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← The Paignton Picture House Trust

2024-12-31-accounts

Charity registration number 01157934

Company registration number 08725788 (England and Wales)

THE PAIGNTON PICTURE HOUSE TRUST (A COMPANY LIMITED BY GUARANTEE)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

THE PAIGNTON PICTURE HOUSE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Ms I Butler Ms J Langraf Ms C V Horrocks (Appointed 15 July 2024) Mr J M Carnell (Appointed 7 January 2025) 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 Auditor Darnells Audit Limited Quay House Quay Road Newton Abbot Devon TQ12 2BU Solicitors Scott Richards Newfoundland House 4 Regent Street Teignmouth TQ14 8SL

THE PAIGNTON PICTURE HOUSE TRUST

CONTENTS

Page
Trustees' report 1 - 5
Independent auditor's report 6 - 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12 - 22

THE PAIGNTON PICTURE HOUSE TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

The trustees present their report and financial statements for the year ended 31 December 2024.

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 Memorandum and Articles of Association, 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)" (published in October 2019).

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 Paignton Picture House to preserve this heritage asset for future generations and to benefit the local community by reopening as a cinema and community arts centre. Paignton Picture House is a Grade II* listed building dating back to 1914. It is of great historical importance, being one of the most complete surviving examples of early cinema. It also has strong distinctive cultural links with the writer Agatha Christie, who visited regularly whilst she stayed at nearby Greenway House.

Prior to being acquired by the trust, the cinema had been and boarded up since it closed in 1999. It was physically deteriorating and at risk of complete loss; such was its vulnerability that it had been placed on Historic England's Heritage at Risk Register long before the trust purchased the building.

The trust relies on grants, donations and income from private tours to cover its operating costs, and to fund the restoration and redevelopment of the Paignton Picture House. Currently the cinema is closed to the general public. The trustees are working with the architects and consultants to develop a robust plan to restore and redevelop this historic building into a functioning cinema and community arts venue.

Achievements and performance

Significant activities and achievements against objectives

Work on Phase I of the project (funded by the Future High Street Fund grant from Torbay Council) has been largely completed in 2024. Concrete repairs have been carried out to load-bearing beams all over the building, but particularly in the basement and the main front of the building. Dry rot treatment has also been carried out in the main auditorium, due to damp getting in from under the floor.

The additional funding obtained from Torbay Council, along with their commitment to underwrite the predicted overall project shortfall up to £1.6 million enabled work to start on Phase II of the project in early January 2025.

How the activities of the trust deliver public benefit:

The trustees confirm that they have paid due regard to the Charity Commission's general guidance on public benefit under the Charities Act 2011. In particular, they consider how planned activities will contribute to the aims and objectives of the trust and are satisfied that all activities continue to be related to its purpose as set out in the governing document.

The trust exists to restore and preserve the important and unique heritage within the Paignton Picture House and to deliver benefit to the local community through film, arts and cultural activities as well as wider activities such as volunteering, education and training opportunities and provision of community spaces.

Paignton is in the top 10% of deprived areas in the UK’s Index of Multiple Deprivation and Torbay is the most deprived upper-tier Southwest local authority. It is a “Priority Place” in the Government’s Levelling Up programme. This project is a pivotal element in the local strategic plan to revive and regenerate the area. The trustees fully appreciate the key role that the Paignton Picture House can play in delivering wide ranging public benefit and this is central in the trust’s capital, operational and artist strategic planning. The trust aims to celebrate the building’s rich heritage, reimagining it not just as a cinema but as a cultural hub that contributes to positive social change.

THE PAIGNTON PICTURE HOUSE TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Financial review

During the year Torbay Council agreed to additional funding for the project totalling £1.5 million from the Future High Streets fund. They also agreed to underwrite the overall project shortfall up to £1.6 million. Other grants awarded in the year totalled £441,007 (2023: £Nil).

Included in expenditure on raising funds of £70,151 (2023: £37,348) is £40,618 (2023: £30,898) paid to fundraising consultants.

The trust's expenditure included building and restoration/conservation costs, professional and consultancy fees and other costs totalling £898,558 (2023: £445,612) which have been capitalised as additions to freehold property (see note 9 to the financial statements).

Expenditure on charitable activities amounted to £47,863, compared with net income from charitable activities of £47,802 for 2023 (arising from late VAT claims which were credited to expenses in 2023). In 2024 the trust leased a ground floor office opposite the cinema to provide office space and a meeting place to showcase the work done so far as well as the plans for the finished project.

