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2022-03-31-accounts

Company number 06737326 Charity number 1130255

Hofesh Shechter Company Limited

(Limited by Guarantee)

Report and Financial Statements

for the year ended 31 March 2022

Breckman & Company Ltd Chartered Certified Accountants 49 South Molton Street London W1K 5LH

Hofesh Shechter Company Limited

(Limited by Guarantee)

Contents

Page
Reference and Administrative Details 1
Trustees' Report 2 - 11
Auditors' Report 12 - 14
Statement of Financial Activities (including Income and Expenditure Account) 15 - 19
Balance Sheet 20
Cash Flow Statement 21
Notes to the Financial Statements 22 - 30

Hofesh Shechter Company Limited

(Limited by Guarantee)

Reference and Administrative Details

Constitution

The Company is a private company limited by guarantee registered in EW - England and Wales, Company number 06737326 and its governing document is the Memorandum and Articles of Association. The Company is a registered charity, number 1130255.

Directors and trustees

The Directors of the charitable Company ("The Company") are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.

The Trustees during the year and since the year end, were :

Theresa Beattie Chui-Yee Cheung appointed 6 September 2021 Steven Fogel Jason Gonsalves Jonathan Kanagasooriam Gerard Lemos (Chair) Martine Simmonds

Secretary

Colette Stocks (nee Hansford)

Executive Director/Producer

Colette Stocks (nee Hansford)

Artistic Director

Hofesh Shechter

Auditors

Breckman & Company Ltd, Chartered Certified Accountants, 49 South Molton Street, London W1K 5LH.

Bankers

Lloyds TSB Bank plc, 10 Booth Street, Manchester M2 4AW. Virgin Money plc, Jubilee House, Gosforth, Newcastle upon Tyne NE3 4PL. Hampshire Trust Bank, 55 Bishopsgate, London EC2N 3AS. TransferWise, The Tea Building, 56 Shoreditch High Street, London E1 6JJ.

Registered office

New Wing, Somerset House, Strand, London WC2R 1LA.

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Hofesh Shechter Company Limited

(Limited by Guarantee)

Trustees’ Report

Trustees’ Report

The Trustees present their report together with the financial statements of the charity for the year ended 31 March 2022 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes.

The reference and administrative details set out on page 1 forms part of this report. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association 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).

The Trustees confirm that in shaping their objectives for the year and planning their activities, they have considered the Charity Commission's guidance on public benefit, including the guidance 'Public Benefit: Running a Charity (PB2)'. They are satisfied that the Company's activities are fully compliant with that guidance.

2021-2022 Chairman’s Statement

2021-2022 was a year of dynamism and sustained ambition, when live performance became possible once again, and our artistic and learning programmes were adapted to a rich and varied hybrid offer.

This remarkable year of delivery was not without challenges. New variants of Covid-19 continued to impact travel, delay the reopening of theatres, and cause extended disruption, yet, with the company’s skilled team and strong leadership and governance, we successfully produced an ambitious programme of live work in the UK and internationally and increased the range of our film and digital offer with 5 world premieres.

We also began to rebuild the office team back to pre-Covid levels - essential to sustaining the quality and reach of our work; meeting the additional administrative demands of ongoing Covid-19 restrictions and post Brexit logistics; and ensuring the expertise and capacity necessary to build on the digital momentum created in 202021.

Our artistic programme evidenced an exciting period of regrowth and renewed ambition aligned to our core values of creativity, diversity, and dynamism, and began the realisation of our strategic aims for the next 3-4 years.

Overall, 84 freelancers and staff were engaged, we produced 12 collaborative works, offered a hybrid artistic programme that reached 74,000 live audience members, comprising 36% who were new bookers, and more than 1.4m viewers of the film and digital material we generated . Through our hybrid learning programme we delivered 220 workshop sessions, (127 in secondary schools, HEI, colleges or conservatoires) and 93 sessions in informal education to 4,953 people.

Significant contributors to our success were the World Premieres of LIGHT: Bach dances at the Royal Danish Theatre, Copenhagen; Double Murder at Sadler’s Wells, London; and Contemporary Dance 2.0 performed by our third Shechter II cohort; the development of our schools partnership work and programmes for emerging artists; the World Premiere of our second short film POLITICAL MOTHER: The Final Cut , screened online to UK audiences and, at the end of the period, En corps - a new feature-length comedy drama directed by French film maker Cédric Klapisch starring Hofesh and our company dancers.

With our earned income still recovering as we increased delivery, we were extremely grateful to receive continued Culture Recovery Funding from the DCMS, support from the Arts Council England and the Trusts and Foundations, individual donors, corporate partners and co-commissioners who enabled us to initiate our recovery and our return to the UK and international stage. As ever my personal thanks go to my fellow Trustees for their commitment and determination and to the Hofesh Shechter Company team for another 12 months of hard work and unwavering belief in the power of dance – even, and above all, in challenging times.

