2023-03-31-accounts

Sadler's Wells Foundation Limited Sadler's Wells Foundation Limited Company Number 08338605 Registered Charity Number 1150844 ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2023

Sadler's Wells Foundation Limited Index Page Trustees. Officers and Administratwe Informalron TTu5tees' Report 7-10 Indepen<Jent Audttors. Retx)rt 11 ststement of FinaNchg1 Activ￿88 12 Balance Sheet 13 Ststement of Cash Flows 14_24 Notes to the Financial Statements

Sadlerfs Wells Foundation Limited Trustees Rab Bennetts OBE Ichaimianl Nigel Higgins IDeputy chalmianl Daniel Daw Kathryn Firth Robert Glick Andrew Lerpini8r8 Roger Spen Paul Williams Jennifer Beningfield Se¢retary Ajistsir Sp£lding CBE Registered Office Sadlerfs Wells Theatre Rosebery Avenue London EC1R4TN Bankers Coutts & Co. 440 Strand London WC2R OQS Auditors Moore Kingston Smith LLP 6th Floor 9 Appold Street London EC2A 2AP Solicitors Cltrtord Chance LLP 10 Upper Bank Street London E145JJ

Sadler's Wells Foundation Limited Trustees, Report The Trustees, who are also the Directors of the company under the Companles Act 2006, submit their report and the financial staternents of Sadlerfs Wells Foundation Limited for the year ended 31 March 2023 which have been prepared in cornpliance wth current statutory requlrements, The Charities SORP {FRS1021. and wryth the charity$ goveming document. its Memoranrlum and Articles of Association. The Company Vds in¢¢yporated on Ihe 20th De￿rnber 2012 and r8gistere£J with the Charity Comrnisslon on 15 February 2013. The compariy was fom)ed to take over the activities of the unincorporated charity of the sarne name. Under 8 Charity Commission scherne dated 26 June 2013, all assets of the unincorporated charity w8re transferred to the charitsble ¢offlpany wryth the exception of thè freehokl of the main theatre building and 179 Rosebery Avenue (land registry references NGL700054, LN19345 and 3670891. These are considered tts be permanent endowment assets and therefore remained in the Unin￿rpOrated charity whieh became a linked charity to the new charitable company by virtue of the charitable company becoming the SO￿ corpordte trustee of the unincorporated Charity. The finanaal ststemènts are presented as rf both charities were a single entity and the permanent endowment propety is included in fixed assets at a norninal value of £100 in accordance with the accounting policy in note 1lgl. Objeetives, Principal Activities and Future Development The object of the cornp8ny is to apply the income of the company in or iowards defraying the expenses of providing perforrnances at Sadlerf$ Wells Theatres for recreation and education. The principal activib.es of the Foundation are safeguarding of the as*ts, supsy)iting the charitsble objectives of Sadlerfs Wells Trust and acting 88 guardian to the origin81 values and purpose of Sadler's Wells Theatres as envisaged by Lilian Bawls. This includes essential repairs and ￿furbiShrnents to Sadler's Wells Theatres to serve theat￿ 8Ctivty while reducing environmentsl impa¢t whenever Possible. In May 2018 the charity entered into 8n agreement for lease with the London Legacy Development Corporation. This agreement provides for the Foundation to enter into a 200 year lease for Sadleffs WelL8 East, a new theatre and studios in the Queen ElYzab8th olymp￿ Park as part of the East Bank project. Opening in 2024. Sadlerfs Wells East Mryll support artist development and training, and the ere8tion of new work. It is a resource for the whole of tt)e UK, offering a d88tination venue for dance companies around Btttain to tour to th8 capital, and hosting the best work from international choreographers. Perfom)an￿S dèveloped on the Stratrord stage will tourthe UK and the TrJ¥orld, ￿aChing new audienees. Public Betr)efit Sadler's Wells Foundabon Limited recognlses an¢J welcomes the need to cary out its charitable activities for the benefit of Ihe gener81 publi& To that end, and wlh regard to the guidan￿ of th8 charty commission inciuding the Charrty Commission's guidance on public benefit I'public benefit.. running a Charrty IP821'1. the Trustee5 consider that the folbmfjng activities demonstrate the way in which the Foundation achleves its aims.. Rep8irs and refurbishments undertaken ensure that Sadlers Wells continues to operdte with appropriate systems and equipment to support theatre operations and enhance audience exp8rienee Investment in project consurnancy and leg81 advice has been made to ensure that the new venue can deliver fore¢a5t benefits locally, nation811y and intemationally Revièw of Flnanclal Activtties The Foundation renteLI the theatre to Sadlers Wells Trust. with a rentsl Ineome of £300k received during the period 12021122.. £565kl. 2021122 included an extra year of rent, previously forgwen during the pandemic and subsequently paid. No fundraising for FF&E refurbishrnent was undertsken in the current year 12021122 income.. £620.6191. £125.698 was spent during the year on essentsal repairs 8nd maintenance of the Sadlerfs W8118 theatre in Islington, cApitalis8d and depreciated in line Lwth accounting policies. EWenditU￿ of £50,820 was re¢orded under other resources rnainly against costs connected with the new theatre currently bein9 built as part of East Bank. The delivery of the new Sadler's Wells theatre will requi￿ fixtures, fittings and equipment to be purchased by the FtsuThJation during the nextfinancial year.

