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2024-03-31-accounts

Company registered number: 05242988 Charity registered number: 1108613

ARCOLA THEATRE PRODUCTION COMPANY

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 7
Trustees' Responsibilities Statement 8
Independent Auditors' Report on the Financial Statements 9 - 12
Statement of Financial Activities 13
Balance Sheet 14 - 15
Statement of Cash Flows 16
Notes to the Financial Statements 17 - 33

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024

Trustees Abdullah Tercanli, Trustee
Gabriel Gbadamosi, Trustee
Ben Todd, Trustee
Andrew Cripps, Chair
Naz Yeni, Trustee
Lynne McKenzie, Trustee (resigned 27 March 2024)
Company registered
number
05242988
Charity registered
number
1108613
Registered office
24 Ashwin Street
London
E8 3DL
Chair of Trustees
Andrew Cripps
Independent auditors
MHA
Statutory Auditors
2 London Wall Place
London
EC2Y 5AU

Page 1

ARCOLA THEATRE PRODUCTION COMPANY (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

The Trustees present their Annual Report together with the audited financial statements of the Charity for the 1 April 2023 to 31 March 2024. 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).

Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Arcola Theatre Production Company is also known as Arcola Theatre.

Public performances continued in both Studio 1 and Studio 2 throughout 2023 and 2024. Audience numbers gradually increased alongside the increase in programming of performances and events.

The names of the Trustees are set out on page 1. Lynne McKenzie retired as a Trustee on 27 March 2024, having been instrumental in the original formation of the Charity. The Trustees and the management of Arcola Theatre wish to record their deep gratitude for her very significant contributions. The sills and composition of the Trustees are kept under regular review.

Objectives and activities

a. Policies and objectives

Charitable objectives

The objectives for which the Charity is formed are to promote, maintain, improve and advance the education and appreciation of the public in the Arts and Sciences. In pursuing these objects, the Trustees have considered the Charity Commission's guidance on public benefit, including that related to fee charging.

Vision

Arcola Theatre's vision is of a genuinely radical theatre constantly reinventing itself to respond to, interpret and have relevance to an ever-changing contemporary Britain.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Strategies for achieving objectives

Mission

Arcola Theatre's mission is to imagine and build a theatre that flourishes within a cultural centre for its diverse local community. One that builds new audiences, generates its own powerful productions, and creates a home for the very best of UK and international theatre companies to visit.

c. Activities undertaken to achieve objectives

In putting the above mission into action we have four major areas of activity (discussed in more detail below), which are professional theatre, talent development, promotion of environmental sustainability and venue operations.

Page 2

ARCOLA THEATRE PRODUCTION COMPANY (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

d. Main activities undertaken to further the Charity's purposes for the public benefit

The main activities undertaken can be described in more detail as follows:

Off West End Professional Theatre

This activity includes the producing and receiving of theatre shows in our 200 and 100 seat studios, plus selected off-site locations, with a strong focus on socially and politically relevant works and diversity of voices.

Talent Development

This is an extensive programme that includes working with specific groups such as young people, older people, Turkish & Kurdish speaking, Global Majority artists and LGBTQ communities, as well as the development of specific skills areas such as new writing, facilitator training and general skills development.

Environmental Sustainability

We continue to make environmental considerations central to our venue operations, and to disseminate our learning.

Venue Operation

Comprising the wide range of work required to provide a cultural and social space for the local community as well as rehearsal and performance spaces for a wide variety of professional and community uses.

Achievements and performance

a. Key performance indicators

Planned turnover for 2023/24 was £1,137k with an unrestricted surplus of £74k.

Income for the year was £1,227,824 (2023 - £1,002,479). This included £658,648 from charitable activities (2023 - £524,884) and £93,367 of donations (2023 - £75,810). Earned income was 54% (2023 - 52%).

Arts Council England regular (NPO) funding provided £307,290 (2023 - £307,290) (25% of income, 2023 - 31%). Expenditure for the year was £1,271,177 (2023 - £1,254,981) including £131,257 (2023 - £130,348) of depreciation funded by allocation to the capital fund. Direct spending on professional theatre amounted to £780,060 (2023 - £829,799), with a further £400,788 (2023 - £363,781) spent on support costs. Direct spending on Talent Development amounted to £57,530 (2023 - £32,002) with a further £8,771 (2023 - £8,897) spent on support costs. Support costs on Venue Operation amounted to £24,028 (2023 - £20,502).

