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← The Market Hall Cinema And Arts Trust

2024-06-30-accounts

Charity Commission

Chair’s Annual Report for the period:

01/07/2023 to 30/06/2024

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

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, Trustees were selected from Community Group members who expressed an interest. Subsequent Trustees are proposed, reviewed, and elected by a majority vote of the existing Trustees, subject to a quorum.

Additional Governance

Trustee Training/Induction

All Trustees are expected to engage annually with additional information or specific training to ensure they fully understand their duties and responsibilities. Upon first becoming a Trustee, individuals are provided with the latest documentation from the Charity Commission's website, along with overviews of financial processes, policies, and procedures. New Trustees are also offered peer support from longstanding Trustees. The charity now operates as a standalone organisation.

Organisational Structure

The charity’s organisational structure comprises a Chair and Trustees, who are allocated roles and responsibilities based on the charity's needs and the Trustees' expertise, interests, and wishes. The charity also includes non-voting members and a wider member base that advises on various areas of need, including Health and Safety and Grant Applications.

Risk Management

A major risk is the management of the cinema's revenue base and the potential inability of any parties to continue generating revenue. To mitigate this risk, several personnel have been fully trained and have become competent in multiple tasks, reducing the risk of a single point of failure. This broader skills base will continue to develop in line with the charity’s growth.

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 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 programme 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

Over the period during which the charity has managed this historic venue, The Market Hall has provided substantial film, arts, and cultural opportunities for public benefit. Central to our mission is using the arts as a tool for engagement and participation. By employing these means, we aim to widen access to arts and culture while ensuring an inclusive “access for all” policy, thereby helping to combat social exclusion.

Cultural development is a pivotal tool in enhancing arts activities, particularly considering governmental budget cuts. By leveraging the arts and cultural industries, we strive to uplift the aspirations of not only our participants but also the broader community, thus aiding in the fight against poverty. As articulated in the Welsh Government's 'Culture & Poverty Document 2014,' by identifying access to and participation in the arts, culture, and heritage as an aspect of social justice and a powerful weapon against poverty, the Welsh Government recognises the role of culture in shaping our identity and aspirations (Baroness Kay Andrews OBE).

Our project aims to reinforce and expand the inclusion of cultural activities beyond state parameters within Blaenau Gwent and surrounding areas. By highlighting best practices and seeking positive methods to encourage participation, The Market Hall, as a cultural organisation, is better positioned to collaborate with other sectors in film, the arts, cultural provision, and audience development.

Several studies, including those by Professor Dai Smith, have demonstrated that involvement in the arts significantly bolsters the academic achievements of young people from disadvantaged backgrounds.

Main Activities Undertaken for Public Benefit

The Trustees have adhered to the guidance issued by the Charity Commission on public benefit in relation to these objectives. The summary of the main activities undertaken for the public benefit includes:

Additional details of objectives and activities (Optional)

August saw the 100[th] Anniversary of Disney, and The Market Hall Cinema joined the celebration by screening Disney classics. These included classics such as Bambi, Peter Pan and Jungle Book. All of

the films we screened attracted an intergenerational audience consisting of Great Grandparents, and also new babies. There were so many younger children who had never seen these fantastic animations before. In September we took part in the UK wide National Cinema Day with reduced admissions for every screening. Following an online vote, our film for our fully funded outdoor screening was chosen by our audience. This year’s event was held on a warm late summer evening when around 200 people gathered outside the cinema to watch Back to the Future. We carried out a large online consultation with our customers asking what they would like to see us provide as part of our plan for The Market Hall Arts Hub. The results have given us a focus for our future development. Blaenau Gwent Youth Service joined us at the Cinema following a consultation that took place with the young people of Brynmawr. 32 visitors enjoyed a film with us. Once again, we partnered with the Spectrum Homeless project to collect gift boxes for distribution to homeless people across south Wales. As always, we received a huge number of boxes. February saw us fill our auditorium with an exciting audience who joined us for a special screening of Twin Town, followed by a Q&A session with Director Kevin Allen. This fantastic event helped us to celebrate the 130[th] Birthday of The Market Hall. June saw us for a new partnership with the Southeast Wales Branch of the Motor Neurone Disease Association, who joined with us to raise awareness of the disease through a special film screening at the cinema.

Section D

Achievements and Performance

During the year we have been success in increasing our paid and volunteer workforce. 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 ability, age, gender, or race. Two of the Trust’s volunteers, who are both neuro-divergent have become paid employees at the cinema. Several volunteers have joined us to gain work experience in customer service and have progressed to employment in a variety of other businesses but continue to volunteer with us in their spare time, one as a Cinema Assistant, and one as our highly competent and only Cinema Projectionist. We continue to benefit from a successful Facebook page, that now has over 15000 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 it local” scheme which is crucial to the survival of our town centre.

Section E

Financial Review

Reserves are designated for reinvestment purposes, primarily aimed at the refurbishment of the adjoining building, which will be utilised as a second screen. This additional screen will enable us to

highlight a wider variety of films, including those from independent filmmakers, art house productions, and foreign language films. We endeavour to maintain a contingency fund to ensure the continuation of our activities during any closures, whether enforced or due to adverse weather conditions. Furthermore, reserves will be allocated to develop additional training opportunities for volunteers, including those from minority groups.

The Board of Trustees has conducted a thorough review of its Risk Register to elevate the risk levels in response to the cost-of-living crisis, substandard film production, increasing utility costs, and the rising National Minimum Wage.

