2022-08-31-accounts

Registered number: 09514461 Charity number: 1163614

NEVILL HOLT COMMUNITY ARTS LIMITED

(A Company Limited by Guarantee)

GROUP TRUSTEES' REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

CONTENTS

	Page
Reference and Administrative Details of the Company, its Trustees and Advisers	1
Group Trustees' Report	2 – 9
Independent Auditors' Report on the Financial Statements	10 – 13
Consolidated Statement of Financial Activities	14 – 15
Consolidated Balance Sheet	16 – 17
Company Balance Sheet	18
Consolidated Statement of Cash Flows	19
Notes to the Financial Statements	20 - 35

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022

Company registered number

09514461

Charity registered number 1163614 Registered office Nevill Holt Theatre Nevill Holt Market Harborough Leicestershire LE16 8EG

Independent auditors Duncan & Toplis Limited 5 Resolution Close Endeavour Park Boston Lincolnshire PE21 7TT

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NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022

The Trustees present their annual report together with the audited financial statements of the Company for the year 1 September 2021 to 31 August 2022. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of 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 (FRS102) (effective 1 January 2019).

Since the group and the Company qualify as small under section 383 of the Companies Act 2006, the Group Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Objectives and aims

Nevill Holt Community Arts Limited exists to promote the arts and advance education in the arts, through the creation of productions of opera, music, design, theatre and/or related disciplines which are intended to be enlightening and/or of value to the public and the establishment of associated educational programmes.

We monitor our success in a number of ways, including the number of audience members reached, the number of participants in our education and community programmes, feedback from participants who took part in these programmes, and the perceived quality of our performances and events.

b. Significant activities

During the year the Charity received donations from individual donors, corporate supporters and charitable trusts and foundations either directly or collected on its behalf by Nevill Holt Opera. The Charity enabled Nevill Holt Opera Limited to fulfil the Charity's mission of enriching lives and empowering young people through music and the arts via the musical performances which took place both in the theatre and through its programme of education and community work with students across the Midlands.

c. Public benefit

The Charity is a Public Benefit entity. When reviewing the Charity’s objectives and activities, and in planning future activities, the trustees have considered the Charity Commission's general guidance on public benefit.

d. Grant-making policies

During the year the Charity made donations to its wholly owned subsidiary, Nevill Holt Opera Limited, which delivered its charitable objectives on its behalf. All fundraising activities are undertaken by Nevill Holt Opera Limited and incoming resources are consequently held in a restricted reserve by the Charity for use by Nevill Holt Opera Limited.

Achievements and performance

a. Charitable activities

During the year, the Charity delivered its objectives through its wholly owned subsidiary, Nevill Holt Opera Limited (NHO).

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NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Achievements and performance (continued)

NHO Winter Festival 2021

NHO's Winter Weekend in November 2021 featured a concert of Winter Choral Classics with 235 attendees. Handel's Messiah was performed at Nevill Holt Theatre, with 397 attendees and an additional 500 at a performance at The Monastery in Gorton, Manchester.

2022 Summer Opera Festival

The 2022 opera festival took place inside Nevill Holt Theatre with two productions, La bohème and The Barber of Seville.

La bohème

Directed by Mathilda du Tillieul McNicol, with Designer Basia Binkowska and Lighting Designer Jack Knowles. Joined by orchestral partners Manchester Camerata, conducted by NHO Artistic Director Nicholas Chalmers.

The Barber of Seville

Directed by Anna Morrissey and designed by Alex Berry. Conducted by Principal Conductor Dinis Sousa of the Royal Northern Sinfonia.

2022 Summer Concerts

Included performances like "Music for a Royal Jubilee" with the BBC Concert Orchestra and "The Great American Songbook" with Sam Jewison and his all-star big band.

NHO Education and Community Programme

NHO aims to provide access to opera, theatre, and music-making of high standards to young people of all backgrounds.

Programmes include the Italian Songbook schools programme, A Night at the Opera project, in partnership with the Royal Opera House and The Voices Foundation, and the Children's Chorus in La bohème.

Free tickets are provided to under 18's through education partners, and NHO offers artist development programmes for talented opera singers.

Artist Development Programme

NHO's Foundation Artist, Emerging Artist, and Associate Artist programmes support developing artists at different stages of their careers.

These programmes offer training, performances, coaching, workshops, and collaborations with DRET schools. Principal Artists, at early stages in their careers, take on major roles at NHO.

Overall, NHO focuses on nurturing excellence in artists, widening access to music education, and delivering high-quality performances and community engagement.

