Company registration number 05541255 Charity registration number 1121007 UK Storyhouse Limited Trustees, Report and Consolidated Financial Statements For the Year Ended 31 March 2022 J i ()l!){lJ()lJ J= CHAMPION ACCOUNTANTS LLP Slatulory Auditors 2nd Floor Refuge House 33-37 Watergate Row CHESTER CH12LE UK Storyhouse Limited Contents of the Consolidated Financial Statements For the Year Ended 31 March 2022 Contents Page Trustees Reference and Adminislralive Details Report of the Trltslees linduding Directors, Reporll 2-12 Independent Audllorfs Rewrt 13-15 Consolidated Slalemenl of Financi81 Aclivilies (including Income arKI Expondilvre Account) 16 Consolidated and Charily Balance Sheet 17 Consolldaled Cash Flow Statèment 18 Notès to the Consolldated Flnanclal Stalements 19-31 UK Storyhouse Limited Trustees Reference and Administrative Details For the Year Ended 31 March 2022 The Trtsstees. who are also the Direct￿¥ lor Iha purposès ol ¢ompany law. presenl their report and the consolidated lindncial sldtements ol the Gha¥ily and its subsidiar4es for the year ended 31 March 2022, which 81e also prepared to meet the requirements lor a Directors, report and accounts lor Companies Act purposes. The Trusleeg have adopted the provisions of the Statement ol Recommended Pra¢ti¢e ISORPI 'A¢¢ounling and Reporting by Ch8rlt18s IFRS 1021 In preparing Ihe annual report and financial statements of the charily. Registered Charity Name UK StoryhoLJse Limited Charity Registration Number.. 1127Q07 Company Registration Number: 05541255 Trustees Iln the perlod and at thg dats of approval): PM Meams (Chair) SM Leech E Boekesteijn GA Clillon CJ Hyndman AL Jon6S K K8rr RA Matchelt AA Owens LC Towers NM Adamu LA Burnell HS Lln JC Howard {8ppoinled 30111120211 Sloryhouse Hunter Street Chester Cheshlre CH1 2AR Principal and RegiStÈrod Office: Company Secretary.. A Bentley The Charity's professional advisars are 8s follows-. Audltors.. Ch8mpion A¢¢otsnlants LLP 2nd Floor Refuge House 33-37 waI￿gate Row Chesler CH12LE Bankers: Lloyds Bank plc 8 Forogale Street Chester CH1 1XP Nalwesl 8ank pl¢ 33 Eastgato Slreel Chester CHI 1LG UK Storyhouse Limited Report of the Trustees {including Directors, Report) For the Year Ended 31 March 2022 Ob'ective5 and Activities storyhoukÈ is a div8rse organisatlon and btjilding. It is a charity, cultural centre, library, theatre. cinema and restaur¢)nt. It is a truly welcoming communal place for people of all ages and b3ckErounds wlth over 1,000,000 vi51tors a year and 128 community gioups callin8 it home. Storyhouse is essentially four things.. an important part of the fabrlc of our local community a combined-arts producer and presenter a large visitor attraction and eommtjnity space an innovatlve, commercially-minded stage producer. Storyhouse also runs the longest opening hours for any UK library. We produce OLJr own theatre as well as welcoming in touring production5 and h05ting one-night comedy and music. Every summer we run Grosvenor Park Open Air Theatre, whith welcomes 25,000 people. We have become an imprjrtant part ol thp. culiural fabric in the reeion and Storyhou5e ha5 grown Into a place of safety and support, especially for our younger participants,. somewhere where they can build thelr careers and re-1maglne their place in the world. 128 community groups use Storyhouse a5 a base for fegular creative activity each month. These groups include local LG8TQ+ and disability groups, refugee integration and support groups, mental health support groups. groups comballng soclal exclu51on by age, cre3tlve groups for young peopl@ left behind by education and social systems, and foster carers. We work extensively wSth young people and children and run a youth theatre, young Company, young leaders proEramme, half term aclivities, summei holiday clubs and now a new schools partnership scheme. We work wlth many local partners to ensure we are reaching and working with children and young people that are haFdest to reach and are the most disadvantaged in the area. We measure our success around the difference we make, how well we reach the excludod, how we manage ourselves, how well we svpport younE people, and how we encourage talent. Between April 21 and March 22, Storyhouse had 994,7741105,7031 customer vislt5 136,528133,1071 tickets bought 169,013144,9511 books borrowed 39,672116,4811 taklng part 3,98919401 new borrowers Signed up to the Ilbrary Makln a Dlfference We relish our role at the heart ol our local communlty, and we have been a beacon of hope during the pandemic, offering as much support a5 we could, to our community. Storyhouse is the largest cultural employer and organisation in Cheshire and a substantial combined arts producer. staging £2.09m of work directly includiE)8 £1.Im in freelance arlist Contracts. We Support 215 fijll time equivalent Iftel jobs including 68fte via direcl employment, 147fte in the freelance economy and have an overall economlc Impact of £21.9m. UK Storyhouse Llmited Report of the Trustees {including Directors, Report) For the Year Ended 31 March 2022 The cultural economy in Cheshire and beyond relles on Stoiyhouse and we have continued to support rjur local partners. including resident company Fallen Angels Dance Theatre IsupporlinE addlct5 In recovery) 3nd Yet Another Carnival Igraduates from our young comp8nvl. Our physical bullding incorporates best practice in accesslble design in both public and back-of-house areas. The approach to accessibility has considered the needs of all usÈr5 including people with mobility impairments. people with visual impalrmenrs. deaf people. older people and small chlldren. Recent surveys of our audiences sl)ow that Il% of our visito¥s are living with a disability. We programme accessibSe performances of all of our produced shows and offer relaxed clnèma screenings in our cinema. We work with groups across the borough including Dementla Attlon Alliance, Age UK, Cheshire Autism Support and Chester Adult Phab Club to ensure users with actèss needs can use all elements of th@ bullding 8nd programme. We have created a free Access Reglster-. a membershlp from whlch users can receive updates about accessible performance%, enables them to book free companion tlckets online and helps us learn about provisions or facilities we can provlde to ensure their visit to Storyhouse is as enjoyable as possible. Ever one has a Volce Storyhouse was built to normalise creativlty In its communitie5, helpsng to bulld a more vibrant cultural democracy. We seek to break down barriers between art and wider communities, empowering everyone 35 an artist aiid 35 a cultural citizen. This is a core component of our organisation and our ambttion15 to grow th15 area of work over the next three years. We strive to make our work inclusive and are already an accesslble and creative pla￿ where people can study, learn and create. Partnership working with local group% and tollegès helps us to dellver a joined up and increasinB5y diverse creative programme. Diverse communities freely actess opptsrtunities to et)gage with, and participate in. the advancement of the debates we begin on our stages, acr055 the library, clnema, Garret theatre 2nd our restaurant, The Kitchen. We h3ve established a broad network of 136 local partner organisations, including 15 key partners with whom we have formal agreements to deliver shared objectives, to place malginalised voices in control of our programme. In 21-22. much of our festival programme was impacted by the Covid-19 pandemlc. Thanks to a grant from the European ReBlonBI Development Fund, Storyhouse laLinched a new six-month community arts project t311ed Chester, Designed by Nalure. The events involved a wide range of existing community groups, and many talented artists In Chester whose opportunityto create work has been affected by the pandemic.. enabling new communities, particularly those who feel less represented within the city, to have the opportunity to co-creatc collectivo activity or events. The festival prc>Èramme for the year included Kaleidoscope, a disability week-long festival, and Storyhou5e Languages, a weekend celebratlng Chester's international community. We secured funding to help us to grow our diversity and inclusion work in the communlty. The funding has enabled us to invest in black led programming as part of our literatsJrÈ festival and to run a communlty library programme celebrating