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Hofesh Shechter Company Limited

(Limited by Guarantee)

Trustees’ Report

OBJECTIVES, AIMS AND ACTIVITIES

Our Charitable Objectives

  1. To advance the arts and culture for the benefit of the general public by promoting in the UK and internationally modern dance and other art forms including without limitation films and music with particular but not exclusive reference to touring performances and to the work of Hofesh Shechter; and

  2. To advance the education of young people, dance practitioners and the general public with particular reference to the artistic work of the Charity and particularly but not exclusively through the provision of workshops, classes and performances.

The influence and impact of our artist delivery is global from grassroots to digital and stage. Under the artistic vision of Hofesh Shechter we produce dance films and ambitious live productions, create scalable UK and international touring works; develop the next generation of exceptional dancers and bring dance to young people and communities across the UK and world.

ACHIEVEMENTS AND PERFORMANCE

Activities during 2021-22

Artistic Programme and Audience Development

From April 2021 we began to rebuild our live performance programme with a return to the UK and global stage as well as developing digital products and film work for the UK and international screen. Maintaining a hybrid offer, particularly while Covid-19 continued, was both an artistic and strategic focus.

Our live stage performances reached 6,635 people in the UK, and 67,071 people in the rest of the world; our learning and engagement programme a further 4,953 participants and our cinema and film screenings, live to digital and online products, website, and social media content reached over 1.4 million people globally.

Creation and Stage Productions

LIGHT: Bach dances, dances , a major new co-production with the Royal Danish Opera and winner of the FEDORA – VAN CLEEF & ARPELS Prize for Ballet 2020, was our first scheduled World Premiere for 2021 and took place in the theatre behind closed doors on 30 April and 4 May. With news of Denmark’s restrictions being lifted only that week, 4 performances of LIGHT: Bach dances opened at the Royal Danish Theatre from 8 – 15 May 2021 to a socially distanced audience of 1,625 alongside a live-capture made available on demand to a further 1,431 Danish online audiences.

Inspired by Bach’s cantatas, and the real-life testimony of people facing death, LIGHT: Bach dances is a moving, thought-provoking and life-affirming dance, music and theatre piece performed by 41 artists - 10 singers, 11 Hofesh Shechter Company dancers (including 6 early career artists from our Shechter II 2020/21 cohort) and Concerto Copenhagen a 20-strong baroque orchestra.

‘ I’ve never experienced such a harmonious balance of music, song and dance, as if it were the same body, breathing as one .’ ★★★★★ Monna Dithmer, Politiken

‘ I don’t remember seeing anything more beautiful on the opera stage than the final scene of LIGHT: Bach dances.’ Camilla Marie Dahlgreen, Information

Grand Finale our awarding-winning 2017 production, previously seen by over 123,000 audiences world-wide, toured into its third year after 2020 postponements. Five performances were presented to 4,100 live audiences at La Villette, Paris from 30 June – 4 July 2021 .

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Hofesh Shechter Company Limited

(Limited by Guarantee)

Trustees’ Report

After a 16-month delay, Double Murder, featuring 10 dancers and music composed by Hofesh Shechter, returned to theatres with its World Premiere re-launching the contemporary dance programme at Sadler’s Wells London (UK) on 14 September 2021. The piece then continued a European tour to France, the Netherlands and Switzerland reaching 27,029 live audiences (av.75% capacity) - demonstrating keen audience appetite to return to live theatre.

‘heartwarming and beautiful, an antidote to the suffering in the world.’ ★★★★ The Observer

‘ghoulishly gripping and ominous as hell’ ★★★★ The Guardian

We supported 3 revivals of Hofesh’s past repertory and 2 new creations : A special 60-minute version of Grand Finale for Theater Basel (Switzerland); Cult performed by Australasian Dance Collective (Australia); a bespoke edition of Uprising / In your rooms for the Paris Opera Ballet (France); a new creation, From England with Love , premiering digitally for Nederlands Dans Theater (Netherlands) and Swan Cake for Gauthier Dance (Germany), marking the first work of Hofesh’s relationship with Gauthier Dance as Artist-in-Residence (20212024).

The reach and diversity of our programme for 2021-22 maintained Hofesh Shechter Company’s position as a major collaborator in the UK and exporter of best-quality British work.

2021-22 Digital and Film

In 2021-22, we continued to develop a strong visual identity through our film and digital presence, while rebuilding our live performance programme. Together with our film screenings, our online products, including our live to digital content, our website, and social media output, reached an audience of more than 1.4 million people

As part of our rich and varied programme, Hofesh’s second short film, POLITICAL MOTHER: The Final Cut, filmed at Battersea Arts Centre (UK) with our Shechter II dancers during lockdown in November 2020 , premiered in July 2021 before being selected for screenings on the international dance film festival circuit.

‘… It’s a potent mix. Political Mother: The Final Cut is a complex emotional cocktail that, if anything, hits harder on film that it does on stage.’ David Mead, Seeing Dance

En corps (Rise) , a new feature film directed by Cédric Klapisch, featuring Hofesh Shechter and our company dancers, was released in France from 30 March 2022.

The story of a classical dancer Elise (Paris Opera Ballet dancer Marion Barbeau) who, left with devastating news after an injury, tries to find a new direction and purpose through contemporary dance, brings the work of Hofesh Shechter Company to mainstream cinema audiences. The film marks the feature film debut for Shechter and our company dancers.

