Registered number: 03927101 Charity number: 1086789 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Armstrongwatson. Accountants. Business & Financial Advisers THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) CONTENTS Page Reference and administrative details of the Charity, its Trustees and advisers Trustees, report 2-10 Independent auditors. report on the financial statements Consolidated statement of financial activities 15 Consolidated balance sheet 16-17 Charity balance sheet 18-19 Consolidated statement of cash flows 20 Notes to the financial statements 21-44 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2025 Trustees P L Whitehurst (resigned 24 September 2024) T R Clarke (resigned 31 March 2025) A Lawson D L Stevens A Senior {resigned 20 April 2024) N E Fa￿er (resigned 19 September 2024) SJHunt S L H Newton (resigned 26 April 2024) L ChiTwa {resigned 20 April 2024) K Walsh {appointed 19 June 2024) A Leather, Chair (appointed 19 June 2024) G Bullock (appointed 19 June 2024) P Dale (appointed 19 June 2024) A Emery (appointed 19 June 20241 C Pattinson {appointed 19 June 2024) J Hyland (appointed 19 June 2024) Company registered number 03927101 Charity registered number 1086789 Registered office Brewery Arts 122A Highgate Kendal Cumbria LA9 4HE Company secretary M Randall Chief executive officer M Randall Independent auditors Armstrong Watson Audit Limited Chartered Accountants & StatLrtory Auditors James Watson House Montgomery Way Rosehill Cariisle CA12UU Bankers Virgin Money Box 24 Business Direct 40 St Vincent Place Glasgow G12HL SoliGitors Milne Moser Solicitors Westmorland House The Square Milnthorpe Cumbria LA7 7QJ Page 1 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2025 The Trustees, who are also the directors of the charitable company {"the Charity.) for the purposes of the Companies Act 2006, present their annual report on the affairs of the Charity, together with the financial statements and auditors, report, for the year ended 31 March 2025. The annual report and financial statements are also prepared to meet the requirements for a directors, report and accounts for Companies Act purposes. The reference and administrative infomiation set out on page 1 foms part of this report. The financial statements have been prepared in accordance with the accounting policies set out in the notes and comply wth the Charities Act 2011. the Companies Act 2006. the Memorandum and Articles of Association, and Accounting and Reporting by Charities= Statement of Recommended Practice applicable to charities preparing their accounts in accordance the Financial Reporbng Standard applicable in the UK and Republic of Ireland (FRS 1021 (effective 1 January 2015). Objectives and activities The Charity's main objectives are= to promote, maintsin, improve and advance education particularly by the encouragement of the Arts and Crafts and the fomiulation. preparation and establishment of schemes to render the Arts accessible to the public- to promote the education of children by encouraging an interest in and understanding of the Arts and by running play schools for young children- for any other charitable purposes tending to encourage interest in the Arts which may be conveniently promoted in combination with the aforesaid purpose and which may include permitting Old Age Pensioners to use the premises of the Charity for the purpose of recreation or other leisure-time activities with the object of improving their conditions of life- and, to promote for the benefit of the inhabitants of Kendal, the South Lakes and the surrounding area the provision of facilities for recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age. infirmity or disablement, financial hardship or social and economic circumstances or for the public at large in the interests of social welfare and with the object of improving the quality of life of the said inhabitants. The Trustees confimi that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewng the Charity's aims and objectives. In particular. the Trustees consider how planned activities contribute to the aims and objectives. We are satisfied that each of our aims is charitable and that each is for public benefit. and we are confident that our activities are consistent with our objectives. The followng paragraphs demonstrate that our activities deliver public benefit. While we rely on ticket sales as part of our income, we provide access at concessionary rates for performances and for classes wherever practicable. The Charity exists to engage and inspire the community and future generations. Our mission is to enrich lives through culture and provide wide-ranging opportunities for creative participation in the arts Public benefit We provide public benefit by meeting our charitable aims, and this is done by presenting a diverse programme of live music, theatre, dance, comedy, visual arts. literature and film and in the provision of creative learning and engagement activities which are all available to, and enjoyed by, a wde audience in Kendal and the wider region. In 2024-25 our programme attracted over 142,000 people to our venue through our key programme strands.. Live Perfomiance,. Creative Leaming & Engagement., Cinema & Stage on Screen" Community Event5., Festivals,. and Exhibitions. Page 2 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Strategic Report Achievements and Perfomiance The main activities undertaken to meet our objectives and to deliver public benefit are summarised below. Creative Learning & Community Engagement Our Creative Leaming & Engagement programme engages people of all ages, backgrounds and abilities in a range of artforms. including visual arts, dance, drama. music. literature and film. In 2024-25 we delivered a total of 891 creative leaming sessions, wth 10,658 attendances. Of this figure, 6,096 attendances were children and young people be￿een the ages of &19 years. This induded ￿ week-long summer schools, Arts Unleashed. Our 60+ theatre company, Act Your Age, and our dance group, Mature Movers, also continued to thrive, with 1,249 attendances from people be￿een the ages of 60 - 80 who enjoyed weekly classes in dance and drama. These groups also presented showcase perfomiances, working with our Engagement and Production teams to share and celebrate their work with audiences in our theatre. Classes throughout the year included Portrait Drawing, Pottery Throwng, Makers, Club, Get Moving, scrip￿riting, Film Crew, Stage Stars and many others. Regular feedback demonstrates the wde range of positive impacts on the lives of our participants, who gain skills, confidence, wellbeing, social connection and pathways to ￿rther their training, careers or artistic practice. b) Creative Leaming Projects & Perforniances Future Creatives - Brewery Arts Music Makers: This was a new project for young people aged 16 - 25 to attend free workshops and talent development opportunities in music production. Delivered in partnership with the Brathay Trust and facilitated by Horizon Studios, Barrow, the project supported a cohort of 12 inspiring young creatives who were connected with estsblished professionals in the music industry, such as the founders of Kendal Calling, and also given live performance slots at Kendal Calling, as well as at Brewery Arts. Schools & Community Dance Platfonn 2025: This annual event continues to be a highlight which connects us with 30 local schools for a week of perfomiances by 550 young people. Feedback from teachers, parents, participants and freelance artists is outstanding. We expanded our dance plafform programme by adding a community event which was attended by 92 people. Youth Arts Showcases: Young People within BreY￿ry YoLrth Theatre and Brewery Youth Dance collaborated with Act Your Age and Mature Movers for an intergenerational showcase. Twnkles, Wrinkles and Magical Nights, which attracted 200 visitors. Regional Opportunities: To connect with the wider region. Mature Movers perfomied with their counterparts and took part in workshops which were attended by older people from The Dukes, Lancaster and Dance City in Newcastle whilst our 11-14 year-old dance group performed at the Northwest U-Dance festival at the Lowry in Manchester. Verbalise: We presented monthly spoken