OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

Registered number: 05694721 Charity number: 1115555

THEATRE503 LIMITED (A company limited by guarantee)

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

THEATRE503 LIMITED

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2 - 10
Independent examiner's report 11
Statement of financial activities 12
Balance sheet 13 - 14
Notes to the financial statements 15 - 27

THEATRE503 LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees Erica Whyman OBE, Chair
Royce Bell, co-Vice Chair
Sabrina Clarke-Okwubanego (appointed 8 September 2020)
Celine Gagnon, co-Vice Chair
Eleanor Lloyd
Emma Rees (appointed 25 June 2020)
Geraldine Sharpe-Newton (resigned 17 November 2020)
Luke Shires (appointed 25 June 2020)
Jack Tilbury
Zena Tuitt
Roy Williams OBE
Company registered
number
05694721
Charity registered
number
1115555
Registered office
Theatre503
503 Battersea Park Road
London
SW11 3BW
Executive Director
/Company Secretary
Andrew Shepherd
Artistic Director / Chief
Executive
Lisa Spirling
Accountants
MHA MacIntyre Hudson
Chartered Accountants
2 London Wall Place
London
EC2Y 5AU

Page 1

THEATRE503 LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the financial statements of the Charity for the 1 April 2020 to 31 March 2021. 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.

Objectives and activities

a. Policies and objectives

IIn shaping the theatre's objectives for the year and planning its activities, the Trustees have considered the Charity Commission's guidance on public benefit, including the guidance on public benefit and fee charging. The theatre relies on grants and the income from fees and charges to cover its operating costs.

In setting the level of fees, charges and concessions, the Trustees give careful consideration to the accessibility of the theatre for those on low incomes.

Affordability and access to the programme are important to Theatre503 and the work produced is intended to be enjoyed by all ages, both locally, London and UK wide.

The programme of activities described in this report focuses very much on embedding the activity of Theatre503 within Wandsworth.

b. Strategies for achieving objectives

The strategies employed to achieve the charity's aims and objectives are to:

• develop, produce, present and support a wide variety of theatre productions for the enjoyment and education of a diverse audience demographic;

Putting these strategies into action the theatre has three major areas of activity which are:

The programme of activities described in this report focuses very much on embedding the activity of Theatre503 within Wandsworth.

Page 2

(A company limited by guarantee)

THEATRE503 LIMITED

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

c. Activities for achieving objectives

This year has been, as for many venues and organisations across the country, the most challenging in our history. Paradoxically, it has seen Theatre503 deliver on its most ambitious business plan aims since Lisa Spirling and Andrew Shepherd took over the venue in 2016. The successful bid for the 503Studio at Nine Elms, and a radical overhaul of a long outdated business and programming model that will see the burden of hire fees eliminated from incoming companies, a new structure to the year’s programme, a new investment fund and an online writers programme. It is a testament to both the leadership and resilience of the team and board, that the theatre emerged from its darkest hour with a bold plan for the future.

In the initial stages of closure and lockdown Theatre503 focussed on communication with audiences and companies, supporting the closure or postponement of shows and accessing all forms of support including the Government's furlough scheme and applying for an Emergency Grant from ACE, which we received.

From April the organisation operated on a skeleton team of 4 part time staff - Artistic Director, Executive Director, Literary Manager and Associate Director, plus two trainee assistant producers. We temporarily ended freelance contracts but reinstated them on a reduced basis on receipt of ACE funding. Two staff members, the Producer and General Manager remained furloughed throughout most of the year, switching to flexible furlough later on.

We were able to begin a road to recovery with the receipt of DCMS Cultural Recovery Funding which enabled us to keep the organisation going into the next financial year and continue our online activities and begin to plan, tentatively for our re-opening.

After months of planning, drafting, preparing and rehearsing – 4 years in the making – we were thrilled to announce that Theatre503 will have a lasting legacy in the form of the 503Studio at Nine Elms. We are due to take possession in early 2023 and will have a permanent space to develop diverse writers of the future from all over the world and on our doorstep to feed into our Latchmere space. We are also committing to make our Latchmere home physically accessible as part of the same transformation project.