‘Klapisch reconnects with the great musicals, where the dance scenes express better than a dialogue what goes on in the heads and hearts of the characters.’ Le Monde

We increased access to our work for younger, more diverse, and non-dance audiences by increasing digital capacity; building expertise for growing reach via social media and online content (mining data to target diversity e.g. Facebook and Instagram age/demographic analytics) and new platforms beyond arts channels e.g. film distributors, Spotify. Notable successes were a growth in Instagram followers by 11K to 59K; an increase in broadcast quality recordings of live productions to offer a streaming contingency and from which we were able to create varied and exciting digital assets.

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Hofesh Shechter Company Limited

(Limited by Guarantee)

Trustees’ Report

We also advanced the quality of our work using feedback from participants, audiences, and peers, ensuring delivery remains relevant to our communities.

2021-22 Developing the next generation of emerging artists and cultural careers

Covid-19 highlighted the importance of our biennial Shechter II Artist Development Programme, providing muchneeded, paid opportunities for emerging dancers to train, create and tour within a professional, world-renowned company.

In autumn 2021, we reunited our Shechter II 2020 dancers for their postponed 2020 tour and presented POLITICAL MOTHER UNPLUGGED to venues in the UK including HOME (Manchester), Dance East (Ipswich), Lighthouse (Poole, Dorset) and Battersea Arts Centre (London) and across Europe to France, Italy, Germany and Switzerland reaching 2,093 UK audiences at 11 performances in 4 venues, and 6,950 international audiences at 16 performances in 10 venues.

‘Political Mother has not aged a bit. It even finds a new modernity with these young performers, who are all excellent. ’ Jean-Frédéric Saumont, Danses avec la plume

Hybrid auditions for our next cohort of 2022 Shechter II dancers were staged - with two rounds of online auditions attracting global video submissions from 1,000 young dancers, from which the final 8 artists were selected. The programme commenced in January 2022 to reimagine a new work Contemporary Dance 2.0. Created for the midscale with the diverse voices and youthful energy of our Shechter II 2022 cohort and set to an eclectic sound score with euphoric feel and throbbing beats, this new production premiered at Teatro Comunale de Vicenza (Italy) on 23 March.

Work placements and mentorships remained challenging in this year and were confined to a short placement for a young person aged 15 on the production of Double Murder at Hackney Empire (UK).

2021-22 Public engagement and work in education

A strategic review of our Take Part programme was undertaken. Relaunched as Shechter Moves in 2021-22, our year-round Learning, Engagement and Development Programme continued to be an integral part of our work. Woven through our busy national and international touring activity, Shechter Moves supports teachers, professionals, and young artists to develop key skills and share practice through workshops, intensives, professional development opportunities, teaching resources and Shechter II. The programme focuses on addressing sector priorities for dance and building on opportunities through new partnerships via the following strategic priorities:

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Hofesh Shechter Company Limited

(Limited by Guarantee)

Trustees’ Report

Throughout 2021-22 and, with further support from DCMS Continuity funding, we delivered 220 workshop sessions, (127 in secondary schools, HEI, colleges or conservatoires) and 93 sessions in informal education to 4,953 people. Activities included:

2021-22 Excellent terms and conditions

We have built a culture which ensures careers are sustained and potential fulfilled by creating flexible working contracts for adult carers and parents and those on lower incomes; providing transition opportunities for early career and senior dancers to develop new areas of practice; and annually reviewing our pay and terms and equity house contracts.

We are committed to a progressive, inclusive work environment. The company provides equality of opportunity and equal treatment as an integral part of good practice ensuring nobody who works with us is discriminated against on any grounds including age, disability, race, sex, religion or cultural beliefs, gender, marital status and civil partnerships, sexual orientation, socio-economic status, pregnancy and maternity. We are committed to fair and equal pay free of bias and contract our fixed term artists under a house agreement with Equity advice from the Musicians’ Union.

We are a London Living Wage, PIPA (Parents and careers In Performing arts) and flexible working advocate. We offer a mix of full-time employment and project-based contracts alongside pension contributions, hybrid working; enhanced schemes for maternity and paternity paid leave; sickness and injury leave; a bespoke Health and Wellbeing programme, and creative and professional development. Furthermore, we offer relocation bursaries and touring expenses (accommodation, travel and per diems).

All salaries are scrutinised by our annual remuneration committee and trustees. As a publicly funded organisation, we conduct salary benchmarking, considering how salary levels are perceived by stakeholders and funders as well as ensuring they are affordable by the Charity.

The government’s Job Retention Scheme supported 11 artist salaries for the period April 21 – September 2021.

Throughout the 12-month period we engaged 84 freelancers and staff rebuilding our staffing levels with a strategic drive to increase the diversity of our workforce as well as ensure the safety of staff with hybrid working.

With Covid-19 still present, we continued to maintain pandemic health and safety protocols for our staff and touring team to limit the spread of the virus and incorporated ‘fire breaks’ within our touring schedule.

2021-22 Increasing diversity

As a London-based organisation with global reach, we are fully committed to diversity and aspire for our governance, employees, artists and audiences to represent the UK and internationally diverse communities we serve. We evaluate our public benefit and benchmark our workforce against London census (2011) data - 42.2% identify as Black, Asian or Ethnically diverse, 2.8% as LGBTQI+.

