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2023-03-31-accounts

CHICHESTER FESTIVAL THEATRE - 31 MARCH 2023

Company registered number: 4210225 Charity registered number: 1088552

CHICHESTER FESTIVAL THEATRE (A company limited by guarantee)

TRUSTEES' REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

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CHICHESTER FESTIVAL THEATRE - 31 MARCH 2023

CONTENTS AND COMPANY INFORMATION

Contents
Page
Company Information 2
Our Chair’s Report 3
Trustees' Report (including Strategic Report) 4-18
Trustees' Responsibilities for the Financial Statements 19
Independent Auditor's Report 20-22
Income and Expenditure Account 23
Consolidated Statement of Financial Activities 24
Consolidated Balance Sheet 25
Company Balance Sheet 26
Cash Flow Statement 27
Notes to the Financial Statements 28 - 36

Our People

Directors and Trustees

Mark Foster – Chair Alan Brodie (retired 27 May 2022) Cllr Judy Fowler (retired 26 May 2023) Victoria Illingworth Georgina Liley (retired 9 December 2022) Rear Admiral John Lippiett CB CBE Michael McCart (retired 30 September 2022) Harry Matovu QC – Deputy Chair

Holly Mirams (retired 9 December 2022) Caro Newling OBE (appointed 1 April 2022) Nitin Pasricha Philip Shepherd Stephanie Street Sylvestre Hugh Summers (appointed 9 December 2022) Jean Vianney Cordeiro (appointed 9 December 2022) Christina Webster Susie Wells (retired 22 July 2022)

Kathy Bourne Daniel Evans

Executive Director Artistic Director

Senior Management Team

Janet Bakose Lydia Cassidy Sam Garner-Gibbons Amanda Hart Simon Parsonage Georgina Rae Dale Rooks Joanna Walker

Theatre Manager Director of Marketing & Communications Technical Director Finance & Operations Director (Designate) Finance Director and Company Secretary Head of Planning and Projects Director of LEAP Director of Development

Auditor

Haysmacintyre LLP, 10 Queen Street Place, London EC4R 1AG

Registered Office

Oaklands Park, Chichester, West Sussex PO19 6AP

Company registered number: 4210225 Charity registered number:1088552

OUR CHAIRMAN’S REPORT

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CHICHESTER FESTIVAL THEATRE - 31 MARCH 2023

In my first full year as Chair of the Board, it has been an honour to celebrate Chichester Festival Theatre’s 60[th] anniversary and the first full Festival season on our stages post Covid-19.

The fact that this anniversary coincided with our leading role in Culture Spark 2022 – Chichester’s year-long celebration of its Arts and Culture - proved how central a role CFT plays in our local community for our work on and off stage, artistically, societally and also economically. We are proud to be a theatre founded by and existing to this day for our local community, but proud too of our wider contribution to the creativity and reach of UK theatre and production, which has taken such a battering during the pandemic.

Our priority this year has been to welcome back and rebuild our loyal theatre audiences and to balance our 2022/23 plans financially. In his penultimate season as Artistic Director, Daniel Evans delivered a Festival 22 programme which delighted audiences, pushed boundaries and broadened access whilst delivering the high quality of work on our stages for which CFT is renowned. A series of dynamic digital events marking our 60[th] Anniversary gave audiences across the globe an opportunity to celebrate with us. The benefits of sharing financial risk through co-productions and partnerships in Festival 2022 paid off, and a very strong Winter season of touring work supplemented the reduced Box Office sales that we experienced in a slow start to the year, with audiences taking time to return to the theatre post Covid-19.

Whilst we have secured some financial stability with standstill funded support from Arts Council England and Chichester District Council through to 2026, we cannot be complacent. Post Covid-19, we have benefited from enhanced Theatre Tax Relief - a government concession that has allowed us to continue to invest in productions on our stages - but only for eighteen months. Our success in this year, bolstered by our reserves have given us the confidence to programme an ambitious Festival 23 of our own productions across both our stages, as well as sustain an extensive LEAP (Learning, Education and Participation) programme. As funding for the Arts continues to come under pressure at all levels, we have a vital role to play in ensuring access to creative engagement for children and people of all ages.

As I look ahead to the next five years at Chichester Festival Theatre, together with our Executive Team (Justin Audibert, our new Artistic Director, and Kathy Bourne, Executive Director), I feel excited and confident that our artistic and commercial strengths, underpinned by effective business planning and broader funding will allow us to build on our current success. We will be able to maintain quality and breadth on our stages and continue to connect with our communities through our industry leading outreach programme. Uncertainty may remain in terms of an ongoing recession, cost of living challenges, a less benign environment for the Arts and other as yet unforeseen challenges, and therefore the continued adaptability of CFT will be key.

As a charity, philanthropic support will be more important than ever to allow us to build on the social impact of our LEAP creativity and activities. Donations, sponsorship and specific grant support will allow us to seize many new opportunities. We remain grateful to all of our supporters and our loyal audiences, without whom the breadth of work and the positive impact that it delivers across the community would not be possible.

Mark Foster Chair of the Board

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OUR STRATEGIC TRUSTEES’ REPORT

The Directors (who are also the Trustees of the Charity and are collectively referred to as “the Trustees”) present their Report and Financial Statements of the charity Chichester Festival Theatre and Group (the “Theatre”, the “Company” or “CFT”) for the year ended 31st March 2023. It includes the Strategic Report that as a Charitable Company Chichester Festival Theatre is required to prepare under the Companies Act 2006.

WHO WE ARE AND WHAT WE DO

Chichester Festival Theatre is one of the UK’s leading theatres, renowned for the exceptionally high standard of our productions as well as our work with the community and young people. CFT comprises two venues – the 1,300 seat Festival Theatre and the 310 seat Minerva theatre, noted for premieres of new work alongside intimate revivals. Our Theatre is the leading regional theatre in the South East of England, founded and funded by its community in 1962. We enjoy strong support from our members and other donors, our patrons at the Box Office as well as long-standing partnerships with businesses in our local community.

On-stage, CFT delivers two separate seasons annually: a curated Festival of home-produced work and a Winter Season of received work, alongside a Chichester Festival Youth Theatre (CFYT) Christmas production, watched by 30,000 and streamed to local children’s organisations. The Summer Festival comprises 10-12 productions including plays, musicals and youth theatre productions by world class artists and creative teams. During the Winter season, we present a broad range of visiting work to further diversify the work we offer our audiences.

Whilst our productions have a reputation for artistic excellence and challenge, our business model is leveraged to support both ambitious and innovative work on-stage, which requires investment, and to fund our vital off-stage community activities and support for young people, local groups and schools – only achieved through a strong contribution at the Box Office, essential subsidies from Arts Council England (ACE) and Chichester District Council (CDC) and the generous support of private supporters and corporate sponsors.

It is the dynamic model of balancing earned and donated income against our expenditure that allows us to fund and foster a life-long connection to the arts in our community, to open up our spaces and activities to new audiences and participants, as well as to increase our investment and engagement with under-represented groups and young people, who have been so affected by cuts to the arts in our schools and colleges, and by the continuing impact of the Covid-19 pandemic.

Our aim is to widen the reach of our work and deliver Public Benefit by increasing our investment in our LEAP (Learning Education and Participation), community and accessibility programmes, and underpin this with a commitment to environmental sustainability and supporting equality, diversity and inclusivity in all that we do. Put simply, with greater overall income from performances and donations, we can increase the impact of our work on and off our stages by doing more, and benefiting more people through our widened engagement.

Alongside maximising income, we aim to build back financial resilience in a challenging external environment, as our reserves are fully committed to protecting us from future financial risk and planning for essential capital expenditure, as well as vitally underpinning our ability to programme creatively ambitious work on our stages and to extend our work off-stage for our wider community post the pandemic.

OUR PUBLIC BENEFIT: WHY WE MATTER

Our charitable objects are embodied in our guiding Purpose to create inspiring experiences that bring people together – on and off the stage; and a Vision that whilst we light a spark in everyone who experiences our shows, inspiring joy and a deeper understanding of the world around us, we also deliver an industry-leading community participation programme and strive to be a theatre where everyone can find their place and find their voice. Public benefit is delivered:-

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emotional and cultural barriers that prevent theatre being accessible for all. We work with over 1300 people weekly which constitutes 65,000 participations per year and we are continually looking for opportunities to broaden our reach to engage individuals and groups in need of support. Our focus in 2022-23 has been on mental health, wellbeing as well as underrepresented and isolated communities.

2022-23 OVERVIEW

2022-23 continued to be a period of rebuilding and renewal at CFT post the Covid-19 pandemic and the theatre closures of 2020-2021. Under Kathy Bourne, Executive Director and our outgoing Artistic Director, Daniel Evans, much work was completed in 2022-23 to set a direction for the next ten-year phase of CFT for our audiences and supporters in the community and across the wider industry. Justin Audibert joins as Artistic Director from July 2023 and we also welcomed two new co-Chairs of a renewed Youth Advisory Board.

The ongoing impact of Covid-19 on CFT during 2022-23 remained unknown at the start of the year, but our objective was to deliver a full season designed to rebuild audiences, without dumbing-down our programming, and to widen our reach post-Covid. Whilst established theatre supporters were keen to book and return regardless, trends continued towards later booking and a preference for ‘entertainment’ and uplifting drama. Arguably due to the external economic environment and increased cost of living, we saw audiences being more selective in their booking patterns, purchasing tickets for fewer productions and in some cases, less willing to take a risk with booking a lesser-known drama or new commission. Our £10 seats proved particularly popular with many in addition to our £5 Prologue (16-30) tickets, and we further adjusted our ticket bands to encourage bookers.

