IMPROBABLE REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Registered Charity No. 1155695 Crmnpany No. 08561272 "ACIHSJAO. 1611212023 C&MPANIES HOUSE A14 #255 1 IMPRO8A8LE ConteThtsol the Fin•rlal ststefflefits￿ thè¥￿ Ended 31 Marth 1013 Page Report of the Yrnstees Independent Examiner's Report Sratemeni of Finah£i31 Actibilies ealance Sheet Notes to the Financial StaterTrents IMPROBABLE Trustees, Re rt for the Year End 31 March 2023 The Trustees Iwho are also direttors of the charity for the purposes of the Companies Act) present their annual report together with the financial statements of Improbable (the harityl for the year ended 31 March 2023. The Trustees confirm that the Annual report and financial statements of the charity comply with the current statutory requirements. the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice Charities FRS 102 ISORPI 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 leffective January 20151. Charity N3me= Improbable Charity registration number: 1155695 Company registration number.. 08561272 Registered office: do PopHub 1st Floor. 41 Whitcomb Street, London WC2H 7DT Board of Trustees: The trustees in office during the year were as follows Paul Anderson Phil Clarke Stephen Daldry Natasha Freedman (chair) Francoise Girard (appointed December 20221 Patrick Handley lappointed March 2023) David G. Knott (resigned Oecember 20221 Elspeth Murray Benjamin Seng-Loong Yeoh lappointed August 20221 Griselda 8ourne Pauline Mayers Company Secretary: Victoria Grace Key Management Personnel: Phelim McDermott & Lee Simpson. Artistic Directors and joint Chief Executives Vidoria Grace, Executive Director Kathryn Bilyard. Executive Producer Accountants: Moore Kingston Smith LLP, 9 Appold Street. London. EC2 2AP. Stfurture overnan¢e and mana Constitution Improbable 15 3 company limited by guarantee, incorporated on 7 June 2013. governed bv its Memorandurn-& Articles of A550Ciation. The company wa5 registered 35 3 charity by.the Charity Commission in England and Wales on 7 February 2014. ement The object for whith the charity was established is to advance education for the public benefit by the promotion of the arts. in particular but not exclusively the art of drama. Recruitment and Appointment of Trustees The management of the company is the responsibility of the Trustees. who are appointed under the terms of the Articles of Association. They shall be no less than three and no more than ten. One-third of the Board of Directors, or, if their number is not a multiple of three then the number nearest to one third, shall retire from office each year at the Annual General Meeting. The retiring members shall be eligible for re-election unless it is expressly resolved otherwise. New Trustees are proposed by the cornpanws Executive Team and elected with a majority vote by the Trustees. Indurtion and Training of Trustees All new Trustees will attend a meeting with the Executive Team and. separately* the Chair of the Board. They will also be issued the Mefflorandum and Articles of A55OClation and current company business plan. Specific training and development opportunities offered by external bodies will also be offered to individual Board members or the 8oard as 3 whole as and when appropriate. Organisational Structure During 202212023 financial year Improbable embedded an additional team member to the senior management, incorporating Matilda Leyser as Associate Director, which came into effect in August 2022. The senior management team now consists of two Artistic Directors (who are also joint Chief Executives of the organisationl, an Associate Director. an Executive Director and Executive Producer. The senior team was sUPPOrted by an Open Space Producer Ipart timel, a Fundraising ¢)fficer (part timel, and an Administrator (full timel- The senior management team report to the Trustees at quarterly Board meetings, which are minuted by the Administrator. Related Parties Nothing to declare. Ai5k Management The Trustees have assessed the major risks to whith the charity is exposed, and have included a risk register detailing these in their latest business plan. Objertive5 The principal activities of the company throughout the year are to advance the arts for the public benefit. by the promotion in particular, but not exclusively, of the art of drama. When planning activities the trustee5 have considered the Charity Commission's guidance on public benefit. Including the guidance 'Public 8enefit- Running a Charity IPB21'. Improbable is "one of the brilliant faces of British theatre" (The Observer). and exists in order to expand and deepen the practice and application of improvisation. For Improbable, "Improvisation" might mean onstage improv, Open Space. Worldwork or any other emergent practice that brings awareness to each unfolding moment. Our view is that developing this awareness through improvisational practice has the capacity to rnaterially change the world. It creates models of leadership, collectivity and collaboration that are more effective than systems based on hierarchy