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2021-09-30-accounts

OPERA HOLLAND PARK

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

30 SEPTEMBER 2021

Registered Charity Number: 1096273 Registered Company Number: 04515375

OPERA HOLLAND PARK

YEAR ENDED 30 SEPTEMBER 2021

REFERENCE AND ADMINISTRATIVE INFORMATION

Trustees

Charles Mackay CBE (Chairman) Stuart Corbyn (resigned 1.12.2021) Anupam Ganguli (retired 30.09.2021) Louise Halliday Michael Jary Martin Kramer Sir Trevor McDonald OBE Sally O'Neill Dame Sue Owen DCB Jean Tsang (appointed 14.12.2021)

Company Registered Number

04515375

Charity Registered Number

1096273

Registered Office

37 Pembroke Road, London, England, W8 6PW

Company Secretary

Fiona C Campbell (resigned 25.01.2021) Pratheepan Thurairajah (appointed 25.01.2021)

Directors

James Clutton, CEO & Director of Opera

Independent Auditors

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

Bankers

Lloyds Bank PLC, 1st Floor, 39 Threadneedle Street, London. EC2R SAU

Solicitors

Harbottle & Lewis LLP, 14 Hanover Square, London W1S 1HP

1

OPERA HOLLAND PARK

REPORT OF THE TRUSTEES

YEAR ENDED 30 SEPTEMBER 2021

The Trustees (who are also directors of the Charity for the purposes of the Companies Act) are pleased to present their annual report together with the audited financial statements of the Charity for the year ended 30 September 2021. The Trustees confirm that the Annual Report and financial statements of the Charity comply with the current statutory requirements, the requirements of the Charity's governing document and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective I January 2015)".

The Directors of the Charity are for the purpose of Charity law its Trustees, as set out on page I, and throughout the financial statements are collectively referred to as the Trustees.

The opera company's day-to-day operation of its activities, including the delivery of its artistic programme and all marketing, sponsorship, ticket sales and venue management are led by the experienced management team.

Structure, governance and management

Constitution

Opera Holland Park was established as a company limited by guarantee (company number 04515375) on 20 August 2002. The Company was registered as a charity (number 1096273) on 27 February 2003. On 1[st] October 2015, the Charity incorporated the opera operations of The Royal Borough of Kensington & Chelsea.

The Company is governed by its Memorandum and Articles of Association, amended October 2016. The Liability of the members (who are the directors) is limited to £1 each.

The Charity is required to have at least three Trustees and no more than twelve, the maximum number determined by the Articles of Association. The Articles of the Charity determine the quorum for meetings of Trustees, which shall never be less than the greater of one-third of the Trustees or three Trustees. Decisions are made by majority vote. A meeting of Trustees, at which a quorum is present, can exercise all of the powers that the Trustees have, including establishing sub- committees.

Method of appointment or election of Trustees

The Trustees are appointed by the Board on the recommendations of the Nominations Committee. The Trustees may co-opt any person as a Trustee provided the maximum specified by the Articles is not exceeded. The composition of the Trustees of the Charity and any training requirements for Trustees are reviewed as and when required, to ensure that the Trustees, as a body, are able to manage the Charity's affairs effectively.

Policies adopted for the induction and training of Trustees

New appointees are briefed and given the necessary and appropriate information to take on their new role.

Organisational structure and decision making

All key decisions affecting the strategic direction and the policy of the Charity are made at the Board, which meets 4 times

a year. There are three committees of the Board:

In addition, there is a Campaign Board of the Charity, whose remit is to assist the Charity with fundraising. A Trustee chairs this and other Trustees can be members (currently 2). It meets at least 2 times a year.

The Trustees carry out a review of the Charity's activities annually and agree the year's programme of activities and financial budget. They monitor progress against the agreed plan at each Trustee meeting, and review the outcomes of the Season.

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OPERA HOLLAND PARK

REPORT OF THE TRUSTEES

YEAR ENDED 30 SEPTEMBER 2021

Risk management

The Trustees have implemented procedures designed to identify and minimise the potential impact of risks on the Charity.

The Trustees undertake regular reviews of the risks associated with each area of income and expenditure, particularly in the following areas:

These risks are reviewed, potential impacts quantified, and mitigations agreed. The approach to risk management continues to be refined, and aligned with the standards required by the Charity Commission.

Objectives and activities

The objectives of the Charity

The objectives for which the Company was established, as laid down in the Memorandum and Articles of Association, are to promote, improve and advance the education and appreciation of the general public in the arts and in particular opera. The Charity achieves these objectives by providing high quality, affordable opera in central London and related activities.

Public benefit

The trustees have paid due regard to the Charity Commission's guidance on public benefit when reviewing their aims and objectives and planning future activities.