It is with increased accessibility in mind that we also eliminated the charging of hire fees to production companies when we re-open. This has been a long held ambition since we set out our four year vision, and one which the impact of Covid-19 on the freelance community has made a financial and moral imperative.

If we are to truly break down barriers to who gets to put work on the stage, it must start with the finances. While the burden of raising funds for productions will still be on incoming companies for most of our programme, we will reduce their liability by 25%. This is something which ACE agreed to fund during our 2019/20 season as a wider pilot and t is also one of the core elements which drives the case for support for our new Slate investment fund and wider general support of the venue.

Not only are we making it easier to stage work, the fund also allows us to invest in the future life of many more productions, so that when the next Mountaintop, Rotterdam, Wolfie and J’Ouvert emerge – we are ready. Furthermore it also gives Theatre503 a much greater level of artistic support and intervention in the work, ensuring all our longer run productions (and the shorter ones) match the ambition and quality of our in house shows.

This is not a decision we have taken lightly and have considered the financial implications very carefully. It has been acheived by restructuring our programming year so that we will no longer programme 4 week runs, as standard – instead offering a 20 night/3 week run for most incoming shows. They will get the same production process, but the production will incur one week less in running costs. It will also increase their average ticket yield where an average of 833 tickets per show is now 70% capacity, up from 53% capacity. We will also introduce a livestreaming element to each longer production, where possible, which will not only serve as a

Page 3

THEATRE503 LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

potential income stream but showcase work around the world. All our shorter runs will be moved to set periods in the year (January and June/July) to free up capacity to focus on maximising ticket income and best quality productions.

Page 4

THEATRE503 LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance

a. Key performance indicators

b. Stage performances

Whilst we were unable to stage performances in the venue to an audience this year, we were able to trial our first every livestreamed production.

The Fairytale Revolution

On Thursday 17th December 9,605 children from across the borough of Wandsworth watched our live streamed panto, followed by 1325 audiences over 5 nights when we opened to the public. The following week. The New York Times in its article on ‘Silly Season: How British Pantomime Looks From Across The Pond’ celebrated “an all-female take on Peter Pan, that had a feminist slant while keeping the genre’s building blocks. I enjoyed its shambolic, riot grrrl attitude”. The cast and creatives, as well as the 503 team did a brilliant job delivering the show. The ambition of the team was realised by the wonderful Chocolate Films, a local social enterprise. We were incredibly proud of the achievement, the reach and the art. We were also able to secure a £15,000 grant from Wandsworth Council to support the production.

Page 5

(A company limited by guarantee)

THEATRE503 LIMITED

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

c. Education, community, literary and artist development

The 503Studio Writers Programme

In Autumn 2020 we launched into an online Writer programme, building on our in-person pilot in 2019. It has proven wildly successful with spaces selling out in less than 2 days, and an advanced booking list which has some courses with waiting lists of up to 5 years. It is a reflection of how few courses exist that don’t have some sort of entry criteria, this has also been echoed in the feedback from course participants across the globe – in particular North America.

These online courses and masterclasses have opened our virtual doors to hundreds of emerging writers from across the UK and beyond. They have reconnected us firmly with our alumni, as well as helped us to build connections with the wider industry. Writers include Jasmine Lee Jones, Brad Birch, Stephen Beresford, Beth Steel, David Eldridge, Tanya Ronder, Simon Stephens and Sabrina Mahfouz (to name a few). Our Share the Drama scheme and initial support from CRF and Emergency Funding means that finance will never be a barrier to attending and we are committing to always offer 25% of our places for free. The team have worked particularly hard to ensure that writers from underrepresented groups are able to access the courses.

By the end of Year 1 of the programme we will have already exceeded our Year 3 income target and when we are able to return to a full programme this will translate into covering the costs of the freelance teachers, the current literary team (with room to grow) and making a contribution to the rest of Theatre503’s core running costs. It is also fair to say there is considerable growth potential, not least in terms of our bespoke 1-2-1 dramaturgical service around the world and the courses themselves. Each course and masterclass already has a roadmap to how to keep writers engaged with all the other aspects of our 503 Studio Writer Development strands, and we will continue to strengthen these ties and evolve the programme over time.

