Company registration number: 03340600 Charity registration number: 1066687 WOLVERHAMPTON ARTS CENTRE LTD DIRECTORS' REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Daw White Murrall Chartered Accountants 1 George Street Snow Hill Wolverhampton WV2 4DG
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) Company information Registered charity name Charity registration number Company registration number Registered office Trustees/Directors Company secretary Accountants Wolverhampton Arts Centre Ltd (formerly Newhampton Arts Centre until 3'd June 2025). 1066687 03340600 Dunkley Street Wolverhampton West Midlands WV1 4AN RJ Ashwell K Fraser M Cartwright C Shelton R Taylor F Richings J Blunt L Court S Pallan-Jhali W Stephens T Wright Daw White Murrall Chartered Accountants 1 George Street Snow Hill Wolverhampton WV2 4DG 2
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) Contents Page Report of the Trustees Independent Examiner's report Statement of Financial Activities Balance Sheet Cash Flow Notes to the financial statements 4-13 14-15 16 17 18 19-30
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 March 2025. Structure, Governance and Management Wolverhampton Arts Centre Ltd is a company limited by guarantee and not having a share capital under the Companies Act 2006 (registration number 03340600) and is registered with the Charity Commission as a charity (registration number 1066687) under the Charities Act 2011. The company changed its name from Newhampton Arts Centre to Wolverhampton Arts Centre Ltd on 3r° June 2025. The charity is governed by a Board of Trustees who are also directors. Directors are elected at the AGM and serve for three years. They represent arts, site users, the local community, business and education. The governance of the charity is laid out in its governing document which is available on request. Trustees Responsibilities The trustees are responsible for preparing the Trustees' Annual Report and the 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 trustees are required to: • • select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP 2015 (FRS 102); 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 explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The trustees are responsible for keeping adequate 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 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. Appointment of trustees As set out in the Articles of Association, the chair of the trustees is nominated by the Board. The trustees are elected annually by the members of the charitable company attending the Annual General Meeting and serve for a period of three years. They can then be re-elected for a further 4
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 three year period. The Board may recommend additional terms if the arts centre would benefit as a result. There can be up to 12 Board members. Trustee induction and training New trustees undergo an induction to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent financial performance of the charity. During the induction they meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. Organisation The board of trustees administers the charity. The board meets bi-monthly and there are action groups covering development, personnel and finance which meet as required. A Chief Executive is appointed by the trustees to direct the day to day operations of the charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the trustees, for undertaking agreed strategies and operational matters including finance, employment and artistic programme related activity. Risk management The trustees have a risk management strategy which comprises: : • an annual review of the risks the charity may face the establishment of systems and procedures to mitigate those risks identified in the plan the implementation of procedures designed to minimise any potential impact on the charity should those risks materialise. This ongoing work has resulted in better emergency procedures and contingency plans and gives the impetus for better planning. Particular attention is focussed on non financial risks arising from buildings, health and safety of all site users, and food hygiene. A key element in the management of financial risk is the setting of a reserves policy and its regular review by trustees. 5
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Public benefit The trustees have had regard to the Charity Commission's guidance on public benefit. Wolverhampton Arts Centre aims to deliver charitable public benefit by inspiring and supporting those who may not regularly be involved in creative experiences, including: children and young people families and intergenerational groups people with disabilities people who feel on the edge of or excluded from mainstream society and/or who do not identify themselves as arts attenders 6
