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2023-07-31-accounts

UNIVERSITY OF DERBY THEATRE LIMITED

(A company limited by guarantee)

Trustees’ Annual Report and Financial Statements

For the year ended 31 July 2023

Company Registration Number 06858792 Registered Charity Number 1129005

UNIVERSITY OF DERBY THEATRE LIMITED (A company limited by guarantee not having a share capital)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

CONTENTS

Members of Board, Officers and Professional Advisors …….…………….…………………………….…………….. 3 Trustees' Annual Report ……………………………………………………………………..…………………… 2 - 10 Independent Auditor’s Report to the Members of University of Derby Theatre Limited………………………....11 - 14 Statement of Financial Activities (incorporating the Income and Expenditure Account) …..……………………….. 15 Balance Sheet as at 31 July 2023………………………………………………………………………………………16 Notes to the Financial Statements ………………………………………………………………………………...17 - 29

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UNIVERSITY OF DERBY THEATRE LIMITED (A company limited by guarantee not having a share capital)

MEMBERS OF BOARD, OFFICERS AND PROFESSIONAL ADVISORS AS AT 31 JULY 2023

REGISTERED IN ENGLAND AND WALES No. 06858792

CHARITABLE STATUS

The Company is a registered charity.

DIRECTORS AND MEMBERS

Professor Kathryn Mitchell Lara Ratnaraja (resigned 31 October 2023) Richard Gerver Margaret Buddle Professor Keith McLay Jill Adamson Michael Pinchbeck Ruchita Shaikh (resigned 10 October 2023) Susan Ambler Elizabeth Nelson (appointed 15 June 2023) Georgina Niemtus (appointed 10 May 2023)

LEADERSHIP TEAM

Sarah Brigham – Artistic Director & Chief Executive Jenny Langlands – Executive Director (resigned October 2022) Iain Hayes – Executive Director (joined July 2023) Caroline Barth – Creative Learning Director

AUDITOR

BDO LLP Two Snowhill, Birmingham B4 6GA

SOLICITORS

Veale Wasbrough Vizards LLP Narrow Quay House, Narrow Quay, Bristol BS41 4QA Shakespeare Martineau LLP No. 1 Colmore Square, Birmingham B4 6AA

REGISTERED OFFICE

Kedleston Road, Derby DE22 1GB

BANKER

HSBC Bank plc 1 St. Peter’s Street, Derby DE1 2AE

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UNIVERSITY OF DERBY THEATRE LIMITED TRUSTEES’ ANNUAL REPORT

The Trustees present their Annual Report and Audited Financial Statements for the year ended 31 July 2023. The Trustees' Annual Report serves the purposes of both a Trustees' report and a Directors’ report, under company law.

This Annual Report describes the main trends and factors underlying our development, performance and position during the year ended 31 July 2023, as well as those likely to affect us in the future. The financial statements have been prepared in accordance with 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).

Structure and Management

University of Derby Theatre Limited is a company limited by guarantee (registration number 06858792) and does not have share capital. It is also a registered charity. The charitable company's principal address is at 15, Theatre Walk, Derby.

The charitable company’s governing document is the Memorandum and Articles of Association, 25 March 2011. Under the terms of the Memorandum and Articles of Association, each Trustee has undertaken to contribute a maximum of £1 in the event of a winding-up of the charitable company. The Trustees are also the Directors of the charitable company for the purposes of company law.

The charitable company recruits its Trustees from the artistic community and from the senior management of the University of Derby and the training and induction of new Trustees is performed by both internal and external courses and advice. The Trustees who served during the year and up to the date of signature of these accounts were as follows:

Professor Kathyrn Mitchell Lara Ratnaraja Richard Gerver Margaret Buddle Professor Keith McLay Jill Adamson Michael Pinchbeck Ruchita Shaikh Susan Ambler Elizabeth Nelson Georgina Niemtus

The operational management of the business is delegated to the charitable company’s leadership team led by the Chief Executive. The Executive Director is the day-to-day operational manager of the business. No Trustee had any interests in any contract made by the charitable company during the financial year. The setting of pay for key management personnel is set by the Trustees and delegated on an operational basis to the Chair, who will undertake the review on an annual basis. Increases in pay are awarded in line with meeting personal annual objectives and in line with employee pay rise percentages.

The charitable company has a close relationship with the University of Derby. The relationship realises that the operations of the two organisations are closely inter-related and therefore the impact of decisions taken in one organisation must be assessed on the other entity. There are service level agreements with the University of Derby for the provision of services to the Theatre and for the rental of space to the College of Arts, Humanities and Education for its Theatre Arts courses. The charitable company is controlled by the University of Derby and, as such, is consolidated into the annual results of the University of Derby Group.

The Trustees endeavour to identify, monitor and control the major risks faced each financial year when preparing and monitoring the annual budget. The Trustees approve the annual budget, all major capital expenditure and other major financial and property matters. The trustees also set the strategy for the business, monitor the performance of the business and review health and safety in the charitable company.

The system of internal control is designed to manage, rather than eliminate the risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify the principal risks to the achievement of policies, aims and objectives: to evaluate the nature and extent of those risks; and to manage them efficiently, effectively and economically. This process has been in place for the year ended 31 July 2023 and up to the date of the approval of the financial statements. The Trustees

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UNIVERSITY OF DERBY THEATRE LIMITED TRUSTEES’ ANNUAL REPORT

confirm that there is an ongoing process for identifying, evaluating and managing the charitable company’s significant risks using a Corporate Risk Register. The charitable company’s policy in respect of the payment of creditors is to comply with terms where payment is made 30 days after receipt of a valid invoice. The charitable company’s accounts are filed with the Registrar of Companies and with the Charity Commission due to its registration.

Objectives and Activities

The main activities of the charitable company are the running of a learning and community theatre both through in-house produced, and received work, and for the use of the theatre space by University of Derby College of Arts, Humanities and Education students.

Mission

We serve our community through creativity. We collaborate with the people of our city and region to make theatre that speaks for Derby and the county. We provide a space where artists can develop, and we have a unique partnership with the University of Derby. Our bold and brilliant work goes on tour across the country.

