REGISTERED COMPANY NUMBER: 09187162 IEn8land and Wales) REGISTERED CHARITY NUMBER: 1161483 Report of the Trustees and Flnancial StstÈmènts for the Year Ended 310ecember 2023 for KH THEATRE LIMITED Calcutt Matthew5 WBZ Ltd 19 North Street Ashford Kent TN24 8LF
KH THEATRE LIMITED Contents of the Financial Statements for the Year Ended 31 December 2023 Page Chairman'5 Repgrt Report of the Trustees Report of the Independent Auditors 9 to 11 Statement of Flnantial Activities 12 Balance Sheet 13 to 14 Cash Flow Statement 15 Notes to the Cash Flow Statement 16 Notes to the Financial Statements 17 to 26
KH THEATRE LIMITED Chairman's Report for the Year Ended 31 December 2023 KH THEATRE LIMITED CHAIR OF TRUSTEE'5 REPORT For the Year Ended 310ecember 2023 This year was a significant one for the charrty, with full planning permission bein8 granted by Islin8ton Borough Council for Its new purpose-buili home at 116 Upper Street in April, construction work be8inning on site in June, closure of its original pub theatre home at 115 Upper Street in August, and rehearsals beginning for the opening producrion of the new theatre in Decernber, ahead of the public opening set lor early January 2024. The new theatre feature5 a flexible and acce55ible 200-seat main house theatre, a 50-seat cabaret Space, two bars, and state-of-the-art technical and environmental facilities that allow the charity to look ahead to the next five decades wlth as much confidence as the King's Head Theatre's founder Dan Crawford dld when he opened the pub theatre in 1970. Recognising his legacy, the trustees dedicated one of the new batkstage spaces to Dan In his mèmory. with a neighbouring room named to commemorate Girls Rabinovitch, the visionary develgper whose work over many years made the Islington Square concept a reality before his deaih in 2020. Thè trustees and staff remain hugely grateful for the sUPPOrt of the Mayor of London through Round Three of his Good Growth Fund, as our key funder5 for the move. together with the support of our pub theatre landlords Young's. new landlords Cain International, the hugely supporknve local authortty Islinston Borough Council and the local tommunitV who all continue to champion the Charity's decision to move premises. Alongside the work on the capttal projert, the final season at the pub theatre was artistically acjventurous - curated by four 6ue5t 3rti5tic directors, each bringing their unique offering to their part of the season. This, and other programming throughout the final months of the pub theatre, proved popular with audiences. with attendance rebounding notably compared to how the box office fared after the covld closure period of 202011. The ch3rity'S dedi¢ated staff team continues to be led by ExecLtive Producer and acting CEO Sofi Beiewbger, who a5 well as programming great show5 at the pub theatre Is working closely with the charity's capStal projert dirertor Louise Chantal and the trustees on the new theatre. The team working ort the new theatre has expanded considerably in 2023, with our project mana8er5 Thomas & Adamson workin8 closely with architects Storey & Co, public welcome deslgners Pup Archltects and contractors Albany International. This IS the eighth and hnal time I will be comMennE on the charlty's year in these accounts. wlth my commitment to stèy on beyond my original six-year term as chair and trustee eomlng to a tontlusion with the opening of the new theatre. It hès been a great privilege to work alongsidè my fellow trustees, the staff of KHT, and all of the charity's invaluable partnèrs both at the pub theatre and on the realisation of the new theatre. Although the covid pandemic c105ure period wa5 challenging both to the charity's Su1Val and the feasibility of the new venue plans, it ha5 been inspirational to witness the breadth and depth of support for the King's Head Theatre from all areas Df the community and theatre ind¢Jstry during my time on the board. and I trust that these lirTrks and roots will only extend and deepen thanks to the huge potentlal of the new theatre to further the charity's reputation as a cuttlng-edge fringè theatre showcasing the best work from both new and established artists. As part of that, the newty established Angels of Angel fund supporttng new shows at KHT Is an essentSal rÈstsurte that I hope will gain ongoing support to allow brilliant theatre to thrive on Upper Street. I look forward to continuing to visit KHT as a producer and audience member for many years to come. James Seabrlght, Chair of Trustees Page I
KH THEATRE LIMITED Report of the Trustees for the Year Ended 31 December 2023 The trustees who are also directors of the charity forthe pvrpose5 of the Companies Art 2006, present their report with the )Inancial ststements of the charity for the year ended 31 December 2023. The trustees have adopted the provisions of Accounting and Reporting bycharities.. Statement of Recommended Practite applicableto charhties preparlng their accounts Sn accordance with the Financial Reporhng Standard applieable in the UK and Republic ot Ireland IFRS 1021 (effective I January 20191. OBJECTIVES AND ACTIVITIES Oblecttves and alms The Trustees are pleased to present their annual report together with the consolidated financial statements of the charity for thè year endin8 31 December 2023, which 15 a150 a director'5 report for the purposes of the Companies Art 2006. The linancial statements comply with the Charitr'es Act 2011, the CompanSes Act 20c, the Memorandum ènd Arttcles of Associats"on, and the Statement of Recommended Practice- Accountt"ng and Reporfjng by charln.es SQRP FRS 