black narratives. A Crèative Communlt The diversity of stories and voices within our borou8h needs to be wellected and heard on all our stages. In April 2021, we slaEed Amy Ng's very well-recelved Miss Julle. Its in-person run was cut short as a result of a national lockdown, so we moved to live streaming. Given its international appeal we set show times to reach audiences in Southeast Asia and the Eastern US seaboard, welcomlng aLJdienees from New York, Hong Kongi and Taiwan to UK Storyhouse Limited Report of the Trustees {including Directors, Report) For the Year Ended 31 March 2022 Storyhou5e for the fiist time. The show later went on tour to York Theatre Royal, Soulhwark Playhouse and 8elgrade Theatre. In October, we produced Antlgone., a fully accessible show for the deaf and hard of hearinE comrnunlty by Hollie McNish. To achieve this the whole show was signed In BSL and we used Integr3ted captionlng throughout the production. Raffle Julien, a deaf actor. took the le8d role of Ismene. This piece attracted new audiences to Storyhouse and highly acclaimed reviews, being called a 'bold and dynamlc piece of accesslble theatre, by The Stage. Between May lo September 2021, we staged 110 perfOrman￿S of home-produced thealre at Grosvenor Park Open Alr Theatre. The Jungle Book, Merry Wlves of Windsor and Prlde and Preludlce were walched by over 25,000 people. A further 14,700 attended performances of Oliver Twist staged at Storyhouse in Christmas 2021, though numbers were dampened due to the resurgence of the Covid-19 pandemic. Chester Literature Festival included 6 community co-curated events that covered the breadth of the Storyhouse community programme. Successes were the events with tl)e LGBTQ older people community and the Childless Community. Poet, Benjamin Zephaniah took up his residency, and his work has been installed acioss the building, provoking an emotional response from many of our commltnitles. This actlvity took place alongside our busy cinema programme and library operalion during the same period. rtln Youn Llves Young Storyhouse Is a collective of eroups for young people laged 5-251 at Storyhouse that meet for regular sessions to provlde young people wlth real-lile experience iii the arts and libiarie5, 35 well as 5upportir5E thetn in g3ining new skills, buildinE friendships, and achieving qualifications. We ar@ working to improve acce55 to the cultural sector by training the next generation of cultural leaders through YounÉ Stoiyhouse. Storyhouse tralns young people to perform In plays, lead reading groups. programme the cinema. run music gigs. market shows, desi8n, budget, programme and deliver their own festlvdls. We run an extensive and diverse programme of activity for young people, that focuses on creativityi including: Young LeadÈts Programme, working with NEET young people aged 16-25 to traln and gain experience working in the tultyral sector. Young Company. programme for those Interested in theatre. In 2022-2023 we will see an expansion to include more production-based learning alongside acting. YoLFng programmers, en3bling young peoplè to galn real Ilfe expèrience of programming. We employed 23 trainees in the financial year- 47% of whom live with long-term health conditions J disabilities. Supporting young people continued to be a priority for us. WÈ are extremely proud of our dynamic and flexible approach to keeping our youth programmes open during the pandemic. But now as we emerge from the pandemlc, we need to review alld grow to ensure we are continuing to meet the needs of young people. Thi5 includes the expansion of our work into hard-to-reach communities. 67% ofyoung people we work with come from targeted areJs of social deprivation and 15% live with a disabilily. WÈ want lo further this reach to ensure we work with those least Ilkely to access culiure. Elected representatives check all our work in the Youth Forum. Our Youth Forum is chaired by Stoyyhouse's Young Trustee, Jack Howald, who also sits on our maln board. and Inclvdes elected representatives from all Young Storyhovse groups aged 8+. UK Storyhouse Limited Report of the Trusteès {including Directors, Report) For the Year Ended 31 March 2022 15.514 young people took part in creative workshops at Storyhouse durin8the financlal year. 11,098 young peoplo saw shows we Produced.. 3,585 saw these for free. We ran 18 regular youth groups, a mixture of in-p¢rson and online. Through these, 230 yOLtng people benefited from 416 creat4ve sesslons, 142 young peoplejoirtèd these groups for free. We worked with 43 young people on our Young Leaders programme, all of whom were not in education, employment or tr31ning, or were deemed at risk of being so hy their support agencies. One of our graduated VOLtng leaders sutcessfully secured a part time job in the library te3m. Another self-PLtbli5hed her own book, whlch she has put in a local children's shop Weasel and the Bug. Her book has been picked up by a publisher who has asked her to extend the story for publishing. Staff and Volunteers Storyhouse operates wlth a dedicated and a stable management team with considerable ope¥ational knowledge. The organisation enjoys the support of an extended family of paSd staff. volunteers, artists, freelance staff and community partners, and to all these we extend our warmest thanks for their hard work 2nd efforts during the last year. Volunteers Volunteers at Storyhouse work alongside us in every part of the business from shows, to helping in the library, to storytelling, to worklng wlth young people and serving customers. They are integral to our organisation. OUT volunteer programme continues to be successful, and we have a superb group of volunteers. As of Marth 22, we had 170 voltsnteers, all having contributed a total of 28,07913,528 In prlor yearl hours to Storyhouse. Publlc Benefit The trustees have referred to the Charit¥ Commi55i0n'5 general guidan￿ on public benefit when reviewing aims and objectives and in plantr)ing future activities. Support and stakeholder relatlon5 OEtr Storyhouse membership scheme continues to grow and as at March 2022 we had 5,413 members14,747 March 20211. We have continued to receive support from our community; through direct donations1£28.3kl, membership1£208kl, volunteering and buying tlckets, lobbyin& aiid helping us dellver servlces to our most vulnerable communities. Corporate member5 continved with their support including Bank of America, Iceland, and Aaron and Partners. MBNA ontinued with their 3-year sponsorship proyamme to support Grosvenor Park Opèn Air Theatre. Our existing funders, The Oglesby Charltable Trust ar)d The Westminsler Foundation Continued to support our Young Leaders programme. Additional support for our programme came from Kenneth Russell-Hardy Will Trust which supported our literature festival and Oe5tination Chester, who supported our Designed by Nature community programme. Flnanclal Perfoymance For the financial year ended 31, March 2022, Storyhouse made an operating surplus of £767k (surplus of £911k in March 20211. Total income for March 2022 was £6.43m. an Increase of E2m crjmpared to the prior year {£4.43m in March 20211. UK Storyhouse Limited Report of the Trustees {in¢luding Directors, Report) For the Year Ended 31 March 2022 FINANCIAL PERFORMANCE 31.03.2022 s,0(￿1 Mar-19 Mar-20 4,0(X> M4r-21 Mar-22 1.0 Ii)coine l£OWI The Covid 19 pandemic contÉnuod to have a si8nilicant effect on Storyhouse, as it did on all performing arts and cultural venues across the UK. Ralsing Funds We have continued to receive support from our communityi through dlrect donations1£28.3kl, membership1£208kl, volunteering and buying tlcket5. Suctessful applicalions to the Arts Council's Cultural Recovery Fvnd and its Continuity Fund have provided £674k to support project costs and reflate our reserves. We have secured sponsorships from commercial partners IE93kl and project funding from trusts and foundations IE195kl which Bllowed u5 to deliver Young Storyhouse activity and communlty festivals and activity throughout the year. Storyhouse Orlglnals Box office income for Storyhouse Originals incre3sed to £1.175m (from E370k in March 20211. Miss julie was streamed to audiences in April 21, as Covid-19 restrictions in place meant no live performances could take place. 