Going concern

The trust's net income for the year amounted to £1,845,711 (2023: £14,419). The total funds available at 31 December 2024 are £5,786,148 (2023: £3,940,437), compromising Unrestricted funds of £505,149 (2023: £127,157) and Restricted funds of £5,280,999 (2023: £3,813,280) representing the unspent balances of grants awarded.

Cash at bank and in hand at 31 December was £263,210 (2023: £389,174).

The trustees regard the financial position of the charity as satisfactory.

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 at least six months’ unrestricted expenditure (currently in the region of £18,000). 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 2024 the trust had a surplus on free reserves of £3,984,932 (2023: £3,037,779) of which £3,593,881 (2023: £3,024,720) are restricted funds. This represents the accumulation of funds to cover planned expenditure on the restoration project and a small proportion for the early cultural programme.

The remaining £391,051 (2023: £13,059) balance of unrestricted funds is above the level of the free reserves policy, however the trustees intend to use £250,000 of this to support the capital project.

Principal funding sources

The principal sources of funding are government grants administered by Torbay Council.

THE PAIGNTON PICTURE HOUSE TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Principal risks and uncertainties

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. The building has been subjected to years of dilapidation and was in a very poor condition. The principal risk is that unforeseen problems and rising costs mean that the final cost of works exceed the quotes and the contingency reserves. The trustees are managing these risks by employing specialist consultants to manage the project and carry out surveys to identify any issues in advance of the work being carried out, and hire contractors with experience of restoring listed, heritage property.

The trust's main operational risk concerns obtaining sufficient funding to meet the forecast shortfall for the full capital project, within the timescales required by the spend deadlines for the Government grants secured. The trustees secured additional funding of £1.5 million to cover increased costs arising from increases in tenders from contractors since the original grant bids were submitted, along with a commitment from Torbay Council to underwrite the project shortfall up to £1.6 million. They have also engaged a specialist consultant to develop a diverse fundraising plan to reduce the forecast shortfall, currently estimated to be in the region of £1.3 million, mainly from grants from trusts/foundations alongside public fundraising.

Plans for future periods

Phase II of the work (funded by the Arts Council in partnership with Torbay Council) will involve:

The projection room will be retained, but the cinema will use a digital projector on the back wall of the cinema. A 1950’s projector will be put in the projection room, but will not be functional as the quality of original 35mm film is not good enough for the films to be shown to the public.

Work started on Phase II in January 2025, with the cinema & community café/hub scheduled to open in 2026.

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 (Resigned 26 February 2025) Ms I Butler Mr J S Brandon (Resigned 30 January 2025) Ms J Langraf Mr S P Caunter (Resigned 5 January 2024) Ms C V Horrocks (Appointed 15 July 2024) Mr C I Wills (Deceased 2 May 2024) Mr J M Carnell (Appointed 7 January 2025)

THE PAIGNTON PICTURE HOUSE TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Recruitment and appointment of trustees

The Board of Trustees currently has four members. 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.

Related parties

All trustees give their time voluntarily and receive no benefits from the trust (except as disclosed in note 17 to the financial statements). 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 trust. One of the trustees is a member of the trust (which is incorporated as a charitable company) and guarantees to contribute £10 in the event of a winding up.

During the year the trust employed the spouse of one of the trustees as a project manager to oversee the renovation work. The spouse is a qualified professional, and the fees charged are at a market rate. The trustees manage this process as part of their Conflicts of Interest records and policy.

Statement of trustees' responsibilities

The trustees, who are also the directors of The Paignton Picture House Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the trust and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the trust and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the company's articles, a resolution proposing that Darnells Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

THE PAIGNTON PICTURE HOUSE TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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

Ms I Butler Trustee

10 July 2025

THE PAIGNTON PICTURE HOUSE TRUST

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE PAIGNTON PICTURE HOUSE TRUST

Opinion

We have audited the financial statements of The Paignton Picture House Trust (the ‘trust’) for the year ended 31 December 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

THE PAIGNTON PICTURE HOUSE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE PAIGNTON PICTURE HOUSE TRUST

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the trust and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the trust for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentation or through collusion.

However, the primary responsibility for the prevention and detection of fraud rests with those charged with governance of the charitable company and management.