102 (effective I january 20151. This report looks at what the Charlty has achieved and the outcomes of its work in the reporting period. The tTustee5 report the success of each key activity and the benefits the charity has brought to those groups of people that It Is set up to help. The revlew also helps the trustees ensure the charity's activities remain focused on tt5 Stated objectives. Obiertives and ArtlvStl•s Our prlncSp31 oblethves are.. To present ambitious theatre and opera that supports. develops and values our arhsts, staff, audiencès and a to be the most ethically and socially responsible fringe theatre in the UK known for its challenging work and support of young artiSt5. To commit to fighting prejudlce through the wgrk we stage, the artists and staff we work with and by producin8 work for minorwty audience groups. To promote fair pay for all on the fringe 3nd to create accessible routes for eady career artists to stage their work. Significant artivitles Present a broad range of production5 covering theatre. opera and musica15 Wlth Jcces51ble ticket price5 at the King's Head Theatre in London. Offer opportunithes for regular theatre goers to see ntw work and revivals of work that have not been staged in the UK before. Employ tslented emerging artist5 and provide a supportive environment for them to develop their craft and advance ihelr careers. Provide training programmes for emerging dlrectors and producers and support for thebr tonttnulng professlonal development. To take a leadership role in gethng the Sndustry to follow our commitment to fair wa8es on the fringe and only stagin8 work which agrees to pay fair wa8es. Page 2
KH TrIEATRE LIMITED Report of the Trustees for thÈ Year Ended 31 Dember 2023 OBJECTIVES AND AcfiviTIES Public benefit Charitable 8th¥1e$- Produrtlons In 2023, the King's Head Theatre IKHTI closed its doors on its historical pub theatre whilst the final works on its new home. right behind the existing site in Islington Square, were completed. The pub theatre continued to operate until the 13th ol August 2023. now at full programming and operational capacity having recovered since the pandemSc; though ticket sales on the whole remained s1Cant1¥ behind its pre-2020 hgures. The pub theatre's final six months featured a Guest Artistic Directors programmè, supported by Arts Council England, whith provided four mid-career LGBTQ+ theatre prathJoners the opportunity to gain valuable experience and trainin8 in running a theatre, curating a programme, WOTkln8 and nurturing their programmed arrists and in the role of arrisC dlrectorshlp. The four guett artistic directors were Isabel Adomakoh Youn& Tom Ratcliffe, Tania Azevedo and David Ctsmming. Isabel Adomèkoh Youn8 15 an actor and drag king performer. Their season spanned theatre. tabaret, drag. comèdyand other plarforms with a focus on showcasing diverse talent. It featured a seTies of tsne-week runs whith included Perverts by Alice McKee which feturned later in the year for a full three week run. Tom Ratcliffe's season fotUS5ed on new writin& world premiering BTeedin8 by Barry Mcstay for a three-week run which opened to rave reviews and stron8 audtence reacknons. It also featured a week of work-in-progre$5 performances by emerging LGBTQ+ writers in a new writing festival co-curated by Rikki Beadle-Blair MBE. Breeding went to be programmed in the openSng season of the new King's Head Theatre. ènd multSple shows in the new writing festival are now tourin8 the UK with Emmerson & Ward Produthons. Tania Azevedo'5 seasorb 5howca5ed new LGBTQ+ musical theatre includlnB viral-sensa0n Diary of a Gay Disaster, a son8- cycle Lifeboats by Gus Gowland and fringe cult-hit Juliel The Musical. David Cumming's linal season, which closed the pub theatre. looked at "Queer Futures" with Dogmouth Theatre's 1(K)O Ways The World Will End and How It Will start Again which wa5 the final production in our 53-year-old pub theatre. The pub theatre closèd on 13th August 2023 with a gal celebration eventfeaturing performancesfrom Steven Berkoff. Mark Gati55, Damejanet Svzman and Linda Madowe, h05ted by David Cumming. Outside of the Guest Artistic Director programme. the theatre co-produced Mediocre White Male starring and written bv Will Closè and dirèttÈd by Joe von M31achowski, and also hosted a three.week run of Fringe First Winnin8 Production And Then The Rodeo Burned Down. Overall, in 2023, 20,694 people Saw a production at KHT, compared to 24,072 people in 2022 and 44,855 In 2019. Thls was an average of 2,956 per month of operation. an increase of approximately 68% versus 2022 and dètrease of approximatÈlv 26% versus 2019. After the pub theatre'5 c105ure, the organisètion's focus wa5 On the capital project and opening of it5 new home at 116 Upper St. London. After a si¥-month fit-out, the new theatre is set to open in January 2024. Selerted reviews Include.. * 'There's nothin8 mediocre about this dark and complex tale" Daily Mall on Medittre White Mèle 'it's beautiful. honest and raw storytelling done terrifically well Theatre Weekly on Breeding 'McArdle is funny, his comedic timing is excellent, including skillfully lethng jokes sit with the audience. He makes good use of all the space in the King's Head Theatre" Everything Theatre on The Mannv * 'The play takes us on a well-planned emotional path- it feels like we're in safe hènds wrth wrikn.ng like this. It leaves the bgest emotional hit to the end.- The Revlews Hub on The MP, Aunty Mandy and Me Page 3
