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2023-06-30-accounts

Charity Commission

Chair’s Annual Report for the period:

01/07/2022 to 30/06/2023

Section A

Reference and Administration

Charity name – The Market Hall Cinema and Arts Trust

Other names the charity is known by – N/A

Registered Charity Number – 1167284

Charity’s Principal Address –

The Market Hall Cinema,

Market Square

Brynmawr

Blaenau Gwent

Postcode – NP23 4AJ

Name of person (or body) entitled to appoint Trustee (if any)

Names of the charity Trustees who manage the charity –

Beth Watkins – Chair

Lorraine Powell – Secretary

Andrea Durban – Treasurer

Brent Durban – Business Support

Ian Cowley – Business Support

Daniel Perkins – Legal

Eifion Davies – Welsh Language/Heritage

Julian Gardener – Culture and Arts Advisor

Natasha Price – Partnerships and Funding

Keith Ansell – Business risk assessment

Section B

Structure, governance and management

Type of governing document - CIO Foundation

How the charity is constituted - Trust CIO

Trustee selection methods

Initially selected from Community Group members (those that wished to be selected), subsequent Trustees are proposed, reviewed and elected by (e.g. appointed by, elected by…) majority voting of the other Trustees (subject to a quorum).

Additional governance issues (Optional)

Trustee training/Induction

All Trustees on an annual basis are expected to engage with additional information or specific training to ensure they fully understand their duties and responsibilities as Trustees. On first becoming a Trustee individuals are provided with all the latest documentation from www.gov.uk/government/organisations/charity-commission and overviews and financial processes. Policies and procedures. New Trustees are offered peer support from longstanding Trustees. The charity at the present moment is a standalone organisation.

Organisational Structure - consists of A Chair and Trustees who are allocated roles and responsibilities subject to the charity's organisational needs, the Trustees expertise, interests and wishes. The charity also has a non-voting member structure and a wider member base that advises on areas of particular need at any point in time, including Health and Safety, Grant Applications.

Risk

A major risk is the management of the cinema's revenue base and any parties’ inability to continue to generate revenue. A number of personnel have been fully trained and have become competent in multiple tasks so as to spread the risk of a single point of failure. This wider skills base will continue to develop in line with the charity’s development.

Section C

Objectives and activities

Summary of the objects of the charity set out in its governing document

The charitable intent and aspirations of the Market Hall project were, from the outset based on all financial resources being utilised to reasonably advance the cultural objectives of the Trustees and staff and volunteers. The community group taking acquisition of the historic cinema/theatre as an asset from the local authority allowed immediate program redevelopment and cultural objectives being put in place for public benefit. The intention was to build a financially strong business model based around an income generating cinema that would 'subsidise' and co-fund community arts and cultural projects/provision as well as developing social inclusion/cohesion through the art form of

film itself and the cinema’s delivery to the local populace. The overall plan was that the cinema could trading arm for the community group to achieve it’s cultural, artistic and charitable goals, working in conjunction with partner organisations, the Market Hall Community Group and other charities/organisations and individuals were to deliver projects and events both charged and free at the point of entry for the general public. Charitable objects/goals are as follows:

Goals

Film & Cultural Provision For Public Benefit

The Market Hall has provided substantial Film, Arts & Cultural opportunities for public benefit, over the period during which the Charity has run the historical venue. Using the arts as a tool of engagement and participation are key values that the Market Hall aspires to achieve. Utilising these as a means of widening access to the arts and culture is essential, while ensuring a practical “access for all” delivery policy is achieved, thus helping to aid the breakdown of social exclusion. Cultural development is a key tool in heightening arts activity in light of Governmental cuts, aiming to help fight poverty in the area by using the arts and cultural industries to raise the aspirations of not only the participants themselves, but also the local populace as a whole. As stated in the Welsh Governments 'Culture & Poverty Document 2014 'By identifying access to and participation in the arts, culture and heritage as an aspect of social justice itself and a powerful weapon against poverty, in all its manifest forms, the Welsh Government has made it clear that it understands the role played by culture in making us the sort of people we are and the people we want to be' Baroness kay Andrews OBE