Digital Rapid Write Response

As Paper Cut by Andrew Rosendorf was about to open at 503 before our enforced closure, we explored what could be done to share the play and give access to the writer and the writing, whilst at the same time not diluting the potential future life of the play by moving it all online when the resources to ensure quality aren't yet in place. 503 produced a digital Rapid Write Response for Paper Cut which was incredibly successful. 144 writers from across the country and beyond watched a Zoom reading of the play and a Q&A with the writer. This led to 81 submissions, that were narrowed down to 9 pieces. These were rehearsed and recorded remotely by a volunteer community of directors and actors. We then did our first Your Tube Premiere with 324 people watching on the night. Throughout this time there have been challenges but also many positives and a key one is how the use of digital can open up access to the building and increase our reach.

ImagiNation

Another positive initiative was a new partnership with Theatre Centre on the ImagiNation Project. 19 writers (some established, some our alumni and some our emerging 503 writers, for whom this was their first ever commission) wrote a response to lockdown, these short plays were shared with the nation for them to read, rehearse and perform to camera.

The August Bank Holiday weekend saw the culmination of ImagiNation. Over 500 participants took the plunge to pick one of the brilliant 19 plays and to film themselves with their friends and family. Each day of the bank holiday there was a You Tube premiere of the pieces and a post show talk with the writers. The pieces were genuine, generous and wonderful.

International Playwriting Award

From over 1,700 plays from 45 countries down to 5 extraordinary finalists. The plays were submitted in January, with a team of readers narrowing down the submissions until we went from over 1,7000 to 200, then down to 30 and to our final five. The Five finalists were Ayad Andrews (UK), Gina Stevensen (US), Pravin Wilkins (US), Safaa Benson-Effiom (UK) and Zoe Ashford Cooper (Australia). We were delighted to have on our panel Caro

Page 6

(A company limited by guarantee)

THEATRE503 LIMITED

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

Newling, Roy Williams, Vinay Patel, Sam Marlowe, Daniel Evans with Erica and Lisa. Pravin Wilkins from the US was chosen for his brilliant play Moreno .

503Five

We were able to deliver three out of five R&D processes on our current five writers’ drafts and have two more planned for March and April. These have been key for the writers’ personal development and for their scripts. The opportunity to be in a room with a director and brilliant actors and to hear their words out loud continues to prove invaluable. Alongside their plays, Benedict Lombe, Zak Mahinfar, John Berry, Joel Tan and Annie Jenkins were meeting numerous industry figures for inspiration and advice.

We have just received 548 applications for the 2021-22 residency. Applicants send in the idea for the play they’ve always wanted to write, a 10 page example of their current work and answer some questions about where they are at in their practice, what support they need and what inspires them. This new intake will start with us in Autumn 2021.

It is fitting that at the time we were looking for our next 503Five, J’Ouvert by Yasmin Joseph, one of our 03Five alumni, was in rehearsal for filming as part of the BBC Arts showcase and was due to have a West End run in May 2021 as theatres reopen, as part of Sonia Friedman Productions’ Re:Emerge season.

Page 7

THEATRE503 LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

d. Factors relevant to achieve objectives

Artistic values

• Theatre503 takes the views of audiences very seriously and without compromising the integrity of the programme, seeks to respect the diverse ethnic, faith, sexual orientation, and lifestyles of the community and audience.

Pricing policy

• The theatre's pricing policy reflects its strategy of enabling all within its community, whatever their means, to take part in its activities and to attend the theatre. We increased top price tickets to £17 (£18 on the door) and our Christmas show to £19 in consultation with the Board

Accessibility

Despite the challenges of Covid-19, we remain determined to stay true to our core mission of finding, nurturing and supporting the very best new writers in the world. The writers are the foundation on which we will build our recovery and demonstrate Theatre503’s essential contribution to the country’s creative industry.

Financial review

a. Going concern

• After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future, in the understanding of the increased risk posed as a result of the pandemic. For this reason they continue to adopt the going concern basis in preparing the financial statements..

b. Reserves policy

Page 8

THEATRE503 LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

c. Principal funding

• The majority of the charity's income has continued to derive from in house and curated production box office income and hire fees with support from Arts Council England, The Carne Trust, Wandsworth Borough Council, Concord Theatrical, The Oak Foundation and individual donors.