word open mic events throughout the year, providing hybrid access to increase access for disabled people. We also support the Brewery Poets group who meet regulady wth occasional public sharings. Supported Community Events We are proud to support a wde range of community events with discounted venue hire and facilities across the year, strengthening partnerships and helping to serve the local community. Highlights from this strand of our programme include annual shows from Kendal College and Kirkbie Kendal School, whilst Queen Katherine School held their Arts evening wth us. We also supported Cumbria Arts & Cutture Ne￿ork. Every Life Matters, Cumbria CVS, Red Rose Recovery, and workshops and screenings for Kendal Pride. Page 3 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Youth Matters: Our partnership with the Brathay Trust continues to support activities for Youth Matters. This provides weekly sessions for young people aged 11-18 to meet and create events in our Warehouse. This has led to partnership working on our engagement projects such as BAMM. d) Kendal Mountsin Festival We continued to expand our activities with Kendal Mountsin Festival, welcoming approximately 9,000 visitors to our venue over the festival weekend in November. This included an expansive programme of adventure films, talks and a visual art exhibition. The festival also induded some live music events focussing on artists working with environmental themes. Supported Artists & Exhibitions During the year, we continued to support ex￿Ptional talent from the local area, and add value to the wider programme through pop-up exhibitions, workshops and public perfomances. This included development time in our theatre for Kendal-based musicians Hayden Thorpe and Jack McNeill. rehearsal time in the studio for Kyra Scott and a development sharing by Emily Woof of her new show Blizzard. Exhibitions: We staged nine exhibitions throughout the year, featuring a range of visual art, sculpture, film and photography. Two were in partnership with Kendal Mountain Festival and The Wainwright Prize (with James Cropper PLC}. We had a solo exhibition from photographer Daniel Cooper. We held the inaugural Brewery Open Exhibition featuring the work of 48 local artists, as well as in-house shows featuring work produced by our creative learning students and tutors. We estimate that approximately 24,000 people visited the galleries during this time. Live Perforniance Programme Our live performance programme takes pla￿ year-round and brings artists, musicians, performers and companies from across the world to enrich and entertain audiences from Kendal and beyond. In total, we presented 196 performances and events across music. theatre. dan￿, comedy and spoken word in 2024-25. This attracted 38,500 people to our venue, which is an increase of 50h on the previous year. Live Music: Our live music strand presented intemational names in contemporary rock, indie, folk, jazz, electronica and world music. Highlights included Bess Atwell, Bemard Butler, The Wedding Present, The Undertones, The Zombies, Imar, LAU, Snapped Ankles. Fergus Mccreadie, Espen Eriksen Trio, N'Famady Kouyate, Seckou Keita and Orchestra Baobab. Audiences for music continues to grow each year, wth 22,500 tickets across 98 gigs. We also presented five free Summer Sunday outdoor music events which were well attended and appreciated by the local community. Family Theatre: Our family theatre programme continued to build viith Roald Dahl and The Imagination Seekers, and Nick Cope's Family Show. We also V￿lcomed the retum of Stuff and Nonsense for our Christmas show who presented The Man Who Wanted to be a Penguin. Admissions for family theatre during the reporting period hit 4,000 from 34 performances. Comedy & Spoken Word: Our comedy programme continues to grow, attracting large aUdien￿S. Maisie Adams, Ivo Graham, Troy Hawke. Russell Kane, Fem Brady and Mark Watson were just some of the highlights. Over spring, autumn and winter. we also presented monthly sessions of our intimate comedy club. In terms of spoken word, we have welcomed to our stage the retum of Hollie McNish, Lemn Sissay and Henry Normal. Including Verbalise mentioned earlier. comedy and spoken word featured 45 performances, attracting a total audience of 8,000. g) Cinema, Stage on Screen & Exhibition on Screen Across the whole reported year, film screenings and the live streaming of cultural events received a total audience of 59,100 admissions across 1,940 screenings, which is an increase of 10 % on the previous year. In cinema, the programme features the broadest and most diverse range of films and live culture screenings in Cumbria, ranging from blockbuster ti￿e$ such as Bridget Jones.. Mad About the Boy, Wicked, Inside Out 2, Page 4 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Despicable Me and Paddington in Peru, to British, independent and intemational film. Highlights included acclaimed first run releases such as Conclave. The Outrun. The Substance. and Starve Acre. Special seasons and festivals included The Japan Foundation Touring Film Programme. KMF on Tour. and our monthly Cin Social Film Club. We have continued to feature a strong Stage on Screen programme wtthin our offer, headlined by live streamed and encore performances from National Theatre Live (including The Motive and The Cue, and Nye}, The Royal Opera House, The Royal Ballet and others. In total, we re￿iVed an audience of 7,000 across 80 screenings of stage on Screen. This is an increase of 30°A on the previous year. We also partnered wth others to present films and wraparound events that celebrate diversity and increase access for all, with Cumbria Deaf Association, South Lakes Action for Climate Change. Carer Support South Lakes and Brathay Trustlyouth Matters. Our film programme offers year-round inclusive screenings for parents and babies, subtitled screenings. and relaxed screenings. h) Creative & Visitor Economy We leveraged national funding and contributed to local, regional and national strategic initiatives and groups, to benefit the creative and visitor economy of Westmodand and Fumess. We maintained strategic partnerships with Arts Council England, including extending our NPO ststus, and Westmorland & Furness Council, Kendal Town Council. Kendal College. Cumbria Music Hub. Kendal Mountain Festival, British Film Institute, Future Arts Centres. Film Hub North, Venues North. Music Venues Trust. Cumbria Arts & Culture Ne￿ork, Cumbria Tourism and Kendal Futures. We continued to actively contribute to county-wide programmes and plans, including the Cumbria-wde Helping Hands volunteering project, which was led by Cumbria Museums Consortium as part of a national initiative. Page 5 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Financial review We are grateful to key funders. Arts Council England. Westmorfand & Fumess Council, Kendal Town Council and BFI Film Hub North, for their continued support to help us maintain the valuable work we do. We are also grateful for the continued support received from the Brewery Arts Centre Endowment Trust and a range of other Trusts and foundations. Our wholly-owned subsidiary, Kendal Catering Company Limited ('KCC°). operates the food, drink and car park activities within The Brewery site. This is an important part of our offer to people attending all our venues. In 2024-25 KCC made a profit and was able to donate £59.442 to the parent charity. Restricted Funds saw net expenditure of £72.694. with this decrease representing the impact of restricted assets, depreciation charged to the Restrirted Funds. The Designated Fund (unrestricted) saw net expenditure of £87,232. vthich represented the impact of designated assets, depreciation on the Designated Fund. The General Unrestricted Fund re￿iVed a net transfer of £160,570, which reduced the deficit level. The deficit stands at £114,305 at 31 March 2025. The overall objective continues to be to redu￿ the General Unrestricted Fund deficit over the next three years. To support this, the trustees agreed to release the permanent endowment to support the operational requirements of the organisation and reduce the historic deficit in 2024-25. A funding agreement is in place from Arts Council England as part of their