The project seeks to reinforce and bridge the inclusion of cultural activity outside the states parameters within Blaenau Gwent and the surrounding areas, highlighting good practice and looking for positive ways in which to encourage participation. Thus enabling The Market Hall as a Cultural Organisation to work more collaboratively with other sectors both within film, the arts, cultural provision and audience development. 'Several studies found that arts involvement helped to bolster the academic achievement levels of young people from disadvantaged backgrounds' Professor Dai Smith

Summary of the main activities undertaken for the public benefit in relation to these objects (include within this section the statutory declaration that Trustees have had regard to the guidance issued by the Charity Commission on public benefit)

July brought us the opportunity to celebrate 10 years since the 2012 Olympics in London. We celebrated with a screening of the opening ceremony to raise funds for the Tessa Jowell Foundation. Danny Boyle’s ceremony rekindled the community excitement of local people carrying the Olympic Torch through our town.

September 2022 saw our first Open Air Screening since the Covid 19 pandemic. People gathered outside the cinema very early in the evening and we were all so motivated to see so many families gathering once again to introduce their children to the pleasure of watching a film outdoors. This years screening was Grease, where we saw children and parents dancing. It was such an uplifting experience for our customers and the cinema team. September also allowed us to celebrate National Cinema Day along with many other independent cinemas.

In November 2022, we were lucky to be chosen to host the International Film Festival of Wales March 2023 saw us host the tour of the Cardiff Animation Festival. We were joined by animation fans and students who gather to watch a selection of nine award-winning animated short films. The event was inspirational and introduced many cinema goers to the world of animation for the first time. It provided students in Wales with the opportunity view their work on the big screen, in an iconic cinema. In November, we were successful in recruiting a full-time manager to The Market Hall Cinema.

In April 2023 we were proud to host the Final Episodes of The Vale, comedy animation series. This sold-out event was attended by fans from across the UK who travelled to watch the final episodes of the animated comedy set South Wales valleys town, Ebbw Vale. Following the life of anime obsessed teenager, Tony and his overbearing, white van driving, lager consuming stepfather Beaton. The Market Hall Cinema was chosen as the venue by the team of local animators who have embraced the world of social media as a way of showcasing their work which has now achieved cult status. We were also in the fortunate position to advertise for additional volunteers. We were very successful and were able to recruit many new volunteers to our team. The cinema team remains a very diverse team where we welcome individual who are neurodivergent. We were proud to partner with Louby Lou’s Storytelling and St Mary’s Church in Wales Primary School to provide them with the opportunity to watch their own film creations on the big screen, as part of Lead Creative Schools,

Additional details of objectives and activities (Optional)

Section D

Achievements and Performance

During the year we have been success in increasing our paid and volunteer workforce. This has included a full-time manager, and two Welsh Government funded Kick Start employees along with several new volunteers. One of the Kick Start employees has been a volunteer for a while, so we were pleased to be able to help him to develop further. We have also been successful in recruiting two new experienced Trustees to our Board. Our volunteer programme continues to provide opportunities to volunteers from our community. Our commitment to inclusivity allows us to provide opportunities to both neuro-typical and neuro-divergent individuals regardless of age or gender or race. We continue to benefit from a very successful Facebook page, that now has over 14000 followers who continue to engage with us regularly. Our social media followers are honest and always happy to offer suggestions of how we can improve. Our page also gives us the opportunity to consult regularly with local people.

Financially, we have reviewed the way the cinema operates to ensure that we are operating in a sustainable way. Cinema finances are constantly under review and our risk registers are continuously reviewed. We continue to develop partnerships with new organisations and maintain long lasting relationships with community food banks and homeless charities. We are also developing strong partnerships with local business, helping to promote the “keep in local” scheme which is crucial to the survival of our town centre.

Section E

Financial Review

Reserves are predominantly for reinvestment purposes, primarily into the refurbishment of the adjoining building which will be used as a second screen. This second screen will enable us to show

a wider variety of film including that from independent film makers, art house and foreign language films. We endeavour to maintain a contingency fund which will ensure continuance of the activities during any closure (enforced or weather related). Reserves will also be used to develop further training opportunities for volunteers including those from minority groups. The board of Trustees has reviewed its Risk Register to increase the risk levels due to the cost-of-living crisis, poor film product, increasing utility costs and increases in National Minimum Wage.

