Charity registration number 1129007 (England and Wales) Company registration number 05988546
ROYAL COURT LIVERPOOL TRUST LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
ROYAL COURT LIVERPOOL TRUST LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr J M Falkingham Ms H E Summers Mr K E Dunn Ms J Fisher Ms V Park (Appointed 16 May 2024) Ms C Mbirimi (Appointed 16 May 2024) Chief Executive Miss G Miller Secretary Miss G Miller Charity number 1129007 Company number 05988546 Registered office Royal Court Theatre 1 Roe Street Liverpool L1 1HL Auditor DSG Audit Castle Chambers 43 Castle Street Liverpool L2 9TL
ROYAL COURT LIVERPOOL TRUST LIMITED
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 4 |
| Statement of trustees' responsibilities | 5 |
| Independent auditor's report | 6 - 8 |
| Statement of financial activities | 9 |
| Balance sheet | 10 |
| Notes to the financial statements | 11 - 21 |
ROYAL COURT LIVERPOOL TRUST LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2024
The trustees present their annual report and financial statements for the year ended 31 March 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Trust's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
Objectives and activities
The Trust's objectives are:
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To conserve and preserve historic buildings and other structures for the benefit of the public, without prejudice to the generality of the foregoing in particular the Royal Court Theatre in Liverpool.
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To advance the education of the public in the arts, including but not exclusively theatre and the performing arts.
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To promote for the benefit of the inhabitants of Merseyside and the surrounding area the provision of facilities for recreation or other leisure time occupation of individuals who have the need of such facilities by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances or for the public at large in the interests of social welfare and with the object of improving the condition of life of the said inhabitants and members of the general public in drama, opera, music and other arts.
Public benefit
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Trust should undertake.
Achievements and performance
The focus of Royal Court Liverpool Trust over this accounting period is to concentrate on preserving, maintaining and developing the estate of buildings owned and leased by the charity. With the formation of Royal Court Liverpool Limited, an independent charity set up to oversee the operation of the theatre, tickets sales, marketing, food and drink, Royal Court Liverpool Trust has focussed on these major capital initiatives:
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The Everton Mint is a £5.5m project to create a production facility for the North of England;
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Fit For The Future is £0.75m investment in capital improvements to Royal Court Theatre; and
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The Sir Ken Dodd Happiness Centre is a £15.5m project to create a new heritage museum and centre for happiness reflecting he life and work of Liverpool’s greatest entertainer, Sir Ken Dodd.
The Everton Mint
Royal Court Liverpool Trust has planning permission for the £5.5m scheme until September 2025. Royal Court Liverpool Trust has been working to achieve head leases with operating charity Royal Court Liverpool Ltd and with owners of the workshop buildings. An Arts Council England/DCMS Cultural development Fund Round 4 bid was submitted in March 2024 for £3.8m towards the cost of the project. Royal Court Liverpool Trust were informed in December 2024 that this bid was unsuccessful. Fundraising continues to deliver the project and work on the training and skills component of the project continues.
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ROYAL COURT LIVERPOOL TRUST LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
The Sir Ken Dodd Happiness Centre
This is an ambitious project to create a permanent home for the Sir Ken Dodd collection and tell the story of Liverpool’s rich comedy heritage. The centre will also function as a focus for creating happier, healthier communities through creative programmes including workshops, performances and seminars.
Royal Court Liverpool Trust has been working with two charities, the Ken Dodd Charitable Foundation and The Comedy Trust, to develop ideas and content for the proposed building.
Award winning architects, Allford Hall Monaghan Morris who have worked with Royal Court Liverpool Trust over the last 14 years on the renovation of the theatre, have developed a vision for the building and together with support from the Ken Dodd Charitable Foundation, we have an agreed and costed building design which was submitted for planning permission in autumn 2023. Planning approval was granted in July 2024, and fundraising continues.
Royal Court Liverpool Trust plan to deliver the project by November 2027.
The Fit For The Future capital project is funded directly by Arts Council England through a grant approved in April 2022. The focus of this project is to upgrade the theatre building making it more sustainable and resilient for the future.