Vision

We strive to be the theatre Derbyshire deserves, working in ways that transform our region. Empowering artists, audiences and participants to tap into their potential and achieve. We create experiences that uplift hearts, broaden horizons and build change for the better.

Over the coming years, our programme aims to:

Public benefit statement

The trustees have regard for the Charity Commission guidelines on public benefit in planning the activities of the Theatre. The Theatre continued to produce and present a diverse range of theatre, dance, music, comedy and circus across our main stage and studio spaces by professional companies and artists and local amateur talent. The learning programme went from strength to strength, with the Creative Learning team working in schools, community settings and in the Theatre, itself delivering a full programme of learning activities for all ages.

Financial Review

The main sources of funding for the year ended 31 July 2023 were ticket sales income and grant funding from the University of Derby (UoD) and Arts Council England (ACE). Additional income was derived from the rent charged to the College of Arts, Humanities and Education for the use of teaching and rehearsal space along with funding from trusts and foundations and other box office and commercial sources such as catering, bars and hires.

The expenditure of the charitable company is in support of Artistic Programming, including artist development and the learning programme. It also supports the management and running of the Theatre including administration and maintenance of the Theatre premises.

The Memorandum and Articles of Association govern the Trustees’ investment powers, which permit the charitable company’s funds to be invested in, or on, such investments, securities or property as may be thought fit. All surplus funds are invested in bank or money market deposits. No investments are made in any other securities, financial instruments, or properties not related to the primary activities of the charitable company.

The Statement of Financial Activities for the year ended 31 July 2023 is set out on page 15.

The total income from trading activities of the charitable company during the year was £5,074,702 (2022: £3,842,669) including grant funding of £550,000 (2022: £500,000) and £326,000 (2022: £326,000) rental income from the University of

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UNIVERSITY OF DERBY THEATRE LIMITED TRUSTEES’ ANNUAL REPORT

Derby. This was applied to total expenditure in the year of £4,819,167 (2022: £4,674,385).

Unrestricted funds fell modestly in the year by £346,183 (2022: £26,673). There was an inflow of restricted funds £705,834 (2022: outflow £994,749), as several new projects have been won. The Theatre also utilised £159,319 of its designated reserve (2022: increase of £281,043) in accordance with the aims of the designated reserve to support the ongoing sustainability of the Theatre.

A formal loan agreement exists relating to the intercompany loan from the University of Derby to University of Derby Theatre Limited for a maximum of £2,500,000, details of which can be found in Note 13.

Going Concern

After making appropriate enquiries, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. The Theatre also has a strong cash balance that the trustees feel mitigates the current reserve position and gives a measure of safety while reserves are built up. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies (Note 1).

Fundraising

Section 162a of the Charities Act 2011 requires us to make a statement regarding fundraising activities because we have an external audit. We undertake fundraising activities such as asking for donations to support the Theatre generally or for specific activities. We do not use professional fundraisers or “commercial participators” or indeed any third parties to solicit donations. We are therefore not subject to any regulatory scheme or relevant codes of practice, although we do follow the Fundraising Regulator code of practice. We have not received any complaints in relation to fundraising activities.

Reserves Policy

In accordance with Charity Commission guidelines, the charitable company is required to ensure the sustainability of the organisation and maintain operating reserves to offset the impact of unforeseen events and operating cash flows. The total funds of the charitable company are £5,875,579 (2022: £5,515,928) and are discussed separately below.

While the trustees believe that, given the current economic and funding environment, an appropriate level of unrestricted general reserves would be approximately three months of overhead expenditure, or approximately £450,000, currently the Theatre has unrestricted general reserves deficit position of £(99,901) (2022: surplus position of £147,121). The Trustees are aware that this falls short of the desired position but is understanding of the reasons for this position and supportive of the position post-pandemic. In the current economic climate, the Board recognises that whilst building reserves further remains a key aim, returning a surplus in each financial year is challenging. As below, the Board plan to leverage the designated reserve fund to continue to develop audiences and improve returns.

The trustees have therefore carefully considered the Theatre’s financial position and note the Theatre has a substantial designated reserve of £414,355 (2022: £573,674), which has been established for the specific purpose of building the future sustainability of the Theatre. It is anticipated approximately £60,000 will be used in 23/24, with a timeline for use of the remaining fund being developed in 23/24. In 2023, £159,319 (2022: £21,782) was spent to support building new audiences to drive increased future income. Any release of designated funds requires Trustee Board approval.

Lastly, unrestricted funds include a revaluation reserve of £3,626,897 (2022: £3,566,739) which will only be realised upon the disposal of the theatre building lease. Management has no intention of disposing of the theatre building in the foreseeable future.

The restricted funds position at the year-end was £1,934,228 (2022: £1,228,394) and were not available for general purposes.

Principal Risks and Uncertainties

The Theatre faces two principal risks in the medium term. These are the continued difficulty in rebuilding audience numbers post covid and an increasingly competitive fund-raising environment. Both of these are exacerbated by the cost-of-living crisis with the public having less discretionary spending available. In order to mitigate, the Theatre is utilising its designated reserve to fund an audience development post to help engage audiences.

The current inflationary environment has also introduced a higher degree of uncertainty in the budgeting cycle. While some

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UNIVERSITY OF DERBY THEATRE LIMITED TRUSTEES’ ANNUAL REPORT

funders have awarded uplifts to grants to mitigate this, these are not guaranteed, so careful planning is needed to ensure early sight of increases is known where possible.

Risks are considered at quarterly board meetings in the risk register, and this is regularly updated.

Achievements and performance

Derby Theatre continues to be an Arts Council England National Portfolio Organisation and this funding is secured until March 2026. The Theatre has had a successful year, continuing to produce, co-produce and co-create high quality artistic productions for the main stage. We continued to work on large scale collaborative partnerships with local and national significance including: Derby Reimagine (ACE’s YPPF programme), Derby CAN (ACE’s Producing Hub programme, match funded by the Paul Hamlyn Foundation); and Plus One (funded by the Esmee Fairbairn Foundation).

