2023-08-31-accounts - The Kings Theatre Trust Limited

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REGISTERED COMPANY NUMBER: 03983443 (Engiand and Wales)

REGISTERED CHARITY NUMBER: 1088254

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

FOR THE KINGS THEATRE TRUST LIMITED

THE KINGS THEATRE TRUST LIMITED

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

		Page	Page
Report of the Trustees	1	to	6
Report ofthe Independent Auditors	7	to	10
Statement of Financial Activities		11
Balance Sheet		12
Cash Flow Statement		13
Notes to the Cash Flow Statement		14
NotestotheFinancialStatements	15	to	25

THE KINGS THEATRE TRUST LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2023. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

The objective of the charity is to provide high quality entertainment at affordable prices; deliver opportunities for the local community to participate in the arts through social and cultural activities; and be responsible custodians of the Grade II* listed building with a maintenance and restoration programme.

PUBLIC BENEFIT

The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities. The Trustees refer to public benefit throughout this report.

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THE KINGS THEATRE TRUST LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

ACHIEVEMENT AND PERFORMANCE

This report sets out the achievements of the Kings Theatre Trust Limited from September 2022 to August 2023.

The financial year 22/23 has been a period of rebirth and growth for the Kings. It has emerged fully from the pandemic in a stronger position than it was in 2019, with better programming, increased audience figures, a now established producing arm, and a relaunch of its Arts Academy.

Good attendance at shows has allowed the theatre to build up revenue. The surpluses generated from its ticket sales, restoration levy and ancillary sales, after covering operating costs, is used to create opportunities to participate in creativity and the enjoyment of the arts with the production of its community shows, the delivery of its community and outreach programme, and by subsidising its Arts Academy and the scholarship scheme. The Kings is committed to providing affordable theatre and has introduced subsidised £10 tickets in the gallery for internal productions and endeavours to put on shows at reasonable prices. Surpluses are also put into maintaining all that is needed to deliver a high-quality theatre experience, including auditorium repairs, the upgrade of stage and technical equipment, and maintenance of the building and preservation of its historical collection.

The theatre makes a positive impact to the local economy and employment. Over the year it employed 31 contracted staff and 99 casual staff. Furthermore, local shops, bars, restaurants, travel firms and businesses benefit fram the increased footfall to the area.

The challenges the Kings faces going forward include the lack of suitable space to expand its community and outreach offering, making the necessary changes to improve accessibility, and upgrading public areas and facilities in the theatre to meet the needs of modern audiences. The theatre is built around three shops that are now dilapidated, and it is hoped this space can be redeveloped and incorporated into the theatre to meet the needs of the theatre and rejuvenate the high street.

My thanks go to all the Trustees and the Executive Board for their support over the last year, and | want to express enormous gratitude to all the staff and volunteers who have delivered the activities and contributed to the successes and achievements.

ACHIEVEMENTS IN 2022/23

PROGRAMMING AND AUDIENCES The programming policy is to have a broad appeal to people living in Portsmouth and the local region. The customer database increased by 17% during the year, in which there were 72 shows with 146,182 attending performances across 192 live performances of the shows, and three screenings. The quality of shows is reflected in the many published reviews, willingness of producers to work with the Kings, and in feedback from customers. Week longs have included national tours of Mamma Mia!, Strictly Ballroom and The Rocky Horror Show. It has hosted some of the biggest names in comedy with Kevin Bridges, Sarah Pascoe, Russell Kane, Rob Beckett and Josh Widdicombe, as well as nights hosting the presenter Ben Fogel, and cricket pundits Jonathan Agnew and Phil Tufnell. High quality music acts across alll genres are popular and further choices of opera, drama, dance, and children's shows have seen an increase in the core audience base. The annual pantomime which is produced by the Kings is a favourite and drew a record attendance this year. This programme was complemented by ten community shows, three produced by the Kings, and performances by local amateur dramatic societies and dance schools.

With many shows playing to near full capacity (52 with audiences over 1000 and 11 completely sold out), and c.11,000 people sitting in the Gallery during the year, renovations io this tier have begun including numbered seating and improved facilities. More work is planned on this tier in the following year to accommodate growing audience numbers and requirements.

