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← Stockton Arts Centre

2025-03-31-accounts

Stockton Arts Centre Ltd

Annual Report and Consolidated Financial Statements For the year ended 31 March 2025

Company Number: 04591795 Charity Number: 1095460

Stockton Arts Centre

Contents

Page
Trustees’ report 1 - 12
Independent auditors’ report 13 - 16
Consolidated statement of financial activities 17
Consolidated balance sheet 18
Charitable balance sheet 19
Consolidated cash flow statement 20
Notes to the financial statements 21 - 38

Stockton Arts Centre

Trustees’ report

For the year ended 31 March 2025

The Trustees present their annual report together with the audited financial statements of the Charity for the year ended 31 March 2025. The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Reference and administrative details

Company number: 04591795 (England and Wales) Charity Number: 1095460 Registered office: Dovecot Street, Stockton on Tees, TS18 1LL Advisors Bankers: HSBC, 136 High Street, Stockton on Tees, Cleveland, TS18 1LR Yorkshire Bank, 56 High Street, Stockton on Tees TS18 1SB Auditors: S&W Audit, 17 Queens Lane, Newcastle upon Tyne, NE1 1RN

1. Structure, governance and management

Stockton Arts Centre is a registered charity number 1095460 governed by its memorandum and articles of association and a company limited by guarantee.

2024/2025 was a year of transition with regard to the governance and management of ARC. It was Kate Craddock’s first full year as Chair and with new Chief Executive and Creative Director Alexander Ferris in role.

The number of trustees, who are also the directors for the purpose of company law, reduced to 7 during the year following some planned resignations with individuals completing their tenure. We then recruited 3 new trustees, ending the year with 10 Trustees. The Trustees were:

Board meetings attended
Aaron Bowman (resigned September 2024) 1 out of 2
Kate Craddock 4 out of 4
Maria Crocker 2 out of 4
Arfan Hussain 3 out of 4
Dan Mallaghan 2 out of 4
Carly Mason-McConnell (appointed March 2025) 1 out of 1
John McCann 4 out of 4
Lara Moon (appointed March 2025) 1 out of 1
Sharuna Sagar (resigned 27 August 2025) 1 out of 4
Phil Saunders (appointed March 2025) 1 out of 1
Nina White (mat leave from Oct 24) 2 out of 2

1

Trustees’ report (continued) For the year ended 31 March 2025

Stockton Arts Centre

ARC’s Board of Trustees is responsible for ensuring ARC’s aims and objectives are achieved. It is responsible for forward strategy and direction, approving the annual business plan and budget, and monitoring performance and delivery, supporting the Chief Executive and the ARC team. Board Trustees have a diverse range of skills, experience and backgrounds, bringing a broad range of perspectives to board discussions and decisions.

ARC is committed to continuing to increase the diversity of the Board and advertises widely to identify prospective trustees. The recruitment processes were reviewed and changed in 2021 to support this aim. Following an open call out, suitable candidates were invited to meet the Chair, Chief Executive and other trustees to discuss the opportunity of joining ARC’s Board. Prospective trustees were then invited to observe a Board meeting before a final decision – by both parties – is made.

New trustees have a full induction process and are provided with an extensive package of information relating to the charity including job description, current and historical financial information, minutes of Board meetings, and the current business plan.

The Board of Trustees meets quarterly to administer the charity and formally considers ARC’s mission, aims and objectives at least once a year. Ad hoc working groups or advisory groups are convened from time to time.

The Finance Sub-committee meets three times during the year to discuss in detail the annual budget forecast outturn and annual financial reporting to inform the Board’s considerations and decision-making process. Monthly management accounts are circulated to the nominated Finance sub-committee representatives, who include the Chair of the Board, to ensure prompt review of performance. Terms of Reference were reviewed by the Board in March 2022.

None of the trustees have any beneficial interest in the company. All the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

An executive director is appointed by the Trustees to manage the day-to-day operations of the charity. The Chief Executive and Creative Director is supported by a Deputy, a Strategic Planning Director (who also acts as Company Secretary) and a management team of seven.

2. Objectives and activities

The objects of the Charity are to promote, maintain, improve and advance the knowledge, understanding and appreciation of the arts and popular culture, primarily among the inhabitants of the Tees Valley

To achieve its objects the charity has defined its mission as follows:

ARC is an organisation working from its venue to enhance the wellbeing of the whole community of Stockton and the Tees Valley, through arts and creative activity, through widening opportunities to experience and participate in the arts, and through partnership with other organisations.

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Stockton Arts Centre

Trustees’ report (continued) For the year ended 31 March 2025

To deliver this mission the charity has undertaken to achieve the following aims:

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

During 2024/25, ARC continued to follow our Business Plan 2023 - 2026, which builds on post-COVID recovery plans and was produced in conjunction with the staff, Board and funding partners in response to the current context. It remains focused on delivery of the above mission and aims, setting out a clear route map for the future of the charity as it seeks to return to a positive trading position.

The Business Plan is used by the Management Team to inform and steer activity and monitor progress against the aims and objectives. The Board of Trustees monitors the delivery of the Business Plan at its quarterly meetings.

3. Achievements and performance

During 2024/25, ARC presented 113 professional performances, 35 community performances, 176 film screenings and live broadcasts, as well as delivering more than 974 workshops and classes. Audience figures exceeded 46,000, with c 13,000 attendances at creative arts activities and participation in community co-creation projects.

Live programme

ARC has continued to deliver an exciting and diverse programme of activity, engaging and connecting people to each other and to new ideas.

Theatre, dance and multi-disciplinary work

We continued to support theatre, dance and multi-disciplinary artists to develop new work in partnership with ARC, to strengthen relationships and help us build deeper connections with our communities. We also introduced a new programme of visiting company work, encouraging established companies and artists to bring their work to the people of Stockton.

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Trustees’ report (continued) For the year ended 31 March 2025

Stockton Arts Centre

Examples of work that ARC commissioned and developed includes WASTE by I. Nakhla– a experimental sound journey exploring issues around climate change and our capacity to rely on excess; Queen of the North a new piece from Tommy the Queer Historian, co-created with users and stallholders from Stockton Market; an interactive mixed media performance featuring live gaming from leading digital company BRiGHTBLACK - From Boomer to Bust explored the history of the economy and how it affected Stockton residents from the Boomer and Gen Z generations; and a new cabaret piece called Not Yours from North East writer, performer and director Roisin Crowley Linton that challenged notions of victimhood for people who have experienced sexual violence, featuring a burlesque troupe of women from the Tees Valley in partnership with ARCH Teesside.

