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2021-03-31-accounts

Charity Number : 1161081 Company Number : 02212900

Companies House

VOLCANO THEATRE COMPANY LIMITED

A Company Limited by Guarantee

REPORT AND UNAUDITED FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

VOLCANO THEATRE COMPANY LIMITED

Contents Pages
Trustees Report 1
Independent Examiner’s Report 9
Statement of Financial Activities 10
Statement of Financial Position 11
Notes to Financial Statements 12

VOLCANO THEATRE COMPANY LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The trustees, who are also the directors of the charitable company for the purposes of the Companies Act 2006, present their annual report together with the audited financial statements of the charitable company the year ended 31 March 2021 which are also prepared to meet the requirement for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Memorandum and Articles of Association, applicable Accounting Standards in the United Kingdom, the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Charities Act 2011 and the Companies Act 2006 .

OUR PURPOSE AND ACTIVITIES

Volcano is a unique investigative arts organisation built on distinctive practice. Whilst the company’s activities are various and far-reaching, everything we do depends on the health and integrity of our core creative process. Theatre-making occupies, for us, the centre of a network of practices and relationships that are rooted in the city of Swansea and reach out through Wales, the UK, Europe, and beyond.

Our work is created from a meanwhile-use building in the High Street, an area of Swansea in need of regeneration. This enables us to encourage the development of Arts & Performance in an area where there previously was none.

Volcano have taken over the entire ground floor of the building which incorporates the Bunker Theatre to the rear. We have created a series of performance/ arts & social spaces within the remainder of the ground floor which will enable increased access and a variety of events.

STRATEGIC PRIORITIES

DELIVER ARTISTIC EXCELLENCE

REACH MORE PEOPLE

WORK IN PARTNERSHIP

BE SUSTAINABLE

PASS IT ON

WORK IN AND FOR SWANSEA

Page 1

VOLCANO THEATRE COMPANY LIMITED

REPRESENT WALES

ACHIEVEMENTS & PERFORMANCE 2020/21 (A year with Covid)

The financial year began with the ‘rug being pulled’ quite literally from beneath Volcano’s scheduled works for 2020/21. Volcano Theatre was suddenly faced with the challenge of finding new ways to reach audiences and new ways to engage and communicate. Volcano responded to this challenge by launching a program of new works for the period of closure geared to the continuity of the creative spirit, to a sense of communality and to the idea that when we do return to the rehearsal room, we will we will do so with a greater understanding of our lives and the places that we live.

PERFORMANCES

DIGITAL VOLCANO – ENCOUNTERS UNKNOWN

NOTES FROM THE INTERIOR .

Volcano enlisted the help of some brilliant actors to keep ideas, improvisation and inspiration pinging around the virtual studio, in a format designed for theatre and drama students (and anyone else who wanted to) to join in and get creating some encounters as yet unknown. Director Paul Davies set a weekly challenge based on a passage of text or other stimulus.

THE EMPTY SPACE

Heartfelt thoughts from our empty theatre by Volcano’s Artistic Director Paul Davies.

LOOKING SIDEWAYS FROM THE FUTURE

A digital performance by Volcano’s Mighty New to give form to the collective feelings of The Mighty New during this strange year. This project was part funded by People’s Postcode Magic Little Grants scheme.

WHICH WAY TO THE WATERFALL

Volcano’s Artistic Director, Paul Davies worked with Brazilian participants of the Reside Festival on a digital residency entitled Which Way to the Waterfall. Funded by the British Council, Paul was due to travel to Recife in the north-eastern state of Pernambuco to lead a residency programme. Due to travel restrictions he instead worked with Portuguese and sign-language translators, utilising a number of online platforms to ensure that the residency continued online.

THE CLOCKWORK CROW

In collaboration with Icelandic Designer Guðný Hrund Sigurðardóttir, Volcano have developed a Christmas family promenade adventure show. Based on the novel by Welsh author Catherine Fisher, this show combines it’s youth company, The Mighty New and professional actors in an adaptation of the novel. Created during look-down as a bubble-based audience experience but cancelled under further Covid restrictions the show has been re-scheduled for December 2021.

CREATIVE/COMMUNITY PROJECTS

VOLCANO YOUTH COMPANY

Volcano Youth Company provides an opportunity for young people aged 15-25 to explore their ideas, inspire one another and discover new skills. The emphasis is on enabling participants to unlock their creativity through experimentation in performance and to build trust and confidence (in themselves and one another) in a supportive, professional environment. We challenge young people with improvisational tasks that require practical, imaginative participation. Volcano aims to equip young performers with the tools and the skills to think and move for themselves with confidence and to embrace risk and vulnerability in a collaborative setting.