Work involved in this project includes:
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upgrading heating and installing cooling systems;
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making the building more energy efficient through SMART systems and installing solar panels on the roof;
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installing LED lighting throughout the building on timers to reduce cost and carbon footprint;
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improving access to the theatre for audiences and performers; and
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purchasing technical and production equipment to make the theatre more sustainable and to reduce its carbon outputs including an electric van.
Financial review
The Trust had total incoming resources in the sum of £331,994 (2023: £403,433) and expended £348,018 (2023: £696,643) resulting in net expenditure for the year of £16,024 (2023: £293,210 net expenditure).
At the period end the trust had net assets of £7,558,255 (2023: £7,574,279). Of this £7,247,178 (2023: £7,183,073) is in the designated fund for the net book value of the tangible fixed assets used by the charity. The balance of free reserves held is £311,077 (2023: £356,711) with £nil (2023: £34,495) held in restricted funds
Reserves policy
To ensure the organisation can continue in its operations for 12 months. To do this the amount of reserves held is deemed to be the rent and associated costs due to external parties in a 12 month period. The minimum reserves amount for the organisation shall be £60,000.
Principal funding sources
Capital grants are the principle source of funding.
Major risks
The trustees have assessed the major risks to which the Trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Our risk register is reviewed on a regular basis by the Trustees and senior management. Mitigating actions are taken to minimise the likelihood and impact of all risks. The following are the key risks and uncertainties facing the charity:
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Capital development costs exceeding budget
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Unexpected major repair costs
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Loss of key senior staff and consultants
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ROYAL COURT LIVERPOOL TRUST LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
Structure, governance and management
The Trust is a company limited by guarantee and a registered charity. Its governing document is its Memorandum and Articles of Association as amended by special resolution dated 11 May 2009.
The trustees, who are also the directors for the purpose of company law, and who served during the year were:
Mr J M Falkingham Mr M J Best (Resigned 2 May 2024) Mr M P Featherstone-Witty (Resigned 2 May 2024) Ms H E Summers Mr K E Dunn Ms J Fisher Ms V Park (Appointed 16 May 2024) Ms C Mbirimi (Appointed 16 May 2024)
Recruitment and appointment of trustees
New Trustees are elected at a meeting of the board of Trustees and are appointed on merit for their standing in the community and particular skills and success in their own field of work and in relation to the aims and objectives of the Trust.
Other matters
Current trustees receive continual training support to ensure they have the necessary skills to oversee the governance of the organisation. Training includes charity governance and management.
The Board of Trustees govern the policy of the charity. All trustees give of their time freely and no remuneration was paid in the year.
The management of the charity is delegated to the Chief Executive Officer, G Miller who is responsible to the board of Trustees for all aspects of the operation of the charity.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute up to £10 in the event of a winding up.
Relationship with related parties
Royal Court Liverpool Limited is related due to a common trustee sitting on both boards, and having a CEO in common.
Auditor
DSG resigned as auditor on 17 September 2024. DSG Audit were appointed on 17 September 2024 and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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ROYAL COURT LIVERPOOL TRUST LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
Disclosure of information to auditor
Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.
The trustees' report was approved by the Board of Trustees.
Ms J Fisher
Trustee
31 January 2025
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ROYAL COURT LIVERPOOL TRUST LIMITED
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 MARCH 2024
The trustees, who are also the directors of Royal Court Liverpool Trust Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Trust 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 Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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ROYAL COURT LIVERPOOL TRUST LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROYAL COURT LIVERPOOL TRUST LIMITED
Opinion
We have audited the financial statements of Royal Court Liverpool Trust Limited (the ‘Trust’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Trust’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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
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the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
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ROYAL COURT LIVERPOOL TRUST LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ROYAL COURT LIVERPOOL TRUST LIMITED
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Trust and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within 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:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.
Responsibilities of trustees
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the Trust for the purpose 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 Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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ROYAL COURT LIVERPOOL TRUST LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ROYAL COURT LIVERPOOL TRUST LIMITED
Capability of the audit in detecting irregularities, including fraud
Based on our discussions with the charity’s management and the Trustees, we identified that the following laws and regulations are significant to the entity:
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Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards and Charity Law.