ARC’s produced work included a sell out run of Audrey Cook’s new show Bus Stop Goths, a preview performance of Unruly – a new play by Vici Wreford-Sinnott which celebrates activism and was led by a team of disabled women, Our Stomping Ground Festival curated by our resident company of learning disabled artists, Full Circle. We also produced their production of Storiescapes and supported artists Adam and Gillian with a durational performance of Foundations which also included gifting 10 tonnes of bricks to community projects and individuals.

We developed our Make New Work project supported by Paul Hamlyn Foundation and Arts Council England. We built a panel of community leaders from the Tees Valley to select artists to receive seed commissions as well as full commissions to develop new work inspired by provocations from the community.

Our programme of visiting theatre, under the banner of The New Revolutions programme allowed us to present the work of ThickSkin Theatre, Open Clasp, Natalie Bellingham, Tmesis Theatre and Tones: A Hip Hop Opera on a Pay What You Decide basis. All productions were accompanied by post-show discussions and workshops, giving the people of Stockton deeper access to the productions.

Comedy & Music

We presented almost 70 comedy and music events throughout the year, featuring a good mix of established artists and up and coming acts. We improved the gender balance of our comedians visiting ARC, with sets from Sophie Duker, Maisie Adam, Lucy Porter, Harriet Kemsley and local performer Lauren Pattison. In addition to well known acts such as Wishbone Ash, Lindisfarne, Peatbog Faeries and Peter Doherty, we also celebrated a number of local acts such as a sold out gig for Finn Forster and an album launch for Parissa Zarifi. We also collaborated with Ku Promotions on their festival of new music, The Gathering Sounds, which included a music conference event. Though no Stockton Calling fell in this financial year (there were 2 in the last year due to Easter dates) we continued to host regular annual events such as Counterfest, The Funk Collective and Wildcats of Kilkenny Christmas gigs.

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Family

ARC’s family programme presented some of the best companies in the UK, including wrongsemble, Associate Company Kitchen Zoo and Roustabout Theatre, with shows for 3–7-year-olds throughout the year as well as a Christmas show for this age range. We continue to support and co-commission family work in order to ensure we can present work that is relevant to, and reflective of, our local community. We presented two fully accessible productions from Yorkshire based Mind the Gap and Interplay Theatre.

In 2024/25 this included our seventh co-commissioned Christmas show with The Albany in Deptford, The Light Princess by LAS Theatre.

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Stockton Arts Centre

Trustees’ report (continued) For the year ended 31 March 2025

Creative learning

In 2024/2025, we developed a new strategy for our participatory work, which included changing the name of the prorgramme from Creative Learning to Creative Engagement – to reflect a new approach which deepens the connection and relationship with participants and our creative activity. A strong example of this was in Stockton Folk, which combined a team of artists and members of the community to explore ideas around folklore, specifically the myths and legends around the River Tees.

We continue to work with a number of strategic partners to ensure we are reaching children and young people who have the least opportunity to engage in cultural activity. These include relationships with Corner House Youth Project (We Are TS18 – a dance group of young people from deprived backgrounds) and Stockton on Tees Borough Council, around our More Stuff Like This Please! programme of activity for children and young people in care.

ARC’s programme of daytime activity continued to offer a range of regular workshops and classes including creative art, music and dance, supplemented by occasional workshops in activities as varied as needlefelt, glass and calligraphy.

Our Staying Out project for older people either at risk of admission to or recently discharged from hospital came to an end in line with the funding. However, we continued to provide activity, space and events for the Holiday Activities and Food (HAF) programmes, welcoming young people from across the borough to ARC as well as collaborating with Displace Yourself Theatre to deliver Creating Together – a mixed group focused on supporting those with experience of migration.

Community-led programme

ARC’s community-led programme continues to make an important contribution to the overall life of the centre, enabling us to reach a wider cross-section of our local community, helping to realise their creative ambitions. During 2024/25 we supported more than 80 community performances, featuring more than 1,000 people performing and attracting audiences of c12,000.

Other community-led activity included Festival of Light and Colour (Diwali), the Transgender Day of Remembrance and our annual celebration of Refugee Week which is planned and curated by people with lived experience and their supporters.

Cinema

We took the difficult decision to pause our regular cinema programme in January 2025. This was to enable us to concentrate on other areas as well as conduct some research into how to make better us of our cinema.

However, we continued to show a range of live broadcasts and screenings of performances from companies such as the National Theatre which have always been well attended. ARC also hosted the third annual Tees Valley International Film Festival with over 1000 attendees across the 4 days. We also screened titles as part of the UK Green Film Festival and introduced a monthly music documentary film club, We Will Doc You.

We have continued regular screenings of family films, providing opportunities for families to see films together every Saturday morning and during school holidays.

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Stockton Arts Centre

Trustees’ report (continued) For the year ended 31 March 2025

Exhibitions

We use our top floor foyer Gallery space to help reflect our local community, through exhibitions that are either locally curated or feature locally produced artworks. With a more coherent and consistent programme, we have been able to increase visitors as well as host a number of successful preview and launch events. Exhibitions included work created or curated by Full Circle, Juho Hankela, Brian Hutchison, Audrey Cook (to coincide with the production of Bus Stop Goths), Drakes the Bookshop with Lisette Auton and Tilery Primary School, The Northern School of Arts graduates and work for sale as part of Stockton BID’s BIG Art Festival.

We also converted our downstairs cinema foyer into a new gallery to give us the opportunity to share more work by participants in our Creative Engagement programme.

Supporting artists

ARC’s programme of support for performance-based artists continues to make a positive impact and become further integrated within our core-programme, audience development and creative engagement activity. Across 2024/25, ARC supported the development of more than 20 new performances by some of the UK’s most exciting artists, including comedian Joe Kent-Walters (aka Frankie Monroe), Yolanda Mercy, Divija Melally & Saili Katebe, Kate Daley, Josie Dale-Jones (thisegg), Daniel Bye, Bold Mellon and Radikal Queen. We also supported a diverse range of North East based artists Arun Graves-Kochhar, Vici Wreford-Sinnott, Scott Turnbull, Lisette Auton, Bob Beagrie, Toi Guy, Saya Naruse and Roisin Crowley Linton.

ARC’s offered over 2,200 hours of free workspace to artists and our continued rental of a house in Stockton enabled us to offer almost 300 nights of free accommodation to artists across the year.

ARCADE, the performance artist network, consists of c100 active members from across the North of England.