Financial review

a. Financial position, going concern and risk

The Statement of Financial Activities for the individual charity shows a net surplus of £nil for the year (2021: £nil). All income raised during the year was granted to Nevill Holt Opera Limited, the Charity's wholly owned subsidiary, to deliver the Charity's objectives in the 2022 season.

The Statement of Financial Activities for the Group shows a net deficit of £271,822 (2021: net deficit of £193,392) for the year. This is the deficit incurred by Nevill Holt Opera Limited, of which £130,962 (2021: £134,157) is depreciation in respect of the theatre.

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NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Financial review (continued)

Despite management accounts earlier in the financial year forecasting a healthier financial position, the 2022 year end deficit was larger than Trustees had anticipated due to weaknesses in the financial reporting provided, poorer cost control in the later part of the year and a more challenging sales environment. In addition general ticket sales for the Summer 2023 season by March 2023 were around half of previous years.

As the full picture above became clear, the Trustees reluctantly concluded in March 2023 that, in order to reduce the financial risks faced by the organisation, the 2023 programme should be reduced. Further funds were secured to support the cashflow of the organisation. The Trustees also took professional advice and filed a serious incident report with the Charity Commission detailing the nature and circumstances of their concerns with the financial risks facing the organisation.

At the time of signing this report, the Charity’s most significant risks are:

1. Cashflow funding - Bearing in mind the issues faced in the past and the change in audience behaviours facing all organisations similar to this since COVID-19 there is a risk that insufficient funds are raised to support planned charitable activities resulting in a further deficit in 2023. The Charity had built up a modest reserve to support inevitable peaks and troughs in fundraising and this has proved to be invaluable in supporting activities during the year. Alongside reducing the programme of events for 2023, improving financial reporting and oversight and management of costs in 2023, at the time of signing this report additional financial support has also been secured from the Ross Foundation in the form of a short term loan repayable on the receipt of Theatre Tax Relief due to Nevill Holt Opera Limited. This generous loan facility has allowed the Charity to meet its obligations and provide an opportunity for the Board to plan for the future.

2. That restrictions or audience behaviour relating to the cost of living crisis and other external factors could prevent the Charity from delivering its objectives and may have a significant and negative impact on the Charity’s finances.

The Trustees recognise as many of them have served at least eight-year terms, and some ten, that a governance review and succession planning are required to identify the organisation's future success. The Trustees began succession planning in May 2023 and are working to ensure a future set of trustees and a chair will be suitably equipped to appoint new leadership and management to deliver the exciting future of the festival.

Following the deficit in 2022, cost commitments have been reset and managed against a regular review of income targets. This improved oversight, along with changes in the management team, has enabled the Trustees to make better informed decisions and to take swifter action when managing risk, including the decision to run a simpler and more streamlined 2023 programme by cancelling one opera production where ticket sales hadn't been supported and to sadly significantly reduce ambitions for 10th anniversary celebratory events.

In June 2018 a new permanent theatre opened on the Nevill Holt Estate to house activities of Nevill Holt Opera Limited. The cost of the building was funded by monies from The Ross Foundation. At the time of signing this report the Trustees are discussing a lease and loan agreement with The Ross Foundation.

Thanks in no small part to the support of the Ross Foundation, the Trustees are confident that there are no material uncertainties about the Charity’s ability to continue as a going concern at the statement of financial position date and at the date of signing this report.

b. Reserves policy

The Trustees approve Charity spending and fundraising targets annually to maintain sufficient reserves to meet future expenditure as and when it becomes due. At the year end the Charitable Company held a total of £70,078 (2021 - £70,078) in reserves of which £70,077 (2021 - £70,077) are restricted reserves held for the use of activities by the Nevill Holt Opera Limited.

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NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Financial review (continued)

c. Funds in deficit

At the year end date no funds were in deficit in respect of the Charitable Company.

For the Charitable Group, the unrestricted fund was in deficit by £554,911 (2021: £283,029) as at the year end date. The main contributing factor to this was the cumulative depreciation charge in respect of the theatre, which to date was £550,239 (2021: £419,277).

d. Investments policy and objectives

The only investment is in its wholly-owned subsidiary Nevill Holt Opera Limited. Under the Memorandum and Articles of Association, the Charity has the power to invest in any way the Trustees see fit and opportunities for investment would be subject to risk assessment on a case by case basis. The Trustees have no immediate plans to consider further investments.

e. Principal funding

Fundraising

2021/22 was an extremely challenging time for the performing arts industry in the UK as it sought to recover from the detrimental impact of the Covid pandemic. The Trustees are extremely grateful to every single person, trust, foundation, and organisation whose continued support ensures that Nevill Holt Opera can continue to present performances and run its education and community programmes in the future.

A small number of trusts and foundations were able to support us during the year, as did many generous individuals including our Boheme Production Syndicate supporters.