Section F

Other optional information

The principal source of funds is the revenue generated from operating the cinema as a commercial enterprise, net of costs. Additionally, the charity receives donations and sponsorships, solicited on both long-term and short-term bases.

Many of the charity's community activities are funded from day-to-day revenue and costs rather than through a specific project budget. This approach, combined with fundraising efforts, ensures that expenditure is aligned with the key objectives of the charity.

The charity's investment policy and objectives, including any adopted ethical investment policy, are designed to support its financial sustainability and ethical standards.

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 2024 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

21 February 2025

Page 1

The Market Hall Cinema And Arts Trust

Statement of Financial Activities for the Year Ended 30 June 2024

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
£
1,130
14,678
178,551
194,359
(177,388)
(43,876)
(221,264)
(26,905)
(26,905)
25,568
(1,337)		 Total
2024
£
1,130
14,678
178,551
194,359
(177,388)
(43,876)
(221,264)
(26,905)
(26,905)
25,568
(1,337)

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 2024

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

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2023 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 2024

2024 2023
Note £ £
Fixed assets
Tangible assets 10 7,382 9,792
Current assets
Stocks 11 3,567 3,423
Debtors 12 849 -
Cash at bank and in hand 13 28,529 52,745
32,945 56,168
Creditors: Amounts falling due within one year 14 (32,096) (25,988)
Net current assets 849 30,180
Total assets less current liabilities 8,231 39,972
Creditors: Amounts falling due after more than one year 15 (9,568) (14,404)
Net (liabilities)/assets (1,337) 25,568
Funds of the charity:
Unrestricted income funds
Unrestricted funds (1,337) 25,568
Total funds 16 (1,337) 25,568

The financial statements on pages 2 to 12 were approved by the trustees, and authorised for issue on 21 February 2025 and signed on their behalf by:

aie ......................................... = Sct i-x =, 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 2024

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 2024

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 2024

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
£
1,130
1,130		 Total
2024
£
1,130
1,130		 Total
2023
£
783
783

Page 7

The Market Hall Cinema And Arts Trust

Notes to the Financial Statements for the Year Ended 30 June 2024

3 Income from charitable activities

Grants received
4
Income from other trading activities
Trading income;
Cinema admission, confectionary sales and
advertising
5
Expenditure on charitable activities
Rates, utilities, repairs and other similar costs
Depreciation, amortisation and other similar costs
Governance costs		 Unrestricted
funds
General
£
14,678
Unrestricted
General
£
178,551
178,551
Unrestricted
funds
General
£
33,467
2,410
7,999
43,876		 Total
2024
£
14,678
Total
2024
£
178,551
178,551
Total
2024
£
33,467
2,410
7,999
43,876		 Total
2023
£
3,882
Total
2023
£
153,781
153,781
Total
2023
£
32,007
2,410
7,180
41,597

Page 8

The Market Hall Cinema And Arts Trust

Notes to the Financial Statements for the Year Ended 30 June 2024

6 Analysis of governance and support costs

Governance costs

Independent examiner fees
Examination of the financial statements
Legal fees		 Unrestricted
funds
General
£
1,825
6,174
7,999		 Total
2024
£
1,825
6,174
7,999		 Total
2023
£
1,275
5,905
7,180

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		 2024
£
78,714		 2023
£
73,568

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 2024

9 Taxation

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

10 Tangible fixed assets

Cost
At 1 July 2023
At 30 June 2024
Depreciation
At 1 July 2023
Charge for the year
At 30 June 2024
Net book value
At 30 June 2024
At 30 June 2023
11 Stock
Stocks
12 Debtors
Prepayments
Other debtors		 Furniture and
equipment
£
16,066
16,066
6,274
2,410
8,684
7,382
9,792
2024
£
3,567		 Furniture and
equipment
£
16,066
16,066
6,274
2,410
8,684
7,382
9,792
2024
£
3,567		 Total
£
16,066
16,066
6,274
2,410
8,684
7,382
9,792
2023
£
3,423
16,066
6,274
2,410
8,684
7,382
9,792
2024
£
3,567
2024
£
784
65
849

Page 10

The Market Hall Cinema And Arts Trust

Notes to the Financial Statements for the Year Ended 30 June 2024

13 Cash and cash equivalents

13 Cash and cash equivalents
Cash on hand
Cash at bank		 2024
£
1,496
27,033
28,529		 2023
£
1,225
51,520
52,745

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
15 Creditors: amounts falling due after one year
Other loans
16 Funds
Balance at 1
July 2023
£
Unrestricted funds
General
25,568
Balance at 1
July 2022
£
Unrestricted funds
General
70,350		 Incoming
resources
£
194,359
Incoming
resources
£
158,446		 2024
£
9,753
4,836
533
7,480
4,619
4,875
-
32,096
2024
£
9,568
Resources
expended
£
(221,264)
Resources
expended
£
(203,228)		 2023
£
8,547
4,836
735
5,803
353
4,884
830
25,988
2023
£
14,404
Balance at 30
June 2024
£
(1,337)
Balance at 30
June 2023
£
25,568

Page 11

The Market Hall Cinema And Arts Trust

Notes to the Financial Statements for the Year Ended 30 June 2024

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
£
7,382
32,945
(32,096)
(9,568)
(1,337)
Unrestricted
funds
General
£
9,792
56,168
(25,988)
(14,404)
25,568		 Total funds at
30 June
2024
£
7,382
32,945
(32,096)
(9,568)
(1,337)
Total funds at
30 June
2023
£
9,792
56,168
(25,988)
(14,404)
25,568

Page 12