During 2024/25, we continued to deliver Tees Valley New Creatives, a career starting programme of free support to help people completing further and higher education creative courses secure employment in the cultural industries and unlock new opportunities in their fields. We were also successful in leading a consortium of 6 other organisations to bid for and deliver Tees Valley Creates: The Freelancers Network for Tees Valley Combined Authority. This network will offer practical business skills alongside offering opportunities to connect with others, learn about funding, apply for regular microgrants and many other opportunities. Over 200 freelancers attended the launch event.

Partnerships

ARC works both locally and nationally. Partnership working has remained key to ARC’s activity, as we continued to lead on initiatives including Venues North, a network committed to supporting new and emerging artists from the North to get their work more widely seen regionally, nationally and internationally as well as providing a forum for venue programmers to seek advice and support from their peers. Venues North continued to build its paid membership providing a financial contribution towards time and travel costs for artists presenting at the meetings.

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Stockton Arts Centre

Trustees’ report (continued) For the year ended 31 March 2025

ARC’s partnership with Northern School of Art developed further with an increased presence of their end of year performances and exhibitions in our spaces and a continuation of the ARC Award. Tees Women Poets have formalised their relationship with ARC and are now a resident company.

In 2024/2025 we began a new partnership with Taste of Africa NE which has involved members on our commissioning panel, regular conversations about joint programming and an invitation to sit on our steering committee for The Freelancers Network. We continue to explore possible collaborative programming opportunities for the future.

Equality and diversity

ARC is committed to achieving equality and diversity in all aspects of our work and activities. Through our equality policy and action plan, approved by the Board, we have continued to embed diversity throughout our work.

We have built on our experience around disability through the Cultural Shift programme, which officially concluded in March 2018. The programme made a significant long-term impact on the organisation, in terms of our artistic programme, practice, workforce and audiences. Legacy work has continued including support for our resident learningdisabled theatre company, Full Circle, disabled-led club nights and an ongoing commitment to supporting and presenting disabled artists. Vici Wreford-Sinnott, who led our Cultural Shift programme, remains an Associate Artist, supported to make new work at ARC.

We continued to improve access facilities and communication, offering relaxed performances and screenings, BSL interpreted performances, subtitled films and audio description on all film screenings where available.

In 2024/25, we updated and re-published our Anti-Racism plan. Board and staff members attend anti-racism training and continue to be involved in identifying ways we could better educate ourselves, diversify our workforce, continue to ensure our programme is representative and hold ourselves accountable.

We continue to work closely with Curious Arts to shift our practice in relation to those identifying as LGBTQIA+. We have continued to work with Displace Yourself to engage local refugees and asylum seekers through a monthly creative session.

We published our diversity statistics for 2024-25 as part of our commitment to transparency:

Workforce (staff/Board) 2024/25
Disabled 8%
LGBTQIA+ 16%
Global Majority 6%
Working class backgrounds 24%
Artists Support Programme 2024/25
Disabled 36%
LGBTQIA+ 75%
Global Majority 43%
Working class backgrounds 43%

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Stockton Arts Centre

Trustees’ report (continued) For the year ended 31 March 2025

The artists featured in our support programmes are significantly more represented than in our current staff body. We will work to improve our diversity statistics for staff and board in the coming years by reviewing our current policies and procedures.

Strategic development

ARC continues to play an important role in strategic cultural development locally and nationally. Chief Executive Alexander Ferris sits on the Tees Valley Creative Place Advisory Group, which informs the Combined Authority’s strategy and investment plans. In 2024/2025 Alexander was also invited to join Stockton Borough Council’s Business Ambassador’s Steering Group.

Shaun Dowd, Deputy Chief Executive, continued to chair the Board of Stockton BID.

Audiences and participants

More than 46,000 watched live performance and film screenings at ARC in 2024/25, with c13,000 attendances at creative learning activities. Audiences were lower than previous years and our attendances match trends that are seen in other comparative venues.

We have continued to employ our innovative ‘Pay What You Decide’ model, first introduced in 2015, to ensure we are maximising both audiences and income. PWYD has been phenomenally successful, leading to significant increases in audience and income for new work. In the final quarter of 24/25, we saw an increase in our receipts on PWYD, with the average spend per head increasing from around £2.50 to £6.25.

We continue to use our comedy and music programme to maintain our cross-subsidy model, enabling us to support the development of a significant amount of new theatre and dance work. We also increased our booking fee from 50p to £1.50 mid-way through 24/25.

All our marketing and promotion is highly targeted and supported by excellent data capture, fully compliant with GDPR. We continue to develop our marketing and audience development activity, with a drive to entice previous audiences back, post pandemic, increase frequency of attendance and attract new audiences.

We monitor feedback from audiences and artists via post-show talks, both formal/informal; social media; weekly discussions at staff meetings; Arts Council assessments and online surveys. Our annual survey for 2024/25 show 96.3% of customers rated their overall enjoyment as Good or Excellent; 96% rated the quality of the event as Good or Excellent and 92% rated value for money as Good or Excellent.

No 60 – food and drink

ARC wholly owned trading subsidiary company (Stockton Arts Centre (Trading) Ltd) which provides ARC’s catering service under the brand ‘No 60’.

ARC recognises that No 60 makes an important contribution to the way customers perceive the organisation, playing a key part in providing a safe, welcoming place where people enjoy positive, social interaction alongside creative activities and cultural experiences. In addition, No 60 makes a financial contribution, which amounted to £74,281 paid to the parent company at the end of the year, over and above management charges.

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Stockton Arts Centre

Trustees’ report (continued) For the year ended 31 March 2025

Fundraising

ARC’s fundraising activity is led by the Chief Executive, supported by other staff. ARC operates outside of the voluntary fundraising regulator scheme, as the organisation’s fundraising expenditure is well below the limit of £100,000 that requires registration. However, we are aware of the code and ensure that we operate in accordance with it at all times. Our fundraising activity targeting individuals is almost exclusively carried out at the point of ticket sale, minimising the risk of any individual being approached in a persistent or intrusive way.

4. Financial review

ARC’s Statement of Financial Activities show a turnover of £2,032,052 in 2024/25. The overall deficit for the year was £106,564. This deficit was greater than previously budgeted partly due to the change in leadership and a period where no fundraising was undertaken.

Over the last 3 years we have drawn on the designated COVID recovery fund and reserves to support each year’s deficit. 24/25 continued to be a challenging year financially, and in anticipation of a greater than expected end of year deficit, ARC’s executive team introduced a number of cost saving measures that were announced at the end of Q2 and enacted over the remaining quarters. These included:

In order to ensure the financial stability of ARC, we also negotiated an early release of our regular Arts Council Grant before the end of the 24/25 year giving us time to focus on increasing our income, reducing our costs further and begin the process of rebuilding our reserves which had dropped below the target level of £250k.