The year-end unrestricted funds of £225,804 (2023 - £149,804) include fixed assets of £130,855, leaving £94,949 as free reserves. This represents 38% of the target level of £250k.

b. Review of activities

Ambition and high-quality art are at the centre of Arcola Theatre’s work, and in our 24th year this has been pursued and achieved through globally relevant programming, showcasing the diverse local community and notable impact upon the UK and international arts world.

Responding to the impact of COVID19 on the arts, we are continuing to be responsive to the changes in financial support for the arts and the increased financial impact upon our audiences and co artists.

After a successful three years, Arcola Outside came to the scheduled end in the summer of 2023. Arcola Outside staged professional performances and was home to many of our participation community performances.

The first in house show produced this year was Possession in June 2023. Written by Sasha Hails and directed by Oscar Pearce.

★★★★ ‘Maze-like and splendid’ The Stage

★★★★ ‘The five-strong cast are excellent, especially Sarah Amankwah as Kasambayi Mabele, whose power, strength and silences are awe-inspiring.’ The Reviews Hub

The second in house show was No For An Answer as part of our summer Grimeborn festival.

★★★ ‘Francie’s touching song Be With Me, beautifully delivered by Katrina Michaels, and Bulge’s Penny Candy, turned into a real showstopper by Vas Constani’ The Guardian

★★★ ‘Arcola’s artistic director, Mehmet Ergen, takes the helm for a production that’s so atmospheric you can almost taste the tzatziki’ The Times

Page 3

ARCOLA THEATRE PRODUCTION COMPANY (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

The third in house production was Sputnik Sweetheart in October 2023. An adaptation of Haruki Murakami’s novel by playwright Bryony Lavery and directed by Melly Still.

★★★ ‘Director Melly Still uses space and movement in inventive ways while Shizuka Hariu’s set design is a wonder’ - The Guardian

★★★ ‘coolly sexy and quietly compelling at others, and hugely involving overall’ The Evening Standard

The fourth in house production was When You Pass Over My Tomb by Sergio Blanco, Adapted and Directed by Daniel Goldman ★★★★★ “A must-see triumph! .. Challenging, stimulating, playful, thrilling, but above all, it defies categorisation.” – The Spy in the Stalls

★★★★★ “Art, at its best, challenges an audience to see the world differently, and When You Pass Over My Tomb achieves this like nothing else I’ve ever seen” – A Young(ish) Perspective ★★★★ “An ambitious and inventive exploration of death” – Broadway Baby ★★★★ “Finger-licking, or rather phalanx licking, good” – North West End

We hosted over 10 companies throughout the year to rehearse and perform their plays.

Grimeborn 2023

Arcola Theatre has always championed adventurous artists, and this has never been clearer than in our Grimeborn programme. Music has the power to connect us, and it has always been our belief that opera should be accessible to all. Our commitment to affordable ticket prices means that everyone can enjoy live performance. The 16th year, we programmed 12 operas, of which 2 world premiers. We produced No For An Answer directed by Mehmet Ergen.

The positive and acclaimed reviews for the 2022 festival and huge interest from audience and participants lead us to programme a 10 week festival in 2023, rather than the 8 weeks we did in 2022.

Renovation of Arcola Main Building

The fund raising for the renovation of the main building continues. We have installed LED lights in Studio 1. We have plans to install LED lights in Studio 2, and have received funding for electrical works to take place in 2024.

Arcola Participation

Arcola Participation have increased delivery throughout 2023/24, producing many more activities and introducing more participants to our groups. We delivered 4 youth theatre programmes for ages 8-16 years, providing youth theatre opportunities to over 100 young people. We introduced a new group, Arcola Refuge Community Company. A grant of £14,356 from London Borough Hackney to run a schools project with Arcola Academy was a great success. This project provided theatre training to 20 young people aged 18-25 years and saw us delivering workshops and performances to six schools across Hackney in 2023 and perform a sell out show to a family audience in December 2023. We have successfully run Arcola 50+, Arcola Refugee Community Company, Arcola Mental Health Company and Arcola Queer Collective across the year. Through our workshops we have engaged with over 250 people providing theatre skills and training. The performances by our community companies have entertained and been supported by over 700 audience members across the year. The dynamic artists who run these community groups and the dedicated participants who take part bring an important cross section of society and our community into our building and offers free opportunities for over 70 people.