The laws and regulations identified as being of significance in the context of the charitable company are:

THE PAIGNTON PICTURE HOUSE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE PAIGNTON PICTURE HOUSE TRUST

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Sean Murphy BA FCA (Senior Statutory Auditor) for and on behalf of Darnells Audit Limited 17 July 2025 Statutory Auditor

Quay House Newton Abbot Devon TQ12 2BU

THE PAIGNTON PICTURE HOUSE TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2024

Unrestricted
Restricted
funds
funds
2024
2024
Notes
£
£
Income from:
Donations and legacies
2
283,199
1,666,007
Investments
14,519
-
Total income
297,718
1,666,007
Expenditure on:
Raising funds
3
9,442
60,709
Charitable activities
4
27,763
20,100
Total expenditure
37,205
80,809
Net income
260,513
1,585,198
Transfers between
funds
117,479
(117,479)
Net movement in
funds
377,992
1,467,719
Reconciliation of funds:
Fund balances at 1 January
2024
127,157
3,813,280
Fund balances at 31
December 2024
505,149
5,280,999		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
1,949,206
321
-
14,519
3,644
-
1,963,725
3,965
-
70,151
6,450
30,898
47,863
14,626
(62,428)
118,014
21,076
(31,530)
1,845,711
(17,111)
31,530
-
-
-
1,845,711
(17,111)
31,530
3,940,437
144,268
3,781,750
5,786,148
127,157
3,813,280		 Total
2023
£
321
3,644
3,965
37,348
(47,802)
(10,454)
14,419
-
14,419
3,926,018
3,940,437

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 2024

Notes
Fixed assets
Tangible assets
9
Current assets
Debtors falling due after one year
11
Debtors falling due within one year
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Net assets
Income funds
Restricted funds
13
Unrestricted funds		 2024
£
£
1,801,216
1,276,585
2,534,219
263,210
4,074,014
(89,082)
3,984,932
5,786,148
5,280,999
505,149
5,786,148		 2023
£
£
902,658
1,211,335
1,666,678
389,174
3,267,187
(229,408)
3,037,779
3,940,437
3,813,280
127,157
3,940,437		 2023
£
£
902,658
1,211,335
1,666,678
389,174
3,267,187
(229,408)
3,037,779
3,940,437
3,813,280
127,157
3,940,437
3,940,437
3,813,280
127,157
3,940,437

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 10 July 2025

Ms I Butler Ms J Langraf Trustee Trustee

Company registration number 08725788

THE PAIGNTON PICTURE HOUSE TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 19 758,075 276,066
Investing activities
Purchase of tangible fixed assets (898,558) (445,612)
Interest received 14,519 3,644
Net cash used in investing activities (884,039) (441,968)
Net decrease in cash and cash equivalents (125,964) (165,902)
Cash and cash equivalents at beginning of year 389,174 555,076
Cash and cash equivalents at end of year 263,210 389,174

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

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 Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (published in October 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 or grantors 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.

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 2024

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 the statement of financial activities.

No depreciation is provided in respect of freehold buildings because the restoration of the Paignton Picture House is still ongoing, and it has not yet been developed into a functioning cinema.

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.

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.

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

(Continued)

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.

2 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Donations and gifts
8,199
-
Grants
275,000
1,666,007
283,199
1,666,007
Grants
DLUHC Future High
Street Fund
-
1,500,000
Garfield Weston
Foundation
250,000
-
Colwinston Charitable
Trust
-
150,000
The Pilgrim Trust
-
30,000
The Swire Charitable
Trust
25,000
-
National Lottery -
Reaching Communities
Fund
-
19,992
The Sylvia Waddilove
Foundation
-
3,000
Other
-
(36,985)
275,000
1,666,007		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
8,199
321
-
1,941,007
-
-
1,949,206
321
-
1,500,000
-
-
250,000
-
-
150,000
-
-
30,000
-
-
25,000
-
-
19,992
-
-
3,000
-
-
(36,985)
-
-
1,941,007
-
-		 Total
2023
£
321
-
321
-
-
-
-
-
-
-
-
-

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

2 Income from donations and legacies

(Continued)

The movement in Other grants of £36,985 above represents funding withdrawn by grant providers, previously recognised as income, as a result of delays in completing work on the project causing deadlines for drawing down the grants to be missed.

