**Charity Registration No. 1134863** **Company Registration No. 06940032 (England and Wales)** ## **THE LOFT THEATRE COMPANY** ## **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 AUGUST 2020** ## **THE LOFT THEATRE COMPANY** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|Mr D Fletcher|| |---|---|---| ||Mrs S Moore|| ||Mr R Moore|| ||Mr W Wilkinson|| ||Mr J Synge|| ||Mr C O'Brien|| ||Mr P Daly-Dickson|| ||Ms T Lacey|| ||Mr R Lowe|| ||Ms V Betts|(Appointed 28 April 2020)| ||Ms E Morgan|(Appointed 28 April 2020)| |**Charity number**|1134863|| |**Company number**|06940032|| |**Registered office**|Loft Theatre|| ||Victoria Colonnade|| ||Leamington Spa|| ||Warwickshire|| ||CV31 3AA|| |**Independent examiner**|Burgis & Bullock|| ||23-25 Waterloo Place|| ||Warwick Street|| ||Leamington Spa|| ||Warwickshire|| ||CV32 5LA|| |**Bankers**|HSBC Bank plc|| ||The Parade|| ||PO Box 88|| ||Leamington Spa|| ||Warwickshire|| ||CV32 4BU|| |**Solicitors**|Blythe Liggins|| ||Edmund House|| ||Rugby Road|| ||LEAMINGTON SPA|| ||CV32 6EL|| ## **THE LOFT THEATRE COMPANY** ## **LEGAL AND ADMINISTRATIVE INFORMATION** ## **Investment advisors** Self Chartered Financial Planners 6 Elm Court Arden Street Stratford Upon Avon Warwickshire CV37 6PA ## **THE LOFT THEATRE COMPANY** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 6| |Independent examiner's report|7| |Statement of financial activities|8 - 9| |Balance sheet|10 - 11| |Notes to the financial statements|12 - 23| ## **THE LOFT THEATRE COMPANY** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ The trustees present their report and accounts for the year ended 31st August 2020. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document 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)” (as amended for accounting periods commencing from 1 January 2019) . ## **Structure, governance and management** The charity is a company limited by guarantee and was incorporated on 22nd June 2009. The charity is governed by its memorandum and articles of Association dated 22nd June 2009 as amended by special resolution dated 11th January 2010 and special resolution dated 8th April 2018. The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: ||**Member of**|| |---|---|---| ||**audit committee**|| |Mr D Fletcher|Yes|| |Ms C Beeston||(Resigned on 14 March 2020)| |Mr R Moore||| |Ms E Morris||(Resigned on 13 March 2020)| |Ms S Moore|Yes|| |Mr C O'Brien||| |Mr J Synge|Yes|| |Mr W Wilkinson|Yes|| |Mr P Daly-Dickson||| |Mr R Lowe||| |Ms T Lacey||| |Ms E Morgan||(Appointed 28 April 2020)| |Ms V Betts||(Appointed 28 April 2020)| The board have appointed an artistic director, Sue Moore, and a general manager, Amanda Laidler (until November 2020) and Robin Boyd (from December 2020), and delegated to them limited powers to manage the day-to-day affairs of the company. The Loft Theatre Company is run almost entirely by volunteers and provides opportunities for the community to join the Theatre and participate in the management and presentation of high quality theatre. There are no barriers to participation and admission to performances is open to the general public and there are concessionary ticket price schemes in operation. The Trustees have assessed the major risk factors to which the charity is exposed and are satisfied that systems are in place to mitigate the company’s exposure to risks. - 1 - ## **THE LOFT THEATRE COMPANY** ## **TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ Trustees are generally appointed at the AGM. The process of appointing and retiring trustees, is set out in our Articles 31 to 45, as amended by special resolution dated 11th January 2010 and special resolution dated 8th April 2018. None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up. ## **Objectives and activities** 1. To advance education in the arts, primarily the performing arts, for the public benefit, in particular by: a) the production and promotion of theatre plays; b) encouraging and promoting the study and appreciation of theatre and participating in making theatre; and c) encouraging and promoting appreciation and interest in performing arts, including music, film and dance. 2. To provide, or assist in the provision of, facilities in the interests of social welfare, for recreation or other leisure time occupation of the public with the object of improving their quality and conditions of life. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. ## **Achievements and performance** September 2019 – July 2020 was a shortened season, halted in March 2020 by the outbreak of the worldwide pandemic, which closed our theatre. It felt very personal when one of our leading actors lost his life to the virus. Before closing we performed half of our season in the Main House and Studio and hosted three visiting company one night events, one back by popular demand and the other a sell out. At the time of closing we had 10 productions scheduled, most of which we plan to reschedule. We took the opportunity of closure to undertake major projects within the theatre and backstage was transformed, including a significant construction project of a mezzanine floor over the theatre workshop requiring building regulation approval. These projects were driven by being served notice to vacate the Council property we rent, due to redevelopment plans for Spencer Yard. - 2 - ## **THE LOFT THEATRE COMPANY** ## **TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ Following closure, we were in receipt of valuable Government funding of £20,000 and generous donations from patrons from both waiving prepurchased ticket monies and general donations to support us. In order to continue to connect with our audience we posted studio quality recordings of several past productions free of charge online and made a new recording of a previously performed play, with the original cast. ## Technically we invested in upgrading our lighting in terms of infrastructure and product. Further financial investment was made in preparing the theatre for reopening in 2021 to ensure a Covid safe environment. The securing of accreditation by The Society of London Theatres and UK Theatres for the See it Safely kitemark has been an important step. The theatre engaged in detailed discussions with Warwick District Council regarding the consequences on the Loft of their redevelopment plans for Spencer Yard. The most significant of these is the desire to use the external courtyard for eventing. This would prevent the theatre from rehearsing and performing due to sound disruption. Currently the developers have decided not to pursue these events plans and have passed them to WDC for consideration. We also took the opportunity during closure to respond to the international movement on diversity and racism. The theatre’s policy has been publicly posted outlining the theatre’s approach to integrating this into our artistic and operational practice. ## PRODUCTIONS STAGED _The Theatre of Music Hall_ devised by Sean Glock _Songs of Noel Coward_ (Visiting Company) Andrew Waxkirsh _Into The Breach_ (Visiting Company) Mark Carey _Hangmen_ by Martin McDonagh _Down For The Count_ (Visiting Company) Mike Paul-Smith jazz band _Merrily We Roll Along_ by Sondheim/Furth _Les Liaisons Dangereuses_ by Christopher Hampton _The Caretaker_ by Harold Pinter _Round The Horne_ (Visiting Company) Tim Astley _The Children_ by Lucy Kirkwood (one performance only prior to closure) Rest of the season cancelled or postponed. - 3 - ## **THE LOFT THEATRE COMPANY** ## **TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **Summary of financial performance** The operating results for the year show a deficit of £19,091. There is also an unrealised loss in investments of £9,301. The net result is a decrease in the funds of the charity of £28,392 to £758,599. The impact of the C-19 has been a significant downward pressure on our results, resulting in lower overall activity and financial performance. **INCOME: Sales of tickets** were down 32% with the overall contribution from shows down 49%. The lower margin resulted from increased costs, in particular the bought-in musical elements for “Merrily we Roll Along”. **Bar and programmes contribution** were also down (50%), reflecting the reduced audience attendance figures. **Other income:** This was up significantly: a number of generous donations were received along with a government support grant (Covid) of £20,000 and a full-year’s investment income of £11,300. **OVERHEADS:** At close-down **i** t was decided to retain the services of the production manager on full pay, to take the opportunity to carry out various improvement and maintenance works of the theatre stage and building. As a result overheads were not significantly down on the previous year. The main item was marketing which incurred some £6,000 less. Also there was a one-off £5,000 investment advisors fee in the prior year. **CASHFLOW:** Unsurprisingly cash flow was significantly affected by the above, along with high opening creditors. Cash balances by the end of August 2020 were £48,500, down £42,000 on the year. **INVESTMENTS** : The unrealised loss on investments was £9,301, or 1.7% year over year. To enable members to quickly see and appreciate the varying factors and activities that contribute to our annual outturn in financial terms, the following page shows a brief summary statement of income and expenditure for the year ending 31st August 2020. For the full accounting under present Company and Charity requirements, refer to pages 8-23. ## Investments Strategy and actions taken in the year The investment strategy is to continue to seek a regular stream of annual income to support our activities, without materially impairing the long-term value of the investments. The composition of the investment portfolio has not changed in the year and is seen as a satisfactory basis for this strategy. ## Reserves Policy The charities total reserves at the year-end were £758,599 (2019: £786,991). This includes investment reserves of £509,112 and capital funds of £191,197 (being the net book value of the fixed assets). The investment reserves are held in an investment portfolio designed to provide an income stream for use in the charity’s general activities, whilst preserving a capital base that can be used for the future enhancement of the charity’s facilities. In view of the Charity's responsibilities as an employer and the inherent uncertainties over future income sources, the Trustees agree that it is appropriate to maintain unrestricted / free reserves equivalent to not less than half of the past year’s expenditure. - 4 - ## **THE LOFT THEATRE COMPANY** ## **TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ |Income from Loft Productions
Costs of Loft Productions
Net Contribution of Loft Productions
Income from Visitor Productions
Costs of Visitor Productions
Net Contribution of Visitor Productions
Income from bar trading
Costs of good sold
Gross profit
Expenses
Net contribution of bar trading
Income from other trading
Costs of goods sold
Net Contribution of other Trading
Sale of Programmes (Net of costs)
Subscriptions
Donations - Covid related
Other donations
Government grants - Covid related
Investment Income
Other income
Donations, sundry Income
**Net Incoming resources**|**2020**
**£**
62,998
19,385
8,097
5,786
15,330
6,608
8,722
2,037
2,747
1,295
5,512
1,258
20,000
11,323
3,990|43,613
2,311
6,685
1,452
(1,314)
612
42,083
95,442|**2019**
**£**
102,395
10,989
1,622
2,918
23,717
9,517
14,200
1,555
5,636
2,451
-
3,399
-
2,473
4,724|91,406
(1,296)
12,645
3,185
(1,876)
360
10,596
115,020| |---|---|---|---|---| - 5 - ## **THE LOFT THEATRE COMPANY** ## **TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ |House Costs
Staff costs
Utilities
Maintenance
Insurance
Total house costs
Depreciation
Marketing & Box office costs
Administration:
Accounting Assistance
Telephone
Software and IT
Other
Audit & Accountancy fees
Investment advisor fees
Total admin costs
**Outgoing resources**
Surplus/(Deficit) on ongoing activities
Unrealised gain on investments
Realised gain on investments
Net movement in funds|**2020**
**£**
28,071
15,228
17,716
6,290
600
3,663
1,737
2,875
2,226
-|67,305
18,046
18,081
11,101
114,533
(19,091)
(9,301)
-
(28,392)|**2019**
**£**
26,359
15,023
18,327
6,444
305
3,666
3,765
2,244
2,200
5,188|66,153
15,196
24,590
17,368
123,307
(8,287)
18,373
-
10,086| |---|---|---|---|---| The trustees' r eport was approved by the Board of Trustees. .............................. **Mr J Synge** Dated: ......................... 9 March 2021 - 6 - ## **THE LOFT THEATRE COMPANY** ## **INDEPENDENT EXAMINER'S REPORT** ## **TO THE TRUSTEES OF THE LOFT THEATRE COMPANY** I report to the trustees on my examination of the financial statements of The Loft Theatre Company (the charity) for the year ended 31 August 2020. ## **Responsibilities and basis of report** As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act). Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or - 2 the financial statements do not accord with those records; or - 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or - 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. Wende Hubbard (FCCA) 23-25 Waterloo Place Warwick Street Leamington Spa Warwickshire CV32 5LA Dated: ......................... - 7 - ## **THE LOFT THEATRE COMPANY** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ |**Unrestricted Investment**