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Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the charity and therefore may have a material effect on the financial statements include compliance with the charitable objectives, public benefit, fundraising regulations, safeguarding and health and safety legislation.
These matters were discussed amongst the engagement team at the planning stage and the team remained alert to non-compliance throughout the audit.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and noncompliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Andrew Moss BA FCA (Senior Statutory Auditor)
For and on behalf of DSG Audit, Statutory Auditor Chartered Accountants Castle Chambers 43 Castle Street Liverpool L2 9TL 31 January 2025
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ROYAL COURT LIVERPOOL TRUST LIMITED
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
| Unrestricted Restricted funds funds 2024 2024 Notes £ £ Income from: Donations and legacies 3 20 224,666 Charitable activities 4 107,000 - Investments 5 308 - Total income 107,328 224,666 Expenditure on: Charitable activities 6 313,523 34,495 Total expenditure 313,523 34,495 Net income/(expenditure) (206,195) 190,171 Transfers between funds 224,666 (224,666) Net movement in funds 8 18,471 (34,495) Reconciliation of funds: Fund balances at 1 April 2023 7,539,784 34,495 Fund balances at 31 March 2024 7,558,255 - |
Total Unrestricted Restricted funds funds 2024 2023 2023 £ £ £ 224,686 - 295,474 107,000 107,000 - 308 959 - 331,994 107,959 295,474 348,018 696,643 - 348,018 696,643 - (16,024) (588,684) 295,474 - 295,474 (295,474) (16,024) (293,210) - 7,574,279 7,832,994 34,495 7,558,255 7,539,784 34,495 |
Total 2023 £ 295,474 107,000 959 403,433 696,643 696,643 (293,210) - (293,210) 7,867,489 7,574,279 |
|---|---|---|
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ROYAL COURT LIVERPOOL TRUST LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
| Notes Fixed assets Tangible assets 12 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities The funds of the Trust Restricted income funds 15 Unrestricted funds 16 |
2024 £ £ 7,247,178 383,237 19,368 402,605 (91,528) 311,077 7,558,255 - 7,558,255 7,558,255 |
2023 £ £ 7,183,073 200,526 269,385 469,911 (78,705) 391,206 7,574,279 34,495 7,539,784 7,574,279 |
2023 £ £ 7,183,073 200,526 269,385 469,911 (78,705) 391,206 7,574,279 34,495 7,539,784 7,574,279 |
|---|---|---|---|
| 7,574,279 | |||
| 34,495 7,539,784 |
|||
| 7,574,279 |
The financial statements were approved by the trustees on 31 January 2025
Ms J Fisher Trustee
Company registration number 05988546 (England and Wales)
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ROYAL COURT LIVERPOOL TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
1 Accounting policies
Charity information
Royal Court Liverpool Trust Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Royal Court Theatre, 1 Roe Street, Liverpool, L1 1HL.
1.1 Accounting convention
The financial statements have been prepared in accordance with the Trust's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Trust is a Public Benefit Entity as defined by FRS 102.
The Trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Income
Income is recognised when the Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the Trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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. In respect of the furlough grant; all conditions, with respect to the eligible costs being claimed, need to be met.
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ROYAL COURT LIVERPOOL TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is accounted for on an accruals basis.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings 2% straight line Leasehold improvements 2% straight line Fixtures, fittings, equipment & computers 3 years and 10 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Depreciation is not charged on assets under construction.
1.7 Impairment of fixed assets
At each reporting end date, the Trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9 Financial instruments
The Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Trust's balance sheet when the Trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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ROYAL COURT LIVERPOOL TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
1 Accounting policies
(Continued)
Impairment of financial assets
Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Trust transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Trust’s contractual obligations expire or are discharged or cancelled.