The extension by the Government of Theatre Tax Relief in 2022-23 provided a vital safety net to many organisations including CFT, allowing us to more than double the tax relief claim on our production costs. This financial recovery undoubtedly allowed us to programme a full Festival 2022 with investment in our own productions, creatives and seasonal staff as well as in the set costs, staging and costumes to deliver the quality required. In addition, Theatre Tax Relief made both touring and co-production investment into our shows more viable which helped inject much-needed recovery into the theatre sector and allowed us to plan and maintain our standards in a challenging external environment.

Our Executive Team focussed on managing budgets tightly and programming a varied season with ‘something for everyone’ and working with subsidised and commercial co-production partners paid off in terms of managing risk, sharing costs yet maintaining the quality of the Festival’s productions. Whilst we faced a challenging start to the year given the inevitable slowness in returning audiences, backed by strongly performing musicals and a popular Winter season, we were proud to achieve our overall Box Office targets in a year of sustained quality on stage that was well received by audiences and critics.

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A new focus on building successful working relationships with UK co-producing partners both helped us share the financial risk of new productions and ensured our work reached as wide an audience as possible by transferring productions to London, across the UK and internationally. In 2022-23 we mounted seven co-productions, and plan to collaborate with digital innovators and continue to work with suitable partners for the foreseeable future.

In support of making our theatre more open and inclusive at every level, we launched a new visual identity in time for Festival 23. In parallel, we worked with external support to articulate a clear Case for Change, placing Equality, Diversity and Inclusion work at the heart of our workplace, recruitment and training, to set the guiding path for CFT’s future ensuring that CFT is accessible and welcoming to all people on and off our stages. Working to support well-being post Covid-19, we have introduced a new Employee Assistance Programme with counselling support available to all CFT staff and visiting creatives as well as a dedicated creative therapist.

We found that in 2022-23, our off-stage LEAP and community work alongside our industry-leading Youth Theatre continued to meet a vital societal need, which has become even more apparent post-pandemic, given the surge in mental health challenges faced by young people and the increasing social isolation and financial pressures experienced by older members of our community. In 2022-23 we did not cut back our community programmes despite cost pressures and rather worked to build new partnerships and fundraise for specific projects so that CFT might use our organisational skills and resources and exploit our position in the community to lead more initiatives and reach more beneficiaries with funded support.

Our leadership role in 2022 Culture Spark, and our Creative County West Sussex Partnership (establishing a Creativity and Wellbeing programme in 12 schools in areas historically unserved by cultural investment) were examples of new areas of community support where we can amplify our LEAP work in line with our charitable objectives with the direct support of our sponsors and donors.

Another focus in 2022-23 was revitalising the Adult Community strand of our work creating drop-in sessions in our foyers for adults who do not want to commit to more regular, longer-term programmes of activity. This supported other investment on-site in 2022-23 to revamp our café and foyer spaces to make them feel more dynamic, welcoming and interactive and to work with our catering partners to improve our on-site offerings and income contribution.

In summary, as our financial section on page 9 details, 2022-23 resulted in a pre-depreciation surplus and a modest overall deficit. This allowed CFT to enter 2023/24 with its reserves largely intact which in turn, allowed us to programme a bold Festival 23 season, with plans to invest in new apprenticeship and artist development programmes and avoid cuts to our broader community programmes and Youth theatre and schools work.

2022-23 WHAT WE DELIVERED: ON-STAGE

FESTIVAL 2022 and WINTER 2022-23

On stage, we celebrated 60 years of landmark theatre with a Festival season of six world premieres, five new plays (including three delayed from 2020), three musicals and seven major co-productions. We welcomed seven new directors to our stages and were delighted that two of our Festival 22 productions, The Unfriend and Crazy for You secured West End transfers, following in the footsteps of South Pacific from Festival 2021 which in 2022 enjoyed a UK tour and London run at Sadlers Wells.

Our Artistic Vision centres on enabling diverse artists to meet diverse audiences in a safe environment where people from all backgrounds and disciplines – and their ideas – can be nurtured and flourish. Our Festival 2022 programme was carefully curated by Daniel Evans to be creatively ambitious, relevant to current and new audiences but to present an innovative season of work to draw audiences back to live theatre.

• The Taxidermist’s Daughter – Festival Theatre

Written by a local author and set in and around Chichester, this had appeal to our immediate Sussex patrons and introduced gothic genre to our audiences.

• Our Generation – Minerva Theatre

A co-production which was subsequently streamed on National Theatre at Home, was a commissioned verbatim production with a cast including 15 young actors, which also targeted young people. This production generated

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the third-highest sales of Prologue tickets of any Minerva production.

A new co-production of the Agatha Christie classic, which subsequently toured to Bath, offered appeal to our core audiences.

This new play entertained sell-out audiences and transferred to the Criterion Theatre for a six week run.

This new play afforded the opportunity to mount a co-production with the Bridge Theatre and to work with Nicholas Hytner.

This was a brand new production and commercial co-partnership designed to delight summer audiences and deliver a long run through the summer months. In addition to transferring to a run in the West End, it also generated the highest ever number of Prologue bookers for a CFT musical.

This recreated an acclaimed 2019 Spiegeltent production, transforming the Minerva Theatre into a pub, piloting an immersive audience experience.

This was a new production of an Alan Ayckbourn celebrated classic staged to fill our large theatre space.

This musical, a co-production, was based on the Enid Blyton books and met our objective of extending our reach

to family audiences from across the region and so was programmed to include the Autumn Half Term week.

Catering to our Christmas audiences, Chichester Festival Youth Theatre presented Alan Bennett’s stage adaptation of Kenneth Grahame’s 1908 story, involving over 60 young actors and creatives on and off our stages.

Our Winter Season allows us to present a programme of work to complement our summer offering. The 2022 programme was extensive and included touring plays, musicals, ballet, concerts, comedy and contemporary music alongside an events and growing CFT Lates programme. We worked to maintain a quality bar on the programming and to provide a range of experiences for our audiences. The Winter Season continued to be a key contributor financially in 2022-23 as well as generating additional secondary income in our café and restaurant outlets, maintaining an all-year presence.

2022-23 WHAT WE DELIVERED: OTHER OBJECTIVES

TO BE CREATIVELY AMBITIOUS, DYNAMIC AND RELEVANT

“Creativity is at the heart of everything we do. We aren’t afraid to push boundaries in pursuit of our vision and to take risks, shaping the future of theatre. We are welcoming, open and inclusive to all, fostering a collaborative and respectful environment.”

In addition to the creative work on our stages:

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TO BE AT THE HEART OF OUR COMMUNITY

“We are rooted in our community, aiming to inspire and delight through our work on and off the stage. We bring people together and encourage everyone to try something new.”

CFT recognises its crucial role post-pandemic in restoring Chichester’s sense of community and place and in supporting mental health and wellbeing. Our goal was to listen to our communities and continue to reach out to those demographics who need support or face barriers to connecting with the arts whether through participation, education or career development. To achieve this, in 2022-23 we:

TO BE AT THE FOREFRONT OF UK THEATRE

Our aim in 2022-23 was to act as advocates for the sector at a national level, promoting the importance of the arts and culture in society, particularly in the wake of the pandemic, as well as championing industry-wide dialogue about making environmental changes through the Green Book happen and developing future models for digital live-streaming and support. To achieve this, we:

TO BE RESILIENT, FINANCIALLY AND ENVIRONMENTALLY SUSTAINABLE

“We support and strengthen sustainability on all fronts: artistic, environmental, organisational and financial.”

Financial and Workforce Resilience

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Environmental Sustainability

Site and Infrastructure Sustainability

OUR FINANCIAL REVIEW

The net Income and Expenditure outcome for the year was a surplus before depreciation of £718,557 with an overall deficit of £398,015 after depreciation (2021-22: £855,366 deficit).

Income

CFT’s income of £17,219,774 is principally earned through Box Office sales (Festival and Winter seasons), Other income (which in 2022-23 included £668,150 from co-productions in addition to Catering and Front of House), public sector grants from Arts Council England (ACE) and Chichester District Council (CDC) and Sponsorship & Fundraising.

Despite greater booking uncertainty and the external cost-of-living crisis, our combined Box Office income for the year ended only £254k short of the last full year Box Office pre-pandemic.

Catering income improved compared to the previous year with drinks and café sales increasing (helped by foyer improvements) but partly offset by a fall in restaurant sales. Front of House sales were also up on previous years, except programmes, which continue to decline in popularity.

Our Fundraising support (Friends’ membership income, Corporate sponsorship, higher value philanthropic donors and Supporters Circles) recovered well although not yet to pre-pandemic levels. At 9% of our annual income (and noting the standstill ACE and other public funding for the next four-year funding cycle as well as cost inflation and reducing Theatre Tax Relief), fundraising income remains vital to our operation. This support directly allows us to leverage and extend the scope and widen access to our LEAP and Community activities and to invest in our future.

Whilst we receive direct income from Youth Theatre subscriptions, community activities and Box Office income from our Youth Theatre Christmas production, this only meets a third of the total annual costs of £1.5m of our LEAP, education and community work. The £1m balance needs to be funded through donations year on year.