The principal sources of donations are:

• Voluntary donations from individual supporters (through the Nevill Holt Opera Limited membership scheme, box office donations and major gifts)

• Grants from charitable trusts and foundations

• Statutory grants

• Donations from corporate supporters

• Gift Aid on eligible donations from individuals

• Theatre Tax Relief, a creative industry tax credit

These are either received directly by Nevill Holt Community Arts Limited or collected on its behalf by Nevill Holt Opera Limited.

The Trustees of Nevill Holt Community Arts Limited would like to thank all donors and supporters for helping us to weather the difficult post pandemic period for the benefit of audiences, artists, participants in NHO’s education programmes, and for the local community.

Structure, governance and management

a. Governing document

The Charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006, with no share capital (registration number 09514461).

The Charity was incorporated on 27 March 2015 and commenced its activities on that date and received charity status on 17 September 2015 (registration number 1163614).

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NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2022

Structure, governance and management (continued)

The Memorandum and Articles of Association are the primary governing documents of the Charity.

b. Methods of appointment or election of Trustees

The subscribers to the Memorandum were the Directors of the Company and the first trustees of the Charity. To strengthen the skill set of the Board of Trustees and its independence from the Nevill Holt Opera Limited a further five trustees, who are not Directors of the Company, were appointed.

Any new trustees and directors are appointed following an introductory interview by the existing directors.

c. Organisational structure and decision-making policies

Organisational structure

The Trustees meet sufficiently regularly to make decisions relating to the Charity including approving the remuneration of key personnel. Details of the Trustees are given on page 7.

All Trustees gave of their time freely and they received no remuneration. No personal expense refunds were paid.

The delivery of charitable activities, raising of funds and administration for the Charity is undertaken by its wholly owned subsidiary, Nevill Holt Opera Limited.

Annie Lydford, Managing Director of Nevill Holt Opera Limited, was responsible for the day to day running of all activities during the year to 31 August 2022. Joe O’Neill replaced Annie Lydford as Managing Director of Nevill Holt Opera Limited on 19 September 2022. Joe O'Neill resigned from the position of Managing Director on the 31 March 2023 but has remained in place providing specialist and management support.

The Board of Directors is undergoing an organisational review with the intention of implementing a new management structure from September 2023.

The Board of Directors of both Nevill Holt Opera Limited and Nevill Holt Community Arts Limited approve annual budgets and receive regular updates on performance throughout the reporting year.

The Charity receives donations collected on its behalf by the Nevill Holt Opera Limited. Donations are held in a restricted reserve and are used to fund activities of Nevill Holt Opera which align with the Charity's objectives.

Management

Day to day operations are delegated to the Managing Director, Nevill Holt Opera Limited. Remuneration paid to the Managing Director is as agreed by the Board of Directors.

d. Policies adopted for the induction and training of Trustees

The training and induction provided for new trustees depends on their existing experience. Where necessary, an informal induction tailored to their specific needs including training on charity, legal and financial matters is provided.

e. Related party relationships

The Charity's funds are granted to its subsidiary Nevill Holt Opera Limited which fundraises and delivers the Charity's activities. Nevill Holt Opera Limited transacts with suppliers and customers in the normal course of business. During the year payments were made to and received from organisations of which the trustees of the Charity held positions such as director, trustee, or committee member. Further details are given in the notes to the financial statements.

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NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Structure, governance and management (continued)

f. Reference and administrative details

Registered Company number 09514461 (England and Wales)

Registered Charity number 1163614

Registered office Nevill Holt Theatre Nevill Holt Market Harborough Leicestershire LE16 8EG

Trustees and Directors in post during the year to 31 August 2022 Ms F J H Richards H J Stevenson L T J Morris Simon Rose Trustees (but not appointed as directors) Mrs J M Forman Hardy S G Toyne Mrs S M Wass J D P Dunseath

Senior Statutory Auditor Timothy Godson FCA

Bankers Barclays One Stanhope Gate London SW1A 1NP

Solicitors

Clifford Chance LLP 10 Upper Bank Street London E14 5JJ

Events since the end of the year

Board Changes in Nevill Holt Community Arts Limited:

Two Trustees (L T J Morris and Mrs S M Wass) have stepped down since 31 August 2022.

The Trustees declared the anticipated financial loss in these accounts within a serious incident report to the Charity Commission dated 31 March 2023.

Further information relating to events since the end of the year is given in the notes to the financial statements.

