Charity registration number: 1183251
The Factory of Creativity
Consolidated Annual Report
Year Ended 31 March 2026
The Factory of Creativity
Contents (continued)
| Trustees' Report | 1 to 10 |
|---|---|
| Independent Auditors' Report | 11 to 13 |
| Consolidated Statement of Financial Activities | 14 |
| Statement of Financial Activities | 15 |
| Consolidated Balance Sheet | 16 |
| Consolidated Statement of Cash Flows | 17 |
| Notes to the Financial Statements | 18 to 33 |
The Factory of Creativity
Trustees' Report
Reference and Administrative Details
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS102) in preparing the annual report and financial statements of the charity.
Charity registration number : 1183251 Registered Office : Hope Mill Theatre Hope Mill 113 Pollard Street Manchester M4 7JA Trustees: E Meyler D E Bassett (appointed 20 February 2026) I Tabbron (appointed 19 July 2025) P R Wakefield (appointed 7 April 2026) D Carr (resigned 19 July 2025) M R Dubois D Treacy R Miller T Kent (resigned 19 July 2025) D J Olsen (appointed 19 July 2025) P Rowlett (appointed 26 September 2025) N Brown J McCarthy T Chevis G Mandy Independent Examiner: Hawsons Chartered Accountants Statutory Auditor Pegasus House 463a Glossop Road Sheffield South Yorkshire S10 2QD Bankers : The Cooperative Business Banking 1 Balloon Street Manchester M60 4EP Executive Director: W Whelton
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The Factory of Creativity
Trustees' Report (continued)
The Board of Trustees, present their report and the consolidated group financial statements of The Factory of Creativity and its 100% owned subsidiaries FOC Trading Limited and Bolton Troy UK Limited, for the year ended 31 March 2026.
Message from the Founders
Ten years ago, when we first found the empty mill space on Gumtree, we knew what we were looking for. We wanted to create Manchester’s home for musical theatre - a place that would draw people to see amazing work, and where the next generation of northern talent would be inspired, where new ideas and voices could thrive.
The old storage space at Hope Mill was perhaps not an obvious start. But our small savings, a £10,000 start-up loan, and a lot of hard graft saw the doors open on Hope Mill Theatre in October 2015. We are still bowled over by Manchester’s immediate response. Our first full-scale production, Jason Robert Brown’s Parade (nothing if not dark, a tale of mob mentality) sold out: we extended the run.
Today, this small theatre belongs to thousands of people. It produces new work of national significance, in a space where artists can take risks, audiences can feel something real, and creativity can flourish.
As professional musical theatre artists - both northern-born, both having moved to London to train and build careers - we wanted to provide space, support and opportunity in Manchester for the next generation of talent. We launched Powerhouse Plays to support emerging writers. We created the Turn On Fest development programme for queer artists. We supported countless work placements and residencies, connecting aspiring artists with Hope Mill’s fast-growing networks, across the industry.
Ten years on, 2025 has seen the first students enrol on Hope Mill Theatre’s accredited BA degree in Musical Theatre. Here they will train, learn and enrich our creative projects. They will bring their distinctive talents to an industry that reflects the world back to us in all its colour, joy, darkness and difficulty.
When we first met local schoolchildren in their classrooms, they told us they had never seen a live theatre show. They liked singing, dancing. They rarely got to share this kind of fun, together. We created First Curtain, to make sure children could come and see their first live show at Hope Mill, free of charge. We started Hope Mill Theatre School, so that these young people could discover and enjoy their many talents.
Today, students who first joined theatre school on free bursaries are training in some of the country’s leading performing arts schools. They have taken the stage at Manchester Opera House in professional performances, alongside the likes of Jodie Prenger, Tom Lister and Grace Mouat. They are proud of what they are achieving at Hope Mill Theatre - and we are proud of them.
There have been moments when keeping Hope Mill Theatre alive felt almost impossible. The challenges of the pandemic, the fast-shifting landscape of arts funding, the ever increasing costs of producing and presenting high-quality work - these have all brought extraordinary pressures. And still, our theatre has continued to grow.
We are hugely grateful to the talented artists, performers and creative professionals, the wonderful audiences, and the courageous and ambitious children and young people who have made Hope Mill Theatre what it is today. We are proud that Hope Mill has become a place people care about, deeply. A theatre that belongs to its audiences, artists and communities - and, we hope, a beautiful citizen of Manchester.
William Whelton and Joseph Houston
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The Factory of Creativity
Trustees' Report (continued)
Objectives And Activities
Objectives and aims
The Factory of Creativity (known as Hope Mill Theatre) exists to inspire, enrich and transform lives through the performing arts - offering a safe, inclusive space where audiences, artists and communities connect, and where creativity can flourish. We aim to create new work of world-class quality; to carve inclusive, accessible career pathways for the next generation of diverse northern talent; and to reach and inspire people who have little or no access to theatre, with a particular focus on young people.
Musical theatre is at the heart of our work. Nationally recognised as “a powerhouse home for musicals” (The Stage), HMT develops and stages original productions and, in just ten years, has become one of England’s most respected independent venues. Alongside our own productions, we provide a vital platform for smaller companies, creating space for bold ideas, emerging skills and new voices to thrive.
We serve a broad, far-reaching community, from across GM and beyond. Two groups are central to our mission:
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Greater Manchester’s LGBTQ+ community, which has long found a creative home at Hope Mill - as audiences, performers, artists and makers. We offer a high-profile showcase for LGBTQIA+ talent, providing a vital bridge between the region’s grassroots, fringe spaces (pubs, clubs etc.) and its larger stages.
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Our neighbouring communities in Miles Platting & Newton Heath, Ancoats & Beswick, areas that have historically been underserved by the arts. As the only cultural venue in this locality, HMT provides a much-needed, safe and welcoming cultural space where local people can enjoy creative activities and feel part of a community.
Trustees remain committed to advancing equality, diversity and inclusion across governance, workforce, programming and audiences.
The trustees have referred to the Charity Commission’s guidance on public benefit in reviewing the charity's aims and objectives and in planning its future actions.
Significant activities
This tenth anniversary year brought major artistic successes; an important new development in HMT’s support for new talent; and expanded facilities in which to host HMT’s offer for local communities.
Over the year we welcomed 43,739 people to live performances (27,370 at Hope Mill and 16,369 in partner venues); supported over 600 children and young people through schools workshops, work placements and Hope Mill Theatre School; and engaged c. 170 local people in creative activities - whether performing in HMT’s community choir and orchestra, attending our Playreading Group, presenting HMT’s annual Amateur Dramatics production or contributing to the life of our theatre as volunteers.
In October, HMT’s 10th anniversary production of Mel Brooks’ YOUNG FRANKENSTEIN opened to glowing reviews: “as always at Hope Mill, this is a cast and production team with the skill and talent to put on a West End show” (British Theatre Guide). YOUNG FRANKENSTEIN went on to become the highest grossing show presented at Hope Mill, before moving to Liverpool Playhouse over Christmas: in total the show reached audiences of over 16,500.