Derby Theatre is a key partner in Derby’s Cultural Education Partnership (DCEP), an initiative which has been developed in response to the Arts Council of England’s Cultural Education Challenge, launched in October 2015. The partnership is steered by Arts Council England National Portfolio Organisations: Derby Theatre, QUAD, Déda, Derby Museums, Sinfonia ViVA, Baby People and EMCCAN (East Midlands Caribbean Carnival Arts Network).

Our in-house production season opened with a new adaptation by Neil Bartlett of Jekyll and Hyde, co-produced with Queen’s Theatre Hornchurch. Directed by Derby Theatre artistic director Sarah Brigham and hugely well received (4-stars, The Guardian) the show was seen by over 7,500 in Derby.

Christmas 2022 saw the return of Toby Hulse’s adaptation of The Wind in the Willows, a revival of our 2021 outdoor production. Another critical success, director Trina Haldar’s “warm and familiar” (the Stage) production was a welcome return to full Christmas operations, post-pandemic.

Meanwhile, in the studio, we presented a new retelling of Ugly Duckling by Emma Reeves. Produced in association with Tutti Frutti production and York Theatre Royal. “Delightful, beautifully detailed and really quite magical” (Mumsnet) was the overwhelming reaction to this show aimed at the youngest audience.

In March, in co-production with Mercury Theatre, Belgrade Theatre and York Theatre Royal, we presented Run, Rebel, a world-premiere adaptation of Manjeet Mann’s novel, adapted by the author and directed by Tessa Walker. “Empowering” (The Stage).

Easter 2023 saw the Theatre present Robin Hood and the Major Oak, a new play with music, written by Deb McAndrew and directed by Sarah Brigham. Featuring actor-musicians, Deaf, hearing and interpreting actors, this show was “special and refreshing” (EastMidlandsTheatre.com). With the Deaf and hearing audience in mind, BSL was used throughout with creative captioning integrated into the set.

Our received programme continued to be successful, presenting a varied programme for diverse audiences across a range of artforms including dance, comedy, drama and family work. A variety of new, challenging and interesting works were presented in the studio – many of which went on to be performed in the Edinburgh Festival Fringe 2023.

The Theatre continued to work with In Good Company (IGC), a fellow subsidiary, to support artistic companies and independent artists across the region. We delivered advice and guidance sessions to support on project planning and production. A joint project, funded by the Jerwood Developing Artists Fund, supported a cohort of early career producers with skills workshops and residencies.

Also in partnership with IGC, the Theatre delivered its annual Departure Lounge Festival which saw industry professionals, artists and critics attend a range of panel discussions and performances. This year's festival had international connections through Derby Theatre’s involvement in Connect Up. Derby Theatre created Pleasant Land, a new piece of work in collaboration with Teatro Elsinor, which premiered at the festival. The piece was co-created by the company working with writer Nathan Powell and directed by Sarah Brigham. Also programmed at Departure Lounge were Footsteps in the Mud, a co-production with Theatre Pinklec from Croatia, and Cross the Line, a collaboration between Teatro delle Briciole Solares Fondazione delle arti and Teatro Comunale di Casalmaggiore.

The Theatre continued to deliver its pioneering learning and community work, including:

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UNIVERSITY OF DERBY THEATRE LIMITED TRUSTEES’ ANNUAL REPORT

In addition to the above, the learning team has continued to deliver a workshop programme for schools and teachers, which included Careers Days, Discover Days and show-related workshops. A work experience programme was also delivered to year 10 students. We also continued to develop Connect Up, an international project in which 12 partners from across Europe create new work for 12+ along with learning programmes for artists and teachers.

All departments across the Theatre delivered the ‘Spotlight On’ modules for theatre-based University of Derby programmes across all year groups. The MA students are fully integrated into the Learning Theatre delivery model. The Theatre supported all student shows and the MA symposium. The Theatre also works with several other programmes and initiatives across the University, for example the Creative Expressive Therapy programme and Civic Lab Research Group.

Derby CAN has continued to thrive and supported artists’ professional development – 5,455 participation instances over the life of the project. Work this year included:

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UNIVERSITY OF DERBY THEATRE LIMITED TRUSTEES’ ANNUAL REPORT

community, and Derby CAN participants took the lead in various production roles. The project was shortlisted for The Stage’s Community Project of the Year Award.

Derby CAN continues to strengthen partnership working with other local NPOs, national partners and grassroots organisations.

Over the past year, Derby Theatre has been successful in securing key grants to support the legacy of key projects that are ending. As lead DCEP partner, the Theatre was awarded £631,500 from ACE to deliver a Place Partnership project working with young people across the city. Derby Theatre was awarded £462,942 from the National Lottery Reaching Communities fund, which will help us to embed the learning and practice from community projects into our core programme. Additionally, Esmee Fairbairn Foundation renewed their support of Plus One with a grant of £176,000 to continue this vital project and Backstage Trust awarded a grant to support the ongoing development of the Youth Theatre programme.

Future Plans

Derby Theatre continues to deliver a bold and brilliant programme of work, which meets its vision and mission. The primary objective of Derby Theatre is to ensure it continues to pioneer its innovative model, which sees learning and community placed at the heart of its role as a producing theatre, as part of a unique relationship with the University of Derby.

We will continue to deliver high quality theatre productions, innovative learning programmes and transformational artist development schemes. As an Arts Council England NPO organisation, the theatre’s programme and business model will continue to align with ACE’s Let’s Create Strategy and Investment Principles.

Following the year end, in November 2023, Derby Theatre received confirmation that it is being awarded £10m for development of a new studio theatre from the Department of Levelling Up, Housing and Communities. This will increase the number of seats available in the studio and bring the entrance into the main theatre, making the space more attractive and allowing a wider range of shows to be scheduled. While plans are still being developed, the trustees feel this is an important step to strengthen the financial sustainability of the Theatre over the longer term.

Trustees’ responsibilities statement

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 regulations.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the incoming resources and application of resources, including the income and expenditure, of the charity 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.