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Costs

Overall costs for 2022-23 were controlled and, as far as possible mitigated by having more than half of the Festival season as co-productions either with producers or other theatres.

The impact of the Festival season costs was helped by enhanced Theatre Tax Relief rates (extended to 31 March 2025) and the higher than usual VAT recovery (due to the co-productions and a short tour of Murder on The Orient Express to Theatre Royal Bath), which helped reduce the overall cost of productions.

The temporary increase in Theatre Tax Relief allowed us to recover £2.2m in 2022-23 (£900k in 2021-2022) so providing significant backing for CFT and for the industry, allowing us to return work to our stages and plan and maintain standards in a challenging external environment.

Whilst we continued to contain staffing and headcount costs, general overheads and to a large extent production costs (despite some pressure on set-building and design costs), the one significant cost increase related to the doubling of annual energy costs to £377,715 (£168,177 in 2021-22), despite our investments in energy efficiency during and since our 2014 RENEW capital project.

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Bank and Cash

The level of cash held at the bank at year-end is always boosted by inclusion of the pre-paid Box Office and other income secured in February for the following season. For Festival 2023, this amounted to £3,201,882 out of total cash held of £6,984,204.

The remaining level of cash held reflects the working capital requirements of the theatre together with funds raised for restricted purposes and monies designated by the Trustees for essential projects, emergencies and risk mitigation.

Reserves Policy

CFT’s policy is to maintain sufficient available financial reserves and liquid funds to safeguard our financial position and provide a buffer against both identified and unexpected eventualities, as well as enabling us to address essential capital expenditure and invest in future opportunities that may arise as part of our 5-10 year plan.

Our financial plans and reserves policy take account of the requirement to maintain and increase reserves as the needs and challenges faced by our charity evolve. The pace of change is increasing and our ability to be an organisation that has the governance and resources to be able to adapt, is critical to our survival for our community.

Total Reserves are made up of available Restricted, Designated and Unrestricted Free Reserves together with a Fixed Asset Reserve (equal to the Net Book Value of Fixed Assets).

The Fixed Asset Reserve is a permanent reserve matched to the value of fixed assets, recognising that in the event that cash is required, these assets cannot be readily liquidated. This accounts for 76% of our Total Reserves. A full analysis of Reserves is set out in Note 16.

manent reserve matched to the
ts cannot be readily liquidated.
Note 16.		 value of fixed asse
This accounts for
Funds £5,357,303
Fixed Asset Reserve £16,919,392
Total Reserves £22,276,695
Funds
31st March 2023
Unrestricted Free Reserves A £ 736,219
 £6,000,000
Designated Funds for Key Risks £5,000,000
Ticket Income Reserve
Theatre Tax Relief Reserve		 £
£		 2,000,000

900,000
 £4,000,000
Sub-Total Designated Fundsfor Key Risks B £ 2,900,000
 £3,000,000
Designated funds for Expenditure
Investments in post-Chichester Productions		 £ 169,435
 £1,000,000
£2,000,000
Third Space fund £ 500,000
Future Deliverables fund £ 284,897
 £-
Buildings and Dilapidation fund £ 250,000
 March 2023
Sub-Total Funds Designatedfor Expenditure C £ 1,204,332
 A. Unrestricted Free Funds
TOTAL Designated Funds D(B+C) £ 4,104,333
 B. Designated Funds for Key Risks &
Uncommitted Expenditure
TOTAL Restricted Funds E £ 516,751
 C. Committed Expenditure + Restoration
Levy Fund
TOTAL Funds (A+D+E) £ 5,357,303
 D. Restricted Funds
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Unrestricted ‘Free’ Reserves

Unrestricted reserves are the only funds that are freely available to cover operational and overhead costs in the event of closure or significantly reduced activity (and loss of associated income arising) from unknown risks that are unforeseen despite our active risk management and monitoring. In addition to the funds designated by the Trustees for Key Risks of Box Office and Theatre Tax Relief (below), there is £736,219 of free reserves, equating broadly to one month’s operating costs of overheads and production staffing wages. These free reserves, together with the designated funds for key risks, are within the Trustees’ target of holding between three and six months of such costs. The intention is to build up free reserves over time whilst continuing to deliver on our charitable objectives.

Designated Funds for Key Risks

Designated funds also allow us to cover areas of risk or priority for the charity and currently include a Box Office reserve provision of £2m, necessarily earmarked to offset significant underperformance of expected Box Office or the cancellation of both an entire production or multiple performances during a production’s run. They also include a reserve provision of £900,000 to allow for a smooth transition back to the standard rates of Theatre Tax Relief after 2024/25.

Designated Funds for Expenditure

Funds designated for expenditure are earmarked by the Trustees to be spent over the next few years on delivering specific projects. These include:

Restricted Funds

The remaining ‘restricted’ reserves of £516,752 relate to monies given for specific restricted purposes, including named LEAP work, campaigns and community and artistic projects (see note 16).

Future Funds Policy

The Trustees have previously identified that significant work and expenditure will be required on the Minerva Theatre in the next few years, which our reserves could not meet. However, we are clear that the immediate years ahead are not the time to launch a major capital fundraising project given the external economic environment and our ongoing focus on reopening our theatres and encouraging audiences to return.

It is the Trustees’ intention to build up the Buildings and Dilapidations reserve (currently £250,000) to meet the costs of significant repairs and other essential dilapidation works on site (such as ongoing concrete repair works on the Festival Theatre or to the fabric of the Minerva Theatre).

A research and feasibility study was carried out in 2022/23 to assess a potential capital project on the Minerva Theatre and the rest of the site. This helped us to ascertain areas requiring immediate attention (to be funded

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from Capital Expenditure in 2023-24) which will push out the requirement for a major Minerva site renewal, which remains our longer term ambition.

Principal Financial Risks

CFT’s operations expose us to a variety of financial risks and challenges. We have in place an ongoing internal risk management programme with agreed management actions, reviewed by the Board at every Board meeting. This identifies areas of risk and implements controls and procedures to limit our exposure in organisational, financial or reputational terms.

Risk Mitigation Actions
Box Office Risk
Reduced Box Office affected by Programming,
Audience Behaviour and External Economic Factors
Reduced Box Office sales have numerous adverse
effects with proportionate reductions in secondary
income (such as Catering and Front of House sales)
and less obvious consequences including an impact
on future sales and reputational damage.		 Our Box Office is closely monitored with scenario
planning to accommodate lower audience numbers
or Box Office sales. We have interrogated our data to
set realistic Box Office targets for 2023-24 that we
believe should be achievable, although we will
continue to monitor these carefully.
We have refocussed our artistic programme to be
more flexible with some lower cost productions, as
well as working with co-producers to share costs and
diversify risk.
We continue to work hard on future programming
and increased marketing, working with a third party
partner in 2023-24, to plan work that will prove
popular with a range of audiences, and to encourage
theatregoers to return and regain the habit of
enjoying live theatre once again.
We will delay any commitment to large capital
investments or projects bearing high costs e.g. on the
Minerva Theatre until we have greater confidence
that sufficient audience numbers will return, and a
better understanding of the long term habits of
theatre-going post Covid-19.
Loss of Funding
CFT is dependent on annual funding from both ACE
and CDC totalling almost £2 million p.a. to support its
programming, innovation and community outreach.
Whilst 2022-26 standstill funding was secured,
incremental costs as a result of higher inflation need
to be covered.		 We monitor our financial situation closely and will be
looking to maximise how other income can be
generated (through catering, front of house,
merchandising) to bridge this gap alongside close
costs management.
External Economic, Political Uncertainties
Consumer confidence and disposable income
weakens as a result of the economic climate, rising
inflation and energy costs, increased UK interest
rates in response to higher prices.		 CFT is prepared to take a conservative and dynamic
management approach to costs and to anticipate
trends and changing market conditions. Specifically,
this means managing our costs to match our income,
considering our programming of popular and
commercial titles, and managing ticket prices whilst
retaining and promoting affordable seats to our
audiences.

Loss of Funding

CFT is dependent on annual funding from both ACE and CDC totalling almost £2 million p.a. to support its programming, innovation and community outreach. Whilst 2022-26 standstill funding was secured, incremental costs as a result of higher inflation need to be covered.

We monitor our financial situation closely and will be looking to maximise how other income can be generated (through catering, front of house, merchandising) to bridge this gap alongside close costs management.

External Economic, Political Uncertainties

Consumer confidence and disposable income weakens as a result of the economic climate, rising inflation and energy costs, increased UK interest rates in response to higher prices.

CFT is prepared to take a conservative and dynamic management approach to costs and to anticipate trends and changing market conditions. Specifically, this means managing our costs to match our income, considering our programming of popular and commercial titles, and managing ticket prices whilst retaining and promoting affordable seats to our audiences.

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Treasury Management Strategy

The Treasury Management Strategy for CFT covering both investments and borrowing is approved each financial year by our Finance and Audit Committee. The Trustees stipulate that funds are invested prudently and, as a priority, have regard to the security and liquidity of the CFT’s investments rather than seeking the highest rate of return.

Going Concern

The Trustees believe that the organisation is well placed to manage its business risks successfully and have a reasonable expectation that the Group has adequate resources and cash to continue in operational existence for the foreseeable future.

The Trustees have previously flagged the potential significant long term capital requirements for the coming years, in particular the costs of a Minerva Theatre renewal, and the fact that our reserves, whilst strong, are largely restricted and designated and, because they are tied up in property and other assets, not fully covered by liquid funds.