Sadler's Wells Foundation Limited Trustees. Report {continued) Reserves Policy The charitys reserve poliey is to accurnulate sufficient unrestricted reserves to enable it to provide for a planned asset replacemen( renewal and repair policy overthe medium to long temi. This is to be athieved by renting out its main asset. the theatre complex, seeking Arts Council grants and fundraising. £1.238,603 of unrestricted funcjs We￿ held at yèar end. This fund is hdd as directed by the Trustees to be expended line wth the SWF Permanent En￿O￿ent ReseNe. or any other expenditure which is charged against unrestricted incorne. Funds have been raised for fixtures. ffttings and equipment at the the81￿ In Stratford. As at the year end these funds were £714k vAth a further £1m ryised after the year end. The expectstion is that the majority of these funds wll be expended during the year to March 24. Fundraising Sadlerfs Wells operates an intemal fundraising team and is a member of the Fundraising Regulator. Our approaeh tskes ac¢ount of the Code of Fundraising Pr8¢tits and we have complied wpth the standards of the Regulator. We continue to complywth the General Data Protection Regulations and ojr priva¢y policy is avai18ble at ￿*￿v.SadlerSwelI$.corn1about-uslpnVaCY-poIjcy. No fundraising complaints were ￿te1Ved during the year. Going Concern There 8re no material uncértaintie8 to be reported would affèct the ehaiitys ability to continu8 as a going Rlsk Management The risk register has been updated during th8 period. Responsibilty for monitoting and mltigabng risks is delegated to the appropriate Trustees or man8gers. The key risks id8ntified are building compli8n¢e failure, fire and lack of funds for netsssary capital works. Additional risks have been identified for Sadlevs Well$ East in particular insuffiu8nt handovw arKI training peiiod, Impact of construction delays on costs and r8putstion and insufficient mobilisation budget. Trustees The Trustees who served during the period under revEw were as follows.. R8b Bennetts OBE {Chaim)anl Nigel Higgins (Deputy thwrrn8nl Daniel Daw Kathryn Firth Robert Glick Andrew Lerpiniere Roger Spen¢e Paul Willi8ms Jennifer Beningfield Appdnted 2 Marth 2023 The Trust8es are appointed by the members who are also the Trustees. A skills audit of the Trustees is conducted annually in order to better infom7 de(isions regarding the appointrnent of new Trustees. The Foundation provides an induction for neuAy appointed Trustees which informs them of their dutiÈs and responsibilities 88 directors of the company, and encourages Trustees to keep abreast of emerging future developments through attendance at rejevant sector events as well as wth charity cornmission guidance updates. The Trustees delegate the day to day runnlng of the Foundation to the Chief Execullve 8nd Artisti¢ D1￿Ctor, Alistair Spakling CBE, 8nd Executive Dire¢tor, Britannia Morton. The Trustees approve the annual budget, and delegate responsibility forthe dayto day management of the operating budgets to appropriat8 senior staff.

Sadler's Wells Foundation Limited Trustees, Report (continued) Statemant of Trustees. Responsibilitiès The Trustees (who are also directors of Sadlerfs Wells Foundation Limited forthe purposes of comp8ny18wI are responsible for preparing the Trustees. Report and the finan¢ial statements in accordance wth applicable law and United Kingdom A￿Unting Standards (United ￿ngdorn G8nerallyA¢cepted Accounting Company law requires the trust8es to prepare financi81 statements for each financial year which give a true and fair view of the state of the affairs of the tharitable company and of the incoming resources and application of resources, including the income and expendrture of the charitable company for that period. In preparing these finanual ststements. the trustees are required to= select suitable accounting policies and then apply them consistentty. observe the methods and prinCip￿S in the Charities SORP., make judg8rnents and accounting Èstimates that are reasonable and prudent., state whether applicable UK A¢￿unting Standards have been followed, subiect to any material departures disclosed and expkined in the financial statements.. and prepare the financial stalernents on the goino cOn￿M basis unless it is inapproprrate to presume that the. comp8nywll continue in business. The trustees are responsible for keeping adequate accounting records that ¢isclose with reastsn8ble a¢cur8¢y at any time the financial position of the charitsble company and enable them to ernsU￿ that the finanoal ststements eomply wth the Comp8nies Aei 2006. They are also responsible for safeguarding the 8ssets of the company and hence for taking reasonabl steps for the prevention and detection of fraud and Other irregularities. Disclosure Cf infom￿tIOn to Audttors So f3r as the trustees are aware, there is no relevant audit infomiation of which the compan￿$ auditors are unaware. The trustees have taken 811 the steps th8t they ought to have taken as trustees in order to make themselves aware of any relevant audlt infom)ation and to establish that the cornpanvs auditors a￿ aware of that informatK)n. Connected Charities Ssdlerfs Wells Foundation Lirnited is connected to other charities, detaits of which are given in note 20 to th8 finanual statements. For 8 fuller understanding of tt)e operation and perf0rrnan￿ of the Sadle￿$ Wells group of charities, Copies of the accounts of Sad18rf$ Wells Trust can be obtained from Sa(fleffs Wells. RoseberyAvenue, London EC1 R 4TN. Auditor The auditors, Moore ￿'ngston Smith LLP. are deemed to be rÈapsy)intsd under section 487 121 of the Companies Act 2006. This report has been prepared in accordance urith the spècial provis￿n$ relating to small companies ￿thin P8rt 15 ofthe Companies Act 2006. Approved by the members ofthe board on tsbilioi4 and signed on their behalf by. Rab 8ennetts OBE Chairman