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Objectives and activities The charity works to achieve its aims by: 1. 2. 3. 5. 6. Providing a high quality and supportive venue for the performance of music, dance, drama and other performing arts, for professional and community use including minority cultural events. Providing good value office, rehearsal and meeting space for resident organisations and appropriate groups and organisations from the wider community. Engaging local voluntary and professional organisations in positive cultural partnerships and collaborations within the centre, the city and the West Midlands region. Providing opportunities for young people, children and families to participate in the arts. Promoting the Wolverhampton Arts Centre as a hub for formal and informal education, training and participation within the arts. Encouraging links and shared opportunities between organisations to optimise the use of the Wolverhampton Arts Centre facilities. Promoting training and development for staff, resident and other organisations in the cultural industries. Promoting inclusion in the arts by addressing barriers - physical, social, cultural, economic. Maintaining the economic viability of the Wolverhampton Arts Centre, to sustain the delivery of arts opportunities. 10. Seeking funding to support new cultural opportunities. 7
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Achievements and performance Change of Name 2024-5 was the final year when the charity was known as Newhampton Arts Centre, and plans were developed and delivered for a name change in April 2025 to Wolverhampton Arts Centre. Performance Venue NAC presented a full year's programme of live events in the theatre and New Horizons outdoor stage tent. In total 151(138 2023-4) live events were presented in the theatre and tent. There were 40 days of exhibitions in the Gallery Hall. Audience numbers continued to increase. Total audience for events and exhibitions was 12274, up from 9992 (2023-4), 8,121 (2022-3). Room Hire and Residents 2024-5 saw the boiler system replaced in the Gallery Hall, so the winter of 2024-5 saw the site fully heated for the first time since December 2023. We were able to relocate affected residents to their former spaces and return the Studio Block to full-time hire space use. Resident occupancy continued to recover well and as of March 31 was above 90% of lettable units. Work continued on units affected by damp and water ingress caused chiefly by the boiler failure to bring them back into lettable condition. Cultural Partnerships NAC continued to act as lead body for Wolverhampton City of Youth Culture and worked throughout the year with partners Wolverhampton Music Service, Gazebo TIE, Learnplay Foundation, University of Wolverhampton and City of Wolverhampton Council to deliver a wide-ranging programme of youth cultural opportunities. 8
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 NAC continued to support the work of the Wolverhampton Cultural Education Partnership and continued to employ its co-ordinator. We continued to work with Black Country Touring on our adult and family theatre programmes and we were able to bring work by Bric a Brac Theatre, Townsend Productions, Jack and Friends, Goofus Theatre and Takeshi Matsumoto Our partnership with Jazz at Wolverhampton continued to enable us to present high-quality contemporary touring artists in the city - including Jay Phelps, Emma Rawicz, Empirical and Alice Zawadski. The folk programme saw Wakefire, The Carrivick Sisters, Will Page, Kathryn Roberts and Seth Lakeman among the artists appearing. NAC has become a regular venue for the Wolverhampton Literature Festival and presented talks and events by Adrian Chiles, Worklight Theatre and Fesshole. Finally, we were able to support a number of independent artists to create new work. Curl Girl Productions rehearsed a new theatre piece Valley of the Queens at NAC before it was seen at theatres in the region. Two early-career producers on a development scheme with Moving Souls Dance were able to contribute to the Same Difference Festival. We also launched in March our first New Producers programme for early career creatives in the Black Country. Economic Viability Income from tickets continued to increase during the year, as well as that from shows and catering. The rises in National Insurance and the Minimum wage in the budget of December 2024 meant that NAC had no choice but to pass these increased costs onto purchasers. The increase in earned income levels can be partly explained by higher prices, but also a full year without the heating issues that curtailed rental and hire income in the previous two financial years. Earned income levels all rose in 2024-5 reflecting both the raising of prices and increased activity in the theatre. The drop in bar income from the previous year was reversed to match 2022-3, suggesting that with the right programme there is no systemic fall in this income sector. Rental income Hire space income Show income Bar income 2024-5 £107,259 (2023-4 £99,203 2022-3 £91,111) 2024-5£106,505 (2023-4£89,717 2022-3 £104,976) 2024-5 £116,908 (2023-4 87,471 2022-3 £64,247) 2024-5 £46,038 (2023-4 £40,926 2022-38 3 £46,373) 9