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The Factory of Creativity
Trustees' Report (continued)
Significant activities (continued)
That autumn saw HMT founders Joseph Houston and William Whelton bring together an 18-strong line-up of musical theatre legends (including Ria Jones, Anna-Jane Casey, Katherine Kingsley and Rob Madge) for a fundraising concert performance of Victoria Wood’s ACORN ANTIQUES the Musical. We are grateful to the Victoria Wood Foundation for their permission to revive a show that has not been seen for almost 20 years - and to a stellar cast for delivering this love letter to the memory of Victoria Wood, within an impossibly short time: “It speaks volumes of not only the cast and creatives’ own personal love for Victoria Wood, but also for Hope Mill and its directors, that they have worked their marigolds off and achieved a 5* production in just over a week” (Manchester Theatres). The show played for two evenings at the Manchester Opera House and one night at London’s Shaftesbury Theatre - a near-instant sell-out, with the London performance marking a memorable West End debut for Hope Mill Theatre.
Box office proceeds from ACORN ANTIQUES went directly into HMT’s charitable activities and outreach programmes, as did the funds raised through an earlier anniversary concert, where William and Joseph celebrated HMT’s extraordinary trajectory on the main stage at Hope Mill, sharing key moments and memories with co-hosts Denise Walsh, Sally Dynevor and Grace Mouat, in the company of the wonderful Hope Mill audiences who have been such an important part of our journey.
We continued to host, year round, a strong programme of received shows, many presented by smaller Manchester-based companies for whom HMT provides a vital platform and visibility. Thirty one productions over the course of the year included a strong focus on new work and local talent, with many companies returning year after year and building their own loyal following at Hope Mill.
In early 2026 Hope Mill Theatre was named Fringe Theatre of the Year at The Stage Awards 2026. Founders William Whelton and Joseph Houston were once again included in The Stage 100’s list of the most influential people in theatre.
As ever, audiences at Hope Mill have responded with warmth and enthusiasm to a varied and engaging programme in a welcoming, intimate and much-loved space. Of 4,600 visitors surveyed after attending a show, 98% scored the likelihood that they would recommend HMT to others as 8/10 or above.
Behind the scenes, meanwhile, important work was under way laying the foundations for an exceptional year to come.
We made strong progress on a major creative collaboration with Curve Leicester, Royo Productions and Eilene Davidson Productions. Written by multi-award-winning Jonathan Harvey, SAVAGE is a new theatrical show celebrating the life and talent of Paul O’Grady: comedian, broadcaster, drag queen, actor - a queer icon cherished by audiences throughout the UK along with his drag persona, blonde bombshell Lily Savage. Paul allowed HMT exclusive rights to his story and worked with us on the project before his death in March 2023. His widower Andre Portasio has continued this support, bringing great authenticity and personal significance to an intimate portrait of a singular talent and the world that made him. Readings and a second drafting of the script with Curve’s Nikolai Foster, who will direct the show, have shaped a deeply moving new play that will make its world premiere at Curve in early 2027 before touring the country.
Finally, after years in the waiting, agreements were finalised for Hope Mill Theatre’s universally acclaimed revival of Jonathan Larson’s rock musical RENT, directed by Luke Sheppard and presented at Hope Mill Theatre in 2020 and 2021, to be the inspiration behind a new 12-month run in the Duke of York’s theatre in London’s West End. Produced by Chris Harper Productions and Sonia Friedman Productions, RENT will open in September 2026. This will mark the 30th anniversary of the Pulitzer Prize and Tony Award-winning show, introducing a new generation of audiences to one of the defining rock musicals of its generation.
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The Factory of Creativity
Trustees' Report (continued)
Significant activities (continued)
This was a landmark year also for HMT’s talent development activity. After four years in development, HMT secured validation from the Northern School of Contemporary Dance (NSCD) in Leeds for a new BA Honours degree in Musical Theatre Performance. In October we announced the launch of HOPE MILL THEATRE ARTS - one of the first degree-level musical theatre training programmes operated by a producing theatre, that will welcome a first cohort of 14 students in Autumn 2026 to train in a vibrant, working theatre environment, surrounded by industry professionals and creatives. Rigorous technical instruction in singing, acting, and dance, with real-world experience embedded through performance projects and industry showcases, will ensure students graduate not only as skilled performers but as collaborative, forward-thinking artists.
This is an important departure for HMT, as we move from creating art to creating artists. It bridges a long-standing gap in training provision in our region: training and career opportunities in musical theatre are fiercely competitive and heavily concentrated in London, leaving northern talent, particularly from less advantaged backgrounds, locked out of progression pipelines. This is driving inequity, with many talented, ambitious young people excluded. We have been excited and inspired by the new generation of diverse northern talent auditioning for student places since late 2025 and are eager to welcome this first student cohort into Hope Mill Theatre’s creative family.
Plans for this new education offer and growing demand for HMT’s thriving community programme prompted a significant expansion of our venue. In summer 2025, we were able to secure much-needed new ground-floor space directly adjoining the theatre: we will transform this into a spacious, flexible studio operating as a community hub, training room and rehearsal space, with improved access and facilities for all: audiences, artists, freelancers, staff, and volunteers. A first phase of capital work was completed this year, with support from the Key Fund, Clothworkers Foundation and many generous individuals donating to our campaign and fundraising events. A next phase of work planned for Summer 2026 will complete flooring and decoration, soundproof the area and build an access ramp, transforming the space from a shell into a flexible, accessible, well-equipped environment fit for intensive creative use.
One group benefiting from the hub is Hope Mill Theatre School (HMTS), which this year provided high-quality training and performance opportunities for 78 children and young people aged between two and eighteen. Approximately 55% of students come from less advantaged backgrounds: thanks to funding from the Albert Gubay Charitable Foundation and Richer Sounds Foundation we were able to make bursaries available to ensure cost is not a barrier. This year, 30 young participants received a full bursary and 2 a part-bursary.
Theatre School is not an add-on to the life of our theatre but an integral part of it. Previously, lack of space has meant that these young students trained externally, in partner school premises. We are delighted now to bring them into the new community hub within the walls of Hope Mill - to learn, create and see first-hand the many opportunities for exciting careers in the performing arts that are open to them, on stage and behind the scenes.
Our teams set great store by the professionalism of HMTS: training is provided by industry professionals and student productions are presented on our main stage. This year’s summer show was a full-scale production of THE WIZARD OF OZ , presented by all members of HMTS to audiences of over 300. Working alongside professional teams - director, choreographer, sound, lighting, wardrobe and set design - our young people enjoy high-quality experiences, that reflect the value we place on their work and talents. The success of past HMTS students attests to the impact: as HMTS enters its sixth year, we are seeing the first student cohorts taking early steps into creative careers and being accepted into leading performing arts schools across the country.
The community hub will also host our Amateur Dramatic Company, 30-strong Community Choir, 20-strong Community Orchestra and Play Reading group - all bringing local people together in shared creative activity and fostering community, reducing isolation and building connections and wellbeing.
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The Factory of Creativity
Trustees' Report (continued)
Significant activities (continued)
This year also brought an expansion of our creative activity with and for neurodivergent young people. Over recent years we have noted an increasing proportion of neurodivergent students in theatre school, currently approximately 26%. These young people thrive in the open, non-judgemental and safe space provided by Hope Mill Theatre, where they are encouraged to explore their creativity and express their identities: “It means I got to come out of my shell and make friends and get more confident”. Over and above their creative achievements, the wider impact on students is around a sense of belonging, of safety - being truly part of this community.
