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2023-08-27-accounts

ROYAL OPERA HOUSE THE ANNUAL REPORT 2022123

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

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412 performances across the
Main Stage and Linbury
Theatre with 624,966 tickets
sold
30% of tickets for the
22 new productions
Main Stage priced at
including 11 world
under £50 (25% under
premieres
£35)
142,576 views of 279 pieces of
10,000 children
content on the Royal Opera
attended
House Stream plus 4.9m social
Schools’
media followers globally
Matinees
including 1.2m YouTube
2022/23 IN
SUMMARY
20-29 year-olds are the
biggest audience group 13 ballet and opera titles
and the age group with the shown in 1,355 cinemas
largest growth since pre- across 49 countries
pandemic
Over 33,000 children in
107 full-time members of
more than 500 schools
the Youth Opera Company,
engaged with our
49.5% from Global
National Schools
Majority backgrounds
Programmes
11 apprentices
recruited bringing the 70,041 tickets sold to
total to 19 (including Young ROH members
first and second years)
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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

INCOME 2022/23

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£7.1M
£3.1M INCOME
Other income
Investment income
4%
2%
£52.6M
Box office receipts
31%
£46.0M
Commercial and
other income
27%
£24.3M
ACE - NPO and
£37.6M
Bridge
Fundraising &
14%
Sponsorship
22%
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EXPENDITURE 2022/23

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EXPENDITURE
£13.4M £1.7M
£4.7M
Commercial Front of House
Fundraising 9% 1%
3%
£9.8M
Management,
administration and
governance
6%
£9.7M
Marketing and
publicity £88.3M
6% Performance,
learning and
outreach
£27.2M 57%
Premises and
depreciation
18%
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Total income £170.7m, including capital donations and funding of £0.5m. Total expenditure £154.8m, excluding capital expenditure. Figures exclude gains on investment, taxation and fund transfers.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

INCOME 2021/22

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INCOME £0.7M
£24.4M Investment income
Commercial and 0%
other income
19%
£39.6M
Box office receipts
31%
£39.0M
Fundraising &
Sponsorship
30%
£25.2M
ACE - NPO and
Bridge
20%
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EXPENDITURE 2021/22

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EXPENDITURE
£9.5M £1.3M
£4.6M Commercial Front of House
Fundraising 7%
1%
4%
£8.3M
Management,
administration and
governance
6%
£74.4M
Performance,
learning and
£9.4M
outreach
Marketing and
56%
publicity
7%
£25.6M
Premises and
depreciation
19%
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Total income £128.9m, including capital donations and funding of £0.5m. Total expenditure £133.1m, excluding capital expenditure, includes exceptional grant of £3.8m from Paul Hamlyn Education Fund. Figures exclude gains on investment, taxation and fund transfers.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

TIMESCALE FOR THIS REPORT

The Trustees are pleased to present their report together with the audited financial statements of the Royal Opera House 52-week period ended 27 August 2023.

The comparative period is the 52-week period ended 28 August 2022.

This document will be filed with the Charity Commission and the Registrar of Companies.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

SIR LLOYD DORFMAN CVO CBE Chair

Welcome to the Royal Opera House Covent Garden Foundation (Limited by Guarantee) 2022/23 Annual Report.

The Royal Opera House occupies a unique place at the heart of the nation’s artistic and wider cultural life. As a powerhouse of excellence, the work of the ROH extends far beyond the theatres in Covent Garden. It is a huge privilege to serve as chair and it is enormous gratitude to our supporters and great pride in our work that I reflect on the achievements of the 2022/23 Season.

Whilst the catastrophic closure of the House in the face of the pandemic was put behind us in the 2022/23 Season, the repercussions of that period were still being felt and were exacerbated by broader economic and other challenges. The costs of running our theatres have surged in the wake of a cost-of-living crisis that has impacted our entire industry as it has the whole economy. This has come alongside a significant realterm cut to our Arts Council England grant and the ever-more pressing need for capital investment in our ageing back-of-house infrastructure. It was a significant achievement to negotiate these challenges in the short term, and the determination, resilience and creativity demonstrated by this institution will stand us in good stead as we work to secure longer-term stability.

We could not have faced these deep-seated challenges without the generosity, commitment and support of our Friends, funders and audiences, all of whom play a critical role in the creation and sharing of the art we produce, and the value it brings to our society. I would also like to highlight particular appreciation of the government support we have received through its increase in Theatre Tax Credit rates. This move has played a pivotal role in our ongoing recovery. The recognition of the vital role cultural institutions play in the fabric of our society is heartening, and we express our deep gratitude for this support.

In looking to the future, we have embarked on a series of initiatives to ensure the financial security of the ROH in the longer term. We have focused on growing fundraising revenues, maximising box office income, and cultivating new commercial partnerships. The goal is to fortify our financial foundation and guarantee the continuity of this extraordinary artistic enterprise in the face of the many challenges that lie ahead. The progress we have made so far in these areas has been encouraging, but we are well aware this is not a single season project and we are making sure we are braced for a testing future.

Whilst we work to ensure our financial stability, we never forget the purpose behind it: to nurture the artistic excellence that underpins all that we do. This commitment extends across our two internationally acclaimed artistic companies and our wonderful orchestra. It encompasses both stages and resonates in the diverse and impactful work we share globally online and in cinemas, as well as in schools and communities around the country. I and the Board of Trustees remain committed to ensuring the ROH is a beacon of excellence at the heart of the nation’s cultural life and that it continues to reach out to and inspire the next generation of ballet and opera practitioners and lovers of these wonderful art forms.

Sir Lloyd Dorfman CVO CBE 21 March 2024

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

ALEX BEARD Chief Executive

We were greatly saddened to learn of the death of Her Majesty Queen Elizabeth II on 8[th] September 2022. Her patronage of the Royal Opera House was a source of great pride to all our staff and artists and her longstanding support of the arts was deeply appreciated. In honour, the Royal Ballet dedicated its 2022/23 Season to her memory.

The 2022/23 Season was one of significant artistic achievement with 22 new productions, including 11 world premieres and 3 UK premieres, across the work of The Royal Ballet and The Royal Opera. The season was played out against the backdrop of a daunting financial landscape which was given an additional element of complexity by ongoing unrest around the world. All this only underlined the unwavering commitment to excellence that has characterised the work of everyone at the Royal Opera House as well as demonstrating their, and the organisation’s, resilience in the face of adversity.

Of course, the work on stage and events in the wider world are closely connected. Not only in the direct financial sense of putting on a show or running an opera house, but in the vital role the arts play in reflecting, interrogating and commenting on the world around us, as well as bringing people together in a shared spirit of internationalism, community and creative endeavour. We take these responsibilities extremely seriously and the ballet and opera on our stages, online and in cinemas, and our extensive programme of work with schools and communities throughout the UK, is in service to this end.

In that spirit, The Royal Ballet opened its Season on the Main Stage with Crystal Pite's Light of Passage , which mesmerically illuminated global challenges from migration to the plight of the young and the old around the world. It was followed in the Linbury Theatre by the world premiere of Wayne McGregor's UniVerse: A Dark Crystal Odyssey , his response to Jim Henson’s film and a world in ecological peril. These new works seamlessly joined beloved productions from the Company's rich heritage, including Kenneth MacMillan's timeless Mayerling , revived to mark the 30th anniversary of MacMillan's death, and a new production of Frederick Ashton’s Cinderella , 75 years after its premiere yet still fresh and a firm favourite with audiences.

In the Linbury Theatre, we celebrated partnerships, collaboration and innovation, showcasing the cutting edge of choreographic talent from visiting companies including Ballet Black, Acosta Danza and Northern Ballet. Audiences also had a glimpse of the vibrant future of dance as we continued to nurture emerging creative and performing talent with Draft Works, International Draft Works and the Next Generation Festival, which celebrated the work of talented young artists from junior companies and top dance schools drawn from the UK and across Europe.

The vicissitudes of the last few years have reinforced to us how reliant we are on our Friends, and how grateful we are for their steadfast support. To mark the 60th anniversary of The Friends of Covent Garden, we presented a stellar showcase of The Royal Ballet’s repertory past, present and future, featuring three world premieres as well as, most appropriately, a performance of George Balanchine's exquisite ‘Diamonds’.

The Royal Opera celebrated Antonio Pappano's 20th year as their inspirational Music Director. He conducted two spectacular new productions of Verdi operas – Aida and Il trovatore – as well as a bold new production of Alban Berg's Wozzeck . The Royal Opera again welcomed a stunning roster of international stars including Lisette Oropesa, Jonas Kaufmann and Elīna Garanča alongside the best of British talent, including David Butt Philip, Christine Rice, Bryn Terfel, Sarah Connolly, Mary Bevan, Brindley Sherratt, Christopher Purves, Natalya Romaniw and Freddie De Tommaso. In all, the 2022/23 Season witnessed 11 new opera productions, including Kaija Saariaho's critically acclaimed Innocence. In continuation of our work to diversify creative teams, half of our new productions were created by female directors, including a new take on Rusalka , for which Natalie Abrahami and Ann Yee led an all-female production team.

The Royal Opera’s project to revive the work of composers closely associated with Covent Garden continued with Richard Jones's new production of Alcina, as well as Handel’s Arminio , not seen in Covent Garden since 1737 and brought to life by a cast and creative team of Jette Parker Artists. Director of Opera Oliver Mears

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

returned to Benjamin Britten for a new production of The Rape of Lucretia , again drawing on our Jette Parker Artists as well as talent from Britten Pears Young Artists Programme.

Throughout the season new and already much loved work combined with revivals of Tannhäuser , Don Carlo , The Barber of Seville , Turandot , Salome , Tosca and La bohème alongside such works as Oliver Leith’s Last Days , based loosely on the final days of Kurt Cobain. In addition the season also saw History of the Present , Maria Fusco's exploration of the Good Friday Agreement on its 25th anniversary and Woman at Point Zero , which was a highlight of our Engender Festival celebrating ground-breaking work from women and nonbinary opera-makers, creatives and change-makers.

Across opera and ballet, we presented one of our most collaborative seasons, forging enriching international partnerships with companies including Norwegian National Ballet, Lyric Opera of Chicago, Aix en Provence festival and Irish National Opera. This sense of being part of a global community is nowhere more evident than on World Ballet Day, which saw The Royal Ballet partner with over 60 companies, from six continents, who came together online to celebrate the power of dance.

Most gratifyingly this outstanding programme of work was enjoyed by our youngest and most diverse audience to date. Over 70,000 reduced price tickets were sold as part of our Young ROH scheme, we were again proud to host NHS workers to thank them for their service to the country, and we welcomed a record number of newcomers and future ballet and opera lovers to our theatres.

The impact of our work resonated far beyond our stages as we also reached our biggest ever global audience via our streaming platform which now has over 11,000 active subscribers in over 100 countries (in total, globally, we have 49m social media followers including 1.2m on YouTube) and our programme of live cinema live relays which in 2022/23 played in 49 countries across the world.

Looking to the longer term and how best to preserve and enhance the work we do, our commitment to talent development is unwavering. We are actively investing in the future of our art forms, from apprenticeships to the Jette Parker Artists and Aud Jebsen Young Dancers programmes for creatives taking their first steps in their careers, to other mentoring schemes and initiatives that promote diverse access to opera and ballet, as well as our involvement with TheatreCraft (the UK’s largest free careers event for young people interested in an offstage career in theatre). These programmes will play a crucial role in securing the continuity of the talent pipeline and ensuring the arts continue to thrive for generations to come.

I would also like to extend a special note of appreciation to the unsung heroes of our backstage, technical, costume and other production staff whose professionalism, dedication and commitment ensure that our artistic visions come to life on stage.

Away from Covent Garden our commitment to education and community outreach to inspire creativity has flourished. Our flagship National Schools Programmes reached over 30,000 children and 900 teachers in over 500 schools from Northumberland to Cornwall, and a further 10,000 attended school matinees, introducing a new generation to dance and music. Our partnership with The Elliot Foundation Academies Trust ensured 32 schools across the country were equipped with the best arts provision. Partnerships in Coventry with schools, local authorities and others – culminating in a mass dance event in Coventry Cathedral with 600 children taking part – won us the prestigious Pearson Award and has left tangible and lasting benefits to communities in the region.