1.10 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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ROYAL COURT LIVERPOOL TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
2 Critical accounting estimates and judgements
In the application of the Trust’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Income from donations and legacies
| Unrestricted Restricted funds funds 2024 2024 £ £ Donations and gifts 20 - Grants - 224,666 20 224,666 Grants The Ken Dodd Charitable Foundation - 104,434 Arts Council England - Capital Funding - 120,232 - 224,666 |
Total Unrestricted Restricted funds funds 2024 2023 2023 £ £ £ 20 - - 224,666 - 295,474 224,686 - 295,474 104,434 - 68,170 120,232 - 227,304 224,666 - 295,474 |
Total 2023 £ - 295,474 |
|---|---|---|
| 295,474 | ||
| 68,170 227,304 |
||
| 295,474 |
The charity receives donations in kind for administrative services from the Royal Court Liverpool Limited, the value of which could not be quantified and therefore has not been included in these financial statements.
4 Income from charitable activities
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2024 | 2023 | |
| £ | £ | |
| Charitable rental income | 107,000 | 107,000 |
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ROYAL COURT LIVERPOOL TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
5 Income from investments
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Interest receivable | 308 | 959 | |
| 6 | Expenditure on charitable activities | ||
| Charitable | Charitable | ||
| activities | activities | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Direct costs | |||
| Depreciation and impairment | 227,961 | 209,430 | |
| Rent, rates and utilities | 41,944 | 32,000 | |
| Insurances | 37,202 | 32,378 | |
| Sundry expenses | 148 | 625 | |
| Legal and professional fees | 9,591 | - | |
| Other support costs | 23,322 | 415,810 | |
| 340,168 | 690,243 | ||
| Share of support and governance costs (see note 7) | |||
| Governance | 7,850 | 6,400 | |
| 348,018 | 696,643 | ||
| Analysis by fund | |||
| Unrestricted funds - general | 313,523 | 696,643 | |
| Restricted funds | 34,495 | - | |
| 348,018 | 696,643 | ||
| 7 | Support costs allocated to activities | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Governance costs | 7,850 | 6,400 | |
| Analysed between: | |||
| Charitable activities | 7,850 | 6,400 |
Governance costs include payments to the auditors of £7,850 (2023: £6,400) in respect of audit fees.
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ROYAL COURT LIVERPOOL TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
| 8 | Net movement in funds | 2024 | 2023 |
|---|---|---|---|
| £ | £ | ||
| The net movement in funds is stated after charging/(crediting): | |||
| Fees payable for the audit of the charity's financial statements | 7,850 | 6,400 | |
| Depreciation of owned tangible fixed assets | 227,961 | 209,430 |
9 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the Trust during the year (2023: £nil).
None of the trustees were reimbursed expenses from the Trust during the year (2023: £nil).
10 Employees
The average monthly number of employees during the year was:
| 2024 | 2023 | |
|---|---|---|
| Number | Number | |
| Total | - | - |
Employees are now remunerated from Royal Court Liverpool Limited. The charity receives donations in kind for their services from the Royal Court Liverpool Limited, the value of which could not be quantified and therefore has not been included in these financial statements.
There were no employees whose annual remuneration was more than £60,000.
Remuneration of key management personnel
The remuneration of key management personnel was as follows:
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Aggregate compensation | - | - |
The CEO is now remunerated from Royal Court Liverpool Limited. The charity receives donations in kind for her services from the Royal Court Liverpool Limited, the value of which could not be quantified and therefore has not been included in these financial statements.
11 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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ROYAL COURT LIVERPOOL TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12 Tangible fixed assets
| Cost At 1 April 2023 Additions At 31 March 2024 Depreciation and impairment At 1 April 2023 Depreciation charged in the year At 31 March 2024 Carrying amount At 31 March 2024 At 31 March 2023 |
Land and buildings Leasehold improvements Assets under construction Fixtures, fittings, equipment & computers £ £ £ £ 1,212,773 6,758,701 81,037 655,820 - - 202,691 89,375 1,212,773 6,758,701 283,728 745,195 153,617 1,140,427 - 231,214 24,256 135,174 - 68,531 177,873 1,275,601 - 299,745 1,034,900 5,483,100 283,728 445,450 1,059,156 5,618,274 81,037 424,606 |
Total £ 8,708,331 292,066 |
|---|---|---|
| 9,000,397 | ||
| 1,525,258 227,961 |
||
| 1,753,219 | ||
| 7,247,178 | ||
| 7,183,073 |
Liverpool City Council and The Arts Council of England have a legal charges over the goodwill, property and all other assets of the charity.