It is a fundamental objective of the Charity is to make opera accessible and affordable. As part of our affordability objective, our tickets are much lower in price than those of our peer group of opera companies. In addition we offer free tickets for the under 16s and over 65s, and heavily reduced priced tickets are widely available. Free and reduced priced tickets represented about 6.5% of our seat capacity in the 2021 Season, despite a 60% overall reduction in capacity to ensure social distancing. We also make it possible for patrons with mobility, hearing and visual impairment to enjoy opera at our theatre, with increased space for wheelchair users and a continued collaboration with VocalEyes for audio-described performances, as well as a series of Relaxed Performances.

Our Inspire education and outreach programme aims to allow all members of the local community the opportunity to discover, experience and actively participate in opera, developing their taste and knowledge and bringing the art form to as wide an audience as possible. This project continues to be the main vehicle for delivering our accessibility aims to the community, as well as developing our audiences.

In 2021 we continued to increase and extend the reach of the Inspire scheme, developing new ways of working and communicating with charities, hospitals, care homes and individuals. In January we offered six free online music lessons for Key Stages 2 and 3, reaching 15,236 viewers. By working digitally as well as in person we were not only able to increase the reach of Inspire, but were able to increase the frequency of events and interaction across the cyclical tightening and loosening of Covid protocol restrictions. This year we ran 150 events and projects, created a six week workshop programme for 25 vulnerable children in foster care in West London, and reached 2,745 individuals.

We held two Schools Matinee performances at the theatre, supported by live and online workshops and attended by 800 children, and four Discovery Matinees and Relaxed Performances, with designated ‘break out’ zones. We were also able to increase the number of our OperaUnity workshops through hybrid working: creating a time and space for 572 families with young children, and reducing the isolation often felt by young parents. In situ highlights during the summer Season included a collaboration with Holland Park Ecology Centre based around The Cunning Little Vixen, and guest performances of Peter and the Wolf that welcomed families and babes in arms.

We continue to work in association with charities such as The Salvation Army and Age UK to help combat social isolation, individual refuges protecting women against domestic violence, and many charities concerned with dementia. Opera Holland Park is a dementia-friendly theatre, and Inspire uses music year round to reach those living with dementia and their carers.

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OPERA HOLLAND PARK

REPORT OF THE TRUSTEES

YEAR ENDED 30 SEPTEMBER 2021

Achievements and performances

In 2021, Opera Holland Park, like all arts companies in the UK, faced considerable challenges posed by the ongoing pandemic. Working with the set designer takis, we undertook a significant redesign of the auditorium and stage to allow for social distancing and the safety of audiences, performers and staff, and to maximise the natural beauty of the theatre’s setting. The materials used were reclaimed and sustainable, with audience seating sourced from previous productions at Opera Holland Park, the National Theatre and Welsh National Opera.

These innovations, along with a 60% reduction in seating capacity, were communicated to members and supporters via regular online Q&A sessions with CEO James Clutton, in which audience questions were answered honestly and clearly, and the design process and rationale behind it was made transparent. The response in terms of goodwill and individual donations was overwhelmingly positive. Open communication remains key to the relationship between the Charity and its supporters and patrons.

In the summer of 2021 Opera Holland Park welcomed over 30,000 people to its redesigned theatre. An expanded season of events included more than 78 public performances, featuring 110 singers, 6 directors, 6 conductors, 51 chorus members, the 2021 cohort of Opera Holland Park Young Artists, and our resident orchestra City of London Sinfonia. We put on new productions of The Marriage of Figaro, L’amico Fritz and The Cunning Little Vixen, revived our acclaimed 2018 production of La traviata, and co-produced The Pirates of Penzance with Charles Court Opera. We took 3,777 Covid tests to ensure our cast and company were safe, and maintained social distancing in the auditorium and public hospitality areas with seating grouped in household bubbles.

With many freelance artists and smaller professional and amateur organisations still suffering from cancelled performance opportunities due to the pandemic, we introduced a new recital series, Opera in Song, and opened the space to British Youth Opera, Waterperry Opera, Quick Fantastic, Fifth Door Ensemble, the London Oriana Choir, and artists from the Notting Hill Carnival and the 606 Club.

Press reaction to the Season was extremely positive, with four and five star reviews from broadsheet and online publications for all productions. The auditorium redesign and upcycled seating scheme was also praised, and was described in the London Evening Standard as “London’s greenest theatre”, and in The Guardian as “a well-nigh ideal solution” to the challenges of live performance during the pandemic.

Like most other organisations, the Charity continued to furlough staff who were not needed to run the Charity at specific times until the end of the Coronavirus Job Retention Scheme. The team began to work remotely from home, collectively adopting a hybrid work pattern as the year progressed. Although the main focus was to prepare a return to live performance at the theatre in the summer, digital work undertaken prior to the opening of the 2021 Season included a ‘Christmas with Opera Holland Park’ special, a filmed performance of Pavel Haas’s Fata morgana for Holocaust Memorial Day, which was viewed by more than 16,000 people, a recital of Vaughan William’s The House of Life, and a new filmed production of William Walton’s comic opera, The Bear which was released in October 2021. Further digital offerings included a series of panel discussions of the operas in the 2021 Season, a Young Artists Masterclass with Amanda Roocroft, a series of OperaUNITY family workshops designed for parents and children, and three weeks of free online music lessons for children aged 7 to 14 years through Inspire. We also filmed all five mainstage productions in the summer for later release.