Sadler's Wells Foundation Limited Independent Auditor's Report to the Members of Sadlerfs Wells Foundation Limited Opinion We have audited the financial ststements of Sadlerfs Wdls Foundation (the 'company') for the year erK1ed 31 March 2023 which compr6e the Ststement of Income and Retrdined Eamings, the Balance Sheet and notes to the financial siatements, induding a summary of significant accounts'ng policies. The firAncial repcfbng frdmework that has been applied in their preparation is applicable law and United ￿ngdOM Accounbng Standards, including FPS 102 The ￿nancIal Reporting Stsndard applicable in thg. IIK and Rp.niJhlir nf 1rp.land fljnitpd Kinodcjm CryFnp.r2lk Acr.?.ntg.d ArrniJnhno Prarhrp.). In our opinion the finanaal statements-. give a true and fair Iqew of the state of the charitable companys a1fdirs as at 31 March 2023 and of its incorning rdsources and application of resources, including its income and expenditsjre for the vear then ended.. have been'propèrfy prepar& in accordance with United Kingdom Generally Acceptsd Accounting have been p￿pared in accordan￿ with the reqvirements of the Companies Att 2006. Basis for opioion We conducted our audit in accordance with International Stsndards on Auditing (u￿ (ISAS (UK)} and applicable law. Our responsibility"& under those standards are further d&cribed in the Auditorfs responsibilities for the audit of the financial ststsments section of our report. We are independent of the company in accordan￿ with the ethical requirernents that are relevant to our audit of the financial ststements in the UK, including the FRC'S Ethical Stsndard, and we have fulfilled our ott)er ethical responsibilib.es in accordan￿ wth these requirements. We believe that the audit ewdence we have obtsined is sufficient and appropriate ts provide a basis for our opinion. Conclusions relating to going concern In aud￿ng the financial statements, we have concluded that the trust&s' use of the going concern bags of ￿cOUnting in the preparation of the financrdl statements is appropriate. Based on the work we have perfomed, we have not identified any material urtertainues relating to events or conditiors that, individually or collectively, may cast significant doubt on companvs ability to continue as a going concem for a period of at least tsvelve ￿￿th5 from when the finanoal statements are authorised for isgue. Our responsibilities and the res￿nsibl11￿eS of the dirertors with r£%pett to going concem are described in the releydnt sectiors of this ￿pOr￿ Other inforniation The other information CL￿priseS the information included in the annual report, other than the financial statements and our auditorfs rep)rt thereon. directors are responsible for the other information contsined ￿thin the annual report. Our opinion on the financial staterrents does not cover the other information and, except to the extsnt otherwrse expliC￿Y stated in our Teport, we do not express any fomi of assurance condusion thereon. Our r￿ponsIbIlity is to read the other information and, in doiNJ 50, con&der whether the other information is materially rnconsistent with the flnancial statsments or our knowledge obtsined in the cour* of the audit or Other￿Se appears to be matsrially missiated. If we idenbfy such rnaterial inconsistenaes or apparent material rnisstatements, we are required to report that fart. We have nothing tr) report in this regard.

Sadler's Wells Foundation Limited Independent Auditorfs Report to the Members of Sadlerfs Wells Foundation Limited Opinlons on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undetsken in the ccyjrse of the audit.. the information given in the TnJste&' Report for the finanaal year for which the finanaal ststements are prepared ￿ consistent ￿th the financial statements- and the Trustets, Report has been prepared in accordantr applioble ￿al requirements. Matters on whlch we are required to rep)rt by exception In the light of the knovledge and underdnding of the company and its enwronment obtsined in the course of the audit, we have not identified material mlsstatements in the Trustees, ReporL We have nothino to report in reswt of the adequate accounting records have not been kept, or retums adequate for our audit kve not been received from branches not Msited by us. or the financial ststements are not in agreement with the accounb'ng r￿rdS and retrJrns,' or certain disclosur& of trustees, rernuneration specified by law are not made,. or we have not received all the information and explanations we require for our audit. or the dirertors We￿ not entitl& to p￿pare the financial statements in acctyilance with the srnall COm￿nieS regime and tske advantsge of the small companies, exemption in prep￿ring the Dirertors, Report and tske advantsge of the srnall companies exempts'on from the requirement to prepare a 5trate9iC Report. Responsibilities of Trustees As explained more fully in the Trusts' Responsibilities StatemenL the tsuskts are responsible for the p￿paration of the financial ststements and for being satisfied that they give a true and fair wew, and for ch interr￿1 control as the trustees deterrnine is necessary to enable the preparation of financial ststs'rnents th* are free from Material misstrdtement, whether due to fraud or error. Auditor's responsibillties for the audit of tht financial ststements Our objettlves are to obtsin reasonable assuran￿ atx)ut whether the financial statemer)ts as a whole a free from material misstaternent, whether due to tsud or error, and to issue an auditor's report that indudes our opinion. Rea9)nab￿ assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ￿AS {UKI Mll ahNays detect a material misststernent when it exsts. Misstatements can arise from fraud or error and are considered mèterial if, individualty or in the aggregate, tw could reasonably expected to influence the ¥onomic declsions of users tsken on the ba4$ of these financial ststements.