With funding from Greater Manchester Culture Fund, we partnered with Respect for All (a wellbeing charity supporting learning-disabled, autistic, and neurodivergent people) and with neurodivergent young people across Greater Manchester to explore, through a series of creative workshops, the barriers and difficulties these young people encounter in a range of public places - libraries, cultural venues, everyday spaces. SYNC has brought 40+ young people aged 14-18 together to gather and share materials and information about what helps them to feel welcomed and relaxed and the spaces they most enjoy.
With support from Manchester’s Digital Independent Specialist College (DISC), a creative digital studio for neurodivergent young people, they are scripting, filming and creating a website that will pilot an interactive map of Manchester, providing information and tips about a range of venues. The project has deepened our understanding of how cultural spaces can better support neurodivergent young people and these insights will inform both HMT practice and wider sector learning.
We wish to thank Darren Carr and Tom Kent, previous Board members who resigned in the course of the year, for the valuable and important contributions they have made to our theatre. We were pleased this year to welcome five new Trustees, bringing particular strengths in Education (including HE), Production, Theatre Management and Finance.
Financial review
Financial position
The financial transactions of the charity during the year and the position at the end of the year are set out in the attached accounts.
Income for 2025/26 was £2,013,102 compared to £2,154,852 in the previous year. Ticket sales however increased by a healthy 15%, from £1,043,810 to £1,198,004. The overall reduction in income is due to reduced grants and donations, reflecting a one-off funding boost in the previous year in the form of a major grant from the National Lottery Heritage Fund towards Hope Mill’s 200th anniversary.
Total expenditure was £2,049,602, compared to £2,036,730 in 2024/5. This modest overall increase reflects tight controls kept on operational expenditure wherever possible, in a period that saw substantial increases to staffing costs, with the introduction of increased minimum wage and NI contributions, as well as additional rent and rates associated with the new community hub.
Reserves policy
The Trustees aim to hold reserves equivalent to 3 months’ core operating costs, including provision for contractual liabilities: the target figure is £300,000.
The charity ended the year with negative unrestricted reserves of £65,360. While far short of the target level, this represents a substantial and sustained strengthening of the position over the past two years, when negative unrestricted reserves have reduced from £149,142 (March 2024) and £85,197 (March 25) to the current levels.
This continuing improvement in financial performance reflects a new production strategy introduced in late 2024: despite rising costs, tough commercial markets and an exceptionally competitive funding climate, our Board and staff have successfully stabilised the organisation post-Covid while maintaining artistic excellence and growing the depth/breadth of audiences. Future targets reflect this positive trajectory and we aim to build reserves to the required level over the next 5 years.
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The Factory of Creativity
Trustees' Report (continued)
Future strategy
Hope Mill Theatre’s work over the period from April 2026 to March 2029 will continue to be guided by 3 strategic aims:
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(1) Producing new musical theatre of world-class quality
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(2) Nurturing the next generation of diverse northern talent
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(3) Reaching and inspiring those who would otherwise have little or no access to theatre, with a particular focus on young people
In the coming year:
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(1) Number 1
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Joseph Houston and William Whelton will co-direct a fresh and exciting production of the hit Disney show HIGH SCHOOL MUSICAL, co-produced by Hope Mill Theatre, Chris Harper Productions with Lowry. From mid-August 2026, the Lowry’s Lyric Theatre will be transformed into an immersive East High experience, with extended staging and on-stage seating that puts the audience right in the middle of the action. The production will transfer to Troubadour Wembley Park Theatre for 12 weeks from mid-October.
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HMT will receive a bold new revival of Alan Menken and Howard Ashman’s cult classic, LITTLE SHOP OF HORRORS, produced by Thomas Hopkins Productions and SAMS Entertainment. Directed and choreographed by Tony and Olivier award nominated director Carrie-Anne Ingrouille, the musical will open at Hope Mill Theatre in September 2026, before transferring to Liverpool Playhouse for Christmas and the new year.
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SAVAGE will make its world premiere in early 2027 at Curve, before transferring to Liverpool Playhouse, The Lowry in Salford and London’s West End.
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(2) Talent development
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In September 2026, HOPE MILL THEATRE ARTS will welcome a first group of 14 students to train and create at Hope Mill, on a 3-year BA in Musical Theatre. All will gain practical experience - performance, production, placements, paid work - linked to a major HMT production. A strong focus on employability will help young people from across the north of England to overcome systemic barriers and establish sustainable careers in this exceptionally demanding sector.
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(3) Community programme
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From September 2026, we will develop a new weekly creative offer for neurodivergent young people at Hope Mill, drawing on the findings and recommendations emerging from our SYNC project with young people across Greater Manchester. We aim to welcome up to 20 young people in Year 1 for regular shared activities that build skills, confidence, friendships and community.
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From early 2027, we will explore new ways of taking relevant elements of TURN ON FEST beyond our theatre to reach LGBTQIA+ young people across Greater Manchester, who face barriers to attending live theatre and/or are isolated/excluded from traditional spaces. We aim to build new, long-term partnerships embedded with locality partners (e.g. libraries, community centres), that enable isolated LGBTQIA+ young people to engage directly with the TOF youth programme and with their peers.
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Throughout the coming year, we will ensure sustained engagement and discourse with local people so that HMT’s community creative offer continues to grow in response to their needs and to emerging opportunities, including linked to the Holt Town regeneration plans.
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The Factory of Creativity
Trustees' Report (continued)
Structure, Governance and Management
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a charitable incorporated organisation (CIO).
The trustees are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Decision making
As set out in the Constitution, The Factory of Creativity CIO has a minimum of three trustees. Apart from the first charity trustees, every trustee must be appointed for a term of three years by a resolution passed at a properly convened meeting of the charity trustees.
The Board meets four times per year and is supported by sub-committees operating with their own terms of reference. The Board retains full powers.
An Executive Director is appointed by the trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Executive Director has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance, employment and artistic performance related activity.
Induction and training of new trustees
New trustees undergo an orientation period to brief them on their legal obligations under charity law, the Charity Commission guidance on public benefit, content of the Constitution, the committee and decision-making processes, the business plan and recent financial performance of the charity. During the induction day they meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.
Related parties
None of our trustees receives remuneration or other benefit from their work with the charity. Any connection between a trustee or senior manager of the charity with a production company, contracted actor, performer or exhibitor must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party.
The charity's wholly owned subsidiary, FOC Trading Ltd, was established to operate the commercial bar and non-theatrical events. FOC Trading Ltd has a licence from the charity to operate those facilities and gift aids the majority of its profits to the charity.
Bolton Troy UK Limited was established on 24 February 2026 to aid with productions in the upcoming year.
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The Factory of Creativity
Trustees' Report (continued)
Risk management
The Trustees are committed to and have considered the identification and management of the major strategic, business and operational risks which the charity faces.
The principal financial risks revolve around the failure of a production at the Box Office, the risk of audiences not returning in sufficient numbers, and the potentially adverse effect on both profitability and cash flow.
The trustees have a risk management strategy which comprises:
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an in-depth annual review of the risks the charity and its subsidiary FOC Trading Limited may face;
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the establishment of systems and procedures to mitigate those risks identified in the plan;
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the implementation of procedures designed to minimise any potential impact on the charity should those risks materialise.
A key element in the management of financial risk is via a reviewed reserves policy and the retention of sufficient working capital by the subsidiary company.
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The Factory of Creativity
Trustees' Report (continued)
Statement of trustees' responsibilities
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and reports) regulations 2008 and provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditor
Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditor
The auditors, Hawsons Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting.