3 Raising funds

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Fundraising and publicity
Fundraising agents
-
40,618
Advertising
9,442
20,091
Fundraising and publicity
9,442
60,709
9,442
60,709
For the year ended 31 December 2023
Fundraising and publicity
6,450
30,898		 Total
2024
£
40,618
29,533
70,151
70,151		 Total
2023
£
30,898
6,450
37,348
37,348
37,348

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

4 Expenditure on charitable activities

Preservation Preservation
of Paignton of Paignton
Picture Picture
House House
2024 2023
£ £
Direct costs
Repairs and renovation costs 4,959 (62,440)
Insurance 12,202 8,044
Light and heat 4,395 220
Rates 1,557 1,256
Computer costs 301 782
Telephone and internet 119 -
Rent 5,888 -
Legal and professional fees 35 846
Sundry expenses 66 392
29,522 (50,900)
Share of support and governance costs (see note 5)
Support 740 208
Governance 17,601 2,890
47,863 (47,802)
Analysis by fund
Unrestricted funds 27,763 14,626
Restricted funds 20,100 (62,428)
47,863 (47,802)

Repairs and renovation costs for 2023 above are stated after deducting retrospective input VAT reclaimed for earlier periods - see note 13 to the financial statements.

Governance costs represent audit and accountancy fees - see note 5 to the financial statements.

5 Support costs allocated to activities

Bank charges
Governance costs
Analysed between:
Preservation of Paignton Picture House		 2024
£
740
17,601
18,341
18,341		 2023
£
208
2,890
3,098
3,098

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

5
Support costs allocated to activities
Governance costs comprise:
Audit fees
Accountancy		 (Continued)
2024
2023
£
£
6,975
2,890
10,626
-
17,601
2,890		 (Continued)
2024
2023
£
£
6,975
2,890
10,626
-
17,601
2,890
2,890

6 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year except as disclosed under Related party transactions - see note 17 to the financial statements.

During the year trustees' expenses of £904 (2023: £nil) were reimbursed to a spouse of one of the trustees.

7 Employees

The average monthly number of employees during the year was:

2024 2023
Number Number
Total - -

There were no employees whose annual remuneration was more than £60,000.

8 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

9 Tangible fixed assets

Tangible fixed assets
Land and buildings
£
Cost
At 1 January 2024 and 31 December 2024 902,658
Additions 898,558
Carrying amount
At 31 December 2023 and 31 December 2024 1,801,216

Freehold land and buildings with a carrying amount of £1,801,216 (2023: £902,658) have been pledged to secure a guarantee given by Torbay Council to underwrite the restoration project shortfall up to a maximum of £1.6 million. The trust is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

9 Tangible fixed assets (Continued)

The carrying value of the land and buildings above represents the acquisition cost of the property, and the costs of the ongoing refurbishment and restoration work.

In the opinion of the trustees, the fair value of the land and buildings is at least equal to their carrying value
above.
10
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Measured at undiscounted amount receivable:
Accrued grant income
3,776,836
2,677,178
Carrying amount of financial liabilities
Measured at undiscounted amount payable:
Trade and other creditors
(83,332)
(224,908)
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
34,634
200,835
Prepayments and accrued income
2,499,585
1,465,843
2,534,219
1,666,678
2024
2023
Amounts falling due after more than one year:
£
£
Prepayments and accrued income
1,276,585
1,211,335
Total debtors
3,810,804
2,878,013		 In the opinion of the trustees, the fair value of the land and buildings is at least equal to their carrying value
above.
10
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Measured at undiscounted amount receivable:
Accrued grant income
3,776,836
2,677,178
Carrying amount of financial liabilities
Measured at undiscounted amount payable:
Trade and other creditors
(83,332)
(224,908)
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
34,634
200,835
Prepayments and accrued income
2,499,585
1,465,843
2,534,219
1,666,678
2024
2023
Amounts falling due after more than one year:
£
£
Prepayments and accrued income
1,276,585
1,211,335
Total debtors
3,810,804
2,878,013		 In the opinion of the trustees, the fair value of the land and buildings is at least equal to their carrying value
above.
10
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Measured at undiscounted amount receivable:
Accrued grant income
3,776,836
2,677,178
Carrying amount of financial liabilities
Measured at undiscounted amount payable:
Trade and other creditors
(83,332)
(224,908)
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
34,634
200,835
Prepayments and accrued income
2,499,585
1,465,843
2,534,219
1,666,678
2024
2023
Amounts falling due after more than one year:
£
£
Prepayments and accrued income
1,276,585
1,211,335
Total debtors
3,810,804
2,878,013
2024
£
3,776,836
(83,332)
2024
£
34,634
2,499,585
2,534,219
2024
£
1,276,585
3,810,804		 2023
£
2,677,178
(224,908)
2023
£
200,835
1,465,843
1,666,678
2023
£
1,211,335
2,878,013

Prepayments and accrued income above represent accrued grant income awarded but not yet drawn down.