Financial plans and forecasts have been revised on the basis of expected scenarios going forward and Trustees are satisfied that ARC has adequate resources to continue as a going concern for the coming year.

ARC’s forward plans are focussed on continuing to rebuild our income from all sources, particularly our earned income. We will continue to seek funding from other sources, including charitable trusts and foundations, and invite the public to make donations to support our ongoing charitable activity.

ARC is currently part of Arts Council England’s National Portfolio, and has secured funding for a further two years through to 2026/27. We are agreeing continued funding with Stockton on Tees Borough Council (SBC) on an annual basis, under an ongoing service level agreement. SBC nominate observers to monitor the charitable objectives through attendance at the quarterly Board meetings and the ACE team receive and review all board papers.

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Stockton Arts Centre

Trustees’ report (continued) For the year ended 31 March 2025

Pay and remuneration for staff is approved as part of the annual budget review. The Chief Executive recommends any organisation-wide increase, taking into account current trends and levels of inflation, which is discussed and approved by the Board. The Chief Executive’s pay sits outside of this process and is discussed and approved by the Board following an annual performance review. ARC regularly benchmarks salaries with other UK arts centres which feeds into these processes.

Risk management

The trustees monitor progress against ARC’s Business Plan and have risk management processes in place. There is a comprehensive review of risks annually, as part of the business planning process, with ongoing review at each board meeting. As part of this process, the trustees have further improved the risk management strategy and process, categorising across four areas – governance and management, physical, financial and artistic. The likelihood and possible impact of risks are graded as high, medium or low. Specific action, systems, controls and procedures are in place to mitigate identified risks. There are three risks categorised as high.

The most significant risk was the impact of increasing inflation levels. To mitigate this, monthly monitoring of impact of increasing costs and box office income on budget, with proactive management including quarterly EOY projections, to allow for rescoping of activity and spending as necessary is in place.

Reduced availability of funding from foundations, trusts etc as competition for funds increases has also been flagged as a high risk. Actions in place include setting up a Fundraising tracker that is regularly monitored and updated to ensure reporting and applications deadlines are not missed; maintaining ARC's strong track record of delivery, credibility and profile with grant-awarding bodies; seeking pro-bono support from a Fundraising expert to advise on strategy and support in the development of critical impactful grant applications, based on clear strategy and well-developed outcomes, relevant to current circumstances; and monitoring applications regularly and taking early action to cut expenditure if grants are not secured.

Physical risks include failure of essential plant and equipment. To mitigate this risk ARC has successfully fundraised and invested more than £1m since 2013 in capital improvements, replacements and renewals. Alongside this, a more proactive repairs and maintenance programme is being developed. Capital Fundraising will continue to manage equipment as it deteriorates.

5. Plans for future periods

Despite the challenges posed by COVID-19 and the current economic situation, ARC is positive about its future. The Business Plan for 2023-2026 sets out our longer-term recovery plans as well as ambitions for the future.

We will be using funds designated for COVID recovery as well as our reserves to support deficit budgets in 2023/24 and 2024/25, ensuring that we are able to continue using arts and cultural activity to strengthen our local community, before returning to a break-even trading position in 2025/26. However, uncertainty around inflation makes future projections even more speculative that usual, but our close monitoring and robust financial management will ensure that we continue to react to changes in time to make necessary interventions.

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Stockton Arts Centre

Trustees’ report (continued) For the year ended 31 March 2025

6. Plans for future periods

Objectives - Creative Programme

Objectives - Audiences and Communities

Objectives - Organisation

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Stockton Arts Centre

Trustees’ report (continued)

For the year ended 31 March 2025

Statement of trustees’ responsibilities

The trustees, who are also the directors of Stockton Arts Centre for the purposes of company law, are responsible for preparing the Trustees’ Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Executive Committee to prepare financial statements for each financial year which give a true and fair view of both the charitable company’s and the group’s state of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year.

In preparing these accounts, the trustees are required to:

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

So far as each of the trustees is aware at the time the report is approved:

Auditors

In accordance with the Companies Act 2006 a resolution proposing the appointment of S&W Audit as auditor for the year ending 31 March 2026 will be put to the members.

Approved by the board on 16 December 2025 and signed on their behalf by:

…………………………………………..

K C Craddock Chair

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Stockton Arts Centre

Independent Auditors’ Report to the members of Stockton Arts Centre For the year ended 31 March 2025

Opinion

We have audited the financial statements of Stockton Arts Centre (the ‘charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2025 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, 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:

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 group’s or parent 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.

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Stockton Arts Centre

Independent Auditors’ Report to the members of Stockton Arts Centre (Continued) For the year ended 31 March 2025

Other information

The other information comprises the information included in the trustees report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in 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

As explained more fully in the trustees’ responsibilities statement set out on page 11 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 group’s and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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Stockton Arts Centre

Independent Auditors’ Report to the members of Stockton Arts Centre (Continued) For the year ended 31 March 2025

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the companies Act 2006 and we report in accordance with this Act.

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.

We obtained a general understanding of the company’s legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity’s policies and procedures regarding compliance, and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the company’s industry and regulation.

We understand that the company complies with the framework through:

In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the company’s ability to conduct its business, and where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the company:

We performed the following specific procedures to gain evidence about compliance with the significant laws and regulations identified above:

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Stockton Arts Centre

Independent Auditors’ Report to the members of Stockton Arts Centre (Continued) For the year ended 31 March 2025

The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were:

These areas were communicated to the other members of the engagement team not present at the discussion.

The procedures we carried out to gain evidence in the above areas included:

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 charities trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an 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 charity and the charities trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Craig Henderson (Senior Statutory Auditor) For and on behalf of S&W Audit

……………………………..