495 ticket5 were sold for 11 streamed peiformances. The show, a co-production with New Earth Theatre, later went on tour to York Theatre Royal, Southwark Playhouse and Belgrade Theatre selling over 1.300 tlckets. Between May to Septembef 2021, we slaEed 110 performances of home-produted theatre at Grosvenor Park Open Air Theatre. The Jungle Book, Merry Wlve5 of Wlndsor and Piide and PrejLtdlce were watched by over 25,000 people. A further 14,700 attended performances of oliverTwist st8ged at Storyhouse in Christmas 2021. though numbers were dampened due to the re5vrgence of the Covid-19 pandemic, box offlce Incomé was £402k. Theatre Tax Relief claimed Increased to £88k Ifrom £27k in March 20211. in line with the Increase in expenditure on our home-produced work. The overall contributlon from Stoyyhouse Originals was a 5urplu5 of E258k IEI.9k deficit in March 20211. UK Storyhouse Limited Report of the Trustees (including Dire¢tors' Report) For the Year Ended 31 March 2022 Catering Comp3nv Income from the trading subsidiary, Storyhouse Catering Company, was £2.Im (from just £326k in March 20211. For the early part of the year, the Kitchen lour café & restaurant) and stage programme was still heavily impacted bv the Covid-19 pandeimic restriction5. Throughout the 5uEnmer. we continued to operate Moonlight Flick5, 5creenlng films outdoors at Chester Cathedral, Claremont Farm, Snvgburys and the Carriage Shed. In the autumn, with the easing of government restrictions, activity was able to resume at full capacity and we saw recovery of hospitality and audience numbers in ihe slage and cinema programme. The overall contribution from the Catering Company was a surplus of £280k1£36.5k deficit in March 20211. Government Grants Storyhouse utilised the Government's Coronavirus Job Retention Scheme ICIRSI to help pay a proportior) of wages for employees who had been unable to work any, or all of their usual hours. because of the Covid 19 pandemic. We were successfully able to c105e the Scheme in july 2021. We received £IOlk from the Retention Scheme in the financial year. Assets Net current assets were £1,951k as at March 20221£1,055k in March 20211. Net group assetswere £2,159k as at March 20211£1,391k March 20211. Ov@rall cash at bank and cash in hand balance was £3,327k l£1,9C)5k in Marth 20211. Of this. £790k relates to advance ticket purchases for future shows, a further £613k relates to designated or restricted funds carrled forward to future periods. BALANCE SHEET 31.03.2022 IA%et5 •General Funds De%8nated & Restiicted Funds UK Storyhouse Limited Report of the Trustees (includlng Dlrectors, Report) For the Year Ended 31 March 2022 Prlncl al Rlsks and Uncertalntles The trustees examine major strategic. business and operational risks which the Charity faces on an ongoing basis. A risk register is maintained and is reviewed regularly to confirm that systems have been established to mitlgate and lessen these risks. The trijstees have a Rlsk Management strategy whlth tomprlses- An annual review of the risks the Charity may face and the likelihood af these risks occurring. Particular attention is given to major risks that would prevent the organi5alion from achieving its objectives. The Finance Director reports any changes In status of these risks. including any new risks and any actions taken to the Finance Committee and the main 8oard. The establishment of systems and procedures to mitigate thos@ risks are identified in the annual review. Procedure5 deslgned to minimlse any potential Impact on the charity are implemented should these risks materièlise. Spe¢lflc rlsks arlslng from the Covld-19 pandemlc The risk management strategy identified that the principal risks arising from the Covid-19 pandemic were: Financi31 imp2Ct of COVID-19 restrlrtlons To SUPPOTt witli staff costs, we have utilised the Government's Coronavlrus lob Retentlon Scheme, recelvlng grants of EIOIk. We have also undertaken SiEr)ificant lundraising activity. Successful applicalions to the A¥ts Council's Emergency Response Fund and Cultural Recovery Fund, have supported the organisation's core operating costs and the re-inflation of organisational reserves. Lo55 of earned income Income from our commercS3l activltles: caterlng, clnema, presented programme and events15 essentlal to the Charity's financial stability. Though this has improved against the prior year £3.7m l£1.19m March 20211, thls remains significantly lower than in pre Covid-19 years where earned income accounted for 76% of our total Income, at March 2022 this was 57%. Flnancial risks are addressed through regular monitoring by the finance committee and full boaid, wilh the overall budget receiving a full re-appraisal on at least a quarterly basis. As a result of these measures, though the Covid-19 pandemic continues to be a risk, we begin 22-23 in a secure financial position. Uncertainty regarding audience numbers Throughout the course of the Covid-19 pandemic we have sought to keep our users and our communities close, engaging audiences indoors as well as through outdoor performances over tho summer. We have found creative ways of operating including online activity, not just for our main artistic programme but also our youih programmes and community activity. However. thls has still resulted In much lower actlvlty levels and therefore, audience numbers than prior to the Covid- 19 pandemic, with ticketed evellt5 falling from approxlmately 200k In the prevlous flnancial year to 136k in thls year 133k Marth 20211. Staff and visitor safety Ensuring our building remained a safe and welcoming space during the pandemic has been challenglnE. We have followed government and industry guidance throughout the year and madÈ all necessary adjustments to our building and our operations to ensure a safe space. UK Storyhouse Limited Report of the Trustees (including Dir6Ctors' Report) For the Year Ended 31 March 2022 Operational risks are addressed by the management team through comprehensive and regularly reviewed policies in relation to key issues such as health and safety and reported to the board via the risk register. Economic Challenge5 The risk management 5tfate8y identified that the principal economic challenges facinE ihe Charity were.. Increases to National Living wage and rising cost of Ilvlng In April 2022, the National Living Wage INLWI wlll rlse to £9.50, this repiesents an increase of 59 pence or 6.6%. Wages for over 215 will increase by 9.8% to £8.91 and over 18's by 4.1% to £6.56. Prices for everyday goods tontinue to rise, these inflationary pressures are resulting in demands from employees seeking salary increases to pr@serve their st3nd3rd of Ilving and maintain thelr abS1ity to meet household bills and netessities such as food, clothlng and transport costs. Changes to national insurance contribution rates and thresholds n additional to changes in minimum wage legislation, the rates of national insurance INI) will rise by 1.25°h to lund the NHS and soci31 care in the UK. The increases will apply to contributions paid by employees. the 5elf-employed, and employers. Employers Nl for 2022-2023 wlll be 15.05% for all earnings over £170 pér weÈk1£8,8401. Impatt of Inflation on goods & supplies Consumer price Inllation has risen markedly. This mainly reflects the sharp increases in global energy and tradable goods prices, the latter duÈ to glob31 bottlenecks and the war in the Ukraine UK CPI inflation rose to 5.4% in December 2021, and In the Bank of England's projections show that inflation will remain a challenge for 2022. End of Reduced Rate VAT The VAT rate, which was temporarily reduced by the government as a form of financial support during the Covid-19 pandemic, has been 12.5% since October 2021 and prioT to this, wa5 5DA. On I"Aprll 2022, the late of VAT for hospitality and admissions to cinemas and theatres will revett to 20%. Given the SiEnificance of tl)ese challenges, we must be mindful of the need to be more agile and responsive than ever. Our finance strateEyforthÈ financial year 2022-2023 is sufficiently robust to withstand temporary reductions in income while having in place a sound ihfrastructure that will ensure our long.term financial sustainability. Goln Coneern Your attention is drawn to the goin8 concern note included within the Accounting Polices notes to the Financial Statements on page 19. The board have considered the on8oing 51tu3tion with regards to Covid-lg pandemic on future performance, ag well as other events and conditions, and it h35 