The Going Concern accounting policy is outlined in detail in schedule 1(xvi) of the notes to the accounts.

OUR STRATEGIC PRIORITIES FOR 2023-24: WHAT WE PLAN TO DO?

Our strategic objectives and business planning for 2023-24 works to deliver on the following:-

1 Creative Ambition:

Make creatively ambitious, exceptional theatre experiences that inspire and resonate with current and new audiences, deepening the understanding of the world around us.

2 Positive Social Impact:

Transform lives through socially impactful creative activities, accessible to all ages and reaching new and diverse communities.

Sit at the heart of the community; inclusive, accessible and welcoming to all people.

Shape the future of theatre; sector leading, investing in the creative workforce and innovative practice.

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5 Resilience, Inclusivity, Sustainability and Growth:

Be a dynamic, enabling, supportive and progressive business, underpinned by inclusivity, sustainability and growth.

OUR STRUCTURE, GOVERNANCE AND MANAGEMENT

Chichester Festival Theatre is a company limited by guarantee and is a registered charity. The business of the Theatre commenced in 1961 and the current Company commenced its operations in 2001.

OUR BOARD OF DIRECTORS AND THE ROLE OF OUR EXECUTIVE TEAM

The Directors of the Company are also the Trustees of CFT for the purpose of charity law up to a maximum of twenty. Our Trustees are the only members of the Company, are non-executive and unpaid.

New Trustees receive a full induction to the organisation. Time is spent on site at CFT with our Executive Team and Senior Management Team and touring the premises. Trustee training and briefing is delivered as required on new governance matters or regulations.

In 2022-23 the size of the Board fluctuated between twelve and sixteen Trustees including two Trustees with responsibility for co-chairing the Youth Advisory Board (YAB) appointed for up to two years). One trustee is appointed by CDC as a condition of its ongoing funding support.

During the year there were six Board meetings (either in person or on Zoom), two additional Board briefing calls and an Awayday. Trustee attendance was high at an average of 89% with no trustee missing more than one meeting.

The Board is involved in major strategic decisions and has ultimate responsibility for the control, conduct and financial stability of the Company and monitoring the Executive Team, neither of whom are Directors under the Companies Act. The Board’s responsibilities extend to monitoring CFT’s charitable objects and the delivery of public benefit and CFT benchmarks itself against the provisions of the Charity Commission Governance Code with an ongoing review in 2023-24.

Whilst retaining overall responsibility, the Board delegates to the Executive Director and Artistic Director the detailed management and artistic control of the Theatre. It is their responsibility, principally by selecting and implementing the artistic programme, to further the artistic reputation of our Theatre and to ensure that its management is efficient, effective and run in accordance with good business practice. The Board approves the artistic programme annually through its approval of the budget. The Executive Team attends Board meetings and reports regularly.

The Board appoints the Executive Team and, in line with their relevant contracts, determines amounts due under those contracts annually, with the Remuneration Committee leading on this. The Trustees monitor the performance of the Executive and also review the quality, effectiveness and timeliness of information provided to the Board.

The affairs of the Theatre are also subject to continuous review by ACE and CDC.

Trustees have access to independent professional advice, if necessary, at the Company's expense.

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CHICHESTER FESTIVAL THEATRE - 31 MARCH 2023

Appointment and Terms of Office of Board Members

The process recommending Trustees for appointment is delegated substantially to the Nominations Committee, however the Board reviews the necessary attributes, qualities, experience and local/national representation of the Board’s needs at any time.

Trustees are initially appointed for a three-year term typically with re-election for a second three-year term. Exceptionally, a period of service is three three-year terms with a maximum of 10 years.

Our Board Committees

There are Terms of Reference for various Board Committees in operation from time to time. There were three delegated Board Committees operating during the year: a Finance and Audit Committee, Nominations Committee and Remuneration Committee in addition to an advisory Development Committee that works closely with our Development team.

Finance and Audit Committee

Our Finance and Audit Committee met five times during the year with delegated responsibility for: Financial Management, Audit, Internal Control and Risk Management.

Nominations Committee

Our Nominations Committee reviews the structure, size, diverse composition and balance of the Board and recommends to the Board new appointments and renewals of Trustees.

Remuneration Committee

Our Remuneration Committee determines the framework for the remuneration of the Company’s Artistic and Executive Directors and other senior managers. The committee has full authority to appoint remuneration consultants and to commission or purchase any reports, surveys or information that it deems necessary, within any budgetary restraints imposed by the Board.

Development Advisory Committee

Our Development Advisory Committee acts as an advisory group to the Executive Team and Development department and carries out an important role, working with our supporters to develop and maximise fundraising opportunities for the theatre and our wider community work. Led by a Chair drawn from the Trustees, this committee may include other co-opted members who are not trustees.

EQUALITY AND DIVERSITY

CFT believes that to be relevant to all areas of the community, it should represent and draw talent from all parts of society. It aspires to reflect this in its Board, workforce and its repertoire.

In 2022-23 a designated trustee from the Board continued to act as the Diversity and Inclusion Champion to support work on this agenda as detailed in our objectives, which placed our reported work on the CFT Case for Change at the heart of our strategy for the year.

EMPLOYEE INVOLVEMENT

CFT seeks to engage all employees, and others who work there, in its activities and achievements. There are regular management, company and departmental staff meetings and emailed information notes. Senior managers and the Executive Team meet weekly (depending on operational commitments) and communicate relevant information to their staff.

FUNDRAISING

CFT is committed to ensuring that its fundraising activities are carried out with the upmost integrity and takes account of the Charity Commission Code of Fundraising Practice. CFT is registered with the Fundraising Regulator

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CHICHESTER FESTIVAL THEATRE - 31 MARCH 2023

and works to its standards of charitable fundraising to ensure honesty and transparency with our donors, and that fundraising activities are legal, respectful, open, honest and accountable to the public.

The Board has adopted a Donation Acceptance Policy to be followed by the Development department. This policy sets out the due diligence and criteria that the Trustees or CFT should consider when accepting or refusing potential donations, partnerships and sponsorship from individuals, charitable trusts, foundations and corporate entities. The policy also provides for an annual review of donors and sponsorship levels by the Board.

We manage our own internal complaints process to agreed procedures, and report to the Fundraising Regulator annually. In terms of steps taken to protect vulnerable people and other members of the public (from fundraising behaviour which would be an unreasonable intrusion on a person’s privacy, unreasonably persistent or place undue pressure on a person to give money or other property), we have appropriate internal training, procedures and review processes in place to meet these requirements. During 2023-24, there were no fundraising complaints recorded, as in previous years.

All voluntary fundraising at CFT is carried out by an internally managed Development team, supported by the Development Advisory Committee.

CFT manages its Privacy Policy and data management in in line with the requirements of GDPR as at 25 May 2018.

MONITORING AND EVALUATION

Our business plan and key objectives are actively monitored by the Executive and Senior Management Team and an update including risk management is provided to the Board in the form of a Management Report to all Board meetings in addition to a full annual risk review by the Board and regular reporting to ACE and CDC.

CFT continues to collect information about its current and potential audience, unifying insights and reports across the CRM system, through its ACE-funded Audience Finder, and on our website and social channels, to enable monitoring of audiences and to make positive changes. In addition, we took part in nationwide surveys to gather data on audience views on returning to live cultural events.

A robust complaints and compliments process is in place to monitor audience responses. All complainants receive a response within three working days, duly logged on our Customer Relationship Management system. Regular Family and Access forums are held, collating feedback to inform work, and our LEAP programme is monitored through the ACE Quality Principles Framework. The Senior Management Team benchmark CFT against other theatres and participate actively in reviews within the sector, sharing statistics and best practice.

HEALTH AND SAFETY

CFT has a policy, training and supervision to provide safe and healthy working conditions, equipment and systems of work for all employees. Our Health & Safety policy and record is reviewed annually internally and by the Board, and a short version of the Health & Safety Policy is provided to visiting companies and Company Managers. The Health & Safety Committee meets every fortnight.

We maintain and keep our Emergency Plan and security measures under regular review in the light of national security and local police guidance, reporting to the Board on key changes. Training is carried out for all new Frontof-House and Box Office staff and the Theatre Manager works with the Southeast Counter Terrorism Unit which offers training and advice.

SAFEGUARDING CHILDREN, YOUNG PEOPLE AND VULNERABLE ADULTS

CFT has a Child, Young Person (CYP) & Vulnerable Young Adult Protection Policy complying with regulations around the supervision of children and child:adult ratios. There is a designated Child Protection Officer and Deputy at CFT and a system for DBS update checks and safeguarding awareness for all adults (including chaperones) working with CYP and vulnerable adults. A designated trustee on the Board was appointed as the Safeguarding Trustee and CFT’s Safeguarding policy is reviewed annually by the Board. A presentation was made to the Board in December 2022 with specific trustee awareness training delivered in March 2023.

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CHICHESTER FESTIVAL THEATRE - 31 MARCH 2023

TRUSTEES' TRANSACTIONS

The Board of Trustees operates to a written Code of Conduct and separate formal Conflict of Interests Policy to ensure that the highest standards of transparency are maintained. From time to time, Trustees, or persons connected with them, may enter into transactions with CFT in the normal course of business of both parties. Such transactions are conducted on an arm's length basis, on normal commercial terms and are managed in accordance with the specific provisions of our policies and our Memorandum and Articles of Association. All Trustees and the senior management team are required to make declarations of interest to the Company to assist in identifying conflicts of interest or loyalty, declaring such conflicts at the start of any Board meetings. In addition, an annual update of Trustee and Related Party interests is maintained and reviewed by the Chairman of the Board.