Chartered Accountants and Statutory Auditors

17 Queens Lane Newcastle upon Tyne NE1 1RN

16

Stockton Arts Centre

Consolidated Statement of Financial Activities (Including Income and Expenditure Account) For the year ended 31 March 2025

As restated
Unrestricted Designated Restricted
Total
Total
funds
funds		 funds
2025
2024
Notes
£
£		 £
£
£
Income from:
Donations 4 550,072
-		 -
550,072
550,404
Charitable activities 5 530,492
-		 549,767 1,080,259 1,185,570
Other trading activities 6 394,950
-		 -
394,950
386,517
Investments 7 6,771
-		 -
6,771
10,768
_
_		 _ _
_
Total income 1,482,285
-		 549,767 2,032,052 2,133,259
_
_		 _ _
_
Expenditure on:
Raising funds 8 382,970
-		 -
382,970
355,522
Charitable activities 9 1,348,466
-		 407,180 1,755,646 2,086,825
_
_		 _ _
_
Total expenditure 1,731,436
-		 407,180 2,138,616 2,442,347
_
_		 _ _
_
Net expenditure ( 249,151 )
-		 142,587 ( 106,564 ) ( 309,088 )
Transfers 18 109,582
( 109,582 )		 -
-
-
_
_		 _ _
_
Net movement in funds ( 139,569 )
( 109,582 )
142,587 ( 106,564		 ) ( 309,088 )
Reconciliation of funds
Fund balances brought forward 316,332
109,582		 466,062
891,976		 1,201,064
_
_		 _ _
_
Fund balances carried forward 176,763
-		 608,649
785,412
891,976
_ _ _ _ _

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

17

Stockton Arts Centre

Consolidated Balance Sheet As at 31 March 2025

Notes
£
Fixed assets
Tangible assets
13
Current assets
Stocks
13,661
Debtors
15
162,574
Cash at bank and in hand
710,001
_
886,236
Creditors: amounts falling due
16
( 647,886 )
within one year

_
Net current assets

Net assets

The funds of the charity:
Restricted funds
Unrestricted funds:
General fund
Designated funds

18
 As
2025
£
£
547,062
13,311
273,638
791,046
_
1,077,995
( 692,204 )
_
238,359
_
785,412
_
608,649
176,763
-
_
785,412
 restated
2024
£
506,185
385,791
_
891,976
_
466,062
316,332
109,582
_
891,976

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved by the Board of Trustees on 16 December 2025 and are signed on their behalf by:

........................................ K C Craddock Chair

Company Registration Number: 04591795

The notes on pages 21 to 38 form part of these financial statements

18

Stockton Arts Centre

Charity Balance Sheet As at 31 March 2025

Notes
£
Fixed assets
Tangible assets
13
Investments
14

Current assets
Debtors
15
177,795
Cash at bank and in hand
676,334
_
854,129
Creditors: amounts falling due
16
( 636,957 )
within one year

_
Net current assets

Net assets

The funds of the charity:
Restricted funds
Unrestricted funds:
General fund
Designated funds

18
 As
2025
£
£
547,062
1
_
547,063
282,804
703,041
_
985,845
( 675,433 )
_
217,172
_
764,235
_
608,649
155,586
-
_
764,235
 restated
2024
£
506,185
1
_
506,186
310,412
_
816,598
_
466,062
240,954
109,582
_
816,598

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved by the Board of Trustees on 16 December 2025 and are signed on their behalf by:

........................................

K C Craddock Chair

Company Registration Number: 04591795

The notes on pages 21 to 38 form part of these financial statements

19

Stockton Arts Centre

Consolidated Statement of Cash Flows For the year ended 31 March 2025

Notes 2025 2024
£ £
Cash flows from operating activities
Net cash used in operating activities 23 ( 106,564 ) ( 142,637 )
Cash flows from investing activities
Interest received 6,771 10,768
Purchase of tangible fixed assets ( 83,312 ) ( 13,879 )
_ _
Net cash used in investing activities ( 76,541 ) ( 3,111 )
Change in cash and cash equivalents ( 81,045 ) ( 145,748 )
Cash and cash equivalents at the beginning of the year 791,046 936,794
_ _
Cash and cash equivalents at the end of the year 710,001 791,046
_ _
Breakdown of cash and cash equivalents
Cash at bank and in hand 710,001 791,046
_ _

20

Stockton Arts Centre

Notes to the financial statements for the year ended 31 March 2025

1. Accounting Policies

Charity information

Stockton Arts Centre is a private company limited by guarantee incorporated in England and Wales. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charitable company.

1.1. Accounting convention

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

Stockton Arts Centre meets the definition of a public benefit under FRS 102. The financial statements are prepared under the historical cost convention or transaction value unless otherwise stated in the relevant accounting policy note(s). The financial statements are prepared in Sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

1.2. Going concern

The financial statements have been prepared on a going concern basis. The Trustees have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment over the next 12 months.

1.3 Basis of consolidation

The group financial statements consolidate the financial statements of the charitable company and its subsidiary undertaking. Stockton Arts Centre (Trading) Limited, drawn up to 31 March each year on a line-by-line basis. No income and expenditure account is presented for Stockton Arts Centre as permitted by section 408 of the Companies Act 2006.

21

Stockton Arts Centre

Notes to the financial statements (Continued) for the year ended 31 March 2025

1.4 Fund structure

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purpose and uses of the designated funds are set out in the notes to the accounts.

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

1.5 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid of deeds covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Income from grants, including government grants is recognised when the performance conditions of the grant are met and when the charity becomes entitled to the income.

When donors specify that donations and grants given to the charity must be used in future accounting periods, the income is deferred until those periods.

When donors specify that donations and grants are for particular restricted purposes, which do not amount to preconditions regarding entitlement, this income is included in restricted funds income when receivable.

Other trading activities income is recognised when receivable by the charity.

Investment income is recognised when receivable by the charity.

1.6 Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is possible that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Resources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered.

Expenditure which is directly attributable to specific activities has been included in these cost categories.

Expenditure on raising funds represents those costs associated with generating the trading income.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries

22

Stockton Arts Centre

Notes to the financial statements (Continued) for the year ended 31 March 2025

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost of valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:

Land and buildings Nil Equipment 2 – 10 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/ (expenditure) for the year.

The trustees consider that the freehold building is maintained in such a state of repair that its residual value is at least equal to its net book value. As a result the corresponding depreciation would not be material and is therefore not charged in the Statement of Financial Activities.

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/ (expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10 Stock

Stock is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is comprised of direct materials.

1.11 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.12 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.13 Creditors and provisions

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

23

Stockton Arts Centre

Notes to the financial statements (Continued) for the year ended 31 March 2025

1.14 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity’s balance sheet when the charity becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction. Financial liabilities classified as payable within one year are not amortised.

1.15 Pensions

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16 Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

1.17 Corporation tax

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. The group companies relieve their tax liability by making Gift Aid payments to the parent charity within nine months of the year end.

2. Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

There are no significant estimates.