Alongside the work on our Covent Garden stages, our front-of-house activities continue to grow. Last season we held more than 200 events in-house: Family Sundays, Insights talks, tours and workshops, and other events that bring to life the amazing story of the Royal Opera House – we had 1,300 tours of the venue alone with 20,000 attendees. The building has firmly established itself as far more than a theatre and with our new Piazza restaurant and our range of bars and cafes it has become a leading all-day destination in the heart of London's West End, open to all.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

The full-scale reopening of the House with a complete season of performances after the dark days of the pandemic has been a thrilling and joyous experience for visitors and staff alike. The perilous financial and geo-political backdrop has made us more aware of what a vital institution we have in our stewardship. We are committed to maintaining it as a home for great opera and ballet that is available to all in perpetuity. We strive to achieve artistic excellence, financial stability, a diversity of work and institutional makeup and a resilience in the face of the inevitable challenges that lie ahead. The support and vision of our chairman Sir Lloyd Dorfman and our Board of Trustees at such a critical time for the Royal Opera House, and for the arts in general, is vital, as is the contribution of our staff, supporters, Friends, audiences and partners in government, Arts Council England and beyond without whom none of what we do would be possible.

Alex Beard CBE 21 March 2024

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

WHO WE ARE AND WHAT WE DO

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Our mission

Our mission is to enrich the cultural life of the nation by growing the public enjoyment and appreciation of exceptional ballet and opera.

Our vision

We aspire to be a global centre of excellence for the great art we produce and for the inclusive way we do it. We want to grow our reputation still further, demonstrating our social and environmental responsibility.

How we achieve our mission and vision

We are home to three of the world’s great performing art companies: The Royal Ballet, The Royal Opera and the Orchestra of the Royal Opera House. We tell stories that speak to the universal themes that move us all (love and hate, revenge and reconciliation, hope and fear), from the great works of the past to new commissions, reflecting contemporary culture and concerns. Our theatres are in London’s Covent Garden but our work is accessed and experienced across the UK and globally through touring partnerships, cinema programmes, radio, TV and online-streaming.

We aim to be a leading artistic force that takes calculated risks, both to invest in the art forms of the future and to sustain the existing repertory for new audiences. We work with leading creative teams and performers from around the world, consistently achieving the highest standards of stagecraft, and embedding constant improvement into our processes and culture. We have worked hard to maximise our reach, despite the pandemic, by extending access to our art forms online. The artistic programme stretches beyond our Main Stage and the often more experimental Linbury Theatre, to our foyers and public spaces as well as outside our building.

We have invested in strengthening our capabilities in data generation and analysis to ensure we are capturing and responding to audience feedback, both from those who already engage with our art forms and those who currently do not, so that we have the information we need to continually improve. We are a National Portfolio Organisation, supported by the British public via Arts Council England, and a registered charity, receiving donations from those who share our ambitions, and generating revenues from our audiences and business partners.

Challenges

The ROH (and the publicly funded arts sector) emerged from the challenges of the pandemic only to face another set of equally challenging circumstances with a 20% real-term cut to our public subsidy, changes to audience and consumer behaviour, significant cost pressures due to inflation and the need for significant capital investment in our ageing backstage infrastructure, last ungraded in the late 1990s.

In the short term, we postponed two new opera productions, extended the run of popular revivals and programmed additional Royal Ballet performances in Summer 2023 in place of an overseas tour. Together, these helped balance the year’s budget. However, we must build back the investment in new productions and commissions to sustain our reputation in the longer term, and to ensure a vibrant future for our art forms. All efforts are therefore focussed on increasing commercial revenues, stretching Development income and reducing costs through business transformation. In summary, we plan to address our financial challenges through a Bridging the Gap strategy which includes:

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Royal Opera House Covent Garden Foundation (Limited by guaianteel.. Cornpany Nurnber 00480523. Trustees. report and consolidated financial statetnents. 52 week period ended 27 August 2023. OUR PRIORITIES 12

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Overview

Our overriding objective in 2022/23 was to continue serving audiences with exceptional ballet and opera, supporting our community of staff and artists and evolving our Learning and Participation programmes to have even greater reach and impact across the country. At the same time, and inextricably linked, we have focussed on ensuring the long-term viability of the ROH in the face of the financial challenges described above.

Our priorities included the following:

Artistic Excellence

We consistently reflect today's best people and ideas, appealing to the broadest possible audience.

Outcomes summary: we maintained audience satisfaction; gave new opportunities to diverse creatives and performers; and we continued to develop young talent.

Equality, Diversity and Inclusion

We open up all aspects of the ROH, in the building and through digital channels, so we touch more people's lives and create a deeper sense of belonging.

Outcomes summary: we continued to diversify our audiences and workforce; we extended the reach and impact of our Learning and Participation programme; and we continued to extend our cinema and streaming reach.

- Long Term Financial Viability

We increase income through better exploitation of our brand value, commercial income and fundraising; and we cut costs through greater efficiencies.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Outcomes summary: we grew the financial capacity of our stage, began to evolve our brand partnership income, grew commercial and ancillary spend income and substantially increased income from fundraising.

Resilience

We invest in renewing our building and modernise how we work.

Outcomes summary: we focused on reducing fixed costs; reduced health and safety incidents; focussed on staff satisfaction; and continued to reduce our carbon footprint.

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Royal Opera House Covent Garden Foundation (Limited by guaianteel.. Cornpany Nurnber 00480523. Trustees. report and consolidated financial statetnents. 52 week period ended 27 August 2023. ACHIEVEMENTS 15

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

ARTISTIC EXCELLENCE

Balanced programming

Ballet

The 2022/23 Season comprised a wide range of new commissions, classic and contemporary works with international choreographers working across both stages, offering audiences the opportunity to engage with popular revivals and discover something new. The Royal Ballet was proud to dedicate its Season to the memory of Her Majesty Queen Elizabeth II in honour of her long and distinguished patronage and support since granting the Royal Charter in 1956.

The season opened with Kenneth MacMillan’s Mayerling, marking 30 years since the death of the trailblazing choreographer. His ballets remain as potent as ever for both performers and audiences. Included among the extraordinary interpretations of the dramatic roles were debuts from Vadim Muntagirov as Crown Prince Rudolf and Yasmine Naghdi as Baroness Mary Vetsera.

The world premiere of Light of Passage demonstrated Crystal Pite’s ability to engage through movement with the existential tensions and complexities of human experience. This work was a development of her 2017 creation for The Royal Ballet, Flight Pattern , which had won an Olivier Award. Fittingly, Light of Passage went on to receive a South Bank Sky Arts Award for Dance. Pite’s unique choreographic voice illuminates both stage and studio, giving resonant development opportunity to the dancers. The diversity of cast, from the children to the elders, conductor and singer, made a positive impact.

Diversity was also to the fore in November’s The Royal Ballet: A Diamond Celebration , which included in its central section world premieres from Pam Tanowitz, Royal Ballet Emerging Choreographer Joseph Toonga and Rambert Director/Choreographer Benoit Swan Pouffer. Company First Soloist Valentino Zucchetti also presented a new work. The programme paid tribute to The Royal Ballet’s past and present with excerpts from ballets by Frederick Ashton, Kenneth MacMillan, Wayne McGregor and Christopher Wheeldon, and the presentation closed with the full Company resplendent in George Balanchine’s ‘Diamonds’ from his ballet Jewels .

The Nutcracker brought its customary festive cheer to Covent Garden, although one performance cancellation on Christmas Eve was unavoidable due to train strikes. Peter Wright’s production remains theatrical gold for the performers and gave various exciting debut opportunities to younger members of the Company. Another revival of a cherished heritage classic, The Sleeping Beauty , also enjoyed strong performances across the board. During the second run of the production later in the season, the Company celebrated the 80[th] birthday of Sir Anthony Dowell, the great English dancer, former Royal Ballet Principal and Director and the epitome of grace, lyricism and poetry on stage.

In more recent classics, Resident Choreographer Wayne McGregor’s Woolf Works felt more compelling than ever in this season’s revival. Alessandra Ferri demonstrated again her extraordinary artistic sensibility, with a particularly charged interpretation at her final performances. Principals Natalia Osipova and Marianela Nuñez made soulful impact in their debuts in the lead role and drew an enthusiastic response from audiences. Celebrating the ballet’s 75[th] anniversary, Frederick Ashton’s Cinderella returned to the Royal Opera House stage after over a decade. The ballet was given a new lease of life in a vibrant new production for today’s generation of performers and audiences. This co-production with the National Ballet of Canada proved the brilliance of the producing and technical teams who had worked tirelessly to get the new production stage ready, and it was particularly rewarding to see the ballet perform in second place nationally at the box office at its live cinema relay.

In other positive broadcast news, The Royal Ballet’s World Ballet Day content in November 2022 reached a new record of over 174,000 views across YouTube, Facebook and TikTok.

The season closed on the Main Stage with a mixed programme featuring associated choreographers of The Royal Ballet past and present. A world premiere of striking geometric beauty by Wayne McGregor, Untitled,

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

2023 , continued to explore new territory, featuring among its creative team Icelandic composer Anna Thorvaldsdottir, the late Cuban-American artist Carmen Herrera, fashion house Burberry and its Chief Creative Officer Daniel Lee, and lighting designer Lucy Carter. Corybantic Games by Artistic Associate Christopher Wheeldon received its first revival since its premiere in 2018 and proved itself an exhilarating exercise in pure dance again with music by Leonard Bernstein and costumes by fashion designer Erdem Moralioglu. Kenneth MacMillan’s Anastasia Act III was dedicated to the memory of the late ballerina Lynn Seymour and her exceptional artistry, with Company principals Natalia Osipova and Laura Morera giving dramatically compelling accounts of the psychiatric patient Anna Anderson. The ballet made for a fitting showcase of Morera’s expressive prowess for her final Royal Opera House performance as a Principal.

The Royal Ballet then made its first full Company tour since before the pandemic and was welcomed warmly in Japan, a country where audiences are so informed about dance and also the repertory of The Royal Ballet. The breadth and depth of their artistry were demonstrated in sold-out performances across Tokyo, Osaka and Himeji in a wide programme including MacMillan’s Romeo and Juliet , Ashton’s A Month in the Country , Balanchine’s ‘Diamonds’ and an array of historical and contemporary Royal Ballet works.

The Linbury Theatre presented strong work artistically during the season. Ruination was created by Lost Dog and produced by The Royal Ballet with a 22-show run throughout December. The production was a great success and box office was well over target with most shows sold out. Featuring a diverse cast and creative team, it provided a valued opportunity to work with a small independent dance company and a fantastic team of freelancers and to demonstrate the artistic possibilities of the Royal Opera House’s second stage. Different forms of access performances were trialled during the run, including relaxed and BSL-interpreted performances, with a touch tour pre-show and audio description.

Another highlight was the return of American choreographer Pam Tanowitz to the Linbury Theatre – an engaging presence when working with the Company – presenting a revival of her Royal Ballet creation Everyone Keeps Me with a new work entitled Secret Things, alongside a filmed version of Dispatch Duet from November’s Diamond Celebration . The return of Acosta Danza, Ballet Black and Northern Ballet provided good opportunities for emerging choreographers and the introduction of new work to Linbury audiences. As part of a co-production between The Royal Ballet and Studio Wayne McGregor, dancers of Company Wayne McGregor were welcomed to the Linbury Theatre to present the world premiere of McGregor’s UniVerse: A Dark Crystal Odyssey . The epic adventure of Jim Henson’s cult film was reimagined in the context of today’s ailing planet and the original story’s ecological overtones were starkly relevant.