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NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Plans for future periods

The Charity will continue to make grants to Nevill Holt Opera Limited in order to support its charitable objectives and activities. In order to secure the future viability of the Charity and its wholly owned subsidiary, Nevill Holt Opera produced a near sell out single opera in summer 2023, while continuing with a full programme of schools and artistic development programmes as originally planned. It has held an additional fundraising auction to raise funds. The organisation is currently reviewing its strategy for the future by undertaking market research, engaging current and new audiences across the East Midlands with a view to programming a sustainable festival alongside a revitalised education and artistic programme. This will enable future programming decisions to be made with confidence that performances will be supported by audience demand and that the organisation remains financially healthy.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. 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 Group and the Company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles of the Charities SORP (FRS 102);

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the 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 Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

• so far as that Trustee is aware, there is no relevant audit information of which the Charitable Group's auditors are unaware, and

• that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the Charitable Group's auditors are aware of that information.

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NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Approved by order of the members of the board of Trustees on 3 August 2023 and signed on their behalf by:

F J H Richards Trustee

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NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEVILL HOLT COMMUNITY ARTS LIMITED

Opinion

We have audited the financial statements of Nevill Holt Community Arts Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 August 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• except for the specific matter reported on by exception, give a true and fair view of the state of the company's affairs as at 31 August 2022 and of its loss 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 Companies Act 2006.

Basis for opinion

We have reported a matter by exception. Our opinion is not qualified in respect of this matter.

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

Conclusions relating to going concern

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

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

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

Other information

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

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NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEVILL HOLT COMMUNITY ARTS LIMITED (CONTINUED)

that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

• the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

• the Trustees' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In our opinion the charitable company has failed to comply with the Companies Act 2006, section 386, within their duty to keep adequate accounting records. The underlying record keeping was found to be poor and was not updated on a timely basis. This has led to the conclusion that adequate books and records were not maintained during the year or at the year-end date. Since the year end date considerable effort has been made to review the accounting records and to rectify the accounting entries for that year, enabling an unqualified audit opinion to be given. Based on the audit evidence obtained we have assessed that except for the affects of this matter, the financial statements give a true and fair view.

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

• returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors and trustees remuneration specified by law are not made; or

• we have not receieved all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEVILL HOLT COMMUNITY ARTS LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements (continued)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, The Group is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation of tangible fixed assets, as well as the risk of inappropriate journal entries to misclassify restricted income. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates and re-performing the calculation.

Secondly, The Group is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Safeguarding, data protection and the regulatory requirements of the Charity Commission.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of legal fees for any evidence of non-compliance, discussions around whether any incidents occurred in the year and a review of the policies in place. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

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NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEVILL HOLT COMMUNITY ARTS LIMITED (CONTINUED)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Timothy Godson FCA (Senior Statutory Auditor) for and on behalf of

Duncan & Toplis Limited, Statutory Auditor

5 Resolution Close Endeavour Park Boston Lincolnshire PE21 7TT

Date: 4 August 2023

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NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022

Note Income from: Donations and legacies: Trusts and foundations Membership donations Gift aid Ticket donations inc. donations in lieu Other donations Other trading activities: Ticket sales Catering operations Corporate sponsorship Membership income Programme sales Investments: Other income 4 Total income Expenditure on: Charitable activities: Fees - creative, production and artist fees Other activity costs Cost of raising funds

Restricted funds 2022 Unrestricted funds 2022 Total funds 2022 Total funds 2021 £ £ £ £ 5,000 3,000 8,000 141,150 - 82,697 82,697 81,377 - 60,362 60,362 81,401 - 217,340 217,340 173,876 - 15,587 15,587 11,530 - 356,920 356,920 319,452 - 89,614 89,614 34,196 - 1,833 1,833 12,142 - 7,581 7,581 13,805 - 8,052 8,052 9,850 50,000 157,001 207,001 269,132 55,000 999,987 1,054,987 1,147,911 51,000 432,713 483,713 442,953 4,000 580,369 584,369 579,018 - 86,690 86,690 66,487

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NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022

Management and financial support costs Other administrative expenses Theatre building maintenance Depreciation Total expenditure Net expenditure before taxation Taxation Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	- - - -	189,014 83,133 23,148 131,416	189,014 83,133 23,148 131,416	139,994 73,559 5,295 134,157 1,441,463 (293,552) 100,160 (193,392) (19,560) (193,392) (212,952)
	55,000	1,526,483	1,581,483
	- -	(526,496) 254,614	(526,496) 254,614
	-	(271,882)	(271,882)
	70,077 -	(283,029) (271,882)	(212,952) (271,882)
	70,077	(554,911)	(484,834)

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 20 to 35 form part of these financial statements.

