OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-12-31-accounts

Charity Registration No. 01157934

Company Registration No. 08725788 (England and Wales)

THE PAIGNTON PICTURE HOUSE TRUST

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

THE PAIGNTON PICTURE HOUSE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mr P N Hawthorne Mr C I Wills Mr A F Bueno (Appointed 25 November 2020) Ms I Butler (Appointed 25 November 2020)

Charity number 01157934 Company number 08725788 Principal address Torbay Cinema (known as The Paignton Picture House) 2 Torbay Road Paignton Devon TQ4 6AF Registered office Wessex House Teign Road Newton Abbot Devon TQ12 4AA Independent examiner Darnells Chartered Accountants Quay House Quay Road Newton Abbot Devon TQ12 2BU

THE PAIGNTON PICTURE HOUSE TRUST

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Statement of cash flows 6
Notes to the financial statements 7 - 14

THE PAIGNTON PICTURE HOUSE TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the trust's [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 by Update Bulletin 1 published on 2 February 2016).

Objectives and activities

The objectives of the trust are specifically restricted to the following:

To preserve for the benefit of the people of Paignton, Devon and the Nation, the historical, architectural and constructional heritage that may exist in and around the Paignton Picture House, Torbay Road, Paignton, Devon in buildings (including any structure or erection, and any part of a building as so defined) of particular beauty or historical, architectural or constructional interest.

The aim of the trust is to restore the cinema, known as The Paignton Picture House, which is a grade II* listed building dating back to 1915. It is of great historical importance, being possibly the oldest purpose-built cinema in Europe with links to both the Singer family and Agatha Christie (it is known to have been attended by her when she lived in Torquay).

The trustees have paid due regard to guidance issued by the Charity Commission on public benefit. The trust relies on grants, donations and income from tours to cover its operating costs.

Currently the cinema is closed to the general public. The trustees are working with the architects and consultants to develop a plan restore and develop the historic cinema.

Achievements and performance

The Picture House is currently closed to the public, preventing any further tours of the Picture House for the time being, to enable essential maintenance to be carried out.

The trustees are working with Le Page Architects and the Real Media Organisation to develop a plan for the Picture House going forward.

The trustees are continuing to talk to the Grandson and Great Grandson of Agatha Christie, who are very interested in the future plans for restoration.

Financial review

The trust received an unrestricted Covid grant from Torbay Council during the year of £10,000 (2019: £Nil). In addition the trust received other unrestricted donations of £842 (2019: £9,422).

Restricted grants of £48,843 were awarded during the year (2019: £92,821), including a grant of £45,029 awarded by The Architectural Heritage Fund for transformational capital projects.

The trust incurred unrestricted expenditure of £9,455 (2019: £15,270) and restricted expenditure of £27,081 (2019: £11,261) leaving a Net income for the year of £1,388 (2019: Net expenditure of £5,840).

The total funds available at 31 December 2020 are £171,901, compromising Unrestricted funds of £51,079 and Restricted funds of £120,822.

THE PAIGNTON PICTURE HOUSE TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Reserves policy

It is the policy of the trust that unrestricted, free reserves which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the trust’s current activities while consideration is given to ways in which additional funds may be raised.

At 31 December 2020 the trust had a surplus on free reserves of £1,079 (2019: deficit of £309).

Further grants are expected to be applied for in the future, and fundraising is being undertaken by the trustees to cover the running costs and boost reserves for the major restoration work still to be undertaken.

Risk policy

The trustees have assessed the major risks to which the trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Future plans

The trustees have applied for a grant from the Agatha Christie Foundation which, together with other grant applications in the pipeline, is hoped will fund the next phase of the restoration of the building.

Structure, governance and management

The Paignton Picture House Trust was incorporated on 9 October 2013 and set up by an Order of the Charity Commissioners on 22 July 2014. The trust is a company limited by guarantee and a registered charity with the number 01157934 (England and Wales).

The trustees, who are also the directors for the purpose of company law, and who served during the year were:

Mr P N Hawthorne Mr C I Wills Mr P W Harris (Resigned 24 November 2020) Mr A F Bueno (Appointed 25 November 2020) Ms I Butler (Appointed 25 November 2020)

Recruitment and appointment of trustees

The trust has 3 Trustees constituting its Board of Trustees. The board has been discussing the possibility of recruiting new Trustees for their experience, skills and knowledge. New Trustees may be sought by open advertisement or through dialogues with other institutions with similar objects.

All Trustees give their time voluntarily and receive no benefits from the Foundation. Any expenses reclaimed by the Trustees from the Trust are set out in the notes to the accounts.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up.