Draft Works continued as a valuable choreographic platform with the subsequent International Draft Works demonstrating strong collaborative spirit between all the young dancers and choreographers involved. The companies this year comprised Joburg Ballet, Norwegian National Ballet 2, Polish National Ballet, Royal Danish Ballet, The Royal Ballet and Scottish Ballet. The residency included lighting, music and dance critic and choreographer feedback discussions. The fostering of emerging potential was also in evidence in the Linbury with the presentation of young performers in the Next Generation Festival , uniting junior companies and premier dance schools from the UK, across Europe and around the world.

This brought the impact of dance on young lives full circle, following a demonstration of dance in the community earlier in the season. Performances in Doncaster, originally scheduled for before Covid took hold, took place at Cast Theatre in September. As well as demonstrating The Royal Ballet at its finest, the accompanying mass dance performance involving 300 local school children highlighted the invaluable work of the Learning and Participation team in improving arts provision and advocating for the role that dance and music can play in improving the lives of young people. The initiative with Cast and Doncaster Council, supported by Doncaster Creates, grew from a first conversation with Ed Miliband and stretched to work with 3,500 children, 100 schools and 200 teachers.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Opera

2022/23 marked the second full season since the pandemic (and the first season to avoid any pandemicrelated cancellations since March 2020). At the heart of The Royal Opera’s programming was a desire to combine the old and new, reviving much loved productions to an exceptional standard while boldly reimagining other works in new productions alongside ground-breaking new commissions.

The Royal Opera’s Season opened in September with a new production of Verdi’s Aida , directed by Robert Carsen. Elena Stikhina sung the title role alongside Francesco Meli as Radames, with Solomon Howard and In Sung Sim making their Royal Opera debuts. This landmark contemporary reinterpretation also marked Antonio Pappano’s 20[th] anniversary as Music Director. The opening run was followed by a revival in May 2023, this time conducted by Mark Elder, with Angel Blue and SeokJong Baek (fresh from his extraordinary success in Samson et Dalilah in 2021/22) in the two principal roles. As an important repertory piece, this new version will continue to delight audiences in future seasons.

Continuing The Royal Opera’s recent emphasis on composers whose work debuted in Covent Garden, Richard Jones directed a new production of Handel’s late comic-drama masterpiece Alcina . An extraordinary cast included Lisette Oropesa in the title role, alongside Emily D’Angelo and Mary Bevan. Critical response was enthusiastic, and indeed the production was recognised at the Olivier Awards, winning the award for New Opera Production. Antony McDonald, long-term collaborator with The Royal Opera, was also nominated for Outstanding Achievement in Opera for his set and costume designs on the show.

Kaija Saariaho’s new opera Innocence made its UK premiere in April 2023, directed by Simon Stone, and was a resounding success. New commissions are a vital component of any successful opera house and form a vital pillar in the ROH’s future.

The Royal Opera’s commitment to diversify creative teams continued this season, with half of the new productions on stage created by female directors, including Rusalka directed by Natalie Abrahami and Ann Yee, with Semyon Bychkov conducting. Asmik Grigorian led a remarkable cast, with British principals David Butt-Phillip and Sarah Connolly in leading roles. The production put sustainability at its centre, with set pieces designed to incorporate recycled materials, and was an invaluable learning opportunity for embedding sustainable producing in our practice.

Deborah Warner directed a viscerally powerful new production of Alban Berg’s 20[th] century masterpiece Wozzeck . Christian Gerhaher performed the title role alongside Anja Kampe as Marie to resounding critical and audience acclaim.

The final new production of the season was Adele Thomas’ new production of Verdi’s Il Trovatore , continuing her association here on the main stage after well-received productions of Berenice and Bajazet in the Linbury. Marina Rebeka and Rachel Willis-Sørensen shared Leonora while Riccardo Massi and Gregory Kunde performed Manrico, alongside Ludovic Tézier appearing and Jamie Barton, all under Antonio Pappano’s baton.

Revivals this season included many well-known favourites: Don Giovanni , M adama Butterfly , La bohème , Tosca , Die Zauberflöte , Il barbiere di Siviglia , Turandot , and Le nozze di Figaro . Rarer titles included Salome , Tannhäuser , Don Carlo , and Werther . Among a cohort of excellent singers who appeared across the season, highlights included: Christopher Maltman, Maria Bengtsson, Charles Castronovo, Elīna Garanča, Carlos Álvarez, Juan Diego Flórez, Natalya Romaniw and Freddie De Tommaso (marking the first British couple to sing as Tosca and Cavaradossi in decades), Erwin Schrott, Lise Davidsen, Gerald Finley, Lawrence Brownlee, Bryn Terfel, Anna Pirozzi, Christopher Purves and Jonas Kaufmann. The Royal Opera also welcomed back conductors Alexander Soddy, Daniel Oren and Keri Lynn-Wilson, with Rafael Payare, Kevin John Edusei, Susanna Mälkki and Joana Mallwitz making their debuts. Former Jette Parker Artists Filipe Manu, Aigul Akhmetshina and Masabane Cecilia Rangwanasha shone in principal roles, and we look forward to welcoming them back soon.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

The Linbury Theatre presented two landmark new opera commissions on stage. Guildhall School of Music’s Composer-in-Residence Oliver Leith composed Last Days , based on the 2006 film by Gus Van Sant. Directed by Anna Morrissey and Matt Copson the production was extremely popular, and attracted hire interest from across the world. Bushra El-Turk composed Woman at Point Zero , based by on the book by Nadal el Sadaawi and produced in collaboration with a network of European companies and Shubbak Festival, the UK's largest festival of contemporary Arab culture. Initially developed in 2017, the piece fused Middle Eastern and western classical instruments, resulting in a unique sound world.

Additionally, building on the success of our recent Britten cycle ( Billy Budd , Death in Venice , Peter Grimes ), Oliver Mears directed a new production of The Rape of Lucretia , in partnership with Britten Pears Arts. Featuring a cast mainly of Jette Parker Artists, this marked Mears’ first production in the Linbury Theatre. The Jette Parker Artists Programme also produced a staging of Handel’s rarely performed Arminio , directed by Mathilda du Tillieul McNicol. Finally, a film-opera collaboration closed the Linbury Season in July with History of the Present . Writer Maria Fusco, award-winning filmmaker Margaret Salmon and experimental composer Anna Lockwood joined forces to create a film concerning working-class women’s voices in Northern Ireland.

Championing Talent

The Royal Opera House employs more artists than any other UK arts organisation and works with a large network of over 2,000 freelance creatives, singers and other performers. At the heart of our creative output are our three permanent ensembles: The Royal Ballet, The Royal Opera Chorus and the Orchestra of the Royal Opera House with their international reputation for dramatic and musical excellence.

Specific talent development programmes include the following:

Youth Opera Company

Our Youth Opera Company programmes provide children aged 7–13 with rigorous music and drama training, creative projects and the chance to perform in world-leading opera productions with The Royal Opera.

Jette Parker Artists

The first Jette Parker Artists cohort was established in September 2001 as a company of six singers. In 2002 positions for conductors, répétiteurs and pianists were added to the programme, with stage directors joining in 2008. The 2022/23 Season featured four singers, three stage directors and three conductors/répétiteurs. In total almost 200 artists have been though the programme since its inception, including many who have gone on to become major international stars.

New and underrepresented artists

We are committed to increasing the diversity of our creative programmes, and the people who create and perform them. Specific programmes we ran in the year included the following:

Engender

Engender addresses gender imbalance in opera and music theatre, working with leaders, opera makers, creatives, performers and changemakers. It is a place for women and non-binary people to connect and support each other, to amplify their work in the opera field and to have a collective voice. The network provides space and opportunity for personal and professional development, peer support and the creation of new work, with members across the UK, EU, USA and further afield, including a chapter in South Africa.

Overture Orchestra mentoring scheme

The ROH mentorship pilot was launched in the 2023/23 Season in partnership with Black Lives in Music. It was aimed at young musicians aged 18–25 who may not have had access to any formal training at music

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

college, conservatoires or university. The scheme was developed to help break down any traditional barriers to experiencing classical music – which could be racial, socio-economic or geographical – broadening the available pathways into the industry. We offered 18 mentees this opportunity in two cohorts over the season and the programme was tailored to the individuals’ needs, enhancing skill sets and insights and offering training including one-to-one lessons with mentors and mock auditions.

Data informed programming

Over the last couple of years, we have evolved our evaluation methodology. The Executive Team meets regularly to review all productions against a set of key criteria including:

EQUALITY, DIVERSITY AND INCLUSION

Inclusive workforce

Our People Plan for 2022/23 set out how we would respond to the challenges of the pandemic years and reconnect with our community of staff, artists, casuals and freelancers. Achievements included:

National participation

Our Learning and Participation programmes significantly extended their reach and impact. Brief summaries of the key programmes are below.

Create and Dance

----- Start of picture text -----
Programme 2022/23 impact
----- End of picture text -----

Programme
2022/23 impact		 Programme
2022/23 impact
Designed to excite children about ballet and improve the quality
and quantity of creative dance in primary schools nationwide.
We build the creative confidence of teachers to inspire the
creativity of young people, through digital and in-person training
and CPD for teachers, and digital resources for use in the
classroom.		 524 teachers from 328 schools.
Additional 143 freelancers, teacher trainees and apprentices
who work across multiple schools.
14,679 children participated across the year and in culmination
events.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Create and Sing

----- Start of picture text -----
Programme 2022/23 Impact
Designed to excite children about opera and improve the quality 552 teachers from 350 schools.
----- End of picture text -----

Designed to excite children about opera and improve the quality 552 teachers from 350 schools.
and quantity of dramatic singing in primary schools nationwide.
We build the creative confidence of teachers to inspire the
creativity of young people through digital and in-person training
and CPD for teachers, and digital resources for use in the
classroom.		 Additional 26 freelancers who work across multiple schools.
13,816 children participated across the year and in culmination
events.

Create and Design

----- Start of picture text -----
Programme 2022/23 impact
----- End of picture text -----

Programme
2022/23 impact		 Programme
2022/23 impact
Links the National Curriculum for Design & Technology and Art
& Design at Key Stages 2 and 3.
Through in-person and digital CPD and digital resources, the
programme fosters design skills among young people, including
costumes, sets, props, hair, wigs and make-up and marketing
materials.		 4,520 children participated across the year and in culmination
events.
244 teachers trained at 121 schools.

Chance to Dance

----- Start of picture text -----
Programme 2022/23 impact
Long-established programme (over 30 years), now working 1,140 children in year 3, aged 7-8 years, from 19 primary
----- End of picture text -----

Programme
2022/23 impact		 Programme
2022/23 impact
Long-established programme (over 30 years), now working 1,140 children in year 3, aged 7-8 years, from 19 primary
nationwide with a focus on areas of socio-economic deprivation
and Arts Council England Priority Places outside London.
Through brokering partnerships with private dance schools and
primary schools we reach new participants and encourage
creative and inclusive practice. This inspires young people to
discover and take part in ballet and affects long term change in
teaching of ballet.		 schools. [Note: this season we are building up to five regions –
last season we were still working in four regions, so the figure is
not as high as we had hoped].
Focused on areas with high proportions of socio-economic
deprivation and a lack of equitable access to the arts (included
Essex, Thurrock, the West Midlands (Wolverhampton, Walsall,
Nuneaton, Bedworth and Dudley), Doncaster, and expanded to
the North East (Gateshead and Northumberland).
Integrated Special Educational Needs (SEND) groups into the
end-of-season performance.
104 bursaries to enable attendance at local dance schools.

In addition, we presented six Schools’ Matinees, enabling schools from across the country to attend special events at the ROH and experience opera and ballet performances. Travel grants are available, plus dedicated access support to enable all schools to visit. Across the season, 10,000 children attended.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Audience development

Box office occupancy returned to pre-Covid levels at 96% (83% financial capacity achieved) with 59% of all bookers were new to the ROH.

We diversified audiences through various means including maintaining 30% of tickets for the Main Stage priced at under £50 (25% under £35) and through our Young ROH scheme (over 70,000 tickets sold to members across the season).

One key outcome has been that our audiences are getting younger with those aged 20-29 now being our largest demographic, and with the greatest growth since pre-pandemic, as shown below.