Sadler's Wells Foundation Limited Independent Auditorfs Report to the Members of Sadlerfs Wells Foundation Limited (continued) Audrtorfs responsibilities for the audit of the financial ststements (continued) As part of an audit in accordan￿ wth ISA5 (UK) we exercise PrOfe￿Onal judgemert and maintsin professional sceptycism throughout the audit. We also: ldenb.fy and assoss the risks of material misststement of the finanaal statements, whether due to frdud or error, design and perform audrf( prLKedure5 responsive to those risks, and obtain audit evidence that is sufficient and appropriate to prO￿l￿e a basis for our opinion. The risk of not detecting a material misstatsrnent r&ulting.from fraud is higher than for one resukn.ng from error, as frAiJd invn￿? mlliI.vinn. f()ropnJ. intgntiMAI nrni<%lnn<. mivp.nr@r￿.n￿￿dn£. nr tsvprridg nf Obtsin an understsnding of intemal control relevant to the audfc in order to design audit prtxedures that are appmpriate in the circumstances, but not for the purposes of exprwing an opinion on the effectiven&s of the company's internal control. Evaluate the appropriateness of accountiw policies used and the reasonableness of accounting estimates and relatsd disclosures made by the directors. Condude on the appropriateness of the dIr￿torS. use of the going contrm basis of accounting and, based on the audit e¥Adence obtsined, whether a material uncetsinty exists related to events or conditions that may cast significant doubt on the companfs abilty to continLE as a going concem. If we conclude that a material Un￿rts1nty ￿$ts, we are required to draw attention in our auditorfs report to the related disdosures in the financial ststements or, rf such disclosura£ are inadequate, to rnodify our opinion. Our conclusions are based on the audit e￿iden￿ obtained up to the date of our auditorfs report. However, fubjre events or conditions may cause the company to to continue as a going concern. Evaluate the overall prentstion, sthjcture and content of the financ￿1 ststernents, including the disdosures, and whether the financial ststements represent the underfwng transathorns and events in a manner that achieves fair prontstion. We cornrnunicate with those charged wth govemance regarding, arrrt)ng other matters, the planneij scope and timing of the audit and signnlcant audit findingss i￿luding any signlficant defici￿cleS in Intsrnal control that we identifv durino our audit. Explanation as to what extent the audit was considered capable of detectlng irregularities, including fraud Irregularities, including fraud, are instsn￿ of non-complian￿ wth laws and regulations. We design procedures In line with our r4)onsibilits"£%, outlined above, to det material misstatements in respert of irregularities, includlng fraud. The extsnt to whith our prO￿d￿reS are capable of detecbng Irregularities, including fraud is detsiled below. The objectives of audlt in respect of fraud, are. to identify and assess the risks of material misstatement of the financial atements due to fraud,. to obtain sufficient appropriate audit ewdence regarding the as￿ed risks of material missraternent due to fraud, through designing and implementing appropriate responses to those assessed risks,. and to respond appropriately to instances of fraud or suspected fraud identifid during the audfc. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charyed with onvprnHnrp nfth• ￿M*￿thi

Sadler's Wells Foundation Limited Independent Auditor's Report to the Members of Sadler's Wells Foundation Limited (continued) Explanation as to what extent the audlt was ¢onsidered capable of detectin9 trregularitie$. Including fraud Icontinuedl Our appr08ch was as follows-. We obtsined an understsnding of the legal and regulatory requirements applicable to th8 company and considered that the most significant are the Companies Act 2006 and UK financial reporting standards as issued by the Financlal Repo￿ng Council. We obtained an understsnding of how the company complies wth these requ1￿mernts by discussion$ wth managernent and those ch8rged wth govemance. We assessed the risk of material misstaterfient of thè finanoal statements, including the risk of mateThal misstatement du8 to fraud and how it migm occur, by holding discussions with management and those eh8rged wth govemance. •We inquired of rnanagernent and those charged wth govemance as to any known instsnces of non- compliance or suspected non-compliance with laws and regulations. Based on this understanding, we designed specific appropriate 8udit procedures to ident￿Y instan￿5 of non-¢ompliance with laws and regulabons. This induded making enquiries of rnan8gement and those ¢harged wth govem8nce and obtaining add￿Onal ￿rrOborative evidènce as required. There are Inhe￿nt lirnitations in the audit procedu￿$ described above. We are ￿s8 likely to become awa of instsnces of non-cornplian¢e with laws and regulations that are not closely related to events 8nd transactions reflected in the financi81 ststements. ALSO, the risk of not d8te¢b"ng a rn8teri81 m￿stateMent due tts fraud is higher than the risk of not detecting one resU￿ng from error, 8$ fraud may invofve delib8re concealrnent by, for example, forgery or intentional misrepresentations. or through collusion. Use ot our Report This report is rnade soldy to the companls mernbers, as a bcMYy. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken for no purpose other than to draw to the attention of the companvs members those matters we are required to indude in 8n auditorfs report addressed to thern. To the fullest extent Permitted by law. we do not accept or assume ￿sPonsIbl11ty to any paty other than the company and the ¢ompany's members as a body. for our wcyk, forthis report, or for the opinions we have formed. K, L(J 6 December 2023 James cr￿ (senior Statutory Auditor) for and on behaff of Moce ￿'ngstOn Smith LLP, Chartered Accountsnts Ststutory Auditor 6th Floor 9 Appold Street London EC2A 2AP 10