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UNIVERSITY OF DERBY THEATRE LIMITED TRUSTEES’ ANNUAL REPORT

Disclosure of information to auditor

The trustees who held office at the date of approval of this trustees’ report confirm that, so far as they are each aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and each trustee has taken all the steps that ought to have been taken as a trustee to make themselves aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.

Appointment of Auditor

BDO LLP have expressed their willingness to continue in office as auditor and will be proposed for reappointment in accordance with section 485of the Companies Act 2006.

Board Approval

Approved by the board of trustees on 26 January 2024 and signed on their behalf by

Professor Kathryn Mitchell Chair of Trustees

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INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF UNIVERSITY OF DERBY THEATRE LIMITED

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of University of Derby Theatre Limited (“the Charitable Company”) for the year ended 31 July 2023 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Charitable Company in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions related to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

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

We have nothing to report in this regard.

Other Companies Act 2006 reporting

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

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INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF UNIVERSITY OF DERBY THEATRE LIMITED

In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report.

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

Responsibilities of Trustees

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

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Non-compliance with laws and regulations

Based on:

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INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF UNIVERSITY OF DERBY THEATRE LIMITED

We considered the significant laws and regulations to be Companies Act 2006, Charities Act 2011, UK Generally Accepted Accounting Practice, UK tax legislation.

The Charitable Company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be employment law, data protection and health and safety legislation.

Our procedures in respect of the above included:

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

Based on our risk assessment, we considered the areas most susceptible to fraud to be management override including the posting of inappropriate journals to manipulate financial results and management bias in accounting estimates. In addition, we considered revenue recognition an area to be susceptible to fraud, particularly in relation to the posting of manual journals to material revenue streams and the recognition of grant income in line with performance conditions.

Our procedures in respect of the above included:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF UNIVERSITY OF DERBY THEATRE LIMITED

Use of our report

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

Samantha Lifford (Senior Statutory Auditor)

For and on behalf of BDO LLP, statutory auditor Birmingham, UK Date: 30 January 2024

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

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UNIVERSITY OF DERBY THEATRE LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 JULY 2023

Note
Income
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Investment income
5
Total income
Expenditure
Raising funds
6
Charitable activities
6
Total expenditure
Net
(expenditure)/income
before transfers and
revaluation
Transfer between funds
14
Revaluation in year
14
Net (expenditure) /
income and net
movement in funds for
the year
Reconciliation of funds
Total funds brought
forward
Net movement in funds
Total funds carried
forward		 Unrestricted
funds
Restricted
funds
Total funds
2023
2023
2023
£
£
£
1,498,715
1,517,418
3,016,133
1,787,097
-
1,787,097
207,094
-
207,094
64,378
-
64,378
3,557,284
1,517,418
5,074,702
(359,525)
-
(359,525)
(3,643,580)
(816,062)
(4,459,642)
(4,003,105)
(816,062)
(4,819,167)
(445,821)
701,356
255,535
(4,478)
4,478
-
104,116
-
104,116
(346,183)
705,834
359,651
4,287,534
1,228,394
5,515,928
(346,183)
705,834
359,651
3,941,351
1,934,228
5,875,579		 Unrestricted
funds
Restricted
funds
Total funds
2022
2022
2022
£
£
£
1,709,067
261,120
1,970,187
1,702,805
-
1,702,805
162,296
-
162,296
7,381
-
7,381
3,581,549
261,120
3,842,669
(277,229)
-
(277,229)
(3,141,287) (1,255,869)
(4,397,156)
(3,418,516)
(1,255,869)
(4,674,385)
163,033
(994,749)
(831,716)
-
-
-
(189,706)
-
(189,706)
(26,673)
(994,749)
(1,021,422)
4,314,207
2,223,143
6,537,350
(26,673)
(994,749)
(1,021,422)
4,287,534
1,228,394
5,515,928

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

All the activities of the charitable company are classed as continuing.

Notes to the financial statements are shown on pages 17 – 29.

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UNIVERSITY OF DERBY THEATRE LIMITED

BALANCE SHEET AS AT 31 JULY 2023

COMPANY NUMBER 06858792

2023 2022
Note £ £
Fixed assets
Tangible fixed assets 10 4,970,641 5,032,123
Current assets
Stocks 10,413 9,048
Debtors 11 2,097,663 1,227,922
Cash at bank 1,873,318 2,344,856
3,981,394 3,581,826
Creditors:amounts falling due within one year 12 (1,042,501) (1,028,264)
Net current assets 2,938,893 2,553,562
Total assets less current liabilities 7,909,534 7,585,685
Creditors:amounts falling due after more than one year 13 (2,033,955) (2,069,757)
Net assets 5,875,579 5,515,928
Funds:
Unrestricted funds 14 (99,901) 147,121
Designated funds 14 414,355 573,674
Revaluation reserve 14 3,626,897 3,566,739
Total unrestricted funds 3,941,351 4,287,534
Restricted funds 14 1,934,228 1,228,394
Total funds 5,875,579 5,515,928

The Financial Statements on pages 15 - 29 have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. These were approved by the board of trustees on 26 January 2024 and were signed on its behalf by:

Professor Kathryn Mitchell Chair of Trustees

16

UNIVERSITY OF DERBY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

1. Accounting policies

University of Derby Theatre Limited is a charitable company, limited by guarantee, incorporated in England under the Companies Act 2006. The address of the registered office is shown on the ‘Members of Board, Officers and Professional Advisors’ page and the nature of the Charitable company's principal activity is shown in the Trustees' Report.

The financial statements are prepared and presented in £ sterling which is the functional currency of the Charitable Company. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements except as noted below.

Accounting convention

The financial statements of the charity have been prepared in accordance with the Charities SORP (FRS 102) – Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

University of Derby Theatre Limited meets the definition of a public benefit entity under FRS 102. Financial statements are drawn up on the historical cost accounting basis, modified to include the revaluation of certain fixed assets.