The annual report was approved by the trustees of the charity on 11 July 2026 and signed on its behalf by:
......................................... D E Bassett Trustee
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The Factory of Creativity
Independent Auditor's Report to the Members of The Factory of Creativity
Opinion
We have audited the financial statements of The Factory of Creativity (the 'parent charity') and its subsidiary (the 'group') for the year ended 31 March 2026, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows and Notes to the Financial Statements, 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, comprising Charities SORP - FRS 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:
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give a true and fair view of the state of the group's and parent charity's affairs as at 31 March 2026 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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.
Material uncertainty relating to going concern
We have considered the adequacy of the disclosures made in note 1 to the financial statements concerning the charity’s ability to continue as a going concern. At the year end the group’s unrestricted funds were a deficit of £65,360. The group’s cash at bank position at the year end was £90,416 with other loans totalling £346,554 and a restricted fund balance of £34,009. These conditions along with other matters explained in note 1 to the financial statements indicates the existence of a material uncertainty which may cast doubt over the group’s ability to continue as a going concern. The financial statements do not include the adjustments that would result if the group was unable to continue as a going concern. Our opinion is not modified in this respect.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude 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.
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Independent Auditor's Report to the Members of The Factory of Creativity (continued)
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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the information given in the trustees’ report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the set out on page 10, the trustees 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.
Auditor responsibilities for the audit of the financial statements
We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
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 auditor’s 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The charity is subject to laws and regulations that directly and indirectly affect the financial statements. Based on our understanding of the charity and the environment it operates within, we determined that the laws and regulations which were most significant included FRS 102, Charities Act 2011 and Health and Safety regulations. We considered the extent to which non-compliance with these laws and regulations might have a material effect on the financial statements, including how fraud might occur. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries to improve the charity’s result for the period, and management bias in key accounting estimates.
Audit procedures performed by the engagement team included:
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Discussions with management and those responsible for legal compliance procedures within the charity to obtain an understanding of the legal and regulatory framework applicable to the charity and how the charity complies with that framework, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
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Reviewing minutes of Trustee meetings;
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Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations;
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Independent Auditor's Report to the Members of The Factory of Creativity (continued)
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Challenging assumptions and judgements made by management in their significant accounting estimates.
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Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or posted by senior management.
There are inherent limitations in the audit procedures described above and the more removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-of -the-auditor’s-responsibilities-for. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor’s 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
...................................... Hawsons Chartered Accountants
Pegasus House 463a Glossop Road Sheffield South Yorkshire S10 2QD
13/07/2026 Date:.............................
Hawsons Chartered Accountants is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
Page 13
The Factory of Creativity
Consolidated Statement of Financial Activities for the Year Ended 31 March 2026
| Unrestricted | Restricted | Total | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| funds | funds | 2026 | 2025 | |||||||||
| Note | £ | £ | £ | £ | ||||||||
| Incoming resources | ||||||||||||
| Donations and legacies | 2 | 70,794 | 56,100 | 126,894 | 376,456 | |||||||
| Charitable activities | 3 | 1,198,004 | - | 1,198,004 | 1,043,810 | |||||||
| Other trading activities | 318,853 | - | 318,853 | 334,405 | ||||||||
| Other income | 369,351 | - | 369,351 | 400,181 | ||||||||
| Total Incoming resources | 1,957,002 | 56,100 | 2,013,102 | 2,154,852 | ||||||||
| Resources expended | ||||||||||||
| Raising funds | 6 | 104,671 | - | 104,671 | 101,044 | |||||||
| Charitable activities | 7 | 1,832,494 | 112,437 | 1,944,931 | 1,935,686 | |||||||
| Total expenditure | 1,937,165 | 112,437 | 2,049,602 | 2,036,730 | ||||||||
| Net incoming | ||||||||||||
| resources/(outgoing | ||||||||||||
| resources) | 19,837 | (56,337) | (36,500) | 118,122 | ||||||||
| Net movement in funds | 19,837 | (56,337) | (36,500) | 118,122 | ||||||||
| Reconciliation of funds | ||||||||||||
| Total funds brought forward | (85,197) | 90,346 | 5,149 | (112,973) | ||||||||
| Total funds carried forward | 18 | (65,360) | 34,009 | (31,351) | 5,149 |
The notes on pages 18 to 33 form an integral part of these financial statements. Page 14
The Factory of Creativity
Statement of Financial Activities for the Year Ended 31 March 2026
| Unrestricted | Restricted | Total | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| funds | funds | 2026 | 2025 | |||||||||
| Note | £ | £ | £ | £ | ||||||||
| Incoming resources | ||||||||||||
| Donations and legacies | 2 | 70,794 | 56,100 | 126,894 | 376,456 | |||||||
| Charitable activities | 3 | 1,198,004 | - | 1,198,004 | 1,043,810 | |||||||
| Other income | 5 | 608,221 | - | 608,221 | 586,996 | |||||||
| Total incoming resources | 1,877,019 | 56,100 | 1,933,119 | 2,007,262 | ||||||||
| Resources expended | ||||||||||||
| Raising funds | 6 | - | - | - | 359 | |||||||
| Charitable activities | 7 | 1,832,494 | 112,437 | 1,944,931 | 1,935,686 | |||||||
| Total expenditure | 1,832,494 | 112,437 | 1,944,931 | 1,936,045 | ||||||||
| Net incoming | ||||||||||||
| resources/(outgoing | ||||||||||||
| resources) | 44,525 | (56,337) | (11,812) | 71,217 | ||||||||
| Net movement in funds | 44,525 | (56,337) | (11,812) | 71,217 | ||||||||
| Reconciliation of funds | ||||||||||||
| Total funds brought forward | (151,803) | 90,346 | (61,457) | (132,674) | ||||||||
| Total funds carried forward | 18 | (107,278) | 34,009 | (73,269) | (61,457) |
The notes on pages 18 to 33 form an integral part of these financial statements. Page 15
The Factory of Creativity
Consolidated Balance Sheet as at 31 March 2026
| 31 March | 31 March | 31 March | 31 March | 31 March | 31 March | |||
|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | |||||||
| Group | Charity | Group | Charity | |||||
| Note | £ | £ | £ | £ | ||||
| Fixed assets | ||||||||
| Tangible assets | 10 | 65,230 | 60,747 | 81,536 | 75,932 | |||
| Investments | - | 2 | - | 1 | ||||
| 65,230 | 60,749 | 81,536 | 75,933 | |||||
| Current assets | ||||||||
| Stocks | 12 | 4,038 | - | 5,850 | - | |||
| Debtors | 13 | 458,343 | 458,342 | 474,288 | 473,811 | |||
| Cash at bank and in hand | 90,416 | 96,388 | 70,608 | 39,909 | ||||
| 552,797 | 554,730 | 550,746 | 513,720 | |||||
| Creditors: Amounts | ||||||||
| falling due within one | ||||||||
| year | 14 | (494,658) | (534,028) | (472,382) | (500,109) | |||
| Net current assets | 58,139 | 20,702 | 78,364 | 13,611 | ||||
| Total assets less | ||||||||
| current liabilities | 123,369 | 81,451 | 159,900 | 89,544 | ||||
| Creditors: Amounts | ||||||||
| falling due after more | ||||||||
| than one year | 15 | (154,720) | (154,720) | (154,751) | (151,001) | |||
| Net (liabilities)/assets | (31,351) | (73,269) | 5,149 | (61,457) | ||||
| Charity funds: | ||||||||
| Restricted income funds | ||||||||
| Restricted funds | 34,009 | 34,009 | 90,346 | 90,346 | ||||
| Unrestricted income | ||||||||
| funds | ||||||||
| Unrestricted funds | (65,360) | (107,278) | (85,197) | (151,803) | ||||
| Total charity funds | 18 | (31,351) | (73,269) | 5,149 | (61,457) |
The financial statements on pages 14 to 33 were approved by the trustees, and authorised for issue on 11 July 2026 and signed on their behalf by:
.........................................