KH THEATRE LIMITED Report of the Trustees lor the Year Ended 31 December 2023 OBJECTIVES AND ACTIVITIES Volunteer5 STRATEGIC REPORT AchlÈvÈmtnt and performanc• Charltable artl¥ltles Equlty abd Falr Employment The King's Head Theatre remains committed to fair employment and has a lantastic relationship with Equity, thè UK'S largest trade union for the performing arts. We are proud to be one of the very few 5mall-5cale unfunded theatre5 in the UK to have on Equity House Agreement. This has been in place sin¢e 2011, at which point it was the tirst a8reement of its kind. Since then. over 300 venue5 and production companies have signed up to the agreement, whieh has brought milllons of pounds in wages to ador5 and stage managers. Gender and Equallty Pollcv In 2018 the King's Head Theatre Implemented a Gender and Equality Policy, furthering our aim to lead the way in making equitablefringe theat. With immediate effect, we committed to working annually with 50% non-male artists and creatives. and to offer at least 50 hours a year to mentoring and helping emerging companies and championing ethical employrnent. As the 5ertor continues to recover from the pandemic, and responds io a Changing landscape, it is clear we need to r¢-define some of these benchmarks, and this a cOnnuing process as we also move Into the new venue. Audlences Demographic data for 2023 indicates 8% of audience figures represented patrons under the agè of 30. Thls is an increase on 2022, with audiences under 30 making up ?% of total audiences. Of thi5. 14% of audience5 were between the ages of 26- 35 in 2022 - making up the largest age demographic in retorded data - but in 2023, this 5hol up to 22%. Patrons over the age of 66 made up 5.9% of audiences for the year in 2022, falling to 3.2% for 2023 which sug8est5 a movement in our audience reach towards younger audience5 in line with the variance in data towards those aged 26-35 In 2023. In 2023, 6.1% of audience member5 were based in our immediate vlcinlty Nl. versus 6% in 2022 however the total Nl 3ttendance figure for 2022 was 1455 versus 1258 In 2023, bearing irt mind 1.162 p05tttsde zone5 were retorded for 2022 gainst 1.159 postcode zones in 2023. whilst unique postcode zone figures remain fairly consistent, data indicates that our audience reach has extended beyond Nl which presènts further opportunities for the venue's outreach. Fundralslng actl¥Ftles Through our Support The Kings Head fund. we have seen a drop in average donation5 per customer from £25.73 in 2022 to £24.81 in 2023. It is Important to note that the difference is widened by the overall drop in total atjdience numbers by 16% from 2022 to 2023. This remains considerably lower than pre-pandemic levels. However. excluding any membership scheme5, donation5 continue to represent 6% of total income through Spektiix yèar on year. Butket donations ft)r 2023 equalled £7,282.74. Staff Tearn In 2023 the artisttc programme was overseen by Executive Producer (Athng CEOI Sofi 8erenger and the Guest Artisti¢ Dire Unfortunately. a number of staff roles were made redundant following the closure of the pub theatre and a restructure in antidpa of the openin8 of the new theat in Islington Square. Page 5
KHTHEAThE LIMITED Report of the Trustees fgr the Year Ended 31 December 2023 STRATEGIC REPORT Finantial rev5ew Flnanclal posltlon IoKome The total unrestricted income eamed for the period was £516.946. The total restricted intome earned for the period in relation to the capitsl project was £1,245,000. VOnt•ry Income We received £152,171 in donation Theatre and Productton Income We ceiVed £276,884 from ticket sales and associated booking fees. Cost of Charltable Activities Tbe total operational expenditure for the period was £469,594. Investment poll¢¥ and obleftl¥es The trustees, having regard to the liquidity requirements of operatlng the theatre, have kept avallable funds In an interest- bearing deposit account. Reser¥e$ polky At 31st December 2023 the charity had unrestrirted reserves of £253,38012022 £197,152) and restricted reserves of £1.429,66512022 £195,415) givin8 3 total reserves balance of £1,683,04512022 £392.5671. The company's reserves policy indicates that there should be three months, worth of operation expenditure of unrestritted reserves on the balance sheet and this crlterion is mèt at 31 December 2023. There are no concerns regarding the charity's ablllty to conttnue to operate. Flnantlal and rlsk management objethves and polici•5 The TrLtstees continue to review the malor risks to which the Charity is exposed and are establishing systems to mltlgate any risks not already coverÈd by the Charity's existing systems and risk management Strategies and controls. Particular current key risks include.. Vulnerability to drops in generated and voluntary income. The Charity is especially vulnerable to this in this period when our reserves are not yet at the level the trustees have deemed desirable. Changes in the political climate, cultural policies and economic health of the country that may have a negative impact on KH Theatre Limited and the arts or8anisations. artists, audiences, and participants that it works with. Future departures of key members of staff, a risk whlch is monltored. Competftor organisations eThterin8 our market space. Theatre companies and venues are under threat in terms of reduced income from Arts Council England. local authoritie5, Other funders, and audiences, potentially resulting in less income or increased contrn tosts for the company. The Trustees regularly monltor these risks. their consequen4 and appropriate ways to respond. The Trustees note that a key element in the management gf financial risk is the 5etts.ng of a Teserves policy and its regular review by the Trustees. Page S