Exemptions

The charitable company’s ultimate parent undertaking, the University of Derby, includes the charitable company in its consolidated financial statements. The consolidated financial statements of The University of Derby are prepared in accordance with FRS 102 and are available to the public and may be obtained from the University of Derby, in these financial statements, the company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the following disclosures:

Going Concern

The trustees carefully review the financial and cash plans of the charitable company on a regular basis. In doing so, this enables them to plan and proactively prepare for events which might otherwise cause significant impact on the business. The trustees have also worked hard to evaluate the financial impact of the changing scenarios over the period to July 2026. This has enabled management to prepare a going concern forecast to July 2025, more than 12 months from the date of signing the financial statements. Projections show modest improvement over the medium term with the continued support of the University of Derby. The University has provided grant funding of £550,000 during the year and has indicated its willingness to continue to provide consistent funding via the approval by its Governing Council of its five-year financial plan. The Theatre was also successful in renewing its NPO funding for a further three-year period to 31 March 2026. Additionally, the Theatre was awarded £10m in November 2023 to redevelop its Studio Theatre into a larger capacity venue, enabling better alignment of space and shows, improving potential returns. Therefore, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis in preparing the annual financial statements.

Income

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

Income received in advance of a theatrical performance or provision of other specified service is deferred until the criteria for income recognition are met.

Income in respect of rental income is recognised on a straight-line basis over the period in which the theatre hall is rented.

Income from Government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income from the sale of goods or services including catering is recognised when the goods or services are supplied to the external customers, or the terms of the contract have been satisfied.

Tax recoverable under the Theatre Tax Relief scheme is accrued in the year in which the production takes place and therefore there is entitlement.

17

UNIVERSITY OF DERBY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Expenditure

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

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include administration costs, finance, personnel, payroll and governance costs which support the Charitable Company’s artistic programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. Support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

Interest receivable

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

Taxation

Corporation tax

The charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charitable company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Value added tax

The charitable company’s income is exempt from Value Added Tax (VAT) except as regards its commercial undertakings and certain consultancy activities, which are at standard rate. Irrecoverable input VAT is included in the relevant expenditure categories.

Tangible fixed assets

It is the policy of the charitable company to carry out a full revaluation of its buildings every three years. In the intervening years, a desktop revaluation exercise is conducted. The valuations are carried out by Gerald Eve LLP, with a full valuation being carried out at 31 July 2023.

All other tangible fixed assets are stated at cost. Items of equipment costing less than £10,000 are recorded in the Statement of Financial Activities as premises costs in the year of purchase.

Depreciation for all assets is provided to depreciate the cost or valuation of fixed assets, over their estimated useful lives on a straight-line basis, at the following annual rates:

Leasehold buildings Over the term of the lease Plant and equipment Between 10% and 33.3% IT infrastructure and computer equipment Between 20% and 33.3%

Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow- moving stocks.

Debtors

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

18

UNIVERSITY OF DERBY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Liabilities

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 charitable company 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.

Financial Instruments

All loans, investments and short-term deposits held by the charitable company are classified as basic financial instruments in accordance with FRS 102. These instruments are initially recorded at the transaction price less any transaction costs (historical cost). FRS 102 requires that basic financial instruments are subsequently measured at amortised cost; however, the charitable company has calculated that the difference between the historical cost and amortised cost basis is not material and so these financial instruments are stated on the Balance Sheet at historical cost. Loans and investments that are payable or receivable within one year are not discounted.

Operating leases

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the term of the lease.

Post-retirement benefits

The charitable company participates in the National Employment Savings Trust (NEST) defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The amount charged to the statement of financial activities represents the contributions payable to the scheme in respect of the accounting period.

Fund Accounting

Unrestricted funds are those which are available for use at the discretion of the trustees in furtherance of the general objectives of the charitable company 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 charitable company 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.

Accounting estimates and judgements

The preparation of financial statements requires the use of accounting estimates and assumptions. It also requires management to exercise its judgment in the process of applying accounting policies. Estimates, assumptions and judgements are continually evaluated based on available information and experience. Estimates based on assumptions and judgements could differ significantly from actual results.

The areas most affected using estimates and judgements are described below:

Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives considering residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on several factors. In re- assessing asset lives, factors such as technological innovation and maintenance programmes are considered. Residual values assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Valuation of buildings

The fair value of the buildings of the Charitable Company have been provided to management by an independent valuation expert, Gerald Eve LLP, at the reporting date, as instructed. They have made assumptions in the determination of the fair value of the property in respect of the condition of the property, health of the property market in the location where the property is situated and in respect of the range of reasonable fair value estimates of the asset.

19

UNIVERSITY OF DERBY THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Impairment

Management make judgement as to whether the Theatre is appropriately valued at each Balance Sheet date and whether any indicators of impairment exist. Discussions are held prior to year-end to assess market movements, planned changes and any other indicators which might warrant a change in the carrying value of an asset. Should an impairment be indicated, a thirdparty valuer would be contracted to estimate the change in carrying value at the Balance Sheet date.

2. Income from donations and legacies

Donations
Grants
Total		 Unrestricted
funds
2023
Restricted
funds
2023
Total
funds
2023
Total
funds
2022
£
£
£
£
31,683
6,422
38,105
27,022
1,467,032
1,510,996
2,978,028
1,943,165
1,498,715
1,517,418
3,016,133
1,970,187

Restricted funds of £261,120 and unrestricted funds of £1,709,067 were received in 2022.

3. Income from charitable activities

Theatre activities
Rental income
Other income
Theatre tax credit
Total		 Unrestricted
funds
2023
Total
funds
2023
Total
funds
2022
£
£
£
1,240,906
1,240,906
1,111,964
337,477
337,477
328,659
1,500
1,500
10,377
207,214
207,214
251,805
1,787,097
1,787,097
1,702,805

Restricted funds of £nil and unrestricted funds of £1,702,805 were received in 2022.

4. Income from other trading activities

Catering
Total		 Unrestricted
funds
2023
Total
funds
2023
Total
funds
2022
£
£
£
207,094
207,094
162,296
207,094
207,094
162,296

Restricted funds of £nil and unrestricted funds of £162,296 were received in 2022.

5. Investment income

Interest receivable
Total		 Unrestricted
funds
2023
Total
funds
2023
Total
funds
2022
£
£
£
64,378
64,378
7,381
64,378
64,378
7,381

Restricted funds of £nil and unrestricted funds of £7,381 were received in 2022.

