arts Council England- supplemÈntary grant Chsldren in Need Ernest Hecht Charity Esmée Fairbairn Foundation FTO Yamana Peabody Goldsmith5 Company Charity Greater London Athlty Hackney Counal London Borough of Hackney Youth Opportunity Fund 120.535 i.coo 4,(KlO 2,500 47.CQO 2,CilO 3.000 lo.0 300 40.000 1.500 120,535 1.000 4.000 2.500 47,000 2.000 3,000 10.000 300 40.000 1.500 648,350 960.330 1,608.680 A5 at 31 March 2020 Unrestri¢ted Funds Re5trittÈd Fund5 Total 2DZO Core f in Arts Council Englznd 368.514 368.514 ct Fundin Arts Counol En8land- Capital WoTks Backstage Trust Children in Need Esmée Fairbairn Foundation Hackney Council Nike London Borough of Haekftey NESTA Theatre Trust Young Leaders on trath festival Youth Opportunity Fund 213.570 40.0 io,(xx) 47,( 15.000 5,CM)O 40.(0 13,C¥)O 213.570 40,000 10,000 47.000 Is,0 s.000 40.ow 13.0(YJ 5.0(KJ 1.000 10.000 io,(Kx) 368,514 399.570 768.084 PaEe 24
Hackney Empire Limited Notes to the accounts (continued) For the year ended 31 March 2021 Grants receivable (continued) Included in Note4 above are government grant5 of £40.[l2020- £40,LKIDI from London Borough of Hèckney, £30012020 - £n411 also from London Borough of Hackney and £166,73212020 - £fiill from the Coronavirus Job Retention Scheme. In addition. this year the charriable company received a donation of £5.OD) from the Mayor of London's Backto Business Fund. which has been included in donation on the Statement of Financial Attivities. Income from trading arttvities 2021 2020 Bar5 and catering income Location and filming income Other income 96,566 259,079 3,985 64.075 SW 64,575 359,630 Income from theatre operation 2021 2020 Box offi Theatre hlre Merchandise Booking fees Theatre recharges Other income 1,112,318 465,269 36,313 67.674 234,546 2,288 1,217 346 1.961 1.668 2.7fKJ 7.892 1.918,È108 Fundraising costs 2021 2020 Staff costs Fundraising expenses 34,713 308 43,294 8.465 35,021 51,759 Page 2S
Hackney Empire Limited Notes to the accounts Icontinuedl For the year ended 31 Mèr¢h 2021 Costs of operation of the theatre Unrestrirted Funds Restricted Funds Total Funds 2021 Staff and 5taff-related costs Depreciation Promoter5/production costs Education Publicity Premises and 8eneral running costs Overheadladministratbve Costs Governance costs 145.186 8,682 445.579 641.077 590,765 649,759 24.265 127 22.750 25.072 173 9,470 49,337 300 32,220 IfA).145 81,857 242,002 25,534 5.868 29,489 3,238 55.023 9,106 392.557 1.235.955 1.628,512 Unrestricted Funds Restricted Funds Total Funds 2020 Staff and $taff-10ted c05ts Depreciation Promoterslproduttion costs Education Publicity Premi4e5 and general running costs OverheadladministratNe costs Governance costs 1.030.998 16.281 73,500 615,263 1,104,498 631,544 643,658 2.156 226,282 18,750 44.036 662,408 46,192 226,282 383,847 383,847 38.628 19.739 16.2 54,828 19.739 2,361,589 767,749 3,129,338 Net incomellexpenditure) Net incomellexpenditure) is stated after charging- 2021 2020 Amounts payable to auditors for audit services- current year Amounts payable to auditors for audit services- prior year Amounts payable to auditors- other seNice Depreciation Operatin8 lease payments 11,025 11,225 4,C()O 1.300 649,760 36,936 631.544 70,848 Page 26
Hackney Empire Limlted Notes to the accounts (continued) For the year ended 31 March 2021 io People cost 2021 2020 Aggregate staff costs are made up as follows: Salaries and wages Social security costs Pension costs Other staff costs 483,385 39,634 8,963 2,266 963.244 74.220 17,625 3.219 Subtotsl Professional Fees" Totsl 534.248 91,230 625,478 1.058,308 89,484 1,147.792 Fundraising staff costs (note 7} Staff and staff-related costs of operation of the theatre Inote 81 34,713 s,765 43,294 1,104,498 625,478 1,147,792 The number ofstaff recewing a salary over £60.(XJO was: 2021 No. 2020 No. £60,0- £69,999 The total number of employees during the yearwas 3812020-. 