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THE KINGS THEATRE TRUST LIMITED

IN-HOUSE PRODUCTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

The Kings started producing in 2020. It has produced its own pantomime for the last three seasons. This year its production of Cinderella was watched by 46,341 people over 52 performances. The pantomime is the highest gross earner in the year and is key to the theatre's financial resilience and independence. The pantomime will continue to be produced in-house.

Following on from its own community production of Titanic the Musical last year it went on to produce two this year, the first being Chitty Chitty Bang Bang where 10,393 people attended over eight performances and Little Shop of Horrors with 2,788 people attending over six performances.

These shows gave 60 local performers the opportunity to work with a professional creative team and perform at the Kings. The Arts Academy also produced its own performance of Footloose with 64 youth members having the opportunity to be on stage performing to 740 people over twa shows.

TECHNICAL INVESTMENT

The year has allowed the Kings to invest in its technical infrastructure to meet the demands of incoming producers and its own productions. It has upgraded its sound equipment with a new PA to a West End standard; installed a new advance truss to improve the facility for incoming tours; invested in a new projector and back up lighting console; and upgraded computer hardware to allow better use of industry standard programs.

OUTREACH AND PARTICIPATION

Although constrained by space the Kings delivered 133 separate events as a part of its community and education programme. This allows the local community to enjoy the theatre outside of its show schedule and offers an introduction to the arts for some. The Kings now runs an established weekly coffee morning programme on a variety of themes; a Community Sing event - a weekly gathering for those that just love to sing; and a monthly Writers Hub. Hub.

The Kings welcomed over 83 peopie to its Heritage Open Day and 514 joined history, tech, toddler and ghost tours. The Kings also hosted the Chinese New Year celebration which is the biggest UK celebration outside London.

Two local schools came for educational visits and 1,100 schoolchildren and teachers attended the School Book Awards in June. A further 42 schools booked for the pantomime, with a total of 4021 attending.

KINGS THEATRE ARTS ACADEMY

The Kings relaunched its youth theatre as The Kings Theatre Arts Academy (KTAA) in September 2022 as an umbrella for all youth arts programmes and has plans to extend this to an aduit programme in the future. Over the year the Academy grew from 55 to 72 members. Ht introduced a scholarship scheme to support participation from low-income families. Nine participants benefited from the scheme. 64 members participated in the Academy's summer performance of Footloose and the older members in the National Theatre initiative Connections.

INCLUSION

The theatre promotes access and inclusion to ensure that its offering is made available to as wide an audience as possible. It participated in the Holidays and Food Scheme with 44 places being taken up in the school holidays for children ranging from 5-16 years old. It gave over 1603 tickets for the pantomime to children and adults who would not normally have the financial means to attend the theatre, and is a sponsor of the local Council led City of Sanctuary. The coffee mornings are part of the local council scheme to tackle isciation and the mental health issues that can occur with this.

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THE KINGS THEATRE TRUST LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

The theatre participates in the Hidden Disabilities Sunflower scheme and provided five interpreted performances and does a relaxed performance of the pantomime. The Front of House team are trained in Dementia Awareness.

19 volunteers support our work and the delivery of activities.

HISTORICAL COLLECTION As an independent theatre the Kings has a unique historical collection documenting _ its performance history. tt has started an active programme to preserve the archive. In ithe year it has digitised over 1800 items to increase access and has started to transfer original items to archival quality conservation boxes. It is also managing electronic business records. The archive is used by the theatre for exhibitions, history talks, social media posts and contributions to souvenir brochures. tt can be accessed on request for historical research.

MANAGEMENT AND GOVERNANCE

The trustees meet quarterly and have complete aversight of governance and finances.
The Executive Board meets monthly and advises the Trust on compliance and governance issues.

FINANCES

A surplus of £579,581 (2022: £827,793) was reported at the end of the financial year and the reserves stood at £1,851,246 (2022: £1,271,665).
At the year end the total of restricted funds were £4,539 (2022: £4,890).