The notes to the Financial Statements give details of donations by Trustees and of the liability insurance taken out on behalf of the Trustees. Trustees are encouraged to attend performances in order to fulfil their duty to assess CFT’s performance and, to this end, receive a maximum of two complimentary tickets for productions originated by CFT.

VOLUNTEERS AND FRIENDS

CFT is very grateful for its community of volunteers who carry out specific voluntary activities, including help with fundraising, archiving and administration duties. Their contribution helps build our sense of community and assists our operational efficiency. Our volunteer team are sincerely thanked for the work they do.

CFT also encourages the public to subscribe to become members of the Friends of the Theatre, in return for which incentives are given to book seats, and to participate in specific events organised for them.

AUDITOR

Haysmacintyre LLP were appointed to continue as the Company’s auditor.

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CHICHESTER FESTIVAL THEATRE - 31 MARCH 2023

TRUSTEES' RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS

Statement of responsibilities of the Trustees of Chichester Festival Theatre in respect of the Trustees’ annual report and the financial statements

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law they have are required to prepare the group and parent company financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charitable company and of the group’s excess of expenditure over income for that period. In preparing each of the group and charitable company financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that its financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities.

……………………………………………………. By Order of the Board Mark Foster Chair of the Board of Trustees 14 July 2023

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CHICHESTER FESTIVAL THEATRE - 31 MARCH 2023

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF CHICHESTER FESTIVAL THEATRE

Opinion

We have audited the financial statements of Chichester Festival Theatre for the year ended 31 March 2023 which comprise the Consolidated Income and Expenditure Account, the Consolidated Statement of Financial Activities, The Consolidated and Company Balance Sheets, the Consolidated 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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:

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CHICHESTER FESTIVAL THEATRE - 31 MARCH 2023

• the information given in the Trustees’ Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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 Trustees’ Report (which incorporates the strategic report and the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement , 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.

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the Companies Act 2006 and the Charities Act 2011 and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered other factors such as income tax, payroll tax and sales tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and concluded that the risk was low. Audit procedures performed by the engagement team included:

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CHICHESTER FESTIVAL THEATRE - 31 MARCH 2023

• Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and

• Challenging assumptions and judgements made by management in their critical accounting estimates

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 auditor’s 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. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Weaver Senior Statutory Auditor For and on behalf of Haysmacintyre LLP, Statutory Auditors Date: 2023 25/07/2023

10 Queen Street Place London EC4R 1AG

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CHICHESTER FESTIVAL THEATRE

INCOME AND EXPENDITURE ACCOUNT

(Not forming part of the audited Financial Statements)

FOR THE YEAR ENDED 31 MARCH 2023

Notes
Turnover
Income from Box Office
Income from Learning, Education and Participation (LEAP)
Sponsorship and Fundraising activities
Front-of-house & Hires income
Catering income
Other income
Cost of sales
Productions
Additional aborted costs
Less savings attributable to Theatre Tax relief
Catering
Theatre operation and LEAP costs before depreciation
Project funding for restricted & designated activities
Front-of-house & Hires costs
Fundraising
Administrative expenses
Governance
2
Operating Deficit for the year
Interest receivable on normal trading
Public sector grants receivable
3
Depreciation
Surplus / (deficit) before depreciation
Deficit after interest, public sector grants and depreciation.		 2023
£
9,693,589
232,373
1,424,977
546,820
1,927,361
1,342,534
15,167,654
13,725,642
-
(2,402,399)
1,831,543
2,172,326
253,668
438,759
375,547
16,395,086
106,132
(1,333,564)
92,387
1,959,734
718,557
(1,116,572)
(398,015)		 2022
£
4,097,802
220,002
1,157,641
762,175
1,093,602
117,533
7,448,755
6,458,489
228,309
(579,539)
1,194,181
2,171,288
301,095
384,977
311,409
10,470,209
104,340
(3,125,794)
28,687
3,386,187
289,080
(1,144,446)
(855,366)
Reconciliation to Statement of Financial Activities (SOFA)
Income and Expenditure deficit per above
Net Project funds transferred from reserves
Net CFT investment in productions
Dilapidations provision released
Additional TTR claimed for prior year
Net (expenditure) / income		 (398,015)
(116,665)
(48,768)
100,000
20,271
(443,177)		 (855,366)
(257,139)
-
-
-
(1,112,505)

The purpose of the Income and Expenditure account (I&E) is to show the actual results relating to each year excluding items that, for accounting regulation reasons, have to be shown in the Consolidated Statement of Affairs (SOFA) but are unrelated to the year in question.

Items relating to different years or outside the scope of normal operations are excluded from the I&E and are shown in the reconciliation to the SOFA. The reconciling item in the current year relates to monies held in reserves where the activity was carried out in the current year although the money had been received in a previous period, monies invested in post Chichester Festival Theatre productions, the Dilapidation provision no longer considered relevant and additional TTR claimed relating to a prior year.

23

CHICHESTER FESTIVAL THEATRE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (SOFA)

FOR THE YEAR ENDED 31 MARCH 2023

Notes
INCOME FROM:
Donations and Legacies
Income from Charitable activities
Other Trading activities
Income from Investments
Grants
3
TOTAL
EXPENDITURE ON;
Raising funds
Charitable activities
Ancillary and subsidiary activities
TOTAL
4
NET INCOME / (EXPENDITURE)
TRANSFERS BETWEEN FUNDS
Other gains / (losses)
NET MOVEMENT IN FUNDS
TOTAL RESERVES BROUGHT FORWARD
TOTAL RESERVES CARRIED FORWARD
16		 Unrestricted
Restricted
Total
£
£
£
858,088
374,749
1,232,837
11,343,466
-
11,343,466
2,591,350
-
2,591,350
92,387
-
92,387
1,959,734
-
1,959,734
2023		 Unrestricted
Restricted
Total
£
£
810,440
298,632
1,109,072
4,283,795
-
4,283,795
2,354,520
-
2,354,520
28,687
-
28,687
3,386,187
-
3,386,187
2022
16,845,025
374,749
17,219,774		 10,863,629
298,632
11,162,261
375,547
-
375,547
14,653,734
363,369
15,017,103
2,270,301
-
2,270,301		 311,409
-
311,409
9,972,480
414,183
10,386,663
1,576,694
-
1,576,694
17,299,582
363,369
17,662,951		 11,860,583
414,183
12,274,766
(454,557)
11,380
(443,177)
-
-
-
-
-
-		 (996,954)
(115,551)
(1,112,505)
12,072,210
(12,072,210)
-
-
-
-
(454,557)
11,380
(443,177)
22,214,501
505,374
22,719,875		 11,075,256
(12,187,761)
(1,112,505)
11,139,245
12,693,135
23,832,380
21,759,944
516,754
22,276,698		 22,214,501
505,374
22,719,875

Reserves relating to the Festival Theatre and Steven Pimlott buildings have been restated in the previous year to reflect the change in treatment of these reserves as not to be restricted (as fully expended) and now being treated as part of the Fixed Asset reserve. The Fixed Asset Reserve, although unrestricted, is unavailable as a free reserve, as it is tied to the net book value of Fixed Assets.

Continuing operations

During the year all activities were continuing.

24

CHICHESTER FESTIVAL THEATRE

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
9
Current assets
Stocks
11
Debtors
12
Cash at bank and in hand
13
Creditors: amounts falling due within one year
14
Net current assets
Total assets less current liabilities
Provisions for liabilities
15
Net assets
RESERVES
General unrestricted funds
16
Designated funds
16
Fixed asset funds
16
Total Unrestricted
Restricted
16
Total group funds		 2023
£
£
16,919,392
1,172
3,304,674
6,984,204
10,290,050
(4,932,744)
5,357,306
22,276,698
-
22,276,698
736,219
4,104,333
16,919,392
21,759,944
516,754
22,276,698		 2022
£
£
17,755,018
555
1,809,525
8,257,287
10,067,367
(5,002,510)
5,064,857
22,819,875
(100,000)
22,719,875
359,082
4,100,401
17,755,018
22,214,501
505,374
22,719,875		 2022
£
£
17,755,018
555
1,809,525
8,257,287
10,067,367
(5,002,510)
5,064,857
22,819,875
(100,000)
22,719,875
359,082
4,100,401
17,755,018
22,214,501
505,374
22,719,875
22,819,875
(100,000)
22,719,875
359,082
4,100,401
17,755,018
22,214,501
505,374
22,719,875

These financial statements were approved and authorised for use by the Board of Trustees on 14 July 2023 and are signed on its behalf by:

Mark Foster Trustee

Company number: 4210225 Charity number: 1088552

25

CHICHESTER FESTIVAL THEATRE

COMPANY BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
9
Investments
10
Current assets
Stocks
11
Debtors
12
Cash at bank and in hand
13
Creditors: amounts falling due within one year
14
Net current assets
Total assets less current liabilities
Provisions for liabilities
15
Net assets
RESERVES
General unrestricted funds
16
Designated funds
16
Fixed asset funds
16
Total Unrestricted
Restricted
16
Total charity funds		 £
1,172
3,435,984
6,848,244

The parent charity had a deficit for the year of £443,177 (2021/22 deficit £1,112,505).