KH THEATRE LIMITED Report of the Trustees for the Year Ended 31 December 2023 5TKATEGIC REPORT Future plans As the theatre prèpares to open its new Venue in lslington Square - featurlng a 2(X) seat audltoilum, 50 seat cabaret venue, multiple bars and office space the theatre will 80 into a period of stabillslng the new operational model. rebulldlng Staff team5 and a look towards future business planning tor the organisatron in Its new home. With over double the ¢?pacity in s new main auditorium the organisatson will need to reart accordingly to the new commercial pressijres and scales of the work. STRucfuRE, GOVERNANCE AND MAfiAGEMEMT Governlng document The¢harity is controlled byits governingdocument, a dèed of trust, and tonstitutes a limited company, limited byBuarantee, as delined by the Companies Act 2006. An-Ra¢I$M Commhment The King's Head Theatre has alway5 fostered diverstty and inclusion, and now, morethan ever, we stand with the Black Lives Matter movement. The Kirtg's Head Theatre rnust be a home for everyone to feel welcome to tell their stories and for us collectlvely, to change our world f¢r the better. To all our artists, audiences. stsff and community across the world. know that we will not tolerate racism in any form. We wlll reflect that In everything we do. And while our doors may currently be shvt, we commit anew to reflecting and protecting our exceptional and diverse society. Today and alway. we Stand with our Black colleagues and with our community as we fight for a more equal world. Goveming Dotymenl KH Theatre Limited is a company limited by guarantee governed by its Memorandum and Article5 of Association dated 24th September 2014. The current member5 of the company are the Trustees. The liability of the member5 of the company is limited by guarantee. In the event of the company being wound up during the period of membership or within the year following, members are required to contribute an amount not exceeding £1. There were 9 members as at 31.12.2023. The Trustees did not receive any benefft5 in the year. ReryUiln1t and appointment of new trustees Appolntment of Tru5tee5 Any Tnjstee is entitled to nominate people for board membership and names go forward to be approved by the Board of Trustee5. The Trustees represent a core of specialist skills, including but not limited to arts administration, programmlng and producing. international lav4, technical theatre production and HR. An essenttal requirement Is a passion for theatre generally and the work of KH Theatre Limited particularly, and a desire to increase access to theatre and audiènce diversity- Organisational strurture The Board of Trustees oversees and is responsible for the admirtistration ot the company. The board meets at least four times during the year. Senioi staff are appointed by the Trustees with delegated authority to manage day to day operations of the chartty. Page 6
KH THEATRE LIMITEO Report of the Trusiees for the Year Ended 31 Decèmber 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Induction and tralnlni of new trustees Potential new board members are given the opportunity to meet the Chalr and a senlor staff member before being invited to meet the full Board of Trustees and observe a board meeting. Key management r¢muner4fjon The Trustees consider the Board of Trustees as comprising the key management personnel of the tharity in char8e of direthftg and controlling the charity and running and operating the charity on a day-to-day basis. All trustees give of their time freely and no trustee remuneration was paid in the year. REFERENCE AND ADMINISTRATIVE DETAILS Reglstered Company number 09187162 IEn8land and Wales) Rezlstered Charlty number 1161483 Re8lst•red offite 115 Upper Street London NI IQN Trusttès M L Lèuder (resigned 28.3.231 J A R Se3bright M Waiting R J Williamson K Farrell A Porter M Hedges H William50n (appointed 18.4.231 K Mullan (appointed 18.4.231 R Khan lappointed 4.12.231 Auditors Calcutt Matthews WBZ Ltd 19 North Street Ashford Kent TN24 8LF STATEMENT OFTRUStEES' RESPONSIBILITIES The tru5tee5 Iwho are also the director5 of KH Theatre Limited for the purposes of company lawl are responsible for preparingthe Annual Report and theflnancial statements in accordance with applicable law and United Kingdom Accounting Standards (United Klnedom Generally Accepted Accounting Practicel. Page 7
KH THEATRE LIMITED Report of the Trusiees for the Year Ended 31 December 2023 STATEMEKf OF TRUSTEES. RESPONSIBILITIES- continued Company law requires the trustee5 to prepare financial statements for each financlal year whlch glve a twe and falr vSew of the stste of affairs of the charitable company and of the incoming resources and application of resource5, including the income and expenditure. of the charitable company for that period. In Preparing those financial statements, the trustees are required to.. select suitable accounting policies and then apply them rpnsistentlv,. observe the methods and principles in the Charity SORP,. make judgements and estimates that are reasonable and prudent,. state whethèr applicable accoLJntin8 Standards have been followed, subject to any material departyres disclosed and explained in the financial statements,. prepare the flnancial statements on the going toncern basis unle5$ it 15 inappTopriatÈ to presume that the charitsble company will tontinue in busine55. The trustees are responsiblefor keepin8 proper accounting records whlch dlsclose wlth reasonable accuracy at any time the thnancial position of the charitable company and to enable them io ensure that the financlal 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 irrègularities. In so far as the trustees are aware.. there is no relevant audit information of which the charitable company's aLtditors are unaware,. and the trustees have taken èll steps that they ought to have takerb to make themselve5 aware of any ielevant audit information and to establish that the auditors are aware of that information. AUDITORS Report of the trustees, incorporatr'ng a Strategic report, approved by order of the board of trustees, as the company 1410612024 directors, on... and signed on the board's behalf by: Trustee Page 8