been determined that they do not create a materlal uncertainty that casts significant doubt Ltpon ihe CharltV'5 ablllty to Continue as a going concern. The reserves p051tion of the Charity is set out below. The board considers that the Charity has adequate flnanclal resources for ongoing operations and our business planning process, which includes financial projections, has taken into account the current e¢onomlc cllmate. IlkeEy levels of secured Income. funding and trading in the forthcoming year. The Charlty has 2 20-year lease and service contract with Cheshire West and Choster Council, with a rolllng three-year funding cycle agreed over that period. The financial settlÈment for thi% Is ntsw confirmed L¢ntil March 2024. UK Storyhouse Limited Report of the Trustees {includFng Dlrectors, Report) For the Year Ended 31 March 2022 In October 2020, Arts Council England confirmed an extension of National Portfolio grant funding until 2023, to offer some stability during the challenges of the Covid-19 pandemic. The view of the board is that the Charily will contiriue in operational existence for the foreseeable future. Wlth secured income and based on its business plan for the forihcoming year, the trustees have concluded that the Charity wlll be In 8 posltion to continue to meet Its1Sabllltles, as they fall due, for at least twelve months from siening these financial statements. In reaching their concltsslon, the board ha5 revlewed the Charittys monthly cash flow5, applied sensitivity analyses as appropriate, and considered the various fI￿ancial 5UPPOIt mezsures that have been announced by the UK government. After conslderatlon of all factors. the accounts have therefore been prepared on the basis that the Charity is a going concern. Reserves At the end of Maych 2022, total funds carrled forward are £2.ISm IEI.39m In March 20211, of thls £533k relates to designated fund5 and a furthei £80k in fund5 re5trlcted in nature. The board closely monitors the level of reserves throughout the ye3r. Through successful programme activity, careful Ilnanclal management and wlth the supp(Irl of Arts Cau￿tIl England Ithrough the Cultural Recovery Fund) and that of other funders and donors, we have been able to reflate our reserves in this financial year to pre-pandemic levels. The board alms to malntain a level of ¥eseNes to provlde suffi¢lent working capltal that pyotectg the tontlnvity of the Charity's work and provide5 cover for r15k5 such as unforeseen expendlture or fluctuatlon in Income level5. The board reviews the reserves policy with reference to the Charity's strate2y and business plan, to determine the target level of reserves reqiiire.d. At marc.h 2022, the pcjlicy wa% d&4ign?d to providp. available. financial rpsp.rvp.s fnr the following purposes.. to absorb potential box Offi￿ 5hortfa115 to absorb reduttlon in lotal authorlty or oiher fundlng to cover signlflcant unbudgeted tosts le.g.i exceptional cost increases relating to rising inflation, costs of organisational change etcl. The business plan for the financlal year 2022-2023 aims to balance the economlc uncertainty of the coming financial year,. whilst we expect growih in our earned income, we must also navigate reductions in our funding, increased competition for trust and grant monles and inflation3ry pressures resulting in the rising costs of resources and staff. Over611, the board belleves that 3 flÈure of £1.25m of available reseives (defined as unrestricted funds not alreadv invested in fixed assets, or irrevocably committed for other purposes) should L7e sufficient to coverthese requirements. The board consider5 this target (equivalent of 12 weeks turnover) approprlate and provldes sufficient Ilexlbilily In the context of operational requirements. At the end of March 2022, the balance held as unrestricted reseives was £1,545k l£1,055k March 20211 of which El,337k were regarded as free reserves1£719k March 20211. The Charity'% net current assetslllabllStSes hèld wlthln general UnrestrScted Funds, as shown In note 23. We are holding £533k in designated funds1£293k March 20211. Of this, £334k relates to funds received from the Art5 Council Cultural Recovery Fund and Continuity Fund, which has been committed to fund staff, digital projects and equlpment in the next financial period. 40 UK Storyhouse Limited Report of the Trustees (including Directors, Report) For the Year Ended 31 March 2022 strudure Govérnante and Mana ement Governing Document The Charity is a company limited by guarantee whose constitution is set out in a deed of trust, as defined by the Companies Act 2006. Board of Trustees The board at 31st March 2022 Is made up of 14 non-executive unpaid trustees. Board numbers include a dedicated position for a Youn8 Trustee, currently held by lack Howard. The cuirent Chair is Peter Mearns. Governance The governance 3Tran£ement5 ofthe Charity are revlewed on an annual basis. A governance working group, comprised of Trustees and members ol the Executive, supports this process. The group uses the Charity Governan￿ Code as a framework for review, using each of its 7 Principles to assess current performance and to aid continuous improvement. The scope of the review is not only to audit governing documents nd policies, but also to review the board's own p@rForm3n¢e and èffectivene55. As is best Practi￿, the board perÈodically seeks external evaluation and expertise to support a revlew. Recrultment and appolntment of new trustees New appointments to the board are advertised and ratified by the full board. Induction for new trustees is managed by the Chair and Chief Executive. Trustees are appointed on a fixed term basis and are subject to a maximum six-year term. Decision Making The board retains full control ancl approves all major strategic decisions and has ultimate responsibility for the companws conduct and financial stability. Leadership and management of the Charity is delegated to the Chief Executive. The organisation's Chief Executive, Andrew Bentley, has support from four Directors (creative. development. finance and operations) together comprisin£ the organisation's Leadership Team. The board monitors performance and revSews the quality and effectiveness of all information provided to the board. Review of executive pay is undertakon through the Audit and Remuneration Committee, comprising ihe ChaiT Peter Meorns and Vice-chair Sue Leech. The board meets six times a year and is supported by three standing COmFYlitlees.' Finance, Development and Access and Inclusion. All three are governed by terms of referen￿, which set out key decisions which must be approved by the board and those delegated to the standing corllmittees. The affalrs of the company are subject to external scrutiny by Arts Councll England. who are entitled to attend board meetings as observers. The company has a substantial contract for servites with Cheshire West & Chester Courbcil, who undertake an annual review but who are not otherwise involved with the company's governance or board. Storyhouse runs two wholly owned commercial trading subsidiaries, Storyhouse Production Company Limited and Storyhouse Catering Company Limited. 