9)) of which 17 were permanent staff and 21 were inVoed in performances. Included within staff costs above are redundancy payments made during the year totalling £16,237 in respect of 6 staff members. Key management personnel are conSided to be the Executive Director ènd the Artistic Director. The total amount paid to key management personnel in the year was £106.91812020: £108.9241. 'Professional Fees includes the freelancer and tontrartor cost for the outSOLtrcing of the finance. marketing and development function. which substrtutes the staff t05ts in these aa$ for the Charity. 10.1 Trènsactlons with Trustees No payments are made to Trustees fortheirserwices as fTustees, norwere any expenses reimbursed to them during the current or pCeding riod. Donations totalling £5,510 were recetv@d from the Trustees during the period12020: £1,598). li Taxati< No charge to corporation tam is expected to arise due to the companvs charttable status. The trading Subsidiary benefits from a theatrical tax credit received on its production actlvities P4e 27
Hackney Empire Limited Notes to thè a¢tounts Icontinuedl For the year ended 31 March 2021 12 Tangible fixed assets Freehold land and building5 Theatre improve- mènts rsxtures fittings and equipment Total Group and Charity Cost At l April 2020 Additions 222,758 18,438,480 142,642 581,414 28.332 19.242.652 170,974 At31 March 2021 222,758 18,581,122 609,746 19,413.626 Depreciation At l April 2020 Charge for the year 103,606 4,455 10.301.013 633,800 558,850 11,505 10.963,469 649,760 At 31 March 2021 108,061 10.934,813 570,355 11.613,229 Net book value At 31 March 2021 114,697 7.646.309 39,391 7.8CQ,397 At 31 March 2020 119,152 8,137.467 22.564 8,279,183 All assets are in use for charttable purposes. Legal charges exist over the freehold propertie5 to secure the interests of the public bodies. bankers and other lenders funding their purchase and the cost of theatre improvements. 13 Investment in subsidiary 2021 2020 Investment in subsidiary LEndertaking The Charrf(y hold5 of the issued ordinary share capital of the following company.. Subsidiary Country of reglstration Hackney Empire Trading Limtted England Cla55 Ordinary Shares held loo% Page 28
Hackney Empire Limited Notes to the accounts (continued) For the yearended 31 March 2021 13 Investment in subsldiary (continued) The principal activities of the subsidiary a to generate commercial income for Hackney Empi Limited and to produce theatrical work on commissTon. The subsidiary started trading in February 2011. A summary of the resutts of the subsidiary is set out below. 2021 2020 Income Cost of sales Administrative expenses 121.069 193,3711 136,1701 1,489,505 11.015,9541 1350,4401 ILossl / Profit on ordinary activities before taxation Corporation tax 18,4721 5,905 123,111 85,337 (Loss) / Profft on ordinary artivitiÈs after taxation 12,5671 208,448 Amount gifted to Hackney Empire Limited 1208,4481 Retained Ilossl / profjt 12.5671 Turnover comprised- Catering operations Pantomime production Other own productions Location and filming fees 96,566 1,096,527 57,614 63,455 296,412 121,059 1.489,505 Hackney Empire Limited and the 5ub5idiary have a group VAT registration. Any profit made by the subsidiary is paid under gift aid to Hackney Empire Limited. The assets and liabilities of the subsidiary were: 2021 2020 Current assets Creditors- amounts falling due within one year 119,631 1122.1971 266.734 1266,7331 Net assets 12.5661 Shareholderfs funds 12,5661 Pale 29