Audience figures

In person

-Total number of attendees to OHP productions, including The Marriage of Figaro, La traviata, Cunning Little Vixen, L’amico Fritz, The Pirates of Penzance (all being sold out) and including Schools Matinees and dress rehearsals: 22,939 -Total number of attendees to visiting companies at Opera Holland Park, including Opera in Song, Wonderful Town, Carnival and British Youth Opera: 8,004

Online activity

-Online Inspire work (including online OperaUNITY workshops and music lessons: 15,236

-Online pre-season panel discussions: 2,999

-Online supporter events, including Meet the Young Artists and 3 x Members Q&As: 995

-Online artistic activity, including Fata Morgana for Holocaust Memorial Day, The House of Life, Young Artists Masterclass with Amanda Roocroft, Christmas with Opera Holland Park, Un ballo in maschera on demand and a Q&A screening of the opera for Viking TV: 43,498

-NB figures do not include engagement and reach achieved through content or trailers posted on social media for marketing purposes

4

OPERA HOLLAND PARK

REPORT OF THE TRUSTEES

YEAR ENDED 30 SEPTEMBER 2021

Going Concern

The Covid-19 pandemic had an immediate and significant impact on all areas of our business from April 2020.

The Trustees must satisfy themselves as to the Charity’s ability to continue as a going concern for a minimum of 12 months from the signing of the financial statements. The Trustees have reviewed possible scenarios in its assessment of going concern by considering whether, in the face of several challenging yet plausible scenarios identified as a result of COVID-19, the Charity had adequate resources to meet its obligations as they fall due in the period at least 12 months from the date of approval of these financial statements.

We have made use of the Coronavirus Job Retention Scheme by furloughing as many staff as possible from April through to September 2021. We have postponed all major capital projects to future years. We also renewed our fundraising efforts and we are hugely grateful to all those supporters and patrons who donated during the year.

Looking forward, we carried out extensive scenario planning and financial modelling for the 2021/22 financial year. These included another year of closure, building a theatre with 425 seats capacity or increasing the capacity to 650 seats with adequate social distancing. It was agreed by the Trustees that the 650 seat option was best given the current known circumstances.

For the 2022/23 financial year, similar scenario planning and financial modelling, based on conservative assumptions, has been conducted. It was been agreed that the 2023 Season will at the very least include a 650 seat auditorium.

After consideration of the various scenarios, the Trustees consider that Opera Holland Park has adequate resources to continue in operational existence for the foreseeable future being a minimum of twelve months from when these financial statements are approved. For this reason the financial statements of the Group and Parent Charitable Company have been prepared on a going concern basis.

Reserves Policy

The Board recognises the need to establish a level of general reserves that enables financial stability. In particular, reserves are needed to meet working capital requirements, to cover short-term fluctuations in income and expenditure and to enable the Charity to respond to unexpected needs or new opportunities, and to finance major projects. Free reserves are deemed to be those that are readily realisable, excluding funds whose uses are restricted or designated for particular purposes.

The-Board also recognises that the Charity has been operating at a deficit which has the effect of depleting the reserves. Over time therefore the Board is committed to progressively increasing income and containing costs in order to achieve financial stability.

In the light of the impact of the pandemic, the Board has reviewed its reserves policy and determined that Free Reserves should be at least enough to cover the potential deficit of a further lost Season in the future. This would also require in maintaining a minimum cash reserve of £1m.

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OPERA HOLLAND PARK

REPORT OF THE TRUSTEES

YEAR ENDED 30 SEPTEMBER 2021

This is particularly important because the Charity receives no annual government support, that it has not been eligible to receive support under the Cultural Recovery Fund, that there is no guarantee that other emergency government support such as furlough would be available in the future, and that it is no longer possible to obtain business interruption insurance for this or similar pandemics. We also need to take account of the seasonal pattern of our income and expenditure.

Financial review

The review is for the year ended 30 September 2021. The Charity's activity resulted in income for the year of £3,152,548 (2020: £1,583,128). Of this £86,572 (2020: £125,974) was received via the Furlough scheme from HMRC.

The Charity ended the year on a deficit of £231,230 compared to a budgeted deficit of £426,000. The unrestricted funds as at 30th September 2021 were £1,751,079 (2020: £2,160,594). Cash at bank on 30th September 2021 was £1,626,537 (2020: £1,853,243).

Season 2021 was made up of 5 main productions comprising of 47 performances including 2 Young Artists and 4 Discovery Matinees, achieving full capacity. In addition, 9 events consisting of 26 individual performances were held, again achieving full capacity.