Report of the Independent Auditors to the Trustees of KH Theatre Limited Oplnlon We have auditetj the financial statements of KH Theatre Limited Ithe 'charitèble company'l for the year ended 31 December 2023 which comprise the Statement of Finantial Athvifjes, the Balance Sheet, the Cash Flow Statement and noie5 to the financial statements. including a summary of Significant accounting policies. The financial reporting framework that has been applied in their preparatign is applicable law and United Kingdom Accounting Standards (united Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charitsble company'5 affairs as at 31 December 2023 and of its incomin8 resources and application of resources, in¢luding its income and expenditure. for the year then ended.. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.. and have been prepared in accordance with the requirements of the comnIt$ Att 2006. Ba$15 for oplnlon We conducted our audlt in atcordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilitie5 under those standards are further described in the Auditors. responsibilities for the audit of the financial 5taternent5 Section ol our report. We are independent of the charitable company in accordan with the ethlcal requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fullilled our other ethical responslbillfjes in accordance with these requirements. We believe that the audit evidence we have obtained Is sufficient and appropriate to provide a basis for our opinion. Concluslons relatln8 to ¥oln8 concern In auijiting the financial statements, we have concludèd that thè trusiees, use of the going concern basls of a¢counifn8 in the prep3ration of the financSal ststements is appropriate. Based on the work we have pèrformed, we have not identified any material uncertaine$ relating to events or condlttons that, individually or¢olle¢D"vely, may ¢ast5ignificant doubt on the charitable company's ability to continue asa going conorn for a period of at least twelve months from when the financS2l statements are èuthorised for Issue. Our responsibilities and the responsibilities of the trustees with respert to goin8 concern are described in the relevant sections of this port. Othèr Informatlon The trustees are responsible for the other information. The other infoimation tomprises the Informaiion included in the Annual Report, other than the financial statements and our Report of the Independent Audilor5 thereon. Our opinion on the financial statements does not cover the other infomiation and, except to the extent otherwise expliatly ststed in our report, we do not Èxpress any form of assurantè contlusion thereon. In Connection wh our èudit of the financial statements, our responsibility is to read the other infomiation and, In doing 50. consider whether the other information is Material inconslstent with the financlal staiements, or our knowledge obtained In the audit or otherwise appears to be materially misstated. If we Identify such material inconsistenties or apparent material misstatements. we are required to determine whether this g6ves rise to a material misstatement in the financial statements themselves. If, based on the work we have perlormed, we conclude that there is a material mi5ststement of this other informats'on, we are required to report that fact. We have nothin8 to report in this re8ard. Page 9
Report of the It)dependent Auditors to the Trustees of KH Theatre Limlted Matters on whlth we arè requTred to report by exceptton We have nothing to report in respett of the following matter5 where the Charitr'es IAccounts and Reportsl Regulations 2008 require5 U5 to report to you rf. in our opinion= the information gtven in the fteport of the Trustees is incon5iStent In any material respea wlth the financlal statements,. or the charitable company has not kept adequate a¢countin8 records; or the financial statements are not in a8reement with the accountin8 records and returns,. or we have not received all the information and explanations we require for our audit. ResponslbTlitle5 of trustees As explained more fully in the Statement of Trustees, Responsibilities, the trustees Iwho are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the thnancial statements and for bein8 5atisfled that they 8Sve a true and fair view, and for such intemal control as the trustees determine is necessary to enable the preparation of fi'nancial 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 charitable company's abllity to continue as a goin8 concern. disclosing. as applicable, matters related to goin8 concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operaOrts. or have no reallstic alternative but to do so. Our responsibtlities for the audlt of the financlal statements We have been appolnted as auditors under Settion 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our oblethves arè to obtain reasonable assurance about whetherthe financial 5talements a5 a whgle are freefrom material mlsstatement, whether due lo fraud or eOr, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable a55urance is a high level of assuranee. but is not a guarantee that an audit condurted in accordance with ISAS UK) wlll always detect a material mlsstatèment when it exists. Misstatements can arise from fraud or error and are considered material If. Indivldually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A fitrther description of OUT responsibillties for the audlt of the th"nancial statements is located on the Financial Reporting Council's website at www.frc.org.uvaudltorsresponsibilltses. Thls description forms part of our Report of the Independent Auditor5. Page 10