In terms of ethnic background mix, we estimate that between 5% and 10% of our audiences are from Global Majority backgrounds. This season, we have launched a new project to improve our audience demographic data methodology, working closely with others in the sector.

LONG-TERM FINANCIAL VIABILITY

We developed a Bridging the Gap strategy, approved by the Board of Trustees, to address cuts in public funding and increased inflation. As shown in the financial sections below, we made significant progress in increasing development and enterprises income and we are investing in business transformation to reduce costs, but there is still a long way to ensure our financial future.

The strategy as it stands is summarised in the table below.

Area Timings No 1 Risk/Consideration
#1 - Development Income New strategy approved by the
Board in June 2022. Target to
be fully included from 25/26.		 Future planning information on programme and
details on Capital Plan to enable applications.
#2 - Commercial/Brand Partnerships Board-approved strategy in
place. Incremental growth
towards target up to 2025/26.		 Developing clearer understanding of our assets.
#3 - Box Office Pricing Initiated test-and-learn
analysis to determine pricing
for 24/25 budget.		 Test-and-learn outcome (ticket buyer response).

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

#4 - Business Transformation Board-approved strategy
initiated. Roll out over next two
seasons.		 Availability of upfront investment.

RESILIENCE

Security

We strengthened systems, processes and behaviours to increase the physical and cyber security of our building and technology systems.

Specific areas of progress include:

Stages, buildings and equipment

Our last major building infrastructure upgrade was carried out almost 25 years ago, and we need investment of at least £50m over the next three years just to keep the building open and operational, part of £200m required over the next decade (Arts Council England scored us High on risk in our NPO application for this reason).

The renewal of end-of-life equipment that was installed in 1999 is the key driver. We have been working on that for the last five years, focussed on what is most fundable, such as replacing surtitles, upgrading the Sound and Broadcast suite, and refurbishment of the Chorus Rehearsal Room.

Environmental sustainability

The climate crisis is the most important issue facing the globe today. Recognising our international reach and leadership role within the UK arts sector, we have embraced our responsibility and obligation to reduce our greenhouse gas emissions. It is the ambition of the Royal Opera House to be a leader in environmental sustainability and to act as a catalyst for positive change in our industry.

Our environmental policy commits us to net-zero carbon emissions for scopes 1 and 2 (gas, electricity and fleet vehicle emissions) by 2035. We will also be publishing targets for scope 3 emissions (waste, water, transport, purchasing etc.) by 2025; these targets have been established and will be tested in the 2023/24 Season. We have an Environmental Strategy and an Energy Strategy, with a supporting Sustainability Action Plan. This plan is a living document, updated frequently to ensure that we remain on track to deliver on our ambitions.

Throughout the 2022/23 Season we have continued our efforts to reduce our gas, electricity and water consumption. We have made 4.8% reductions in carbon dioxide equivalent (CO2e) emissions from electricity consumption, 11.5% reductions in CO2e emissions from gas consumption and 15.5% reduction in emissions associated with water use and treatment. These savings have been made through careful monitoring, adjustments and improvements and we have continued to invest in small to medium scale projects to make our energy use more efficient. We are now considering the best steps forward for our gas systems and are working with consultants and Julie’s Bicycle to progress to the next stage.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

We have also been focussing on waste. One of our Scope 3 trial targets relates to reducing waste production and our existing waste target is for our waste to be over 70% recycled or composted. Since January we have been successful with our recycling and composting but have yet to see a material reduction in waste production. However, we encourage the reuse of items within ROH and donation of useful items to local schools, charities, businesses and individuals, and will continue to work on this area.

As noted above, our new production of Rusalka was used to test implementation of the principles of the Theatre Greenbook. This was the first production for which we had attempted to calculate a carbon footprint, and the process taught us a great deal. For the 2023/24 Season we will now be creating sustainability reporting for each production with lessons learned transferred across all new productions.

Ensuring that all staff and artists within the organisation are engaged with sustainability is an ongoing objective. During 2022/23 the Executive Team undertook Carbon Literacy training. A shorter, interactive training session is now being rolled out to all staff. ROH staff are active members of the Theatre Greenbook advisory committees and the Westminster Sustainable City Charter committees. Through these groups we aim to pass on lessons learned, develop networks and influence other organisations to help us all move towards more sustainable operations.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Streamline Energy and Carbon Reporting

In accordance with the requirements of Streamlined Energy and Carbon Reporting (SECR) imposed by the 2018 SECR Regulations, we are required to disclose the following energy and carbon information for the reporting year 1 September 2022 to 31 August 2023.

Scope 1 : Emissions from combustion of Gas tCO2e 2023: 1,088 (Energy consumption: Gas 5,944,962 Kwh) 2022: 1,258 (Energy consumption: Gas 6,892,888 Kwh) 2021: 1,334 (Energy consumption: Gas 7,281,114 Kwh) 2020: 1,127 (Energy consumption: Gas 6,127,551 Kwh)

Methodology : Location Based Tonnes of CO2 equivalent (tCO2e) are calculated from the product of the invoiced gas consumption in kWh during the previous reporting period and the 2023 UK Government GHG Conversion Factors for Company Reporting (version 1.0) for 'Natural Gas'

From 1st October 2022 ROH has purchased Carbon Neutral Natural Gas as part of their Gas supply contract provided by Total Energies Ltd. For more information please visit https://business.totalenergies.uk/carbon-neutral-energy Scope 2 : Emissions from purchased electricity tCO2e 2023: 1,903 (Energy consumption: Electricity 9,188,290 Kwh) 2022: 1,801 (Energy consumption: Electricity 9,313,635 Kwh) 2021: 1,478 (Energy consumption: Electricity 6,960,717 Kwh) 2020: 1,748 (Energy consumption: Electricity 7,498,289 Kwh)

Methodology : Location Based Tonnes of CO2 equivalent ( tCO2e) are calculated from the product of the above stated electricity consumption in kWh during the previous reporting period and the 2023 UK Government GHG Conversion Factors for Company Reporting (version 1.0) for 'Electricity Generated/Electricity: UK'

Market Based Emmissions are reported as 0 due to the fuel mix of the electricity purchased, as defined by the suppliers' fuel mix. Drax fuel mix: 100% REGO Backed Renewable Electricity https://energy.drax.com/support/fuel-mixdisclosure/ Scope 3 : Emissions from business travel in rental cars or employee-owned vehicles where company is responsible for purchasing for fuel tCO2e 2023: 6 (24,606 miles) 2022: 2 (8,594 miles) 2021: 3 (9,672 miles) 2020: 13 (47,080 miles)

Methodology : tCO2e calculated from the total mileage expenses claimed during the period (as stated above) multiplied by the 2023/2022/2021/2020 UK Government CHG Conversion Factors for Company Reporting (version 1.0) for an Average Car and specified fuel type

Intensity Ratio : tCO2e gross figure based from mandatory fields (tCO2e/m2) 2023: 0.0540 2022: 0.0570 2021: 0.0506 2020: 0.0520

Methodology : The intensity ratio stated above has been calculated as Tonnes of CO2e per total square metres of useful floor area (57,438 m2)

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

During the 2022/23 Season the ROH has continued to focus on reducing energy consumption. A number of small to medium scale projects have been undertaken to reduce gas, electricity and water use including heat and light controls, improved insulation, inverter drive controls and extended metering. The ground source heat pump at the Bob and Tamar Manoukian Production Workshop in Thurrock has also been upgraded to provide more efficient heating and cooling. Further projects are planned for 2023/24 and we continue to progress with planning for our longer-term, large-scale projects to decarbonise our buildings. It is still our intention to reach our goal of net-zero carbon emissions for Scopes 1 and 2 by 2035.

Comparison of SECR reporting periods 1 Sep 2022–31 Aug 2023 with the previous year shows a decrease in electricity consumption by 125MWh, or a reduction by 1.4%. However, the energy mix used to generate the electricity within the national grid system contained a higher proportion of fossil fuels than in previous years, which has resulted in the conversion factor used to calculate the CO2e emissions being higher than in 2021/22. This means that when compared with last season, there has been an increase in emissions of 102 tCO2e; this is an increase of 6%. The emission factors are outside of the control of ROH but we will continue to work to reduce our electricity consumption year on year.

Gas consumption during 2022/23 decreased by 948MWh compared to 2021/22. This is a reduction of 13.8%. Emissions from gas decreased by 170tCO2e compared to the previous year, which is a 14% reduction. Comparison with 2018/19 shows a 28% decrease in emissions from gas consumption; we have worked hard to maintain this pace of reduction and continue to be committed to reducing our gas emissions.

Across the whole estate in 2022/23, electricity accounted for 61% of total annual energy demand and natural gas accounted for 39%. This composition of energy use is changing annually and reflects the projects we have undertaken and our reduction in gas use; the balance previously being 53% electricity and 47% gas in 18/19. It is intended that this composition will continue to move more towards electricity as we attempt to decarbonise our energy consumption.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Finance and Governance

The Royal Opera House strives to present an ambitious programme of work while balancing its books on unrestricted general funds in each full financial year.

The results for the period are set out in the consolidated statement of financial activities. Note 1 to the financial statements sets out the basis on which these financial statements have been prepared.

The Board of Trustees received Management Accounts at each Board meeting. The ROH’s forward plans include a set of outcomes and related KPIs, agreed with the Executive team and Board of Trustees. KPIs included: public engagement across performances, digital activity and learning and participation initiatives; diversity of audiences, participants, staff and artists; results against budget; and environmental performance. Performance against the KPIs is reviewed in detail at the end of each year.

As well, Arts Council England receive Management Accounts and cashflow reports on a monthly basis, enabling them to closely monitor progress against financial targets throughout the year.

The important continuing investment from Arts Council England enables the undertaking of a range and depth of work and investment in new work, artist development, craft excellence, engagement and access, which could not be sustained otherwise.

In the 2022/23 Season we continued to rebuild our post-pandemic levels of activities, engaging audiences and participants across our performances and other programmes: whilst our Main Stage programme of performances was back to normal from 2021/22, it was only in 2022/23 that we achieved that for the Linbury Theatre programme, Learning & Participation and other events. Overall, despite a few lost performances across the season, we achieved 93% occupancy and delivered 83% financial capacity due to changed audience booking behaviours and some discounting.

All trading income lines exceeded targets and we launched our streaming platform. As stated previously, we benefitted from the extension of the higher rates of relief for Theatre Tax Credit, a vital support to our post pandemic recovery. As for our costs, like others we were faced with the impact of prolonged higher rates of inflation, 3x increase in our utilities costs, and upward pressure on salaries, all of which had significant implications for a business that runs on tight margins.

Looking ahead, we will continue to face challenging financial pressures including inflation which although less than it was, is still significantly above the 2% Bank of England target, and we still have three years to run on our reduced grant from Arts Council England. We are also in the early phase of implementing plans for critical long-term investment in the fabric of our stage infrastructure and our building which is necessary to mitigate risks of equipment failure which could lead to performance cancellations, to protect the heritage of our Grade I listed building, and to ensure our spaces remain fit for purpose, welcoming and safe for the 1m people who come through our doors each year, both ticketed and non-ticketed alike .

Our mixed funding model is a strength – comprising public and private support, box office, and other commercial activities – and we will make the best use of our diversified income sources at a time of ongoing economic uncertainty. We already generate the vast majority of our own income (our ACE grant accounts for 15% of our total unrestricted income), and through our Bridging the Gap strategy we will focus on increasing commercial revenues, stretch fundraised income and reduce operating costs through business transformation, all while staying committed to our core objectives and mission.

As a National Portfolio Organisation (NPO), a grant of £23.6m ( 52 week period ended 28 August 2022: £24.5m ) was received from Arts Council England, representing 15% of total (unrestricted) income ( 52 week period ended 28 August 2022 restated: 22% ). The Royal Opera House is one of only four National Portfolio Organisations to be awarded funding from Arts Council England to lead the Bridge programme for Bedford Borough, Central Bedfordshire, Luton, Hertfordshire, Essex, Thurrock, Southend, Dartford, Gravesham, Swale and Medway. Funding of £0.7m was received in the current year ( 52 week period ended 28 August 2022: £0.7m ).