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NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 09514461

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2022

Note Fixed assets Tangible assets 8 Current assets Stocks 11 Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets / liabilites Total assets less current liabilities Creditors: amounts falling due after more than one year 14 Net liabilities excluding pension asset Total net assets Charity funds Restricted funds 15 Unrestricted funds 15 Total funds	- 445,559 26,594	2022 £ 6,061,646 6,061,646 2,947 403,742 270,845 677,534 (7,019,289) 124,913 6,186,559 (6,671,393) (484,834) (484,834) 70,077 (554,911) (484,834)	2021 £ 6,128,803 6,128,803 (6,341,755) (212,952) - (212,952) (212,952) 70,077 (283,029) (212,952)
	472,153 (347,240)

Page 16

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 09514461

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2022

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

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

F J H Richards - Trustee

Date: 3 August 2023

The notes on pages 20 to 35 form part of these financial statements.

Page 17

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 09514461

COMPANY BALANCE SHEET AS AT 31 AUGUST 2022

Note Fixed assets Investments 10 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Net assets excluding pension asset Total net assets Charity funds Restricted funds 15 Unrestricted funds 15 Total funds	268,000 169	2022 £ 1 1 65,158 213,825 278,983 (208,906) 70,077 70,078 70,078 70,078 70,077 1 70,078	2021 £ 1 1 70,077 70,078 70,078 70,078 70,077 1 70,078
	268,169 (198,092)

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

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

F J H Richards - Trustee

Date: 3 August 2023

The notes on pages 20 to 35 form part of these financial statements.

Page 18

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022

Note Cash flows from operating activities Net cash used in operating activities 18 Cash flows from investing activities Purchase of tangible fixed assets Net cash used in investing activities Cash flows from financing activities Cash inflows from new borrowing Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 19	2022 £ (262,509)	2021 £ (58,566) (71,994) (71,994) 162,790 162,790 32,230 238,615 270,845
	(64,259)
	(64,259)
	82,517
	82,517
	(244,251) 270,845
	26,594

The notes on pages 20 to 35 form part of these financial statements

Page 19

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1. General information

Nevill Holt Community Arts Limited is a registered charity, limited without shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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.

Nevill Holt Community Arts 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.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

At the statement of financial position date, the Group had net liabilities of £484,834 (2021 - £212,952) and net current assets of £124,913 (2021 - net current liabilities of £6,341,755).

The movement in the position is as a result of the loan owed to The Ross Foundation being reclassified in the current year as a liability falling due in over one year. This reclassification is deemed an appropriate application of the substance over form principal and is supported by written confirmation received from the loan provider, The Ross Foundation, that it will not demand repayment of the loan for a period of at least twelve months from the date of approval of these financial statements. If the loan had been reclassified in the previous year, then at 31 August 2021 the net current assets would have been £177,044.

Fixed assets include the theatre which opened to the public in June 2018. The cost of the build was funded by a loan from The Ross Foundation to Nevill Holt Opera Limited. Nevill Holt Opera Limited has consequently incurred a liability of £6,671,393 at the year end (2021 - £6,588,876).

At the time of signing this report lawyers acting on behalf of the Trustees of The Ross Foundation and the Directors of Nevill Holt Opera Limited are near to finalising a long term loan agreement and terms of lease between the two organisations. The Directors expect to commit to a loan repayment schedule over 50 years which will permit earlier exit after not less than a two year notice period. These clauses are intended to protect the interests of both parties. Assurances have been obtained that in the meantime the loan will not be recalled within twelve months.

This is an extremely difficult period for the arts community which is struggling to make back losses from the disruption of Covid, dealing with record inflation and suffering from lower ticket sales as families struggle with the rising cost of living. The whole sector is facing significant challenges and having to make difficult decisions. Nevill Holt Opera Limited has equally been significantly impacted, particularly as a result of falling audience numbers and later bookings of tickets which has put pressure on cashflow position. As a wholly owned subsidiary of the charity this has impacted on Nevill Holt Community Arts.

Page 20

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

Having reduced and simplified the 2023 programme, the Group is focussed on the sustainability of the organisation and strengthening of the financial position. Recognising the difficult financial position at the end of 2022, in June 2023 Nevill Holt Opera Limited secured further support in the form of a short-term bridging loan from The Ross Foundation to support the cashflow position.

As part of their going concern review the directors and trustees have also undertaken a strategic review of the business and prepared cashflow forecasts. As part of this strategic review, which has delayed the production of these financial statements, the Directors and Trustees continue to review and develop plans for 2024. With the continuing support of The Ross Foundation the Directors and Trustees are confident that the Group can continue to trade and meet its debts as they fall due and conclude that the financial statements should be prepared on a going concern basis. Further information is included in the post balance sheet events note.