Report of the Independent Auditor5 to the Trustees of KH Theatre Limlted Use of our report This report 15 made solely to the charitable company's trustees. as a body, in atcordanee with Part 4 of the Charities (Accounts and Rèports) Regulations 2008. Our audit work h3s been undertaken so that we mlght state to the charitable company's trustees those matter5 we are required to state to them in 3n auditors, report and for no other purpose. To the fullest extent permitted by law. we do not a(pt or assume responslbllity to anyone other than the charitable Company and the charitable company's tru5tee5 as a body. for our audit work, for this report, or for the opinions we have formed. Xeinadin Audit L(mited Eligible to act a5 an auditor in terms of Sèction 1212 of the Companie5 Act 2006 19 North Street Ashford Kent TN24 8LF Date.. Page 11
KH THEATRE LIMITED statement of Financial Activities IOT the Year Ended 31 December 2023 31.12.23 Total funds 31.12.22 Total funds Unrestricted fund Restricted fund Notès INCOME AND ENDOWMENTS FROM Donations and legacies 152.172 152.172 78,124 Charltable actSvltles Encouragement of the Arts 360,894 1,245.000 1.605,894 334,032 Investment income 3,881 3,881 1,932 Toial 516,947 1,245,000 1,761,947 414,088 EXPENDrruRE ON Ralsin8 funds 1,691 1,691 Charitable actlvltfes Encouragement of the Arts 459,028 10,750 469,778 574,247 Total 460,719 10,750 471,469 577,291 NET INCOMEIIEXPENDmJftEI 56,228 1.234,250 1.290.478 1163.2031 RECONCIIIATION OF FUNOS Total funds brought lorward 197,152 195,415 392,567 555,770 TOTAL FUNDS CPJIRIED FORWARD 253,380 1,429.665 1.683,045 392,567 The notes form part of these financial statements Page 12
KH THEATRE LIMITED Balan Sheet 31 December 2023 31.12.23 Total fund5 31.12.22 Total funds Unrestitrted fund Restricted lund Notes FIXED ASSETS Intangible assets Tangible assets 12 13 2,355 289,711 2,355 1,534,711 2,777 172,6S7 1.245,OCQ 292,066 1.245,DJO 1.537.066 175,434 CURRENT ASSETS Debtors Cash at bank 14 166,715 99,079 44.788 139,877 211.503 238,956 237.295 216,219 265,794 184.665 450,459 453,514 CREDITORS Amounts fallin8 due within one year 15 1304,4801 1304.4801 1236.3811 NE[ CURRENT ASSETS 138,6861 184,665 145,979 217,133 TOTALASSETS LESS CURRENT LIABILITIES 253,380 1,429,665 1,683,045 392,567 NET A55 253,380 1,429,665 1,683,045 392,567 FUNOS Unrestritted funds Restrfcted funds 16 253,380 1,429,66S 197,152 19S,415 TOTAL FUNDS 1,683,045 392,567 The trustees acknowled8e their responsibilities for ensuring that the charitable company keeps accoUnn8 records that tomply with Sections 386 and 387 of the Companies Act 20L)6 and preparing ffnancial statements which give a true and fail view of the state of affairs of the charitable company a5 at the end of each financial yearand of it5 surplus oréeficit for each financSal year In accordance wlth the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 21J)6 relating to financial statements. so far as applicable to the charltable companv. Thesè financial statements havè been audited under the requirements of Sethon 145 of the Charitles Art 2011. The notes form part of these financial statements Page 13 continued...
KH THEATRE LIMITED 8alance Sheet- continued 31 December 2023 1410612024 The financial statements were approved by the Board of Trustees and authorised for15sue on..... 3nd were signed on its behalf by- Trustee The notes forrn part of these financial 5tstements Page 14
KH THEATRE LIMITED Cash Flow Statement tor the Year Ended 31 December 2023 31.12.23 31.12.22 Notes Cash flows Irom operatin8 artivities Cash generated from operations 1.395,947 233,6 Net tash provided by operating activities 1.395,947 233,906 Cash Ilows from investiTr8 activities Purchase of tangible fixed assets Interest received 11,377,091) 3,881 1102.0451 1,932 Net cash used in Investing activities 11.373,2101 100,1131 Change In cash and cash tquivalènts in the reportlng pèriod Cash and cash equ5valents at the be8lnnlng of the reportlng perlod 22,737 133,793 216,219 82,426 Cash and cash eqUalents at the end of the reportin8 pertod 238,956 216,219 The notes form part of these financial statements Page 15
KH THEATRE LIMITED Notes to the Cash Flow Statement for the Year Ended 31 December 2023 RECONCILIATION OF NET INCOMVIEXPENDITUREI TO CASH FLOW FRQM OPERATING ACTIVITIES 31.12.23 31.12.22 Nèt incomellexpenditure) forthe reporting period las per the Statement of Flnancial Adivitiesl Adjustments for: DeprecÉ3tion charges Loss on disposal of fixed assets Interest received 1,25X1,478 1163.2031 13,562 1,899 13.8811 11972 11.9321 Ilnereasel/detreasè in debtors In¢rease in credltors 123,4251 117,316 260,892 126,177 Net cash providèd by <)perations 1,395,947 233,906 ANALYSIS OF CHANGES IN NET FUNDS At 1.1.23 Cash flow At 31.12.23 Net ¢ash Cash at bank and in hand 216,219 22.737 238.956 216.219 22.737 238.956 Total 216,219 22.737 238,956 The notes form part ofthese financial ststements Page 16