These financial statements were approved and authorised for use by the Board of Trustees on 14 July 2023 and are signed on its behalf by:

Mark Foster Trustee

Company number: 4210225 Charity number: 1088552

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CHICHESTER FESTIVAL THEATRE

CONSOLIDATED CASH FLOW STATEMENT

AS AT 31 MARCH 2023

Notes
Reconciliation of net incoming resources to net cash
inflow from operating activities
Cash flows from operating activities
Deficit for the year
Adjustments for:
Depreciation, amortisation and impairment
Interest receivable and similar income
(Increase) / decrease in trade and other debtors
Decrease in stocks
Increase / (decrease) in trade and other creditors
Net cash from operating activities
Cash flows from investing activities
Interest received
Acquisition of tangible fixed assets
19
Net cash from investing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March		 2023
£
(443,177)
1,116,572
(92,387)		 2022
£
(1,112,505)
1,144,446
(28,687)
581,008
(1,495,149)
(617)
(169,766)		 3,254
(1,007,957)
162
1,635,583
(1,084,524) 631,042
92,387
(280,946)		 28,687
(168,912)
(188,559) (140,225)
(1,273,083)
8,257,287		 490,817
7,766,470
6,984,204 8,257,287

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CHICHESTER FESTIVAL THEATRE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

The group financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (Charities SORP (FRS 102)) and the Financial Reporting Standard 102 applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair’ view. This departure has involved following the Charities SORP (FRS 102) effective 1 January 2019 rather than the preceding Charities SORP (SORP 2005) which was effective from 1 April 2005 and has since been withdrawn.

ii Basis of consolidation

These financial statements consolidate the financial statements of Chichester Festival Theatre ("Company") and its subsidiary undertakings CFT Enterprises Limited and CFT Productions Limited (together making up the "Group") made up to 31 March.

In accordance with Section 408 of the Companies Act 2006, Chichester Festival Theatre is exempt from the requirement to present its own income and expenditure account.

iii Income from charitable activities

Income from charitable activities is stated net of VAT and comprises Box Office income, Other income and Learning, Education & Participation receipts. Income is recognised when probability of receipt, measurement and entitlement have been achieved. Turnover relating to productions which open after the year end is carried forward as advance ticket sales. -

iv Activities for generating funds

Income relating to activities for generating funds are stated net of VAT and comprise front-of-house trading, programme sales, catering, fundraising and sponsorship.

Grant and sponsorship income is accounted for on a receivable basis. If it relates to a future period it is deferred. Friends' subscriptions are accounted for on a received basis.

v Production costs

Costs comprise materials, labour, production overheads, rehearsal salaries and fees to freelance artists.

Fees and physical production costs relating to productions which open before the end of the year are expensed in full for the year. Costs relating to productions which open after the year end are carried forward.

vi Donations

Donations and gifts-in-kind are accounted for when received based on the estimated value of the donation to the charity.

vii Basis of allocation of expenditure

Certain expenditure is directly attributable to specific activities and has been included in those cost categories. Certain other costs which are attributable to more than one activity are apportioned across cost categories on the basis of an estimate of the proportion of time spent byvii staff on those activities. Governance costs relate to the administration of the Company and include legal fees relating to the Company, audit fees and related costs.

viii Fixed assets and depreciation

Fixed assets are stated at cost less depreciation. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Freehold Buildings 2% per annum
Leasehold Buildings over the residual period of the lease on buildings and 5% per annum on integrated plant,
fittings and hard landscaping.
Plant and equipment comprising:
Minerva auditorium seating 10% per annum
Theatre equipment 25% per annum
Plant, Furniture, fittings and office equipment 10% to 33% per annum
Motor vehicles 25% per annum

Impairment reviews are undertaken annually during the spring shutdown period. Any fixed assets that are identified as impaired during this process are repaired or replaced or decommissioned and written off fixed assets as appropriate.

ix Stocks

Stocks are valued at the lower of cost and net realisable value after taking into account obsolete and slow moving items.

x Leasing and hire purchase commitments

Assets held under finance leases and hire purchase contracts, where substantially all the risks and rewards of ownership of the asset have passed to the Company, are capitalised in the balance sheet and depreciated over their useful lives. The interest element of the repayments is charged against income over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.

Rentals paid under operating leases are charged to income on a straight line basis over the lease term.

xi Taxation

Chichester Festival Theatre is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and, therefore, it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. The subsidiary company CFT Productions Limited claims Theatre Tax Relief in respect of its productions, the benefit of which is recorded in the SOFA. Being culturally exempt the charity can only reclaim a portion of its Value Added Tax.

28

CHICHESTER FESTIVAL THEATRE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies (continued)
xii Interest
Interest is accounted for when it is receivable or payable.
xiii Pensions
The Company operates two defined contribution pension schemes one with Aviva and one with NEST. The Company makes contributions to the NEST scheme at
5% and to the Aviva scheme at rates between 5% and 10%.
The Company contributes to certain personal pension plans on behalf of key employees.
xiv Fund accounting
Funds held by the charity, which exclude the Fixed Assets, are:
Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the Board.
Designated funds- these are funds set aside by the Board out of unrestricted general funds for specific risks or purposes.
Restricted funds- these are funds that can only be used for particular restricted purposes within the objects of the Company. The restrictions are imposed by
the donor or by the stated purpose of fundraising. Details of the specific funds are included in note 16.
Transfers Between Funds from or to designated funds are determined by the Trustees based on the needs of the charity as detailed in note 16.
xv Dilapidations
Dilapidations provisions are to account for expenditure necessary to ensure leased assets are returned in accordance with the terms of the lease contract.
xvi Going concern
The group’s activities and future plans are set out in the Trustees’ report.

The group manages its activities with positive unrestricted cash balances. The group’s forecasts and projections, taking account of reasonably foreseeable changes in income and expenditure, show that the group should be able to continue to operate on this basis for the foreseeable future. Grant funding represents a significant income stream and is committed by Arts Council England until March 2026. The Trustees review and manage short-term fluctuations in the Group’s other income streams: Box Office, Commercial and Development income.

The Company also relies on support from other funders, including individuals, trusts, foundations and corporate bodies, for maintaining the high standards and diversity of its output. Based on the above, the Trustees believe that the Group is well-placed to manage its business risks successfully, despite the current uncertain economic outlook. The Trustees have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the annual financial statements. The Trustees have not identified any material uncertainties.

xvii Government and other grants receivable

Revenue grants are credited to income in the period to which they relate.

Capital grants are accounted for within restricted funds. Accordingly, these are reduced annually by the depreciation arising on the tangible fixed assets acquired with the grant. Capital grants are recognised at the point the charity has the unconditional right to the income. xviii Foreign currency

Transactions in foreign currencies are translated at the exchange rate ruling at the transaction date. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. All differences are recognised in the Statement of Financial Activities.

xix Investments

The investment in the subsidiaries is recorded at cost.

xx Legacy income

Residuary and Pecuniary legacy income is recognised when the charity receives the legacy and is treated as income.

xx1 Areas of Key Accounting Judgement and Estimate

Included within Other Creditors is an estimated liability for VAT that, based on a normal year's trading activity, will become payable over the next 3 years as a result of the annual capital goods scheme adjustments that will be required each year.

Included within the Group's Other debtors / Amounts owed by subsidiary undertakings is an estimate of the Theatre Tax Credit that will be due from HMRC based on the qualifying expenditure incurred in the year.

29

CHICHESTER FESTIVAL THEATRE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2
Operating surplus and net income
These are stated after charging:
Depreciation of fixed assets
Operating lease rentals - plant and machinery
Auditor's remuneration for audit of these financial statements
Amounts receivable by the auditor and its associates in respect of:
Audit of the financial statements of subsidiaries pursuant to legislation
Governance costs comprise:
Constitutional and statutory costs
Governance costs
3
Public sector grants
Regular Funding
Arts Council England South East - Revenue grant
Chichester District Council
Other
Job Retention scheme
Cultural Recovery Fund
Additional CDC support
4
Analysis of total expenditure
Year ended 31 March 2023
Cost of generating funds
Development costs
Commercial and trading activities of subsidiary
Front-of-house trading
Charitable expenditure:
Productions
Theatre operations and Learning, Education &
Participation
Marketing
Support costs
Governance		 2023
2022
£
£
1,116,572
1,144,446
3,841
4,280
25,850
21,600
3,250
3,250
£
£
11,024
14,943
95,108
89,397
106,132
104,340
2023
2022
£
£
1,772,234
1,772,234
187,500
187,500
1,959,734
1,959,734
-
100,928
-
1,301,525
-
24,000
1,959,734
3,386,187
Support
2023
Staff costs
Other costs
Depreciation
costs
Total
£
£
£
£
£
226,087
114,339
-
35,121
375,547
-
1,660,258
-
171,284
1,831,542
168,444
229,283
-
41,032
438,759
-
2,203,692
6,874,051
-
2,273,997
11,351,740
671,010
1,464,072
1,116,573
307,576
3,559,231
626,324
714,085
-
(1,340,409)
-
926,020
572,506
-
(1,498,526)
-
95,107
1,100
-
9,925
106,132		 2023
2022
£
£
1,116,572
1,144,446
3,841
4,280
25,850
21,600
3,250
3,250
£
£
11,024
14,943
95,108
89,397
106,132
104,340
2023
2022
£
£
1,772,234
1,772,234
187,500
187,500
1,959,734
1,959,734
-
100,928
-
1,301,525
-
24,000
1,959,734
3,386,187
4,916,684
11,629,694
1,116,573
-
17,662,951