The generosity and loyalty of our supporters was of vital importance to us throughout the year. Our members and other patrons have continued to be very generous and offered donations through our “Save Our Seats” scheme generating a total of £116k including gift aid.

The Charity's other funding source is derived from the receipts of memberships and general donations. The Charity also claimed Gift Aid in addition to applying for the Theatre Tax Relief.

Investment Policy

Under the Memorandum & Articles of Association, the Charity has the power to invest monies of the company that are not immediately required for its operating purposes, in any way that the Trustees deem appropriate. The Trustees, having regard to the liquidity requirements of operating the Opera have operated a policy of keeping funds available in an interest bearing deposit account.

Plans for Future Years

As for many companies the global pandemic put a halt to many of our plans. However, over the last two years we have been able to use our long held talents for innovation and imagination to re-think how we do everything. How we present performances, how our theatre looks and how we set up the company generally in regards our staff working patterns, working with donors and all of our events.. In a review of 2021 The Guardian wrote that our new theatre was a “nigh-on ideal solution” to the performance in the pandemic.

Our increased digital output over the last two years has enabled us to retain (and even increase) our foreign based membership. We held a private showing of the film of our production of La Traviata in Hong Kong for our member based there. This sort of event; reaching out to membership around the world will increase in regularity and quality over the next few years. We will develop foreign based membership to access ore digital events.

We will continue to develop our theatre space - increasing capacity in steps to return to pre pandemic levels, whilst keeping the core of the new style - making the audience experience more intimate and special. The Evening. Standard called us "London’s greenest theatre”. We will continue to develop the sustainability of the theatre itself along with all aspects of the productions - mainly recyclable sets.

We will continue to work with more independent food and drink suppliers - engaging with other companies to create a unique visitor experience. We are currently developing the idea of a winter season to give the company a more year-round visibility and encourage more involvement from our members through the calendar year rather than just over the summer.

We will continue to refine our financial model as we move towards a more financially sustainable future.

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OPERA HOLLAND PARK

REPORT OF THE TRUSTEES

YEAR ENDED 30 SEPTEMBER 2021

Equal Opportunities provision

Opera Holland Park has an equal opportunities employment policy that covers Trustees, employees, volunteers, artists and performers. We are proud of what we have achieved in these areas. The Charity is also very much committed to promoting equal opportunities for everyone who is involved in the provision of services. In addition, and despite the unique nature of this Grade 1 listed site, there is accessibility for mobility impaired visitors to the auditorium and the majority of picnic and entertainment areas. OHP also provides audio described performances, allows access for guide dogs and is a dementia friendly theatre.

Fundraising regulation

Opera Holland Park are compliant with the rules on fundraising that came into force on 1 November 2016 and are members of The Fundraising Regulator. It should be noted that OHP does not use agency or third party professional fundraisers, with the exception of a consultancy firm assisting us on corporate fundraising since May 2021.

7

OPERA HOLLAND PARK

REPORT OF THE TRUSTEES

YEAR ENDED 30 SEPTEMBER 2021

Statement of Trustees' responsibilities

The Trustees (who are also Directors of Opera Holland Park for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the Trustees are required to:

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

Provision of information to auditors

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

The Report of the Trustees has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

By order of the Trustees

Charles D Macka y Charles Mackay CBE Chairman of the Board

Sally O’Neill Chair of the Finance, Audit & Risk Committee

Date: 20 June 2022 Date: 20 June 2022

8

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF OPERA HOLLAND PARK

Opinion

We have audited the financial statements of Opera Holland Park for the year ended 30 September 2021 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows 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 charity 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’ 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.

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:

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’ Annual 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:

9

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement [set out on page 8, 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 Companies Act 2006 and the Charities Act 2011 and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as payroll tax, Data Protection and Health and Safety laws.

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

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 Auditor

10 Queen Street Place London EC4R 1AG

Date: 20 June 2022

10

OPERA HOLLAND PARK

STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating an Income and Expenditure Account)

YEAR ENDED 30 SEPTEMBER 2021

Restricted General
Funds Funds Total Total
Notes 2021 2021 2021 2020
£ £ £ £
INCOME FROM:
Donations 2 178,285 765,709 943,994 1,058,773
Grants 2 - 86,572 86,572 126,588
Charitable activities 3 - 1,754,755 1,754,755 358,717
Other trading activities 4 - 347,520 347,520 33,086
Investments 5 - 19,707 19,707 5,965
Total income 178,285 2,974,263 3,152,548 1,583,128
EXPENDITURE ON:
Raising funds 6 - 91,163 91,163 341,949
Charitable activities 7 - 3,292,615 3,292,615 1,585,292
Total expenditure - 3,383,778 3,383,778 1,927,241
Net movement in funds 8 178,285 (409,515) (231,230) (344,113)
Balance brought forward at 1 October 2020 86,714 2,160,594 2,247,308 2,591,421
Balance carried forward at 30 September 2021 264,999 1,751,079 2,016,078 2,247,308
========= ========= ========= =========

All activities are continuing. There are no other gains or losses other than those shown above.