Sadler's Wells Foundation Limited Statement of Financial Activities for the year ended 31 March 2023 Unrestrieted Restricted Total Totsl Funds Fund$ Funds Funds forthe Year fc+r the Y￿r for the Year for the Year ended ènded ended ended 31 March 31 March 31 Mar¢h 31 March 2023 2023 2023 2022 Income Income frorn Oonalions and legacies Sponsorship and donations Rent ￿CeIvable Investment income Oth8r in¢orne Note 620.619 565,696 55 663 300,000 4,353 28,402 300,000 4,353 30,172 1,770 Total Income 332,755 1,770 334,525 1,187,033 Expenditure Raising funds 7,999 7,999 88,502 Charitable activities Depreaation Other Totsl Expenditure 138,567 62.607 201,174 9.114 1.751 18,864 147,681 64.358 220,038 227,264 55,189 370,955 3&4 Net In¢omellExpenditurel 131,581 117,0941 114,487 816,078 Net Funds at 1 April 2022 1,107,022 934,591 2,041,613 1,225,536 Net Funds at 31 Marth 2023 15 1,238.603 917,497 2,156,100 2.041.613 None of the Compan￿5 actiwties were acquired or discontinued during the above finantsal periods. The ¢ornpany has no recognised gains and bsses other than those dealt wth in the above Statement of Financial Activities.

Sadlerfs Wells Foundation Limited Balan￿ Sheet as at 31 March 2023 2023 2023 2022 2022 Note Fixed Assets Tangible assets Investment property 461,364 150,000 611.364 483,347 150,000 633,347 Current Assets Debtors Cash at bank and in hand 317.973 1,260.743 1.578,716 636,848 876,640 1.513,488 creditors: Amounts Falling Due Within One Year 10 33,980 1105,2221 Net Current Assets 1,544,736 1,408,266 Total Assets Less Current Li8bilFties 2.156,100 2,041,613 Fund¥ Restrict8d Unrestricl¢d 15 15 917,497 1,238,603 2.156,100 934.591 1.107,022 2,041,613 These financial ststements have been preparèd in accordance wth the prowsions applicable to eompanies subject to the small companies r￿lMe. The financial statements were approved by the board of trustees and authorised for issue on 181 I 112013 and, are signed on its behaw by. Rab Bennetts OBE (Chairman) Cornpany nurnber 08338605 12

Sadler's Wells Foundation Limited Statement of Cash Flow for the year ended 31 March 2023 Yearended 31 March 2023 Year end8d 31 Ma￿h 2022 Note Net eash ffows provided by oper?ts"ng 8CtiMtles 12 509.801 507.260 Cash flows from investing activities 13 1125.6981 1166,9061 Net change in cash and cash equlvalents in the period 384.103 340.354 Reconciliation of Net Cash Flow to movement in Net Cash Change in cash and cash equivalents in the period 384.103 340.354 Movement in net cash in the pèriod Net ¢ash and rAsh equSvalents at 1 April 2022 Net cash and cash equlvaleffls at 31 March 2023 384,103 876,640 1.260,743 340.354 536,286 876.640 14 13

Sadler's Wells Foundation Limited Notes to the financial statements for the year ended 31 March 2023 1. Accountin9 Policies lal Basis of accounting The financial stslements have been preparèd in accordance with the Financial Reporting Standard applScablè in the UK and Republic of Ireland IFRS 1021. The Charrtable Company is blic benefit entity for the purposes ¢)f FRS 102 and threfore the Charity also prepared its financial statement5 in accordance with the Statement of Recornmended practi￿ applicable to chariti8s preparing their accounts in accordance wth the Financial Reporting Standard applicablè in the UK and Republic of Ireland (The FRS 102 Charitw SORPI. the Companies Act 2006 and The Charities Act 2011. Th8 finanoal statements are prepared in sterfing, which is the functional currency of the charity. Monetary amounts in th8 financial statements are rounded to the ne8￿$t pound. The fillanrial statements have been prepared under the historical cost convention, mcrfJiff8d to in¢lude investment propaite$ at fair value. The principal accounting policies adopted 8re set out below. Ibl Going concern The financial statements are prepared on a going concem basis which assumes that the charrtable ¢ompany will conbnue in operational existence for the foreseeable future.There are no matsrial uncertainties to be reported which would affect the charitab18 ¢ompanYs abilty to continue as 8 going ￿ncern. Recognition of income lil Donations are credited to the Ststement of Financlal Activities when receivable wthout ¢onditions. lill Inte￿$[ irEcome is credited to tt)e Statement of Finanual Activities when recelvabla. liiil Restri¢ted fuThds are used for the speofic purpose laid down by the donor. livl Rent is credited to the Staternent of Fin8n¢ial ActiMties when reC￿vable. Iv) The income reC￿nitIon principles of FRS102 are adopted.. Evidence of errtidement to income. Receipt is probable and the amount can be measured reliably. dl Expenditure All direct charitsble expenditure is accounted for on an accruals basis. Support costs are allocatèd based on the use of reserves where appropriate. (el Tangible fixed assets Fixed assets are stated at cosL Depreciation is provided on a straight line basis to write down tt)e book value over the estimated useful live$ of the assets as lollow5-. Freehold properties Leasehold propèrbes Fixturas, filtings and equipment Speckalist Equipment Construction and Buildings work Assets in the course of con$buction 50 years Over the p8ri0d of the1è8se- 125 years Ovér 3 years Over 3 years Over 3 years Not depreciated until brought into practical use 14