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Hofesh Shechter Company Limited

(Limited by Guarantee)

Trustees’ Report

We have increased diversity of our Board to 71%; of our office team from 15% to 35%, including 1 fixed term contract through our work with Creative Access; maintained our touring production team at 40% diversity, and reached 80% in our Shechter II 2022 cohort of 8 early career artists.

We initiated Shechter Moves strategic Further Education/Higher Education (FE/HE) partnerships in England with Northern School of Contemporary Dance, (Leeds) and BRIT School, (Croydon) and with the Academy of Theatre and Dance, Amsterdam (the Netherlands) These 3 diverse-led strategic FE/HE partners are key enablers to support our work to increase diversity in dance, to demonstrate a viable creative career for young people and to contribute to the UK’s reputation for producing world-class artists. We also have a close association with London Contemporary Dance School.

We carried out extensive business planning in 2021/22 and set out a new 3-4 year strategy outlining a period of re-energised direction and creative ambition, with exciting work for stage and screen, created with and for people from across the world, with actions/targets for Inclusivity and Relevance and new targets for our 2022/23 Equality Action Plan.

Future Plans

As part of our business planning a new delivery plan for 2022/23 was written to set out activities for post-pandemic transition and to rebuild our activity towards pre-pandemic levels.

Our plans in 2022/23 include:

Double Murder – tour of Shechter’s new large-scale work in the UK (Brighton and Manchester) and to the Netherlands, Germany, Luxembourg, France, Sweden, and Canada.

Contemporary Dance 2.0 – 9-month tour of Shechter’s new mid-scale work performed by Shechter II across the UK - including to Plymouth, Watford, Milton Keynes, Belfast, Salisbury, Wiltshire, Suffolk, Oxfordshire, Birmingham and London – and Europe including to France, the Netherlands, Italy, Denmark, Switzerland.

LIGHT: Bach dances – presentation at the Philharmonie de Paris.

POLITICAL MOTHER: The Final Cut – screenings at festivals, venues and cinemas in the UK and Europe including at the National Theatre’s River Stage outdoor festival.

En corps – ongoing French film release in cinemas and on demand, and new releases in other territories including the UK, Austria, Germany, Belgium, Switzerland, Italy, Russia, Australia, Canada, Israel, Brazil.

Shechter Moves

Professional and Educational restagings – to include CAVE - a new work for Martha Graham Company, New York; Lust - a new short work as a part of the evening ‘The Seven Sins’ for Gauthier Dance, Germany and a Political Mother extract restaged for Springboard Danse Montreal and Julliard School, New York.

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Hofesh Shechter Company Limited

(Limited by Guarantee)

Trustees’ Report

STRUCTURE, GOVERNANCE AND MANAGEMENT

The company was incorporated on 30 October 2008 and is governed by its Memorandum and Articles of Association. It is a company Limited by Guarantee and has no share capital. The company was registered as a Charity in England and Wales with the Charity Commission on 22 June 2009.

The Board of Trustees comprises individuals who bring not only high-level business experience and connections within the dance, visual arts and film distribution sectors, and a sensitive and experienced approach to running the company but also a passion for the work, its development and reach. Trustees’ skills are audited annually, and board development is discussed at quarterly meetings.

Policies and procedures adopted for the appointment, induction, and training of Trustees

As set out in the company’s Memorandum and Articles of Association, new trustees may be appointed by resolution of the current trustees and shall retire from office at the third annual retirement meeting following the commencement of their term in office. Retiring trustees may be re-appointed but a trustee who has served more than two consecutive terms of office can only be re-appointed by unanimous resolution of the trustees.

On appointment, trustees are given the company’s Memorandum and Articles of Association, the business plan, ACE strategy and investment principles, board minutes, policies, financial management accounts, conflicts of interest policy and declaration, the terms of reference paper for new trustees and the Charities Commission’s Guidance for new trustees. All new trustees meet with the chair and joint executive prior to commencement of their role to be briefed on their legal obligations under the charity and company law, the Charity Commission on public benefit, content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the company. They also meet key company employees and other trustees.

Trustees are responsible for the overall administration and governance of the company in line with Charities Commission guidelines. Day to day operation of the company is delegated to the joint executive team of Artistic Director and Executive Producer.

All trustees give their time voluntarily and do not receive any form of remuneration or benefits from the company.

Relationships between the company and third parties

The company has forged a range of relationships with charities and other third parties for the purpose of achieving its objectives. In particular, the company is resident company of the Brighton Dome and Festival Ltd, is supported by Arts Council England as a National Portfolio Organisation (2018–2023) and in 2021-22 worked with a range of co-producers and commissioners to support its new work. Hofesh Shechter is an Associate Artist of Sadler’s Wells and Artist-in-Residence (2021-2024) with Gauthier Dance.

Statement regarding major risks

Risk management is on-going and embedded in the management and operation of the company. A robust understanding of our role within the sector plus awareness and mitigation plans support the company’s bold and ambitious strategy.