24

Stockton Arts Centre

Notes to the financial statements (Continued) for the year ended 31 March 2025

3. Comparatives for the Statement of Financial Activities as restated

Unrestricted Designated Restricted
Total
Total
funds
funds		 funds
2024
2023
Notes
£
£		 £
£
£
Income from:
Donations 4 550,404
-		 -
550,404
466,775
Charitable activities 5 926,786
-		 258,784 1,185,570 1,347,592
Other trading activities 6 386,517
-		 -
386,517
337,338
Investments 7 10,768
-		 -
10,768
3,423
_
_		 _ _
_
Total income 1,874,475
-		 258,784 2,133,259 2,155,128
_
_		 _ _
_
Expenditure on:
Raising funds 8 355,522
-		 -
355,522
306,363
Charitable activities 9 1,664,172
26,178		 396,475 2,086,825 2,063,078
_
_		 _ _
_
Total expenditure 2,019,694
26,178		 396,475 2,442,347 2,369,441
_
_		 _ _
_
Net expenditure ( 145,219 )
( 26,178 )		 ( 137,691 ) ( 309,088 ) ( 214,313 )
Transfers 17 96,755
( 96,755 )		 -
-
-
_
_		 _ _
_
Net movement in funds ( 48,464 )
( 122,933 )		 ( 137,691 ) ( 309,088 ) ( 214,313 )
Reconciliation of funds
Fund balances brought forward 364,796
232,515		 603,753 1,201,064 1,511,414
_
_		 _ _
_
Fund balances carried forward 316,332
109,582		 466,062
891,976		 1,297,101
_ _ _ _ _
4.
Donations
2025
2024
£ £
Donations and gifts 17,045
17,377
Core grants 533,027
533,027
_
_
550,072
550,404
_ _
Core grants analysis
Arts Council England 371,723
371,723
Stockton Borough Council 161,304
161,304
_
_
533,027
533,027
_ _

25

Stockton Arts Centre

Notes to the financial statements (Continued) for the year ended 31 March 2025

5. Income from charitable activities

Core Programme
Live Programme
Cinema
Creative Programme
Strategic Programme
6.
Other trading activities
Catering income
Services and retail
Room hire
Box office charges
7.
Investments
Interest receivable
8.
Raising funds
Catering expenditure
Catering staff costs
Marketing
Wages and salaries

 As restated
2025
2024
£
£
463,287
191,564
338,393
574,574
38,026
50,887
240,002
362,592
551
5,953
_
_
1,080,259
1,185,570
_
_
2025
2024
£
£
273,434
295,803
1,367
6,746
105,197
74,802
14,952
9,166
_
_
394,950
386,517
_
_
2025
2024
£
£
6,771
10,768
_
_
2025
2024
£
£
158,064
132,071
117,519
95,100
27,565
55,337
79,822
73,014
_
_
382,970
355,522

26

Stockton Arts Centre

Notes to the financial statements (Continued)

for the year ended 31 March 2025

9. Expenditure on charitable activities

Expenditure on charitable activities
Directly
attributable
Support
costs
costs
2025
2024
£
£
£
£
Core Programme 711,851
347,020
1,058,871
1,788,001
Live Programme 257,375
128,547
385,922
512,307
Cinema 22,766
11,371
34,137
37,931
Creative Programme 161,985
80,904
242,889
239,495
Strategic Programme 22,560
11,268
33,828
30,050
_
_
_
_
1,176,537
579,109
1,755,646
2,607,784
_ _ _ _
Analysis of support costs
Core
Live		 Creative
Programme Programme
Cinema		 Programme
£
£
£
£
Staff costs 77,762
28,805
2,548
18,129
Depreciation 25,301
9,372
829
5,899
Property costs 111,912
41,456
3,667
26,091
Other costs 42,085
15,590
1,379
9,812
Administrative costs 75,642
28,020
2,478
17,635
Governance costs 14,319
5,304
469
3,338
_
_
_
_
347,020
128,547
11,371
80,904
_ _ _ _
Strategic
Total
Total
Programme
2025
2024
£
£
£
Staff costs 2,525
129,770
122,663
Depreciation 822
42,222
37,936
Property costs 3,634
186,759
196,135
Other costs 1,367
70,232
61,537
Administrative costs 2,456
126,231
136,714
Governance costs 465
23,895
29,311
_
_
_
11,268
579,109
584,296
_ _ _

Support costs have been split based on direct costs, 69% core programme, 20% live programme, 1% cinema, 9% creative and 1% strategic. Prior year split was 66% core programme, 18% live programme, 2% cinema, 12% creative and 2% strategic.

27

Stockton Arts Centre

Notes to the financial statements (Continued)

for the year ended 31 March 2025

10. Governance costs

Auditors’ remuneration
Net income/(expenditure) for the year
This is stated after charging:
Depreciation
Fees payment to the auditors’
Audit fees for the charitable company’s accounts
Accounts fees for the subsidiary
Taxation compliance for the subsidiary		 2025
£
11,000
_
2025
£
42,435
9,000
2,000
750
 2024
£
11,000
_
2024
£
37,936
9,000
2,000
500

11. Net income/(expenditure) for the year

12. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

The total staff costs and employees benefits is as follows:

Wages and salaries
Social security costs
Pension costs		 2025
£
774,186
67,012
15,128
_
856,326
 2024
£
843,213
61,241
13,994
_
918,448

28

Stockton Arts Centre

Notes to the financial statements (Continued) for the year ended 31 March 2025

12. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel (Continued)

The average monthly number of employees during the year was:

2025
Number
Administration, marketing and commercial staff
27
Operational staff
17
Catering staff
17
_
61
_
The number of employees who received total employee benefits (excluding employer pension costs) of
£60,000 is as follows:
2025
No.
£60,001 - £70,000
1
 2024
Number
29
24
17
_
70
_
more than
2024
No.
1

The key management personnel of the charity comprise the trustees, the Chief Executive Officer and Operations Director. The total employee benefits of the key management personnel of the charity were £116,822 (2024 - £108,944).

Trustees’ remuneration and expenses

The trustees were not paid, nor waived, any remuneration during the year (2024 - £nil). No trustees were reimbursed travel expenses during the year (2024 - £nil). No charity trustee received payment for professional services supplied by the charity (2024 - £nil).

29

Stockton Arts Centre

Notes to the financial statements (Continued) for the year ended 31 March 2025

13. Tangible fixed assets

Group and Company

Tangible fixed assets
Group and Company
Land and
Buildings Equipment
Total
£
£
£
Cost
At 1 April 2024 350,000
864,661		 1,214,661
Additions -
83,312
83,312
_ _
_
At 31 March 2025 350,000
947,973		 1,297,973
_ _
_
Depreciation and impairment
At 1 April 2024 -
708,476
708,476
Depreciation charged in the year -
42,435
42,435
_ _
_
At 31 March 2025 -
750,911
750,911
_ _
_
Carrying amount
At 31 March 2025 350,000
197,062
547,062
_ _ _
At 31 March 2024 350,000
156,185
506,185
_ _ _

The freehold and buildings is included in the financial statements at the amount paid to the liquidators of ARC Trust Limited. The professional valuation obtained by the liquidators reflected the market value of the facility, at March 2005, as adjusted for the covenants as detailed in note 21.