or command and control. It awakens the individual's sense of their own aEenc¥ while creating and nurturing communitv and collective action. It Cfeètes a conversation between the tangible and the intangible. between'hard, and '50￿ power. It opens the possibility of a society where art. culture and the dreaming world are not treated as an add-on to be entertained after the important conversations have been had - they are central to decision making in social, organisational, legislative, economic and politic31 spheres. Improbable is led by Phelim MtDermott and Lee Simpson. who for over thirty year5 land since 1996 with Improbable) have been developin8 and sharing their improvisational prattice. Their journey began by performing improv onstage and devising shows: developed further as they found ways to bring improvisation into other theatre forms such as text- based plays and opera,. and then expanded beyond performance to bring the philosophie5 and practice of irnprovisation to community and societal issues. The breadth of Improbable's knowledge of improvisation and its application is unrivalled and means we occupy a vital space in the landscape of international theatre. Improbable's busine55 plan wa5 updated in May 2022. Improbable is the only National Portfolio Organi5ation of Arts Council England that is solely dedicated to improvisation. Activities and achievements Improbable's activity during the 2022123 financial year was extremely busy, with several new productions created and staged due to Post￿nementS from pandemic years. Improbable won Producer OfThe Year atThe Stage Awards 2023. Key actiwty= • Akhnaten IENO. LA Opera with Improbable) was remounted at Metropolitan Opera. NY with record sales for a remount produrtion including two sold-out performances. Alongside this Improbable supported an engagernent project, RA, led by Anthonv Roth Constazo with Bronx Arts Ensemble engaging young people across four boroughs in a (￿Created public performance series. Akhnaten was remounted again at English National Opera in Spring 2023 to sold-out shows. Phelim McDermott and Kathryn 8ilyard worked with LA Opera as they mounted 8ambinO for the first time in the LA area which will tour annually for five years. Too Of Gloss was performed at Ruhrfestspiele Recklinghausen and Memorial Hall. University of Carolina Iboth co-commissioners of the workl. My Neighbour Totoro premiered at the Barbican, produced by RSC and Joe Hisaishi with lrnprobable and Nippon TV to a sold-out run and critical and award success. Winner of six Olivier Award5 including= Best Set Design - Tom Pye, Best Costume Design - Kimie Nakano. Best Director- Phelim McDermott. Best Entertainment or Comedy Play, Best Lighting Design- Jessica Hung Han Yun. Best Sound Design - Tony Gayle. Winner of five Whatsonstage Awards including: 8est Direction- Phelim McDermott. Best Musical Dirertion/Supervision- Bruce O'Neil and Matt Smith, Best LiEhtinE Design - Jessica Hung Han Yun, Best Set Design - Tom Pye and Basil Twist. Best Sound Design- Tony Gayle. Critics, Circle Theatre Awards.. Best Designer- Tom Outside The Frome continued development with a R&D period in collaboration with Telepresence Stage at Brighton University. The Hour5 premiered at the Metropolitan Opera, NY and has been reprogramrned for 2024. An Improboble Musicol toured to Exeter Northcott and Hackney Empire. and will continue touring in 2024. Perfect Show For Rachel. created by Zoo Co and supported by Improbable, premiered at the Barbican and won an Off West End Award for Access. This will tour in 2024. • Improbable won Producer OfThe Year at The Stage Awards 2023. Ongoing Improbable's Open Space For Hire retumed to in-person spaces for the majority of events. The annual Devoted and Disgruntled event took place at Gulbenkian Arts Centre in Jan 2023. Satellite Devoted and Disgruntled events took place around the country throughout the year. Organisational review of the Compan￿5 Strengths, weaknesses and opportunities as the industry slowly emerged from the pandemic, with parti¢ular consideration of the shift in business model towards a more place-based organisational structure, with sustainability and financiallpersonnel resilience at its heart. This included the successful search for a new Improbable home at Bore Place in Kent and the start of activity onsite including collaborating on Arts Award delivery. This relationship has developed throughout the financial year. and exploration of the partnership and the feasibility of transitioning to Kent will continue throughout 2023124. Flnanclal & Organlsatlonal Revlew Having operated as a partnership since 1996. Improbable was incorporated as a limited company in 2013 and received charitable status in 2014. At that point trustees resolved to build reserves, having not held any while operating as a partnership. A target was set to allocate £5.0￿- £IO.000 per financial year towards a charitable resenrfe. working towards on end goal of £63,700, or three months. organisational running costs. in line with Charity Commission recommendations by the