POVERTY POWER & RESISTANCE New Collaborations for Cultural Democracy

An R&D collaboration with Glynn Vivian Gallery, Taliesin Arts Centre, Castle Street Arts and Teatro El Extranjero of Buenos Aires, exploring citizens’ relationship with the cultural infrastructure of the city. Funded by ACW.

BURSARIES

An accessibility bursary to enable low income, minority and individuals with protected characteristics to create and display their own works.

Page 2

VOLCANO THEATRE COMPANY LIMITED

IPP2 LEGACY PROJECT: STORYOPOLIS

Storyopolis children’s literacy project providing free workshops for schools and occasional public events. The focus is on deprived communities seeing literacy as a broad church.

During 2020/21, workshops were held in local primary schools as part of the ChangeMakers Festival, works were exhibited at Volcano’s Seaside Gallery and the Elysium Art Gallery during the festival. In addition, a new series of workshops were initiated with artist Nicky Arscott and Birchgrove Comprehensive Year 7 named ‘Your Story: Our Story. A personal and social document of Life and Look-down. A series of videos have been developed to facilitate online workshops with an intention to move on to ‘in-class’ workshops at Birchgrove as a pilot project.

VOLCANO VENUE

Hosting and supporting community events at our High Street Arts Centre has become an established part of Volcano Theatre’s community activity. With regret, for the majority of the year the building was closed to the public. For a brief period of 2020, Volcano were able to open the gallery space when restrictions allowed and look forward with great anticipation to welcoming back a variety of performances, community events, exhibitions, workshops, music, and dance in the near future.

FUTURE PLANS

FUTURE PERFORMANCES

THE CLOCKWORK CROW

Developed in 2021/21 this show is poised to run in December 2021.

V NEW

“Class v class, as bitter as before. The unending violence of US and THEM”. 30 years after Volcano performed Tony Harrison’s state-of-the-nation poem on the Royal Mile, we greet the entrenched enmities and intractable antagonisms of the current age with a brand-new version of our signature cri de coeur. A new generation of performers tackles the show that set the post-punk benchmark for dangerous theatre.

WE ARE KASPAR HAUSER NEW

Volcano Youth Company explores the tyranny of language within the confines of a traditionally constructed Bavarian sitting room. Using words by Peter Handke and inspired by a film by Werner Herzog.

BREAK | REPAIR | REPEAT NEW

A new design-led Volcano Original arising from a collaboration between versatile pseudonymous Swansea-based artist Bourdon Brindille and Volcano’s director Paul Davies. Built in the Bunker Theatre.

FUTURE CREATIVE/COMMUNITY PROJECTS

NATIONAL VOLCANIC ASSOCIATION (NVA) NEW

Volcano is reorganizing its programme of regular youth work to bring the three strands for different age groups under a single member organisation steered by a new youth panel, to amplify the voices of young creatives in the design and content of the programme, foster a greater sense of ownership amongst young people and their friends and families of the company and the venue, and encourage continuity and interaction between the groups. NVA will incorporate Volcano Youth Company for ages 15-25, The Mighty New (9-15), and a new division for 5 to 9-year-olds under the stewardship of VYC alumni and talented graduates of local performing arts colleges.

POVERTY POWER & RESISTANCE

New Collaborations for Cultural Democracy

Continuation of an R&D collaboration with Glynn Vivian Gallery, Taliesin Arts Centre, Castle Street Arts and Teatro El Extranjero of Buenos Aires, exploring citizens’ relationship with the cultural infrastructure of the city.

THE OLYMPIADS NEW

A spin-off performance venture from the Poverty, Power, Resistance project. Pop up squads of sports people, construction teams and suited officials conduct intriguing public activities in preparation for a major international sports tournament in Swansea.

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VOLCANO THEATRE COMPANY LIMITED

CONNEXIONS – PLACES & SPACESNEW

An experimental digital platform connecting a small, diverse, international collective of urban cultural and community practitioners, organised around key cultural institutions or hubs in the three partner countries – Wales, Brazil, and Argentina. The collective will produce a manifesto. Supported by British Council Wales.

HAMLET IN YEMENNEW

Paul Davies works with director Amr Gamal and Khaleej Aden Company to mentor a site-specific Yemeni-dialect adaptation of Hamlet in the Legislative Council Building in the former church of St Maria in Aden. Funded by the British Council.

STORYOPOLIS

A Station to Sea legacy project, in partnership with Cover to Cover independent book shop. City-centre based children’s literacy and story-making project previously funded by Garfield Weston. A pilot scheme for Your Story: Our Story is due to roll out in April. In addition, Volcano will be fundraising for an expansion of this project and a pilot Fake News symposium, as well as for capacity-building for the project with a view to Storyopolis becoming sustainable in the long term.