Arcola LAB

Between April 2023 and March 2024, the Arcola LAB programme provided 30 weeks of rehearsal space to a range of companies, offering free rehearsal space for the development of new work by ethnically diverse and migrant artists.

As a part of our Arcola LAB initiative, we launched 'Pomegranate' which was designed to support emerging migrant-led or migrant-focused theatre companies. Three companies called Hidden Keileon, Babylon Project, and Hatch each received three weeks of rehearsal space, alongside tailored mentoring sessions led by experts in writing, directing, fundraising, and producing. These sessions included specialised workshops, such as writing for theatre with Sasha Hails, acting with Kathryn Hunter, directing with Mehmet Ergen, playwriting with Rebecca Lenkiewicz, and producing with Leyla Nazli. Through these offerings, Pomegranate provided 337.5 hours over 3 weeks of creative development space and a comprehensive professional development framework, ensuring that participants were equipped to grow artistically and operationally.

Page 4

ARCOLA THEATRE PRODUCTION COMPANY (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

Financial review

a. Going concern

The financial statements have been prepared on a going concern basis. The Trustees have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment.

Arts Council of England investment and future activity:

In November 2022 the charity received the news that the theatre would continue as a National Portfolio Organisation (NPO) and receive regular Arts Council of England (ACE) financial support for the next three successive years, at the same investment level as previous years. In January 2024 ACE announced an extension of the current NPO Programme to 31 March 2027. Fundraising from other sources continues to grow year-on-year.

Plans for the year ahead include

We aim to produce more in-house and co-produce a world class, international programme of diverse and socially engaged theatre in Studio 1 and Studio 2, whilst supporting young artists and up and coming companies. Grimeborn opera festival will continue and be programmed over summer months. Arcola LAB and the 'Pomegranate' programme will continue, as will the full range of Arcola Participation programmes. Community companies currently encompass Mental Health, Turkish Speaking, Arcola 50+, and the new refugee company introduced in 2023 (in partnership with refugee specialists). Companies will stage their work at Arcola and on tour.

Our popular Arcola Youth Theatre will continue to run the current theatre groups plus add two extras - Young AYT (ages 9- 12) & Younger AYT (ages 7-11). Sessions run weekly during term time. Each group will devise and perform in Studio 2 twice a year.

Arcola Academy provides professional level training for 16-25 year olds - prioritising NEET applicants - including training in lighting, set, stage design, stage management, acting, directing & writing. As part of the training, participants devise and perform touring plays for local schools

Based on these assessments and having regard to the resources available to the Charity, the Trustees have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the Annual Report and financial statements.

b. Reserves policy

The Trustees believe the most appropriate level of free reserves required by the Charity to sustain it in the event of the Charity not receiving grants and other incoming resources is £250,000. This will not allow standard-scale productions to be staged and would require skeleton (cost-neutral) programming.

The year-end unrestricted funds of £225,804 (2023 - £149,804) include fixed assets of £130,855, leaving £94,949 as free reserves. This represents 38% of the target level of £250k.

We have significantly increased our reserves from the 2% in 2023 to now at 38% of the target level.

c. Material investments policy

The Charity has no financial investments. Under the Memorandum and Articles of Association, the Charity has the power to invest in any way the Trustees wish.

d. Principal funding

Arcola Theatre is a National Portfolio Organisation of Arts Council England, providing circa 25% of income. There are no other significant funders, with the majority of the balance of funds being earned from charitable activities.

e. Pricing policy

Tickets are priced to maximise revenues without losing access for all. This was achieved through competitive pricing, with a wide range of discounts for target and under-represented groups. Charges are applied for Participation programme participants with bursaries for those less able to pay.

Page 5

ARCOLA THEATRE PRODUCTION COMPANY (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

f. Fundraising

The Trustees have considered the implications of the Charities (protection and social investment) Act 2016 in relation to fundraising activities. The Act aims to protect the public, particularly the vulnerable, from inappropriate fundraising approaches. The primary scope of the Act is "commercial participators" and "professional fundraisers", which refers to commercial organisations engaged by larger charities to engage in direct fundraising from individuals via for example mail, phone and face to face. Since Arcola Theatre does not engage any of these types of organisation there is no direct impact. We have however reviewed our in-house activities in the spirit of the Act and concluded that there are no issues which we need to address.