RESERVES POLICY

The current reserves are in excess of the Trust's requirements (adopted from Feb 2023) for an unrestricted reserve of £1m. The Trustees are confident that this level of reserves will be maintained.

PAY POLICY FOR SENIOR STAFF

The Board of Directors, who are the Trust's Trustees, provide oversight and governance and the CEO and Executive Team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Trust on a day-to-day basis.

All directors give their time freely and no director received remuneration in the year for their trustee responsibilities.

One director acts as CEO on a voluntary basis.

Details of all directors' remuneration and benefits are disclosed in note 9 to the accounts. The pay of senior staff is reviewed annually.

RISK MANAGEMENT

A Risk Register is run by the Trust. This identifies and assesses the business risks. It is reviewed every three months and updated as appropriate.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The trust is a company limited by guarantee governed by its Memorandums and Articles of Association. it is registered as a charity with Charity Commission.

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THE KINGS THEATRE TRUST LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and appointment of new trustees

The directors of The Kings Theatre Trust Limited are also charity trustees for purpose of charity law.

Generally, no person other than a trustee retiring by rotation, shall be appointed or reappointed a trustee at any general meeting unless they are recommended by tine trustees.

Induction and training of new trustees

Trustees are regularly briefed on their legal obligations and meet key employees and other trustees. They are regularly provided with management accounts, business plans and relevant governance documentation.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 03983443 (England and Wales)

Registered Charity number 1088254

Registered office The Kings Theatre Albert Road Southsea Hampshire PO5 2QJ

Trustees

R Hasker

| Pratt D Repton DT Gant

Dr G Morgan R Peck

P Woolf Mrs P Prescott W M Taylor Resigned 21 June 2023 Cllr H L Mason Appointed 13 July 2023 Ms M Costa Appointed 8 September 2023 - post year end Chief Executive Officer P Woolf Resigned 31 January 2024 - post year end R Pearce Appointed 31 January 2024 - past year end

Auditors Morris Crocker Limited Chartered Accountants Statutory Auditors Station House North Street Havant Hampshire POY 1QU

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THE KINGS THEATRE TRUST LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

REFERENCE AND ADMINISTRATIVE DETAILS

Bankers

Handelsbanken Pic Ground Floor 1000 Lakeside North Harbour Western Road Portsmouth PO6 3EN

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also the directors of The Kings Theatre Trust Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charity SORP;
make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

there is no relevant audit information of which the charitable company's auditors are unaware; and
- the trustees have taken ail steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS

The auditors, Morris Crocker Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 12.aas dette and signed on its behalf by:

D Repton - Trustee

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

THE KINGS THEATRE TRUST LIMITED

Opinion

We have audited the financial statements of The Kings Theatre Trust Limited (the ‘charitable company’) for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 31 August 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annuai Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Opinions on other matters prescribed by the Companies Act 2006

in our opinion, based on the work undertaken in the course of the audit:
the information given in the Report of the Trustees for the financial year for which the financial statemenis are prepared is consistent with the financial statements; and
the Report of the Trustees has been prepared in accordance with applicable legal requirements.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE KINGS THEATRE TRUST LIMITED

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing fo report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE KINGS THEATRE TRUST LIMITED

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

From discussion with management and those charged with governance information about the entity is documented to assess the activity within the organisation. We discuss management's assessment of risk in respect of irregularities, fraud and going concern.

Based on these discussions and our own assessments we determined that the key risk areas were income recognition in respect of cut off issues and management override concerning the size of the organisation.

We set financial statement materiality level based on the level of income. As a not for profit organisation raising income is its primary focus which is why income was used to determine the level of materiality. Our overall assessment of risk was used to determine performance materiality at an appropriate level. Substantive audit tests were designed after assessing and performing walkthrough tests. The walkthrough testing confirmed documented systems which have been designed to act as a preventative measure against fraud and error which appear to be operating as documented. Substantive testing tested a sample of the population, representative of the population, to identify errors. The testing did not identify any material misstatemenis in areas tested.

Audit substantive tests concluded no material errors over the key risk areas of income recognition and management override.

The audit considers the organisation is not exposed to material risk of error as a result of assessing laws and regulations that are appropriate to the organisation.