D E Bassett Trustee
The notes on pages 18 to 33 form an integral part of these financial statements. Page 16
The Factory of Creativity
Consolidated Statement of Cash Flows for the Year Ended 31 March 2026
| 2026 | 2025 | |||||
|---|---|---|---|---|---|---|
| Note | £ | £ | ||||
| Cash flows from operating activities | ||||||
| Net cash (expenditure)/income | (36,500) | 118,122 | ||||
| Adjustments to cash flows from non-cash items | ||||||
| Depreciation | 6 | 18,045 | 22,070 | |||
| Interest payable | 6 | 25,548 | 11,211 | |||
| 7,093 | 151,403 | |||||
| Working capital adjustments | ||||||
| Decrease/(increase) in stocks | 12 | 1,812 | (2,392) | |||
| Decrease/(increase) in debtors | 13 | 15,945 | (80,161) | |||
| Increase in creditors | 14 | 18,857 | 24,691 | |||
| Net cash flows from operating activities | 43,707 | 93,541 | ||||
| Cash flows from investing activities | ||||||
| Purchase of tangible fixed assets | 10 | (1,739) | (42,368) | |||
| Cash flows from financing activities | ||||||
| Interest payable and similar charges | 6 | (25,548) | (11,211) | |||
| New loan in the year | 191,193 | 185,078 | ||||
| Repayment of loans and borrowings | 14 | (187,805) | (162,357) | |||
| Impairment of loan | - | (24,497) | ||||
| Net cash flows from financing activities | (22,160) | (12,987) | ||||
| Net increase in cash and cash equivalents | 19,808 | 38,186 | ||||
| Cash and cash equivalents at 1 April | 70,608 | 32,422 | ||||
| Cash and cash equivalents at 31 March | 90,416 | 70,608 |
The notes on pages 18 to 33 form an integral part of these financial statements. Page 17
The Factory of Creativity
Notes to the Financial Statements for the Year Ended 31 March 2026
1 Accounting policies
Statutory information
The Factory of Creativity is a a charity (No. 1183251) domiciled in England and Wales The address of its registered office is: Hope Mill Theatre, Hope Mill, 113 Pollard Street, Manchester, M4 7JA.
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.
The financial statements are presented in pounds sterling, which is the functional currency and rounded to the nearest £1.
Basis of consolidation
These financial statements consolidate the results of the charity and its wholly owned subsidiary, FOC Trading Limited on a line by line basis.
Income and debtors
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably.
Grant income is recognised when the charity becomes unconditionally entitled to it.
Debtors are recognised at settlement value.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Individual fixed assets costing £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
| estimated useful life. | |
|---|---|
| Asset class | Depreciation method and rate |
| Plant and machinery | 20% on reducing balance |
| Fixtures and fittings | 20% on reducing balance |
| Computer equipment | 33% on cost |
Page 18
The Factory of Creativity
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
1 Accounting policies (continued)
Related party exemption
The charity has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the period of the lease.
Pension costs and other post-retirement benefits
The charity operates a defined contribution pension scheme. Contributions payable to the charity’s pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Going concern
The ongoing cost of living crisis coupled with geopolitical uncertainty has created a situation where grant funding has been much harder to attain and the timing of revenue streams has been more difficult to predict. Despite the Charity receiving 66% less grant funding this year, overall incoming resources have only decreased by 6.5% as a result of the focus on the quality of productions produced by the Charity. Costs have also been closely controlled.
The Charity has produced forecasts for a period covering one year from the date of signature of these financial statements. The Trustees have reviewed these forecasts and believe that the expected income and expenditure is sufficient with the level of reserves for the Group to be able to meet their financial obligations as they fall due. Having already negotiated the recent turbulent years, the Trustees believe that the Group is able to generate sufficient reserves in the future and continue as a going concern however acknowledge that a material uncertainty exists in this regard. The financial statements have been prepared on a going concern basis.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the charity is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the statement of comprehensive income.
Page 19
The Factory of Creativity
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
1 Accounting policies (continued)
Critical accounting estimates and areas of judgement
There are no significant estimate or judgements made in the process of applying the charity’s accounting policies.
2 Income from grants, donations and legacies
| Total | Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Unrestricted | Restricted | funds | funds | ||||||||
| fund | funds | 2026 | 2025 | ||||||||
| £ | £ | £ | £ | ||||||||
| Donations | 44,037 | - | 44,037 | 56,269 | |||||||
| Total donations | 44,037 | - | 44,037 | 56,269 | |||||||
| Manchester City Council | 26,757 | - | 26,757 | 26,757 | |||||||
| Foyle Foundation | - | - | - | 30,000 | |||||||
| Richer Sounds Foundation | - | - | - | 15,000 | |||||||
| National Lottery Heritage Fund | - | - | - | 198,430 | |||||||
| Albert Gubay Charitable | |||||||||||
| Foundation | - | - | - | 50,000 | |||||||
| Greater Manchester Combined | |||||||||||
| Authority | - | 25,000 | 25,000 | - | |||||||
| Northern Impact Fund 2 | - | 23,000 | 23,000 | - | |||||||
| The Clothworkers Foundation | - | 8,100 | 8,100 | - | |||||||
| Total grants | 26,757 | 56,100 | 82,857 | 320,187 | |||||||
| Total | 70,794 | 56,100 | 126,894 | 376,456 | |||||||
| 3 Income from charitable activities |
|||||||||||
| Unrestricted | Restricted | ||||||||||
| fund | funds | 2026 | 2025 | ||||||||