13 Debtors
| Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued income |
2024 £ 21,136 281,222 80,879 383,237 |
2023 £ 58,438 70,732 71,356 |
|---|---|---|
| 200,526 |
14 Creditors: amounts falling due within one year
| Trade creditors Other creditors Accruals and deferred income |
2024 £ 84,228 - 7,300 91,528 |
2023 £ 57,206 15,099 6,400 |
|---|---|---|
| 78,705 |
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ROYAL COURT LIVERPOOL TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
15 Restricted funds
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
| At 1 April | Incoming | Resources | Transfers | At 31 March | |
|---|---|---|---|---|---|
| 2023 | resources | expended | 2024 | ||
| £ | £ | £ | £ | £ | |
| Arts Council England - Capital | - | 120,232 | - | (120,232) | - |
| The Ken Dodd Charitable | |||||
| Foundation | - | 104,434 | - | (104,434) | - |
| National Foundation for Youth | |||||
| Music | 29,508 | - | (29,508) | - | - |
| Oases Project | 4,987 | - | (4,987) | - | - |
| 34,495 | 224,666 | (34,495) | (224,666) | - | |
| Previous year: | At 1 April | Incoming | Resources | Transfers | At 31 March |
| 2022 | resources | expended | 2023 | ||
| £ | £ | £ | £ | £ | |
| Arts Council England - Capital | - | 227,304 | - | (227,304) | - |
| The Ken Dodd Charitable | |||||
| Foundation | - | 68,170 | - | (68,170) | - |
| National Foundation for Youth | |||||
| Music | 29,508 | - | - | - | 29,508 |
| Oases Project | 4,987 | - | - | - | 4,987 |
| 34,495 | 295,474 | - | (295,474) | 34,495 |
Arts Council England Capital grant for Fit 4 Future Project. The Agreed Project will deliver a new stair lift to join backstage to front of house for disabled performers and participants; an electric van to make touring more environmentally sustainable; and better equipment to deliver work outside the theatre and in the community.
As the charity expended these funds in line with the purpose of the donation this discharged the restriction on the funds and therefore the assets have been transferred to designated unrestricted funds.
The Ken Dodd Charitable Foundation . Royal Court Liverpool Trust working in partnership with The Comedy Trust and The Ken Dodd Charitable Foundation have the opportunity to develop the site adjacent to Liverpool’s Royal Court Theatre to create a new attraction for Liverpool City Region and the North of England in the form of a new building which will function as a Happiness Centre. The building will epitomise the late Sir Ken Dodd’s belief that comedy and humour are essential ingredients for life, creating happier, healthier people.
The Happiness Centre will celebrate all forms of comedy and humour and provide opportunities for all to take part in a wide range of programmes, workshops and sessions with comedy, humour, health and wellbeing at their heart. A main element of The Happiness Centre will be a dedicated, permanent exhibition space to celebrate the life of Liverpool icon Sir Ken Dodd, charting his remarkable career as comedian, singer, actor and entertainer and his enduring impact on the comedy scene.
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ROYAL COURT LIVERPOOL TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
15 Restricted funds
(Continued)
The exhibition space will comprise one floor of the new building and will form the permanent home for the Happiness! exhibition after it closes at the Museum of Liverpool in spring 2024. The exhibition will be refreshed periodically.
As the charity expended these funds in line with the purpose of the donation this discharged the restriction on the funds and therefore the assets have been transferred to designated unrestricted funds.
National Foundation for Youth Music - A brand new project to give FREE access to music for young people
Oases Project - Outdoor and sustainability education specialists project.
16 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| Tangible fixed asset fund General funds Previous year: Tangible fixed asset fund General funds |
At 1 April 2023 Incoming resources Resources expended £ £ £ 7,183,073 - - 356,711 107,328 (313,523) 7,539,784 107,328 (313,523) At 1 April 2022 Incoming resources Resources expended £ £ £ 7,078,347 - - 754,647 107,959 (696,643) 7,832,994 107,959 (696,643) |
Transfers At 31 March 2024 £ £ 64,105 7,247,178 160,561 311,077 224,666 7,558,255 Transfers At 31 March 2023 £ £ 104,726 7,183,073 190,748 356,711 295,474 7,539,784 |
|---|---|---|
In order to accurately show the reserves tied up in fixed assets held by the charity, a designated tangible fixed asset fund has been created. The fund reflects the net book value of the tangible fixed assets used operationally by the charity.