Hackney Empire LimÉted Notes to the accounts Icontinued) For the year erKled 31 March 2021 14 Debt¢Ks Group Chartty 2021 2020 2021 2020 Ttade debtors Other taxes Prepayments and accrued income AmouDts owed SUbsidlary undertaking Corporation tax 25.731 42.173 87,483 11,350 42.173 57,888 92.613 116.525 150.228 106,904 84,640 213,632 91.161 169.866 251.678 373,874 288.391 378,424 15 Creditors: Amwnts lalling due within one yeaT Group Charity 2021 2020 2021 2020 Trade creditors Box office advance seats Other taxes and Social securtty Other crediiors and accruals 107,670 152.561 8,569 161.173 219.965 189,521 22.349 219,477 96,840 152,561 13.748 129,269 208,438 189,521 30,573 169.679 429,973 651,312 392,418 598,211 16 FUre financial commitments The group is cornrnitted to the total future lease payments: 2021 2020 Land and buildirE5- Within one year Between two and five years Over 5 year5 65,000 260,000 32.5 65,000 2fJO.ODO 97,500 357.5(N) 422,500 This represents a 15 year lease over 117 Wilton Way 2021 2020 Office equipment= within one year Between two aThJ fwe years 4.436 9.598 4,389 4,436 13,987 Pa8e 30
Hackney Empire knmited Notes to the accounts (continued) For the year ended 31 March 2021 17 Restricted Funds As at 31 March 2021 Charityand Group 8èlan l April 2020 Incoming resources Resources used Transfers Between funds Balan 31 March 2021 Capital Freehold property Capital projetts ACE Capitsl Works 145,883 7,706.371 210.463 145.883 7,094,215 304,899 1612,1561 126,0991 120,535 Revenue Arts Council England- Culture Retovery Fund Arts Council Enand- supplementary grnnt Backstage Trust Children In Need Esmée Fairbairn Foundation 534.226 1275,995} 258,231 3,436 14,4361 40,000 4,000 io,c 21.0 iio.0001 168,0001 47.C ERNEST HECFrrcHARtrY O Yamana Peabody Goldsmith5 Company Charity Greater London Authority Hackney Council HmRcjF Grant Jean Hodgkinson London Community Response Fund LBH- Service ageMl Theatre Trust Young Leaders on track festival Youth Opportunity Fund 2.500 2,1XJO 3.(KJO 12,5001 12,OCNJI 13,OCKtl io,(KK) 10,000 13CKJI {166.7321 166.732 5.3 5,300 22.237 40,(KKI 122.2371 140.0001 I,0 {i.o(J)I 1,5 {1.5001 Totsl restricted lunds 8,143,153 960.330 11,235.9551 7,867,528 Page 31
Hackney Empire Limited Notes to the accounts Icontinuedl For the year ended 31 MaTth 2021 17 Restricted Funds Icontinuedl Freehold property These funds represent resources held in the form ol building. ACE Capital Work Fundin8 towards acqulsfcion or tmprovement of lon8-term assets suth as equipment or buildin8. Arts Countil England-culture Reco¥try Fuftd Funding towards the costs 01ned in the applicatyon submitted to culture recovery lund- 8rants proEramme. Arts Councll Enafid. Supplementsry Grant Supplementary Branttowards a bespoke pro8ramme of leadership development training ènd support for the Artistic Director. Backstsge Trust Funding towards therefurbishment of toilets at Hackney Empire Children in Need Funds towards LIMtTLESS (Hackney Villa8el. working with thildren and young people with learning and sensory disabilities E$rn Fairbairn Foundation Funding towards thecosts of staffing and arbstic development of new models which aim to increase art15tit ambition and artist and audience diversity Greater Igndon Authofity Funding towards Eryy"re 2 rent as a space for CreatNe future5 PfO8ramme. Jean Hodgkinson Funding to 5UPPOrt implementstion of Covi&19 measures. London Community Response Fund FndIng towaid5 E55enlial activities and uitycal services gf the theatre and to support commvnities and creative futures work Theatre Trust Fundins toward5 improvements to the water pumps in tht theatre. Goldsmiih's Compahy Charity Funding towards creative futures programme. Ernest Hècht Charity Funding rowards thedelivery of 12-week programme, offering connection and engagement for 25-5D isolaied and at-risk youn8 people aged 14-19, with a series of online arts projects. O Yamana Peabody Funding rowards Deital ProjertS. yong Leaders on track festival T9 5UPPOrt youth work. Youth Opporrunity Funds to support Empire Youth takeover- a prOfessiLal development programme of dance. diama and music that enables young people to gain insight into the ueative industries. LBH- Service agreeme London Borough ol Hackney wpported tyJr 'Conne£ting Young Hackne and other youth involvement programmes. HMRCJRS Grant Fundin8 to cover a woportion of the salaries of furlou8hed stsff during the COVIt>19 pandemic. Hackney Council Support towards ueJtNe learning programme. P¥e 32