Sadlerfs Wells Foundation Limited Notes to the financial statements for the year ended 31 March 2023 (continued) l. Ac¢ounting Poli¢ie$ Iconll A remew of dep￿cIation rates, useful lives of assèts. resldual value and Impairrnent tskes pla on an annual basis. lfj Investment properties Investment property, which is propety held to eam rentals andlor for capitsl appre¢iath)n. is initially recognis8d at cost, thi¢h includes the purchase cost and any diredy attributabl8 expenditure. SubsequenUy it is measured at fair valu8 at the reporting end date. The surplus or deficr( on revaluation is recognised in the incorne and expenditure a¢count. 191 Freehold and leasehold land and buildings The Foundation owns the freehold and leasehold interests in land and buildings comprising the sad￿rf5 Wells Theatre redevelopment site. These are leased to Sadlerfs Wells Theatre Trust Lirnited which operates the tt)eatre in fulfilment of the Foundation's principal objeetive to support the theatre activities and are therefore recognised as functional properties at ¢ost less accurnulated depreciation. The freehold of the original land is held on ￿rrnanent en¢JowTnent tnjsts as described at the start of the Trustees, Report at a nominal value of £100. The Foundation also owns the freehold interest in 1 Arfington Way which is leased to Sadler's WelL Limited, a related party, at a peppercorn rent. Sadlers Wells Limited has now granted a sublease to a commercial tenant and accordingty the freehold Inte￿$t has row been ￿COgnised at fair value as an investment property. Ihl Critieal accounting areas and us• of judgements In preparing the finaricial statements it is ne¢essary to rnake certain iudgernents, estimates and assumption5 that affect the arnounts recognised in the finanaal statements.. induding estimates of useful lives of assets and depreciation and impaimient polici8S. Key sources of estimation uncertainty The estim8tes 8nd assumptions which havè a Significant risk of causing a material adjustsnent to the c2rrying amount of assets and liabilibes are ouuined befow. Fair value of Investment property The companls investment property is included in the finanoal staternents at valuation as desrJibed in note 8 to the financial statements. This is conSide￿d to be s eritiC81 accounting estimat8 in iriew of the amounts invofved and the judgements applied in their valuation. An independent valuation was conducted in 2020 and the trustees have Since ￿vieWed the position and consider that the valuations ￿p￿Sents the best estimate of fair value at the balance sheet 15

Sadler's Wells Foundation Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 1. Accounting Poli¢i*s {conYI lil Financial Instruments The charity has elected to apply the provlsions of section two 'basic financial instruments. of FRS102 to all of its financial instruments. They are recognised in the charitys statement of financial position when the charity becornes paty to the contractual provisions of th8 instrument. a. Cash and ¢ash equivalents Cash and cash eouivalenis include cash 8t banks and in hand and short term deposits with maturity date ol three months or less at the balan￿ sheet dat8, aniy investrnents capable of irnmediate ea$h realisation. b. Debtors and ¢redrtors Debtors and creditors receivable or payab￿ within one year of the ￿pOrting date are carried at tt)8ir transaction pric8 and subsequently at setuement value. Debtors and creditors that are receivable or payable in more than one y88r and noi subject to a market rate of interest are measuth at the present value of the expected future receipt5 or payment discounted at a market rate of interest. 2. Taxation The company is a registe￿￿ charity and as such, 15 entitfed to exernption from taxation underthe Corporation Tax Ad 2010. 3. Expenditure Year End•d Year Ended 31 March 31 Mar¢h 2023 2022 General Revenue Costs Future capital project costs Support costs (note 41 50,820 13,538 50.689 Support Costs Year Ended Year Ended 31 March 31 Mareh 2023 2022 Bank and credit card charges Governance costs 432 13,106 4.500 Auditor remuneration of £8,485 for current yearféès12022.' £4,5001. £1.771 for prior yearfees 12022.. £nill, ￿,000 for current year non-audit fees12022.. £nill and £850 for prior year non-audit fees12022.. £nill is included in governance costs for the Current year. 5. Employees The company arnployed no staff during the year. Administrat've support is provide<J by Sadler's Wells Trust Limited. The Tmstees recewed no remuneration for the services they provided to the company. and no expenses were reimbursed. The company has an Insuran￿ poliey in respe¢t of G￿lmS ag8inst the Trusteés of the company. 16