Management assessed there is no going concern risk. The audit undertook a review of budgeis, management accounts and the review of board minutes and came to the same conclusion as management.

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.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE KINGS THEATRE TRUST LIMITED

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. GR) aamed

Paul Underwood (Senior Statutory Auditor) for and on behalf of Morris Crocker Limited Chartered Accountants Statutory Auditors Station House North Street Havant Hampshire POS 1QU

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THE KINGS THEATRE TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023

					2023	2022
		Unrestricted funds	Designated Reserves	Restricted funds	Total funds	Total funds
	Notes	£	£	£	£	zs
INCOME AND
ENDOWMENTS FROM
Donations and legacies	2	134,424	-	-	134,424	351,698
Charitable activities	4
Operation ofthe theatre		2,145,905	290,486	-	2,436,391	1,912,668
Ancillary trading		488,309	-	-	488,309	405,437
Education		7,726	-	-	7,726	3,977
Investment income	3	41,476	-	-	41,476	19
Total		2,817,840	290,486	-	3,108,326	2,673,799
EXPENDITURE ON
Charitable activities	5
Operation ofthe theatre		2,369,691	-	351	2,370,042	1,639,402
Ancillary trading		158,703	-	-	158,703	103,779
Theatre restoration		-	-	-	-	87,916
Education		-	-	-	-	13,909
Total		2,528,394	-	351	2,528,745	1,845,006
NET
INCOME/EXPENDITURE)		289,446	290,486	(351)	579,581	828,793
RECONCILIATION OF
FUNDS
Total funds brought forward		1,073,787	192,988	4,890	1,271,665	442,872
TOTAL FUNDS CARRIED
FORWARD	1,363,233		483,474	4,539	1,851,246	1,271,665

The notes form part of these financial statements

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THE KINGS THEATRE TRUST LIMITED (REGISTERED NUMBER: 03983443)

BALANCE SHEET

31 AUGUST 2023

		2023	2022
	Notes	£	£
FIXED ASSETS
Intangible assets	12	-	3,231
Tangible assets	13	293,150	258,600
		293,150	261,831
CURRENTASSETS
Stocks	14	19,095	11,704
Debtors	15	155,925	401,272
Cash atbank and in hand	16	2,970,682	1,944,835
		3,145,702	2,057,811
CREDITORS
Amounts falling due within one year	17	(1,561,773)	(910,735)
NETCURRENTASSETS		1,583,929	1,147,076
TOTAL ASSETS LESS CURRENT
LIABILITIES		1,877,079	1,408,907
CREDITORS
Amounts falling due after more than one year 18		(25,833)	(137,242)
NET ASSETS		1,851,246	1,271,665
FUNDS	21
Unrestricted funds:
General fund		1,363,233	1,073,787
Designated Building Restoration fund		483,474	192,988
		1,846,707	1,266,775
Restricted funds		4,539	4,890
TOTALFUNDS		1,851,246	1,271,665

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 1 Sheth Lee? He and were signed on its behalf by:

D Repton - Trustee

The notes form part of these financial statements

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THE KINGS THEATRE TRUST LIMITED

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2023

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||||||||| |---|---|---|---|---|---|---|---| |2023|2022| |Notes|£|s| |Cash|flows|from|operating|activities| |Cash|generated|from|operations|1|1,203,326|601,912| |Net|cash|provided|by operating|activities|1,203,326|601,912| |Cash|flows|from|investing|activities| |Purchase|of tangible|fixed|assets|(98,715)|(74,920)| |Interest|received|41,476|19| |Net|cash|used|in|investing|activities|(57,239)|(74,901)| |Cash|flows|from|financing|activities| |Loan|repayments|in|year|(120,240)|(156,073)| |Net|cash|used|in|financing|activities|(120,240)|(156,073)| |Change|in|cash|and|cash|equivalents| |in|the|reporting|period|1,025,847|370,938| |Cash|and|cash|equivalents|at the| |beginning|of the|reporting|period|1,944,835|1,573,897| |Cash|and|cash|equivalents|at the|end| |of the|reporting|period|2,970,682|1,944,835|

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The notes form part of these financial statements