Staff costs include employed and self employed staff, travel, subsistence, and other staff related costs. Support costs have been allocated to their appropriate income-generating headings for both years as follows:

Support costs allocation (including marketing)

Support costs allocation (including marketing)
Cost of generating funds
Development costs
Commercial and trading activities of subsidiary
Front-of-house trading
Charitable expenditure:
Productions
Theatre operations and Learning, Education & Participation
Governance
Finance and Administration costs have been allocated proportionately to
Year ended 31 March 2022
Cost of generating funds
Development costs
Commercial and trading activities of subsidiary
Front-of-house trading
Charitable expenditure:
Productions
Theatre operations and Learning, Education &
Participation
Marketing
Support costs
Governance		 Finance and
2023
Administration
Marketing
Total
£
£
£
35,121
-
35,121
171,284
-
171,284
41,032
-
41,032
933,588
1,340,409
2,273,997
307,576
-
307,576
9,925
-
9,925
1,498,526
1,340,409
2,838,935
expenditure. Marketing costs have been allocated in full to productions.
2,022
Staff costs
Other costs
Depreciation
costs
Total
£
£
£
£
£
196,320
78,170
-
36,919
311,409
-
1,050,141
-
141,576
1,191,717
152,520
186,816
-
45,641
384,977
-
1,426,728
3,208,758
-
1,772,869
6,408,355
654,821
1,681,603
1,144,446
393,098
3,873,968
599,406
549,984
-
(1,149,390)
-
801,577
451,506
-
(1,253,083)
-
89,397
2,573
-
12,370
104,340
3,920,769
7,209,551
1,144,446
-
12,274,766		 Finance and
2023
Administration
Marketing
Total
£
£
£
35,121
-
35,121
171,284
-
171,284
41,032
-
41,032
933,588
1,340,409
2,273,997
307,576
-
307,576
9,925
-
9,925
1,498,526
1,340,409
2,838,935

30

CHICHESTER FESTIVAL THEATRE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

4 Analysis of total expenditure (continued)

Staff costs include employed and self employed staff, travel, subsistence, and other staff related costs.

Support costs have been allocated to their appropriate income-generating headings for both years as follows:

Support costs allocation (including marketing)
Cost of generating funds
Development costs
Commercial and trading activities of subsidiary
Front-of-house trading
Charitable expenditure:
Productions
Theatre operations and Learning, Education & Participation
Governance		 Finance and
2022
Administration
Marketing
Total
£
£
£
36,919
-
36,919
141,576
-
141,576
45,641
-
45,641
623,479
1,149,390
1,772,869
393,098
-
393,098
12,370
-
12,370
-
-
1,253,083
1,149,390
2,402,473

Finance and Administration costs have been allocated proportionately to expenditure. Marketing costs have been allocated in full to productions.

5 Subsidiary undertakings - commercial and trading activities

A summary of the results and closing balances of the subsidiary, CFT Enterprises Limited, is shown below.

A summary of the results and closing balances of the subsidiary, CFT Enterprises Limited, is shown below.
Turnover
Cost of Sales
Other Income
Other Costs
Administrative costs
Interest receivable
Qualifying charitable donation to Chichester Festival Theatre
Tax credit on gift aid distribution
Retained
Current assets
Current liabilities
Net (liabilities) / assets
Share capital and reserves
A summary of the results and closing balances of the subsidiary, CFT Productions Limited, is shown below.
Turnover
Cost of sales
Theatre Tax Relief
Current assets
Current liabilities
Net assets
Share capital and reserves
Staff costs
Wages and salaries
Severance payments
Social security costs
Pension costs
The main activity of this subsidiary is providing subcontracted services to produce, run and close productions.		 2023
2022
£
£
1,925,065
1,093,560
(1,652,168)
(1,007,300)
1,374
42
(100,000)
(50,000)
(175,193)
(2,844)
923
-
1
33,458
(1)
(38,748)
0
7,750
-
2,460
£
£
146,461
103,393
(146,460)
(103,392)
1
1
1
1
2023
2022
£
£
7,353,301
3,992,414
(9,687,872)
(4,571,953)
2,334,571
579,539
-
-
£
£
2,334,571
579,652
(2,334,570)
(579,651)
1
1
1
1
2023
2022
£
£
3,948,136
3,319,692
2,575
-
357,649
288,953
155,254
138,156
4,463,614
3,746,801

31

CHICHESTER FESTIVAL THEATRE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

6
Staff costs (continued)
Average number of employees during the year
Permanent staff
Seasonal staff		 2023
2022
Number
Number
83
81
85
66
168
147

The number of employees whose emoluments as defined for taxation purposes excluding pension contribution amounted to £60,000 or more on an annualised basis was as follows:

£60,000 to £70,000
£70,000 to £80,000
£110,000 to £120,000
£120,000 to £130,000		 2023
2022
No.
No.
4
4
1
1
1
2
1
-
7
7

The pension contributions during the year for the above employees were £55,299 (2022: £53,913).

Total pension costs paid into defined pension schemes for all employees were £173,472 (2022: £156,531). Pension payments outstanding at 31 March 2023 amounted to £26,640 (2022: £21,204).

Total remuneration paid to key management personnel (defined as Executive and Senior Managers) amounted to £702,789 (2022: £682,349).

7 Payments to and donations from Trustees

No Trustee received remuneration or reimbursement of expenses during the period. The Company provides Directors' and Officers' liability insurance. The cost of this was £2,807 (2022: £2,807).

Donations from Trustees totalling £22,363 were received during the year (2022: £1,002).

8 Operating Leases

At the end of the year, the Company had one commitment under a non-cancellable operating leases. The value of outstanding payments totals £16,133 + value added tax (VAT). Of this £3,796 + VAT is due within 1 year of the balance sheet date. The remaining balance will be due within 5 years.

9 Tangible fixed assets - Group and Company

Cost
At 31 March 2022
Additions
Disposals
At 31 March 2023
Depreciation
At 31 March 2022
Charge for the year
On disposals
At 31 March 2023
Net book value
At 31 March 2022
At 31 March 2023		 Freehold
Plant and
Total
67 Broyle Road
Festival
Minerva
Steven Pimlott
equipment
£
£
£
£
£
£
1,636,500
19,206,732
3,250,568
1,240,311
2,641,258
27,975,369
-
-
-
-
280,946
280,946
-
-
-
-
-
-
Leasehold Property
1,636,500
19,206,732
3,250,568
1,240,311
2,922,204
28,256,315
234,649
6,331,693
1,176,445
332,600
2,144,964
10,220,351
53,544
707,200
139,118
23,888
192,822
1,116,572
-
-
-
-
-
-
288,193
7,038,893
1,315,563
356,488
2,337,786
11,336,923
1,401,851
12,875,039
2,074,123
907,711
496,294
17,755,018
1,348,307
12,167,839
1,935,005
883,823
584,418
16,919,392

Chichester District Council and West Sussex County Council have fixed charges over the leasehold properties which are held on a ninety-nine year lease expiring in 2060. Arts Council England has an amount secured of £510,699 by means of a fixed charge over the Steven Pimlott Building, £12,000,000 by means of a fixed charge over the Festival Theatre and a floating charge over the whole of the Company’s undertakings and all its property and assets. Heritage Lottery Fund has an amount secured of £1,228,900 by means of a fixed charge over the Festival Theatre and a floating charge over the whole of the Company’s undertakings and all its property and assets.

The Freehold property is a dwelling, 67 Broyle Road, an 11 bedroom house converted from a restaurant for the purpose of accommodating visiting creatives working on theatre productions.

32

CHICHESTER FESTIVAL THEATRE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

10 Investments

THE YEAR ENDED 31 MARCH 2023
Investments
Ordinary shares of £1 each:
At beginning of year
Additions
At end of year		 2023
2022
£
£
6
2
Company
£
2
4
6

The investments include the wholly-owned subsidiary undertakings, CFT Enterprises Limited and CFT Productions Limited, which carry out trading activities on behalf of the group. The results of both companies are consolidated in these financial statements. The investment also includes Chichester Culture Spark Limited a company acting on behalf of a consortium of Chichester District Council, Pallant House, The Novium and Chichester Festival Theatre and 3/7 of the shares of The Wellington Mews (Chichester) Management Company Limited a property management company managing the site that includes 67 Broyle Road, a property owned by Chichester Festival Theatre.

CFT Enterprises Limited and CFT Productions Limited are both incorporated in Great Britain and registered in England and Wales. The results of the subsidiaries are set out in note 5.

11 Stocks - Group and Company

11 Stocks - Group and Company
12
13		 Front-of-house items for resale
Debtors
Debtors arising on operations
Amountsowed bysubsidiary undertakings
Other debtors
Prepayments and accrued income
Bank
Cash at bank and in hand		 2023
2022
£
£
1,172
555
2023
2022
2023
2022
£
£
£
£
146,967
237,208
136,354
227,768
-
-
2,476,493
678,211
2,506,509
662,609
171,939
83,070
651,198
909,708
651,198
909,709
Group
Company		 2023
2022
£
£
1,172
555
3,304,674
1,809,525
3,435,984
1,898,758
2023
2022
2023
2022
£
£
£
£
6,984,204
8,257,287
6,848,244
8,163,221
Group
Company

Cash at bank and in hand includes advance ticket sales and other specific reserves.