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Excluding income within the Endowment, fundraising income targets of £27.7m ( 52 week period ended 28 August 2022: £31m ) were set against fundraising activities in the development department for the period and these targets were exceeded with funds raised of £33.4m ( 52 week period ended 28 August 2022: £34.5m ).

Our trading subsidiary, Royal Opera House Enterprises Limited, recorded an operating profit before tax of £5.0m for the 52 week period ended 27 August 2023 (52 week period ended 28 August 2022: £2.8m). Given the overall business model, these figures are now either ahead of or back in line with results pre-Covid 19.

The overall result for the group Unrestricted general funds was an increase of £0.04m from the previous year. Unrestricted general funds at 27 August 2023 were £4.2m (52 week period ended 28 August 2022: no change) after transfers from Restricted funds of £0.6m (52 week period ended 28 August 2022: £0.6m restated) and net transfers to Unrestricted Designated funds of £10.0m (52 week period ended 28 August 2022: net transfers from Unrestricted Designated Funds of £0.9m). Refer to Note 17 on pages 75-76 for details.

At 27 August 2023 unrestricted funds were £222.9m (28 August 2022: £212.9m) before Unrestricted pension reserve deficit of £12.8m (28 August 2022: £14.2m). There is £218.3m (28 August 2022: £208.4m) held in Unrestricted Designated funds.

At the end of the period Restricted fund balances were £9.2m (28 August 2022: £9.6m restated). For further details refer to Note 27. At the end of period the Endowment fund balance of £52.3m (28 August 2022: £46.4m restated) is represented by restricted capital assets of the Royal Opera House Endowment Fund 2000.

The Royal Opera House group held positive cash and short term deposit balances throughout the period. Unrestricted cash held at the period end was £80.8m (28 August 2022: £79.5m), which included advance bookings held at the period end of £11.1m (28 August 2022: £10.8m) . The overall increase in cash balances, including those with a notice period of 6 months, was a result of the return to pre-Covid-19 business levels and the impact on working capital.

Reserves

The Trustees regularly review reserve levels, and designated the following amounts at the period end:

The level of free reserves (represented by the Unrestricted General fund) at 27 August 2023 of £4.2m (52 week period ended 28 August 2022: £4.2m) equates to only 2.8% of current unrestricted incoming resources. The Trustees agree that a higher level of reserves is desirable in order to protect against reductions in box office and fundraising income, economic uncertainties, unforeseen events and further reductions in public funding. The Trustees review the level of free reserves annually, and considering the financial model of the charity, core expenditure and levels of cash held in advanced bookings, have determined that a target level of free reserves of £10m is appropriate, and this has been the target for the last several years. Trustees acknowledge, however, that any increase to free reserves over the next two to three years will be unlikely due to the impact of the challenging economic environment, including inflation, on the business model and to the identified needs for the programme of estates works. As the current financial strategy is to budget for a minimum £4m contingency in annual budgets while building designated funds for specific, future, longer term planning, the Trustees will also consider increases to the free reserves when possible in order to make progress towards the £10m target.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

The total funds held at 27 August 2023 was £271.7m (28 August 2022: £254.7m). The designated Future Projects Fund (£42.2m) is likely to be spent in the next two years, in line with our urgent capital investment needs.

Levels of unrestricted funds, both current and forecast, are monitored closely to ensure they remain at an adequate level in order to provide financial flexibility and a buffer against operational risk.

Pension scheme

In line with the requirements of FRS 102 S28 ‘Employee Benefits’, the Royal Opera House defined benefit Pension Scheme liability and related costs are included in these financial statements. Within the Statement of Financial Activities employer contributions as determined by the actuary are recorded as an operating cost in the unrestricted general fund. The charge to the Statement of Financial Activities is £0.4m less than contributions (52 week period ended 28 August 2022: £0.7m less than contributions), in accordance with FRS 102 (refer to note 31 of the financial statements). The actuarial gain, net of actual return less interests on plan assets for the period was £0.9m (52 week period ended 28 August 2022: £15.2m). The net pension liability at the period end was £12.8m (28 August 2022: £14.2m), with the improvement from the prior period driven by the significant rise in the discount rate in excess of returns on scheme assets, all as part of the actuarial assumptions. It is important to note that the liability represented by this value (being based upon actuarial assumptions) will alter in response to changes to the future funding and structure of the pension scheme (as well as to economic and investment market conditions) and does not crystallise in the short or medium term.

Investment powers and policy

Under the Memorandum and Articles of Association, the charity has the power to invest funds not immediately required for its purposes in such investments, securities or property as may be considered appropriate by the Trustees. Aside from balances held with the Royal Opera House bankers, Coutts & Co. monies are only invested in funds that are regulated by the FCA.

The Trustees of the Royal Opera House Endowment Fund 2000 have no restrictions on their investment powers and are permitted to invest and reinvest the Trust Fund, providing the objectives and purposes of the charitable fund are met, and subject to such consents as may be required by law.

The Trustees reviewed and agreed an Investment Policy in line with the Charity Commission Guidance CC14. This is not shown in full in the accounts but a summary of the key investment objectives are as follows:

To achieve the above objectives, the Trustees have set the investment benchmark of a blended return of CPI +3.5% on a rolling basis.

In line with more general market performance, the investment managers, Stonehage Fleming Investment Management Limited, Troy Asset Management Limited and Newton Investment Management Limited, have not achieved the benchmark for this year. Net of investment management fees it has achieved a combined capital growth and income return net of investment management fees of 1.56% for the year ended 31 August 2023 (year ended 31 August 2022 decrease of 1.82%). The return for 2023 did not exceed the blended target of CPI plus 3.5% (10.2%). Investments with Stonehage Fleming which are long term in nature are being progressively wound down.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Going Concern

The Trustees must satisfy themselves as to the Royal Opera House’s ability to continue as a going concern for a minimum of 12 months from the signing of the financial statements. The Board of Trustees have considered business plans and budgets based on an artistic programme of activity to August 2025, supplemented by outline plans in other areas. These plans show the impact of the challenges ahead given the reduction in ACE funding from April 2023, the external environment and the impact of inflation, and in the Board’s assessment of going concern they have taken into consideration whether the Royal Opera House has adequate resources to meet its obligations as they fall due in and beyond the 12 months from the date of approval of these financial statements.

In assessing going concern, the Board considered the financial impact of any shortfall in fundraising and trading income, and the impact of further increases on costs in excess of current plans. Whilst the Trustees are confident that these risks have adequate mitigation to ensure the ROH remains a going concern, the modelling shows that there is sufficient liquidity to August 2025 excluding mitigations.

After consideration of the scenarios, the Trustees consider that the Royal Opera House (Group and Parent Charitable Company) has adequate resources to continue in operational existence for the foreseeable future being a minimum of twelve months from when these financial statements are approved. For this reason, the financial statements of the Group and Parent Charitable Company have been prepared on a going concern basis.

2022/23: Risk Management approach

During the period the Trustees have operated a risk management strategy which comprises:

The governance and management of risk is divided between Strategic risk and Operational risk.

Strategic risk is reviewed by the Executive at meetings regularly throughout the year and is linked to the ROH Plan. The Executive considers each risk against its agreed risk appetite and reviews existing mitigations and planned actions. Operational risk is reviewed and updated by the Operational Risk Group which meets three times a year and operates under clear terms of reference. The membership of the Operational Risk Group is made up of senior managers from across the Royal Opera House with representation from all departments. The Chief Financial Officer attends the Operational Risk Group meetings and a regular report is produced and discussed with the Executive. Additionally, risk is reviewed across specific projects and monitored regularly throughout the year including Health & Safety, Capital & Estates, Planning & Scheduling, major projects including ROH Stream, as well as an extensive risk assessment regime throughout the organisation.

Strategic Risks

At its annual review of risk management, the Board discussed the strategic risks and assured themselves of the adequacy of controls and mitigations in place. These are listed below:

1.
 Access to diverse and
creative talent		 Inability to attract and work with exceptional talent to deliver a high-
quality programme owing to insufficient/inadequate training pathways,
inability to pay competitive fees and salaries, post-Brexit visa regime,
reputational concerns or reduction in range of repertory.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

----- Start of picture text -----
Mitigated by a range of talent development initiatives (e.g., Jette Parker
Artists for singers and Overture for orchestral players), creative and
workforce diversity strategies, fair pay, new Freelance Community
Charter, advocacy on employment issues and a multi-layered staff
engagement programme.
2. Reputation Perceived drop in innovation investment, artistic quality and access to
talent, or association with an individual or organisation whose reputation
becomes damaged, impacting all income streams and our ability to
attract talent. Exacerbated by decrease in new work in 2022/23. Also,
Perceptions of irrelevance, including commitment to diversity and
accessibility.
Mitigated by balanced programming supported by:
- Production evaluation process, including tracking audience,
social media and press response.
- Retaining most high-profile new works and prioritising new
commissions.
- Creative diversity central to Company and L&P strategies.
- Increased political engagement across the main political
parties.
- Additional Board support with Lisa Burger now supporting Sir
Lloyd Dorfman on leading EDI
3. Earned income Customer spend not maximised
Mitigated by:
- Box office pricing initiatives to maximise yield whilst continuing
to focus on accessibility.
- Continued innovation and fine-tuning of offer.
- Monthly strategic meetings; mystery shopper; catering
consultant review; strong relationship across senior team.
Reduced philanthropic giving
Mitigated by new strategy in place since summer 2023, including an
advocacy campaign with philanthropy at its heart.
Overall business model unsustainable in future economy
Mitigated by Bridging the Gap strategy in place: grow commercial,
fundraising and corporate partner income and reduce operating costs
via business transformation.
4. Public investment Risks are further reduction in ACE funding from April 2027.
Mitigated through continuing to deliver excellence and public value, and
though enhanced advocacy to make the case for investment in the arts
(and ROH) more cogently (e.g. see the recently published McKinsey
analysis of the economic and social impact of the arts sector – HERE).
5. Cost control Poor cost control risks a growing deficit to the point we can’t deliver our
objectives.
Mitigated by:
- Business Transformation programme including tech, digital
strategy investment, business processes, culture change.
- Strengthened procurement policies and controls, including e-
procurement and tenders.
- A capital / estates plan with cost reduction baked in.
6. Health, safety and Serious injury or fatality; Legal challenge and resulting damages.
physical security
Mitigated by a wide range of measures focused on:
- Inherent risks of theatre (working at height for example).
- Terrorist attack.
- Cyber-attack.
- Organisational culture.
- Resource constraints.
- Working practices and systems.
- Facilities and equipment.
----- End of picture text -----

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

7.
 Capacity to deliver
programme		 Inability to deliver planned programme, including digital, touring and
other related revenue; Loss of staff goodwill, leading to pressure on
industrial relations, retention, absenteeism and costs; Breach of health
and safety.
Mitigated by a wide range of measures focused on ensuring:
-
Effective and sufficient staff resource.
-
Fit-for purpose working practices and systems.
-
Maintenance of facilities orequipment.
8.
 Equipment failure Cancellation of a performance or digital event; Customer dissatisfaction
with digital experience, impacting revenue; Loss of customer records.
Mitigated by a wide range of measures focused on addressing:
-
Technology failure.
-
Estates failures.
-
Stage Equipment failure.
9. Business continuity Impact on business from a global catastrophic event such as another
pandemic, terrorist attack or cyber attack, resulting in an inability to
trade or operate the business.
Mitigated by wide range of measures focused on:
-
Disaster recovery plans for a variety of scenarios.
-
Information technology resilience plans.
-
Business and cashflowplans.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Trustees’ duty to promote the success of the Charity – Section 172 Statement

Section 172 of the Companies Act 2006 requires the trustees to act in the way they consider, in good faith, would be most likely to promote the success of the charity to achieve its charitable purposes.

The Companies Act 2006 requires The Royal Opera House, as a large company, to report on how trustees have complied with Section 172 and other linked matters.