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THE KINGS THEATRE TRUST LIMITED

1; RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2023

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||||||||| |---|---|---|---|---|---|---|---| |2023|2022| |£|£| |Net|income|for the|reporting|period|(as|per the|Statement of| |Financial|Activities)|579,581|828,793| |Adjustments|for:| |Depreciation|charges|67,396|73,455| |Loss|on|disposal|of fixed|assets|-|7,542| |Interest|received|(41,476)|(19)| |Increase|in|stocks|(7,391)|(2,605)| |Increase|in|debtors|(54,653)|(10,645)| |Increase/(decrease)|in|creditors|659,869|(294,609)| |Net cash|provided|by|operations|1,203,326|601,912|

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2. ANALYSIS OF CHANGES IN NET FUNDS

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|||||||||| |---|---|---|---|---|---|---|---|---| |At|1.9.22|Cash|flow|At|31.8.23| |£|£|£| |Net|cash| |Cash|at|bank|and|in|hand|1,944,835|1,025,847|2,970,682| |1,944,835|1,025,847|2,970,682| |Debt| |Debis|falling|due|within|1|year|(18,831)|8,831|(10,000)| |Debts|falling|due|after|1|year|(137,242)|111,409|(25,833)| |(156,073)|120,240|(35,833)| |Total|1,788,762|1,146,087|2,934,849|

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The notes form part of these financial statements

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THE KINGS THEATRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicabie 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)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The trustee directors consider that there are no material uncertainties regarding the charitable company's ability to continue as a going concern.

income

All income is recognised in the Statement of Financia! Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Income from the box office is included net of the payments made to promoters.

Volunteers and donated services

The vaiue of services provided by volunteers is not incorporated into these financial statements.

Where goods or services are provided to the charity as a donation that would normally be purchased from suppliers, these contributions are included in the financial statements at an estimate based on the value of the contribution to the charity.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost telated to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Irrecoverable VAT

The Trust is partially exempt for the purpose of VAT and therefore irrecoverable VAT arising on some purchases is written off to the Statement of Financial Activities as it occurs.

intangible fixed assets

Intangible fixed assets are amortised on a straight line basis over their estimated useful economic lives, which is considered to be 5 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - 2% on cost Improvements to property - 10% on cost Plant and machinery - 20% on cost Fixtures and fittings - 20% on cost Computer equipment - 33.33% on cost

Individual fixed assets costing £250 or more are capitalised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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THE KINGS THEATRE TRUST LIMITED

ACCOUNTING POLICIES - continued

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds are set up when the trustees wish to allocate money to specific projects.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the doner or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Financial instruments

The charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable investments in stocks and shares. The measurement basis use for these financial instruments is detailed below.

Debtors and cash at bank & in hand

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at bank and in hand inciudes cash held on deposit or in a current account.

Creditors and provisions

Creditors and provisions are recognised where the charitable company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

DONATIONS AND LEGACIES

DONATIONS ANDAND LEGACIES
	2023	2022
	£	£
Donations and legacies	58,424	28,120
Grants	61,000	308,578
Donated services and facilities	15,000	15,000
	134,424	351,698

Donated services relate to IT services of £15,000 (2022: £15,000) provided to the charitable company without charge during the year.

Grants received, included in the above, are as follows:

Operational grants receivable

2023	2022
£	£
61,000	308,578

continued...

Page 16

THE KINGS THEATRE TRUST LIMITED

INVESTMENT INCOME

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

INVESTMENT INCOME
		2023	2022
		£	£
Deposit account interest		41,476	19
All investment income is	derived from assets held in the United Kingdom.
INCOME FROM CHARITABLE ACTIVITIES
		2023	2022
	Activity	£	£
Box office sales and
recharges	Operation of the theatre	2,436,391	1,912,668
Ancillary Trading	Ancillarytrading	488,309	405,437
Education and Youth
income	Education	7,726	3,977
		2,932,426	2,322,082

The box office sales of £2,436,391 (2022: £1,905,131) represents the theatre's share of the total production income, after payments to promoters. The gross production income is £3,028,321 (2022: 2,798,818).

5: CHARITABLE ACTIVITIES COSTS

6.