The trustees' report was approved by the Board of Trustees.

Mr P N Hawthorne

Trustee Dated: 30 September 2021

THE PAIGNTON PICTURE HOUSE TRUST

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE PAIGNTON PICTURE HOUSE TRUST

I report on the financial statements of the trust for the year ended 31 December 2020, which are set out on pages 4 to 14.

Respective responsibilities of trustees and examiner

The trust’s trustees, who are also the directors of The Paignton Picture House Trust for the purposes of company law, are responsible for the preparation of the financial statements. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

Phil Raisey ACA, FCCA Darnells Chartered Accountants

Quay House Quay Road Newton Abbot Devon TQ12 2BU

Dated: 30 September 2021

THE PAIGNTON PICTURE HOUSE TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income from:
Donations and legacies
2
10,842
48,843
Investments
1
-
Total income
10,843
48,843
Expenditure on:
Charitable activities
3
9,455
27,081
Net income for the year/Net
movement in funds
1,388
21,762
Fund balances at 1
January 2020:
As originally reported
49,691
10,000
Prior year adjustment
10
-
89,060
As restated
49,691
99,060
Fund balances at 31
December 2020
51,079
120,822		 Unrestricted
Restricted
Total
funds
funds
Total
2020
2019
2019
2019
as restated
£
£
£
£
59,685
9,422
92,821
102,243
1
8
-
8
59,686
9,430
92,821
102,251
36,536
15,270
11,261
26,531
23,150
(5,840)
81,560
75,720
59,691
55,531
10,000
65,531
89,060
-
7,500
7,500
148,751
55,531
17,500
73,031
171,901
49,691
99,060
148,751		 Unrestricted
Restricted
Total
funds
funds
Total
2020
2019
2019
2019
as restated
£
£
£
£
59,685
9,422
92,821
102,243
1
8
-
8
59,686
9,430
92,821
102,251
36,536
15,270
11,261
26,531
23,150
(5,840)
81,560
75,720
59,691
55,531
10,000
65,531
89,060
-
7,500
7,500
148,751
55,531
17,500
73,031
171,901
49,691
99,060
148,751
102,251
26,531
75,720
65,531
7,500
73,031
148,751

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.

THE PAIGNTON PICTURE HOUSE TRUST

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
7
Current assets
Debtors
8
Cash at bank and in hand
Creditors: amounts falling due within
one year
9
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
10
Unrestricted funds		 2020
£
112,289
22,836
135,125
(13,224)		 £
50,000
121,901
171,901
120,822
51,079
171,901		 2019
as restated
£
£
50,000
89,060
9,863
98,923
(172)
98,751
148,751
99,060
49,691
148,751		 2019
as restated
£
£
50,000
89,060
9,863
98,923
(172)
98,751
148,751
99,060
49,691
148,751
148,751
99,060
49,691
148,751

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 December 2020.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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 30 September 2021

Mr P N Hawthorne Trustee

Company Registration No. 08725788

THE PAIGNTON PICTURE HOUSE TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
14
Investing activities
Interest received
Net cash generated from investing
activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2020
£
1		 £
12,972
1
12,973
9,863
22,836		 2019
£
8		 £
(6,920)
8
(6,912)
16,775
9,863

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

The Paignton Picture House Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Wessex House, Teign Road, Newton Abbot, Devon, TQ12 4AA.

1.1 Accounting convention

The financial statements have been prepared in accordance with the trust'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) (effective 1 January 2019)". The trust is a Public Benefit Entity as defined by FRS 102.

The accounts are prepared in sterling, which is the functional currency of the trust. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. 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 trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Income from government and other grants, whether "capital" grants or "revenue" grants, is recognised when the trust has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income from trading activities represents the value of tickets sold for tours to the extent that there is a right to consideration and is recorded at the fair value of the consideration received.

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure on charitable activities includes the costs of renovating the cinema, and other activities undertaken to further the objectives of the trust and their associated support costs.

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

Nil

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.

No depreciation is provided in respect of freehold buildings because, in the opinion of the trustees, the useful economic life and residual value are such that any provision for depreciation over the life of the asset would be immaterial.

1.7 Financial instruments

Financial instruments are recognised in the trust's balance sheet when the trust becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the trust’s contractual obligations expire or are discharged or cancelled.