Structure, governance and management

a. Constitution

Arcola Theatre Production Company Limited is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.

b. Methods of appointment or election of Trustees

The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum of Association.

c. Organisational structure and decision-making policies

The Board of Trustees administers the Charity. Board normally meets quarterly, addressing all aspects of the charitable operations including programming, development, quality & safety, finance and audit.

The Executive Producer, has delegated authority, within terms of delegation provided by the Trustees, for operational matters including finance, employment and artistic performance related activity.

Charitable activities are structured into departments, each having a Manager, working to a Business Plan which includes detailed plans for all business activities. These plans cascade organisational objectives and Key Performance Indicators through departments to individual staff job descriptions.

Plans are developed with input from all staff, Trustees, artists, participants, volunteers and advisors. Plans and associated budgets are reviewed and approved by the Board of Trustees through regular meetings. Additional advice and oversight is provided via Arts Council England National Portfolio management systems.

d. Policies adopted for the induction and training of Trustees

Upon declaration of their interest to be a Trustee, a new Trustee receives the Charity's governing documents, most recent Financial Report and Management Accounts. They meet with the Chair and Senior Management Team for briefing on the organisation and the responsibilities of Trustees.

New Trustees are provided with the Charity's governing documents, minutes of previous meetings and current business plans. They meet the Chair and senior managers for briefing on the objectives, values, ethos, programme and day-to-day activities of the organisation. New Trustees and existing Trustees are provided with up-to-date information on the responsibilities of Trustees and associated best practice, drawing resources provided by Charity Commission and other professional organisations supporting charities.

e. Pay policy for key management personnel

Senior staff pay is approved by Trustees. Rates of pay are benchmarked against peer organisations.

f. Financial risk management

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Small company exemptions

The Trustees Report has been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

Page 6

ARCOLA THEATRE PRODUCTION COMPANY (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

Auditors

Following a rebranding exercise on 15 May 2023 the trading name of the company’s independent auditor changed from MHA MacIntyre Hudson to MHA. A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

This report was approved and authorised for issue by the Trustees and signed on its behalf by:

……………………………

Ben Todd Trustee

Date: 19 December 2024

Page 7

(A Company Limited by Guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024

The Trustees (who are also the directors of the Charity 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 . Under company law, the Trustees must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the Board of Trustees and signed on its behalf by:

................................................ Ben Todd Trustee Date: 19 December 2024

Page 8

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF

Opinion

We have audited the financial statements of (the 'charity') for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence 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.

Page 9

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent 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.

Opinion 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

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

Page 10

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF (CONTINUED)

Responsibilities of Trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 Auditors' 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:

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 Auditors' Report.

Page 11

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF (CONTINUED)

Use of our report

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

Stuart McKay BSc FCA DCha (Senior Statutory Auditor) for and on behalf of MHA Statutory Auditors 2 London Wall Place London EC2Y 5AU

Date: 20/12/2024

Page 12

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024

Note
Income from:
Donations and grants
4
Charitable activities
5
Other income
6
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward
Unrestricted
funds
2024
£
355,419
658,648
46,984
1,061,051
985,051
985,051
76,000
149,804
76,000
225,804
Restricted
funds
2024
£
166,773
-
-
166,773
286,126
286,126
(119,353)
1,809,314
(119,353)
1,689,961
Total
funds
2024
£
522,192
658,648
46,984
1,227,824
1,271,177
1,271,177
(43,353)
1,959,118
(43,353)
1,915,765
Total
funds
2023
£
445,729
524,884
31,866
1,002,479
1,254,981
1,254,981
(252,502)
2,211,620
(252,502)
1,959,118

The Statement of Financial Activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The notes on pages 17 to 33 form part of these financial statements.