KH THEATRE LIMITED Notes to the Financial Statements for thè Year Ended 31 December 2023 ACCOUNTING POLICIES Basis of preparln8 the financlal rtatements The thnancial statements of the charitable company. which Is a public benefit entity under FRS 102, have been prepared in accordance with the Charitles SORP IFRS 1021 'Accountin8 and Reporting by Charities= Statement of Recommended Practice applicable to eharitie5 preparing their accounts in accordance with the Financial Reporknn8 Standard applicablè the UK and Republic of Ireland IFRS 1021 (effective I january 20191,, Financial Reporknng standard 102'The Financial Reportin8 Standard applicable in the UK and Republic of Ireland. and the Companies Act 2006. The financial statements have been prepared under the historical cort convention. Income All income IS Teco8nised in the Statement of Financlal ACtiV5es once the charity has entitlement to the funds, it is probable that the Income will be received and the amount can be measLtred reliably. Expendlture Liabilitie5 are recogni5ed as expenditure as soon as there is a le8al or constructive obli8ats.on committing the charity to that expend>ture, it is probable that a transfer of economic benelits will be required in settlement and the amount tsf the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and ha5 been classified under headings that aggregate all cost related to the category. Where costs cannot be dlrectly attributed to paiticular headings they have been allocated to a¢tivitie5 on a basi5 ¢OnSiStent with the use of resour¢es. Yangiblè fixed assets Depreciation is provided at the following annual Tates In order to wrtte off each asset over its estimated useful Ilfe. Freehold propertv Plant and machinery Fixtures and fith'ngs Computer equipment not provided 25% on reducing balènce 25% on reducin8 balance 25% on reducing balance Taxation The charity is exempt from corporation tax on its charitsble actiwkne5. Fund accoundnE UnrÈstrictÈd funds can be used In accordance with the charitable objethve5 at the discretion of the trustees. Restricted fund5 can only be used for particular restricted purposes Within the objects of the charity. Restrictions arise when specified by the donor or when funds are ralsed for partlcular restricted purposes. Further eXPlanaOn of the nature and purpose of each fund is Included in the notes to the flnanctral statements. Hire purthase and lèasinz tomrnitment5 Rentals paid under operating leases are charged to the Statement of Financial Acttvlties on a straight line bas over the period of the lease. Page 17 continued...
KH THEATRE LIMITED Notes to the Finèncial Statements- continued for the Year Ended 31 December 2023 DONATIONS AND LEGACIES 31.12.23 31.12.22 Donations Visiting Productions Rental In come Mernbership and Sponsorship 149,071 2.651 450 65,771 6,553 5,800 152,172 78,124 INVESTMENT INCOME 31.12.23 31.12.22 Interest receivable- trading 3,881 1,932 INCOME FROM CHARITABLE A1VITIEs 31.12.23 31.12.22 Aclivity Ticket Sales Encouragement of the Arts 251,228 295,871 Friends Scherne Encouragemèrtt of the Arts 425 450 Merchandise Entouragement of the Arts 1,302 6,746 Botsking Fees Encouragement of the Arts 25,656 19,115 Grants Encouragement of the Arts 79,715 10,000 Gift Aid Encouragement of the Arts 1,850 Other Income Encouragement of the Arts 2,568 Capital Grants Encouragement of the Arts 1,245,000 1.605,B94 334,032 Page 18 continued...
KH THEATRE LIMITED Notes to the Financial Statements- continued forthe Year Ended 31 December 2023 INCOME FROM CHARITABLE A1vITIEs- tontlnued Grant5 received, included in the above, are as follows- 31.12.23 31.12.22 58,500 5,OC General Equitsble Charitable Trust 5,0(1 Arts Council England 21,215 79,715 10,000 RAISING FUNDS Other tradln8 artlvltSes 31.12.23 31.12.22 Purchases 1,691 CHARITABLE ACtIVlTIES COSTS Support costs Isee note 71 Direct Costs Totals Encouragement of the Arts 123,097 346,681 469,778 Page 19 continued...
KH THEATRE LIMtrED Notes to the Financial Statements- continued for the Year Ended 31 December 2023 SUPPORT COSTS Information technology Management Finance Encouragement of the Arts 263.166 65,905 Human resources Other Totals Encouragement of the Arts 310 15.992 346.681 NEf INCOMEI{EXPENDITURÉI Net incomellexpenditurel is stated after ehargingllcreditin81'. 31.12.23 31.12.22 Depreciation- owned assets Other operatinE leases Deficit on di5P95al of fixed assets Development cost5 amortisation 13,139 37,105 1,899 422 11,549 37,200 423 TRUSTEES, REMUNERATION ANO BENEFITS There were no trustees. reMUneon or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022. Trust•es' •xpenses There were no tru5tee5' expen5e5 paid for the year ended 31 December2023 nor for the year ended 31 Detember 2022. Pa8e 20 continued...
KH THEATRE LIMITED Notes to the Financial Staternents- continued for the Year Ended 31 December 2023 io. STAFF COSTS 31.12.23 31.12.22 Wages and salarie5 Social security costs 175,8lS 9,984 230.629 13,832 185,800 244,461 The average monthly number of employees during the year was as follows-. 31.12.23 31.12.22 li Staff No employees received emoluments in exte5$ Of £60,IYio. li. COMPARAMVES FOR THE STATEMENT OF FINANCIAL ACTNMES Unrestricted fund Restricted fund Total fund5 INCOME AND ENDOWMENTS FROM Donats'ons and legacies 78,124 78,124 Charltable attlvlllès Encouragernent of the Arts 334,032 334,032 Investment intome 1,932 1,932 Total 414.088 414.088 EXPENDITURE ON Raising funds 3,044 3,044 Charitable arti¥it5e5 Encouragement of the Arts 569,747 4,500 574,247 Totsl 572,791 4,5¢XJ 577.291 NET INCOMEIIEXPENDMJRE) 1158,7031 14,5001 1163,2031 RECONCIUATION OF FUNDS Total funds brought forward 355,855 199,915 555,770 Page 21 continued...