The notes on pages 13 to 27 form part of these financial statements.

Full comparatives for the year to 30 September 2020 can be found in note 23.

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Company Number: 04515375

OPERA HOLLAND PARK

BALANCE SHEET

30 SEPTEMBER 2021

2021 2020
Notes £ £
FIXED ASSETS
Tangible fixed assets 10 310,018 277,680
310,018 277,680
CURRENT ASSETS
Debtors 11 384,495 540,861
Current asset investments 12 52,635 -
Cash at bank 1,626,537 1,853,243
2,063,667 2,394,104
CURRENT LIABILITIES
Creditors 13 (357,607) (424,476)
NET CURRENT ASSETS 1,706,060 1,969,628
TOTAL ASSETS LESS LIABILITIES 2,016,078 2,247,308
========= =========
Represented by:
Restricted funds
Restricted funds 17 264,999 86,714
Unrestricted funds 16 1,751,079 2,160,594
2,016,078 2,247,308
========= =========

The financial statements were approved and authorised for issue by the Trustees on and were signed below on their behalf by:

_________
Charles D Mackay		 ________
Charles Mackay CBE Sally O’Neill
Chairman of the Board Chair of the Finance, Audit & Risk
Committee Date: 20 June 2022 Date: 20 June 2022

The notes on pages 13 to 27 form part of these financial statements.

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OPERA HOLLAND PARK

STATEMENT OF CASH FLOWS

30 SEPTEMBER 2021

2021 2020
Notes £ £
Net cash provided by operations A (73,404) 76,747
Cash flows from investing activities:
Interest received 19,707 5,965
Payments to acquire tangible fixed assets (120,375) (5,098)
Investment additions (52,635)
-
Net cash (used in) / provided by investing activities (153,303) 867
Change in cash and cash equivalents in the reporting period (226,707) 77,614
Net cash and cash equivalents at beginning of period 1,853,244 1,775,630
Net cash and cash equivalents at end of period B 1,626,537 1,853,244
========= =========
A. RECONCILIATION OF NET MOVEMENT IN FUNDS
TO		 2,021 2020
NET CASH INFLOW FROM OPERATIONS £ £
Net movement in funds (231,230) (344,113)
Income from investments (19,707) (5,965)
Depreciation 88,036 103,441
Decrease/(increase) in debtors 156,366 233,682
Increase/(decrease) in creditors (66,869) 89,702
(73,404) 76,747
========= =========
B. ANALYSIS OF CHANGES IN CASH AND
CASH EQUIVALENTS At 30 At 30
September Cash flows September
2020 2021
£ £ £
£1,853,244 (£226,707) £1,626,537
========= ========= =========

13

OPERA HOLLAND PARK

NOTES TO THE ACCOUNTS

YEAR ENDED 30 SEPTEMBER 2021

1. ACCOUNTING POLICIES

The principal accounting policies and significant judgements and estimates adopted in the preparation of the financial statements are as follows:

Basis of preparation

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 I 02) (effective I January 2015) - (Charities SORP (FRS I 02)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS I 02) and the Companies Act 2006.

Opera Holland Park meets the definition of a public benefit entity under FRS I 02. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Going Concern

For the reasons set out in the Going Concern section of the Report of the Trustees on page 5, the Trustees consider there are no unmitigated foreseeable material uncertainties about the Charity's ability to continue as a going concern.

Income recognition

All income is recognised once the Charity has entitlement to the income, it is probable that income will be received and the amount of income receivable can be measured reliably.

i) Donations and legacies Income from subscriptions and donations are included in incoming resources in the year to which they relate. Subscription income is deferred if the subscription relates to the following Season ii) Government grants Grants are accounted for under the accruals model as permitted by FRS 102. iii) Gifts and intangible income Income from these sources is included in the year in which it is received and valued at a reasonable estimate of the value of the gift or service received. iv) Other trading activities Income from activities is included in incoming resources when receivable. v) Investment income Interest is included when receivable by the Charity and added to the relevant fund. vi) Ticket Income Income from ticket sales is included in the year in which it is received. Part of ticket income is a donation and this is separately recognised as a donation.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

i) Expenditure on raising funds

This comprises all costs incurred by the Charity relating to the raising of funds to finance its charitable objectives. Staff costs are split 50:50 under this heading and governance costs as an estimate of actual staff time spent.

ii) Charitable activities

This comprises grants made by the Charity to institutions. Grants payable are recognised once the grant is agreed by the Trustees and communicated to the institution.