Section 172: the Trustees must promote the success of the charity to achieve its charitable purposes by having regard to:

(A) The likely consequences of any decision long term

The current ROH Plan approved by the Trustees sets out four priorities which are aligned with the investment principles as set out by ACE and the actions and performance indicators for each over the period 2023-27.

These four principles are:

All the decisions made by Trustees are predicated on the desire to achieve these long term aims. The needs of all our beneficiaries: our current and future audiences as well as the many participants in our educational programmes as well as our other key stakeholders: our staff, our freelancers, the Arts Council England and donors, are vital to the success of our strategic plans.

Trustees also keep under review the charity’s principal risks and opportunities and ensure that our plans can adapt to respond to changes as required. These are set out on pages 30-32 of this report.

The new ROH plan was approved by Trustees in 2023.

The Trustees recognise that it is its staff and artists that make the Royal Opera House such a remarkable institution. Considering and protecting their interests is crucial to the success of the ROH and our decisionmaking processes takes this into account.

Three trade unions are recognised with whom we work closely and consult.

It is important for the ROH to ensure that we engage with our customers whether they are audiences in our theatre or the participants in our Learning and Participation programmes or simply those who visit the ROH. The Executive team regularly receives information on the audience feedback as well as detailed feedback from teachers and other educational participants. The ROH also communicates with our audience and those who are part of our membership programmes with targeted information according to their preferences whilst at the same time being mindful of data privacy concerns.

Our procurement function ensures that we deal with suppliers fairly and in a professional manner. We also develop strong working relationships with key suppliers who are able to work with us to best support and maintain our unique building.

Trustees and Management recognise that sustainability and the environment are at the centre of our activities

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

and currently we are continuing work on a sustainability plan being implemented at all levels of the ROH. This is set out on pages 23-26. The ROH also works with both our local community but also communities elsewhere in the UK. We have long term partnerships in Thurrock as well as in Doncaster where we aim to foster community engagement with our artforms. And in addition we have more informal partnerships in Rotherham, Newcastle, Tees Valley, Birmingham, Bradford and Grantham.

The Trustees recognise both that the ROH’s reputation is critical both to its success and that we also have an obligation to maintain the highest standards given our position in the UK arts and charity sectors. Having adopted the Charity Governance Code in 2021 the trustees review this annually as part of their regular governance review.

There are a number of policies in place to promote corporate responsibility as well as ethical behaviour including anti-fraud and bribery, modern slavery, safeguarding, conflicts of interest, bullying and harassment, as well as donation and income acceptance. Summaries of all these policies are available on the ROH website and full versions are available on request.

The ROH Values and Behaviours continue to underpin our recruitment and induction processes as well as how we conduct our activities on and off stage. Our procurement strategy embeds ethical standards in our supply chain as well and health and safety and safeguarding compliance.

We have outlined elsewhere in the report and in this statement how we engage with suppliers, staff, the wider community, customers and other users.

Our donors are a critical part of our success and this has been especially true in the current climate of rising costs including our energy costs and the decrease in our government grant. We continue to actively engage with all our donors at all levels. We receive significant funding from the Arts Council England (ACE) and it is an essential part of our financial wellbeing. We have a strong working relationship with ACE and keep them regularly informed on all aspects of our activities including having a representative attend some Board meetings.

We want to make sure we are able to attract and develop talented people who bring more, precisely because of the breadth of their different backgrounds, experiences, cultures and outlooks.

Recruiting and working with those talented people is just part of the work. We know that we need to create an environment where everyone believes they belong and can do their best work. Achieving inclusion requires inclusive leaders with the ability and desire to continually seek feedback, really listen and then act to establish a culture where difference is genuinely valued. We commit to regularly measuring our progress, holding our leadership team accountable for achieving our goals but we acknowledge that we must learn as we go.

Equality, Diversity and Inclusion

Our EDI commitments fall under six themes: Representation, Talent Pipelines, Individual Voices, Authenticity, Access and Governance.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Monitoring Progress

The Royal Opera House Board of Trustees and Executive Team are responsible for the delivery of this strategy. Assessment of our success will be data driven, and high-level KPIs for EDI have been embedded in the ROH Business Plan. Transparency with staff on our plans and progress is key. We will consult with the Staff Diversity and Inclusion Network before this strategy and future updates are finalised and will report back formally to staff twice a season. This strategy was formally considered by the Board in October 2022 and approved.

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

ACKNOWLEDGEMENTS

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

In the 2022/23 Season we worked with a large number of organisations and we would like to thank them all for their partnership:

Acosta Danza Magpie Dance Aram Katchaturian Museum, Yerevan, Armenia McNicol Ballet Collective Arts Council England NBS-Japan Performing Arts Foundation Aurora Orchestra Northern Ballet Balenciaga Norwegian National Ballet 2 Ballet Black Odeon Blackpool & Fylde College Opera Academy, Polish National Theatre and Blackpool LCEP Opera BRB2 Opera National de Paris British Broadcasting Corporation Operanhaus Zurich Britten Sinfonia Place2Be Cast Theatre Polish National Ballet Children's Capital of Culture (Rotherham) Rambert School Cineworld ROSIS Rotherham Schools Improvement City Lit Rotherham Music Service Coventry LCEP Royal Danish Ballet Creative UK San Francisco Ballet Curzon San Francisco Opera Dance Reflections by Van Cleef & Arpells Scottish Ballet darts, Doncaster Community Arts Shakespeare North Playhouse David Ross Education Trust Studio Wayne McGregor in association with The Die Nederlandse Opera Jim Henson Company Doncaster Council Sutton Music Service Doncaster LCEP Teatro Real, Madrid Doncaster Music Service Thick and Tight Ensemble ZAR The Australian Ballet Everyman The Elliot Foundation Academies Trust Festival d’Aix-en-Provence The Grand, Blackpool Finnish National Opera The Israeli Opera Finnish National Youth Ballet Company The Metropolitan Opera, New York Fundação Theatro Municipal de São Paulo The National Ballet of Canada Gran Teatro del Liceu, Barcelona The Norwegian National Ballet Houston Grand Opera The Royal Ballet School Ibaňez-Atkinson Fundación and Teatro Municipal Thetford LCEP de Santiago Thurrock Music Service Imagine Rotherham (LCEP) Tonic Inspire+ Sports Partnership Trafalgar Instituto Superior de Arte del Teatro Colon Ukrainian Catholic Eparchy of the Holy Family (ISATC) Volta Joburg Ballet Vue Just Us Dance Theatre Wilderness Festival LOD Muziektheater ZooNation Youth Company Lost Dog 12 Ensemble Lyric Opera of Chicago

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

STRUCTURE, GOVERNANCE AND MANAGEMENT

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Directors and Trustees

The directors of the charitable company (‘The Royal Opera House’ or ‘the charity’) are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees. The Trustees who held office during the period and since period end were as follows:

Sir Lloyd Dorfman CVO CBE (Chair) Zeinab Badawi Caroline Britton Lord Browne of Madingley Timothy Bunting Kirsty Cooper (appointed Senior Independent Director 4 October 2022) Philipp Freise (appointed 7 December 2023) Susan Hoyle OBE (retired as Senior Independent Director 4 October 2022) Lisa Burger CBE (appointed 4 October 2022) Vanessa Kingori OBE (appointed 4 October 2022) Paul Morrell OBE Indhu Rubasingham MBE Janis Susskind OBE (appointed 4 October 2022) Christopher Townsend CBE Michael Ward (appointed 4 October 2022) Danny Wyler Sir Alexander Young KCMG (appointed 4 October 2022)

Chief Executive

Alex Beard CBE

Company Secretary

Leah Hurst

Governing Document

The Royal Opera House Covent Garden Foundation is a company limited by guarantee (company number: 00480523) governed by its Memorandum and Articles of Association, which were last amended on 5 October 2021. It is registered as a charity at the Charity Commission (charity number: 211775).

Charitable objects

Our charitable objects, as stated in the Royal Opera House governing document, are:

to promote and assist in the advancement of education so far as such promotion and assistance shall be of a charitable nature and in particular, to raise the artistic taste of the country, and to procure and increase the appreciation and understanding of the musical art in all its forms. The achievement of our aims as listed in the pages above (p15-p24) enable us to fulfil our charitable objects and therefore our legal purpose.

Public benefit

The Trustees refer to the Charity Commission’s general guidance on public benefit when shaping and reviewing the Charity’s aims, objectives and future strategies. In setting the level of ticket prices, charges and concessions, and in developing digital and broadcast distribution, the Trustees give careful consideration to the accessibility of the Royal Opera House to those on low incomes. As outlined in this report, this is addressed through maintaining a wide range of ticket prices, as well as through several ticket subsidy schemes, free events, digital and broadcast activity and an extensive learning and participation programme.

Appointment of Trustees

The Board of Trustees are responsible for the appointment of new trustees, who are appointed for an initial term of four years. The Nominations and Remuneration Committee has delegated authority to recruit Trustees who are formally elected at Board meetings and ratified at the next following Annual General Meeting of the Company. On the expiry of such initial term they may be re-appointed for additional terms

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

expiring on or before the financial year end following either the second or fourth anniversary of the date of re-appointment. No Trustee shall be appointed for a term exceeding twelve years. The Trustees appoint a Chair for a term of five years or less and on expiry of such term he or she may be re-appointed for a second term of three years or fewer by approval of the Trustees provided that on expiry of such second term he or she shall, unless the Trustees otherwise exceptionally determine, retire from office. The Nominations and Remuneration Committee reviews regularly the structure, size, composition, diversity and succession needs of the Board, ensuring that the Board has the required blend of skills and experience and its remit is to identify, assess and formally recommend to the Board candidates for appointment as Trustees.

Trustee Induction and training

New Trustees undergo an induction session with the Company Secretary to brief them on their obligations under charity and company law, the contents of the Memorandum and Articles of Association, the board manual and the committee and decision-making processes. During the induction new Trustees are also introduced to key staff and other Trustees.

Organisation

The direction and control of the Royal Opera House is determined by the Board of Trustees, which meets at least six times a year. The role of the Board is to direct the Royal Opera House strategy and to ensure that the Royal Opera House is on the approved strategic course (including artistic strategy) and that it is properly and effectively managed. The following sub-committees of the Board are established (which in the case of Finance and Commercial, Development, Learning and Participation and Digital Strategy, include members who are not Trustees).

Audit and Risk: The committee meets at least three times a year. The committee is chaired by Caroline Britton. Other members are Timothy Bunting (appointed 1 September 2022), Kirsty Cooper, Sir Lloyd Dorfman CVO CBE, Paul Morrell OBE, Danny Wyler and Sir Alex Younger KCMG (appointed 7 December 2022). Alex Beard, Mindy Kilby (Chief Financial Officer) and Heather Walker (Chief Operations Officer) report to all meetings. The committee is responsible for considering and reviewing matters relating to the control environment, including internal audit, health and safety and risk management, including consideration of matters raised by the external auditors. The committee is responsible for the appointment of the external auditors, meets regularly with them and reviews their performance and independence.

Finance and Commercial: The committee meets five times a year. The committee is chaired by Timothy Bunting. Other members are Caroline Britton, Lord Browne of Madingley (retired 7 December 2022), Timothy Bunting, Lisa Burger CBE (appointed 7 December 2022), Sir Lloyd Dorfman CVO CBE, Dan Ison, Vanessa Kingori OBE (appointed 7 December 2022), Julian Metherell (retired 28 September 2022), Paul Morrell OBE, Michael Ward (appointed 7 December 2022) and Danny Wyler. Alex Beard, Mindy Kilby (Chief Financial Officer) and Heather Walker (Chief Operations Officer) report to all meetings. The committee is responsible for reviewing and assessing the balance, integrity and transparency of financial information, the adequacy of financial planning, budgeting and forecasting, and the Royal Opera House’s annual financial statements. It makes recommendations to the Board on major capital expenditure and revenue contracts and on the overall framework for delegated financial authority in the Royal Opera House.