Sadler's Wells Foundation Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 6 Intangible Fixed Assèts Restricted Re$tricted Intsngible assets Total Co$t As at 1 April 2022 and 31 March 2023 218,376 216,376 AJnortisation 216,376 216,376 Net Book Value Totsl Net Intan9tble Fixed Assets 7 Tangible Fixed Assets Restricted Restricted Freehold Land and Buildings Restricted Fixtures, Fittings & Equipment Total Cost As at 1 April 2022 Addrtsons Diswsals As at 31 March 2023 2,742,181 3,836.516 6.578.697 48,1551 3.788.361 48,1551 6.530,542 2,742,181 Depreciation As at 1 April 2022 Charge for the year Disposals As at 31 March 2023 2,495,986 9.114 3,836,516 6,332.502 9,114 48,1551 6.293.461 48.1551 3,788.361 2,505,100 Net Book Value At 31 March 2023 At 31 March 2022 237,081 246,195 237,081 246.195 17

Sadler's Wells Foundation Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 7 Tangible Fixed Assets {continuedl Unrestricted un￿strICted Designated Unrestricted Leasehold Fixtures Fixtures Land and Fitting$ & Fittang$ & Buiklings Equipment Equipment Tolal Cost at 7 April 2022 Additions Disposals As at 31 Mar¢h 2023 85,750 459,977 860,121 125,698 111.9591 973,860 1,405,848 125,698 {11,9591 1,519,587 85,750 459,977 Depreciatlon As 8t 1 April 2022 Charge for the year Disposals As at 31 March 2023 47,676 692 459,977 661,043 137.875 11,9591 786,959 1.168,696 138.567 111,9591 1.295.304 48.368 459,977 Net Book Value At 31 Marth 2023 At 31 March 2022 37,382 38.074 186,901 199.078 224,283 237.152 Total Net Tangible Fixed Assets 461,364 Restriued freehold land and buildings cornprises.. the bo)k value of thè site of the theatre cornplex, 28 Arfington Way an¢J 181 Rosebery Avenue. Unrestricted lèasehold land and buildings comprises.. 15 parking spaces at 177 Rosebery Avènue. 8 Investment property Invèstment pmperty comprises the freehokl interest of the Shakespeares Head F￿blIC House at 1 Arfington Way, London. Th8 f8ir value of the investrnent propety has been anived at on the basis of a valuation Carried out as at 31 March 2020 by Fkurets Limited Chartered Surveyors, who are not eonnected with the Company. The valuation w8s made on an open market value basis by referen￿ to market eviden￿ of transaction pricés for simil2r properties. The valuation was reviewed in the year internally and the trustees consider that this is the best estim8te of the fairv8lue at the balance sheet date. 2023 2022 Fatrvalue As at 1 April 2022 and 31st hlarch 2023 150,000 150,000 18

Sadler's Wells Foundation Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 9 Debtors 31 March 2023 31 March 2022 Trade debtors Taxation and social security P￿phyMentS and accrued income 3,226 22.564 292,183 317,973 340,778 296.070 636,848 10 Creditor5 31 March 2023 31 March 2022 Trade creditors Taxation and social security Accruals 495 10,912 66,810 27.500 105.222 33.485 33,980 19

Sadler's Wells Foundation Limited Notes to the financial statements for the year ended 31 March 2023 {continued) 11 Analysrs of Net Assets between Funds Tanglble Ftxeil Assets Investment properties Net Current Assets al Current year Total Restricted funds Arlington Way Redevelopment Fund Reslrieted Fixed Assets Theatre Redevelopment Fund FF&E Refurbishment 10.979 25,437 200,665 10,979 (25.4371 200.665 705.853 917.497 705,853 680,416 237.081 Unrestricted funds SWF Pemianent Endowment Reserve INO. 1150844-11 224,283 224,283 150.000 150.000 884,320 864,320 1238 603 1,238.603 Net Funds 461,364 150.000 1,544,73 2,156.100 T8ngibl8 Fixed Assets Investment properties Net Current Assets bl Prior year Total Restricted funds Arfington Way R￿evelOprnent Fund Capitsl Project Reserv8 Theat￿ Redevelopment Fund FF&E RefurbiShM￿t 11,418 25,437 209.341 11,418 125,4371 209.341 713.832 934,591 713.832 688,395 246,196 Unrestricted funds SWF Permanent Endowrnent Reserve (No. 1150844-11 237,151 237.151 150.000 150.000 719,871 719,871 1107,0 1,107.022 Net Funils 483,347 150,000 1.408,266 2,041,613 20

Sadlerfs Wells Foundation Limited Notes to the financial ststements for the year ended 31 March 2023 (continued) 12 Reeoncillation of Net Income from Oparating ACtI￿tieS to Net Cash Flows Year ended 31 Mar¢h 2023 Year ended 31 March 2022 N8t income for the reporbno period Depr8¢i8tion De¢reaselllncreasel in debtors (Decreaselllncrease in creditors 114.487 147,681 318,875 171.2421 816,078 227,264 1635.5841 99,502 Net cash InfkY￿ from opeTrdng a¢twities 509,801 507.260 13 Analysis of Cash Hows for Hèadings rn Cash Flow Statement Year ended 2023 Ye8r ended 2022 Cash flows from invèsting activities.. Purchase of property, plant and equipment 125,6981 1166,9061 125,6981 166,9(￿) 14 Analysis of Net cash 31 March 2022 Cash Flow 31 Mar¢h 2023 Cash * bank and in hand 876,640 384.103 1,260,743 21