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Earned income as a whole was very significantly up - £376,710 compared to £317,317 (2023-4) and £306,707 (2022-3) - a rise of 16%. Fundraising Activity NAC continued to fundraise to support the charitable activities of the organisation. Funding was secured from the Architectural Heritage Fund to pay for design and development work on the capital scheme. The Foyle Foundation provided £20,000 to support the purchase of a new sound control desk and associated equipment for the theatre. The Garfield Weston Foundation and The Roger and Douglas Turner Charitable Trust both supported the core charitable activities of the organisation. The Eveson Trust provided funds for work with 12-16 year olds. The Holiday Activities and Food Programme and the YES Programme, both operated by Wolverhampton City Council, supported work with young people in the school holidays. A contract to run the Wolverhampton Urban Rooms project was secured from the West Midlands Combined Authority. Arts Council England NAC continued to act as the lead body for the Place Partnership Fund programme of work Wolverhampton: City of Youth Culture together with partners Wolverhampton City Council, Wolverhampton Music Service, Gazebo TIE, Wolverhampton CEP, and Learn/Play Foundation. Together with match funding the total project value is €950,000. NPO funding for WAC was confirmed by Arts Council England as continuing on an annual renewable basis until March 2028. Organisational Development Joanne Blunt was on secondment to Arts Council England and returned to the board with additional skills and expertise. 10
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 A Capital Campaign Manager at senior management level will be appointed to lead the fundraising campaign for the capital work. PLANS FOR FUTURE PERIODS WAC will complete the works enabled by €1.5 million investment programme from the Towns Fund and as part of this secure a long-term lease on the site with Wolverhampton City Council, followin urchase of the half of the site owned by City of Wolverhampton College APEC Architects will continue to develop the masterplan for the site development during 2024-5 and we anticipate their work will reach RIBA Stage 4. All legal, public and financial aspects of the name change will be completed in 2025-6. 11
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Financial Review The charity's financial position is laid out in the balance sheet and financial statements. Total funds of the charity at 31 March 2025 were £352,017 (2024: £468,086). At the end of the year under review there were free reserves of £142,690 (2024: £225,642). Trustees investment powers and policy on reserves The trustees have power to invest and expend the funds of the charity in such a manner as they shall consider most beneficial for the achievement of the objects in accordance with the Articles of Association of the charity. Reserves in this context constitute all funds held in cash, at the charity's bankers, or in the form of other current, medium or long term investments, which form part of the charity's unrestricted funds available for expenditure on the charity's charitable purposes. Newhampton Arts Centre is currently dependent on earned income from renting out facilities, room hire and event income. In addition there is income from fundraising (with support from organisations such as the NACtivists), donations and, where successful, grant and funding applications to sustain its activities. The purpose of having a written reserves policy is to ensure that trustees abide by the Articles of Association of the Newhampton Arts Centre and provide information for potential funders. The purpose of the reserves is to: 1. Provide funds for urgent priorities not covered in the annual budget such as building and equipment repair and replacement and other urgent requirements as agreed by the board. 2. Supplement annual expenditure where necessary at the end of the financial year. Provide for three months running costs including all recurring predictable expenses such as salaries and benefits, utilities, rentals and ongoing professional services, to enable the charity to fulfil its debts and obligations and wind-up costs in the event of enforced closure. The reserves should be held in an account aimed to generate a better return on funds than those available on an ordinary current account but still sufficiently flexible to be accessed to meet urgent priorities. The amount of the reserves will be calculated each financial year as part of the annual budget but will have a dynamic role and will be subject to review and adjustment in response to internal and external changes. It has been calculated that reserves of 25% of turnover would be needed to continue running for at least three months. This policy will be kept under review in relation to any changes in circumstances. 12
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Small Company Provisions This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption. The trustees' annual report (incorporating the directors' report) was approved on signed on behalf of the board of trustees by: and WENDY ANN STEHENS CHAIR a BOARD a TRUSTEES qth Decoubor 2025 13