Structure, governance and management

a. Constitution

Theatre503 Limited was incorporated on 1 February 2006 under the Companies Act 1985 as a private company limited by guarantee, having no share capital, and its objects and regulations are governed by its Memorandum and Articles of Association.

Charitable status was granted on 24 July 2006 under registered number 1115555. The principal objects of the Charity are to promote, maintain, improve and advance education particularly by the promotion of educational plays and the encouragement of the Arts including the arts of Drama, Music, Singing and Movement.

There have been no changes in the objectives since the last annual report.

b. Methods of appointment or election of Trustees

As per the Memorandum and Articles of Association of the Charity, new Trustees are appointed by ordinary resolution.

Not less than fourteen nor more than thirty five days before the date of the meeting, the Charity is given a notice that is signed by a member entitled to vote at the meeting; which states the member's intention to propose the appointment of a person as a Trustee; which contains the details that, if the person were to be appointed, the Charity would have to file at Companies House and which is signed by the person who is to be proposed to show his or her willingness to be appointed.

c. Risk management

The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Theatre503 operates a Risk Register covering Finance, Premises, Audiences, Product, Staffing and Capacity which is reviewed regularly by Trustees. The Artistic Director and Executive Director review operating risk during operations meetings and the Trustees interrogate changes in risk as they occur.

Members' liability

The Members of the Charity guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up.

Page 9

THEATRE503 LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Statement of Trustees' responsibilities

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 their behalf by:

Royce Bell

co-Vice Chair (Trustee)

Date: 31 January 2022

Page 10

THEATRE503 LIMITED

(A company limited by guarantee)

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2021

Independent examiner's report to the Trustees of Theatre503 Limited ('the Charity')

We report to the charity Trustees on our examination of the accounts of the Charity for the year ended 31 March 2021.

Responsibilities and basis of report

As the Trustees of the Charity (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied ourselves that the accounts of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, we report in respect of our examination of the Charity's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out our examination we have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the Charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. We confirm that we are qualified to undertake the examination because we are a member of (enter body here), which is one of the listed bodies.

We have completed our examination. We confirm that no matters have come to our attention in connection with the examination giving us cause to believe:

  1. accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

We have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our work has been undertaken so that we might state to the Charity's Trustees those matters we are required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for our work or for this report.

Signed:

Signed: Dated: 31 January 2022 John Coverdale FCA (ICAEW)

MHA MacIntyre Hudson

Chartered Accountants 2 London Wall Place London EC2Y 5AU

Page 11

THEATRE503 LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Charitable activities
3
Investments
4
Total income
Expenditure on:
Charitable activities
5
Total expenditure
Net income/(expenditure)
Transfers between funds
14
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2021
£
79,380
-
79,380
77,819
77,819
1,561
(2,000)
(439)
13,439
(439)
13,000		 Unrestricted
funds
2021
£
214,032
17
214,049
153,790
153,790
60,259
2,000
62,259
14,969
62,259
77,228		 Total
funds
2021
£
293,412
17
293,429
231,609
231,609
61,820
-
61,820
28,408
61,820
90,228		 Total
funds
2020
£
402,770
30
402,800
432,470
432,470
(29,670)
-
(29,670)
58,078
(29,670)
28,408

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

The notes on pages 15 to 27 form part of these financial statements.

Page 12

THEATRE503 LIMITED (A company limited by guarantee) REGISTERED NUMBER: 05694721

BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within one
year
12
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
13
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
14
Unrestricted funds
14
Total funds		 41,302
58,728
100,030
(23,293)		 2021
£
16,491
16,491
76,737
93,228
(3,000)
90,228
90,228
13,000
77,228
90,228		 21,267
35,194
56,461
(42,687)		 2020
£
18,634
18,634
13,774
32,408
(4,000)
28,408
28,408
13,439
14,969
28,408

The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

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.

Page 13

THEATRE503 LIMITED (A company limited by guarantee) REGISTERED NUMBER: 05694721

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021

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

Royce Bell

(Trustee)

Date: 31 January 2022

The notes on pages 15 to 27 form part of these financial statements.

Page 14

THEATRE503 LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

The Charity is a company limited by guarantee, incorporated in England & Wales, company number 05694721, having its registered office at 503 Battersea Park Road, London, SW11 3BW.