11 UK Storyhouse Limited Report of the Trustees {including Directors, Reportl For the Year Ended 31 March 2022 Trustees Responsibilities in relation to the Financial Statements The oharily trustees (who ar¢ also the directors of Sloryhouse for the purposes of company lawl are responsible for preparing a trustE¥S' annual report and financial slalements in acwrdance wlth appMcabl8 law 8nd Uniled Kingdom Aw)untlng Standards Iuiiiled Kingdom Generally Accepled Accounling Practice). Company law requir8S tha ch81ity trustees to prepaie financial slalemenls for each year, which give a true and fair viow ol Ihe slale of affairs of the charitabl& company and of the Incoming resources and application of resources, including the Income and expendilure. of the charilable company for that p8riod. In prép8ring th6 flnanclaS slalemenls. the trustees ar8 r8qulred to= select suitable accounting policies and then apply them consislently. obs8rv8 th8 melhods and Pfinciples in the Charilies SORP., make judgements and accounling gslimales Ihal are reasonable and priJd8nt., slate wh81hÈr applicable UK aceounting standards have been followed, subj8cI lo any material departures disclosed and 8xplalnad In the flnanelal statements.. prepare the financial slalemen18 on Ihe going concern basis unless 11 Is InapproprSale to presume 11)al the charltable company will conlinué lo oporal&. The Iruslees are rgsponslbfe for keeping adequate accounting records Ihat disclose, with reasonable accuracy al any time, the financial p05ilion ol (he chaiilable company and to enguie Ihat Ihe financial slalementg comply w41h the Companles Act 2006. They are also responsible for s8fequarding the assets of the eharitable company. and hence for taking reasonable steps lor th? prpv?ntion 2nd dplprlian ol fraud and othèr iri6gLJlarlllas. In so far as lh8 trustèès are awar&'. Ihere Is no relevant audit inloimation, of which the eharltable company's audilor is unawar&'. and Ihe twslees have taken all stèps Ihat Ihay ought lo havè taken to make (hem aware of any relevant audit information and lo establish Ihal Ihe auditor is aware of Ihal inlofmalion. Th8 trustees are responsible lor the maintenance and inl8grily ol the corporate and financial inform8lion included on the charilablp rnmpany's w8bsilè. Leglglation in Ihe Uniled Kingdom governing the preparation and disseminallon of financial slalemenls may differ from legislation in olher jurisdictions. In approving the T¥ustees' Annual Report we also approve the Dire¢lols Report, included therein. our cap2Clty as company directors. Slgned by order of the Tiuslees by.. P M Meains Chair D8te'. 12 UK Storyhouse Limited Independent Auditor's Report to Ihe Members and Trustees of UK Storyhouse Limited For the Year Ended 31 March 2022 Oplnion We hav8 audiled the financial siatements of UK Storyhous& Llmited {the 'charily'l and ils subsidiaries (the 'group'l for Ihe year endcd 37 March 2022 whl¢h ¢omprise the consolidated slalemenl ol Ilnandal actlvllies, the consolidated and eharily balance sheet, the consolidated slalemenl of cash fl¢)ws and the notes lo the financial statem6nts,1ncludlng A summary of slgnili¢anl ae¢ountlng policies. The financial reporting framework that has been applied in Ihgir preparation is applicable law and Unilcd Kingdom Aecountlng Siandèrds, Includlng Flnancial Reporiing Standard 102, The Financial Reporling Standard applicable in the UK and Rep(Jblic of Ireland {United Kinodom G8n6rally Accepted Aceounling PrÈelice). In our opinion, Ihe financial stalements.. give 2 true and lair view of the slate of the group's and charitabl8 company's affairs as at 31 M8rch 2022 and of th8 gmup's In¢oming resources and application ol resources. for the year Ih8n ended., have been properfy preparèd In aeeordance with Unlted Klngdom Generally Accepted Accounting PraGlice'. and havè bèen prepared In accordance with the requiremants of the ComFianies Act 2006. Basls for opinion We Conducted our audil In accordance with Internatsonal Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under thosè standards arè further deserlbed in the Auditovs responsibilities for the audit of ihe Bccounls seclion ol our report. We are iftdependènt of thé group and thè charily in accordance with the ethical tequirements that are relevant lo our audit ol the accounts in the UK, including the FRC'S Ethical Stsndard, 8nd we havefuifilled our atheièthlcal r6sponsibllibes in accordance with Ihese requirements. We believell)allh8 audit ewdenco we have obtained i8.%uffiripnt and APPFopil8fe to provide 8 basis for our opinion. Conclusions relating to going concern In auditing the financi81 slalemenls, we have concluded that the trustees, use of the golng concern basis of accounting in the pieparalion of the financial stslemenls is appropriate. Based on the work we have performed. we have not identified any material un¢èrtainti&s relatin9 to events or conditions that, individually or collectively. may cast significaiil doubt on the charity's ablllly lo ¢onllnue as a gc>ing concern for a porlod of at least Iw6lve months from when Ihe financial slalemenls are aulhorised for issue. Our responsibilities the responslbllllies of tho trustees wlh respect lo going Concern are described in the relevanl seclions of Ihis report. Othor Informatlon The Iruslees are responsible lorthe other information. The other informatron comprlses the infomiallon included in Ihe Report of the Trustees. olhèrthan the financial slalemenls and our auditor's report Ihereon. Qur opinion on thè financial statemenls does not cover the other informalion and, except to thè exlenl otherwise explicitly staled in our rewrt, we do not express any lorm of assurance conclusion Ihcr¢on. In conneclion with our audit of thè linanclBI statements. our responsibilily is to rp.ad lh& olhgr information and, in dc>lng so. consider whelher Ihe olhor information is maleiially inconsistent with Ihe financial slaternents or our knowledge obtained in the audlt or olhewise appears lo be ma18¥ially missta18d. If wè Identify such material inconsistencies or apparenl material misslalemenls, we ère required lo determine whether therè is a material rnisslalemenl In the linan¢ial statements or a material misstalemenl of th8 Other information. If, based on the work we have performed, we Conclude that Iherè is a material misstatement of this olh8r information, w6 arè iequired to repori that fact. We havè nothing to raport In this regaid. Oplnions on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the Course of ou¥ audit: thè infomialion giv6n In Ihe Report ol the Trustees. which includes the direclor8' report and the sliatEgic report prepared for the purpos6s of ¢ompony18w. for Ihe f&nandal year for which the financial slalemenls are Prepared is consistent with the financial slatem8nls,' and the diieclors, report and the stralegic report included within Ihe Report of thè Trust8es has beèn prèpared in a￿ordanCe wilh applicable legal Tequirements. 13 UK Storyhouse Limited Independent Auditor's Report to the Members and Trustees of UK Storyhouse Llmlted For the Year Ended 31 March 2022 Matters on which we are required to report by exception In the light of Ihe knowledge and underslaiiding of the group and the charily and ils environrnenl obtained in the course ol the audit, we have not idenlified material missialemenls in the direclors, repc>rt and the sli2tegic report includad withln Ihe Report of the Trustees. We have nothing lo report in respect of Ihg followtng mallers in relal¢on lo which the Companies Act 2006 requires us lo report lo you if. In our opinion.. adequate accountino records have not been kept by the cha¥lty. or returns adequate lor our audlt havè not b8Én received from branches nol vSslled by us. or The charlty's financlal statements not In agre8ménl wllh the accounting records and Telurns- or certain disclosures of trustees, remuneration specified by law are not made., or we have not recelved all the inlormalion and explanations we requSre for our audlt., OT Responslbllltles of Irustees As explained more fully in Ihe slalemenl of Iruslees, responslbllilltts, the Irustees. who are also the diieelors of the charity for the purpose of company law, are ie5porTrslble loi the PTgparalion of the finan¢4al slalem8Nls arid for being salisfied that Ihey give a true and fair view, and lo¥ such inlemal control as lh8 Irusle8s determine is necessary lo nabl8 the preparation ol financial slalern2nls that ale free from material misstalemenl, whether due lo Iraud or error. In preparlt)g the flnanelal statements, the trustees are responsSble Io¥ 8s$essing the group's and tho charity's ability to continu8 as £ going conc8rn, dlscloslng, as applicable, mallers relaled lo qoing ¢on¢grn and using the going concerii basis of accounting unl88S thg trusta8q 8ilhBr inlond to liouidate Ette group or the charilable company or to cease operations. or have no realislic aSlernative bul lo do so. Audito¢s respon51bllitles for the audit of the financial statements Our objectives are lo obtain ieasoTrab18 assurance about whether Ihe financial slaleinenls as a whole are free from material misslatemenl. whether due lo fraud or error. and lo issue an auditor's report Ihat includes our opinion. Reasonable assurance is a high level of assuran￿ bul is not a guaranlee Ihal an audit condlrcled accordance with ISAS {UKI will always delecl a material misslalemenl when il exists. Mis%lalements can arise from fraud or eTror and aro consldcred material If, Individually or in tho aggrogale, Ihoycould reasonably be expected to infiuence Ihe economic decisions of users taken on the basis ol these financlal stalemenls. Irregularities. including fraud. are instances of non-compliance with laws and regulations. We (lesign prOced￿reS in line viih our responsibililies, oullined above, lo dele¢l material misslalemonls in resp6Ct of Irregul8rilies. including fraud. Th6 exlenl lo whlch our proc6dures ar& cap8ble of delecling Irregul8rilies, Includlng fraud. 