The Board’s Finance sub-committee also closely monitors all aspects of the company's finances including cash flow, income and expenditure risk, annual budgets, currency rate fluctuation and changes in the economic climate.

Since March 2020, a new risk arising from a global pandemic presented itself with trustees and executive team monitoring its impact at regular intervals through Board and Finance meetings as required. Covid-19 continues to be an ongoing risk and is incorporated into the risk register with arrangements for delegation, supervision, and monitoring.

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Hofesh Shechter Company Limited

(Limited by Guarantee)

Trustees’ Report

Brexit remains a challenging factor for the import and export of people and equipment - a fundamental aspect of a touring and producing company. The Executive team remain active on task forces and other initiatives to represent the perspectives of a touring company and the importance of freedom of movement for performing artists and other financial implications post Brexit.

The trustees confirm that, other than arising from Covid-19 and Brexit as reported upon above, there have been no serious incidents or other matters relating to the company over the financial year.

2021-22 FINANCIAL REVIEW

The company is an Arts Council of England National Portfolio Organisation (NPO) operating within a mixed portfolio of income streams. Pre-pandemic, international activities represented the highest proportion of its turnover – 50% in 2019/20. Profit in this area subsidises the creation of new work, digital opportunities and delivery of UK performances and learning activity.

New Creations are completed across two financial years before worldwide touring. This cycle allows the company to generate UK and international co-commissioning support for the creations over 2 years and to work with artists and collaborators over a sustained period, nurturing their development and that of our artistic director to create productions that can reach a wider UK and international market.

In 2021/22 the company’s earned income from touring and other sources of revenue continued to be impacted by global lockdowns, the closure of theatres and government travel restrictions. However, under the continued strong financial governance of its trustees, it successfully adapted its programmes and grew its core artistic team alongside a global outward facing presence - achieving a turnover of £1,737,650 and an increase from 2020/21 of 4% (£68,395).

In this year the company also rebalanced its dependency on Government Covid-19 financial support by raising an additional 104% (£456,821) via its charitable activities. It continued to receive minimal support for salaries through the Job Retention Scheme until September 2021 and raised further funds of £183,149 from the Department of Digital, Culture, Media and Sport’s (DCMS) Cultural Recovery Funds (CRF 2 & 3).

With carry forward reserves at £754,876 split into a general fund (including £20,141 fixed assets), production reserve of £75,613 and other designated reserves of £182,642, the company can continue to move forward in these uncertain times with free reserves of £527,122 in place to support a planned deficit on year end 2022/23.

The company has remained resilient under the strong governance of its trustees and senior management team, applying stringent financial controls, scenario planning and rigorous financial management to sustain operations. There is a continued high risk to earned income generated from touring productions post Brexit and mid-pandemic and as previously stated, it will be necessary in 2022/23 to use reserves and source ongoing multi-year fundraising, while new income streams are developed. The trustees and executive recognise that fundraising will become more competitive and earned income challenging in 2022/23 and shall continue to monitor and review scenario budget planning at quarterly or more frequent Board and Finance Committee meetings.

Going Forward – 2022/23

As is the case with all global arts organisations, there is an ongoing and present risk to theatre and live stage delivery to large-scale audiences. The company shall remain lean in its staffing structure and support and governance costs as it tours two stage productions, distributes its film work and its hybrid engagement programme.

At the end of March 2022 and in advance of its two touring programmes, the company had secured Arts Council of England extension funding for 2022-23 as a National Portfolio Organisation; 96% of its international income target and 56% of the UK income target for the financial year 2022/23. However, with the risk of Covid-19 still evident the company will operate mitigated budget plans and increase its Covid-contingency reserve to protect ongoing business and, as far as is possible, the staff, freelancers and consultants who are at the core of delivery.

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Hofesh Shechter Company Limited

(Limited by Guarantee)

Trustees’ Report

The company will apply for 2023-26 investment as an Arts Council Portfolio organisation in May 2022.

The company has no bad debts going forward.

Reserves

The trustees review the charity’s reserve policy on a regular basis and following a risk-based assessment of the reserves requirement, has determined that the charity should aim to achieve reserves of £450,000 (equivalent to at least 12 weeks of operating costs) by 31 March 2023.

At 31 March 2022, free reserves are £527,122 (plus £20,141 Fixed Assets) with £75,613 designated as a production reserve.

The trustees continue to designate reserves under the following categories in order to fulfil the short term and strategic requirements of the company.

Operational Reserve/General Fund – an unrestricted reserve to safeguard against fluctuations of cash flow and other contingencies. Current value £547,263 (includes fixed assets of £20,141).

Production Reserve – an unrestricted designated reserve to safeguard against large-scale productions and/or projects. Current value £75,613.

In the addition to the above, the trustees have designated two reserves to achieve its new touring production and to protect against performance fee cancellations.