OUR HERITAGESNEW

Funded by the National Lottery: Awards for All, children of Volcano’s youth company worked together with children from St Joseph’s School of Sanctuary on a joint production exploring the heritages of those children involved, celebrating diversity and culture.

YOU, ME, US & THEM QUEERNESS & CREATIVENEW

A series of workshops designed to bring LGBTQ+ individuals together to bring physical theatre to Trans* and Queer people. Created and run by Volcano Youth alumni Gabe Patterson.

SUSTRANS ACTIVE TRAVEL HUB NEW

Volcano will be partnering with Sustrans to pilot an e-bike scheme using our loading bay area in Orchard Street, in 2022. If successful we hope to be able to continue the scheme at Volcano’s new premises from April 2023.

THE BOOTROOM NEW

Volcano will become an official partner and the city centre drop-off of The Bootroom, a charity set up by a Swansea City fan to provide good quality donated second-hand football boots and nearly new kit for children whose families would otherwise be unable to meet the cost.

VOLCANO VENUE

Lined up for 2021/22;

ALISON LOCHHEAD / ROBIN INCE / LIGHTHOUSE THEATRE / GABRIEL PATERSON / JOHN HARRIS / JOSE CIFUENTES / JULIE ANN SHERIDAN / AXE HEAD TO EVERYTHING /

KLATCH COLLECTIVE / BEING HUMAN FESTIVAL / MARK THOMAS / KAREN ELPHICK / THE LAST FOUNDATION / BOURDON BRINDILLE & CLAIRE MISSELBROOK / GRAHAM PARKER & FRIENDS / DRAMA STUDIO LONDON / YMCA / MIKE LEAHY & JEFF PHILLIPS / PLATFFORM / HUMBERTO GATICA / OPEN UNIVERSITY / THE SILVER FIELD / SEAN CLANCY & ANDY INGAMELLS / SWANSEA UNIVERSITY / DAVID GREENSLADE / POPCYCLE / SWANSEA FRINGE / OLIVER BUNN / CAI BARNARD-DADDS /JENN KIRBY / EMMA COULTHARD / EDDIE LADD / MEMET ALI ALABORA / GOWER COLLEGE IBERIAN & LATIN AMERICAN ASSOCIATION WALES

VOLUNTEERS

Volcano are working with Swansea’s Fusion co-ordinator to establish a Cultural Volunteering Steering Group for the city. Access to these opportunities is also an Equalities Issue of a specifically socio-economic nature. SCVS are assisting us to achieve a volunteer profile that better reflects the population of our home city.

FAIR PAY

March 2021 volcano became an accredited fair wage employer.

Page 4

VOLCANO THEATRE COMPANY LIMITED

FUNDRAISING

We are both funded (see 1) and also raise funds (see 2)

New funding secured in 2020/21

unding secured in 2020/21
ACW: Connect & Flourish £39,005
ACW: Covid 19 Support for Arts £18,045
National Lottery: Awards for All £5,100
British Council: Connexions £19,800
British Council: Hamlet in Yemen £2,750
WCVA: Third Sector Resilience Fund: £9,677
Architectural Heritage Fund: Viability Report £7,500
Wales Co-Operative: Business Plan £3,685

The WCVA grant included funding for the post of trainee fundraiser to assist in improving the sustainability of our community and youth based projects and to help co-ordinate our overall fundraising policy. This included funding for a professional mentor to work alongside the fundraiser in the first year.

VOLCANO: HOME & HUB

Volcano’s current High Street location was due for major redevelopment in 2021/2022, however due to delays in this project Volcano has been able to extend its current lease for a further two years.

Volcano recognise the developing community role that they hold in Swansea’s Castle Ward, an area affected by inequality and disadvantage. An Options Appraisal undertaken by Volcano’s Trustees has helped establish the future property needs of Volcano Theatre as a production company and community hub. Several potential locations have been identified and a Viability Report and Business Plan have been commissioned.

FINANCIAL REVIEW

The charity’s statement of financial activities is shown on page 10 and comprises restricted and unrestricted funds, being those provided to assist in furthering the general objects of the charity.

During the year the charity’s income was £377,745 with expenditure of £287,055 resulting in a surplus for the year before taxation of £90,690.

At the year end the unrestricted funds amounted to £215,117 of which £14,292 were held as fixed assets and investments. Free reserves amount to £78,000 with the remaining £122,825 being designated as follows:

Relocation fund £85,946
Future productions fund £31,879
Youth/community development fund £ 5,000

The restricted funds amounted to £4,986 of which £2,243 are represented by fixed assets.

Investment policy

Under the memorandum and articles of association, the charity has the power to make any investment which the trustees see fit. The charity has a policy of keeping surplus liquid funds in short-term deposits which can be accessed readily.