| £ | £ | £ | £ | ||||||||
| Ticket sales | 1,158,496 | - | 1,158,496 | 1,002,916 | |||||||
| Memberships | 11,407 | - | 11,407 | 9,570 | |||||||
| Theatre school | 28,101 | - | 28,101 | 31,324 | |||||||
| 1,198,004 | - | 1,198,004 | 1,043,810 |
Page 20
The Factory of Creativity
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
4 Income from other trading activities
| Total | Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Unrestricted | Restricted | Funds | Funds | ||||||||
| fund | funds | 2026 | 2025 | ||||||||
| £ | £ | £ | £ | ||||||||
| Sales of Product Income | 8,252 | - | 8,252 | 49 | |||||||
| Fundraising | - | - | - | 166 | |||||||
| Trading income | 305,203 | - | 305,203 | 328,440 | |||||||
| Theatre Hire | 5,398 | - | 5,398 | 5,750 | |||||||
| 318,853 | - | 318,853 | 334,405 | ||||||||
| 5 Other income |
|||||||||||
| Total | Total | ||||||||||
| Unrestricted | Restricted | Funds | Funds | ||||||||
| fund | funds | 2026 | 2025 | ||||||||
| £ | £ | £ | £ | ||||||||
| Theatre Tax Relief | 369,351 | - | 369,351 | 400,181 | |||||||
| 6 Expenditure on raising funds |
|||||||||||
| Total | Total | ||||||||||
| Unrestricted | Restricted | funds | funds | ||||||||
| fund | funds | 2026 | 2025 | ||||||||
| £ | £ | £ | £ | ||||||||
| Charitable: | |||||||||||
| Fundraising costs | - | - | - | 359 | |||||||
| Non-Charitable: | |||||||||||
| Trading subsidiary expenditure | 104,671 | - | 104,671 | 100,685 | |||||||
| 104,671 | - | 104,671 | 101,044 |
Page 21
The Factory of Creativity
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
7 Expenditure on charitable activities
| Total | Total | |||
|---|---|---|---|---|
| Unrestricted | Restricted | funds | funds | |
| fund | funds | 2026 | 2025 | |
| £ | £ | £ | £ | |
| Production costs | ||||
| Hire of Equipment | - | - | - | 11,130 |
| Box office | 299,854 | - | 299,854 | 238,235 |
| Pre-production expenses | 766,789 | 10,844 | 777,633 | 929,236 |
| Artist Travel | - | - | - | 103 |
| Artists | 231,082 | - | 231,082 | 170,780 |
| 1,297,725 | 10,844 | 1,308,569 | 1,349,484 | |
| Establishment costs | ||||
| Rent and rates | 59,626 | - | 59,626 | 38,892 |
| Insurance | 15,845 | - | 15,845 | 9,824 |
| Light and heat | 13,693 | - | 13,693 | 15,489 |
| Telephone | 3,288 | - | 3,288 | 3,496 |
| 92,452 | - | 92,452 | 67,701 | |
| Support costs | ||||
| Computer expenditure | 1,490 | - | 1,490 | 2,073 |
| Repair and maintenance | 13,134 | 17,292 | 30,426 | 4,456 |
| Entertainment | 1,846 | - | 1,846 | 12,734 |
| Licenses and memberships | 7,506 | - | 7,506 | 5,959 |
| Cleaning | 10,231 | 300 | 10,531 | 7,305 |
| Health and safety | 5,641 | - | 5,641 | 11,390 |
| Travel | 1,535 | - | 1,535 | 3,940 |
| Depreciation | 9,541 | 7,384 | 16,925 | 20,668 |
| Printing, postage and stationery | 3,652 | - | 3,652 | 1,300 |
| Advertising | 10,510 | 750 | 11,260 | 32,531 |
| Sundries | (514) | - | (514) | 25,588 |
| Bank loan interest | 25,548 | - | 25,548 | 11,211 |
| VAT expense | 8,131 | - | 8,131 | 6,420 |
| 98,251 | 25,726 | 123,977 | 145,575 | |
| Payroll costs | ||||
| Staff costs | 301,667 | 53,406 | 355,073 | 322,424 |
| Training | 570 | - | 570 | 936 |
| 302,237 | 53,406 | 355,643 | 323,360 |
Page 22
The Factory of Creativity
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
7 Expenditure on charitable activities (continued)
| Total | Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Unrestricted | Restricted | funds | funds | ||||||||
| fund | funds | 2026 | 2025 | ||||||||
| £ | £ | £ | £ | ||||||||
| Governance costs | |||||||||||
| Auditor’s remuneration | 18,000 | - | 18,000 | 17,358 | |||||||
| Legal and professional fees | 23,075 | 22,461 | 45,536 | 31,723 | |||||||
| Bank charges | 754 | - | 754 | 485 | |||||||
| 41,829 | 22,461 | 64,290 | 49,566 | ||||||||
| Total expenditure on | |||||||||||
| charitable activities | 1,832,494 | 112,437 | 1,944,931 | 1,935,686 |
8 Net incoming/outgoing resources
Net (outgoing)/incoming resources for the year include:
| 8 Net incoming/outgoing resources Net (outgoing)/incoming resources for the year include: |
|||
|---|---|---|---|
| 2026 | 2025 | ||
| £ | £ | ||
| Depreciation of fixed assets | 18,045 | 22,070 | |
| Fees payable to the Charity’s auditors in respect of: | |||
| The audit of the Charity’s annual accounts | 10,000 | 7,500 | |
| The audit of the subsidiary’s annual accounts | 3,000 | 2,500 | |
| All taxation advisory services | 500 | 3,400 | |
| All non-audit services not included above | 4,500 | 3,958 |
9 Staff costs
The aggregate payroll costs were as follows:
| Group | Charity | Group | Charity | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2026 | 2025 | 2025 | ||||||||
| £ | £ | £ | £ | ||||||||
| Staff costs during the year | |||||||||||
| were: | |||||||||||
| Wages and salaries | 315,464 | 315,464 | 283,776 | 283,776 | |||||||
| Social security costs | 34,264 | 34,264 | 33,713 | 33,713 | |||||||
| Pension costs | 5,345 | 5,345 | 4,935 | 4,935 | |||||||
| 355,073 | 355,073 | 322,424 | 322,424 |
The monthly average number of persons (including senior management) employed by the group during the year expressed as full time equivalents was as follows:
Employees
| Group & | Group & |
|---|---|
| Charity | Charity |
| 2026 | 2025 |
| No | £ |
| 10 | 7 |
Page 23
The Factory of Creativity
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
9 Staff costs (continued)
The number of employees whose emoluments fell within the following bands was:
| 2026 | 2025 | |||
|---|---|---|---|---|
| No | No | |||
| £60,001 | - | £70,000 | 2 | 1 |
During the year, no trustees received any remuneration or other benefits (2025: Nil). No (2025: Nil) trustees had expenses reimbursed during the year (2025: £Nil).
The total amount of employee benefits received by key management personnel is £147,999 (2025 - £131,629). The key management personnel of the charity comprise the trustees and the Senior Management Team, which at the year end comprises the staff members listed below.