end of the 2018- 2022 business plan cycle. During Covid-19, trustees identified an 'absolute minimum, level of reserves necessary for the healthy function of the organisation as £45,OCM). equivalent to 8 weeks, operational costs and in line with changing guidance in the sector during the pandemic. As of March 2023, the reserves level sits at £158,462. In 202212023 we received a l year extension on our NPO funding agreement with Arts Council England totalling £274.651, ond raised a further £38,659 through donation. A further £234.631 was secured through box office income. producing and management fees. workshops and other 50urce5. Approved by the Board of Trustees and signed on behalf of the Boafd= Natasha Freedman Trustee and Chaif 08ie' 13th De￿Ir￿¥ 2023 Independent Examiner's Reportto the Trustees ollMPRO8ABLE Forthe Year Ended 31 Martal Incivne 549,192 545.192 398,412 Expendlture ¢￿- Rai5in8 fund5 Charitable arti¥ities 5?6.670 576.670 455.361 Tot41 Expenditure 576.670 575.670 455,361 Net IÉMpenthturel I Income 127.4781 127,4781 156.9491 Theatre tax rdief 22,673 22,673 Net rn0￿1￿ent in fumds 14.BOSI 14,80SI 156,9491 Fund balances at 1st ￿pri1 2022 163.561 163,561 220.510 Fund balances at 31st M￿h 2023 12 158,7 158,756 163,561 All dtsclosures relate only to continuing ￿trationS. TherÈ are no recogni5ed gains oi losses other than the net exper￿[￿re for thÈ year a5 laid out ibo¥e. Page 7 IMPROBABLE ANCE SHEEr as * 31 P•larth 2023 2013 2022 FIXED A55ETS Tangible assets 61 CURRENT ASSErs DEbtOTS Cash on sh(rt terrn depD51t at bank and in h•rKI io 84.122 131.605 215.727 11.537 185.519 197.C56 CREDITORS.. Amountsfa411fi8 du within one y￿r li 156.9711 133.5561 NET CUARENT AssErs 158.756 . 163,561 TOTAL ASSETS LE￿ CiIRRENT LIIBILMES 158.7 163.%1 TOTAL NEf ASSÉTS 158,7S6 163.561 FUNOS Ufirestricted Funds-. General funds 158.756 163,561 Restricted Funds TOTAL FUND5 158.756 163.561 For the ye3r ended 31 March 2023 the charity was entiileLI to exemptrcm fvom autht under sec￿0￿ 477 of ihe Companies Act 2006 relating to 5rnall companies. The members have not required the cLYnpany to obtsin •n audit of its&C¢￿nIS for the ye¥ in qI￿tion tn attordance with Section 476 of the Crmpanie5 Act 2(￿. The directors icknowledge thetr rew5ibility lor comp￿*.nE wAth the requirements of the Att ¥Ath respecrto accountinE record$ and for the preparation ol ihe accounts. The financial staiements have beer• wepared in acc£¥dance with the w0￿s1O￿$ appliCa￿tt0 crKnpanies subjett tothe srnall cort7ponies re&iffle. The financial statements were apwoved bythe Trustees •nd authwised for issue on 13 Oecember 2023 SIEned on thwr behalf bv.. and were Trustee-. Company No. P4atasha Freedrnan 08561272 Page 8 140TE5 TOTHE HNANOAL STATEMEPITS foiihe ye¥ ended JI M¥th 202J I. ACCouN￿N6 POUOES alAc(ouniin¢ (L￿ven￿on Basfjs ol Preparati Improbable 15 a ¢harity incorporated In En8lènd and Wales. The address at W￿(h the ¢haiityis tty'#ered can be found on page l ol this report. The chariV5 coThststulioll ian bE fvufid at I￿$addres& The financial statements hove been prepared in accorda￿e with ihe Finanoal Reporting Standard aN￿1cable in the UK and Republit of Ireland IFRS 1021. wt4ished on 16July2014_ The Charita￿e Company is a wblic benefit entity for the purposes of FRS 102 and therefore the charity also prepared its financial 5tstements in accudènce wth the Statement of Recornrnended Practice iPF4i¢atrAeto tharities prepanngtheir accounis in accordènce wth the Financial Reporting Standèrd applicable in the UK and Republic ol Ireland (The FRS 102 ChaTitye5 SORPI. the Companies Act 2006 and the Charities Act 2011. Theflnancial statements are kyepared insterltr% isthe Iwcfi¢Kwl rwrenty of company. Monetary amounts ￿ these tinancial Ststernerbtsa￿ rounded 10 the Th0are￿ powd. bl Goini Concern Basis The finontial statements have teen prepared on a ¢oing cwKern bas1> Havin8tarried trjt a detailed review of Charity's resources and the current economic challEnge5 faiing IK)th the Charity and Its Members the Trustee5 are 50ti5hed thatthe Charity has yJffitient cash flowsto meet its liabilities as theyfoll due for at least vear frown the date of apwoval of thefinarKi41 statements. I kubuntinKEstirn*tes In the view of the tru5tee5 in applwn8 the accountini ￿lIcIeS adopted, no judgements were required that ha¥e a signifitènt effÈrt on the amovnts reCo￿lSed in financial staiements. nor th anyesbm4tes or auumptions rnade carry a significant nsk of material adjusirnent in the next finarKi81 year. dl Fixed Assels Fixed assets are recorded at C05t. Am¢)unts incwred on capital items 0¥￿ £500 arECal*talisvJ. T3ngitdefixed assdsare depreciatd at annual raies to wriieoff the(o￿Of ihe assets o¥ertheir estimated Usef￿ lives usini the fdlownlmethc4j5￿é rates".- % per annL Method 0fficeequl￿en1 25% StrJ¢ht line el Inca￿1￿< re%pJrcts Donotion5 are rectsEnisÈd when thele is ewdenceof efflitlemenL the receipt iswobable andtheamount tèn be measured reliat4y. Grants. where entitlement is t¢￿ditIonal on thedelib*ryofa S￿lfIC pertormarKe by the charty. 3re recogniseil when the