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) Independent Examiner's Report to the Trustees of Wolverhampton Arts Centre Ltd for the Year Ended 31 March 2025 I report on the financial statements for the year ended 31 March 2025, which comprise the Statement of Financial Activities, the Balance Sheet, the statement of Cash Flows and the related notes. Respective responsibilities of trustees and examiner The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the financial statements. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. The charity's gross income exceeded €250,000 and I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales (ICAEW). Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to: • examine the accounts under section 145 of the 2011 Act; • to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and • to state whether particular matters have come to my attention. Basis of independent examiner's report My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the next statement. 14
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) Independent Examiner's Report to the Trustees of Wolverhampton Arts Centre Ltd for the Year Ended 31 March 2025 Independent examiner's statement In connection with my examination, no matter has come to my attention: (1) which gives me reasonable cause to believe that in any material respect the requirements: • to keep accounting records in accordance with section 386 of the Companies Act 2006, and • to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities have not been met, or to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. murall Vir G. Murrall PCA, on behalf of DAW WHITE MURRALL 1 George Street Snow Hill Wolverhampton WV2 4DG 15
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2025 Notes Unrestricted Restricted Total 2025 € Total 2024 € INCOME AND ENDOWMENTS FROM: Donations and legacies Charitable activities Grants Earned income Other income Investment income Total Income and Endowments EXPENDITURE: Charitable activities: Direct costs Support costs Raising funds Total Expenditure NET INCOME/(EXPENDITURE) Transfers between Funds Fund balances at 1 April 2024 TOTAL FUNDS CARRIED FORWARD AT 31 MARCH 2025 2 3 7 16,111 251,145 376,710 6,102 3,990 654,058 147,243 529,903 11,000 688,146 (34,088) 248,711 214,623 - 304,777 304,777 16,111 555,922 376,710 6,102 3,990 958,835 338,270 48,488 485,513 578,391 11,000 386,758 1,074,904 (81,981) (116,069) - - 219,375 468,086 137,394 352,017 26,649 482,773 317,392 363 3,852 831,029 161,956 506,077 11,000 679,033 151,996 - 316,090 468,086 The statement of financial activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities. The notes form part of these financial statements 16
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) BALANCE SHEET AT 31 MARCH 2025 Notes 2025 € 2024 € FIXED ASSETS Tangible assets CURRENT ASSETS Stock Debtors Cash at bank and in hand 10 107,880 65,031 11 12 CREDITORS Amounts falling due within one year NET CURRENT ASSETS 13 2,722 41,323 566,939 610,984 (366,847) 244,137 2,469 27,446 413,971 443,886 (40,831) 403,055 TOTAL ASSETS LESS CURRENT LIABILITIES 352,017 468,086 FUNDS Unrestricted funds Restricted funds 15 16 214,623 137,394 248,711 219,375 TOTAL FUNDS 352,017 468,086 For the year ending 31 March 2025 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Directors' responsibilities: the members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476; the directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements. These financial statements have been prepared in accordance wih the provisions applicable to companies subject to the smal companies' regime. The financial statements were approved by the Board on .... The notes form part of these financial statements ... and signed on its behalf by: WENDY ANN STEPHENS CHAIR of BORD of TRUSTEE) means. 091225 17
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) STATEMENT OF CASH FLOWS AT 31 MARCH 2025 Notes 2025 Cash provided by operating activities Cash flows from investing activities: Interest income Purchase of tangible fixed assets a 203,354 Cash provided by/(used in) investing activities 3,990 (54,376) (50,386) Increase/decrease in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year b Cash and cash equivalents at the end of the year b 152,968 413,971 566,939 Reconciliation of net income/(expenditure) to net cash flow from operating activities 2025 Net (expenditure)/income for the year as per the SOFA (116,069) Adjusted for: Depreciation Loss on fixed asset disposals Investment income (Increase)/decrease in stock (Increase)/decrease in debtors Increase/(decrease) in creditors 11,527 (3,990) (253) (13,877) 326,016 Net cash provided by operating activities 203,354 b Analysis of cash and cash equivalents 2024 € 177,600 3,852 (18,362) (14,510) 163,090 250,881 413,971 2024 151,996 11,760 (3,852) (491) 22,781 (4,594) 177,600 Cash at bank and in hand 2025 € 566,939 2024 413,971 18