The members of the company 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 £10 per member of the Charity.

Charitable status was granted on 24 July 2006 by the Charity Commission of England & Wales, registered number 1115555.

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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Theatre503 Limited 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.

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.

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.

2.4 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

Page 15

THEATRE503 LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.5 Tangible fixed assets and depreciation

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 basis:

Other fixed assets - over ten years on cost

2.6 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.

2.7 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.

2.8 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.

2.9 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.10 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.

Page 16

THEATRE503 LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.11 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.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

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.

Investment income, gains and losses are allocated to the appropriate fund.

Page 17

THEATRE503 LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. Income from charitable activities

Productions
Education and community
Development
Total 2021
Productions
Education and community
Development
Total 2020		 Restricted
funds
2021

£
21,341
24,000
34,039
79,380
Restricted
funds
2020
£
196,493
19,866
13,877
230,236		 Unrestricted
funds
2021
£
41,250
23,302
149,480
214,032
Unrestricted
funds
2020
£
129,090
19,473
23,971
172,534		 Total
funds
2021
£
62,591
47,302
183,519
293,412
Total
funds
2020
£
325,583
39,339
37,848
402,770

4. Investment income

Unrestricted
funds
2021
£
Investment income - local cash
17
Unrestricted
funds
2020
£
Investment income - local cash
30		 Total
funds
2021
£
17
Total
funds
2020
£
30

Page 18

(A company limited by guarantee)

THEATRE503 LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

5. Analysis of expenditure on charitable activities

Summary by fund type

Core
Productions
Education and community
Development
Total 2021
Core
Productions
Education and community
Development
Total 2020		 Restricted
funds
2021
£
-
57,421
5,439
14,959
77,819
Restricted
funds
2020
£
-
185,094
42,226
-
227,320		 Unrestricted
funds
2021
£
149,506
-
-
4,284
153,790
Unrestricted
funds
2020
£
188,867
-
-
16,283
205,150		 Total
funds
2021
£
149,506
57,421
5,439
19,243
231,609
Total
funds
2020
£
188,867
185,094
42,226
16,283
432,470

Page 19

(A company limited by guarantee)

THEATRE503 LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Analysis of expenditure by activities

Core
Productions
Education and community
Development
Total 2021		 Activities
undertaken
directly
2021
£
-
57,421
5,439
19,243
82,103		 Support
costs
2021
£
149,506
-
-
-
149,506		 Total
funds
2021
£
149,506
57,421
5,439
19,243
231,609
Core
Productions
Education and community
Development
Total 2020		 Activities
undertaken
directly
2020
£
-
185,094
42,226
16,283
243,603		 Support
costs
2020
£
188,867
-
-
-
188,867		 Total
funds
2020
£
188,867
185,094
42,226
16,283
432,470

Analysis of direct costs

Projects and productions
Fees		 Total
funds
2021
£
62,860
19,243
82,103		 Total
funds
2020
£
227,320
16,283
243,603

Analysis of support costs

Page 20

(A company limited by guarantee)

THEATRE503 LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Analysis of expenditure by activities (continued)

Staff costs
Depreciation
Theatre and building
Marketing and development
Fees
Finance
General adminstration
7.
Independent examiner's remuneration
Fees payable to the Charity's independent examiner for the independent
examination of the Charity's annual accounts
Fees payable to the Charity's independent examiner in respect of:
All other services not included above		 Total
funds
2021
£
118,297
2,143
7,799
3,759
7,623
9,659
226
149,506
2021
£
3,000
960		 Total
funds
2020
£
131,799
2,143
18,783
9,954
9,093
12,581
4,514
188,867
2020
£
3,000
960

8. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2021
£
108,749
7,448
2,100
118,297		 2020
£
116,427
10,787
4,585
131,799

Page 21

(A company limited by guarantee)

THEATRE503 LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. Staff costs (continued)

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

Operations
Creatives		 2021
No.
2
4
6		 2020
No.
2
4
6

No employee received remuneration amounting to more than £60,000 in either year.

The Trust Charity considers its Key Management personnel comprise:

The total amount of employee benefits received by Key Management Personnel was £51,276 (2020: £57,699) .

9. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 March 2021, no Trustee expenses have been incurred (2020 - £NIL) .

10. Tangible fixed assets

Cost or valuation
At 1 April 2020
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021		 Other fixed
assets
£
22,920
22,920
4,286
2,143
6,429

Page 22

THEATRE503 LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10.
Tangible fixed assets (continued)
Net book value
At 31 March 2021
At 31 March 2020
11.
Debtors
Due within one year
Trade debtors
Production holding accounts
Tax recoverable
12.
Creditors: Amounts falling due within one year
Trade creditors
Production holding accounts
Accruals and deferred income
13.
Creditors: Amounts falling due after more than one year
Accruals and deferred income		 2021
£
22,400
-
18,902		 Other fixed
assets
£
16,491
18,634
2020
£
807
1,558
18,902
41,302 21,267
2021
£
19,738
555
3,000		 2020
£
16,229
23,458
3,000
23,293 42,687
2021
£
3,000		 2020
£
4,000

Page 23

THEATRE503 LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. Statement of funds

Statement of funds - current year

Balance at
Balance at 1 Transfers 31 March
April 2020 Income Expenditure in/out 2021
£ £ £ £ £
Unrestricted funds
General Funds - all funds 14,969 214,049 (153,790) 2,000 77,228

General Fund

The general fund meets the reserve of £24,000 in the policy set out by Trustees. The remainder has been retained to allow a fund for future projects, productions and organisational development where fundraising falls short. Restricted Funds Representing grants and donations from a number of sources for productions, community and organisational development where funds have been restricted to a particular project or ongoing fund.

Restricted Funds

Representing grants and donations from a number of sources for productions, community and organisational development where funds have been restricted to a particular project or ongoing fund.

Restricted funds

Restricted Funds - all funds
Total of funds		 13,439
28,408		 79,380
293,429		 (77,819)
(231,609)		 (2,000)
-		 13,000
90,228

Page 24

(A company limited by guarantee)

THEATRE503 LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds - all funds
Restricted funds
Restricted Funds - all funds
Total of funds		 Balance at
1 April 2019
£
47,555
10,523
58,078		 Income
£
172,564
230,236
402,800		 Expenditure
£
(205,150)
(227,320)
(432,470)		 Balance at
31 March
2020
£
14,969
13,439
28,408

15. Summary of funds

Summary of funds - current year

Balance at
Balance at 1 Transfers 31 March
April 2020 Income Expenditure in/out 2021
£ £ £ £ £
General funds 14,969 214,049 (153,790) 2,000 77,228
Restricted funds 13,439 79,380 (77,819) (2,000) 13,000
28,408 293,429 (231,609) - 90,228
Summary of funds - prior year
Balance at
Balance at 31 March
1 April 2019 Income Expenditure 2020
£ £ £ £
General funds 47,555 172,564 (205,150) 14,969
Restricted funds 10,523 230,236 (227,320) 13,439
58,078 402,800 (432,470) 28,408

Page 25

(A company limited by guarantee)

THEATRE503 LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Restricted
funds
2021
Unrestricted
funds
2021
£
£
-
16,491
13,000
87,030
-
(23,293)
-
(3,000)
13,000
77,228		 Total
funds
2021
£
16,491
100,030
(23,293)
(3,000)
90,228

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Restricted
funds
2020
£
-
13,439
-
-
13,439		 Unrestricted
funds
2020
£
18,634
43,022
(42,687)
(4,000)
14,969		 Total
funds
2020
£
18,634
56,461
(42,687)
(4,000)
28,408

17. Pension commitments

The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund.

The pension cost charge represents contributions payable by the Charity to the fund and amounted to £2,100 (2020: £4,585) .

No amounts (2020: £Nil) were payable to the fund at the balance sheet date and are included in creditors.

Page 26

(A company limited by guarantee)

THEATRE503 LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Related party transactions

The total amount of donations made by trustees or connected parties without conditions during the year was £9,300 (2020: £10,003) .

One of the trustees provided advances totalling £NIL (2020: £15,000) to support the charity's cash flow, of which £15,000 (2020: £15,000) was outstanding at the end of the year.

There were no other material related party transactions requiring disclosure during the period (2020: £Nil) .

Page 27