Designated Covid-19 Touring reserve - £82,000 Designated Arts Council Investment Principle reserve - £50,000

In 2022/23, the company is operating a mitigated income budget as it returns to international touring during the pandemic and have forecast the need to draw on £144,000 of operational reserves to support charitable activities in that year. This aligns to the trustees agreement that should it be necessary, the organisation will draw on its reserves in emergencies with Board approval. In these instances, the trustees will then seek to rebuild the reserves.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The company's trustees are aware of their responsibilities and make the following statement:

The trustees (who are also directors of Hofesh Shechter Company Ltd) 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 charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for the year. In preparing these financial statements, the trustees are required to:

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Hofesh Shechter Company Limited

(Limited by Guarantee)

Trustees’ Report

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charitable Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Small company exemptions

This report is prepared in accordance with the provisions of the Companies Act 2006 relating to small companies.

This report was approved by the Board of Trustees on 27 January 2023 and signed on its behalf by

Gerard Lemos (Chairman) Trustee

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Independent Auditors' Report to the Members of Hofesh Shechter Company Limited

Opinion

We have audited the financial statements of Hofesh Shechter Company Ltd (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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.

In connection with our audit of the financial statements, 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 or a material misstatement of the other information. 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.

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Independent Auditors' Report to the Members of Hofesh Shechter Company Limited

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' 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 set out on pages 10 and 11, 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

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.

13

Independent Auditors' Report to the Members of Hofesh Shechter Company Limited

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:

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financialstatements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the FRC's website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-ofthe-auditor%E2%80%99s-responsibilities-for. 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.

Mr Richard Nelson FCCA (Senior Statutory Auditor) For and on behalf of Breckman & Company Statutory Auditor Chartered Certified Accountants

49 South Molton Street London W1K 5LH

27 January 2023

14

Hofesh Shechter Company Ltd (Limited by Guarantee)

Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 March 2022

Unrestricted Restricted Restricted 2022 Unrestricted Unrestricted Restricted Restricted 2021
funds funds Total funds funds Total
Notes £ £ £ £ £ £
Income and endowments from: 2
Donations and legacies - page 16 773,024 - 773,024 1,208,494 - 1,208,494
Charitable activities
Theatre - page 17 822,753 72,650 895,403 255,477 183,105 438,582
Investments - - - 1,695 - 1,695
Other - page 17 3 69,223 - 69,223 20,484 - 20,484
Total 1,665,000 72,650 1,737,650 1,486,150 183,105 1,669,255
Expenditure on:
Raising funds:
Fundraising - page 18 88,764 - 88,764 69,577 - 69,577
Charitable activities:
Theatre - page 18 1,512,967 72,650 1,585,617 1,049,464 183,105 1,232,569
Total 1,601,731 72,650 1,674,381 1,119,041 183,105 1,302,146
Net movement in funds:
Net income for the year 4 63,269 - 63,269 367,109 - 367,109
Reconciliation of funds:
Total funds brought forward 691,607 - 691,607 324,498 - 324,498
Total funds carried forward 15, 16 754,876 - 754,876 691,607 - 691,607

The notes on pages 22 to 30 form an integral part of these financial statements.

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities.

15

Hofesh Shechter Company Limited

(Limited by Guarantee)

Year ended 31 March 2022

2022 2022 2021 2021
£ £ £ £
Income from donations and legacies
Arts Council England grants
ACE - NPO Funding 390,360 390,360
ACE - Emergency Response Fund - 90,000
ACE - Culture Recovery Fund 183,149 250,000
573,509 730,360
COVID-19 grants
HMRC JRS funding 42,328 292,422
42,328 292,422
Donations, Grants, Corporate, Trusts
and Foundations 157,187 185,712
773,024 1,208,494

Income from donations, grants, trusts and foundations has been received from FEDORA Europe, John Ellerman Foundation, The Harold Wyam Wingate Foundation, International Music and Art Foundation, BNP Paribas Foundation and the Department of Digital, Culture, Media and Sport Culture Recovery Fund.

16

Hofesh Shechter Company Limited

(Limited by Guarantee)

Year ended 31 March 2022

2022 2022 2021 2021
£ £ £ £
Income from charitable activities
Theatre
Theatre income
Performance fees and workshops - UK 93,724 13,869
Performance fees and workshops - Int'l 569,311 84,148
Projects 145,846 154,429
Other 13,872 3,031
822,753 255,477
Restricted fund income
Various funding - note 16 (page 28) 72,650 183,105
895,403 438,582
Investment income
Bank interest - 1,695
Other income
Theatre Tax Relief (TTR) 69,223 20,484
69,223 20,484

17

Hofesh Shechter Company Limited

(Limited by Guarantee)

Year ended 31 March 2022
2022
£
Expenditure on raising funds
Fundraising
88,764
88,764
Expenditure on charitable activities
Theatre
Production costs
Performance, workshop and project - salaries/fees
892,557
Social security costs
34,619
Performance, workshop and project - costs
454,872
1,382,048
Support and governance costs - page 19
203,569
1,585,617		 2021
£
69,577
69,577
840,246
50,052
183,082
1,073,380
159,539
1,232,569

18

Hofesh Shechter Company Limited

(Limited by Guarantee)