Sadler's Wells Foundation Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 15 Movement on Funds al eurrent year At 1 April 2022 Income Expenditure Transfersl At 31 March Gains 2023 Unreslrieted funds SWF Perm8nent Endowment Fund (No. 1750844_11 1,107.022 332,755 1201,1741 1.238,603 1,107022 332 755 201 174 Restricted funds Arlington Way Redevelopment Fund Theatre Redeveloprnent Fund FF&E Refurbishment 1,238.603 11,418 (4391 10.979 209,341 18,6761 9,749 200,665 713,832 934 591 1,770 705,853 917497 Total Funds 2041 613 334 525 220 038 2 156 1(N) b} prioryear At 1 April 2021 Transfersl At 31 March Gains 2022 In¢ome Expenditure Unrestrlcted fun¢Js SWF Permanent Endowment Fund (No. 1150&14-11 813,946 566,414 1273,3381 1,107.022 566 414 273 338 Rèst17ct￿ funds Arfington Way Redevelopment Fun¢J Theatre Redevelopment Fund FF&E Refurtjishment 1 107022 11,857 14391 11,418 218,017 18,6761 88,502 209,341 181,715 411 589 620.619 620 619 713.832 934 591 Total Fund$ 1 225535 1 187033 2041 613 The Arfington Way Redevelopment Fund and the Th88tre Redevelopment Fund represent the net book value of ￿rtaiTr fixed assets purchased using monies donated to Sadler's Wells Foundation specifically for those purchase5. Expenditure on tt)ose funds represent the depre￿atIOn charge on those assets. The FF&E Refurbishment Fund represents funds ￿CeiVed and expended towards the current opitsl project. In addition it represents the net book value of assets purchased using monies don8tsd tOW8rds the current C8Pital project. The Trustees have also designated an unrestricted fund. The SWF Permanent Endowment Reserve INO. 1150844.11 represents funds transferred from Sadlers Wells Found£tion. These funds are held in trnst by Sadler's Wells Foundation Limited and are to be applied in meeting the costs of administering the charity, managing its assets and furthering the objects of the charity. 22

Sadlerfs Wells Foundation Limited Notes to the financial ststements for the year ended 31 March 2023 (continued) 16. Comparative Fund and Statement of Financial ACt[￿tieS Unrestricted Designated Restricted Total Funds Funds Funds Funds for the Year for the Year forthe Year for the Year ended ended eniled ended 31 March 31 March 31 March 31 Mar¢h 2022 2022 2022 2022 Note Income IrTrcome from Donations and legaci88 Sponsorship and donations Rent receivab Investment income Other income 620.619 620,619 565,696 565,696 55 663 663 Total Ineome 566,414 620,619 1.187.033 Expenditure Raising funds 88,502 88,502 Charitable 8¢tivities Depreciation Other Total Expenditure 218,149 55,189 273,338 9,115 227,264 55,189 370,955 97.617 Net Ineorne 293,076 523.002 816,078 Net Funds at 1 April 2021 813,946 411,589 1.225,535 Transfers bemeen funds Net Funds at 31 March 2022 1.107. 22 934,591 2.041,61 23

Sadler's Wells Foundation Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 17. Contln9ent Llability The assets of the company are subject to a fixed and floating d)arge by the Arts Council of England. As at 31 March 2023 th8 liabiifoe8 in respect of these ba18nces amounted to £46,917,380 12022.. £46,917,380) The liabilities would fall due rf Ihg theatre complex no longer used for its primary purpose. 18. Liabrlity of Members The company 18 lirnrfted by guarantee and the liability of members is limited to £1 each. At 31 Mar¢h 2023 there were g members12022.. 81. 19. Capital Commitments At 31 March 2023 S8dlerf8 We115 Foundation Limitèd had £235,418 12022.. £200,000) capitsl commitments not yet contracted for, and £nil12022.. £nill wntracted capital commitments. 20. Conne¢ted Charities During the year Sadlerfs Wells Foundation Limited received rentsl income of £300,00012022.. £565,696) from Sadlerfs Wells TnJst Limited, of which £150.000 was unpaid at year*nd. In addition the F￿ndstIOn recharged to the Trust credit Card transacbon charges totalling £nil 12022". £1,609). Sadler's Wells Foundation Limited was owed £29 by Sadlevs Wells Trust Limited 12022.. £340,77818t the 31 M8rch 2023. Sadle￿s Wells Foundation Limited is 8 member of Sadler's Wells Trust. 21. Related party transa¢tions Nigel Higgins is also a trustee and ¢hairrnan of Sadlerfs Wells Trust Lirnited. There were no Trustee related party transactions to disdose in the reporting period. 22. Amounts receivable under operatlng leases At the rep)rting date the company had contracted Mrith tenants for the following minimum lease pa￿TrentS. 31 Mareh 2023 31 March 2022 within 1 year 2-5 years over 5 years Totsl 312,000 1,377,893 1,611.939 3,301,832 24