**funds**
**funds**
**2020**
**2020**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
26,770
-
Charitable activities
**4**
73,871
-
Investments
**5**
11,398
46
Other income
**6**
21,325
-
**Total income**
133,364
46
**Expenditure on:**
Raising funds
**7**
18,456
-
Charitable activities
**8**
133,999
-
**Total resources expended**
152,455
-
Net gains/(losses) on investments
**12**
-
(9,347)
**Net (outgoing)/incoming resources before**
**transfers**
(19,091)
(9,301)|**Capital**
**funds**
**2020**
**£**
-
-
-
-
-
-
-
-
-
-|**Total**
**Unrestricted Investment**
**funds**
**funds**
**2020**
**2019**
**2019**
**£**
**£**
**£**
26,770
3,399
-
73,871
107,979
-
11,444
3,614
45
21,325
32,154
-
133,410
147,146
45
18,456
33,584
5
133,999
121,889
-
152,455
155,473
5
(9,347)
-
18,373
(28,392)
(8,287)
18,413|**Capital**
**funds**
**2019**
**£**
-
-
-
-
-
-
-
-
-
-|**Total**
**2019**
**£**
3,399
107,979
3,659
32,154
147,191
33,589
121,889
155,478
18,373
10,086| |---|---|---|---|---| - 8 - ## **THE LOFT THEATRE COMPANY** ## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ |**Unrestricted Investment**
**funds**
**funds**
**2020**
**2020**
**Notes**
**£**
**£**
**Net (outgoing)/incoming resources before**
**transfers**
(19,091)
(9,301)
Gross transfers between funds
**20**
12,018
-
**Net movement in funds**
(7,073)
(9,301)
Fund balances at 1 September 2019
65,363
518,413
**Fund balances at 31 August 2020**
58,290
509,112|**Capital**
**funds**
**2020**
**£**
-
(12,018)
(12,018)
203,215
191,197|**Total**
**Unrestricted Investment**
**funds**
**funds**
**2020**
**2019**
**2019**
**£**
**£**
**£**
(28,392)
(8,287)
18,373
-
(203,215)
-
(28,392)
(211,542)
18,413
786,991
276,905
500,000
758,599
65,363
518,413|**Capital**
**funds**
**2019**
**£**
-
203,215
203,215
-
203,215|**Total**
**2019**
**£**
10,086
-
10,086
776,905
786,991| |---|---|---|---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 9 - ## **THE LOFT THEATRE COMPANY** ## **BALANCE SHEET** ## _**AS AT 31 AUGUST 2020**_ |**Notes**
**Fixed assets**
Tangible assets
**13**
Investments
**14**
**Current assets**
Stocks
**15**
Debtors
**16**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**17**
Net current assets
**Total assets less current liabilities**
**Income funds**
Capital funds
Investment funds
Unrestricted funds|**2020**
**£**
990
19,082
48,555
68,627
(10,337)
191,197
509,112
58,290|**£**
191,197
509,112
700,309
58,290
758,599
758,599|**2019**
**£**
1,640
18,980
90,638
111,258
(45,895)
203,215
518,413
65,363|**£**
203,215
518,413
721,628
65,363
786,991
786,991| |---|---|---|---|---| - 10 - ## **THE LOFT THEATRE COMPANY** ## **BALANCE SHEET (CONTINUED)** ## _**AS AT 31 AUGUST 2020**_ The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2020. The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the Trustees on 9 March 2021 .............................. Mr J Synge **Trustee** ## **Company Registration No. 06940032** - 11 - ## **THE LOFT THEATRE COMPANY** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **1 Accounting policies** ## **Charity information** The Loft Theatre Company is a private company limited by guarantee incorporated in England and Wales. The registered office is Victoria Colonade, Leamington Spa, CV31 3AA. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's memorandum and articles of association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. 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. The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. However the UK is currently experiencing the effects of the COVID-19 pandemic and the trustees are unable to forecast what the ongoing impact of the pandemic might be on the future activities of the theatre. Based on the current information available to them the trustees’ expectations of the foreseeable future remain the same and thus they 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. ## **1.4 Incoming resources** Income is recognised when the charity 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 charity 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 is recognised at the time of the donation. Income received in advance of theatrical performances or provision of other specified services is deferred until performances are given to which the