18 detailed below.. Extent to whlch the audlt15 con51dered capable of delectlng IrregularltSes. Including fraud The responsibility for the prevention and deteclK)n of irregvlarities, Including fraud, lies with th6 Iruste6s arKI with those charged with oovernanea. The objeclives of our audit in respe¢l of iNegularilies and fraud are lo assoss th8 risk ol FnaloTlal misstalemonl of tho financial slalomenls du8 lo fraud, lo obtain sufficient, appropriate audit evidence regarding the assessed risks and lo respond appropriately lo fraud or suspected fraud identified during Ihe au(Jil. Audlt procedures We delermine significanl applicable laws and regulations through discussion with those charged with governance and our own knowledge of ihe industry and design audit procedures lo help identify instances of non-complian wilh those laws and regulations that may have a material effect on the financial slatemenls. We consider the applicable Idws and regulallons lo be the flnan¢lal r¢porting fram&work IFRS 102 and the Companiès Act 20061, Charity Law, thè rélav8nl lax règulallon8 In the LIK, employment law and the H&allh and Safaly al Work Act 1974 and Sal8guarding legislation. Wè conslder the cor)tiol environmènt and the procedures in Pla￿ lo address identified risks, inctuding management override, non-compliance with laws and regulations and to prevènt and delg¢t fraud or irregularlly. Qur procedures re designed lo provide reasonable assurance that the fbnanclal slalemenls are froe from ma18rial misslalemenl or arror and includ&.' énquiriès of m8n8gemgnl and of staff in key compliance functions.. review ol reports from 14- UK Storyhouse Limited Independent Auditor's Report to the Members and Trustees of UK Storyhouse Limited For the Year Ended 31 March 2022 regulators,. review of minutes of meetings of those charged with governance-, review and lesling of manual journals, relevant nominals and signilicanl transactions otjlside Ihe normal course of business- review of financial statement disclosLÈres and testing to supporting documenlalion.. performanc6 of analytical procedures. We aro not responsible for preventing non-compliance and due lo Ihe inherent limitations of an audit. as described above. Ihe au¢Jil cannot be relièd upon to detecl all instances ol non-cornpliance with laws and regulations. A further description ol our responsibilities for the audil of the financial slatements is located on thè Flnallttial R6POrting Council's websllè at.. hll .. IvhAw.frc.or .uklaurtilorsres onsibililies This description forms part of our audilofs roport. Uso of our report This report is made solely lo the cha¥ilable ￿mpanY'S members, as a body. in accordance with Chapter 3 of Part 16 of Ihe Companies Act 2006. Qur audit work has been undertaken so that we might state to the charitable company's members those malters we are required lo state lo them in an auditors. reporl and foT no olhor purpose. To the fullèst gxlenl permilled by13w. we do not accEPt or asbume re5PM51bility Io dnyone other than the charitable Company and the charitable ￿mpanY'S members a3 a body, for our audil work, for this report. or for the opinions we have formed. Susan Harrls MA ACA (Sènlor Statutory Audltorl for and on behalf of Champion Accountants LLP Chartered Aeeountants stalutory Audltor 24 November 2022 2nd Floor Refuge Htsuse 33-37 Watergate Row Chester CH1 2LE 15 UK Storyhouse Limited Consolidated Statement of Financial Activities (Includlng Income and Expendlture Accounti For the Year Ended 31 March 2022 2022 Total Funds 2021 Total Funds Unrestrl¢led Reblrlcted Funds Fund5 Notes Ineomè and èndowmènts from: Donatlon5 and legaclÈs Charltablè 8ctivltlès 2,584,299 165,950 2,750,249 3,669,895 529,372 529,372 41,167 Other tradlng acllvllles Other 3,070,469 88,464 3,070,469 88,464 699,778 27,575 Total Income and endowments 6.272.604 165.950 6.438.554 4,438.415 Expendlture on: RaI￿ng fund5 2,878,283 2,878,283 763.906 Charltable aetlvltles 2,664,595 128,046 2,792,641 2,762,738 Total expenditure 5,542,878 128,046 5,670,924 3,526,644 Net Incomèllèxpèndlture 729,726 37,904 767,630 911,771 Reconclliatlon of funds - Totsl funds brought foNard 1,391,643 42,421 1,434,064 479,872 - Total funds carried foyward 23 2,121,369 80,325 2,201,694 1.391,643 The Slalemenl of Financial Aotivilifys includ88 all gains and losses recognised during the year. All Ir>¢otne and Expgnditure derive Irom continuing aclivilies. The notes on pages 19- 31 form part ol these financial statements 16- UK Storyhouse Limited Consolidated and Charity Balance Sheet For the Year Ended 31 March 2022 Group 2022 Charlty 2022 2021 2021 Notes Flxed assets Tangible assets In*slrnenls 14 15 208.161 336.203 2t)8,161 336.203 208.161 336.203 208.163 336.205 Current assets Stocks t)eblors Cash at bank and in hand 16 17 12,770 402.382 3,327,018 9,420 410.732 1,905,909 194.123 3,301,483 158,770 1.809.721 3.742.170 2,326,071 3,495.606 1.968.491 Liabilities Amounts falling within one year 18 11.7g1,0581 11,270,631) (1,544.4971 1876.5021 Net current assets 1,951,112 1,055,440 1,951,109 1,092,989 Net assets 2,159,273 1,391,643 2,159,272 1.428,194 The funds of the charity. Restricted income fijnds Unrestiicted fvnds: - General fund Designated hjnd 20 80,325 42,421 80,325 42,421 21 1,545.703 533,245 1,055,250 293.972 1,545,702 533,245 1,091,801 293,972 Total funds 23 2,159,273 1,391,643 2,159,272 1.428,194 Thfj consolidated financial statements were approved and aulhorised lor Issue by the TrLtslees on 18 No¥ÈmbÈr 2022 2022 and were slgned on Ihoir behalf by.. PM Mearns Company Number.. 05541255 The notes on pages 19- 31 form part ol thèse financièl statements 17- UK Storyhouse Limited Consolidated Cash Flow Statement For the Year Ended 31 March 2022 Note 2022 2021 Net Ca8hftow from opor8tlng Actlvltles Tax re¢eiNed 25 1.232.318 222.005 1, 171.955 27.675 Cashflow from Investlng &ctlvltles Paymènts lo acquirè langibla fixed assgls 14 133.2141 1132,2521 Net Cashflow from investlng activities Net In¢rea5è In cash and cash equlvalents 133,2141 1.421.109 1132,2Jf21 1,067,278 Cash ar￿ cash equI￿lent$ at beginning of year 1.9D5.909 838.631 Cash arKJ cash equivdlenls al the end ol the year 3,327,018 1,905,909 Cash and cash equivalents conslst of.. Cash al bank and in hand Short term depos11s 3,327,018 1,905.909 Cash ar¥d cash equivalènt 81 thè end Df Ihè yaar 3,327.018 1,905.909 The notes on pages 19- 31 form part of these linancial staternenls 18 UK Storyhouse Limited Notes to the Con501idated FinanGial Statements For the Year Ended 31 March 2022 Accounting Policies Ganaral Informatlon The charity is a prlvate company limlted by guarantee, registered in Enoland and Wales. The address of Ihe regislered ofiice is Sloryhouse, Hunter Slfeel, Chestgr, Cheshir8 CH12AR. A¢countlng convention The linancial slatemenls have been prepared in accordance with Accounting and Reporting by ChaFilies'. Slalemenl of Recommended Pracllco appli¢abl$ lo ¢harfties preparlng thelr accounts in a¢¢ordance wlth the Financial Reporting Standard applicable in th8 UK and Republic of Irgland IFRS10218ffe¢live January 2015 Charities SORP IFRS 1021. the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and Ihe Companies Act 2006. Asseis and liabilities are initially recognlsed at hislorical cost or Iransaclion valvg unless otherwise slated in the relevant accountino po15cy note below. The financial slalements are prepared in slerllng, which is the funclional currency tsf IFte charity. rounded lo lh8 nearest POLEnd. UK Sloryhouse Limited is a public benefit enlily as defined by FRS 102. Ba$ls of con$olldatlon The Consolidated Statemenl of Financial Aciivilies. the Consolidated Balance Sheet and the Consolidated Stat8m8nt of CÈsh Flows ineludÈ thè financial stat6m8nls of the company and ils subsidiaries. Storyhouse Catering Company Limited and Sloryhouse Production Company Limited, m8de up lo 31 Mai¢h 2022. There are uniform policies across the group and intra group transactions are elimlnaled on con801idalion. Consolidation is on 8 line by line basis. A separate Statement ol Financial