Executive Director Artistic Director
Page 24
The Factory of Creativity
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
10 Tangible fixed assets
Group
| Group | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Plant & | Fixtures & | Computer | |||||||
| machinery | fittings | equipment | Total | ||||||
| £ | £ | £ | £ | ||||||
| Cost | |||||||||
| At 1 April 2025 | 140,637 | 21,722 | 18,964 | 181,323 | |||||
| Additions | 1,739 | - | - | 1,739 | |||||
| At 31 March 2026 | 142,376 | 21,722 | 18,964 | 183,062 | |||||
| Depreciation | |||||||||
| At 1 April 2025 | 70,608 | 15,236 | 13,943 | 99,787 | |||||
| Charge for the year | 14,355 | 1,296 | 2,394 | 18,045 | |||||
| At 31 March 2026 | 84,963 | 16,532 | 16,337 | 117,832 | |||||
| Net book value | |||||||||
| At 31 March 2026 | 57,413 | 5,190 | 2,627 | 65,230 | |||||
| At 31 March 2025 | 70,029 | 6,486 | 5,021 | 81,536 | |||||
| Charity | |||||||||
| Plant & | Fixtures & | Computer | |||||||
| machinery | fittings | equipment | Total | ||||||
| £ | £ | £ | £ | ||||||
| Cost | |||||||||
| At 1 April 2025 | 133,102 | 19,163 | 18,155 | 170,420 | |||||
| Additions | 1,739 | - | - | 1,739 | |||||
| At 31 March 2026 | 134,841 | 19,163 | 18,155 | 172,159 | |||||
| Depreciation | |||||||||
| At 1 April 2025 | 67,615 | 13,444 | 13,429 | 94,488 | |||||
| Charge for the year | 13,446 | 1,143 | 2,335 | 16,924 | |||||
| At 31 March 2026 | 81,061 | 14,587 | 15,764 | 111,412 | |||||
| Net book value | |||||||||
| At 31 March 2026 | 53,780 | 4,576 | 2,391 | 60,747 | |||||
| At 31 March 2025 | 65,487 | 5,719 | 4,726 | 75,932 |
Page 25
The Factory of Creativity
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
11 Fixed asset investments
Charity
Shares in group undertakings and participating interests
| Subsidiary | |
|---|---|
| undertakings | |
| £ | |
| Cost | |
| At 1 April 2025 | 1 |
| Additions | 1 |
| At 31 March 2026 | 2 |
Details of undertakings
Details of the investments in which the charity holds 20% or more of the nominal value of any class of share capital are as follows:
| share capital are as follows: | |||
|---|---|---|---|
| Company | Class of | Proportion of voting | |
| Undertaking | number | share | rights and shares held |
| 2026 2025 |
|||
| FOC Trading Limited | 12032999 | Ordinary | 100% 100% |
| Bolton Troy UK Limited | 17051872 | Ordinary | 100% 0% |
The principal activity of FOC Trading Limited is to operate commercial activities of its parent charity. Bolton Troy UK Limited was dormant during the period.
The registered office of FOC Trading Limited and Bolton Troy UK Limited is Hope Mill Theatre, 113 Pollard Street, Manchester, M4 7JA.
The profit for the financial period of FOC Trading Limited was £36,481 (2025 - £59,769) and the aggregate amount of capital and reserves at the end of the period was £41,756 (2025 - £66,444).
12 Stock
| 2026 | 2026 | 2025 | 2025 | |
|---|---|---|---|---|
| Group | Charity | Group | Charity | |
| £ | £ | £ | £ | |
| Stocks | 4,038 | - | 5,850 | - |
There is no material difference between the replacement cost of stocks and amounts stated above.
Page 26
The Factory of Creativity
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
13 Debtors
| 13 Debtors | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | ||||||||||
| Group | Charity | Group | Charity | ||||||||
| £ | £ | £ | £ | ||||||||
| Trade debtors | 3,282 | 3,282 | 1,923 | 1,923 | |||||||
| Prepayments | 455,060 | 455,060 | 471,888 | 471,888 | |||||||
| Other debtors | 1 | - | 477 | - | |||||||
| 458,343 | 458,342 | 474,288 | 473,811 | ||||||||
| 14 Creditors: amounts falling due within one year | |||||||||||
| 2026 | 2025 | ||||||||||
| Group | Charity | Group | Charity | ||||||||
| £ | £ | £ | £ | ||||||||
| Other loans | 191,834 | 191,834 | 192,165 | 192,165 | |||||||
| Trade creditors | 61,398 | 61,398 | 141,160 | 139,529 | |||||||
| Due to group undertakings | - | 59,649 | - | 51,528 | |||||||
| Other taxation and social | |||||||||||
| security | 3,333 | 1,594 | 27,568 | 24,189 | |||||||
| Other creditors | 4,787 | 4,950 | 3,968 | 3,968 | |||||||
| Deferred income | 218,306 | 202,103 | 94,522 | 78,230 | |||||||
| Accruals | 15,000 | 12,500 | 12,999 | 10,500 | |||||||
| 494,658 | 534,028 | 472,382 | 500,109 | ||||||||
| 15 Creditors: amounts falling due after one year | |||||||||||
| 2026 | 2025 | ||||||||||
| Group | Charity | Group | Charity | ||||||||
| £ | £ | £ | £ | ||||||||
| Other loans | 154,720 | 154,720 | 151,001 | 151,001 | |||||||
| Deferred income | - | - | 3,750 | - | |||||||
| 154,720 | 154,720 | 154,751 | 151,001 |
Page 27
The Factory of Creativity
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
16 Deferred income
| 16 Deferred income | |||||
|---|---|---|---|---|---|
| 2026 | 2025 | ||||
| Group | £ | £ | |||
| Deferred income at 1 April 2025 | 98,272 | 107,449 | |||
| Resources deferred in the period | 218,306 | 98,272 | |||
| Amounts released from previous periods | (98,272) | (107,449) | |||
| Deferred income at year end | 218,306 | 98,272 | |||
| 2026 | 2025 | ||||
| Charity | £ | £ | |||
| Deferred income at 1 April 2025 | 78,230 | 41,824 | |||
| Resources deferred in the period | 202,103 | 78,230 | |||
| Amounts released from previous periods | (78,230) | (41,824) | |||
| Deferred income at year end | 202,103 | 78,230 |
Deferred income comprises amounts which have been invoiced in advance and relate to future accounting periods.
17 Other loans
The ageing of the loans is as follows:
| 2026 | 2026 | 2026 | 2025 | 2025 | 2025 | |||
|---|---|---|---|---|---|---|---|---|
| Group | Charity | Group | Charity | |||||
| £ | £ | £ | £ | |||||
| Due | in one year | 191,834 | 191,834 | 192,165 | 192,165 | |||
| Due | between two and five years | 154,720 | 154,720 | 51,001 | 51,001 | |||
| Due | in more than five years | - | - | 100,000 | 100,000 | |||
| 346,554 | 346,554 | 343,166 | 343,166 |
Included in the balance due within one year, is a balance of £125,000 which is secured by means of an executed security notice over the charity's bank account.
Page 28
The Factory of Creativity
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
18 Restricted funds
Group and charity
| Balance at | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at 1 | Incoming | Resources | 31 March | |||||||||||
| April 2025 | resources | expended | 2026 | |||||||||||
| £ | £ | £ | £ | |||||||||||
| Manchester | City Council | 20,380 | - | (17,053) | 3,327 | |||||||||
| Richer Sounds Foundation | 15,000 | - | (15,000) | - | ||||||||||
| National | Lottery Heritage Fund | 29,966 | - | (7,384) | 22,582 | |||||||||
| Albert | Gubay | Charitable | ||||||||||||
| Foundation | 25,000 | - | (25,000) | - | ||||||||||
| Greater | Manchester | Combined | ||||||||||||
| Authority | - | 25,000 | (25,000) | - | ||||||||||
| Northern | Impact Fund | 2 | - | 23,000 | (23,000) | - | ||||||||
| The Clothworkers Foundation | - | 8,100 | - | 8,100 | ||||||||||
| 90,346 | 56,100 | (112,437) | 34,009 | |||||||||||
| Balance at | ||||||||||||||
| Balance at 1 | Incoming | Resources | 31 March | |||||||||||
| April 2024 | resources | expended | 2025 | |||||||||||
| £ | £ | £ | £ | |||||||||||
| First Curtain | 4,539 | - | (4,539) | - | ||||||||||
| Manchester | City Council | 20,380 | - | - | 20,380 | |||||||||
| Andrew | Lloyd | Webber | ||||||||||||
| Foundation | 11,250 | - | (11,250) | - | ||||||||||
| Richer Sounds Foundation | - | 15,000 | - | 15,000 | ||||||||||
| National | Lottery Heritage Fund | - | 198,430 | (168,464) | 29,966 | |||||||||
| Albert | Gubay | Charitable | ||||||||||||
| Foundation | - | 50,000 | (25,000) | 25,000 | ||||||||||
| 36,169 | 263,430 | (209,253) | 90,346 |
First Curtain
Manchester City Council Andrew Lloyd Webber Foundation
Richer Sounds Foundation
Heritage Fund
First Curtain raises funds to buy a ticket for a child from Greater Manchester to attend the theatre for the first time.