Section F

Other optional information

Principal source of funds are the revenue from running the cinema as a commercial operation, less costs etc., in addition donations and additional information, where sponsorships are solicited both on long term and short term basis. relevant about:

Many of the charity's community activities are funded out of the day to sources of funds (including day revenue and costs rather than a specific project budget. any fundraising); how expenditure has supported the key objectives of the charity; investment policy and objectives including any ethical investment policy adopted.

Section G

Declaration The trustees declare that they have approved the trustees' report above.

Signed on behalf of the charity's trustees

Signature(s)

Beth Watkins – Chair

The Market Hall Cinema And Arts Trust

Independent Examiner's Report to the trustees of The Market Hall Cinema And Arts Trust

I report to the charity trustees on my examination of the accounts of the charity for the year ended 30 June 2023 which are set out on pages 2 to 12.

Responsibilities and basis of report

As the charity trustees of The Market Hall Cinema And Arts Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the The Market Hall Cinema And Arts Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of The Market Hall Cinema And Arts Trust as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

...................................... Mr Andrew Hill FCCA ACA DChA BFP

Severn House Hazell Drive Newport NP10 8FY

8 March 2024

Page 1

The Market Hall Cinema And Arts Trust

Statement of Financial Activities for the Year Ended 30 June 2023

Note
Income and Endowments from:
Donations and legacies
Charitable activities
Other trading activities
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
16		 Unrestricted
funds
£
783
3,882
153,781
158,446
(161,631)
(41,597)
(203,228)
(44,782)
(44,782)
70,350
25,568		 Total
2023
£
783
3,882
153,781
158,446
(161,631)
(41,597)
(203,228)
(44,782)
(44,782)
70,350
25,568

The notes on pages 5 to 12 form an integral part of these financial statements. Page 2

The Market Hall Cinema And Arts Trust

Statement of Financial Activities for the Year Ended 30 June 2023

Note
Income and Endowments from:
Donations and legacies
Charitable activities
Other trading activities
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
16		 Unrestricted
funds
£
1,003
32,684
145,397
179,084
(138,594)
(28,190)
(166,784)
12,300
12,300
58,050
70,350		 Total
2022
£
1,003
32,684
145,397
179,084
(138,594)
(28,190)
(166,784)
12,300
12,300
58,050
70,350

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 16.

The notes on pages 5 to 12 form an integral part of these financial statements. Page 3

The Market Hall Cinema And Arts Trust

(Registration number: 1167284) Balance Sheet as at 30 June 2023

Note
Fixed assets
Tangible assets
10
Current assets
Stocks
11
Debtors
12
Cash at bank and in hand
13
Creditors: Amounts falling due within one year
14
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
15
Net assets
Funds of the charity:
Unrestricted income funds
Unrestricted funds
Total funds
16		 2023
£
9,792
3,423
-
52,745
56,168
(25,988)
30,180
39,972
(14,404)
25,568
25,568
25,568		 2022
£
12,202
2,294
107
104,831
107,232
(29,844)
77,388
89,590
(19,240)
70,350
70,350
70,350

The financial statements on pages 2 to 12 were approved by the trustees, and authorised for issue on 8 March 2024 and signed on their behalf by:

......................................... Beth Watkins Chairman and trustee

The notes on pages 5 to 12 form an integral part of these financial statements. Page 4

The Market Hall Cinema And Arts Trust

Notes to the Financial Statements for the Year Ended 30 June 2023

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

The Market Hall Cinema And Arts Trust 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 notes.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Donations and legacies

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.

Deferred income

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:

Other trading activities

Income arising from cinema trading activities is recognised, net of VAT, upon receipt.

Page 5

The Market Hall Cinema And Arts Trust

Notes to the Financial Statements for the Year Ended 30 June 2023

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Taxation

The charity 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 charity 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.

Tangible fixed assets

Individual fixed assets costing £500.00 or more are initially recorded at cost.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate Fixtures and fittings 15% Straight line

Stock

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).