Aclivilies and Income and Expendilure Account for the charlly lias not beer) prgs8iiled be￿U$0 the chaiily has taken advantage of the ttxemption afforded by Section 408 of the Companies Act 2006. Golng Concern As part ol their going conc8rn ass6ssmÈnl, th& trustéès hav6 consldered the posslb16 Outcomes ol events and conditions that Ihe Charity may face., namely the on-going situation with regards to COVID-19 and the financlal uncertainly in Ihe UK economy. As 8 rèsult of our strtsng financial management, wè begin FY22-23 in a secure financi81 position. with free resetves of £1.338m lup frorn ta.719m in the prior y6arl 8nd cash in tho bank of £3.3m. The Charity has a 20 year lease and seTvice contract with Cheshire Weg18nd Chtssler Council, with a robllng IhTee year funding cycle agreed over that period, Ihe financial settlement for which is now confirmed until March 2024. Nation31 Portfolio grant from Arts Council England has also been confirmed unlil 2023. which provides further secured income for the forthcoming year. In light ol the economic uncertainty, the management team regularly assess what inipacls the events and cix)dillons hav6 on 8 Ils op¢ratitsns and forecasl cash flows. ensurino it has sufflclent Ilquidily to contlnue to meet iEs obligations as they fall due. Financial risks are addressed through iegular mO￿ltO[l￿g by the Fin8nce Commiltee and fLIll board. with Ihe overall budget receiving a full re-appraisal on al loasl a quari8rly basis. As such. the Iwslees consideT that Ihe Charlly has adequate financial resources lor ongoing operalions and our business planning process, which includes financlal projections, has taken Into account the current economic climate and likely levels of secured income, funding and trading in tho forthcoming y¢ar. The view of Ihe trustee5 is thal, whilst they acknowledge tho significant disruption that the Covid-lg pandemi¢ has brought and may continue lo bring. the Charlly wlll Continue In operallonal existence for the loreseeable fulure. The Iruslees have concluded Ihe ChaTlty will be in a position lo continu8 lo meet Ils liabilities as they 1811 du8 for at least twelve months from signing these financial slalemenls. In reaching Iheir condvsion, the Irusl&es have reviewed Ihe Charity's monthly cash flows and applled sensitI￿tY analyses as appropriale. After coNside¥alion of all fACtors, thè Irusl66s conllnue lo adopt the concern bzsls In preparing the financial slatemenls. Th¢ funds of the Charlty G9noral funds are uniestriEled funds which are available for use al the discretion of the Trustees in furlherance ol the general objectives of the ChgTily and which have not beèn designated l(>r othèr purposes. Reslrlcted funds are funds which are used in accordanc8 wlh sp&cilic reslrÉctions imposed by th8 dontsrs or whlch have been raised by the Charily for parlicular purposes. The cost of raising and administering such funds 8rÈ h8Tged against these funds. The alm and use of each rtsslrieted fund is set oul in the notes lo the Financial Slalemenls. .19- UK Storyhouse Limited Notes to the Consolidated Financlal Statements For the Year Ended 31 March 2022 Incoming resources All income is rscogllised in the Statement ol Fbllancial Adivltiès on¢8 lh8 charlty has enttllemenl to Ihè fun(Ss, it is probable Ihal Ihe Sncome be received and the amount can be measured reliably. Grant Income that Is revenue in nature is recognised in full in Ihe year of entitlemenl where the performartcts ondilitsns havè bèen mèt. The point of entillement to tick8t income 18 règgrded as tha completion ol the licketed performance. As such. ticket income is recognised upon complellon ol the performance Ihat the lickel has been issued for. Amounls received lor future performances are included in current liabilities. The olher sources ol Income are reeeived al the point ol delivery of the go(xJs or Services and are therefore recognlsed upon receipt. Resources expended l expendilure Is accounted lor on an a￿ru01S basis and has been classified under h8adlngs Ihat aggrègatè 811 costs relaled to Ihe category. Costs of g8n8raling voluntary Ineome are those ineurred In seeklng voluntary conlribulions and do not indude costs of disseminating information in supptsrt of th6 ehartlable aetlvities. Support costs include central luncfrons and have been allocated lo acllvily cost calogoiigs on o basls ¢onslstenl wtlh the use of resources. Tanglblè flxed assets Depreciation is calculated so as to wrlle off the cosl of an asset over Ihe useful economlc lile of that asset as follows- FSxlures and fittlngs Motor v8hicles Compu18r equlpm@nl Wher& it has been idenlilied that the recoverab￿ amount of 8 fixed asset is below ils nel book value Ihe Esset Ss wAlle down lo its recoverable amounl and th8 impairment105s is recognised in the Slatement of Fin8ncial Aelivilies. stocks Slocks consist ol purchased goods for rosale and oonsumablos. Stocks arts valued 81 Ihe lower of cost or net realisable value. 20Qkn on cost and 100A on cost 25Yd on cost 25% on Cost Debtors Oèblors réeélvablè wilhln onè y88r ar8 rècognised at Iransaction price. Any losses arising from impaiTment are recognised in expenditure. Cash at bank and In hand Cash al bank and in hand includes cash held on deposil w71h a shorl maturity ol three Tyionlhs o¥ less. Creditors and provisions Creditars and provislons a￿ riormally ￿cOun￿sed al thelr selllemenl amount aller allowing for any trade dlscounis due. Deferred income includes.. Income re¢gived for even18 taking place after ihe balance sheet dale Flnanclal instruments Th8 Charity only lias financial as58ts and financial liabilitie5 of a kitKI that qualify as basic fjnanclal Instruments. Basic financial inslrum8nls are ini118lly r8cognised al transaction value and subsequenlly measurèd al theSr settlement value with the eX￿pIlOn of fixed assel investments which are subsequently measured at falr valu8 where thSs can be reliably measured. Operating lease3 Rentals paid under oporaling legses are charged to the income and expendlture on a slraiohl-llne basls over the period of the lease. Taxatlon As a registèred eharily. Ihe company benefits from rates relief and Is generally exempl Irom Incorne Tax, Corporation Tax and Capilal Gains Tax, but not Value Added Tax. Volunteers The value of seNices provided by volunt88rs Is not Incorporated into these Ilnanclal slaiemenls. 20 UK Storyhouse Limited Notes to the Consolidated Financial Statements For the Year Ended 31 March 2022 Financial performance of the charity The consolidaled statemenl of financial acllvities includes the results of Ihe charily's wholly owned subsidiaries, storyhouse Calerlng Company Llmlled and Storyhouse Produclion Company Limlted. The summary financial p8rformanc8 01 tho ¢harily alon8 is'.- 31 March 2022 31 March 2021 Incomo Theatre Tax Relief Gift aid from Sloryhouse Caterfng Company Limited Gift aid from Storyhouse Production Company Limited 3,191,157 88,464 244,097 3,681,062 27.575 3.523,718 3.708.637 Expéndilurè on th￿itabl8 8ctiiAtias 2 792,640 2.760.313 SurplusllD&fidt) for th& year 731.078 948.324 Total funds brought folward 1,428,194 479.870 Total funds carrled forward 2.159272 1428 194 Represented by: Unreslricled funds Reslfjcled funds 2.078,947 80,325 1.385,773 42,421 2.159.272 1.428, 194 21 UK Storyhouse Limited Notes to the Consolidated Financial Staloments For the Year Ended 31 March 2022 Income from donations and legacie5 Total Fund5 2022 Total Funds 2021 Unrestricted Restricted Funds Fund$ Fundlng Memb9ts & PIE￿10 Gimng Sponsorship INcome Trusts and Foundations Project Funding 236,g05 77,500 25.000 73,352 221,535 67,900 123,990 10,452 77,500 190,ÉXK) 73,402 165.900 Grants rèc&lvabl8 Arts Coun¢S1 England Cheshire West and Chester Council G0￿MMent Granls 228.015 1,1fj7,6fj0 775.917 228.015 1,167,610 775,917 228,015 1,362,610 1,655,393 2,584.299 165,950 2.750,249 3.669,895 Of the incomo from donations and legacies rece1￿ in 2022, £2,584,299 {2021'. £3,563,025) was unrestricted and £165.950 {2021'. £106.870I was resllloled. Incomlng resources from charitable activities Unrestrlcled Total Funds Funds 2022 Unrestrlcted Funds 2021 2022 Library operatlon Engagement ekellng Other Income Project Project Proje¢l FundSng and adminlstratlon 17,707 118,253 392,832 17,707 118,253 392,832 580 4.532 33.827 2,554 254 529,372 529,372 41.167 other tradlng actlvltles Unrèstrlctèd Funds 2022 Total Funds Unrèstrlct8d Funds 2021 2022 Sloryh(yJse Prodtjclion Company Limited Sloryhovse Calerin9 Company Llmited 916.710 2,153.759 916,710 2.153.759 372,953 326.825 3,070,469 3,070,469 699,778 22- UK Storyhouse Limited Notes to the Consolidated Financial Statements For the Year Ended 31 March 2022 Net income from trading activity of subsidiary companies The chaiily owned 1 OOOA ofthe share capital of Storyhouse Catering Company Llmlted and Storyhouse Producllon Company Limited at 31 March 2022. Both subsidiaries are regislorod in England and Wales. The prlnclpal 8Ctivlty ol each subsidiary is dela￿led below togethgr wilh Ihgir trading results for the year. Storyhouse Catering Company Limitèd The principal activity of the company was that of catering, cinema and receivlng touring Ihealre al Sloryhouse, Chester. Th& company registralion number Is 10709991. 