Reserves policy

Reserves are needed to bridge the gap between expenditure and receiving of resources, to cover unplanned repairs or other expenditure and to bridge the gap caused by any loss of funding. The Trustees consider that the level of reserves should be maintained between four and six months basic overheads, a figure of £52,000 - £78,000.

The current level of free reserves stands at £78,000.

Page 5

VOLCANO THEATRE COMPANY LIMITED

REFERENCE AND ADMINISTRATIVE DETAILS

Charity Name: Volcano Theatre Company Limited (trading as Volcano) Charity registration number: 1161081 Company registration number: 02212900 Registered office: Volcano Theatre, 27-29 High Street, Swansea, SA1 1LG Our advisers Independent Examiner Ian David Bowen. I D Bowen & Co., Chartered Accountants, 19 Alexandra Road, Gorseinon, Swansea, SA4 4NW Bankers National Westminster Bank Plc., Swansea City Centre Branch, 14-16A Oxford Street, Swansea, SA1 3AG

Directors and trustees

The directors of the charitable company (the charity) are its trustees for the purpose of charity law.

The trustees serving during the year and since the year end were as follows:

Key management personnel: Trustees and Directors

Elected trustees: Professor Keith Robert Lloyd Chair Miss Elen Mair Thomas Professor Catrin Elizabeth Webster Mr Gavin David Dudeney Mr Marc Jones Ms Allie Symonds

Key management personnel: Executive team

Artistic Director Paul Davies Executive Producer Claudine Conway Digital Media & Marketing Manager Victoria Boobyer Finance Officer Sarah Dow

Page 6

VOLCANO THEATRE COMPANY LIMITED

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Volcano Theatre Company Limited is a charitable company limited by guarantee. The company was incorporated on 21 January 1988 and converted to charitable status by the adoption of the amended Memorandum and Articles of Association on 24 June 2014. The company was registered as a charity by the Charity Commission on 26 March 2016. In the event of the company being wound up the members are required to contribute an amount not exceeding £1. The maximum number of members permitted by the Articles of Association is 10 but the board of trustees may from time to time register an increase in members.

Appointment of trustees

As set out in the Articles of Association the minimum number of trustees is 3 and until otherwise determined by a General Meeting shall not be more than 7. The board of trustees may appoint any member of the charity as a member of the board of trustees, either to fill a casual vacancy or by way of addition to the board of trustees. Any member so elected holds office until the next Annual General Meeting at which time they will eligible for re-election.

Only member of the company are eligible to hold office as a member of the board of trustees.

The appointment and retiring of trustees, the conduct of business, the proceedings of meetings, the management of risk and the general management of the company all took place during the year in accordance with the provisions of the governing documents.

Trustees induction and training

All new trustees receive an induction pack of information about Volcano and guidance on their responsibilities as charity trustees and company directors. The induction pack provides information on their legal obligations under charity and company law, the Charity Commission guidance on public benefit, and informs them of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and the recent financial performance of the charity.

Organisation

The board of trustees, which can have up to 7 members, administers the charity. The board normally meets each quarter An Executive Team is appointed by the trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Executive Team has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance, employment and artistic performance related activity.

Volcano’s trustees take ultimate legal and financial responsibility for the company while the day-to-day running of the charity is delegated to the Executive Team.

Related parties and co-operation with other organisations

None of our trustees receive remuneration or other benefit from their work with the charity. Any connection between a trustee or senior manager of the charity with a production company, contracted actor, performer or exhibitor must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party. Details of related party transactions in the current year are set out in the notes to the accounts.

Risk management

The trustees have examined the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems are in place to mitigate our exposure to the major risks identified.

SMALL COMPANIES PROVISIONS

This report has been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.

Page 7

VOLCANO THEATRE COMPANY LIMITED

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The Trustees (who are also directors of Volcano Theatre Company Limited for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

By order of the board of trustees

GAVIN DAVID DUDENEY, Trustee on behalf of trustees

10 December 2021

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VOLCANO THEATRE COMPANY LIMITED

INDEPENDENT EXAMINER’S REPORT TO THE CHARITY TRUSTEES OF VOLCANO THEATRE COMPANY LIMITED

I report on the accounts of the company for the year ended 31 March 2021, which are set out on pages 10 to 22.

Respective responsibilities of trustees and examiner

The trustees (who are also directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales.