2.2 Income

All income is recognised once the Group has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants and donations are included in the Consolidated Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.3 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.4 Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the group will comply with conditions attaching to them and the grants will be received using the accrual model.

Page 21

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

2.5 Taxation

The parent company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the parent company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

The subsidiary undertaking is liable to tax. Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Financial Activities, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date.

Nevill Holt Opera Limited is eligible for Theatre Tax Relief on core production expenditure under the provisions of the Finance Act 2014. Tax credits are recognised when a reliable estimate is available.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition are included in the measurement of cost.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount. When the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the income statement or against any previously recognised revaluation reserves held in relation to the asset.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. .

Depreciation is provided on the following basis:

Long-term leasehold - theatre - 2% on cost Equipment - 10% and 20% on cost

2.7 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Page 22

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

2.9 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Statement of Financial Position date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Group anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.

2.10 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2.11 Operating leases

Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities on a straight line basis over the lease term.

2.12 Pensions

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

Contributions payable to the group's pension scheme are charged to the statement of financial activities in the period to which they relate.

2.13 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

3. Critical accounting estimates and areas of judgement

In the application of the Group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Page 23

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

3. Critical accounting estimates and areas of judgement (continued)

Critical accounting estimates and assumptions:

Depreciation of the Theatre

The Theatre is being depreciated over the life of the lease. This is subject to managements' judgement as the agreement has not been finalised at this stage. The relevant charge to the accounts is reviewed at each year end to ensure that the basis is appropriate and amended where necessary.

4. Other incoming resources

Trusts and foundations Donations from corporate and charitable supporters Other income Co Production Receipt Donations from corporate and charitable supporters Other income Public body grants (COVID) Other income Arts Council England grants	Restricted funds 2022 £ - - - 50,000	Unrestricted funds 2022 £ 80,000 61,900 15,101 -	Total funds 2022 £ 80,000 61,900 15,101 50,000 207,001 Total funds 2021 £ 100,000 43,750 26,143 14,239 85,000 269,132
	50,000	157,001
	Restricted funds 2021 £ - - - 1,000 85,000	Unrestricted funds 2021 £ 100,000 43,750 26,143 13,239 -
	86,000	183,132

Page 24

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

5. Auditors' remuneration

Fees payable to the Group's auditor for the audit of the Group's annual accounts Fees payable to the Group's auditor in respect of: All non-audit services not included above	2022 £ 13,500 22,758	2021 £ 12,000 11,554

6. Staff costs

Wages and salaries Social security costs Contribution to defined contribution pension schemes	Group 2022 £ 113,246 6,300 9,101	Group 2021 £ 72,500 3,410 5,885
	128,647	81,795

All contributions to defined contribution pension schemes are allocated to unrestricted funds.

The average number of persons employed by the Company during the year was as follows:

Management	Group 2022 No. 4	Group 2021 No. 2

No employee received remuneration amounting to more than £60,000 in either year.

The total employee benefits paid to key management personnel were £61,998 (2020 - £58,300).

7. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).

During the year ended 31 August 2022, no expenses totalling were reimbursed or paid directly to any of the Trustees (2021 - £608). Expenses reimbursed in the prior year were for the purchase of items required for the festival.

Page 25

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

8. Tangible fixed assets Group and Company

Cost or valuation At 1 September 2021 Additions At 31 August 2022 Depreciation At 1 September 2021 Charge for the year At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021 Tangible fixed assets relate to the subsidiary company only.	Long-term leasehold property £ 6,548,079 42,456	Plant and machinery £ 23,096 21,803	Total £ 6,571,175 64,259 6,635,434 442,372 131,416 573,788 6,061,646 6,128,803
	6,590,535	44,899
	419,277 130,962	23,095 454
	550,239	23,549
	6,040,296	21,350
	6,128,802	1

9. Taxation

Nevill Holt Community Arts Limited is a company limited by guarantee and is a registered charity. As such it is eligible for the relief applicable to charities.

Nevill Holt Opera Limited is a trading subsidiary and is eligible to claim Theatre Tax Relief under the provisions of the Finance Act 2014 in respect of core expenditure on productions.