20

UNIVERSITY OF DERBY THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

6. Expenditure by activity

Cost of raising funds
Donations and fundraising
Other trading
Cost of charitable activities
Theatre activities
Creative learning
Funded Projects
Total expenditure		 Direct costs
2023
Support
costs
2023
Total
costs
2023
£
£
£
41,011
22,518
63,529
191,080
104,916
295,996
232,091
127,434
359,525
2,001,807
1,099,123
3,100,930
44,923
24,666
69,589
832,194
456,929
1,289,123
2,878,924
1,580,718
4,459,642
3,111,015
1,708,152
4,819,167		 Direct
costs
2022
Support
costs
2022
Total
costs
2022
£
£
£
41,124
16,980
58,104
155,091
64,034
219,125
196,215
81,014
277,229
2,002,950
808,554
2,811,504
146,951
60,673
207,624
1,342,330
35,698
1,378,028
3,492,231
904,925
4,397,156
3,688,446
985,939
4,674,385

7. Support costs by activity – current year

Support cost allocation
Premises costs
Management and staff costs
Legal, professional and finance costs
Audit and taxation
Office costs
Total support costs
Support costs by activity – prior year		 Raising
funds
2023
Theatre
activities
2023
Creative
learning
2023
Funded
projects
2023
Total
costs
2023
£
£
£
£
£
56,120
484,038
10,862
201,225
752,245
59,215
510,731
11,461
212,321
793,728
4,654
40,139
901
16,687
62,381
2,980
25,704
577
10,686
39,947
4,465
38,511
865
16,010
59,851
127,434
1,099,123
24,666
456,929
1,708,152
Support cost allocation
Premises costs
Management and staff costs
Legal, professional and finance costs
Audit and taxation
Office costs
Total support costs		 Raising
funds
2022
Theatre
activities
2022
Creative
learning
2022
Funded
projects
2022
Total
costs
2022
£
£
£
£
£
40,157
400,790
30,075
17,695
488,717
26,125
260,736
19,565
11,511
317,937
4,024
40,164
3,014
1,773
48,975
1,774
17,702
1,328
782
21,586
8,934
89,162
6,691
3,937
108,724
81,014
808,554
60,673
35,698
985,939

No governance costs were incurred by the Theatre (2022: £nil).

8. Net movement in funds for the year

Net movement in funds for the year
2023 2022
Net movement in funds for the year is stated after charging: £ £
Auditor’s remuneration - as auditors 22,980 15,920
Auditor’s remuneration - non audit services - -
Depreciation on tangible fixed assets 170,258 177,561

21

UNIVERSITY OF DERBY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

9. Staff costs

Staff costs
Wages and salaries
Social security costs
Pension costs		 2023
2022
£
£
1,606,118
1,645,849
110,823
102,322
58,978
55,741
1,775,919
1,803,912

The pension cost charge for the period represents contributions payable by the Company to the NEST scheme and private defined contribution schemes and amounted to £58,978 (2022: £55,741). Contributions amounting to £17,879 (2022: £8,529) were payable to the scheme and are included in creditors.

Particulars of employees:

The average number of staff employed by the charitable company during the financial year amounted to:

2023 2022
No. No.
Employees 107 97

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

2023 2022
No. No.
In the band £60,001 - £70,000 1 1
In the band £70,001 - £80,000 - 1
In the band £80,001 - £90,000 1 -

These 2 employees received employers pension contributions in year of £6,711 (2022: £5,408).

The key management personnel of the company comprised 4 staff members (including 1 new starter part-year and one leaver part-year) of the Senior Leadership Team. The total employee benefits of the key management personnel, including National Insurance contributions were £166,337 (2022: £192,455).

No trustee received remuneration from the charitable company during the year. Expenses of £nil (2022: £nil) were paid in the year. The company paid £nil (2022: £nil) during the year in respect of Directors and Officers liability insurance.

10. Tangible fixed assets

Cost or valuation
On 1 August 2022
Additions
Disposals
Revaluation
On 31 July 2023
Depreciation
On 1 August 2022
Charge for the year
Disposals
Revaluation
On 31 July 2023
Net book value
On 31 July 2023
On 1 August 2022		 Leasehold
buildings
Plant and
equipment
Total
£
£
£
4,455,000
1,181,471
5,636,471
-
4,659
4,659
-
1
1
47,000
-
47,000
4,502,000
1,186,131
5,688,131
-
604,348
604,348
57,116
113,142
170,258
-
-
-
(57,116)
-
(57,116)
-
717,490
717,490
4,502,000
468,641
4,970,641
4,455,000
577,123
5,032,123

22

UNIVERSITY OF DERBY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

10. Tangible fixed assets (continued)

In accordance with FRS102, a valuation of the leasehold building was performed independently by Gerald Eves LLP, Chartered Surveyors, as of 31 July 2023. The valuation was performed in accordance with the Statement of Asset Valuation and Guidance Notes, published by the Royal Institute of Chartered Surveyors.

The historic cost and accumulated depreciation of properties held at fair value is as follows:

Historic cost
Depreciation
Net book value
Debtors
Trade debtors
Amounts owed by group companies
Other debtors
Prepayments and accrued income
Creditors amounts falling due within one year
Trade creditors
Social security and other taxes
Accruals
Deferred income
Amounts due to group companies
Deferred income at 1 August
Income deferred during the year
Amounts released from prior periods
Deferred income at 31 July		 2023
£
1,011,677
(142,695)
868,982
2023
£
133,664
3,138
36,212
1,924,649
2,097,663
2023
£
125,035
25,019
585,891
306,556
-
1,042,501
2023
£
114,213
306,485
(114,142)
306,556		 2022
£
1,011,677
(131,409)
880,268

2022

£

138,972

-

55,462
1,033,488
1,227,922

2022
£

165,090

23,660

693,059

114,213

32,242
1,028,264

2022
£

104,896

114,213
(104,896)

114,213

11. Debtors

12. Creditors amounts falling due within one year

Deferred income consists of amounts received for future shows which have not taken place at year end, and for delivery of services which have not been completed at year end.