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 accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the 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 accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

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

Name of independent examiner:

Ian David Bowen

Professional body: Institute of Chartered Accountants in England & Wales

Address: I D Bowen & Co

Chartered Accountants 19 Alexandra Road Gorseinon Swansea SA4 4NW Date: December 2021

Page 9

VOLCANO THEATRE COMPANY LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 MARCH 2021

Note
INCOME
Donations and legacies
Income from charitable activities:
Operation of theatre company
Income from other trading activities:
Commercial trading operations
Investment income
3
4
5
6
TOTAL INCOMING RESOURCES
EXPENDITURE
Expenditure on charitable activities:
Operation of theatre company
7
TOTAL EXPENDITURE
NET EXPENDITURE FOR THE YEAR
BEFORE TAXATION
Taxation
8
9
NET EXPENDITURE AND NET MOVEMENT
IN FOR THE YEAR AFTER TAXATION
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Funds
£
Restricted
Funds
£
Total
Funds
2021
£
Total
Funds
2020
£
323,788
1,602
28,261
645
23,449
-
-
-
347,237
1,602
28,261
645
280,085
25,905
91,658
269
354,296
23,449
377,745
397,917
254,679
32,376
287,055
450,170
254,679
32,376
287,055
450,170
99,617
-
(8,927)
-
90,690
-
(52,253)
-
99,617
115,500
(8,927)
13,913
90,690
129,413
(52,253)
181,666
215,117
4,986
220,103
129,413

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derives from continuing activities.

The notes on pages 12 to 22 form part of these financial statements.

Page 10

VOLCANO THEATRE COMPANY LIMITED

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021

TATEMENT OF FINANCIAL POSITION
S AT 31 MARCH 2021
Note
FIXED ASSETS
Tangible assets
Investments
12
13
CURRENT ASSETS
Stock
Debtors
Cash at bank and hand
14
Creditors: amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
Amounts falling due in more than one year
16
TOTAL NET ASSETS
CHARITY FUNDS
Unrestricted income funds
Restricted income funds
17
TOTAL FUNDS
£
60
5,916
310,067		 Company number: 02212900
2021
£
£
2020
£
16,534
1
17,665
1
16,535
551
9,899
118,737
17,666
129,187
(17,440)
250,315
111,747
266,850
(46,747)
129,413
-
220,103
129,413
215,117
4,986
115,500
13,913
220,103
129,413		 Company number: 02212900
2021
£
£
2020
£
16,534
1
17,665
1
16,535
551
9,899
118,737
17,666
129,187
(17,440)
250,315
111,747
266,850
(46,747)
129,413
-
220,103
129,413
215,117
4,986
115,500
13,913
220,103
129,413		 Company number: 02212900
2021
£
£
2020
£
16,534
1
17,665
1
16,535
551
9,899
118,737
17,666
129,187
(17,440)
250,315
111,747
266,850
(46,747)
129,413
-
220,103
129,413
215,117
4,986
115,500
13,913
220,103
129,413
16,535
250,315		 17,666
111,747
316,043
(65,728)		 129,187
(17,440)
266,850
(46,747)		 129,413
-
220,103 129,413
215,117
4,986		 115,500
13,913
220,103 129,413

The financial statements have been prepared in accordance with the special provisions within Part 15 of the Companies Act 2006 relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to the members of the company.

The trustees are satisfied that the company is entitled to exemption from the requirements to obtain an audit under Section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit in accordance with Section 476 of the Companies Act 2006.

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

Signed:

Name: GAVIN DAVID DUDENEY, Trustee on behalf of trustees

Approved by the trustees on 10 December 2021

The notes on pages 12 to 22 form part of these financial statements.

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VOLCANO THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

The financial statements have been prepared in accordance with the Charities SORP (FRS102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Volcano Theatre Company Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

Consolidation

The charitable company and its subsidiary comprise a small sized group. The charitable company has therefore taken advantage of the exemption provided in section 399 of the Companies Act 2006 not to prepare group financial statements and accordingly these financial statements present information about the charitable company as a single undertaking.

Going concern

The charitable company reported a surplus of £90,690 for the year.

The Trustees and Executive have prepared cash flow forecasts and budgets that support the going concern basis of these financial statements. COVID-19 has had a significant impact on the creative sector resulting in the cancellation of the charity’s production work during the year.

The uncertain economic outlook and willingness of the public to purchase admission and theatre tickets is a significant area of financial uncertainty which the trustees have mitigated by reviewing the artistic programme and taking measures subsequent to the year-end to reduce operating costs.

The Trustees remain in regular contact with Arts Council Wales and have successfully obtained an extension of the current funding cycle for a further year.

The charity has adequate cash reserves which are being actively monitored and managed and the trustees believe that these actions have secured the immediate future of the charitable company for the next 12 to 18 months and that on this basis the charity is a going concern.

Income recognition policies

Items of income are recognised and included in the accounts when all of the following criteria are met:

Income received in advance of theatrical performances or provision of other specified service is deferred until the criteria for income recognition are met.