Page 13

(A Company Limited by Guarantee) REGISTERED NUMBER: 05242988

BALANCE SHEET AS AT 31 MARCH 2024

Note
Fixed assets
Tangible assets
12
Current assets
Debtors: Amounts falling due within one year
13
Cash at bank and in hand
19
Creditors: Amounts falling due within one
year
14
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more
than one year
15
Total net assets
Charity funds
Restricted funds:
Restricted funds
16
Total restricted funds
16
Unrestricted funds
General funds
16
Total unrestricted funds
16
Total funds
2024
£
149,659
200,366
350,025
(179,057)
1,689,961
225,804
2024
£
1,757,028
1,757,028
170,968
1,927,996
(12,231)
1,915,765
1,689,961
225,804
1,915,765
2023
£
174,384
95,160
269,544
(188,696)
1,809,314
149,804
2023
£
1,902,229
1,902,229
80,848
1,983,077
(23,959)
1,959,118
1,809,314
149,804
1,959,118

Page 14

(A Company Limited by Guarantee) REGISTERED NUMBER: 05242988

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2024

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

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

................................................ Ben Todd Trustee

Date: 19 December 2024

Page 15

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024

Note
Cash flows from operating activities
Net cash used in operating activities
18
Cash flows from investing activities
Purchase of tangible fixed assets
12
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Repayments of borrowing
14,15
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
19
Cash and cash equivalents at the end of the year
19
2024
£
115,158
-
-
(9,952)
(9,952)
105,206
95,160
200,366
2023
£
84,880
(64,128)
(64,128)
(9,707)
(9,707)
11,045
84,115
95,160

The notes on pages 17 to 33 form part of these financial statements

Page 16

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1. General information

Arcola Theatre Production Company is a Charitable Company limited by guarantee and is registered with the Charity Commission (Charity Registered Number 1108613) and Registrar of Companies (Company Registered Number 05242988) incorporated in England and Wales.

The address of the registered office is given in the Charity information on page 1 of these accounts. The Members of the Charity are the Trustees named on page 1.

In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per Member of the Charity.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Arcola Theatre Production Company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are presented in Sterling which is the functional currency of the Charity and rounded to the nearest £1.

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.

Page 17

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.2 Income

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

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the Charity's accounting policies.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.3 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

Page 18

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.4 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Long-term leasehold property - 4% to 20% on cost Plant and machinery - 20% to 50% on cost Computer equipment - 20% on cost

2.5 Debtors

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

2.6 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.

2.7 Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

Page 19

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.8 Financial instruments

The Charity holds basic financial instruments. The financial assets and financial liabilities of the Charity are as follows:

Debtors - trade and other debtors (including accrued income) are basic financial instruments and a debt instruments measured at amortised cost as detailed in Note 13. Prepayments are not financial instruments.

Cash at bank - is classified as a basic financial instrument and is measured at cost.

Liabilities - trade creditors, accruals and other creditors will be classified as financial instruments and are measured at amortised cost as detailed in Notes 14 and 15. Taxation and social security are included in the financial instruments disclosure. Deferred income is not deemed to be a financial liability, as in the cash settlement has already taken place and there is simply an obligation to deliver charitable services rather than cash or another financial instrument.

2.9 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

2.10 Fund accounting

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.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are no estimates or assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Page 20

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

4. Income from donations and grants

Donations
Grants
Total 2024
Donations
Grants
Total 2023
5.
Income from charitable activities
Professional Theatre
Talent Development
Theatre Tax Credits
Total 2024
Unrestricted
funds
2024
£
45,502
309,917
355,419
Unrestricted
funds
2023
£
45,286
307,290
352,576
Restricted
funds
2024
£
47,865
118,908
166,773
Restricted
funds
2023
£
30,524
62,629
93,153
Unrestricted
funds
2024
£
550,515
17,149
90,984
658,648
Total
funds
2024
£
93,367
428,825
522,192
Total
funds
2023
£
75,810
369,919
445,729
Total
funds
2024
£
550,515
17,149
90,984
658,648

Page 21

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

5. Income from charitable activities (continued)

Professional Theatre
Talent Development
Theatre Tax Credits
Total 2023
Unrestricted
funds
2023
£
415,927
13,830
95,127
524,884
Total
funds
2023
£
415,927
13,830
95,127
524,884

6. Income from other trading activities

Venue Operation
Venue Operation
Unrestricted
funds
2024
£
46,984
Unrestricted
funds
2023
£
31,866
Total
funds
2024
£
46,984
Total
funds
2023
£
31,866