14

OPERA HOLLAND PARK

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 30 SEPTEMBER 2021

1. ACCOUNTING POLICIES (continued)

iii) Support costs and governance costs

This comprises all costs associated with the running of the Charity's office, and any other costs not directly attributable to the above headings. Support costs are allocated to Fundraising.

Staff costs

Short term benefits

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Employee termination benefits

Termination benefits are accounted for on an accrual basis and in line with FRS 102.

Pensions

Contributions are made to the Local Government Pension Plan for the transferred employees from the Royal Borough of Kensington and Chelsea. Auto-enrolment pension is effective from 1 [st] October 2019.

Funds

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Designated funds are funds set aside for a specific purpose. The purpose and uses of the designated funds are set out in the notes to the financial statements. Transfers are made to the designated fund from the general fund to cover designated expenditure where necessary.

Restricted funds are subject to specific conditions by donors as to how they may be used and are, therefore, restricted funds. The purpose and uses of the restricted funds are set out in the notes to the financial statements.

Expendable endowment funds are funds raised for a specific future funding purpose. The purpose and uses of the expendable endowment funds are set out in the notes to the financial statements.

Financial Instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.

Tangible Fixed Assets

Fixed assets with a cost of less than £500 are not capitalised but charged direct to the Statement of Financial Activities as an expense in the year of purchase.

Depreciation is provided in order to write off the cost of tangible fixed assets over their estimated useful lives at the following rates:

Canopy 5-10 years straight line Seating 7 years straight line Office equipment 3-7 years straight line Fixtures and fittings 3-10 years straight line Software 3 years straight line Plant and machinery 10 years straight line

15

OPERA HOLLAND PARK

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 30 SEPTEMBER 2021

1 ACCOUNTING POLICIES (continued)

Investments

Investments are valued at their fair value.

Debtors

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

Cash at bank and in hand

Cash at bank and cash 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.

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 amount after allowing for any trade discounts due.

2 DONATIONS & GRANTS Restricted General Total Restricted General Total
Funds Funds 2021 Funds Funds 2020
£ £ £ £ £ £
Donations 86,285 244,535 330,820 147,814 417,053 564,867
Grants - - - 613 - 613
Coronavirus Job Retention
Grant - 86,572 86,572 - 125,974 125,974
Founders - - - - 171,000 171,000
Memberships - 521,174 521,174 35,520 255,886 291,406
Productions 92,000 - 92,000 31,500 - 31,500
£178,285 £852,281 £1,030,566 £215,447 £969,913 £1,185,360
======== ========= ======== ======== ======== =========

16

OPERA HOLLAND PARK

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 30 SEPTEMBER 2021

3. CHARITABLE ACTIVITIES

Total Total
2021 2020
£ £
Ticket sales 1,428,984 84,780
Gift aid 115,771 154,398
Theatre tax relief 210,000 119,539
£1,754,755 £358,717
========= =========
All income from charitable activities is unrestricted.
4. OTHER TRADING ACTIVITIES Total Total
2021 2020
£ £
Picnics & Events 49,404 25,236
Fee Income 24,141 5,350
Trading Income 226,475 -
Sponsorship & Advertising 47,500 2,500
£347,520 £33,086
========= =========
5. INVESTMENTS Total Total
2021 2020
£ £
Bank interest 207 5,965
Rental income 19,500 -
£19,707 £5,965
========= =========

17

OPERA HOLLAND PARK

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 30 SEPTEMBER 2021

6 . EXPENDITURE ON RAISING FUNDS

Total Total
2021 2020
£ £
Fundraising costs 91,163 340,892
Fundraising trading - 1,057
£91,163 £341,949
========= =========

All expenditure on raising funds is unrestricted.

7. EXPENDITURE ON CHARITABLE ACTIVITIES

Direct Support Direct Support
Costs costs Total Costs costs Total
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Cost of productions £1,948,582 £1,344,033 £3,292,615 £792,799 £792,493 £1,585,292

18

OPERA HOLLAND PARK

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 30 SEPTEMBER 2021

Analysis of support costs Total Total
2021 2020
£ £
Staff costs 822,065 306,614
Governance 32,531 27,371
Depreciation and maintenance 88,036 103,443
Agency staff 7,160 2,090
Admin 297,890 185,636
Marketing 55,915 143,080
IT 40,436 24,259
---------------- ----------------
£1,344,033 £792,493
========= =========

Governance costs comprises audit fees of £16,000 (2020: £15,800) and other professional fees totaling £16,531 (2020: £11,517).

8. NET MOVEMENT IN FUNDS

8. NET MOVEMENT IN FUNDS
2021 2020
£ £
Net income is stated after charging:
Auditors' remuneration:
Audit fees 16,000 15,800
Other 8,871
-
Operating lease expense - 2,295
Depreciation 88,036 103,441
---------------- ----------------
104,036 130,407
========= =========

19

OPERA HOLLAND PARK

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 30 SEPTEMBER 2021

9 STAFF COSTS 2021 2020
£ £
Salaries and wages 721,180 718,962
Social security costs 61,354 72,914
Pensions 39,532 53,476
Redundancy and termination payments - 157,026
---------------- ----------------
£822,066 £1,002,378
========= =========
The Average number of employees during each year (headcount):
Administration 21 21
========= =========

The total cost of remunerating key management personnel in the year was £212,256 (2020: £227,955).