14. Fixed asset investment

Shares in subsidiary undertaking Group
2025
£
-
 Group
2024
£
-
 Charity
2025
£
1
 Charity
2024
£
1

Investments held by the charity represent a £1 investment in the subsidiary company which represents 1 £1 ordinary share being 100% of the issued share capital of Stockton Arts Centre (Trading) Limited (company number 09490242). The subsidiary is used for non-primary purpose trading activities. The principal activity of this company is the provision of a food and drink service at ARC. A summary of the trading results are shown below:-

30

Stockton Arts Centre

Notes to the financial statements (Continued) for the year ended 31 March 2025

14. Fixed asset investment (Continued)

2025 2024
£ £
Turnover 274,796 302,549
Costs of sales ( 105,525 ) ( 111,170 )
Administrative expenses ( 149,191 ) ( 116,001 )
_ _
Profits 20,080 75,378
_ _
Assets 47,797 101,316
Liabilities ( 26,620 ) ( 25,938 )
_ _
Net assets 21,177 75,378
_ _

Results of parent company

As permitted by section 408 of the Companies Act 2006, the results of the parent company are not presented as part of these financial statements. As required by the Charity SORP, the results of the parent company are as follows:

Total incoming resources
Net movement in funds
15.
Debtors

Trade debtors
Prepayments and accrued income
Amounts owed by group undertakings
16.
Creditors: amounts falling due within one year
Trade creditors
Taxes and social security costs
Other creditors
Accruals and deferred income
Funds held as a custodian		 2025
2024
£
£
2,395,555
2,395,555
( 340,580 )
( 340,580 )
_
_
Group
Group
Charity
Charity
2025
2024
2025
2024
£
£
£
£
43,474
38,579
43,005
38,579
119,100
235,059
119,100
235,059
-
-
15,690
9,166
_ _ _
_
162,574
273,638
177,795
282,804
_ _ _
_
Group
Group
Charity
Charity
2025
2024
2025
2024
Restated
Restated
£
£
£
£
119,807
179,818
114,109
167,544
21,316
26,257
21,316
26,257
26,958
46,646
26,958
46,646
410,653
329,601
405,422
325,104
69,152
109,882
69,152
109,882
_ _ _
_
647,886
692,204
636,957
675,433

31

Stockton Arts Centre

Notes to the financial statements (Continued) for the year ended 31 March 2025

16. Creditors: amounts falling due within one year (Continued)

Funds Held as Custodian Trustee

In 2024-25, Stockton Arts Centre acted as Custodian Trustee for funding awards to support artistic activities.

The total value of the awards received in the year was £398,193 (2024: £534,804) and the total amount held in relation to these awards at the year end was £69,152 (2024: £109,882).

Deferred income

Deferred income relates to income received for events held post year end.

£
At 1 April 2024 158,666
Amounts released to income ( 158,666 )
Additions during the year 238,898
_
At 31 March 2025 238,898
_

17. Prior period adjustment

A prior period adjustment has been made in respect of the treatment and classification of the Associate Artist & Company Projects fund. Following a review of these arrangements it was determined that they should not be recognised gross in the statement of financial activities and should be classified as amounts held as custodian in the balance sheet - see note 16 for further details.

Change to the balance sheet

Change to the balance sheet
As restated
As previously at 31 March
reported Adjustment
2024
£ £
£
Current liabilities
Funds held as a custodian - 109,882
109,882
_ _ _
Funds
Restricted funds 575,944 ( 109,882 )
466,062
_ _
_
575,944 ( 109,882 )
466,062
_ _ _
Change to the statement of financial activities
As restated
As previously at 31 March
reported Adjustment
2024
£ £
£
Income 2,668,063 ( 534,804 )
2,133,259
Expenditure ( 2,963,306 ) 520,959 ( 2,442,347 )
_ _
_
Deficit for the year ( 295,243 ) ( 13,845 )
( 309,088 )
_ _ _

32

Stockton Arts Centre

Notes to the financial statements (Continued) for the year ended 31 March 2025

18. Statement of funds

For the year ended 31 March 2025
Balance at Balance at
1 April 31 March
2024
Income		 Expenditure Transfers
2025
£
£
£
£
£
Unrestricted funds
General fund 316,332 1,482,285 ( 1,731,436 )
109,582
176,763
Designated funds
Capital fund (2017) 75,591
-
-
( 75,591		 )
-
Capital fund (2020) 22,247
-
-
( 22,247		 )
-
Capital fund (2021) 5,996
-
-
( 5,996		 )
-
Capital fund (2023) 5,748
-
-
( 5,748		 )
-
_ _
_		 _
_
109,582
-
( 109,582 )
-
_ _
_		 _
_
Total unrestricted funds 425,914 1,482,285 ( 1,731,436 )
-
176,763
Restricted funds
Arts Council England 350,000
-
-
-
350,000
Young People’s projects 4,800
31,953
( 32,569		 )
-
4,184
Staying Out project 5,051
-
( 5,051		 )
-
-
SIRF Projects 12,800
-
( 12,800		 )
-
-
Venues North 7,138
11,467
( 6,748		 )
-
11,857
Tees Valley Combined Authority -
374,816
( 210,855		 )
-
163,961
Future Arts Centre -
551
( 551		 )
-
-
Arts and Minds 73,238
-
( 73,238		 )
-
-
Collaborative Artistic Projects 8,785
29,088
( 34,391		 )
-
3,482
North East Exchange 1,500
1,350
( 206		 )
-
2,644
Wellington Square Shopping Centre 2,750
-
( 2,750		 )
-
-
Film Hub North – Bigger Picture -
10,375
( 10,375		 )
-
-
Baring Foundation -
48,200
( 16,209		 )
-
31,991
Borderlands - 34,967
 -
 - 34,967
Bailey Thomas -
3,000
( 981		 )
-
2,019
D’Oyly Carte -
4,000
( 455		 )
-
3,545
_ _
_		 _
_
Total restricted funds 466,062
549,767
( 407,180		 )
-
608,649
_ _
_		 _
_
891,976 2,032,052 ( 2,138,616 )
-
785,412
_ _
_		 _ _