National Portfolio until 2027-2028 and support also continues from the Brewery Arts Centre Endowment Trust, Westmorland and Fumess Council. Kendal Town Council and the Brits'sh Film Institute. Investment policy and perfonnance The trustees, investment powers are govemed by the Articles of Associats'on, which pemiit the Charity's funds to be invested as the trustees see fit and in a manner vthich is beneficial for the achievement of the Charity's objects. During the year, the Charity invested endowment funds donated to it for the express purpose of generating income to further its objectives. The investment vehicle with Rathbones offered a diverse investment portfolio, guaranteed index perfom)ance, and was a cost*ffective way of maintaining equty market exposure for the Charity. Due to economic pressures, steep inflationary price rises and the challenging funding landscape since the pandemic, the trustees agreed to release the pemianent endowment to support the operational requirements of the organisation and reduce the historic deficit Risk management The trustees regularly reviewthe risks to which the Charity is exposed. The Charity follows accepted health and safety procedures in all its activities to minimise the likelihood of harm to staff, performers, volunteers, and visitors to the Arts Centre. The trustees consider that, as far as it is GU￿entlY practical, suitable systems, internal controls and insUran￿S are in place to mitigate risks. Financial sustainability continues to be the highest risk for the Charity, v￿th unrestricted funds in deficit. The Charity does not hold significant levels of reseNes to support volatility in financial performance. The business plan includes a financial strategy to redu￿ this historic deficit, whilst continuing to meet our charitable aims and the aims of our funders. Page 6 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Reserves policy Total funds at 31 March 2025 amounted to £1,902,964 of which £560,338 were held in restricted funds and are therefore not available for the general purposes of the Charity. The designated funds amounted to £1,456,881, representing the net book value of the buildings acquired wth unrestricted fvnds. Other than depreciation, no material expenditure is expected from the buildings designated fund in the forthcoming year. General unrestricted funds V￿re in deficit at 31 March 2025 at £114,305, a reduction of £83,949 on the opening position. The trustees have reviewed the reserves policy and consider that the level of free reserves (that is those items not tied up in fixed assets and restricted fvnds) required to sustain its operations should be equivalent to three months, worth of annual expenditure on support costs and overheads {25°A of budget). The reserves are needed to meet the working capital requirements of the Charity. The current reserves target is £382,779. Free reserves are currently £0 but the Charity's financial strategy aims to build reserves incrementally year-on-year and to reach target within the next five years. The strategy for building reseNes is as follows.. to strengthen the business model, increase commercial profitsbility, widen private and grant income streams and secure the future development of the Charity., to set operating budgets that generate annual cash surpluses for reinvestment in the Charity., and to maximise income generation opportunities and the retum on investment for all activities, and through appeals and fundraising. This will be achieved by.. implementing the artistic. engagement and marketing strategies in the Business Plan.. implementing the financial strategies led by the Finance Director- monitoring data each week to review progress against financial and audience targets. and adjusting activities accordingly- regularly reviewing pricing levels for arts. cinema, education. and all other activities., maintaining tight control of costs- ensuring that all working procedures and staffing levels are economic and efficient- and broadening the funding base of the Charity by seeking new partnerships and new sources of grant funding, sponsorship, legacies, and donations Plans for future periods In 2025-26 we will continue to increase audience engagement wth our artistic and participatory programmes, increase revenue on cultural and commercial activity, and generate more private income from a wider variety of sources. Our overall target for the Business Plan is to consolidate our finances so that we can achieve positive unrestricted undesignated reserves by 2028 Over the next three years we wll Work towards the followng main aims. Programme: Increase the scale, impact and distinctiveness ofthe presented programme. Engagement: Diversify the engagement programme to increase social and economic impact. Audiences: Broaden audiences and communities to deepen dialogue. reach and impact. Finance: Strengthen the financial model ofthe organisation to secure long term sustainability. Operations: Develop the building, operations and teams to ensure sustainability and resilience. In 2024-25, we wll prioritise the following specific areas of work.. increase public benefft and the profile and reach of the organisation, by presenting a distinctive, ambitlOU5 and high-quality programme on stage and screen, with dynamic audience development strategies and exceptional customer service- review our engagement programmes to ensure our work is competttive and relevant, providing exceptional quality and relevant programmes for the community- Page 7 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 ontinue to build our donor base, implementing new campaigns and mechanisms for giving, and refreshing the membership scheme and sponsorship strategies., develop and diversify the Board and recruit new trustees wth finance and hospitality expertise., seek core funding from trusts and foundations to increase our resilience and expand our artist support programmes., seek capital fvnding to maximise our facilities, maintain the building and improve its energy efficiency- deliver funded music programmes as part of our Future Creatives talent development programme and other engagement activities., be data-led so that we keep progress against targets under dose review, and act responsively according to intemal and external pattems and trends- continue to provide an exceptional hospitality offer to seNice all visitors, placing great customer service at the heart of the visitor experience.. improve the evaluation programme so that we know more about the people we Serve and the impact we deliver a comprehensive staff training and development programme,. and deliver our Environmental Action Plan. Structure, govemance and management Governing Document The Charity is a company limited by guarantee and a registered charity. It is govemed by its Memorandum and Articles of Association which were updated by special resolution on 14 February 2006. b) Recruitment and Appoinljnent of Trustees The trustees are elected by the company at the Annual General Meeting in accordance with the Articles of Association. Six trustees resigned during the year, and seven new trustees were appointed. The trustees who served during the year are set out on page 1. Trustee Induction and Training An induction pack is available to any new trustee which includes a copy of the Memorandum and Articles of Association, a summary of the Charity's objectives, a copy of the Charity Commission's guide on the duties of a trustee and the most recent financial statements. d) Organisational Structure The Charity has a wholly owned subsidiary, Kendal Catering Company Limited, which manages the provision of bar, catering and car parking facilities wthin the Arts Centre and at other outlets. The Board of Kendal Catering Company meets regularly to oversee the work ofthis company. The trustees have regular access to infomiation regarding the programme and financial performance of the harity and meet at least every quarter. The Board has a Finance SulFCommittee and other ad hoc committeeslworking groups are set up to consider specific issues vthere needed. All Trustees, meetings and ommittee meetings are attended by the Chief Executive and the Finance Director. Our key funders are all invited to send observers to the Trustees, Meetings. These