Page 22

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

7. Analysis of expenditure on charitable activities - by fund

Professional Theatre
Talent Development
Venue Operation
Total 2024
Professional Theatre
Talent Development
Venue Operation
Total 2023
Unrestricted
funds
2024
£
925,612
45,517
13,922
985,051
Unrestricted
funds
2023
£
977,311
17,498
9,814
1,004,623
Restricted
funds
2024
£
255,236
20,784
10,106
286,126
Restricted
funds
2023
£
216,269
23,401
10,688
250,358
Total
2024
£
1,180,848
66,301
24,028
1,271,177
Total
2023
£
1,193,580
40,899
20,502
1,254,981

Page 23

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

8. Analysis of expenditure by activities

Professional Theatre
Talent Development
Venue Operation
Total 2024
Activities
undertaken
directly
2024
£
780,060
57,530
-
837,590
Support
costs
2024
£
400,788
8,771
24,028
433,587
Total
funds
2024
£
1,180,848
66,301
24,028
1,271,177
Professional Theatre
Talent Development
Venue Operation
Total 2023
Activities
undertaken
directly
2023
£
829,799
32,002
-
861,801
Support
costs
2023
£
363,781
8,897
20,502
393,180
Total
funds
2023
£
1,193,580
40,899
20,502
1,254,981

Page 24

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

8. Analysis of expenditure by activities (continued)

Analysis of support costs

Depreciation
Front of House
Comms and marketing
Technical services
Governance costs
Utilities
Insurance
Telecomms
Professional fees
Bank interest
Memberships
Office and admin
Premises Costs
Governance costs - Auditors' remuneration
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts
Total
funds
2024
£
145,201
54,387
55,472
1,363
20,000
30,860
6,839
2,591
47,351
696
4,487
19,795
44,545
433,587
2024
£
20,000
Total
funds
2023
£
144,046
36,095
49,995
2,087
20,000
22,497
6,396
1,170
18,939
942
4,213
23,206
63,594
393,180
2023
£
20,000

9. Governance costs - Auditors' remuneration

Page 25

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

10. Staff costs

Wages and salaries
Social security costs
Pension costs
2024
£
430,943
30,158
13,903
475,004
2023
£
370,574
27,084
11,904
409,562

The average number of persons employed by the Charity during the year was as follows:

Full time staff
Equivalent full time staff from casual worker pool
2024
No.
10
4
14
2023
No.
8
3
11

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

In the band £60,001 - £70,000

2024 2023
No. No.
1 1

The total amount of employee benefits, including employers social security and employers pension contribution costs, received by Key Management Personnel, was £138,759 (2023: £118,062). The Charity considers its Key Management Personnel to be the Trustees, the Chief Executive Officer and the Executive Producer.

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2023 - £NIL) .

During the year ended 31 March 2024, no Trustee expenses have been incurred (2023 - £NIL) .

Page 26

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

12. Tangible fixed assets

Cost or valuation
At 1 April 2023
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023
Long-term
leasehold
property
£
3,304,570
3,304,570
1,447,495
132,683
1,580,178
1,724,392
1,857,075
Plant and
machinery
£
59,496
59,496
15,514
11,899
27,413
32,083
43,982
Computer
equipment
£
3,096
3,096
1,924
619
2,543
553
1,172
Total
£
3,367,162
3,367,162
1,464,933
145,201
1,610,134
1,757,028
1,902,229

The leasehold improvements are secured against a charge in favour of The Arts Council of England.

13. Debtors

Trade debtors
Other debtors
Prepayments and accrued income
2024
£
8,514
109,535
31,610
149,659
2023
£
14,300
137,906
22,178
174,384

Page 27

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

14. Creditors: Amounts falling due within one year

Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 April 2023
Resources deferred during the year
Amounts released from previous periods
2024
£
10,204
43,944
9,132
40,606
75,171
179,057
2024
£
48,617
32,469
(48,617)
32,469
2023
£
8,428
6,851
6,694
85,121
81,602
188,696
2023
£
-
62,059
(13,442)
48,617

Deferred income comprises grants where the resources were not applied to charitable purposes until subsequent to the year-end and studio hire paid in advance. Movements in deferred income have been analysed above.

The above bank loan relates to an unsecured Bounce Back Scheme facility for £50,000 with interest chargeable at the rate of 2.5% per annum. The loan is repayable in equal instalments over five years, with repayments comprising both capital and interest.