Year ended 31 March 2022

2022 2021
£ £ £ £
Support and governance costs
Support costs
Office overheads 43,819 36,602
Depreciation of fixtures/fittings/equipment 6,681 8,964
50,500 45,566
Administration costs
Salaries and fees 79,107 62,344
Social security costs 18,051 5,616
Sundries 42,462 29,522
139,620 97,482
Professional/financial
Legal/professional 13 13
Bank charges 3,334 1,308
Bad debts - 7,104
Deficit on foreign exchange 2,767 1,716
6,114 10,141
Governance costs
Accountancy/consultancy 2,000 2,000
Audit 4,000 4,000
6,000 6,000
202,234 159,189
Deficit on disposal of tangible fixed assets 1,335 -
203,569 159,189

19

Hofesh Shechter Company Limited

(Limited by Guarantee)

Balance Sheet 31 March 2022

2022 2022 2021 2021
Notes £ £ £ £
Fixed assets:
Tangible assets 9 20,141 22,236
Current assets:
Stocks 10 503 503
Debtors 11 732,980 267,634
Cash at bank and in hand 536,188 636,927
1,269,671 905,064
Liabilities:
Creditors: amounts falling
due within one year 12 )
(534,936		 )
(235,693
Net current assets 734,735 669,371
Total assets less current
liabilities 754,876 691,607
The funds of the charity:
Unrestricted funds 15
General fund 547,263 433,352
Designated funds 207,613 258,255
Total charity funds 754,876 691,607

The trustees have prepared these accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

The financial statements were approved by the Board of Trustees on 27 January 2023 and signed on its behalf by

Martine Simmonds Trustee

Gerard Lemos (Chair) Trustee

The notes on pages 22 to 30 form an integral part of these financial statements.

20

Hofesh Shechter Company Limited

(Limited by Guarantee)

Cash Flow Statement for the year ended 31 March 2022

2022 2021
Notes £ £
Cash flows from operating activities
18		 )
(94,818		 268,821
Cash flows from investing activities:
Dividends, interest and rents from investments - 1,695
Purchase of property, plant and equipment (5,921 ) (2,572 )
Net cash provided by investment activities (5,921 ) )
(877
Change in cash at bank and in hand in the reporting period )
(100,739		 267,944
Cash at bank and in hand at the beginning of the reporting
period 636,927 368,983
Cash at bank and in hand at the end of the reporting
period		 536,188 636,927

21

Hofesh Shechter Company Limited

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2022

1. Accounting policies

1.1. Basis of preparing the financial statements

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (issued October 2019) 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) - (Charities SORP (FRS 102)), and the Companies Act 2006.

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

1.2. Incoming resources

All incoming resources are included in the Statement of Financial Activities when:

- Donations and legacies

Grants/donations are recognised in incoming resources in the year in which they are receivable, except as follows:

- Charitable activities

Theatre income - income from box office, performance fees and sundry other theatrical income is included in incoming resources in the period in which the relevant show takes place.

Project specific funding - when donors specify that donations and grants are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable.

- Investment income

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

22

Hofesh Shechter Company Limited

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2022

1.3. Expenditure

All expenditure is included on an accruals basis inclusive of any VAT which cannot be recovered and is recognised when:

- Costs of raising funds

Costs incurred in attracting donations, and those incurred in trading activities that raise funds.

- Charitable activities

Theatre production costs - costs incurred in production and running of productions toured in the year.

- Support costs

The administrative and overhead costs associated with running the office from which the company operates as well as governance costs. Support are wholly attributable to theatre production costs.

- Governance costs

Costs associated with the constitutional and statutory requirements of the charity.

1.4. Fund accounting

Funds held by the charity are either:

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

1.5. Tangible fixed assets and depreciation

Individual fixed assets costing £1,000 or more are capitalised at cost.

Depreciation is provided at annual rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Fixtures/fittings/equipment

1.6. Stock

Stock is included at the lower of cost or net realisable value.

1.7. Debtors

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

23

Hofesh Shechter Company Limited

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2022

1.8. Production costs in advance

Costs incurred in respect of a theatre production which opens in the following accounting period, and which are to be paid out of general unrestricted funds, are carried forward at the balance sheet date.

1.9. Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.10. Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.11. Pensions

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are recognised as expenditure when due.

1.12. Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated at the date of the transactions. All gains and losses on exchange are written off in the income and expenditure account.

1.13. Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value, and subsequently measured at their settlement value.

1.14. Significant Accounting Estimates and Judgements

In determining the carrying amounts of certain assets and liabilities, the charity makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The charity's estimates and assumptions are based on historical experience and expectation of future events and are reviewed annually.

2. Incoming resources

Total incoming resources for the year have been derived from the principal activity. The proportion of incoming resources derived from outside the UK amounted to 33% (2021 - 13%).

3. Other income 2022 2021
£ £
Theatre Tax Relief (TTR) 69,223 20,484

24

Hofesh Shechter Company Limited

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2022

4.
Net income for the year is
stated after charging:
Depreciation of tangible fixed assets
Deficit on disposal of tangible fixed assets
Deficit on foreign exchange
Auditors' remuneration
- external audit
- other services		 2022
£
6,681
1,335
2,767
4,000
2,000		 2021
£
8,964
-
1,716
4,000
2,000

5. Trustees' emoluments and reimbursed expenses

The trustees received no remuneration or reimbursed expenses during the year (2021 £nil).

The aggregated amount reimbursed to trustees during the year was £nil (2021 £nil).