funders are Arts Council England, Westmorland & Fumess Council and Kendal Town Council. Fundraising methodology Whilst the majority of the Charity's income is generated through its charitable activities, it is also reliant on grants and voluntary donations to enable it to deliver its high-quality, diverse artistic programme. The majority of this income is provided by way of grants from arts funders {primarily Arts Council England), local government (Westmodand & Fumess Council and Kendal Town Council), the Brewery Arts Centre Endowmenl Trust (an independent Trust set up to support Brewery Arts), and other grant-awarding bodies on an ad-hoc Page 8 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 basis. A relatively small amount of donations is re￿iVed from people attending events and from the general public. As this additional income is critical to the orkgoing development of The Brewery, the Charity employs one member of staff dedicated to fvjndraising, primarily through making grant applications. During the financial year, the Charity was not subject to an undertaking to be bound by any voluntary scheme for regulating fundraising, or any voluntary standard of fundraising. in respect of activities on behalf of the Charity. However, the activities of the Fundraising Manager are monitored by the Chief Executive, to ensure that they are in-line internal policies and procedures. The Charity did not receive any complaints during the year conceming the Charity's fundraising activities. The Charity is committed to protecting vulnerable people and other members of the public from the following behaviour in the course of, or in connection wth, its fundraising activities.. unreasonable intrusion on a person's privacy- unreasonably persistent approaches for the purpose of soliciting or otherwise procuring money or other property on behalf of the Charity., placing undue pressure on a person to give money or other property. Key management personnel remuneration The Trustees consider the board of Trustees, the Chief Executive and the Finance Director as comprising the key management personnel of the Charity in charge of directing and controlling the Charity and running and operating the Charity on a day-t¢Trday basis. The remuneration paid to the Chief Executive and Finance Director and the expenses reimbursed to them are disclosed in note 12 to the financial statements. The Trustees give their time freely and no Trustee remuneration was paid to them during the year. Trustees are required to disdose all relevant interests to other Trustees and withdraw from decisions where a conflict of interest arises. Details of related party transactions are disclosed in note 25 to the financial statements. Any benefit received by Trustees. staff and volunteers is purely incidental to the objects of the Charity. An annual pay review across the Group took pla￿ during the year and was approved by the Trustees. The review considered the impact of the National Living Wage rise and being able to maintain appropriate differentials in pay levels right through the overall structure. Statement of Trustees, responsibilities The Trustees (who are also directors of the Kendal Brewery Arts Centre Trust Limited for the purposes of company law) are responsible for preparing the Trustees, Annual Report including the Strategic Report and the financial statements in accordan￿ wth applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounts'ng Practice). Company law requires the Trustees to prepare financial statements for each financial year. which give a true and fair view of the state of affairs of the group and the charitable company and of the group's incoming resources and application of resources, including the income and expenditure, of the group for the year. 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 stsndards have been followed, subject to any material departures disclosed and explained in the financial statements, and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charitable company will continue in operation. Page 9 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the group and 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 group and the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of information to auditors Each of the persons who are Trustees at the time when this Trustees, report is approved has confimied that: (a) so far as the Trustees are aware, there is no relevant audit infomiation of which the charitable company's auditors are unaware, and (b) they 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 auditors are aware of that information. Approved by order of the members of the board of Trustees and signed on their beha￿ by.. D L Stevens (Trustee) Date.. 0511012025 Page 10 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED Opinion We have audited the financial statements of The Kendal Brewery Arts Centre Trust Limited (the 'parent charitable company,) and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated statement of financial activities, the Consolidated ststement of financial position, the Charity statement of financial position, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Stsndard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the Group's and ofthe parent charitable company's affairs as at 31 March 2025 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended., have been properly prepared in accordance United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance the requirements of the Companies Act 2006 and the Charities Act2011. Basis for opinion We conducted our audit in accordance wth Intemational Standards on Auditing (UK) IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence y￿ have obtsined is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements. we have concluded that the Trustees, use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively. may cast significant doubt on the Group's or the parent charitable ompany's ability to continue as a going concem for a period of at least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going con￿rn are described in the relevant sections of this report. Page11 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (CONTINUED) Other infomiation The other infomation comprises the infonnation induded in the Annual report other than the financial statements and our Auditors, report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otheN4ise explicitly stated in our report. we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and. in doing so, consider whether the other infomiation is materially inconsistent the financial statements or our knowledge obtained in the course of the audit, or othe￿iSe appears to be materially misstated. If we identify such material inconsistencies or apparent material misststements, we are required to detemiine whether this gives rise to a material misstatement in the financial statements themselves. If. based on the work we have performed. we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the infomiation given in the Trustees. report including the Strategic report for the financial year for which the financial statements are prepared is consistent wth the financial statements. the Trustees. report and the Strategic report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our kn¢)wledge and understsnding of the charitable company and its environment obtained in the course of the audit, we have not identified matenal misstatements in the Trustees, report including the Strategic report. We have nothing to report in respect of the follo￿Thn9 matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us., or the parent charitable company financial statements are not in agreement with the accounting records and returns., or certain disclosures of Trustees, remuneration specified by law are not made., or we have not received all the infomiation and explanations we require for our audit- or the Trustees were not entitled to prepare the financial statements in accordan￿ wth the small companies regime and tske advantsge of the small companies, exemptions in preparing the Trustees, report. Responsibilities of Trustees As explained more fully in the Trustees. responsibilities statement, the Trustees (who are also the directors of the charitsble company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Page 12 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (CONTINUED) Group or the parent charitable company or to cease operations, or have no realistic altemative but to do so. Auditors. responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assuran￿ about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors, report that includes our opinion. Reasonable assurance is a high level of assuran￿, but is not a guarantee that an audit conducted in accordance wth ISAS (UK) wll always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individualty or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of nonwcompliance y￿th laws and regulations. We design procedures in line wth our responsibilities, ouuined above, to detect material misstatements in respect of irregularities, including fraud. The extent to Ythich our procedures are capable of detecting irregularities, including fraud is detailed below. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows= the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations- we identified the laws and regulations applicable to the charity through discussions with Trustees and other management. and from our commercial knowledge and experience of the not for profit sector.. we focused on specific laws and regulations Ythich we considered may have a direct material effect on the financial statements or the operations of the charity. we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence- and identified laws and regulations were communicated viithin the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the chariws financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by= making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud., and considering the intemal controls in place to mitigate risks of fraud and non-compliance laws and regulations. To address the risk of fraud through management bias and override of controls, we: performed analytical prO￿dureS to identify any unusual or unexpected relationships; tested journal entries to identify unusual transactions- assessed whether judgements and assumptions made in detemiining the accounting estimates were indicative of potential bias,. and investigated the rationale behind significant or unusual transactions. Page 13 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (CONTINUED) In response to the risk of i￿egUlar1tieS and non-compliance with laws and regulations, we designed prO￿dureS which included, but were not limited to.. agreeing financial statement disclosures to underlying supporting documentation- reading minutes of meetings of those charged govemance" and enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit Pro￿dureS described above. The more removed that laws and regulations are from financial transactions, the less likely it is that would become aware of non-compliance. Auditing standards also limit the procedures required to identify non-compliance with law5 and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.or -ukJauditorsres onsibilities. This description forms part of our Auditors, report. Use of our report This report is made solely to the charitable company's members, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors, report and for no other purpose. To the fullest extent pemiitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members. as a body. for our audrt work. for this report. or for the opinions we have formed. Karen Rae (Senior $￿t￿ory auditor) Armstrong Watson Audit Limited Chartered Accountants & Statutory Auditors Carlisle Date.. 2111012025 Page 14 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2025 Endowment funds 2025 Restricted Unrestricted fvnds funds 2025 2025 Total funds 2025 Total funds 2024 Note Income and 8ndowments from: Donations and legacies Charitable activities Other trading activities Investments 149.400 547,437 1,141,205 863,479 289 696,837 1,141,205 863,479 289 618,724 990.835 829,281 4,293 Total income and endowments 149.400 2,552,410 2,701,810 2,443,133 Expenditure on: Raising funds and other trading expenses Charitable activities 718 740,592 1,971,933 740,592 2,194,027 735,309 1,967,382 222,094 Total expenditure 222,094 2,712,525 2,934,619 2,702,691 Net expenditure before net gains on investments (72.694) 1160,1151 1232,809) (259.5581 Net gains on investments 10,883 Net expenditure before taxation (72,694) (160,115) (232,809) (248,675) 18081 Taxation Net expenditure after taxation (72.694) 1160,115) {232,809) (249,4831 Transfers be￿een fijnds 20 (160,570) 160,570 Net movement in funds (160,570) (72.694) 455 (232,809) (249,4831 Reconciliation of funds: Total funds brought forward Net movement in funds 160,570 633.082 1,345,859 2,139,511 2,388,994 (160,570) (72.694) 455 1232,809) (249.4831 Total funds carried forward 560,388 1,346,314 1,906,702 2,139,511 Page 15 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) REGISTERED NUMBER: 03927101 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2025 2025 2024 Note Fixed assets Tangible assets Investments 14 15 2,130.972 2,291,046 160,570 2,130,972 2,451,616 Current assets Stocks Debtors Cash at bank and in hand 16 16,580 39.727 69,334 20,203 63.335 72,784 17 125,641 156,322 Creditors.. amounts falling due wthin one year 18 (349.911) (462.8711 Net current assets l Liabilities 1224,270) {306,549} Total assets less current liabilities 1,906,702 2,145,067 Creditors.. amounts falling due after more than one year 19 (5,556) Total net assets 1,906,702 2,139,511 Page 16 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) REGISTERED NUMBER: 03927101 CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED AS AT 31 MARCH 2025 2025 2024 Note Charity funds Endowment fvnds Restricted funds Unrestricted funds 20 20 160,570 633,082 1,345,859 560,388 1,346,314 20 Total funds 1,906,702 2,139,511 The Trustees aCknO￿edge their responsibilities for complying with the requirements of the Act wth respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance v￿th the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. Oct q I J2510..53..59GMT•LI D L Stevens Trustee Date.. 0511012025 The notes on pages 21 to 44 form part of these financial statements. Page 17 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) REGISTERED NUMBER: 03927101 CHARITY STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2025 2025 2024 Note Fixed assets Tangible assets Investments 14 15 2,084,125 49.900 2,265,772 210,470 2,134,025 2,476,242 Current assets Debtors 17 101,529 870 80,597 770 Cash at bank and in hand 102,399 81.367 Creditors.. amounts falling due wthin one year 18 (329,722) (412,542) Net current assets l Liabilities 1227.323) {331,175) Totsl assets less current liabilities 1.906.702 2,145,067 Creditors.. amounts falling due after more than one year 19 (5.556} Total net assets 1,906,702 2,139,511 Page 18 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) REGISTERED NUMBER: 03927101 CHARITY STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 MARCH 2025 2025 2024 Note Charity funds Endowment fvnds Restricted funds Unrestricted funds 20 20 160,570 633,082 1,345,859 560,388 1,346,314 20 Total funds 1,906,702 2,139,511 The Charity's net movement in funds for the year vrfas £(232,809) (2024 - £(267, 152)). The Trustees a¢kno￿edge their responsibilities for complying with the requirements of the Act wth respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance wth the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. D L Stevens Trustee Date.. 0511012025 The notes on pages 21 to 44 form part of these financial statements. Page 19 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Cash flows from operating activities Net cash used in operating activities (107,119 22,946 Cash flows from investing activities Dividends, interests and rents from investments Proceeds from the sale oftangible fixed assets Purchase of tangible fixed assets Proceeds from sale of investments 289 4,290 23,142 180,332 160,570 (72,115) 100,000 Net cash provided by investing activities 103,669 32,175 Cash flows from financing activities Repayments of borrowing (33,333) Net cash provided byl{used in) financing activities (33,333) Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning ofthe year 13,450 21,788 72,784 50,996 Cash and cash equivalents at the end of the year 69,334 72,784 The notes on pages 21 to 44 form part of these financial statements Page 20 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 General infonnation The Kendal Brewery Arts Centre TTUSt Limited is a company limited by guarantee and accordingly does not have a share capital, registered in England and Wales. Every member of the company undertakes to contribute £10 in the event of the charitable company being V￿Und up while he or she is a member. The company number, charity number and address of the Registered Office are given in the reference and administration infomiation on page 1 of these financial statements. The principal nature of the charity's operations is to promote for the benefit of the inhabitants of Kendal, the South Lakes and the surrounding area the provision of facilities for arts, education, recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances and for the public at large in the interests of social welfare and Wbth the object of improving the quality of life of the said inhabitants. Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance the Charities SORP (FRS 102) - Accounting and Reporting by Charities= Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Kendal Brewery Arts Centre Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otheNise stated in the relevant accounting policy. The Consolidated statement of financial activities (SOFA) and Consolidated statement of financial position consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements. 2.2 Going concem The financial statements have been prepared on a going concem basis. Whilst the economic landscape continues to be challenging for sector in general and Kendal Brewery Arts in particular, the Trustees believe that they can adopt the going concem basis in the preparation of the annual accounts. The Trustees have reviewed and considered relevant information, including annual budget, performan￿ in Q1 of 2024-25, updated forecast and future cashflows in making their assessment. The following infomiation has been key to this process. The charity owns its building and land. The charity has released endowment fvnds to reduce the historic deficit during the 2024-25 financial year. Operating and Capital Budgets for future years have been designed to generate cash positive balances, including surplus balances for the subsidiary company. In response to the current economic climate the Trustees have tested their cash flow analysis to tske into account possible impacts alongside mitigations that could be taken. Arts Council England funding has been secured for a further three years from 2024-27. Local Authority fvjnding has been secured for a further year from 2024-25. BFI has confirmed continued annual strategic partnership funding from 2024-25. Page 21 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Icontinued) 2.2 Going concern Icontinuedl Key clients Kendal Mountain Festival. Kendal College. Brathay Trust and a range of schools, have confirmed the charity as their venue and programme partner for 2024-25. Confimied programme for 2024-25 includes a year-round schedule of internationally renowned acts in music, comedy, theatre. The Trustees have concluded that the latest forecast shows they can continue to adopt the going conGem basis in preparing the annual report and accounts. 2.3 Income All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income re￿iVed for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is defe￿ed and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. Activity income is included when receivable. Any income received in advance of a performance or the provision of another Se￿1￿ is deferred until the criteria for income are met. Catering activities are carried out by Kendal Catering Company Limited whose profits are payable to The Kendal Brewery Arts Centre Trust Limited via a distribution if there are sufficient reserves to do so. The income is included vthen re￿1Vable. In accordance wth the Charities SORP (FRS 102) the general volunteer time is not recognised as income. The Trustees, annual report contains information regarding their contribution. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. Page 22 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Icontinued) 2.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third paty, it is probable that a transfer of economic benefits wll be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity- Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned be￿een those activities on a basis consistent wth the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on raising funds includes all expenditure inCu￿ed by the Group to raise funds for its charitable purposes and indudes costs of all fundraising activities and non-charitable trading. Expenditure on charitsble activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs. 2.5 Govemment grants Govemment grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated ststement of financial activities as the related expenditure is incurred. 2.6 Interest receivable Interest on funds held on deposit is included vthen receivable and the amount can be measured reliably by the Group- this is nomially upon nokn'fication of the interest paid or payable by the institution with whom the funds are deposited. 2.7 Tangible fixed assets and depreciation Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. At each reporting date the Charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. Page 23 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Icontinued) 2.7 Tangible fixed assets and depreciation (continued Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the foll0Y￿ng basis= Freehold propety Plant and machinery Fixtures, fittings & bar equipment Computer equipment 2% 100 10% 25° 2.8 Investments Fixed asset investments are a fomi of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balan￿ Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as 'Gainsl(Losses) on investments, in the Consolidated statement of financial activities. Investments in subsidiaries are valued at cost less provision for impaimient. 2.9 Stocks Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. 2.10 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.11 Cash at bank and in hand Cash at bank and in hand includes cash and short-temi highly liquid investments wth a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 2.12 Liabilities and provisions Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the setdement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or setvices it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability- The unwnding of the discount is recognised in the Consolidated statement of financial activities as a finance cost. Page 24 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Icontinued) 2.13 Holiday pay accrual A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to fvture periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date. 2.14 Financial instruments The Group onty has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value wth the exception of bank loans which are subsequendy measured at amortised cost using the effective interest method. 