Funding towards capital development feasibility studies.
The grant provides funding towards the Hope Mill Theatre School.
The purpose of the Grant is to fund 15 young people to attend the weekly Theatre school each Saturday (during term time) and a place in the annual summer school.
This grant provided funding for Hope Mill’s Big Birthday.
Page 29
The Factory of Creativity
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
18 Restricted funds (continued)
This grant provided funding to introduce children under 18 years of age, who face significant financial difficulty and who are not Albert Gubay Charitable succeeding in school, to theatres and performance, with the Foundation opportunity to learn and train with skilled industry professionals and look at the many opportunities for careers in the performing arts, both on stage and behind the scenes. SYNC is a collaborative initiative led by Hope Mill Theatre (HMT) in partnership with Respect for All (RfA) and the Greater Manchester Neurodivergent VCSE Collective. It empowers neurodivergent (ND) young people (aged 14–18) across Greater Greater Manchester Manchester through creative, drama-based workshops to Combined Authority co-produce a self-advocacy digital resource. This resource will help ND youth articulate their needs and advocate for inclusive adjustments in everyday environments such as schools, cultural venues, and public services. Key Fund have provided a grant to be used to open our new community hub, this has been spent on capital works in order to Northern Impact fund 2 create a safe, accessible and welcoming community space to be used by our users who engage with our established community programme and also other community groups in our area. The grant has provided funds towards the cost of installing air conditioning into our new community hub, this funding has allowed The Clothworkers Foundation us to ensure the space can be heated and cooled in order to make the venue as comfortable for our users as possible.
Page 30
The Factory of Creativity
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
19 Unrestricted funds
Group
| Group | ||||||||
|---|---|---|---|---|---|---|---|---|
| Balance at | ||||||||
| Balance at 1 | Incoming | Resources | 31 March | |||||
| April 2025 | resources | expended | 2026 | |||||
| 2026 | £ | £ | £ | £ | ||||
| Unrestricted | fund | (85,197) | 1,957,002 | (1,937,165) | (65,360) | |||
| Balance at | ||||||||
| Balance at 1 | Incoming | Resources | 31 March | |||||
| April 2024 | resources | expended | 2025 | |||||
| 2025 | £ | £ | £ | £ | ||||
| Unrestricted | fund | (149,142) | 1,891,422 | (1,827,477) | (85,197) | |||
| Charity | ||||||||
| Balance at | ||||||||
| Balance at 1 | Incoming | Resources | 31 March | |||||
| April 2025 | resources | expended | 2026 | |||||
| 2026 | £ | £ | £ | £ | ||||
| Unrestricted | fund | (151,803) | 1,877,019 | (1,832,494) | (107,278) | |||
| Balance at | ||||||||
| Balance at 1 | Incoming | Resources | 31 March | |||||
| April 2024 | resources | expended | 2025 | |||||
| 2025 | £ | £ | £ | £ | ||||
| Unrestricted | fund | (168,843) | 1,743,832 | (1,726,792) | (151,803) |
20 Analysis of net assets between funds
Group
| Group | ||||||||
|---|---|---|---|---|---|---|---|---|
| Unrestricted | Restricted | |||||||
| fund | funds | Total funds | ||||||
| 2026 | £ | £ | £ | |||||
| Tangible fixed assets | 42,647 | 22,583 | 65,230 | |||||
| Current assets | 541,371 | 11,426 | 552,797 | |||||
| Current liabilities | (494,658) | - | (494,658) | |||||
| Creditors over 1 year | (154,720) | - | (154,720) | |||||
| Total net assets | (65,360) | 34,009 | (31,351) |
Page 31
The Factory of Creativity
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
20 Analysis of net assets between funds (continued)
| Unrestricted | Restricted | |||||||
|---|---|---|---|---|---|---|---|---|
| fund | funds | Total funds | ||||||
| 2025 | £ | £ | £ | |||||
| Tangible fixed assets | 51,570 | 29,966 | 81,536 | |||||
| Current assets | 490,366 | 60,380 | 550,746 | |||||
| Current liabilities | (472,382) | - | (472,382) | |||||
| Creditors over 1 year | (154,751) | - | (154,751) | |||||
| Total net assets | (85,197) | 90,346 | 5,149 | |||||
| Charity | ||||||||
| Unrestricted | Restricted | |||||||
| fund | funds | Total funds | ||||||
| 2026 | £ | £ | £ | |||||
| Tangible fixed assets | 38,164 | 22,583 | 60,747 | |||||
| Investments | 2 | - | 2 | |||||
| Current assets | 543,304 | 11,426 | 554,730 | |||||
| Current liabilities | (534,028) | - | (534,028) | |||||
| Creditors over 1 year | (154,720) | - | (154,720) | |||||
| Total net assets | (107,278) | 34,009 | (73,269) | |||||
| Unrestricted | Restricted | |||||||
| fund | funds | Total funds | ||||||
| 2025 | £ | £ | £ | |||||
| Tangible fixed assets | 45,966 | 29,966 | 75,932 | |||||
| Investments | 1 | - | 1 | |||||
| Current assets | 453,340 | 60,380 | 513,720 | |||||
| Current liabilities | (500,109) | - | (500,109) | |||||
| Creditors over 1 year | (151,001) | - | (151,001) | |||||
| Total net assets | (151,803) | 90,346 | (61,457) |
Page 32
The Factory of Creativity
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
21 Analysis of net funds
Group
| Group | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Other non | |||||||||
| At 1 April | Financing | cash | At 31 March | ||||||
| 2025 | cash flows | changes | 2026 | ||||||
| £ | £ | £ | £ | ||||||
| Cash at bank and in hand | 70,608 | 19,808 | - | 90,416 | |||||
| Debt due within one year | (192,165) | (3,388) | 3,719 | (191,834) | |||||
| Debt due after more than one | |||||||||
| year | (151,001) | - | (3,719) | (154,720) | |||||
| Net debt | (272,558) | 16,420 | - | (256,138) |
22 Financial commitments
Operating lease commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
| Group | Group | Group | Charity | Charity | Charity | ||
|---|---|---|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | ||||
| £ | £ | £ | £ | ||||
| Land and buildings | |||||||
| Within one year | 58,762 | 25,000 | 58,762 | 25,000 | |||
| Between one and five years | 210,535 | 100,000 | 210,535 | 100,000 | |||
| After five years | - | 10,417 | - | 10,417 | |||
| 269,297 | 135,417 | 269,297 | 135,417 |
As at 31 March 2026 the charity and the Group had capital commitments of £nil (2025: £nil).
23 Pension commitments
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £5,345 (2025: £4,935). There were no outstanding contributions payable to the fund at the reporting date.
24 Related party transactions
Transactions with trustees are disclosed in note 9.
The financial results of FOC Trading Limited as disclosed in note 11 of these financial statements.
Page 33