14 Creditors: amounts falling due within one year

Creditors arising on operations
Other taxes and social security costs
Other creditors
Accruals
Deferred income		 2023
2022
2023
2022
£
£
£
£
228,593
647,977
227,443
645,870
202,262
211,731
202,262
211,731
814,387
811,856
814,387
811,856
485,620
257,789
482,126
255,065
3,201,882
3,073,157
3,201,882
3,073,157
Group
Company
4,932,744
5,002,510
4,928,100
4,997,679

Deferred income arises from advance ticket sales and Development and Learning, Education & Participation income received in advance.

Deferred income brought forward at 1 April 2021
Released during the year
Deferred income arising during the year
Deferred income carried forward at 31 March 2022
Provisions for liabilities - Group and Company
At 1 April 2022
Released in year
At 31 March 2023		 2023
£
3,073,157
(3,049,019)
3,177,744
3,201,882
£
100,000
(100,000)
-

15 Provisions for liabilities - Group and Company

33

CHICHESTER FESTIVAL THEATRE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

16Funds - Group and Company
as at 31 March 2023
Restricted funds
Prologue Ticket scheme
LEAP and Project Funding
Apprentice and training funds
Designated funds
Investments in post-Chichester Productions
Third space fund
Future deliverables fund
Buildings and Dilapidation reserve
Box Office reserve
Theatre Tax Relief reserve
Unrestricted fund
General
Total Funds
Fixed Asset Reserve
Total Reserves		 Balance
1 April 2022
Income
Expenditure
Transfer
Balance
31 March 2023
£
£
£
£
£
19,357
-
-
-
19,357
404,898
348,172
(260,130)
-
492,940
81,119
26,577
(103,239)
-
4,457
505,374
374,749
(363,369)
-
516,754
218,203
-
(50,000)
1,232
169,435
500,000
-
-
-
500,000
262,941
-
(128,043)
150,000
284,898
250,000
-
-
-
250,000
2,000,000
-
-
-
2,000,000
869,257
-
-
30,743
900,000
4,100,401
-
(178,043)
181,975
4,104,333
359,082
16,845,025
(17,121,539)
653,651
736,219
4,964,857
17,219,774
(17,662,951)
835,626
5,357,306
17,755,018
-
-
(835,626)
16,919,392
22,719,875
17,219,774
(17,662,951)
-
22,276,698

Total Reserves

Funds can be used in accordance with the charitable objects of the Company at the discretion of the Board. The Trustees’ aim is to maintain sufficient funds to safeguard the financial viability of the Company. Funds comprise Restricted and Designated funds, details of which are set out below and Unrestricted funds which represent the balance of funds neither restricted nor designated. In recent years, the Company has expanded Designated funds to cover areas of risk or priority for the Company and will continue build up reserves from future surpluses. The Trustees consider the present level of Funds to be adequate to support the Company’s activities going forward and will continue to review and assess the appropriate level in the future.

Restricted funds:

Prologue Ticket scheme - formerly the Arts Council Under 26 grant and Free Ticket schemes being used to support the provision of tickets for those between the ages of 16 and 30. It is envisaged that this will be used within the next 2 years.

LEAP and Project Funding -these are restricted funds raised for specific projects including , Learning Education and Participation (LEAP), Heritage, Playwrights, Creative Leaders of the future, Youth & Community and the Ageless and "Light a Spark" campaigns.

Apprentice and Training funds - relate to the Trainee Technical grant from the Maurice Marshall Estate to support technical trainees working in the theatre and the balance of the funding supplied by Sussex Training Group towards the cost of non graduate apprenticeships.

Designated funds:

Investments in Productions - funds designated to invest in post-Chichester productions. It is anticipated that about £30,000 will be recovered from the £50,000 investment made during the year that will then be added back into the fund for investment in future post-Chichester productions.

The Third Space fund is an allocation of reserves designated by the Trustees to be used for a potential new space with a view to attracting and producing more diverse work aimed at younger audiences. Work has already started on this project and a feasibility study is being commissioned with a view to delivering the third space within the next twelve to eighteen months.

Future Deliverables Fund - a fund set up to invest in developing work on digital technology, inclusivity and diversity and other areas identified for future advancement of the charity. Work in all these areas is ongoing and the current fund is forecast to be used within the next two years

Buildings and dilapidation reserve - funds designated for major repair and refurbishment of the existing theatres and associated buildings. In particular in relation to the ongoing requirement for concrete repairs to the Festival Theatre and for significant investment in the aging Minerva Theatre building.

Box Office reserve - funds earmarked to offset significant failure of Box Office, the financial impact of cancellation of productions or increased costs arising from non insurable events (such as Covid-19).

Reserve for Theatre Tax Relief equates to a typical year's taxation relief and has been designated in order to cover committed production costs in the event that the tax relief is withdrawn or significantly reduced.

Unrestricted fund:

Funds which can be used in accordance with the charitable objects of the Company at the discretion of the Board. The Trustees' aim is to maintain sufficient reserves to safeguard the financial viability of the Company.

Fixed Asset Reserve

The Fixed Asset Reserve are permanent funds matched to the value of fixed assets recognising that, in the event that cash is required, these assets cannot be readily liquidated and their realisable value may be negligible. These are represented by:

The freehold property at 67 Broyle Road used for accommodating creatives and other key personnel when working at the theatre, the leasehold properties on Oaklands Park making up the Chichester Festival Site and the theatre's Plant, equipment, Van, Fixtures and Fittings.

34

CHICHESTER FESTIVAL THEATRE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Funds - Group and Company
Prior year comparison Balance Balance
Year to 31 March 2022 1 April 2021 Income Expenditure Transfer 31 March 2022
£ £ £ £ £
Restricted funds
Prologue Ticket scheme 19,357 - - - 19,357
Project Funding 475,738 267,135 (337,975) - 404,898
Apprentice and training funds 125,830 31,497 (76,208) - 81,119
620,925 298,632 (414,183) - 505,374
Designated funds
Buildings and dilapidation reserve 271,398 - (21,398) - 250,000
Investments in post-Chichester Productions 218,203 - - - 218,203
Box Office Reserve 2,000,000 - - - 2,000,000
Spiegeltent fund 500,000 - - - 500,000
Futures Deliverables Fund 394,164 - (131,223) - 262,941
Theatre Tax Relief Reserve 860,686 - 8,571 - 869,257
4,244,451 - (144,050) - 4,100,401
Unrestricted fund
General 236,452 10,863,629 (11,716,533) 975,534 359,082
Total Funds 5,101,828 11,162,261 (12,274,766) 975,534 4,964,857
Fixed Asset Reserve 18,730,552 - - (975,534) 17,755,018
23,832,380 11,162,261 (12,274,766) - 22,719,875
Analysis of net assets between funds - Company
Unrestricted Restricted 2023 Unrestricted Restricted 2022
Funds Funds Total Funds Funds Total
£ £ £ £ £ £
Fixed assets 16,919,398 - 16,919,398 17,755,020 - 17,755,020
Current assets 9,768,646 516,754 10,285,400 9,557,160 505,374 10,062,534
Current liabilities (4,928,100) - (4,928,100) (4,997,679) - (4,997,679)
Long term liabilities - - - (100,000) - (100,000)
21,759,944 516,754 22,276,698 22,214,501 505,374 22,719,875

17 Analysis of net assets between funds - Company

18 Share capital

The Company has no share capital and is limited by guarantee. In the event of a winding up, each member of the Company is liable to contribute an amount not exceeding £10. At 31 March 2023, the number of members was 12 (2022: 14).

19 Capital expenditure
Capital expenditure 2023 2022
£ £
Payments to acquire tangible fixed assets 280,946 168,912
Analysis of changes in cash
At 1 April 2022 Cash flows At 31 March
2023
£ £ £
Cash at bank and in hand 8,257,287 (1,273,083) 6,984,204

20 Analysis of changes in cash

21 Related parties

Trustees

A number of confidential contributions have been received from Trustees. The Trustees will not derive any benefit as a result of these donations. See note 7 for details.

During the year Stephanie Street (Trustee full name Sonalini Stephanie Street Sylvestre) received £2,350 a part fee for a potential new play that has been commissioned and Jean Vianney Cordeiro received £485 in expenses incurred in his role as Trustee.

There were no other related party transactions in the current or previous period.

Transactions with key personnel

There were no transactions other than salaries with any key personnel.

35

CHICHESTER FESTIVAL THEATRE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Transactions with subsidiary companies

CFT Enterprises Limited (CFTE) is the commercial trading subsidiary of CFT. During the year CFT charged CFTE £100,000 (2022: £50,000) in administrative fees to cover the cost of directing and managing the operation and for the use of CFT buildings and equipment. At the year end CFTE gave a net qualifying donation of £167,103 (2022: £33,348).

CFT Productions Limited (CFTP) is the producing company for CFT. During the year CFT invoiced CFTP £9,687,872 for the costs associated with the productions contracted to CFTP to carry out this work. CFTP charged CFT £7,353,301 for developing, producing, running and closing those productions.

22 Contingent liabilities

At 31 March 2023 the Company had no contingent liabilities (2022: £nil).

23 Capital commitments

The Company has capital commitments contracted and authorised at 31 March 2023 amounting to £nil (2022: £nil).

24 Parent charity income and results

Parent charity income and results
Parent charity gross income
Parent charity net expenditure / income		 2023
2022
£
£
15,292,413
10,068,659
(443,177)
(1,112,504)

36