31 March 2022 31 March 2021 Tumo4er Cost of sales Administration axpenses 2,153,759 1,815,330 57,779 326,825 336,929 26,449 {LossllProfit before taxatlon and for the fKnanclal year 280,650 6,553 Amount glft alded lo the charity 244,097 Retalned eamlngs brought forward and Garried forward 36,553 Cu￿ent assets 734,289 734,288 342,503 379,055 Current liabilities Net current as80ts (36,5521 Called up share ¢apilal R$lained oamings {36.5531 136,5521 23- UK Storyhouse Limited Notes to the Consolidated Financlal Statements For the Year Ended 31 March 2022 Storyhous8 Production Company Llmltèd Thc principal acllvlly ol tho company was that of thealr8 company production at Sloryhous8, Chester. Th8 company regislralion number is 10709994. 31 March 2022 31 March 2021 TUrn0￿r Cost of sales Administration expenses 916,710 993,534 11,640 372,953 396.553 3,975 Loss before taxatlon 88,464 27.575 Corporatlon tax credit (Theatre lax r6lieQ 88,464 27,575 Profit for the flnancial year Current assets CuThenl liabilities 196.408 1￿.407 263.786 263 785 Net current a58ets CHll8d up share capilal Retained 8amings Other income Unrestrlcted Total Funds Funds 2022 Unrestrlcted Funds 2021 2022 The8tre tax relief 88,464 88.d64 27,575 88,464 88,464 27,575 -24- UK Storyhouse Limited Notes to the Consolidated Financial Statements For the Year Ended 31 March 2022 Costs of raising funds Unrestil¢ted Funds Total Funds 2022 Totsl Funds 2021 Sloryhouse Production Company Limited Sloryhouse Caledng Company Limiled 1,005,174 1.873.109 1,005,174 1.873.109 400,528 363,378 2,878,283 2.878.283 763,906 Costs of Charitable Activities by Activity Type Dlrect Costs Support Governance Costs Costs Total Funds Total Funds 2022 2021 Charitable 8ctiiiles Management Flnance Building OKYrh￿ds 2.020,973 2.020.973 544,293 91,627 135,748 2,091.137 496,247 63.872 111,482 544,293 78,627 135,748 13,000 2,020.973 758.668 13,IXIO 2,792,641 2,762,738 Costs of charitable activities were £2.792,641 12021.. £2.762,7381 of which £2,664,595 {2021- £2,698,289) was nrestiicled and £128.04612021'. £64,449) ￿a$ restricted. 10 Net incomel(expenditure) for the year 2022 2021 Thls Is statad aftèr Charging: Depreciation Auditors remuneration Audit of the fjn8ncial statements - A¢¢ounlan¢y sét)AcÉs Operating lease costs.. Land and buildingts Motor ￿hiCle 161,256 167,859 13.000 12.360 36,600 22,019 Trustees, Remun6ration Nonè of the Trustees receivèd any remuneralion or benefits in kn'nd in respect of their duties as a truslee. Expèns8s werè pald to Truste6s durlno Ihe year in amunt of £1.00412021'. £132). 25- UK Storyhouse Limited Notes to the Consolidated Financial Statements For the Year Ended 31 March 2022 12 Analysls of staff costs and the cost of key management personnel Total staff costs were as fo11ows'. Group 2022 Charlty 2022 Group 2021 Charity 2021 Wagos and salaries Social securily costs Pension costs 1,885.684 157,773 62,202 1,253.907 138.435 52.787 1.801.025 139.875 58.261 1,611,117 133.501 55.508 2,105,659 1,445.129 1.999.161 1,800,126 Key management comprises the exeajtive team. The total etllployeo b$nefils of Ihg key managernenl peisonnel were £255.535 (2021.. £272,171). 13 Particulars of employees Thè averaoe number ol staff employed during the year was 721, analysed by function as fdl(w4s.' 2022 Number 2021 Number Project Head office Kitchen 10 14 13 Markeling Production Cinema Touring Trading C2su81 staff 73 53 121 97 During the year the number of employeès who Èamad mc>re than £60,000 was as k)Ilows.' 2022 Number 2021 Numbèr £60.000 - £70.000 £70.000 - £80,000 £80.000- £90,000 Total redundancylt8rminallon paymènls in the year amounted lo £Nil {2021'. £12,497). The charity conlribules to a defined contribution pension scheme for ils omployegs and an equity pensSon scheme for sell employed actors. The sum of £62,202 {2021'. £58,261 I represenls the pension cost lo the charity for the perlod. The lull cost has been eharged agalnsl unreslrlcled funds. -26- UK Storyhouse Limited Notes to the Consolidated Financial Statements For the Year Ended 31 March 2022 14 Tangible Fixed Assets Group and Charity Flxtures and flttlngs Motor Computer veh5cl&s Equlpment Total Cost Al 1 April 2021 Additions 865,304 33.214 14,328 193,740 1,073,372 33.214 Al 31 Mar¢h 2022 898,518 14.328 193,740 1.106,586 D&preclatlon At 1 April 2021 Charge f 1293.972} 479.870 3,601,767 12,695,8é4) 1293.972) As al 31 March 2021 1,055,250 1.09fj,801 22 Unrestricted Funds. Designated Group Deslgnated Funds Charlty Dèdgnalad Funds As al 1 Awil 2021 Incoming resources Oulgoing rèsoure8s 293.972 319.288 180,0151 293.972 319.288 180,015} As al 31 March 2022 533.245 533,246 29- UK Storyhouse Limited Notes to the Consolidated Flnanclal Statements For the Year Ended 31 March 2022 The value of Desiqnat8d Funds relales to general funds received from the Arts Council England Cultural Recov9ry Fund1£334kl and funds genpralpd through the ehkrity's activilies in the year1£199kl. Thè ftjnds have beèn designated by the board of Iruslees for the purpose ol devoloping the Charit￿9 dioltsl capability1£121 kl, invèsting In programming and produclion 1£136kl, investing in peoplo lo grow & divcrsily Income 1£90k), board governanc8 and recwilmenl 1£40kl, purchase of equiprnellt necessary lo deliver new programmes {£81 kl and building and access impiovemenls1£65kl. Group Deslgnated Funds Charlty De￿9ndled Fund5 As al 1 April 2020 Incoming resources Oulgolng resources 293,972 293.972 As al 31 March 2021 293.972 293.972 23 Analysls of Group Net Assets Between Funds Tota 31 March 2022 Tanglble Net Current Flxed Assets Assets Réstrlctéd Funds 80,325 80.325 Unrestrl¢ted Funds General Funds 208.161 1,337,542 1,545,703 Designated Funds 533,245 533.245 Toial Funds 208.161 1.951.fj12 2,159,273 Tothl 31 March 2021 Tangible Net Current Flxed Awts Assèts Restrlcled Funds 42.421 42.421 Unrestrloted Funds General Funds Deslgnaled Funds 336.203 719,047 2Q3,972 1,055,250 293,972 Tolal Funds 336.203 1,055,440 1.391.643 30- UK Storyhouse Limited Notes to the Consolidated Financial Statements For the Year Ended 31 March 2022 24 Related Party TransaGtlon5 Transèetlons wilh gubsidiary companies are disclosed in Nole 6. During Ihe year. a total of £6,834 {2021- £Nill wa$ paid lo InJsl8es lo¥ artistic swvices provided. At the 31 Mayeh 2022, £Nil was due lo Iruslees12021'. £3,100). 25 Reconciliation of group net income resources to net cash Inflow from group operatlons 2022 2021 Net incoming resources Thèatre tax rali6f DepTgcialion of fixed assets DecYease/lincreasel in stock Ilncreaseydecrease in debtors Increasel{decrease) in creditors 767,630 188.4641 161,256 (3,3401 1125.1911 520.427 911,771 {27,575) 167,859 5,845 181,047 166,9921 Net cash Inllow from operatlng actlvltles 1.232.318 1.171.955 26 Analysis of changes in net funds 1 Aprll 2021 31 March 2022 Cash Flows Cash at bank and in hand 1,905,909 1,421,109 3,327,018 27 Guarantee Th8 Charitabl8 Company is limited by guarantee and has no share capilal. The members, liabdily is r￿tri￿ed lo £1 each in accordance with (he Memorandum and Articles. 28 Fundraising standards information The chaiily raises chaiilable funds in-hou58 and does not engage a professional fund-raiser or comniercial participalor lo carry out these a¢livilies. The charity has not bound ilseS1 lo a voluntary scheme for regulating fund- raising and has not recgived any complaints with respect lo its lund-raislng. The charily avoids unreasonaLIl6 intrusion into a person's privacy. unreasonable per5islent approaches and undue PTessuie on per'sons in connection with fund-raising. 31