income refers. - 12 - ## **THE LOFT THEATRE COMPANY** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **1 Accounting policies** **(Continued)** Income of the sales of goods and services is measured at the fair value of the consideration received or receivable in the normal course of business. ## **1.5 Resources expended** All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. ## **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 Specialist stage equipment 25% straight line Fixtures, fittings & equipment 15% reducing balance Freehold Improvements 10% 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 net income/(expenditure) for the year. ## **1.7 Fixed asset investments** Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred. ## **1.8 Impairment of fixed assets** At each reporting end date, the charity 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 ) . ## **1.9 Stocks** Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost. Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. - 13 - ## **THE LOFT THEATRE COMPANY** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **1 Accounting policies** **(Continued)** ## **1.10 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. ## **1.11 Financial instruments** The charity 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 charity's balance sheet when the charity 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. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans 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 p aymen ts 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 charity’s contractual obligations expire or are discharged or cancelled. - 14 - ## **THE LOFT THEATRE COMPANY** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **1 Accounting policies** **(Continued)** ## **1.12 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 charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.13 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. ## **2 Critical accounting estimates and judgements** In the application of the charity’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. In relation to potentially obsolete stocks, the trustees have made key assumptions regarding the provision to be included within the financial statements. 'Stocks' included on the balance sheet are stated net of any provision. ## **3 Donations and legacies** |**Unrestricted**
**funds**
**2020**
**£**
Donations and gifts
6,770
Government grant
20,000
26,770|**Total**
**2019**
£
3,399
-| |---|---| ||3,399| - 15 - ## **THE LOFT THEATRE COMPANY** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **4 Charitable activities** |Theatre Activities
Subscriptions
Programme sales|**2020**
**£**
71,762
612
1,497
73,871|**2019**
**£**
104,756
360
2,863| |---|---|---| |||107,979| ## **5 Investments** |**Unrestricted Investment**
**funds**
**funds**
**2020**
**2020**
**£**
**£**
Income from listed investments
11,323
-
Interest receivable
75
46
11,398
46|**Total**Unrestricted
funds
**2020**
2019
**£**
£
11,323
2,473
121
1,186
11,444
3,659|**Total**Unrestricted
funds
**2020**
2019
**£**
£
11,323
2,473
121
1,186
11,444
3,659| |---|---|---| |||3,659| ## **6 Other income** |**Unrestricted**
**funds**
**2020**
**£**
Bar Income
15,330
Catering Income
2,747
Other
3,248
21,325|**Total**
**2019**
**£**
23,717
5,864
2,573| |---|---| ||32,154| - 16 - ## **THE LOFT THEATRE COMPANY** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **7 Raising funds** |Advertising
Bar and catering costs
Investment advisor fees
**Charitable activities**
Direct costs of Productions
Costs of Visitors Productions
Programme costs
Utilities and General Production costs
Repairs and Maintenance costs
Insurance
Bank and Credit card charges
Telephone, IT, Misc
Share of support costs (see note 9)
Share of governance costs (see note 9)|**2020**
**£**
10,553
7,903
-
18,456
**2020**
**£**
19,386
5,786
2,811
16,177
17,611
6,289
9,933
5,860
83,853
46,117
4,029
133,999|**2019**
**£**
16,433
11,968
5,188| |---|---|---| |||33,589| |||**2019**
**£**
10,989
2,918
4,739
15,675
17,558
6,444
9,886
8,624| |||76,833
41,555
3,501| |||121,889| ## **8 Charitable activities** - 17 - ## **THE LOFT THEATRE COMPANY** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **9 Support costs** |**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
28,071
-
Depreciation
18,046
-
Independent Examiner fees
-
2,226
Legal and professional
-
963
Other
-
840
46,117