Development: The committee was chaired by Danny Wyler until 7 December 2022 when Sir Lloyd Dorfman CVO CBE assumed the chair. Philipp Freise (appointed 4 October 2022) assumed the chair on 7 December 2023. Other members are Timothy Bunting, The Countess of Chichester (retired 7 July 2023), Sir Mick Davis, Dame Vivien Duffield (retired 7 July 2023), Anthony Gutman, Yuanbo Liu, Dame Gail Ronson (retired 7 July 2023), Nicole Ronson Allalouf, The Earl of Snowdon (retired 7 July 2023) and Danny Wyler. Alex Beard and Amanda Saunders (Chief of Staff, Development & Advocacy) report to all meetings. The committee supports the Development department in maximising fundraising opportunities and income.

Donation and Income Acceptance: Sir Lloyd Dorfman CVO CBE chairs the committee. Other members are Zeinab Badawi, Kirsty Cooper, Danny Wyler and Sir Alex Younger KCMG (appointed 7 December 2022). The committee supports the organisation around the ethical acceptance/rejection of sponsorship, donations and membership. This includes making decisions, recommending referral of those decisions to the Charity Commission where appropriate, assessing the potential impact of those decisions while advising the

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

business communications department with regard to their rationale, advising the main Board on the associated risks, annually reviewing the policy on accepting/rejecting such funds and monitoring compliance with this policy.

Learning and Participation: The committee is chaired by Susan Hoyle OBE. Other members are Alex Beard, Helen Bruckdorfer (retired 31 December 2023), Annie Crombie, Dame Vivien Duffield (retired 1 September 2022), Tanya Joseph, Simon Pearson, Jonathan Sands (retired 31 December 2023), Janis Susskind OBE (appointed 7 December 2022), Sharon Watson (appointed 7 December 2022) and Bridget Whyte. Jillian Barker (Director of Learning and Participation) reports to all meetings. The committee supports the organisation in planning, implementing and monitoring programmes and initiatives focused on learning, participation and widening engagement.

Nominations and Remuneration: Sir Lloyd Dorfman CVO CBE chairs the committee. Other members are Caroline Britton (appointed 1 September 2022), Lord Browne of Madingley (appointed 7 December 2022), Timothy Bunting (appointed 1 September 2022), Dame Vivien Duffield, Susan Hoyle OBE and Danny Wyler (retired 7 December 2022). Alex Beard and Dale Haddon also attends these meetings. The committee nominates appointees to the Board and other Senior Executives for approval by the Board. It may co-opt additional members where particular expertise is required and a particular role is under consideration. The committee is also responsible for the continuous review of Board membership to ensure that a proper balance of skills, experience and diversity is maintained. The committee is responsible for reviewing and benchmarking internationally the pay, benefits and total compensation of the Executive Team. The activities of the Royal Opera House are driven by the artistic plans of the Royal Ballet and the Royal Opera, and managed by the Chief Executive with the support of the Executive Team. The Committee consider the Chief Executive, Music Director, Director of the Royal Ballet and Director of Opera as key management personnel responsible for these activities. The Committee conducts an annual review of executive compensation, focussing on survey data from a range of comparable UK and international arts organisations, and also takes into account the annual pay award for all staff.

Business Transformation Group: The committee is chaired by Christopher Townsend CBE. Other members are Timothy Bunting, Sir Lloyd Dorfman CVO CBE, Dan Ison and Simon McGrath. The committee supports the organisation in overseeing the development and implementation of the organisation’s strategy for digital transformation.

Executive Team: the day-to-day management is the task of the Royal Opera House Executive

The Trustees appoint the Chief Executive and Music Director. Royal Opera House operations are managed by the Chief Executive with the assistance of an Executive Team comprising:

Alex Beard CBE, Chief Executive

Peter Alesbury, Director of Estates and Facilities (from 10 October 2022) Jillian Barker, Director of Learning and Participation Heather Baxter, Administrative Director, The Royal Ballet Helen Dunne, Orchestra Director Dale Haddon, Chief People Officer Will Harding, Deputy Director, Production and Planning Mark Heholt, Director of Policy and Strategic Funding Leah Hurst, General Counsel and Company Secretary Peter Katona, Director of Casting Koen Kessels, Music Director, The Royal Ballet Mindy Kilby, Chief Financial Officer Terry McGrath, Director of Audiences & Media (until 31 March 2024) Tracey McNulty, Director Information Technology (from 9 October 2023) Oliver Mears, Director of Opera Kevin O’Hare CBE, Director, The Royal Ballet Christina Osterby, Commercial Director, Audiences & Media (from 1 November 2022) Sir Antonio Pappano CVO, Music Director

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Amanda Saunders, Chief of Staff, Development & Advocacy Cormac Simms, Administrative Director, The Royal Opera Jane Storie, Business Director Heather Walker, Chief Operating Officer James Whitebread, Chief Technology Officer (until 14 July 2023) Sophie Wybrew-Bond, Chief Commercial Officer (from 03 January 2024) Emma Wilson MBE, Director of Technical, Production and Costume

The Chief Executive (assisted by the Executive Team) is responsible for the development and implementation of the strategy and business plans of the Royal Opera House. The full Executive Team meets monthly to monitor artistic, operational and financial progress against plans approved by Trustees, with a smaller group meeting weekly. It should be noted that where the title ‘Director’ is used in the above table this is an internal management term only and does not indicate directorship according to the Companies Act definition.

The Royal Opera Company and The Royal Ballet Company are internal divisions of the charity. The Royal Ballet has a Royal Charter dating in its original form from 1956. The Royal Opera House, The Royal Ballet and The Royal Opera Company have the Sovereign’s permission to use the word ‘Royal’ in their titles.

We would also to thank the following for support, advice and encouragement throughout the year: Honorary Vice Presidents

Dame Vivien Duffield Sir Simon Robey

Honorary Trustees

The Countess of Chichester Dame Gail Ronson

The Board of the Royal Opera House Endowment Fund Dame Vivien Duffield, Chair Caroline Britton (appointed 16 November 2022), Timothy Bunting, Hamish Forsyth, Lady Gavron, Sir Simon Robey, Peter Troughton CVO CBE (retired 20 April 2023)

Board of Honorary Directors

Sir Lloyd Dorfman CVO CBE, Chair The Countess of Chichester, Honorary Vice Chair Dame Gail Ronson, Honorary Vice Chair Danny Wyler, Honorary Vice Chair (appointed 7 July 2023)

Lady Ashcroft Kenneth and Susan Green Tim Ashley and John Booth Sandra and Anthony Gutman Mikhail Bakhtiarov Charles and Kaaren Hale The BAND Trust Lady Hamlyn Mercedes T. Bass Jane Hamlyn Boodles - Michael Wainwright Lady Heywood The Deborah Loeb Brice Foundation Dr Catherine Høgel Tim and Sarah Bunting Charles Holloway John and Susan Burns OBE Alan and Caroline Howard Ricki Gail Conway Huo Family Foundation Sir Mick and Lady Barbara Davis Aud Jebsen Baron and Baroness de Gunzburg Doug and Ceri King Sir Lloyd and Lady Dorfman OBE Frances Kirsh Aline Foriel-Destezet Mrs Alfiya Askar Abulkhair and Timur Kuanyshev David Fransen Rena and Sandro Lavery Alex and Elena Gerko Bob and Tamar Manoukian

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Dr Patrick Mueller Victoria Robey OBE Bertrand and Elisabeth Meunier Rolex – Arnaud Boetsch Dame Marit Mohn The Gerald and Gail Ronson Family Foundation Mrs Susan A. Olde OBE Veuve Clicquot – Alexei Rosin Stefan Sten Olsson Lady Sainsbury of Preston Candover Jette and Alan Parker Dame Tina Taylor Natalie Parker Lindsay and Sarah Tomlinson Melinda and Donald Quintin Van Cleef & Arpels – Geoffroy Medinger Julia and Hans Rausing Danny and Lillan Wyler Yvonne and Bjarne Rieber Sir Simon and Lady Robertson Anonymous (4) Sir Simon Robey

The Royal Opera House Pension Fund: Richard Soper, Chair

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

REFERENCE AND

ADMINISTRATIVE DETAILS

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Charity number

211775

Company number 00480523

ACTUARIES

(to the Royal Opera House Pension Scheme) Lane Clark & Peacock LLP, 95 Wigmore Street, London, W1U 1DQ

PRINCIPAL OFFICE

Royal Opera House, Covent Garden, London, WC2E 9DD

INTERNAL AUDITORS

RSM UK Group LLP, 25 Farringdon Street London EC4A 4AB

AUDITORS

Crowe UK LLP, 55 Ludgate Hill, London, EC4M 7JW

BANKERS

Coutts & Co. 440 Strand, London, WC2R 0QS

INVESTMENT ADVISORS

Stonehage Fleming Investment Management Limited, 15 Suffolk Street, London SW1Y 4HG

Troy Asset Management

Limited Brookfield House, 33-34 Davies Street, London W1K 4BP

Newton Investment

Management Limited BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Group entities

On 27 August 2023 the group included the charity and:

Royal Opera House Endowment Fund 2000

Royal Opera House Enterprises Limited

ROH Holdings Limited

ROH Developments Limited

The consolidated financial statements include the results of these entities, as detailed in note 2. See note 2 for the principal activities of these entities.

Equality policy/statement

The Royal Opera House has an ongoing commitment to promoting diversity throughout all its work – as an employer, in the art we perform, and in the extent of our audience. We report annually to Arts Council England on our progress against an action plan, which is keenly monitored by the Board of Trustees.

Environmental strategy

It is the ambition of the Royal Opera House to be a leader in environmental sustainability and to act as a catalyst for positive change in this field.

Recognising our global reach and leadership role within the UK arts sector, we embrace our responsibility and obligation to reduce our impact on the environment and we aim to engage with our audiences, staff, suppliers and partners to raise awareness about sustainability issues. It is our belief that reducing our environmental impact will not only have a positive effect on the environment, but will also make our operations more efficient and economical and will enhance our organisational resilience in the long term.

Health and safety

The charity has a health and safety committee comprised of representatives from many departments. All new staff are issued with a health and safety policy document. In addition, under the supervision of the occupational health unit, there are trained first-aiders in all departments. A full report on Health and Safety is considered annually by the Board.

Staff

The charity informs and seeks the views of its staff by means of regular department meetings open to all staff and newsletters. Regular meetings are held with the recognised unions: BECTU (Broadcasting Entertainment Cinematograph and Theatre Union), The Musicians’ Union and Equity.

Disabled persons

The charity encourages the employment of disabled persons. It is Board policy to ensure that continued employment is offered, wherever possible, to staff who become temporarily disabled and special arrangements are made for those permanently disabled.

Political and charitable contributions

The charity made no political contributions during the period. No charitable contributions were made during the period, other than as disclosed in Note 13 to the financial statements.

Payment policy

It is the charity’s policy to pay suppliers in accordance with agreed credit terms. The Royal Opera House had trade creditors equivalent to 25 days supply at the period end (52 week period ended 28 August 2022: 25 days).

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Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Fundraising statement

Our guiding principle for fundraising is to build secure, long term fundraising support from our Members, encouraging their interest in our charitable work, allowing them to engage with our staff and projects and seeing how their additional gifts help us. Our fundraising materials are written and designed around this principle.

Fundraising activities include targeted direct mail, events and leaflets at promoting donations and bequests, donations through our website, and approaches to Trusts, Foundations, companies and individual benefactors.

Our fundraising is carried out by our in-house fundraising teams and we are a registered member of The Fundraising Regulator. We have procedures in place to ensure our staff and volunteers comply with fundraising standards and regulation; we are not aware of any failure by our staff or volunteers to meet these standards. We are committed to acting promptly if we receive any information indicating we have not met these standards.

In 2022/23 we received 10 general fundraising complaints about our fundraising activity. If complaints are received we respond quickly and ensure corrective action is taken as required. If complaints are received about the suggested donations added to ticket purchases, these are refunded at the point of complaint.