33

Stockton Arts Centre

Notes to the financial statements (Continued) for the year ended 31 March 2025

For the year ended 31 March 2024 as restated
Balance at Balance at
1 April 31 March
2023
Income Expenditure		 Transfers
2024
£
£
£
£
£
Unrestricted funds
General fund 364,796 1,874,475 ( 2,019,694 )
96,755
316,332
Designated funds
COVID Recovery Fund 96,755
-
-
( 96,755 )
-
Capital fund (2017) 96,096
-
( 20,505 )
-
75,591
Capital fund (2020) 26,326
-
( 4,079 )
-
22,247
Capital fund (2021) 6,872
-
( 876 )
-
5,996
Capital fund (2023) 6,466
-
( 718 )
-
5,748
_ _
_		 _
_
232,515
-
( 26,178 )
( 96,755 )
109,582
_ _
_		 _
_
Total unrestricted funds 597,311 1,874,475 ( 2,045,872 )
-
425,914
Restricted funds
Arts Council England 350,000
-
-
-
350,000
Young People’s projects 11,753
29,650
( 36,603 )
-
4,800
Staying Out project 8,047
26,750
( 29,746 )
-
5,051
SIRF Projects 49,564
-
( 36,764 )
-
12,800
Venues North 5,101
9,713
( 7,676 )
-
7,138
Tees Valley Combined Authority 70,989
62,931
( 133,920 )
-
-
Future Arts Centre 5,876
77
( 5,953 )
-
-
Arts and Minds 39,712
72,123
( 38,597 )
-
73,238
Rix Thompson Rotherburg Foundation 19,140
5,100
( 24,240 )
-
-
Collaborative Artistic Projects 43,571
38,190
( 72,976 )
-
8,785
North East Exchange -
1,500
-
-
1,500
Wellington Square Shopping Centre -
2,750
-
-
2,750
Film Hub North – Bigger Picture -
10,000
( 10,000 )
-
-
_ _
_		 _
_
Total restricted funds 603,753
258,784
( 396,475 )
-
466,062
_ _
_		 _
_
1,201,064 2,133,259 ( 2,442,347 )
-
891,976
_ _ _ _ _

34

Stockton Arts Centre

Notes to the financial statements (Continued) for the year ended 31 March 2025

Designated funds

COVID Recovery Fund – reserves have been designated to support against future deficits and costs impacted by the COVID pandemic.

Capital fund – relates to other fixed assets which are shown as designated funds. Depreciation is charged against this fund so that it equals the net book value of these assets.

Restricted funds

Arts Council England – this equals the value of the property, further details of the valuation are in note 13 and 20.

Young People’s projects – relates to funding received from Stockton on Tees Borough Council for various youth projects, including targeted work with care-experienced children and young people.

Staying Out – related to funding from Stockton on Tees Borough Council for an ongoing programme of weekly creative arts sessions aimed at people aged 65+ who are socially isolated.

SIRF projects – relates to funding received from Stockton International Riverside Festival for artistic projects for the festival 2023.

Venues North – relates to membership fees for this network managed by ARC, which is committed to supporting artists making new performance work in the North of England.

Tees Valley Combined Authority – relates to funding received to deliver strategic projects supporting cultural development in the Tees Valley.

Film Hub North – Bigger Picture – relates to funding received to increase the number of South Asian films within our cinema programme, and develop South Asian audiences.

Wellington Square Shopping Centre – relates to funding received to support a series of artist commissions for the shopping centre.

Future Arts Centre – relates to funding received to support Future Arts Centres, a national network co-led by ARC and the Albany, and associated project activity.

Arts and Minds – relates to funding received from the Comic Relief SMILES fund via Middlesborough & Stockton Mind, to deliver creative activity for adults with mild to moderate mental health conditions.

Rix Thompson Rotherburg Foundation – relates to funding received to support the delivery of learning disabledled club nights in 2023/2024.

Collaborative Artistic Projects – relates to monies for collaborative projects delivered in conjunction with other partners.

North East Exchange - relates to membership fees for this network managed by ARC, which is committed to supporting artists across the North East.

35

Stockton Arts Centre

Notes to the financial statements (Continued) for the year ended 31 March 2025

18. Statement of funds (Continued)

Baring Foundation – relates to funding for the collaborative project between ARC and Blind Tiger – Mouths of the Tees – a project supporting the mental health of men in Tees Valley

Borderlands - relates to delivery of a training programme for artists and communities involved in the Communities of Possibilities project run by Borderlands CPP.

Bailey Thomas – relates to support for ARCtic Piranha club nights for learning disabled adults.

D’Oyly Carte - relates to work supporting local young people through the We Are TS18 project.

19. Analysis of net assets between funds

For the year ended 31 March 2025
Unrestricted Designated Restricted
Funds
funds
funds
£
£
£
Tangible assets
197,062
-
350,000
Net current assets
( 20,299 )
-
258,649
_
_ _
176,763
-
608,649
_
_ _
For the year ended 31 March 2024 as restated
Unrestricted Designated Restricted
Funds
funds
funds
£
£
£
Tangible assets
46,603
109,582
350,000
Net current assets
269,729
-
116,062
_
_ _
316,332
109,582
466,062

 Total
£
547,062
238,350
_
785,412
_
Total
£
506,185
385,791
_
891,976

36

Notes to the financial statements (Continued) for the year ended 31 March 2025

Stockton Arts Centre

20. Defined contribution retirement benefit scheme

The group operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £15,128 (2024 - £13,994).

The defined contribution liability is allocated to unrestricted funds.

21. Financial commitments, guarantees and contingent liabilities

In the event of Stockton Arts Centre property at Dovecot Street, Stockton on Tees being sold and the net proceeds of sale not being used for the furtherance of the company’s charitable purposes, then an amount of £200,000 (which is to be index linked from February 1997) would have to be paid to the Young Men’s Christian Association and £81,000 (which is to be index linked from January 2004) to the Stockton Borough Council.

There is also a chattel mortgage on the property and certain equipment between Stockton Arts Centre and The Arts Council of England which states that a novated debt, equipment to the purchase price of the land and freehold property would have to be repaid to The Arts Council of England on the occurrence of certain events, such as the organisation ceasing to be a charity.

22. Related party transactions

There have been no related party transactions during the year (2024 – none).

37

Stockton Arts Centre

Notes to the financial statements (Continued) for the year ended 31 March 2025

23. Cash generated from operations

Cash generated from operations
2025 2024
£ £
Deficit for the year ( 106,564 ) ( 295,243 )
Adjustments for:
Investment income ( 6,771 ) ( 10,768 )
Depreciation of tangible fixed assets 42,435 37,936
Movements in working capital:
Increase in stocks ( 350 ) ( 1,325)
Decrease/(Increase) in debtors 111,064 ( 12,431 )
(Decrease)/Increase in creditors ( 44,318 ) 139,194
_ _
Cash outflow from operations ( 4,504 ) ( 142,637)
_ _

24. Analysis of changes in net funds

The charity has no debt during the year.

38