4,029
Analysed between
Charitable activities
46,117
4,029|**2020**
**£**
28,071
18,046
2,226
963
840
50,146
50,146|**2019 Basis of**
**allocation**
**£**
26,359 100% charitable
15,196 100% charitable
2,200 Governance
353 Governance
948 Governance
45,056
45,056| |---|---|---| ## **10 Trustees** None of the trustees (or any persons connected with them) received any remuneration in the year. Trustees were reimbursed a total of £189 with respect to expenses incurred in the year. ## **11 Employees** ## **Number of employees** The average monthly number of employees during the year was: ||**2020**|**2019**| |---|---|---| ||**Number**|**Number**| ||2|2| |**Employment costs**|**2020**|**2019**| ||**£**|**£**| |Wages and salaries|27,345|25,802| |Pension costs|726|557| ||28,071|26,359| - 18 - ## **THE LOFT THEATRE COMPANY** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **12 Net gains/(losses) on investments** |Revaluation of investments
**13**
**Tangible fixed assets**
**Cost**
At 1 September 2019
Additions
At 31 August 2020
**Depreciation and impairment**
At 1 September 2019
Depreciation charged in the year
At 31 August 2020
**Carrying amount**
At 31 August 2020
At 31 August 2019|**2020**
**£**
(9,347)
**Land and**
**buildings**
**Specialist stage**
**equipment**
**Fixtures, fittings**
**& equipment**
**Freehold**
**Improvements**
**£**
**£**
**£**
**£**
126,428
7,708
143,335
86,441
-
829
1,771
3,428
126,428
8,537
145,106
89,869
28,655
6,073
105,383
20,586
2,529
1,025
5,848
8,644
31,184
7,098
111,231
29,230
95,244
1,439
33,875
60,639
97,773
1,635
37,952
65,855|**2019**
**£**
18,373| |---|---|---| |||**Total**
**£**
363,912
6,028| |||369,940| |||160,697
18,046| |||178,743| |||191,197| |||203,215| - 19 - ## **THE LOFT THEATRE COMPANY** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **14 Fixed asset investments** |**Listed**
**investments**
**Cash in**
**portfolio**
**£**
**Cost or valuation**
At 1 September 2019
508,522
9,891
Valuation changes
(7,894)
(1,453)
Interest on cash deposits
-
46
At 31 August 2020
500,628
8,484
**Carrying amount**
At 31 August 2020
500,628
8,484
At 31 August 2019
508,522
9,891|**Total**
**£**
518,413
(9,347)
46
509,112
509,112
518,413| |---|---| ## **Fixed asset investments revalued** Listed investments have been revalued at their market value at the year end. The historical cost of these investments was £490,149 at 31 August 2020 (£490,149 at 31 August 2019). |**15**
**Stocks**
Finished goods and goods for resale
**16**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income|**2020**
**£**
990
**2020**
**£**
2,176
2,300
14,606
19,082|**2019**
**£**
1,640| |---|---|---| |||**2019**
**£**
237
-
18,743| |||18,980| - 20 - ## **THE LOFT THEATRE COMPANY** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **17 Creditors: amounts falling due within one year** |**Creditors: amounts falling due within one year**||| |---|---|---| |**Notes**
Deferred income
**18**
Trade creditors
Other creditors
Accruals and deferred income
**Deferred income**
Deferred income in relation to forward
ticket sales|**2020**
**£**
529
6,480
1,099
2,229
10,337
**2020**
**£**
529|**2019**
**£**
5,947
36,148
-
3,800| |||45,895| |||**2019**
**£**
5,947| ## **18 Deferred income** - 21 - ## **THE LOFT THEATRE COMPANY** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **19 Analysis of net assets between funds** |**Unrestricted**
**funds**
**Investment**
**funds**
**Capital funds**
**2020**
**2020**
**2020**
**£**
**£**
**£**
Fund balances at 31 August 2020 are
represented by:
Tangible assets
-
-
191,197
Investments
-
509,112
-
Current assets/(liabilities)
58,290
-
-
58,290
509,112
191,197|**Total**
Unrestricted
funds
Investment
funds
Capital funds
**2020**
2019
2019
2019
**£**
£
£
£
191,197
-
-
203,215
509,112
-
518,413
-
58,290
65,363
-
-
758,599
65,363
518,413
203,215|Total
2019
£
203,215
518,413
65,363
786,991| |---|---|---| - 22 - ## **THE LOFT THEATRE COMPANY** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **20 Transfers between funds** During the year, a transfer of £12,018 was made from capital funds to the unrestricted funds to represent the movement in the net book value of its current fixed assets. ## **21 Related party transactions** Income of £2,300 (2019: £2,389) was received from Act One in the year, a company with which the charity had a common director, for hire of studio facilities. At the year-end, £2,300 (2019: £nil) was outstanding. - 23 -