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ROYAL COURT LIVERPOOL TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
17 Analysis of net assets between funds
| Unrestricted Restricted funds funds 2024 2024 £ £ At 31 March 2024: Tangible assets 7,247,178 - Current assets/(liabilities) 311,077 - 7,558,255 - Unrestricted Restricted funds funds 2023 2023 £ £ At 31 March 2023: Tangible assets 7,183,073 - Current assets/(liabilities) 356,711 34,495 7,539,784 34,495 |
Total 2024 £ 7,247,178 311,077 |
|---|---|
| 7,558,255 | |
| Total 2023 £ 7,183,073 391,206 |
|
| 7,574,279 |
18 Financial commitments, guarantees and contingent liabilities
The Trust may be required to repay funding if it fails to comply with conditions laid down by funding providers. Liverpool City Council and The Arts Council of England have a legal charges over the goodwill, property and all other assets of the charity.
The Trust has a capital commitment of £172,330 as part of the funding agreement with Arts Council England for the Fit 4 Future project.
19 Operating lease commitments
Lessee
At the reporting end date the Trust had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
| Within one year Between two and five years In over five years |
2024 £ 32,000 128,000 3,592,000 3,752,000 |
2023 £ 32,000 128,000 3,624,000 |
|---|---|---|
| 3,784,000 |
- 20 -
ROYAL COURT LIVERPOOL TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
20 Related party transactions
Royal Court Liverpool Limited
Royal Court Liverpool Limited is related due to Jackie Fisher sitting on both boards of trustees, a common Chief Executive in Gillian Miller and one trustee, Kevin Dunn of the Trust is key management of Royal Court Liverpool Limited.
During the year Royal Court Liverpool Trust Limited received rent (net of VAT) of £45,000 (2023: £45,000) from Royal Court Liverpool Limited.
The charity receives a donation in kind for administrative services from the Royal Court Liverpool Limited, the value of which could not be quantified and therefore has not been included in these financial statements.
At the year end Royal Court Liverpool Trust Limited was owed £250,567 by Royal Court Liverpool Limited (2023: £15,746 due to Royal Court Liverpool Limited).
Liverpool Food Company (Theatre) Limited
Liverpool Food Company (Theatre) Limited is a 100% subsidiary of the Royal Court Liverpool Limited. As part of a group restructure, with effect from 1 April 2023 the Royal Court Liverpool Limited took over ownership of Liverpool Food Company (Theatre) Limited from Kevin Fearon, executive producer and husband of Gillian Miller, Chief Executive Officer of Royal Court Liverpool Limited.
During the year Royal Court Liverpool Trust Limited received rent (net of VAT) of £62,000 (2023: £62,000) from Liverpool Food Company (Theatre) Limited.
At the year end Royal Court Liverpool Trust Limited was owed £193,588 (2023: £12,212) by Liverpool Food Company (Theatre) Limited.
Simply Tickets Limited
Simply Tickets Limited is a 100% subsidiary of the Royal Court Liverpool Limited and the 2024 figures refer to the period as subsidiary. As part of a group restructure, with effect from 1 April 2023 , the Royal Court Liverpool Limited took over ownership of Simply Tickets Limited from Kevin Fearon, executive producer and husband of Gillian Miller, Chief Executive Officer of Royal Court Liverpool Limited.
At the year end Royal Court Liverpool Trust Limited owed £183,000 (2023: £nil) to Simply Tickets Limited.
Royal Court Limited
During the year Mr K J Fearon, Executive Producer was sole director of Royal Court Limited. He is also the husband of Gillian Miller, Chief Executive Officer.
During the year Royal Court Liverpool Trust Limited incurred expenditure and recharges of £nil (2023: £356,040) from Royal Court Limited).
At the year end Royal Court Liverpool Trust Limited owed £nil to Royal Court Limited (2023: £nil).
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