CHARITABLE ACTIVITIES COSTS
	Direct	Support
	Costs (see	__costs (see
	note 6)	note 7)	Totals
	£	£	£
Operation ofthe theatre	2,306,646	63,396	2,370,042
Ancillarytrading	158,703	-	158,703
	2,465,349	63,396	2,528,745
DIRECTCOSTS OF CHARITABLE ACTIVITIES
		2023	2022
		£	£
Staff costs		1,127,023	919,532
Rates and water		15,433	2,767
Insurance		46,950	25,078
Light and heat		43,196	52,519
Sundries		7,962	6,375
Minor building Projects		43,477	59,779
Education costs		12,419	13,909
Training costs		8,445	2,363
Cleaning costs		27,023	20,944
Routine repairs		25,980	23,497
Irrecoverable VAT		77,033	10,087
Big project costs		3,961	4,640
Show production costs		449,354	233,732
Ancillarytrading expenses		158,703	103,779
Technical and IT		49,043	47,394
Marketing		186,332	95,490
Bank charges		115,619	70,234
Depreciation		67,396	73,453
		2,465,349	1,765,572

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THE KiNGS THEATRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

T SUPPORT COSTS

T	SUPPORT COSTS
			Governance
		Management	costs	Totals
		E	£	£
	Operation ofthe theatre	35,858	27,538	63,396
	Support costs, included in the above, are as follows:
	Management
			2023	2022
			Operation
			of the	Total
			theatre	activities
			£	£
	Telephone		17,507	16,839
	Postage and stationery		5,077	3,690
	Sundries Health and Safety		4,777 8,497	17,974 6,670
	Loss on sale of tangible fixed assets		-	7,544
			35,858	52,717
	Governance costs
			2023	2022
			Operation
			of the	Total
			theatre £	activities £
	Auditors’ remuneration		7,000	4,850
	Accountancy and legal fees		20,538	21,867
			27,538	26,717
8.	NET INCOME/(EXPENDITURE)
	Net income/(expenditure) is stated after charging/(crediting):
			2023	2022
			£	£
	Auditors’ remuneration		7,000	4,850
	Depreciation -owned assets Deficiton disposal offixed assets Websitecostsamortisation		64,165 - 3,231	68,609 7,544 4,846

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continued...

THE KINGS THEATRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

9. TRUSTEES’ REMUNERATION AND BENEFITS

There were no Trustee's receiving remuneration or benefits during the year.

Trustees’ expenses

No trustees were reimbursed out of pocket expenses during the year.

10. STAFF COSTS

----- Start of picture text -----
|||||| |---|---|---|---|---| |2023|2022| |£|E| |Wages|and|salaries|1,038,158|848,892| |Social|security|71,535|57,394| |Employers|pension|costs|17,330|13,246| |Redundancies|-|-| |1,127,023|919,532|

----- End of picture text -----

The average monthly number of employees during the year was as follows:

----- Start of picture text -----
||||| |---|---|---|---| |2023|2022| |Administrative|staff|9|9| |Operational|staff|25|27| |34|36|

----- End of picture text -----

The number of employees whose employee benefits (excluding employer pension costs) £60,000 was:

exceeded

----- Start of picture text -----
||||| |---|---|---|---| |2023|2022| |£60,001|- £70,000|1|-|

----- End of picture text -----

Included within wages and salaries costs is a statutory redundancy payment totalling Enil (2022: £1,632) paid to nil (2022: one} employees on the termination of their employment contract with the charitable company.

Key Management Personnel

The key management personnel of the charitable company comprises the General Manager, Artistic Director and the People, Communication and Community Manager. The total consideration paid and empioyee remuneration and benefits of the key management personnel of the charity was £157,665 (2022: £159,152).

----- Start of picture text -----
Page 19
----- End of picture text -----

continued...