13. Creditors amounts falling due after one year

Amounts due to group companies 2023
£
2,033,955
2,033,955
2022
£
2,069,757
2,069,757

The Theatre has received a loan from the University of up to £2.5m. This loan is repayable (in part or full) 18 months following a demand from the University. No interest is charged on this loan.

23

UNIVERSITY OF DERBY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

14. Statement of funds – current year

Unrestricted funds
General Funds
Arts Council – NPO grant
University of Derby grant
Designated funds
Designated fund
Revaluation reserve
Revaluation reserve
Total unrestricted funds
Restricted funds
Arts Council - Derby CAN
Arts Council - YPPF
Arts Council – Place
Partnership
Esmee Fairburn
Esmee Fairburn 23-25
Plus One
Big House
Paul Hamlyn Speak Out
Lottery Community Fund
DCEP Might Creatives
Jerwood Foundation
Culture Recovery Fund 3
Total of funds		 Balance at
1 Aug 2022
Income
Expenditure
Transfers
in/(out)
Revaluation
in year
Balance at
31 Jul 2023
£
£
£
£
£
£
147,121
2,211,546
(2,560,075)
101,507
-
(99,901)
-
795,738
(795,738)
-
-
-
-
550,000
(550,000)
-
-
-
147,121
3,557,284
(3,905,813)
101,507
-
(99,901)
573,674
-
(97,292)
(62,027)
-
414,355
3,566,739
-
-
(43,958)
104,116
3,626,897
4,287,534
3,557,284
(4,003,105)
(4,478)
104,116
3,941,351
893,108
2,400
(405,636)
-
-
489,872
290,700
-
(307,791)
17,091
-
-
-
631,500
(2,244)
-
-
629,256
19,447
-
(19,447)
-
-
-
-
176,000
(32,152)
-
-
143,848
8,139
6,422
(3,126)
-
-
11,435
-
3,154
(7,541)
4,387
-
-
-
165,000
-
-
-
165,000
-
462,942
-
-
-
462,942
-
10,000
(10,000)
-
-
-
-
60,000
(28,125)
-
-
31,875
17,000
-
-
(17,000)
-
-
1,228,394
1,517,418
(816,062)
4,478
-
1,934,228
5,515,928
5,074,702
(4,819,167)
-
104,116
5,875,579

24

UNIVERSITY OF DERBY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Statement of funds – prior year

Unrestricted funds
General Funds
Arts Council – NPO grant
University of Derby grant
Derby City Council grant
Culture Recovery Fund 3
Designated funds
Designated fund
Revaluation Reserve
Revaluation reserve
Total unrestricted funds
Restricted funds
Arts Council - Derby CAN
Arts Council - YPPF
Esmee Fairburn
Plus One
Big House
Culture Recovery Fund 2
Culture Recovery Fund 3
Total of funds		 Restated
Balance at
1 Aug 2021
Income
Expenditure
Transfers
in/(out)
Revaluation
in year
Balance at
31 Jul 2022
£
£
£
£
£
£
136,560
1,949,166
(1,938,605)
-
-
147,121
-
798,656
(798,656)
-
-
-
-
500,000
(500,000)
-
-
-
86,000
30,902
(116,902)
-
-
-
-
302,825
(302,825)
-
-
222,560
3,581,549
(3,354,163)
(302,825)
-
147,121
292,631
-
(21,782)
302,825
-
573,674
3,799,016
-
(42,571)
-
(189,706)
3,566,739
4,314,207
3,581,549
(3,418,516)
-
(189,706)
4,287,534
1,459,699
25,061
(591,652)
-
-
893,108
591,925
11,500
(312,725)
-
-
290,700
83,914
-
(64,467)
-
-
19,447
7,821
10,518
(10,200)
-
-
8,139
-
12,235
(12,235)
-
-
-
79,784
-
(79,784)
-
-
-
-
201,806
(184,806)
-
-
17,000
2,223,143
261,120
(1,255,869)
-
-
1,228,394
6,537,350
3,842,669
(4,674,385)
-
(189,706)
5,515,928

Description of funds

Derby CAN

Restricted funding received for the Derby CAN (Derby Creative Arts Network) project in which organisations come together to create theatre and live events in partnership with people who live in Derby and the surrounding areas.

YPPF (Reimagine)

Restricted funding received for the Young People’s Performance project which has developed five Reimagine hubs to provide opportunities for Derby youth to be involved in Theatre.

Arts Council Place Partnership

Restricted funding to support a unique partnership project working with leading cultural organisations across the city. It provides young people the opportunity to participate in exciting and high-quality arts and cultural activities in their communities.

Esmee Fairburn

Restricted funding to support the Theatre’s ongoing work with care-experienced young people.

Esmee Fairburn 23-25

Restricted funding to continue to build upon the Theatre’s ongoing work with care-experienced young people.

Plus One

Restricted funding from public donations following a campaign by local cultural providers to give free opportunities for looked after young people, care leavers and their families to take part in cultural events and a range of creative workshops and projects.

25

UNIVERSITY OF DERBY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Big House

Restricted funding received for the Big House project which helped creative and digital businesses to grow across the Nottingham and Derbyshire areas. The project was part-funded by the EU and is delivered through a partnership of business support organisations.

Paul Hamlyn Speak Out

Restricted funding received from Paul Hamlyn’s Teacher Development Fund to support the needs of pupils experiencing inequity and embedding learning through the arts in the curriculum through teacher professional development.

Lottery Community Fund

Restricted funding received to support the ‘Working with our Communities’ project, which aims to engage and develop the skills of people of Normanton and Bramblebrook and build community cohesion through an engaged programme of arts activity co-created with them.

DCEP Mighty Creatives

Restricted funding received to support development of a sustainable, strategic response to flourish post-March 2023.

Jerwood Foundation

Restricted funding to support early-career producers across 2 years to develop their professional practice in a meaningful and practical way.

Culture Recovery Fund 2&3

Restricted funding received from Arts Council England to ensure that the Theatre remains sustainable in the long term via the rebuilding of reserves following the COVID-19 pandemic and closure of the Theatre.