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VOLCANO THEATRE COMPANY LIMITED

Donated services and facilities

Donated services or facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the item is probable and that economic benefit can be measured reliably. On receipt, donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain the services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Interest receivable

Interest in funds held on deposit is included when receivable and the amount can be measured reliably by the charity, this is normally upon notification of the interest paid or payable by the bank.

Fund accounting

Funds held by the charity are either:

Unrestricted general funds: these are funds which are available to spend on activities that further any of the purposes of the charity. Designated funds: these are unrestricted funds which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds: these are funds which the donor has specified are to be solely used for particular areas of the charity's work or for specific artistic projects being undertaken by the charity.

Expenditure and irrecoverable VAT

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

Expenditure on charitable activities includes the costs of performances, workshops and other educational activities undertaken to further the purposes of the charity and their associated support costs.

Other expenditure represents those items not falling into any other heading.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Allocation of support costs

Support costs are those functions which assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance personnel, payroll and governance costs which support the charity's artistic programmes and activities. These costs have been allocated to expenditure on charitable activities. The bases on which support costs have been allocated are set out on note 7.

Operating leases

The charity classifies the lease of printing, specialist lighting and audio equipment as operating leases: the title to the equipment remains with the lessor. Rental charges are charged on a straight line basis over the term of the lease.

Tangible fixed assets and depreciation

Depreciation is provided on all tangible fixed assets so as to write off their full cost or valuation less estimated residual value over their expected useful lives at the following rates:

Plant and machinery 20% - 33.3% on cost Motor vehicles 25% on the reducing balance

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2 LEGAL STATUS OF THE CHARITY

VOLCANO THEATRE COMPANY LIMITED

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Debtors are usually measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts.

Prepayments are valued at the amount prepaid after taking account of any trade discounts due.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

The charity is a company limited by guarantee and has no share capital. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

Unrestricted income
Arts Council of Wales - Revenue grant
In kind support - donated services and facilities
Covid business support grants
Corona Virus Job Retention Scheme grants
Bounce back loan interest and similar charges subsidy
Gifts and donations
Total unrestricted income from donations and legacies
Restricted income
Arts Council of Wales - Covid Support for Arts - Revenue
Arts Council of Wales - Covid Support for Arts - Capital
Local Giving - Magical Little grants
WCVA - Third Sector Resilience Fund
des Organismes vivants
Total restricted income from donations and legacies
Total income from donations and legacies		 2021
£
2020
£
211,505
64,427
45,000
2,047
699
110
209,204
61,229
-
-
-
9,652
323,788
280,085
14,660
3,379
500
334
4,576
-
-
-
-
-
23,449
-
347,237
280,085

The charity is grateful to all donors of in kind support including the City & County of Swansea for providing Non-domestic Business Rate relief to the charity in respect of its premises and to Coastal Housing Group Limited for providing a lease on its premises at below market rental.

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VOLCANO THEATRE COMPANY LIMITED

The value of the rate relief is £13,234 (2020 - £13,016) and the reduced rent £42,320 (2020 - £42,319). The estimated value of these services is recognised within incoming resources as a donation, and an equivalent charge included within premises costs.

Unrestricted income
Performance fees
Workshops
Total unrestricted income from charitable activities
Restricted income
Arts Council of Wales - Touring grant
City & County of Swansea - Workshop grants
Total restricted income from charitable activities
Total income from charitable activities
5
INCOME FROM TRADING ACTIVITIES
Unrestricted income
Vehicle hire
Premises hire
Bar sales
Other income
Management charges
Total income from trading activities		 2021
£
2020
£
69
1,533
8,259
2,793
1,602
11,052
-
-
12,703
2,150
-
14,853
1,602
25,905
2021
£
2020
£
-
3,429
33
4,369
20,430
7,832
12,883
7,152
2,543
61,248
28,261
91,658

6 INVESTMENT INCOME

All of the charity’s investment income arises from money held in interest bearing deposit accounts.

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VOLCANO THEATRE COMPANY LIMITED

7 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Basis of
Allocation
Costs directly allocated to activities
New show development
Production cost
Salaries and fees for workshop leaders, consultants and performers
Motor, travelling and accommodation
Publicity expenses
Property and costume costs
Royalties
Depreciation
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Total costs directly allocated to activities
Support costs allocated to activities
Premises costs
Repairs and refurbishment
Salaries and statutory contributions
Pension contributions
Telephone
Insurances
Printing, postage, stationery and advertising
Bank charges and similar costs
Sundry expenses
Training
Depreciation
Bad debts
Return of unneeded advance
Interest and similar charges
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Total support costs allocated to activities
Governance costs
Book keeping
Independent examiner’s fee
Other legal & professional fees
Direct
Direct
Direct
Total governance costs
Total expenditure		 Total
2021
£
Total
2020
£
792
65,106
49,384
3,189
3,046
632
268
7,454
2,677
192,932
58,923
11,284
4,587
5,064
267
6,911
129,871
282,645
67,068
3,209
53,907
1,090
730
2,805
343
304
10,851
258
100
-
-
699
70,530
4,255
62,067
971
825
1,445
545
736
10,852
429
101
81
2,517
-
141,364
155,354
10,374
1,750
3,696
10,416
1,750
5
15,820
12,171
287,055
450,170

Of the £287,055 expenditure in 2021 (2020 - £450,170) £254,679 was charged to unrestricted funds (2020 - £397,300) and £32,376 to restricted funds (2020 - £52,870).