12 Creditors: amounts falling due within one year

Trade creditors
Accruals and deferred income		 2024
£
83,332
5,750
89,082		 2023
£
224,908
4,500
229,408

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

13 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At
Architectural Heritage project
development grants
Architectural Heritage
transformational project grant
grants
Historic England repair grant
Torbay Council - Future High
Street grant
School for Social Entrepreneurs
Arts Council England - Cultural
Development Fund grant
The Colwinston Charitable
Trust
Reaching Communities -
National Lottery
The Pilgrim Trust
The Sylvia Waddilove
Foundation
Previous year:
At
Architectural Heritage project
development grants
Architectural Heritage
transformational project grant
grants
Historic England repair grant
Torbay Council - Future High
Street grant
School for Social Entrepreneurs
Arts Council England - Cultural
Development Fund grant		 1 January
2024
Incoming
resources
Resources
expended
(see note
below)
£
£
£
62,174
(11,485)
-
22,489
-
-
40,301
-
-
1,255,646
1,500,000
(67,910)
10,000
(6,000)
-
2,422,670
(19,500)
-
-
150,000
-
-
19,992
(12,899)
-
30,000
-
-
3,000
-
3,813,280
1,666,007
(80,809)
1 January
2023
Incoming
resources
Resources
expended
£
£
£
55,766
-
6,408
-
-
22,489
10,705
-
29,596
1,282,609
-
(26,963)
10,000
-
-
2,422,670
-
-
3,781,750
-
(31,530)		 Transfers
At 31
December
2024
£
£
(50,689)
-
(22,489)
-
(40,301)
-
-
2,687,736
(4,000)
-
-
2,403,170
-
150,000
-
7,093
-
30,000
-
3,000
(117,479)
5,280,999
Transfers
At 31
December
2023
£
£
-
62,174
-
22,489
-
40,301
-
1,255,646
-
10,000
-
2,422,670
-
3,813,280

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

13 Restricted funds

(Continued)

The restricted funds held are:

The undrawn balances on restricted funds have been reduced as follows:

The fund transfers totalling £117,479 in 2024 represent expenditure wrongly allocated to Unrestricted funds in previous years, which should correctly have been allocated to Restricted funds - see note 14 to the financial statements. The trustees have confirmed with the grant providers involved that the grants have in fact been fully spent.

14 Unrestricted funds

The unrestricted funds of the trust comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1
General funds
Previous year:
At 1
General funds		 January
2024
Incoming
resources
Resources
expended
Transfers
At 31
December
2024
£
£
£
£
£
127,157
297,718
(37,205)
117,479
505,149
January
2023
Incoming
resources
Resources
expended
Transfers
At 31
December
2023
£
£
£
£
£
144,268
3,965
(21,076)
-
127,157

The fund transfers totalling £117,479 in 2024 represent expenditure wrongly allocated to Unrestricted funds in previous years, which should correctly have been allocated to Restricted funds - see note 13 to the financial statements.

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

15 Analysis of net assets between funds

Unrestricted
Restricted
funds
funds
2024
2024
£
£
At 31 December 2024:
Tangible assets
114,098
1,687,118
Current assets/(liabilities)
391,051
3,593,881
505,149
5,280,999
Unrestricted
Restricted
funds
funds
2023
2023
£
£
At 31 December 2023:
Tangible assets
114,098
788,560
Current assets/(liabilities)
13,059
3,024,720
127,157
3,813,280		 Total
2024
£
1,801,216
3,984,932
5,786,148
Total
2023
£
902,658
3,037,779
3,940,437

16 Operating lease commitments

Lessee

At the reporting end date the trust had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2024
£
12,000
18,000
30,000		 2023
£
-
-
-

THE PAIGNTON PICTURE HOUSE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

17 Related party transactions

Transactions with related parties

During the year the trust entered into the following transactions with related parties:

Purchase of services
2024 2023
£ £
Trustees & close family 45,195 41,475
45,195 41,475

The related party transactions above represent payments to the spouse of a trustee, who was engaged as the project coordinator on normal commercial terms.

The following amounts were outstanding at the reporting end date:

Amounts owed by related Amounts owed by related
parties parties
2024 2023
Balance Net Balance Net
£ £ £ £
Trustees & close family 666 666 - -
666 666 - -

The above represents an invoice for a personal expense of a trustee inadvertently paid by the trust. The trustee repaid the balance immediately following the discovery of the error.

18 Analysis of changes in net funds

The trust had no material debt during the year.

19
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Movements in working capital:
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Cash generated from operations		 2024
£
1,845,711
(14,519)
(932,791)
(140,326)
758,075		 2023
£
14,419
(3,644
82,095
183,196
276,066