Designated Fund

This designated fund has been established from Culture Recovery funding (grants 2 and 3) received from Arts Council England. Both grants had some elements that were ringfenced for specific purposes, and that portion of the funding has been recorded as restricted. The remainder of each grant was given to establish a designated fund supporting the sustainability of the Theatre over the longer term.

Revaluation Reserve

This reserve is created following the revaluation of the fixed asset property portfolio. The reserve is amortised over the lease of the property resulting in a transfer between revaluation reserve and unrestricted reserves.

26

UNIVERSITY OF DERBY THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

15. Analysis of net assets between funds – current year

|Tangible fixed assets
Current assets
Creditors due within one year
Creditors due over one year
Total|Unrestricted
funds
2023
Designated
funds
2023
Restricted
funds
2023
Revaluation
reserve
2023
Total
funds
2023
£
|£
£
£
£
1,343,744
-
-
3,626,897
4,970,641
1,632,811
414,355
1,934,228
-
3,981,394
(1,042,501)
-
-
-
(1,042,501)
(2,033,955)
-
-
-
(2,033,955)| |---|---| ||(99,901)
414,355
1,934,228
3,626,897
5,875,579|

Analysis of net assets between funds – prior year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due over one year
Total		 Unrestricted
funds
2022
Designated
funds
2022
Restricted
funds
2022
Revaluation
reserve
2022
Total
funds
2022
£
£
£
£
£
1,465,384
-
-
3,566,739
5,032,123
1,665,545
573,674
1,342,607
-
3,581,826
(914,051)
-
(114,213)
-
(1,028,264)
(2,069,757)
-
-
-
(2,069,757)
147,121
573,674
1,228,394
3,566,739
5,515,928

16. Operating lease commitments

At 31 July 2023, the theatre had commitments to make future minimum lease payments under non-cancellable operating leases for leased properties as follows:

Amounts payable:
Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 2023
£
41,042
110,000
-
151,042
2022

£

50,006

16,042
-
66,048

17. Company status

The charitable company is a company limited by guarantee. At the year end, there were 11 trustees, each of whom, under the terms of the Memorandum and Articles of Association, has undertaken to contribute a maximum of £1 in the event of a winding up of the charitable company.

27

UNIVERSITY OF DERBY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

18. Related party transactions

During the year, the charitable company transacted with its parent, University of Derby and fellow subsidiary, In Good Company Limited as follows:

Income Expenditure
Received incurred Balance at
2023 2023 31 July 23
£ £ £
University of Derby 887,477 110,002 (2,033,955)
In Good Company Limited - 32,500 3,138
Income Expenditure
Received Incurred Balance at
2022 2022 31 July 22
£ £ £
University of Derby 828,659 102,131 (2,069,757)
In Good Company Limited - 85,000 (32,242)

The charitable company has, or had, representation on the management boards of the following organisations:

Income received by Expenditure incurred Balance receivable /
Derby Theatre 2023 by Derby Theatre 2023 (payable) at 31 July
(£) (£) 2023 (£)
Derby Museums
-		 976 (144)
Derby QUAD Ltd - 1,284 -
Artcore - 29,800 -
Milk Presents Ltd - 837 -
Maison Foo - 1,439 -
Derby Book Festival 753 - 682
Income received by Expenditure incurred Balance receivable /
Derby Theatre 2022 by Derby Theatre 2022 (payable) at 31 July
(£) (£) 2022 (£)
Derby Museums
-		 2,040 -
Derby QUAD Ltd - 35,101 (345)
Artcore - 36,780 (10,500)
Maison Foo - 40,272 -

19. Ultimate parent undertaking

The charitable company’s ultimate controlling party is the University of Derby. Copies of the ultimate parent company’s consolidated accounts can be obtained from the Secretary at Kedleston Road, Derby DE22 1GB.

20. Post Balance Sheet Event

In November 2023, Derby Theatre was awarded £10m funding from the Department of Levelling Up, Housing and Communities (DLUHC). This was half of a £20m fund previously awarded to build a new theatre in place of the fire-damaged Assembly Rooms in Derby, which unfortunately was not viable.

Derby Theatre will use these funds to a create a new purpose-built studio theatre at the existing Derby Theatre site along with a revamped learning space. Funds will be utilised by March 2026.

28

UNIVERSITY OF DERBY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

21. Prior period adjustment

An error was identified with the calculation of the theatre tax relief estimate in the prior year financial statements. As a consequence of correcting the amount receivable in the prior year, accrued income in the Balance Sheet has increased by £178,928 and income to charitable activities in the Statement of Financial Activities has increased by £178,928 to ensure they are both accurate.

In addition, an error was identified within the accrued costs in relation to the theatre tax claim in the prior financial statements. As a result of correcting the accrued liability in the prior year, accruals in the Balance Sheet have increased by £51,446 and cost of charitable activities have increased by £51,446 to ensure they are accurate.

Debtors
Trade debtors
Amounts owed by group companies
Other debtors
Prepayments and accrued income
Creditors amounts falling due within one
year
Trade creditors
Social security and other taxes
Accruals
Deferred income
Amounts due to group companies
Extract from Statement of Financial
Activities
Income
Charitable activities
Other cumulative income streams
Expenditure
Raising funds
Charitable activities		 Reported at
31 July 2022
Adjustment
Restated at
31 July 2022
£
£
£
138,972
-
138,972
-
-
-
55,462
-
55,462
854,560
178,928
1,033,488
1,048,994
178,928
1,227,922
Reported at
31 July 2022
Adjustment
Restated at
31 July 2022
£
£
£
165,090
-
165,090
23,660
-
23,660
641,613
51,446
693,059
114,213
-
114,213
32,242
-
32,242
976,818
51,446
1,028,264
Reported at
31 July 2022
Adjustment
Restated at
31 July 2022
£
£
£
1,523,877
178,928
1,702,805
2,139,864
-
2,139,864
3,663,741
178,928
3,842,669
(277,229)
-
(277,229)
(4,345,710)
(51,446)
(4,397,156)
(4,622,939)
(51,446)
(4,674,385)

29