THE KINGS THEATRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

11.	COMPARATIVES FOR THE STATEMENTOF	OF FINANCIAL	ACTIVITIES
		Unrestricted funds	Designated Reserves	Restricted funds		Total funds
		£	£	£		£
	INCOME AND ENDOWMENTS FROM
	Donations and legacies	351 ,698	-		-	351,698
	Charitable activities
	Operation ofthe theatre	1,912,668	-		-	1,912,668
	Ancillarytrading Education	405,437 3,977	- -		- -	405,437 3,977
	Investment income	19	-		-	19
	Total	2,673,799	-		-	2,673,799
	EXPENDITUREON
	Charitable activities
	Operation ofthe theatre	1,628,525	-	10,877		1,639,402
	Ancillary trading	103,779	-	-		103,779
	Theatre restoration Education	83,276 13,909	- -	4,640 -		87,916 13,909
	Total	1,829,489	-	15,517		1,845,006
	NET INCOME/(EXPENDITURE)	844,310	-	(15,517)		828,793
	RECONCILIATION OF FUNDS
	Total funds brought forward	229,477	192,988	20,407		442,872
	TOTAL FUNDS CARRIED FORWARD	1,073,787	192,988	4,890		1,271,665
12.	INTANGIBLE FIXED ASSETS
						Website
						costs
						£
	COST
	At 1 September 2022 and
	31 August2023					24,230
	AMORTISATION
	At 1 September 2022					20,999
	Charge foryear					3,234
	At 31 August 2023					24,230
	NET BOOKVALUE
	At 31 August 2023					-
	At31August2022					3,231

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continued...

THE KINGS THEATRE TRUST LIMITED

TANGIBLE FIXED ASSETS

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

13.	TANGIBLE FIXED ASSETS
			tmprovements
		Freehold	to	Plant and
		property £	property ba	machinery £
	COST
	At 1 September 2022	141,783	72,163	1,892
	Additions	-	4,906	-
	At 31 August 2023	141,783	77,069	1,892
	DEPRECIATION
	At 1 September2022	28,372	43,252	945
	Charge for year	2,836	7,496	378
	At 31 August 2023	31,208	50,748	1,323
	NET BOOKVALUE
	At 31 August2023	110,575	26,321	569
	At 31 August2022	113,411	28,911	947
		Fixtures
		and	Computer
		fittings	equipment	Totals
		£	%	£
	COST
	At 1 September 2022	213,413	47,390	476,641
	Additions	80,243	13,566	98,715
	At31 August2023	293,656	60,956	575,356
	DEPRECIATION
	At 1 September 2022	112,058	33,414	218,041
	Charge for year	39,731	13,724	64,165
	At31 August2023	151,789	47,138	282,206
	NET BOOK VALUE
	At 31 August2023	141,867	13,818	293,150
	At 31 August 2022	101,355	13,976	258,600
14.	STOCKS
			2023	2022
			£	£
	Stocks		19,095	11,704

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continued...

THE KINGS THEATRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

		2023	2022
		£	£
Trade	debtors	56,487	26,834
Otherdebtors	debtors	83,766	74,438
VAT		15,672	-
		155,925	101,272

CASH AT BANK AND IN HAND

Within the cash balance of £2,970,682 (2022: £1 944,835) is £1,332,575 (2022: £651,162) ring fenced in respect of advanced ticket sales.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

	2023	2022
	e	£
Bank loans and overdrafts (see note 19)	10,000	18,831
Trade creditors	59,605	90,6538
Social securityand other taxes	19,995	14,984
VAT	-	3,834
Other creditors	1,472,173	782,428
	1,561,773	910,735

Deferred income represents income received in advance for tickets for shows in the next financial year.

	2023	2022
	£	£
Broughtforward	651,162	1,062,823
Amount released to incoming resources	(627,349)	(1,030,474)
Amountdeferred in year	1,308,762	618,813
Carried forward	1,332,575	651,162
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONEYEAR
	2023	2022
	E	£
Bankloans(seenote19)	25,833	137,242

SECURED DEBTS

The charitable company has a bank loan with a total balance of £nil as at 31 August 2023 (2022: £110,240) which is secured against 28 Albert Road, Southsea.

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continued...