KH THEATRE LIMITED Notes to the Financial Statements- contlnued for the Year Ended 31 DÈcÈmbÈr 2023 ii. COMPARATIVES FOR THE STATEMENTOF FINANaAL AcfiviTIES- continued Unrestricted fund Restricted fund Total funds TOTAL FUNOS CARRIEO FORWARD 197,152 195,415 392,567 12. INTANG18LE FIXED ASSETS Development costs COST At l January 2023 and 31 December 2023 4,225 AMORTISATION At l January 2023 Charge for year 422 At 31 December 2023 1.870 NET BOOK VALUE At 31 December 2023 2,355 At 31 De¢ember 2022 2,777 Page 22 continued...
KH THEATRE LIMITED Notes to the Financial Ststements- ¢ontinued forthe Year Ended 31 December 2023 13, TANGIBLE FIXED ASSErs Fixtures and fitting5 Freehold propertv Plant and ma¢hinery Computer equipment Totals COST At l January 2023 Additr'ons Disposals 193.578 1,358,275 22,903 5,522 18,816 14,7551 7,501 229,504 1,377,091 114,8431 18,0221 12,0661 At 31 December 2023 1,551,853 14,881 19,583 5,435 1,591.752 DEPRECIATION At l January 2023 Charge for year Eliminated on disposal 31,991 9,679 15,291 1,755 17,4321 4,573 1,201 13.9431 4,992 504 11.5701 56,847 13,139 112.9451 t 31 De¢en)ber 2023 41,670 9,614 1.831 3,926 57,041 NETBOOKVALUE At 31 December 2023 1,510,183 5,267 17,752 1,509 1,534,711 At 31 December 2022 161.587 7.612 949 2,509 172,657 14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.23 31.12.22 Trade debtors Amounts owed by group undertaklngs Other debtors VAT Prepayments 12.105 45.859 35,060 117,694 78S 8.382 188.867 36,454 211,503 237,295 Page 23 continued...
KH THEATRE LIMITED Notes to the Flnantial Statements - continued for the Year Ended 31 Detember 2023 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.23 31.12.22 Trade Creditors Amounts owed to group undertakings Social security and other taxes Other creditors Accruals and deferred income 137,207 12,264 5.025 144.634 5,350 99,907 61,481 3,483 65.018 6,492 304,480 236.381 16. MOVEMENT IN FUNDS Net movement in funds At 31.12.23 At 1.1.23 Unreslrlcted lunds General fund 197,152 56,228 253,380 Restr5cted funds Capltal Projett 195,415 1,234,250 1,429,665 TOTAL FUNOS 392,567 1,290,478 1,683.045 Net movement in fvnds, included in the above are as follows: Incoming resources Resources expended Movement in funds Unrestrlrted funds General fund 516,947 1460,7191 56,228 Restrirted funds Capital Project I,245,0 110,7501 1,234,250 TOTAL FUNDS 1,761,947 1471,4691 1,290.478 Page 24 continued...
KH THEATRE LIMITED Notes to the Financial Statements- Continued for the Year Ended 31 December 2023 16. MOVEMENT IN FUNDS- contlnued Comparatlves lor movement In funds Net movement funds At 31.12.22 At 1.1.22 Unre5tr1rted lunds General fund 355,855 1158,7031 197,152 Restrlcted funds Capital Projett 199,915 4,5} 195,415 TOTAL FUNDS 555,770 1163,2031 392,567 Comparative net movement in funds, included in the above are a5 follows: Incoming resource5 Resource5 expended Movement in funds Uvwt5tricted fvnds General fund 414,088 1572,7911 1158.7031 Restrlrted funds Capital Project 14,5cKII 14,5001 TOTAL FUNDS 414.088 1577,2911 1163,2031 A current year 12 months and prior year 12 months combined position is as follow5.' Net movement in fund5 At 31.12.23 At 1.1.22 Unrestricted funds General fund 355.855 1102.4751 253,380 Restricted lunds Capital Projèct 199.915 1,229,750 1,429,665 TOTAL FUNDS 555.770 1.127,275 1,683,045 Page 25 conned...
KH THEATRE LIMITED Notes to the Flnancial Statements- continued for the Year Ended 310ecember 2023 16. MOVEMENT IN FUNDS- conttnued A current year 12 months and prSor year 12 months comb1rd net movement In fvnds, induded in the above are as follows.. Incomin8 resources Resources expended Movement in fund5 Unre5tr1cted funds General fund 931,035 11.033,510} 1102,4751 RestrScted funds Capltal Project I.245,0 115,250} 1,229.750 TOTAL FUNDS 2,176.035 11,048,760) 1,127,275 17. RELATEO PARTY DISCLOSURES There were no related party transactions for the year ended 310ecember 2023. This page does not form part of the statutory financial ststements Page 26