8 NET INCOME FOR THE YEAR

ET INCOME FOR THE YEAR
2021 2020
£ £
This is stated after charging:-
Operating leases - land and buildings 6,000 6,000
Independent examiner’s fee 1,750 1,750
Depreciation of tangible fixed assets 7,554 7,012

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VOLCANO THEATRE COMPANY LIMITED

9 TAXATION

AXATION
United Kingdom corporation tax refund 2021
£
2020
£
-
-
-
-

The charitable company’s activities are potentially exempt from taxation under Part 11 of the Corporation Tax Act 2010. No tax charge has arisen in the year.

10 ANALYSIS OF STAFF COSTS AND TRUSTEE REMUNERATION AND EXPENSES

Total wage costs
Wages and salaries
Social security costs
Pension costs		 2021
£
2020
£
88,354
4,256
2,005
99,207
5,928
1,991
94,615
107,126

No employees had emoluments in excess of £60,000 (2020 - £ Nil) Pension costs are allocated to activities in proportion to the related staffing costs incurred and are wholly charged to unrestricted funds.

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2020 - £Nil) neither were they reimbursed expenses during the year (2020 - £Nil). No trustee received payment for professional or other services supplied to the charity.

The key management personnel of the charity comprise the trustees, Artistic Director, Executive Producer, Digital Media & Marketing Manager and Finance Officer. The total employee benefits of the key management personnel of the charity were £95,722 (2020 - £92,450).

11 STAFF NUMBERS

The average number of employees (including casual and part time staff) during the year was:-

Administration staff
Charitable activities		 2021
2020
3
1
3
1
4
4

There were no employees remunerated at a rate exceeding £60,000 per annum and there were no employees accruing benefits under money purchase or defined benefit pension schemes.

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VOLCANO THEATRE COMPANY LIMITED

12 TANGIBLE FIXED ASSETS

12
TANGIBLE FIXED ASSETS
Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for year
On disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
13
INVESTMENTS		 Plant and
machinery
£
Motor
vehicles
£
Total
£
111,524
6,506
(583)
64,610
-
(21,713)
176,134
6,506
(22,296)
117,447
42,897
160,344
109,428
3,682
(583)
49,041
3,872
(21,630)
158,469
7,554
(22,213)
112,527
31,283
143,810
4,920
11,614
16,534
2,096
15,569
17,665

The charity holds the entire share capital of Volcano Trading Company Limited which is incorporated in the United Kingdom (company number 09527257).

Cost
At 1 April 2020
Purchased in the year
At 31 March 2021		 Investment
in subsidiary
undertakings
£
1
-
1

The holding is 1 share of £1 which is the only share allotted, called up and fully paid.

The company will pay all of its profits to the charity under the gift aid scheme.

Volcano Trading Company Limited provides theatrical production services to the charity. All commercial trading operations are carried out from the charity’s premises.

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VOLCANO THEATRE COMPANY LIMITED

The summary financial performance of the subsidiary is:

Turnover
Cost of sales and administrative costs
Interest receivable
Net loss
Taxation
Profit after tax
Amount gift aided to the charity
Retained in subsidiary
The assets and liabilities of the subsidiary were:
Current assets
Current liabilities
Total net assets
Aggregate share capital and reserves
14
DEBTORS
Trade debtors
Other debtors
Prepayments and accrued income
Grants receivable
15
CREDITORS:AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans
Trade creditors
Other taxes and social security costs
deferred income
Other creditors and accruals
16
CREDITORS:AMOUNTS FALLING DUE IN MORE THAN ONE YEAR
Bank loans
Other loans		 2021
£
2020
£
38,454
(39,725)
4
141,856
(143,451)
-
(1,267)
6,151
(1,595)
15,378
4,884
-
13,783
(9,400)
4,884
4,383
34,835
(2,470)
29,021
(1,540)
32,365
27,481
32,365
27,481
2021
£
2020
£
-
121
4,329
1,466
4,504
-
5,395
-
5,916
9,899
2021
£
2020
£
5,833
1,095
425
47,613
10,762
-
3,597
923
-
12,920
65,728
17,440
2021
£
2020
£
44,166
2,581
-
-
46,747
-