Two employees received emoluments exceeding £60,000 in the current year with one in the banding £70-£79,999 and the other employee in the banding £130- £138,999 (2020: 3 employees received emoluments exceeding £60,000 with 1 in the banding £70-£79,999 and 2 employees in the banding £110 - £119,999).

TRUSTEE REMUNERATION AND TRUSTEES 'BENEFITS

During the current year and prior year none of the Trustees (or any individuals connected with them) received any remuneration or reimbursement of expenses. The Trustees receive two complimentary tickets to each production in order to carry out their duties.

OPERA HOLLAND PARK

NOTES TO THE FINANCIAL (continued)

YEAR ENDED 30 SEPTEMBER 2021

10 FIXED ASSETS

Cost
At 1 October 2020
Additions
At 30 September 2021
Depreciation
At 1 October 2020
Charge for the year
At 30 September 2021
Net book value
At 30 September 2021
At 30 September 2020		 Office
Equipment
£
63,502
950
64,452
========
48,054
6,163
54,217
========
£10,235
=========
£15,448
=========		 Fixtures
and fittings
£
111,286
95,463
206,749
=========
53,396
25,285
78,681
=========
£128,068
=========
£57,890
=========		 Plant and
machinery
£
206,815
10,304
217,119
=========
69,913
19,490
89,403
=========
£127,716
=========
£136,902
=========		 Software
£
44,410
267
44,677
=========
30,381
12,202
42,583
=========
£2,094
=========
£14,029
=========		 Canopy
£
112,229
13,393
125,622
========
101,673
12,449
114,122
========
£11,500
=========
£10,556
=========		 Seating
£
150,000
-
150,000
========
107,146
12,449
119,595
========
£30,405
=========
£42,854
=========		 Total
£
688,242
120,375
808,617
========
410,563
88,036
498,599
========
£310,018
=========
£277,680
=========

21

OPERA HOLLAND PARK

NOTES TO THE FINANCIAL (continued)

YEAR ENDED 30 SEPTEMBER 2021

11 DEBTORS 2021 2020
£ £
Trade debtors 10,242 -
VAT 20,435 -
Other debtors 43,930 74,628
Prepayments and accrued income 2,521 36,322
Theatre tax credit 307,367 429,911
£384,495 £540,861
========= =========
12 CURRENT ASSET INVESTMENTS 2021 2020
£ £
Shares in group undertakings 52,635 -
========= =========
2,021 2,020
13 CREDITORS: amounts falling due within one year £ £
Trade creditors 201,659 4,742
Other taxation and social security 23,304 62,934
Other creditors 21,961 28,830
Accruals and deferred income 110,683 327,970
£357,607 £424,476
========= =========
Accruals include the amount required to be paid to the pension fund on the early retirement of the previous
GeneralDirector, see note 9.
14 ANALYSIS OF DEFERRED INCOME 2021 2020
£ £
At start of year 142,402 63,400
Amounts released to income (142,402) (63,400)
Amounts deferred in the year 39,828 142,402
Deferred Income £39,828 £142,402
========= =========

Deferred income in 2020 relates to gift vouchers purchased towards future years' performances as well as tickets purchased for 2020 events that could not take place due to Covid 19. In these instances, ticketholders had the option to defer their ticket until 2021 and this amount has been included in Deferred income at year end.

TAXATION

The charitable company is a registered Charity and is not liable to corporation tax in the United Kingdom

15

22

OPERA HOLLAND PARK

NOTES TO THE FINANCIAL (continued)

YEAR ENDED 30 SEPTEMBER 2021

16 **UNRESTRICTED FUNDS ** 01-Oct Investment 30-Sep
2020 Income Expenditure gains 2021
£ £ £ £ £
Unrestricted
General funds £2,160,594 £2,974,263 £(3,383,778) - £1,751,079
========= ========= ========= ========= =========
01-Oct Investment 30-Sep
2019 Income Expenditure gains 2020
£ £ £ £ £
Comparative fund movements in 2020
General funds £2,566,662 £1,367,681 £(1,773,749) - £2,160,594
========= ========= ========= ========= =========

The unrestricted general funds comprise monies that can be used in accordance with the charitable objects of The Charity at the discretion of the Trustees.