15. Creditors: Amounts falling due after more than one year

2024 2023
£ £
Bank loans 12,231 23,959

The above bank loan relates to an unsecured Bounce Back Scheme facility for £50,000 with interest chargeable at the rate of 2.5% per annum. The loan is repayable in equal instalments over five years, with repayments comprising both capital and interest.

Page 28

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

16. Statement of funds

Statement of funds - current year

Unrestricted funds
General Fund
Restricted funds
Capital fund
Participation
Artistic Programming
Joseph Rowntree Charitable Trust
Green Arcola
Facilities
Digital Accelerator
Total of funds
Balance at 1
April 2023
£
149,804
1,757,432
4,992
14,295
17,854
14,741
-
-
1,809,314
1,959,118
Income
£
1,061,051
-
35,009
112,496
-
-
15,000
4,268
166,773
1,227,824
Expenditure
£
(985,051)
(131,257)
(21,209)
(111,596)
(17,796)
-
-
(4,268)
(286,126)
(1,271,177)
Balance at
31 March
2024
£
225,804
1,626,175
18,792
15,195
58
14,741
15,000
-
1,689,961
1,915,765

Page 29

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

16. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Fund
Restricted funds
Capital fund
Participation
Artistic Programming
Joseph Rowntree Charitable
Trust
Green Arcola
Facilities
Total of funds
Balance at
1 April 2022
£
245,101
1,831,432
8,439
32,995
22,563
14,741
56,349
1,966,519
2,211,620
Income
£
909,326
-
15,897
76,427
829
-
-
93,153
1,002,479
Expenditure
£
(1,004,623)
(130,348)
(19,345)
(95,127)
(5,538)
-
-
(250,358)
(1,254,981)
Transfers
in/out
£
-
56,349
-
-
-
-
(56,349)
-
-
Balance at
31 March
2023
£
149,804
1,757,433
4,991
14,295
17,854
14,741
-
1,809,314
1,959,118

The Capital fund relates to restricted funding used for capital expenditure. The balance represents the value of restricted tangible fixed assets.

The Participation fund represents restricted funding received for community engagement activities, with the balance to be spent in the future.

The Artistic Programming fund represents restricted funding received for theatrical activities, with the balance to be spent in the future.

The Joseph Rowntee Charitable Trust represents a restricted grant awarded to develop a new musical, “The Shadow World”, with the balance to be spent in the future.

The Green Arcola fund represents restricted funding for a local environmental project that is no longer active, and negotiations are ongoing with the funder regarding future use of the balance.

The Facilities fund relates to restricted funding intended for capital expenditure, which when utilised is transferred to the Capital fund.

Page 30

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

17. Analysis of net assets between funds

Analysis of net assets between funds - current period

Unrestricted
funds
2024
£
Tangible fixed assets
130,855
Current assets
286,237
Creditors due within one year
(179,057)
Creditors due in more than one year
(12,231)
Total
225,804
Restricted
funds
2024
£
1,626,173
63,788
-
-
1,689,961
Total
funds
2024
£
1,757,028
350,025
(179,057)
(12,231)
1,915,765

Analysis of net assets between funds - prior period

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total
Unrestricted
funds
2023
£
144,796
167,663
(138,696)
(23,959)
149,804
Restricted
funds
2023
£
1,757,433
101,881
(50,000)
-
1,809,314
Total
funds
2023
£
1,902,229
269,544
(188,696)
(23,959)
1,959,118

Page 31

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

18. Reconciliation of net movement in funds to net cash flow from operating activities

Net expenditure for the period (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities
2024
£
(43,353)
145,201
24,725
(11,415)
115,158
2023
£
(252,502)
144,046
124,884
68,452
84,880

19. Analysis of cash and cash equivalents

Cash at bank and in hand
Total cash and cash equivalents
2024
£
200,366
200,366
2023
£
95,160
95,160

20. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year
At 1 April
2023
£
95,160
(8,428)
(23,959)
62,773
Cash flows
£
105,206
(1,776)
11,728
115,158
At 31 March
2024
£
200,366
(10,204)
(12,231)
177,931

21. Pension commitments

The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge for the year was £13,902 (2023 - £11,904) and at the year end £2,181 (2023 - £1,451) was payable to the fund and have been included in Creditors falling due within one year - Other creditors.

Page 32

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

22. Related party transactions

There were no related party transactions during the year.

Page 33