Page 26

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

10. Fixed asset investments

Company Cost or valuation At 1 September 2021 At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021	Investments in subsidiary companies £ 1 1 1 1

Principal subsidiaries

The following was a subsidiary undertaking of the Company:

Name		Company	Registered office or principal	Principal activity
		number	place of business
Nevill Holt	Opera Limited	08351346	Nevill Holt Theatre, Nevill Holt,	Musical/operatic
			Leicestershire, LE16 8EG	performances
Class of	Holding	Included in
shares		consolidation
Ordinary	100%	Yes

The financial results of the subsidiary for the year were:

Name	Income	Expenditure	Profit/(Loss)	Net assets
	£	£	/ for the	£
			year
			£
Nevill Holt Opera Limited	1,054,987	1,581,483	(526,496)	(554,911)

Page 27

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

11. Stocks

Finished goods and goods for resale Debtors Due within one year Trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income Tax recoverable	Group 2022 £ 12,874 - 70,834 120,078 241,773	Group 2021 £ 78,342 - 107,826 115,179 102,395	Group 2022 £ -	Group 2021 £ 2,947
			Company 2022 £ - 267,000 1,000 - -	Company 2021 £ - 41,000 24,158 - -
	445,559	403,742	268,000	65,158

12. Debtors

Page 28

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

13. Creditors: Amounts falling due within one year

Group 2022 £ Other loans - Trade creditors 211,154 Amounts owed to group undertakings - Other taxation and social security 2,817 Other creditors 27,387 Accruals and deferred income 105,882 347,240 Creditors: Amounts falling due after more than one year Other loans	Group 2022 £ - 211,154 - 2,817 27,387 105,882	Group 2021 £ 6,588,876 258,160 - 5,236 29,730 137,287	Company 2022 £ - - 198,092 - - -	Company 2021 £ - - 208,906 - - -	Company 2021 £ - - 208,906 - - -
	347,240	7,019,289	198,092		208,906
			Group 2022 £ 6,671,393		Group 2021 £ _- _

14. Creditors: Amounts falling due after more than one year

Other creditors include a loan from The Ross Foundation of £6,671,393 which funded the building of the theatre.

The loan balance has been reclassified at the year end date as due after more than one year. Further details are given in note 2 in the paragraph 'basis of preparing the financial statements'.

Page 29

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

15. Statement of funds

Statement of funds - current year Balance at 1 September 2021 £ Unrestricted funds General fund (283,029) Restricted funds Restricted fund 70,077 Total of funds (212,952) Statement of funds - prior year Balance at 1 September 2020 £ Unrestricted funds General fund (89,637) Restricted funds Restricted fund 70,077 Total of funds (19,560)	Statement of funds - current year Balance at 1 September 2021 £ Unrestricted funds General fund (283,029) Restricted funds Restricted fund 70,077 Total of funds (212,952) Statement of funds - prior year Balance at 1 September 2020 £ Unrestricted funds General fund (89,637) Restricted funds Restricted fund 70,077 Total of funds (19,560)	Income £ 999,987	Expenditure £ (1,526,483)	Taxation £ 254,614	Balance at 31 August 2022 £ (554,911)
	70,077	55,000	(55,000)	-	70,077
	(212,952)	1,054,987	(1,581,483)	254,614	(484,834)
		Income £ 1,048,821	Expenditure £ (1,342,373)	Taxation £ 100,160	Balance at 31 August 2021 £ (283,029)
	70,077	99,090	(99,090)	-	70,077
	(19,560)	1,147,911	(1,441,463)	100,160	(212,952)

Page 30

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

16. Summary of funds

Summary of funds - current year

Balance at 1 September 2021 £ General funds (283,029) Restricted funds 70,077 (212,952) Summary of funds - prior year Balance at 1 September 2020 £ General funds (89,637) Restricted funds 70,077 (19,560)	Balance at 1 September 2021 £ (283,029) 70,077	Income £ 999,987 55,000	Expenditure £ (1,526,483) (55,000)	Taxation £ 254,614 -	Balance at 31 August 2022 £ (554,911) 70,077 (484,834) Balance at 31 August 2021 £ (283,029) 70,077 (212,952)
	(212,952)	1,054,987	(1,581,483)	254,614
		Income £ 1,048,821 99,090	Expenditure £ (1,342,373) (99,090)	Taxation £ 100,160 -
	(19,560)	1,147,911	(1,441,463)	100,160

The restricted fund comprises donations received which are only to be used to support the activities of Nevill Holt Opera Limited. The fund includes grants or areas of income for which a specific purpose has been outlined by the body or individual making the grant or donation. For example, a grant may be made specifically to support Nevill Holt Opera Limited's community and education programme, or towards its young artist scheme.