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VOLCANO THEATRE COMPANY LIMITED

17 ANALYSIS OF MOVEMENT IN UNRESTRICTED FUNDS

Brought Income Expenditure Transfers Carried
Forward Forward
£ £ £ £ £
Unrestricted funds
Designated funds
Relocation fund 26,188 - - 59,758 85,946
Future production fund 5,000 - - 26,879 31,879
Youth/community development fund - - - 5,000 5,000
Total designated funds 31,188 - - 91,637 122,825
General fund 84,312 354,296 (254,679) (91,637) 92,292
Total unrestricted funds 115,500 354,296 (254,679) - 215,117
Analysis of movement in unrestricted funds - prior year
Brought Income Expenditure Transfers Carried
Forward Forward
£ £ £ £ £
Unrestricted funds
Designated funds
Relocation fund 26,188 - - - 26,188
Future production fund 27,524 - - (22,524) 5,000
Total designated funds 53,712 - - (22,524) 31,188
General funds 76,024 383,064 (397,300) 22,524 84,312
Total unrestricted funds 129,736 383,064 (397,300) - 115,500

Name of unrestricted fund Description, nature and purposes of the fund

General fund Designated funds

The ‘free reserves’ after allowing for all designated funds. Designated relocation fund to provide against costs of relocating to new premises. Designated future productions for the creation of future productions. Designated youth/community development fund for the development of educational and community partnerships - National Volcanic Association.

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VOLCANO THEATRE COMPANY LIMITED

Analysis of movement in restricted funds

Analysis of movement in restricted funds
Restricted funds
Fixed assets
Storyopolis
Wales EU fund
Arts Council of Wales - Covid Support for
Arts - Revenue
Arts Council of Wales - Covid Support for
Arts - Capital
Local Giving - Magical Little grants
WCVA - Third Sector Resilience Fund
des Organismes vivants
Total restricted funds		 Brought
Forward
£
Income
£
Expenditure
£
Transfers
£
Carried
Forward
£
2,991
9,279
1,643
-
-
-
-
-
-
-
-
14,660
3,379
500
334
4,576
(748)
(6,536)
(1,643)
(14,660)
(3,379)
(500)
(334)
(4,576)
-
-
-
-
-
-
-
-
2,243
2,743
-
-
-
-
-
-
13,913
23,449
(32,376)
-
4,986

Analysis of movement in restricted funds - prior year

Restricted funds
Fixed assets
Storyopolis
Paul Hamlyn A & P Fund
PolArt EU
Wales EU fund
Touring grant
Workshop grants
Total restricted funds		 Brought
Forward
£
Income
£
Expenditure
£
Transfers
£
Carried
Forward
£
3,989
19,805
17,609
6,527
4,000
-
-
-
-
-
-
-
12,703
2,150
(998)
(10,526)
(17,609)
(6,527)
(2,357)
(12,703)
(2,150)
-
-
-
-
-
-
-
2,991
9,279
-
-
1,643
-
-
51,930
14,853
(52,870)
-
13,913

Name of unrestricted fund Description, nature and purposes of the fund

Storyopolis Storyopolis fund providing free workshops for schools, and occasional public events for the children’s literacy project. Wales EU fund

Wales EU fund to cover travel for a research & development period of Wales/Spanish/Greek arts group.

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VOLCANO THEATRE COMPANY LIMITED

18 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Investments
Net current assets
Total
Analysis of net assets between funds - prior year
Tangible fixed assets
Investments
Net current assets
Total		 Unrestricted
Funds
£
Restricted
Funds
£
Total
£
14,291
1
200,825
2,243
-
2,743
16,534
1
203,568
215,117
4,986
220,103
Unrestricted
Funds
£
Restricted
Funds
£
Total
£
14,674
1
100,825
2,991
-
10,922
17,665
1
111,747
115,500
13,913
129,413

19 RELATED PARTY TRANSACTIONS

During the year the trustees made aggregate in kind donations £250 (2020 - £Nil) in respect of IT services provided free of charge to the charity.

The charity charged Volcano Trading Company Limited , wholly owned subsidiary, £20,430 (2020 - £61,235) in respect of management and other services provided during the year.

The charity paid Volcano Trading Company Limited £38,454 (2020 - £141,856) in respect of theatrical production services received during the year.

20 OPERATING LEASE COMMITMENTS

The total minimum future lease commitments under non cancellable leases are as follows:

Falling due:
within one year
within two to five years		 2021
£
2020
£
6,000
6,000
6,000
-
12,000
6,000

21 CONTROL OF THE CHARITABLE COMPANY

The charitable company is under the control of the board of trustees and no individual is a person of significant control.

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