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 1. 1.1 1.2 1.3 ACCOUNTING POLICIES General Information The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Dunkley Street, Wolverhampton, West Midlands, WV1 4AN. Statement of Compliance These financial statements have been prepared in compliance with the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), effective from 1st January 2015 - Charities SORP (FRS 102) and the Companies Act 2006. Accounting Policies Basis of preparation The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. Going concern The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. Judgements and key sources of estimation uncertainty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Funds accounting Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. Designated funds are unrestricted funds earmarked by the trustees for particular future projects or commitments. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal. 19
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Income All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income: • income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. • legacy income is recognised when receipt is probable and entitlement is established. • income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted. Resources expended Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates: expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods. • expenditure on charitable activities includes all costs incurred by the charity ir undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support cost and costs relating to the governance of the charity. • other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities. 20
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Tangible fixed assets All fixed assets are initially recorded at cost and subsequently stated at cost less any accumulated depreciation. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Fixtures and fittings Equipment Computer equipment 10% straight line 10% straight line 33% straight line Impairment of fixed assets Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the statement of financial activities. Financial instruments Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities, including creditors and loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Stock Stock is included at the lower of cost or net realizable value. Pensions Defined pension contributions payable to the charity's pension scheme are charged to the statement of financial activities in the period to which they relate. 21
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2. DONATIONS AND LEGACY INCOME Unrestricted Designated Restricted Funds Funds Funds Fundraising and donations 16,111 16,111 : GRANTS RECEIVABLE The Foyle Foundation Arts Council England LCEP Roger & Douglas Turner Trust HAF/YES Youth Culture Project/LCEP Saturday Club Cultural Youth Board Urban Rooms Architectural Heritage Fund Garfield Weston Foundation Architectural Heritage Func Wolverhampton College Total 2025 € 16,111 16,111 Unrestricted Designated Restricted Funds Funds Funds Total 2025 - 251,145 - - - - - 251,145 : : 5,730 190,730 20,685 19,028 10,000 38,604 20,000 : 5,730 190,730 20,685 19,028 10,000 38,604 20,000 : 251,145 304,777 555,922 Total 2024 € 26,649 26,649 Total 2024 € 20,200 251,145 (2,135) 2,000 23,379 190,563 - - (2,379) 482,773 *The negative balances in 2024 are due to expectations in the 2022/23 accounts of grants due in 2023/24 which turned out to be overstated. 22
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 4. EARNED INCOME Rental income Theatre and room hire Show income Workshop income Bar and vending machine income OTHER INCOME Miscellaneous income Unrestricted Designated Restricted Funds Funds Funds € 107,259 106,505 116,908 - - - 46,038 376,710 : Total 2025 € - 107,259 106,505 116,908 46,038 - 376,710 Unrestricted Designated Restricted Funds Funds Funds € € € 6,102 6,102 Total 2025 6,102 6,102 23 Total 2024 € 99,203 89,717 87,471 75 40,926 317,392 Total 2024 363 363
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 6. COST OF OPERATION OF THE ARTS CENTRE Unrestricted Designated Restricted Funds Funds Funds Direct Costs Show costs Workshops Catering and bar Printing and publicity Support Costs Staff costs Training and recruitment Office costs and administration Rent Rates and water Light and heat Insurances Maintenance of premises Cleaning Licenses and affiliations Telephone and broadband Travel and entertaining Bank and credit card charges Miscellaneous expenses Legal and professional fees Accounting fees Payroll fees Depreciation Total Operational Costs FUNDRAISING 106,852 10,608 20,465 9,318 147,243 343,598 2,029 5,800 - 8,883 39,214 3,192 16,448 71,132 3,723 775 261 2,523 11,606 3,182 8,936 3,089 5,512 529,903 677,146 : - 338,270 - 338,270 36,784 5,689 6,015 48,488 Total 2025 € 106,852 348,878 20,465 9,318 485,513 380,382 2,029 5,800 8,883 39,214 3,192 22,137 71,132 3,723 775 261 2,523 11,606 3,182 8,936 3,089 11,527 578,391 386,758 1,063,904 Fundraising expenses Unrestricted Designated Restricted Funds Funds Funds 11,000 11,000 24 : Total 2025 € 11,000 11,000 Total 2024 € 69,771 58,784 22,402 10,999 161,956 320,721 225 4,655 9,352 50,879 3,462 16,272 68,275 5,078 1,445 477 1,770 4,547 3,327 3,832 11,760 506,077 668,033 Total 2024 € 11,000 11,000