2.15 Pensions The Group operates a defined conttibLrtion pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year. The group also operated a defined benefits pension scheme as a member of the Cumbria Local Govemment Pension Scheme. This is a multi-employer defined benefit scheme and the assets are held separately from those of the charity- The last member of this scheme ceased employment in 2020 and the charity's share of the scheme's assets and liabilities have been identified via a termination summary paper. The scheme has been settled in the financial year and no further payments to the scheme will be made. 2.16 Fund accounting General funds are unrestricted fvnds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fijnd is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income. gains and losses are allocated to the appropriate fund. Page 25 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Income from donations and legacies Restricted Unrestricted funds funds 2025 2025 Total funds 2025 Total funds 2024 Grants Arts Council- NPO Westmorland and Furness Council (SCP) Westmorland and Fumess Council (Dance Platform) Westmorland and Fumess Council (NPO Supporti Westmodand and Fumess Council (Additional Supporti Brewery Arts Centre Endowment Trust Kendal Town Council Film Hub North 327,776 327,776 67,500 327,776 67.500 67.500 5,000 10,000 10,000 10,000 22,500 116,000 10,000 20,000 17,750 119,000 10,000 119,000 10,000 Anonymous Cumbria Community Foundation (Engagement) National Youth Foundation (Engagement) Future Creatives: Young Music Producers Garfield Weston Foundation Other Grant Income Screen 3 18.500 18,500 4,812 15.000 15,000 9,450 50,000 950 48,000 9,450 50,000 550 400 48,000 550 Subtotal detailed disclosure 149,400 526,776 676,176 601,888 Donations 20,661 20,661 16.836 Subtotal 20,661 20,661 16,836 149.400 547,437 696,837 618.724 Total 2024 137,562 481,162 618,724 Page 26 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Income from charitable activities Unrestricted funds 2025 Total funds 2025 Total funds 2024 Cinema stage on Screen Adult Education Youth Education 300,635 77,465 67,381 49,726 62,098 297,193 112,762 173,945 300,635 77,465 67,381 49,726 62,098 297,193 112,762 173,945 298,912 62,932 65.114 51,492 63,236 224.715 67,419 157,015 TheatrelDancelLiterature Music Comedy Other Income 1,141,205 1,141,205 990,835 Income from other trading activities Income from non charitable trading activities Unrestricted funds 2025 Total funds 2025 Total funds 2024 Bar & catering Car park income Other income 796,444 67,035 796,444 67,035 775.893 49,473 3,915 863,479 863,479 829,281 Investment income Unrestricted funds 2025 Total funds 2025 Total funds 2024 Income from local listed investments 289 289 4,293 Page 27 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Expenditure on raising funds Unrestricted funds 2025 Total funds 2025 Total funds 2024 Expenditure on raising voluntary income Wages and salaries National Insurance Pensions 18,059 1,875 493 18,059 1,875 493 24,151 1.875 493 Direct costs 113 113 Administrative expenses 5,389 5,389 4.240 25,929 25,929 30,764 Other trading expenses Unrestricted funds 2025 Total funds 2025 Total funds 2024 Cost of sales 290,231 49,214 365,420 5,328 6,339 290,231 49,214 365,420 5,328 6,339 287.543 79,403 328,567 1.997 7,035 Administration expenses Administration staff costs Depreciation Car park costs 716,532 716,532 704,545 Page 28 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysis of expenditure on charitable activities Summary by fvnd type Restricted Unrestricted funds funds 2025 2025 Total 2025 Total 2024 Cinema 18,500 405,771 104,351 706.573 184,994 178,396 393.717 424,271 104,351 723.448 202,269 210,271 531,286 389,508 92,382 612,189 184,402 194,492 494,409 stage on screen Live events Creative learning Education & Outreach 16.875 17,275 31,875 137.569 Administrative expenses 222.094 1.973,802 2.195,896 1,967,382 Total 2024 251.809 1.715.573 1.967,382 10. Analysis of expenditure by activities Activities undertaken directly 2025 Support costs 2025 Total 2025 Total 2024 Cinema Stage on screen Live events 184,610 44.471 375,486 92,018 33.822 239,661 59,880 347,962 110,251 176,449 529,417 424,271 104,351 723,448 202,269 210,271 529,417 389,507 92,383 612,189 184,402 194,492 494,409 Creative learning Education & Outreach Administrative expenses 730.407 1.463.620 2.194.027 1,967,382 Total 2024 619,421 1,347,961 1,967,382 11. Auditors. remuneration The auditors, remuneration amounts to an audit fee of £17,300 (2024 - £16,840), and financial ststement preparation fees of £5,200 {2024 - £4,950). Page 29 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 12. staff costs Group 2025 Group 2024 Charity 2025 Charity 2024 Wages and salaries Social security costs Contribution to defined contribution pension schemes 1.138,648 78,171 1,054,081 67,603 797,695 58,690 746,420 51,971 26,355 25,110 21,370 19,836 1.243,174 1,146,794 877,755 818,227 The average number of persons employed by the Group during the year was as follows: Group 2025 No. Group 2024 No. Charity 2025 No. Charity 2024 No. Administration and management Bar and catering Support Activity 33 15 27 15 15 15 16 16 16 16 71 67 38 40 No employee re￿iVed remuneration amounting to more than £60,000 in either year. The key management personnel of the charity comprise the Trustees the Chief Executive and the Director of Finance. The total employee benefits of the key management personnel including any employer pension contributions were £102.913 (2024- £117,105). 13. Trustees, remuneration and expenses During the year, no Trustees received any remuneration or other benefits (2024 - £NIL). During the year ended 31 March 2025, expenses totalling £89 were reimbursed or paid directly to one Trustee {2024- £18). Page 30 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 14. Tangible fixed assets Group Freehold Plant and Fixtures and property machinery fittings Computer equipment Total Cost or valuation At 1 April 2024 Additions 4,361,614 36,174 28,931 901,736 49,744 (15,715) 280,681 1,688 (7,427) 5,580,205 80,363 (23,142) Disposals At 31 March 2025 4,361,614 65,105 935,765 274.942 5,637,426 Depreciation At 1 April 2024 Charge for the year On disposals 2,680,006 87,232 10.900 5,489 384.663 88,785 110,453 213.590 53,669 (7,427) 3,289,159 235,175 (17,880) At 31 March 2025 2,767,238 16,389 462,995 259,832 3,506,454 Net book value At 31 March 2025 1,594,376 48,716 472,770 15,110 2.130,972 At 31 March 2024 1,681,608 25,274 517,073 67,091 2,291,046 Page 31 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 14. Tangible fixed assets (continued) Charity Freehold property Plant and Fixtures and machinery fittings Computer equipment Total Cost or valuation At 1 April 2024 Additions Disposals 4,361,614 901,736 49.744 115,715) 280,681 1.688 (7,427) 5,544,031 53,382 (23,142) 1,950 At 31 March 2025 4,361,614 1.950 935.765 274.942 5,574,271 Depreciation At 1 April 2024 Charge for the year On disposals 2,680,006 87,232 384.663 88,785 110,453 213.590 53,669 (7,427) 3,278,259 229,767 (17,880) 81 At 31 March 2025 2,767,238 81 462,995 259,832 3,490,146 Net book value At 31 March 2025 1,594,376 1,869 472,770 15,110 2,084,125 At 31 March 2024 1,681,608 517,073 67,091 2,265,772 Page 32 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 15. Fixed asset investments Listed investments At 1 April 2024 Disposals Revaluations 160,570 (159,634 1936 At 31 March 2025 Net book value At 31 March 2025 At 31 March 2024 160,570 Investments in subsidiary Listed companies investments Total Charity Cost or valuation At 1 April 2024 Disposals Revaluations 49,900 160,570 1159,634) 1936) 210,470 1159,634) 1936) At 31 March 2025 49,900 49,900 Net book value At 31 March 2025 49,900 49,900 At 31 March 2024 49,900 160,570 210,470 During the year. the charity obtained permission from the Charity Commission to reclassify the fixed asset investment from an endowment fund to unrestricted funds, this was then withdrawn from the investment portfolio and used for operational activities. Page 33 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 15. Fixed asset investments {continued) Principal subsidiaries The following was a subsidiary undertaking of the Chanty: Name Company Registered office Principal number activity Class of Holding Included in shares onsolidation Kendal Catering Company Limited 01064847 Brewery Arts, 122a Catering Highgate, Kendal, Cumbria. England. L49 4HE Ordinary 1000kn Yes The financial results of the subsidiary for the year were.. Name Income Expenditure Profitl{Loss) I Surplusl (Deficit) for the year Kendal Catering Company Limited 863.479 (804.037) 59,442 Net assets 50,000 16. Stocks Group 2025 Group 2024 Finished goods and goods for resale 16,580 20,203 Page 34 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 17. Debtors Group 2025 Group 2024 Charity 2025 Charity 2024 Due within one year Trade debtors 12,689 6,450 12,689 62,072 26,768 6,312 19,688 54,597 Amounts owed by group undertakings Prepayments and accrued income 27,038 56,885 39,727 63,335 101,529 80,597 Page 35 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 18. Creditors: Amounts falling due within one year Group 2025 Group 2024 Charity 2025 Charity 2024 Bank overdrafts Bank loans 8,280 5,555 55,039 73,750 33,333 71,567 8,280 5,555 38,350 42,013 73,750 33,333 51,917 5,563 Trade creditors Amounts owed to group undertakings Corporation tax Other taxation and social security other creditors 808 808 56,081 49,844 174,304 52,037 45,555 185,821 23,909 49,745 161,870 29,743 45,114 173,122 Accruals and deferred income 349,911 462,871 329,722 412,542 There is a charge in place for the bank loan by way of a first ranking debenture over all of the property and assets of the charity. 