Page 6

The Market Hall Cinema And Arts Trust

Notes to the Financial Statements for the Year Ended 30 June 2023

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

2 Income from donations and legacies

Donations and legacies;
Donations from individuals		 Unrestricted
General
£
783
783		 Total
2023
£
783
783		 Total
2022
£
1,003
1,003

Page 7

The Market Hall Cinema And Arts Trust

Notes to the Financial Statements for the Year Ended 30 June 2023

3 Income from charitable activities

Covid-19 Grant & CJRS Income
4
Income from other trading activities
Trading income;
Cinema admission, confectionary sales and
advertising
5
Expenditure on charitable activities
Depreciation, amortisation and other similar costs
Governance costs		 Unrestricted
General
£
3,882
Unrestricted
General
£
153,781
153,781
Unrestricted
funds
General
£
32,007
2,410
7,180
41,597		 Total
2023
£
3,882
Total
2023
£
153,781
153,781
Total
2023
£
32,007
2,410
7,180
41,597		 Total
2022
£
32,684
Total
2022
£
145,397
145,397
Total
2022
£
26,365
2,410
(585)
28,190

Page 8

The Market Hall Cinema And Arts Trust

Notes to the Financial Statements for the Year Ended 30 June 2023

6 Analysis of governance and support costs

Governance costs

Independent examiner fees
Examination of the financial statements
Legal fees		 Unrestricted
funds
General
£
1,275
5,905
7,180		 Total
2023
£
1,275
5,905
7,180		 Total
2022
£
1,685
(2,270)
(585)

7 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

8 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries		 2023
£
73,568		 2022
£
56,768

No employee received emoluments of more than £60,000 during the year

Page 9

The Market Hall Cinema And Arts Trust

Notes to the Financial Statements for the Year Ended 30 June 2023

9 Taxation

The charity is a registered charity and is therefore exempt from taxation.

10 Tangible fixed assets

10 Tangible fixed assets
Cost
At 1 July 2022
At 30 June 2023
Depreciation
At 1 July 2022
Charge for the year
At 30 June 2023
Net book value
At 30 June 2023
At 30 June 2022
11 Stock
Stocks
12 Debtors
Other debtors		 Furniture and
equipment
£
16,066
16,066
3,864
2,410
6,274
9,792
12,202
2023
£
3,423
2023
£
-		 Total
£
16,066
16,066
3,864
2,410
6,274
9,792
12,202
2022
£
2,294
16,066
3,864
2,410
6,274
9,792
12,202
2023
£
3,423
2023
£
-
2022
£
107

Page 10

The Market Hall Cinema And Arts Trust

Notes to the Financial Statements for the Year Ended 30 June 2023

13 Cash and cash equivalents

13 Cash and cash equivalents
Cash on hand
Cash at bank		 2023
£
1,225
51,520
52,745		 2022
£
1,351
103,480
104,831

14 Creditors: amounts falling due within one year

Trade creditors
Other loans
Other taxation and social security
VAT grant repayable
Other creditors
Accruals
Deferred income		 2023
£
8,547
4,836
735
5,803
353
4,884
830
25,988		 2022
£
6,128
4,836
-
1,495
-
9,130
8,255
29,844

15 Creditors: amounts falling due after one year

Other loans
16 Funds
Unrestricted funds
General
Unrestricted funds
General		 Balance at 1
July 2022
£
70,350
Balance at 1
July 2021
£
58,050		 Incoming
resources
£
158,446
Incoming
resources
£
179,084		 2023
£
14,404
Resources
expended
£
(203,228)
Resources
expended
£
(166,784)		 2022
£
19,240
Balance at 30
June 2023
£
25,568
Balance at 30
June 2022
£
70,350

Page 11

The Market Hall Cinema And Arts Trust

Notes to the Financial Statements for the Year Ended 30 June 2023

17 Analysis of net assets between funds

17 Analysis of net assets between funds
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets		 Unrestricted
funds
General
£
9,792
56,168
(25,988)
(14,404)
25,568
Unrestricted
funds
General
£
12,202
107,232
(29,844)
(19,240)
70,350		 Total funds at
30 June
2023
£
9,792
56,168
(25,988)
(14,404)
25,568
Total funds at
30 June
2022
£
12,202
107,232
(29,844)
(19,240)
70,350

Page 12