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

2 Donations and legacies

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Donations and gifts
842
-
Grants receivable for
renovation of the cinema
10,000
48,843
10,842
48,843		 Total Unrestricted
Restricted
funds
funds
2020
2019
2019
£
£
£
842
9,422
-
58,843
-
92,821
59,685
9,422
92,821		 Total
2019
£
9,422
92,821
102,243

The donations and legacies for 2019 were analysed as follows:

Donations and gifts - Unrestricted funds £11,480

In 2020 the trust received a restricted grant of £11,261 from Historic England - see note 10 to the financial statements.

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

3 Charitable activities

Preservatio Preservatio
n of
n of
Paignton
Paignton
Picture
Picture
House House
2020 2019
£ £
Repairs and renovation costs 80 2,292
Insurance 3,961 5,165
Light and heat 681 765
Rates and water - 354
Charitable expenditure heading 5 327 -
Legal and professional fees 30,473 17,141
Sundry expenses 209 -
35,731 25,717
Share of support costs (see note 4) 305 314
Share of governance costs (see note 4) 500 500
36,536 26,531
Analysis by fund
Unrestricted funds 9,455 15,270
Restricted funds 27,081 11,261
36,536 26,531
For the year ended 31 December 2019
Unrestricted funds 15,270
Restricted funds 11,261
26,531

The governance costs represent accountancy fees, donated free of charge by Darnells Chartered Accountants.

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

4 Support costs

Support costs
Support
costs
Governance
costs
£
£
Bank charges
305
-
Independent Examiner's
fees
-
500
305
500
Analysed between
Charitable activities
305
500		 2020
£
305
500
805
805		 Support
costs
Governance
costs
£
£
314
-
-
500
314
500
314
500		 2019
£
314
500
814
814

5 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year. None of the trustees were reimbursed any expenses (2019 - none).

6 Employees

Number of employees

The average monthly number of employees during the year was:

2020 2019
Number Number
- -

7 Tangible fixed assets

Cost
At 1 January 2020 and 31 December 2020
Carrying amount
At 31 December 2019 and 31 December 2020
8
Debtors
Amounts falling due within one year:
Prepayments and accrued income
The Debtors above represent accrued grant income awarded but not yet drawn.		 Land and
2020
£
112,289		 buildings
£
50,000
50,000
2019
£
89,060

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

9 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income		 2020
£
13,052
172
13,224		 2019
£
-
172
172

10 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 January
2020
£
Renovation of The Paignton Picture
House
5,000
Restoration of the stained-glass
windows
5,000
Architectural Heritage project viability
grant
-
Architectural Heritage project
development grant
-
Architectural Heritage transformational
project grant
-
Historic England repair grant
-
Torbay Economic Development
Company grant
-
10,000		 Movement in funds
Income
Reserves
Expended
£
£
-
(1,467)
-
-
-
(7,500)
-
(11,485)
45,029
-
-
(2,815)
3,814
(3,814)
48,843
(27,081)		 Transfers
Balance at
31 December
2020
£
£
-
3,533
-
5,000
7,500
-
78,745
67,260
-
45,029
2,815
-
-
-
89,060
120,822		 Transfers
Balance at
31 December
2020
£
£
-
3,533
-
5,000
7,500
-
78,745
67,260
-
45,029
2,815
-
-
-
89,060
120,822
120,822

The restricted funds held are:

Prior year adjustment:

The transfers above into the restricted funds represent prior year adjustments to reflect grants awarded, but not drawn down, at 31 December 2019 that had not previously been recognised but have now been included in Debtors as accrued grant income. The comparatives have been restated accordingly.

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

11
Analysis of net assets between funds
Unrestricted
Restricted
2020
2020
£
£
Fund balances at 31
December 2020 are
represented by:
Tangible assets
50,000
-
Current assets/
(liabilities)
1,079
120,822
51,079
120,822		 Total Unrestricted
Restricted
2020
2019
2019
£
£
£
50,000
50,000
-
121,901
(309)
99,060
171,901
49,691
99,060		 Total
2019
£
50,000
98,751
148,751

12 Events after the reporting date

The trustees have been made aware that a grant of £1.285 million will be awarded to the trust by Torbay Council from The Future High Streets Fund as part of the plans for the regeneration of Paignton town centre. However at the date of approval of these financial statements, no formal notification of the award has been received and so this grant has not been included in accrued grant income at 31 December 2020.

13 Related party transactions

There were no disclosable related party transactions during the year (2019 - none).

14
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Movements in working capital:
(Increase) in debtors
Increase/(decrease) in creditors
Cash generated from/(absorbed by) operations		 2020
£
23,150
(1)
(23,229)
13,052
12,972		 2019
£
75,720
(8)
(81,560)
(1,072)
(6,920)

15 Analysis of changes in net funds The trust had no debt during the year.