19. Creditors: Amounts falling due after more than one year Group 2025 Group 2024 Charity 2025 Charity 2024 Bank loans 5,556 5,556 There is a charge in place for the bank loan by way of a first ranking debenture over all of the propety and assets of the charity. Page 36 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 20. Statement of funds ststement of funds - current year Balance at 31 March 2025 Balance at 1 April 2024 Transfers inlout Income Expenditure Unrestricted funds Designated funds Buildings fund 1,544,113 (87.232) 1,456,881 General funds BISF General Funds 863,479 1.688,931 (742,358) (1,882,935) 159,441 220,011 61,680 (172,247) (198,254) {198,254} 2.552,410 (2.625,293) 160,570 (110,567) Total Unrestricted funds 1,345,859 2.552,410 (2,712,525) 160,570 1,346,314 Endowment funds BISF Permanent 160,570 (160,570 Page 37 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 20. Statement of funds {continued) Balance at 31 March 2025 Balance at 1 April 2024 Transfers inlout Income Expenditure Restricted funds Centre Development Our Digital Future Cultural Cinema Programme Strategic Cultural Partnerships Learning & Engagement Programme Screen 3 National Youth Foundation 173,474 454,796 (23,267) (96,670) (18,500) (67,500) 150,207 358,126 18,500 67,500 4,812 400 1400) (757) (15.000) 4,812 47,243 48,000 15,000 633,082 149,400 (222,094) 560,388 Total of funds 2,139,511 2.701,810 (2,934,619) 1,906,702 Page 38 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 20. Statement of funds {continued) ststement of funds - prior year Balance at 31 March 2024 Balance at 1 April 2023 Transfers inlout Gainsl (Losses) Income Expenditure Unrestricted funds Designated funds Buildings fvnd 1,631,345 (87,232) 1,544,113 General funds General Funds all funds (121,699) (17,668) 1,476,288 829.282 (1,618,318) (746.139) 65,475 (65,475) {198,254) Trading (139,367) 2.305.570 (2.364.457) {198,254} Total Unrestricted funds 1,491,978 2.305.570 (2.451.689) 1,345,859 Endowment funds BISF Permanent 149,687 10,883 160,570 Page 39 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 20. Statement of funds {continued) Balance at 31 March 2024 Balance at 1 April 2023 Transfers inlout Gainsl (Losses) Income Expenditure Restricted funds Centre Development Our Digital Future 180,322 17.750 (24.598) 173,474 567,007 (112.211) 454,796 Cultural Recovery Cultural Cinema Programme Strategic Cultural Partnerships Learning & Engagement Programme 22,500 (22,500) 20.000 (20.000) 67.500 (67.500) 9,812 (5,000) 4,812 747,329 137.562 (251.809) 633,082 Total of funds 2,388,994 2,443,132 (2,703,498) 10,883 2,139,511 Page 40 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 20. Statement of funds {continued) Centre Development The centre development fund represents donations and grants given to support the development of the centre. Our Digital Future The Our Digital Future fvnd represents donations and grants given to support the development of our Arts Centre and Cinema complex. Cultural Recovery The Cultural Recovery Fund represents a grant provided by Westmorland & Fumess Council to support cultural organisations, recovery from the COVID pandemic and subsequent economic conditions. Cultural Cinema Programme The Cultural Cinema Programme represents grants given by the British Film Institute to support the cultural cinema programme. Strategic Cultural Partnerships The Strategic Cultural Partnerships represents grants given by SoLrth Lakeland District Council to deliver a broad and eclectic quality programme of cultural activity. Leaming & Engagement Programme The Learning & Engagement Programme Fund represents grants given by various fvjnders to directly support elements of the Leaming & Engagement Programme. Screen 3 A grant for upgrading and repurposing the Digital Lounge in to a third full time cinema, funded by the Clark Foundation, Cumbedand Council & The Foyle Foundation. National Youth Foundation The National Youth Foundation Fund represents funds to run a youth music programme. Transfers be￿een fvnds During the year. the charity obtained pemiission from the Charity Commission to reclassify the fixed asset investment from an endowment fund to unrestricted funds, this was then withdrawn from the investment portfolio and used for operational activities. Page 41 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 21. Summary of funds Summary of funds - current year Balance at 31 March 2025 Balance at 1 April 2024 Transfers inlout Income Expenditure Designated funds General funds Endowment funds 1,544,113 (87,232) 1198,254) 2.552,410 (2.625.293) 160,570 633,082 1,456,881 (110.567) 160,570 (160,570 Restricted funds 149,400 (222,094) 560,388 2,139,511 2,701,810 (2,934,619) 1,906,702 Summary of funds - prior year Balance at 31 March 2024 Balance at 1 April 2023 Transfers inlout Gainsl (Losses) Income Expenditure Designated funds General funds Endowment funds 1,631,345 (139,367) (87,232) (2.364.457) 1,544,113 {198,254} 2.305.570 149,687 10,883 160,570 Restricted funds 747,329 137,562 (251,809) 633,082 2,388,994 2.443.132 (2.703.498) 10.883 2,139,511 22. Analysis of net assets between funds Analysis of net assets between fvnds - current year Restricted Unrestricted funds funds 2025 2025 Total funds 2025 Tangible fixed assets Current assets 408,328 152,060 1,722,644 2,130,972 (26,419) 125,641 (349.9111 1349,911 Creditors due within one year Total 560,388 1,346,314 1,906,702 Page 42 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 22. Analysis of net assets between funds Icontinued) Analysis of net assets between fvnds - prior year Endowment funds 2024 Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Tangible fixed assets Fixed asset investments 628,270 1,662,776 2,291,046 160,570 156.322 (462,8711 (5,5561 160,570 Current assets Creditors due wthin one year Creditors due in more than one year 4,812 151.510 (462,871) 15,5561 Total 160,570 633,082 1,345,859 2,139,511 23. Reconciliation of net movement in funds to net cash flow from operating activities Group 2025 Group 2024 Net expenditure for the year {as per Statement of Financial Activities) (232,809 (249,483) Adjustments for: Depreciation charges Dividends, interests and rents from investments Ilncrease) in stocks Decreasel(increase) in debtors Increasel{decrease} in creditors Fair value gainl(loss) in SOFA 217,264 1289 3,623 22,847 (117,755 246,249 (4,293} 13,047) (45,021) 89,424 (10,883) Net cash provided byl(used in) operating activities 1107,119 22,946 24. Analysis of cash and cash equivalents Group 2025 Group 2024 Cash in hand 69,334 72,784 Total cash and cash equivalents 69,334 72,784 Page 43 THE KENDAL BREWERY ARTS CENTRE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 25. Analysis of changes in net debt At 1 April 2024 Cash flows At 31 March 2025 Cash at bank and in hand Bank overdrafts repayable on demand Debt due within 1 year Debt due after 1 year 72,784 (73.750) (33,333) (5,556) 13,450 65,470 27,778 5,556 69,334 18,280) {5,555) (39,855) 95,354 55,499 26. Pension commitments The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group by an independently administered fund (Royal London). The pension cost charge represents contributions payable by the group to both ftjnds and amounted to £26,355 (2024 £25,110). At the balance sheet date there was £3,992 {2024 - £3,776) payable to the funds and included in creditors. 27. Operating lease commilments At 31 March 2025 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows.. Group 2025 Group 2024 Not later than 1 year Later than 1 year and not later than 5 years 4,616 1,383 2,396 3,594 5,999 5,990 28. Related party transactions Related party transactions with Trustees are disclosed in note 13 of the financial statements. There were no other related party transactions in the year. Page 44