6. Staff costs and numbers 2022 2021
£ £
Staff costs
Salaries and wages 637,543 654,204
Social security costs 56,249 58,677
Pension costs 12,304 12,381
706,096 725,262

One employee earned £60,000 or more during the year (2021 - none).

The key management personnel of the charity comprise the Trustees and the Senior Management Team. The total employee benefits of the key management personnel of the charity were £60,000 (2021 - £53,000).

Staff numbers

The average numbers of employees (including casual and part time staff) during the year was made up as follows:

2022 2021
Number Number
Support 2 2
Production (including Shechter II apprenticeships) 21 22
Fundraising 1 1
24 25

25

Hofesh Shechter Company Limited

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2022

7. Pension costs

The company operates a defined contribution pension scheme in respect of its employees. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £12,304 (2021 - £12,381).

8. Corporation Tax

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

9. Fixed assets - tangible assets Fixtures/
fittings/ Total
equipment
£ £
Cost
1 April 2021 97,106 97,106
Additions 5,921 5,921
Disposals (8,671 ) (8,671 )
31 March 2022 94,356 94,356
Depreciation
1 April 2021 74,870 74,870
On disposals (7,336 ) (7,336 )
Charge for year 6,681 6,681
31 March 2022 74,215 74,215
Net book values
31 March 2022 20,141 20,141
31 March 2021 22,236 22,236
10. Stocks 2022 2021
£ £
Stocks 503 503

26

Hofesh Shechter Company Limited

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2022

11. Debtors

Debtors 2022 2021
£ £
Trade debtors 502,111 59,440
Other debtors 38,463 29,326
Prepayments/accrued income 192,406 178,868
732,980 267,634

The trade debtors relate to performance and commissioning fees receivable.

12. Creditors: amounts falling due 2022 2021
within one year £ £
Trade creditors 223,063 124,952
Other taxation/social security 19,361 16,489
Other creditors 18,213 6,544
Accruals 19,488 20,526
Deferred income (note 13) 254,811 67,182
534,936 235,693
13. Deferred income £
Balance at 1 April 2021 67,182
Amount released to incoming resources )
(67,182
Amount deferred in the year 254,811
Balance at 31 March 2022 254,811

Deferred income relates to performance and co-commissioning fees received in advance.

14. Limited by guarantee

The private limited company is limited by guarantee, is registered in EW - England & Wales, and does not have a share capital. Each member gives a guarantee to contribute a sum, not exceeding £1, to the company should it be wound up. At 31 March 2022 there were 7 members.

27

Hofesh Shechter Company Limited

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2022

15. Unrestricted funds Brought Brought Brought Incoming Incoming Outgoing Outgoing Transfers Transfers Carried
forward resources resources forward
£ £ £ £ £
General fund 433,352 1,665,000 )
(1,471,089		 )
(80,000		 547,263
Designated funds:
Production reserve 75,613 - - - 75,613
Creation reserve 2021/22 130,642 - )
(130,642		 - -
COVID touring reserve 52,000 - - 30,000 82,000
ACE Investment Principles - - - 50,000 50,000
691,607 1,665,000 (1,601,731 ) - 754,876

Production reserve

An unrestricted designated reserve to safeguard against large-scale productions and projects.

Creation reserve 2021/22

An unrestricted designated reserve which was to safeguard against Creations for 2021/22.

COVID touring reserve

An unrestricted designated reserve to safeguard against sudden COVID-19 restrictions for travel and live stage productions.

ACE Investment Principles

An unrestricted designated reserve to support infrastructure spend in 2022/23 towards data capture and compliance.

16. Restricted funds

Restricted funds Brought Brought Incoming Incoming Outgoing Outgoing Carried
forward resources resources forward
£ £ £ £
Creations - 72,650 (72,650 ) -

Creations

Commissioning funds to support new touring work choreographed and composed by Hofesh Shechter.

28

Hofesh Shechter Company Limited

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2022

17. Analysis of net assets between funds

17. Analysis of net assets between funds
General Designated Total
funds funds
£ £ £
Fund balances at 31 March 2022
are represented by:
Tangible fixed assets 20,141 - 20,141
Net current assets 527,122 207,613 734,735
547,263 207,613 754,876
18. Reconciliation of net income to net cashflow from operating activities
2022 2021
£ £
Net income for the reporting period 63,269 367,109
(as per the statement of financial
activities)
Depreciation and amortisation 6,681 8,964
Dividends, interest and rents from investments - )
(1,695
Deficit on the sale of fixed assets 1,335 -
(Increase)/decrease in debtors )
(465,346		 17,495
Increase/(decrease) in creditors 299,243 )
(123,052
Net cashflow from operating activities )
(94,818		 268,821

19 Financial commitments

At 31 March 2022 the company had total future minimum lease payments under non-cancellable operating leases, with payments falling due as follows:


operating leases, with payments falling due as follows:
2022 2021
£ £
Due:
Within one year 25,344 25,344
Between one and five years 45,203 70,547
70,547 95,891

29

Hofesh Shechter Company Limited

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2022

20. Related party transactions

During the year the company had no related party transactions that require disclosure.

30