17 RESTRICTED AND ENDOWMENT 01-Oct 30-Sep
FUNDS 2020 Income Expenditure 2021
£ £ £ £
Restricted
Grenfell - - - -
Inspire project £26,714 - - £26,714
Benefactor fund - - - -
Salary - - - -
School Matinee - £92,000 - £92,000
Production syndicate £60,000 £86,285 - £146,285
Young Artist Programme - - - -
Role Sponsor - - - -
Founders - - - -
---------------- ---------------- ---------------- ----------------
Total restricted £86,714 £178,285 - £264,999
---------------- ---------------- ---------------- ----------------

23

OPERA HOLLAND PARK

NOTES TO THE FINANCIAL (continued)

YEAR ENDED 30 SEPTEMBER 2021

Comparative fund movements in 2020

01-Oct 30-Sep
2019 Income Expenditure 2020
£ £ £ £
Restricted
Inspire project - £29,783 -£3,069 £26,714
Benefactor fund - £35,520 -£35,520 -
Salary - - - -
School Matinee - £31,500 -£31,500 -
Production syndicate - £97,735 -£37,735 £60,000
Young Artist Programme £24,759 £10,909 -£35,668 -
Role Sponsor - £10,000 -£10,000 -
Founders - - - -
---------------- ---------------- ---------------- ----------------
Total restricted £24,759 £215,447 -£153,492 £86,714
---------------- ---------------- ---------------- ----------------

17. RESTRICTED FUNDS (continued)

Restricted Funds

Founders Fund

Our Founders support the artistic excellence and development of the company. The money is held in a restricted fund and is applied for, by the Directors of the company, for specific items which improve the artistic quality of the season. For instance, a slightly bigger chorus, more strings in the orchestra, a more elaborate set for a specific production, a higher quality soloist or a new commission.

Inspire project

This includes the free tickets for Young People scheme and other outreach work in the community.

Production syndicate

These are contributions towards specific productions supported by the Productions syndicates.

The Young Artist Programme

This enables the company to mount an additional performance which gives unique public performance opportunities to emerging singers, directors and conductors. This programme- acts as a feeder programme to our main stage productions, with several performers and directors subsequently employed as principal artistic personnel on the main stage productions.

Benefactor fund

Benefactors are special supporters of the Charity who believe in the central mission of Opera Holland Park to help everyone access and enjoy opera. Benefactors enjoy a personal relationship with the company. Benefactors donate

£25k which can be paid over, up to 5 years.

24

OPERA HOLLAND PARK

NOTES TO THE FINANCIAL (continued)

YEAR ENDED 30 SEPTEMBER 2021

18 ANALYSIS OF NET ASSETS General Restricted 2021
BETWEEN FUNDS Funds Funds Total funds
£ £ £
Tangible fixed assets 310,018 - 310,018
Current assets 1,798,668 264,999 2,063,667
Current liabilities (357,607) - (357,607)
------------------ ------------------ ------------------
1,751,079 264,999 2,016,078
========== ========= ==========
ANALYSIS OF NET ASSETS General Restricted 2020
BETWEEN FUNDS Funds Funds Total funds
£ £ £
Tangible fixed assets 277,680 - 277,680
Current assets 2,307,390 86,714 2,394,104
Current liabilities (424,476) - (424,476)
------------------ ------------------ ------------------
2,160,594 86,714 2,247,308
========== ========= ==========

25

OPERA HOLLAND PARK

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 30 SEPTEMBER 2021

19. LIABILITY OF TRUSTEES

The Company is governed by its Memorandum and Articles of Association. The Liability of the members (who are the directors) is limited to £1 each (2020: £1).

20. CONTROL

The Trustees consider there to be no ultimate controlling party.

21. RELATED PARTY TRANSACTIONS.

The aggregate of donations received from the Trustees in the year was £29,918 (2020: £34,274).

Tickets were bought by the Trustees in the year totaling £8,437 and Membership fees were paid by the Trustees amounting to £19,965. There were no other related party transactions.

22. OPERATING LEASE COMMITMENTS

At 30 September 2021, the Charity had commitments under non-cancellable operating leases as follows: Plant and machinery

Within one year
Within two to five years		 2021
£
-
-		 2020
£
1,329
-
£1,329

26

OPERA HOLLAND PARK

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 30 SEPTEMBER 2021

23. COMPARATIVE INFORMATION

Notes
INCOME FROM:
Donations
2
Grants
2
Charitable activities
3
Other trading activities
4
Investments
5
Total income
EXPENDITURE ON:
Raising funds
6
Charitable activities
7
Total expenditure
Net movement in funds
8
Balance brought forward at
1 October 2019
Balance carried forward at
30 September 2020
15,16		 Restricted
Funds
2020
£
214,834
613		 General
Funds
2020
£
843,939
125,974
358,717
33,086
5,965
1,367,681
341,949
1,431,800
1,773,749
(406,068)
3,532,085
£2,160,594		 Total
2020
£
1,058,773
126,587
358717
33,086
5,965
3,393,323
341,949
1,585,292
1,927,241
(344,113)
2,591,421
£2,247,308
215,447
153,492
153,492
61,955
24,759
£86,714

27