17. Analysis of net assets between funds

Analysis of net assets between funds - current year

Analysis of net assets between funds - current year
Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Total	Restricted funds 2022 £ - 70,077 - -	Unrestricted funds 2022 £ 6,061,646 402,076 (347,240) (6,671,393)	Total funds 2022 £ 6,061,646 472,153 (347,240) (6,671,393) (484,834)
	70,077	(554,911)

Page 31

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

17. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Restricted funds 2021 Unrestricted funds 2021 £ £ Tangible fixed assets - 6,128,803 Current assets 70,077 607,457 Creditors due within one year - (7,019,289) Total 70,077 (283,029) 18. Reconciliation of net movement in funds to net cash flow from operating activities Group 2022 £ Net expenditure for the year (as per Statement of Financial Activities) (271,882) Adjustments for: Depreciation charges 131,416 Decrease/(increase) in stocks 2,947 Increase in debtors (41,817) Increase/(decrease) in creditors (83,173) Net cash used in operating activities (262,509) 19. Analysis of cash and cash equivalents Group 2022 £ Cash in hand 26,594 Total cash and cash equivalents 26,594	Restricted funds 2021 £ - 70,077 -	Unrestricted funds 2021 £ 6,128,803 607,457 (7,019,289)	Total funds 2021 £ 6,128,803 677,534 (7,019,289) (212,952) Group 2021 £ (193,392) 134,157 (2,947) (117,634) 121,250 (58,566) Group 2021 £ 270,845 270,845
	70,077	(283,029)
		(262,509)
		Group 2022 £ 26,594
		26,594

Page 32

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

20. Analysis of changes in net debt

Cash at bank and in hand Debt due within 1 year Debt due after 1 year	At 1 September 2021 £ 270,845 (6,588,876) -	Cash flows £ (244,251) (82,517) -	Other non-cash changes £ - 6,671,393 (6,671,393)	At 31 August 2022 £ 26,594 - (6,671,393)
	(6,318,031)	(326,768)	-	(6,644,799)

21. Operating lease commitments

At 31 August 2022 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year Later than 1 year and not later than 5 years	Group 2022 £ 684 1,880	Group 2021 £ 684 2,564
	2,564	3,248

The following lease payments have been recognised as an expense in the Statement of Financial Activities:

Operating lease rentals	Group 2022 £ 684	Group 2021 £ 385
	684	385

Page 33

NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

22. Related party transactions

The Directors and Trustees of the Charitable Company and the Directors of its subsidiary do not receive fees or salaries for the performance of their Director/Trustee roles. Nor do they claim for refunds of associated personal expenses.

Financial Statements of both Nevill Holt Opera Limited and Nevill Holt Community Arts Limited include immaterial transactions with members of both boards which arose during the normal course of business: no discounts on purchases of event tickets or goods are received by virtue of their position on the Board.

The financial statements include the following receivable grants and donations given without conditions and are disclosed in accordance with SORP (FRS 102 revised) requirements:

-Donations without conditions receivable from the Trustees of Nevill Holt Community Arts Limited, the Directors of Nevill Holt Opera Limited and related parties totalled £111,987 (2021 - £119,060). This includes a grant of £80,000 from The Ross Foundation (2021 - £100,000).

-Nevill Holt Opera Limited incurred £39,005 (2021 - £38,706) to acquire insurance (on normal commercial terms) brokered through Locktons of which one of the Directors of Nevill Holt Opera Limited is a Partner.

-Nevill Holt Opera Limited incurred £2,208 (2021 - £2,240) in accommodation costs (on normal commercial terms) through Subtle Productions Limited of which one of the Directors of Nevill Holt Opera Limited is a Director.

-Amounts due to Nevill Holt Community Arts Limited from related parties at the year end totalled £1,000 (2021 - £nil).

-Amounts due from Nevill Holt Opera Limited to related parties at the year end totalled £6,671,393 (2021 - £6,599,063).

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NEVILL HOLT COMMUNITY ARTS LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

23. Post balance sheet events

Following the period covered by these financial statements there have been some changes to the Board of the Charity and its wholly owned subsidiary. Three directors of Nevill Holt Opera Limited and two trustees of Nevill Holt Community Arts Limited have stepped down and one director of Nevill Holt Opera Limited has been appointed.

A new Managing Director of Nevill Holt Opera was appointed in September 2022, who has since resigned from the post but is continuing to support the company in the interim period.

In March 2023 Nicholas Chalmers stepped down as Artistic Director.

On 31 March 2023 the Trustees disclosed an anticipated significant financial loss within a serious incident report filed with the Charity Commission.

In June 2023 financial support was secured from the Ross Foundation in the form of a short-term loan repayable on the receipt of Theatre Tax Relief due to Nevill Holt Opera Limited. This loan facility will allow the Group to meet its immediate obligations. The loan is secured by charges over the bank accounts of both Nevill Holt Opera Limited and Nevill Holt Community Arts Limited.

Nevill Holt Opera Limited was very grateful to receive continued support from The Ross Foundation, as well as from other trusts and foundations and individual supporters.

Nevill Holt Opera Limited is in the process of reviewing the activities for the 2024 season and the future of the opera in order to reduce exposure to future losses and improve cashflows.

Page 35