THE KINGS THEATRE TRUST LIMITED

LOANS

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

An analysis of the maturity of loans is given below:

					2023	2022
					£	£
	Amounts falling due within one year on demand:
	Bank loans				10,000	18,831
	Amounts falling due between two and five years:
	Bank loans - 2-5 years				25,833	75,240
	Amounts falling due in more than five years:
	Repayable by instalments:
	Bank loans after more than	5 years			-	62,002
20.	ANALYSIS OF NET ASSETS BETWEEN FUNDS
					2023	2022
		Unrestricted funds fe	Designated Reserves £	Restricted funds £	Total funds £	Total funds £
	Fixed assets	293,150	-	-	293,150	261,831
	Current assets	2,657,689	483,474	4,539	3,145,702	2,057,811
	Current liabilities	(1,561,773)	-	-	(1,561,773)	(910,735)
	Long term liabilities	(25,833)	-	-	(25,833)	(137,242)
		1,363,233	483,474	4,539	1,851,246	1,271,665
21.	MOVEMENT IN FUNDS
					Net
					movement	At
				At 1.9.22	in funds	31.8.23
				£	£	£
	Unrestricted funds
	General fund			1,073,787	289,446	4,363,233
	Designated Building Restoration fund			192,988	290,486	483,474
				1,266,775	579,932	1,846,707
	Restricted funds
	Development Project Fund			351	(351)	-
	Feasibilitystudy			4,539	-	4,539
				4,890	(351)	4,539
	TOTALFUNDS			1,271,665	579,581	1,851,246

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continued...

THE KINGS THEATRE TRUST LIMITED

MOVEMENT IN FUNDS- continued

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

Net movement in funds, included in the above are as follows:

	Incoming	Resources	Movement
	resources	expended	in funds
	£	£	£
Unrestricted funds
General fund	2,817,840	(2,528,394)	289,446
Designated Building Restoration fund	290,486	-	290,486
	3,108,326	(2,528,394)	579,932
Restricted funds
Development Project Fund	-	(351)	(351)
TOTAL FUNDS	3,108,326	(2,528,745)	579,581
Comparatives for movement in funds
		Net
		movement	At
	At 1.9.21	in funds	31.8.22
	£	£	£
Unrestricted funds
General fund	229,477	844,310	1,073,787
Designated Building Restoration fund	192,988	-	192,988
	422,465	844,310	1,266,775
Restricted funds
Development Project Fund	15,868	(15,517)	354
Feasibilitystudy	4,539	-	4,539
	20,407	(15,517)	4,890
TOTAL FUNDS	442,872	828,793	1,271,665
Comparative net movement in funds, included in theabove	above are as follows:
	Incoming	Resources	Movement
	resources	expended	in funds
	£	£	£
Unrestricted funds
General fund	2,673,799	(1,829,489)	844,310
Restricted funds
Development Project Fund	-	(15,517)	(15,517)
TOTALFUNDS	2,673,799	(1,845,006)	828,793

Building Restoration Fund

This is a designated unrestricted fund to be used for the continued repair and restoration of the theatre. Page 24 continued...

THE KINGS THEATRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2023

21. MOVEMENT IN FUNDS- continued

Development Project Fund This fund relates to the proposed Development Project to take the development of the theatre forward over the next 5 years.

EMPLOYEE BENEFIT OBLIGATIONS

The charitable company operates a defined contribution scheme. The costs to the charitable company for the year was £17,330 (2022: £13,246). At the year end the charitable company owed £3,652 (2022: Enil) to the scheme.

CAPITAL COMMITMENTS

----- Start of picture text -----
2023 2022
£ £
Contracted but not provided for in the financial statemenis - 57,704
----- End of picture text -----

RELATED PARTY DISCLOSURES

During the year, the Trust hired lighting equipment and made purchases totalling £52 (2022: £756) from ITP Lighting Limited, a business partly owned by a trustee, | Pratt. At the year end, the Trust owed f£nil (2022: £nil) to ITP Lighting. These transactions were on an arm's length commercial basis.

ULTIMATE CONTROLLING PARTY

The charitable company is not under the control of another entity or any one individual.

LEGAL STATUS OF THE CHARITABLE COMPANY

The charity is a company limited by guarantee and has no share capital. The maximum liability of each member in the event of winding up is limited to £10.

Page 25