Hackney Empsre Limited Notes to the accounts (contlnued) For the year ended 31 March 2021 17 Restrided Funds IntInued) As at 31 March 2020 Charity and Group Balance l April 2019 In¢¢ming resources Resources used Transfers Between lunds Balance 31 March 2020 Capital Freehold property Capital projects ACE Capital Works 145,883 8,318,S27 145,883 7,706,371 210,463 1612,1561 {3,107} 213,570 Revenue Arts Couneil England- supplementary grant Backstagè Trust Children In Need Esmée Fairbaim Foundation Hackney Council Nike LBH- Cultural Department L8H-Service agreement NESTA Theatre Trnst Young Leade on trnck festival Youth Opportunity Fund 12,5641 3,436 40,0 io,coo io.( I0.(x) iio,(Kx)I 26,2C(I 47.0 15,CKJO 5.000 152.2(KJl 115,LXL)I 15.cMxJI 21,C(Jo 11.250 111,2501 140,OWI 113.CWI 40.wo 5.CKIO 10,coD iio,o¢J)I Total rertricted funds 8,517.860 399.570 1774,2771 8,143,153 PagÈ 33
Hackney Empire Umited Notes to the accounts Icontinuedl For the year ended 31 March 2021 18 Unrestricted funds As at 31 March 2021 Charity and Group Balance l April 2020 Incoming resources Re%>urces used Transfers between funds 8alance 31 March 2021 General funds 748.698 947.269 1427,578} 1,268,389 Total unrestricted funds 748,698 947.267 1427,5781 1,268,389 As at 31 March 2020 Charlty and Group Balance IApril 2019 Incoming resources Resources Ilsed Transfers between tunds Balance 31 March 2020 General funds 223.096 2.932.392 I2.406.7) 748.698 Total uttrèstricted funds 223.096 2.932.392 12.406,7901 748.698 19 Analysis of net assets between lunds As at 31 March 2021 Tangible Fixed assets Net current liabiltties Totsl Group and Charty Restricted funds Unre5tricled funds 7.761.C#)6 39.391 106.522 1.228,998 7,867,528 1,268,389 7.8W,397 1.335,520 9,135,917 PaRe 34
Hackney Empire Limited Notes to the accounts (continued) For the year ended 31 March 2021 19 Analysis of net assets between funds Icontinued) As at 31 March 2020 Tangible Fixed assets Net current liabilities Total Group and Charity Restricted funds Unrestricted funds ,256,619 22.564 1113.4661 726.134 ,143,153 748,698 8,279,183 612,668 8.891.851 20 Related party transattioD5 The Charity has a wholly owned subsidiary company IFiackrtey Empire Trading Limited IHEfLII of which more details can be found in note 13. A summary of the transactions between the entities Is as follows.. 2021 2020 Fee charged by HETL for producing pantomime Recharge of costs by Charity Profrts donated to the Charity by grft aid 57,614 49,005 1.096,527 555,204 208,448 At the year-end HETL owed the Charity £84.640. There were no other related party transartions not disclosed elsewhere in these accounts. Page 35
Hackney Empire Limited Notes to the accounts Icontinuedl For the year ended 31 March 2021 21 Comparative ¢onsolidated statement of financial activitiÈs UnrÈstrirted . Funds Restrirted Fund5 2020 Total Income from: Donations, gifts and legacies 198.141 198,141 Grants receivable 368,514 399,570 768.084 Investment income 2,362 2,362 Income from trading activities 359.630 359.630 Incomefrom choritoble Uttivities Income from wnning theatre 1.918.408 1,918,408 Total income 2.847.055 399.570 3,246,625 Expenditure on: Costof roisingfunds Fundraising costs Charitoble actAvity Cost of opefation of the theatre 45.231 6,528 51,759 2.361.559 767,749 3,129,308 Total expenditure 2,406.790 774.277 3.181,067 Net income I lexpenditurel for the year 440.265 1374.7071 65,558 Transfers between funds Corporation tsx 85337 85,337 Net movernent in funds 525,602 1374.7071 150,895 Opening fund balance5 as at l April 2019 223,(136 8,517,860 8,740,956 Closing fvnd balances as at 31 March 2020 748,698 8,143,153 8,891.851 Pjge 36