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 8. TAX ON ACTIVITIES The company is a registered charity and as such is not liable for taxation on any surplus in the year. 9. STAFF COSTS 2025 2024 Wages and salaries Employers national insurance Employers pension contributions 351,703 20,320 8,358 380,381 298,830 14,743 7,148 320,721 No staff member received remuneration in excess of £60,000 (2023: none). During the year the charity paid pension contributions totalling £8,358 (2024: £7,168) into the defined contribution group personal pension scheme. The key management personnel comprise the members of the Management Team. The total amount of employee benefits (including employer pension contributions) received by the management team for their services to the charity for the year was £72,137 (2024: £69,785). The trustees did not have any expenses reimbursed during the year (2024 - nil). 25
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 10. TANGIBLE FIXED ASSETS Leasehold Improvement € Cost At 1 April 2024 Additions Disposals At 31 March 2025 Depreciation At 1 April 2024 Charge for the year At 31 March 2025 Net Book Value At 31 March 2025 At 31 March 2024 11. STOCK 53,859 53,859 53,859 - Bar Vending machine 12. DEBTORS Trade debtors Other debtors and prepayments 26 Fixtures, Computer Fittings & Equipment Equip 129,950 129,950 66,001 10,462 76,463 53,487 63,949 12,572 517 13,089 11,490 1,065 12,555 534 1,082 2025 2,722 2,722 2025 € 39,609 1,714 41,323 Total € 142,522 54,376 196,898 77,491 11,527 89,018 107,880 65,031 2024 € 2,469 2,469 2024 25,477 1,969 27,446
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 13. CREDITORS: AMOUNTS DUE WITHIN ONE YEAR Trade creditors Taxes and social security costs Other creditors and accruals 2025 € 35,433 331,414 366,847 2024 € 4,250 36,581 40,831 14. 15. PENSION COMMITMENTS The charity operates a defined contribution pension scheme in respect to employees. Contributions are charged in the statement of financial activities as they fall due and amount in the year to £8,358 (2024: £7,148). At the balance sheet date there were outstanding contributions of £1,790 (2024: €1,149). UNRESTRICTED FUNDS OF THE CHARITY Balance at 1 April 2024 Movement in funds for the year Transfers between funds Balance at 31 March 2025 General Fund € 248,711 (34,088) 214623 27
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 16. RESTRICTED FUNDS Balance at 1 April 2024 € 21,203 3,389 2,100 15,270 3,233 Incoming Resources Capital Purchases Co-op/Esmee Fairbairn ACE CRF 2 D'Olye Cart Foyle Foundation Other Grants Foyle Foundation (bal) Children & the Arts/StartArt Garfield Weston Foundation (a) HAF/YES grant Roger & Douglas Turner CT Youth Culture Project Saturday Club Urban Rooms Eveson Trust Garfield Weston Fdn Architectural Heritage Fund Esmee Fairbairn - 2,719 - 156,460 : 15,001 : 219,375 - - - 5,730 - 209,758 20,685 10,000 20,000 38,604 304,777 28 Resources Expended (3,534) (484) (300) (1,697) Transfers Balance at Between 31 March Funds 2025 € € 17,669 2,905 1,800 13,573 3,233 - (6,240) - (359,025) (7,458) (2,330) (5,690) (386,758) - - : - : 2,209 - 7,193 13,227 7,670 15,001 20,000 32,914 137,394
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 RESTRICTED FUNDS (continued) 16. Capital Purchases Co-op Foundation/Esmee Fairbairn Foundation Arts Council England CRF2 D'Oyly Carte Charitable Trust Foyle Foundation Funds to support the purchase of outdoor stage tent and associated equipment Funds to support the organisation to adapt its facilities and recover from COVID restrictions Funds towards the purchase of a piano to support the jazz programme Support for the purchase of a new sound mixing desk for the theatre and associated sound equipment Other Grants Children and the Arts/StartArt Garfield Weston Foundation Funds for work with young people Funding to support the programming of the organisation during this transition year post-COVID HAF (Holiday Activities and Food Programme) Funding disbursed by Wolverhampton City Council to support school holiday creative and food activities for families on means-tested free school meals YES Programme Funding from Wolverhampton City Council to support school holiday creative activities for families Roger and Douglas Turner Charitable Trust Funding to support the core costs of the organisation Youth Culture Project Funding from Arts Council England to support a three-year or out meltwork with young people, Wolverhampton Gily LCEP Funds received from Arts Connect to support the costs of the Wolverhampton Local Cultural Education Partnership The Eveson Trust Funds to support participatory visual arts work with young people aged 11-16 Architectural Heritage Fund Support for an Options Appraisal to be carried out by a registered architect on the future options for the site Esmee Fairbairn Foundation Grant towards a community mapping project 29
WOLVERHAMPTON ARTS CENTRE LTD (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 17. ANALYSIS OF RESERVES Fixed assets Net current assets Total 18. Restricted Funds 35,947 101,447 137,394 Designated Unrestricted Funds Funds : 71,933 142,690 214,623 Total 107,880 244,137 352,017 EMPLOYEE NUMBERS The average number of persons employed by the company during the year amounted to 23 (2024: 21). 30