We take our responsibilities on managing our contact data very seriously and we strive to ensure that our policies and procedures around data and processing meet our legal requirements, our high expectations and those of our supporters. As part of the risk-based audit plan and in line with our risk management processes, Internal Audit performs regular reviews of the Fundraising team activities and control environment.

We recognise the need to protect vulnerable people. We ensure comprehensive training is provided to ensure that empathy and respect are demonstrated towards people in vulnerable circumstances and that no donation is sought or gained from someone who may not have the capacity to make an informed and considered decision.

We respect our supporters’ privacy and rights to decide how and if we contact them. We make it easy for supporters to choose how they want to hear from us, and if they ask us not to contact them we will not, unless it is a legal or administrative requirement.

47

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Trustees’ responsibilities statement

The Trustees (who are also directors of Royal Opera House Covent Garden Foundation for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees confirm that:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Trustees’ Annual Report (incorporating the strategic report) was approved by the Board of Trustees and signed on 21 March 2024.

Sir Lloyd Dorfman CVO CBE, Chair

48

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Independent Auditor’s Report to the Members of Royal Opera House Covent Garden Foundation

Opinion

We have audited the financial statements of Royal Opera House Covent Garden Foundation (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the 52 week period ended 27 August 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated Income and Expenditure Account, the Consolidated Balance Sheet, the Parent Charitable Company Balance Sheet, the 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 charitable company 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.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information contained within the annual report. 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.

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

49

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 48, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.

We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

50

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

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

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

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Naziar Hashemi, Senior Statutory Auditor For and on behalf of

Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW

22 March 2024

51

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

FINANCIAL STATEMENTS

ROYAL OPERA HOUSE COVENT GARDEN FOUNDATION (LIMITED BY GUARANTEE)

Consolidated financial statements

52 week period ended 27 August 2023

Registered charity number: 211775. Registered company number: 00480523.

52

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Consolidated statement of financial activities

for the 52 week period ended 27 August 2023

Note
Income and endowments from:
Charitable activities
Operation of Royal Opera House (including box office)
3
Grant from Government
4
Donations and legacies
Donations, legacies and similar incoming resources
5
Grants from Arts Council England
6
Other trading activities
Commercial trading income
7
Investments
8
Other Income
9
Total income and endowments
Expenditure on:
Raising Funds
Generating voluntary income
10
Commercial activities
11
Charitable activities
Productions, sales and operations
12
Total expenditure
16
Net (expenditure) / income
Net gain / (loss) on investments
19
Net income / (expenditure)
Transfers between funds
17
Other recognised gains
Actuarial gain on the defined benefit pension scheme
31
Net movement in funds
Fund balances brought forward at 28 August 2022 as
previously stated
Restatement
Fund balances brought forward at 28 August 2022 restated
Fund balances carried forward at 27 August 2023
27		 Total
Unrestricted
Funds
£'000
80,292
-
19,115
23,553
20,882
2,731
799

Restricted
Funds
£'000
-
-
14,974
749
-
388
-
Endowment
Funds
£'000
-
-
914
-
-
-
6,300		 52 week
period ended
27-Aug-23

Total Funds
£'000
80,292
-
35,003
24,302
20,882
3,119
7,099		 52 week
period ended
28-Aug-22
Restated
Total Funds
£'000
51,007
18
37,092
25,212
14,841
743
-
147,372 16,111 7,214 170,697 128,913
(5,201)
(13,979)
(118,334)		 -
-
(15,967)		 (270)
-
(1,006)		 (5,471)
(13,979)
(135,307)		 (4,632)
(10,706)
(117,803)
(137,514) (15,967) (1,276) (154,757) (133,141)
9,858
-		 144
-		 5,938
52		 15,940
52		 (4,228)
(648)
9,858
577
934		 144
(548)
-		 5,990
(29)
-		 15,992
-
934		 (4,876)
-
15,196
11,369
198,718
-
198,718		 (404)
11,222
(1,582)
9,640		 5,961
44,805
1,582
46,387		 16,926
254,745
-
254,745		 10,320
244,425
-
244,425
210,087 9,236 52,348 271,671 254,745

Amounts relating to incoming resources and resources expended in the current and previous period derive from continuing activities. No significant new operations have been acquired in the period or the previous period.

There is no difference between the results for the period stated above and their historical cost equivalents, except for unrealised gains and losses on investments and heritage assets (see note 19).

Notes from pages 57 – 101 form part of the financial statements.

53

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Consolidated balance sheet

as at 27 August 2023

Un-Restricted
Funds
Note
£'000
Fixed assets
Intangible fixed assets
20
1,527
Tangible fixed assets
21
167,621
Heritage assets
23
6,022
Investments
22(a)
-
Total fixed assets
175,170
Current assets
Productions in preparation
3,822
Stocks
24
324
Debtors: amounts falling due after more than one year
25
717
Debtors: amounts falling due within one year
25
30,267
Cash at bank and in hand
32
50,778
Short term invetsments: Deposits
30,020
115,928
Creditors:amounts falling due within one year
26
(46,601)
Net current assets
69,327
Total assets less current liabilities
244,497
Creditors:amounts falling due after one year
26
(21,606)
Net assets excluding pension liability
222,891
Defined benefit pension scheme liability
31
(12,804)
Net assets including pension liability
210,087
Funds
Unrestricted general funds
27
4,200
Unrestricted revaluation funds
27
389
Unrestricted designated funds
27
218,302
Unrestricted funds before pension reserve
222,891
Unrestricted pension reserve
31
(12,804)
Restricted funds
27
-
Endowment fund
27
-
Total Funds
210,087		 Un-Restricted
Funds
Note
£'000
Fixed assets
Intangible fixed assets
20
1,527
Tangible fixed assets
21
167,621
Heritage assets
23
6,022
Investments
22(a)
-
Total fixed assets
175,170
Current assets
Productions in preparation
3,822
Stocks
24
324
Debtors: amounts falling due after more than one year
25
717
Debtors: amounts falling due within one year
25
30,267
Cash at bank and in hand
32
50,778
Short term invetsments: Deposits
30,020
115,928
Creditors:amounts falling due within one year
26
(46,601)
Net current assets
69,327
Total assets less current liabilities
244,497
Creditors:amounts falling due after one year
26
(21,606)
Net assets excluding pension liability
222,891
Defined benefit pension scheme liability
31
(12,804)
Net assets including pension liability
210,087
Funds
Unrestricted general funds
27
4,200
Unrestricted revaluation funds
27
389
Unrestricted designated funds
27
218,302
Unrestricted funds before pension reserve
222,891
Unrestricted pension reserve
31
(12,804)
Restricted funds
27
-
Endowment fund
27
-
Total Funds
210,087		 Restricted
Funds
£'000
-
9,932
-
-		 Endowment
Funds
£'000
-
-
-
38,275		 27 August
2023
Total
Funds
£'000
1,527
177,553
6,022
38,275		 28 August
2022
Restated
Total
Funds
£'000
1,492
180,748
6,022
38,426
175,170 9,932 38,275 223,377 226,688
3,822
324
717
30,267
50,778
30,020		 -
-
-
-
1,002
-		 -
-
-
403
13,670
-		 3,822
324
717
30,670
65,450
30,020		 3,567
254
6,535
20,337
50,163
30,061
115,928
(46,601)		 1,002
(213)		 14,073
-		 131,003
(46,814)		 110,917
(45,690)
69,327 789 14,073 84,189 65,227
244,497 10,721 52,348 307,566 291,915
(21,606) (1,485) - (23,091) (22,992)
222,891
(12,804)		 9,236
-		 52,348
-		 284,475
(12,804)		 268,923
(14,178)
210,087 9,236 52,348 271,671 254,745
4,200
389
218,302		 -
-
-		 -
-
-		 4,200
389
218,302		 4,156
389
208,351
222,891
(12,804)
-
-		 -
-
9,236
-		 -
-
-
52,348		 222,891
(12,804)
9,236
52,348		 212,896
(14,178)
9,640
46,387
210,087 9,236 52,348 271,671 254,745

These financial statements were approved by the board of Trustees on 21 March 2024 and were signed on its behalf by:

SIR LLOYD DORFMAN CVO CBE

Trustee

CAROLINE BRITTON

Trustee

Notes from pages 57 – 101 form part of these financial statements.

54

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Parent charitable company balance sheet

as at 27 August 2023

Note
Fixed assets
Intangible fixed assets
20
Tangible fixed assets
21
Heritage assets
23
Investment in subsidiaries
22(b)
Total fixed assets
Current assets
Productions in preparation
Debtors: amounts falling due after more than one year
25
Debtors: amounts falling due within one year
25
Cash at bank and in hand
32
Short term invetsments: Deposits
Creditors:amounts falling due within one year
26
Net current assets
Total assets less current liabilities
Creditors:amounts falling due after one year
26
Net assets excluding pension liability
Defined benefit pension scheme liability
31
Net assets including pension liability
Funds
Unrestricted general funds
27
Unrestricted revaluation funds
27
Unrestricted designated funds
27
Unrestricted funds before pension reserve
Unrestricted pension reserve
31
Restricted funds
27
Total Charity Funds		 Unrestricted
Funds
£'000
1,527
167,620
6,022
6,676		 Restricted
Funds
£'000
-
9,932
-
-		 27 August
2023

Total Funds
£'000
1,527
177,552
6,022
6,676		 28 August
2022
Total Funds
£'000
1,492
180,748
6,022
6,676
181,845 9,932 191,777 194,938
3,822
-
29,766
49,839
30,020		 -
-
-
678
-		 3,822
-
29,766
50,517
30,020		 3,567
200
19,636
46,868
30,061
113,447
(44,544)		 678
-		 114,125
(44,544)		 100,332
(43,753)
68,903 678 69,581 56,579
250,748 10,610 261,358 251,517
(21,606) (1,485) (23,091) (22,992)
229,142
(12,804)		 9,125
-		 238,267
(12,804)		 228,525
(14,178)
216,338 9,125 225,463 214,347
4,671
389
224,082		 -
-
-		 4,671
389
224,082		 4,672
389
214,129
229,142
(12,804)
-		 -
-
9,125		 229,142
(12,804)
9,125		 219,190
(14,178)
9,335
216,338 9,125 225,463 214,347

The parent company’s profit for the period, before other comprehensive income, was £10.182m (2022: £0.146m loss). After actuarial gain on defined benefit scheme of £0.934m (2022: £15.196m), the profit for the period was £11.116m (2022: £15.050m).

These financial statements were approved by the board of Trustees on 21 March 2024 and were signed on its behalf by:

SIR LLOYD DORFMAN CVO CBE

CAROLINE BRITTON

Trustee Trustee

Notes from pages 57 – 101 form part of these financial statements.

55

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Consolidated statement of cash flows

for the 52 week period ended 27 August 2023

onsolidated statement of cash flows
or the 52 week period ended 27 August 2023
Note
Cash inflow from operating activities
32(a)
Cash (outflow) from investing activities
32(b)
Cash (outflow) from financing activities
32(c)
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period		 52 week
period ended
27-Aug-23
£'000
19,241
(3,853)
(102)
15,287
50,163
64,450		 52 week
period ended
28-Aug-22
£'000
12,779
(13,589)
(102)
(912)
51,075
50,163

Notes from pages 57 - 101 form part of these financial statements.

56

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

NOTES

(forming part of the financial statements)

1. Accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements:

Basis of preparation

The financial statements have been prepared in accordance with FRS102 : The Financial Reporting Standard applicable in the UK and Republic of Ireland and under the historical cost convention, modified to include the revaluation of investments and heritage assets, and in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) and Companies Act 2006. There are no material departures from FRS102.

Comparative figures are shown for the 52 week period ended 28 August 2022.

Going Concern

The Trustees must satisfy themselves as to the Royal Opera House’s ability to continue as a going concern for a minimum of 12 months from the signing of the financial statements. The Board of Trustees have considered business plans and budgets based on an artistic programme of activity to August 2025, supplemented by outline plans in other areas. These plans show the impact of the challenges ahead given the reduction in ACE funding from April 2023, the external environment and the impact of inflation, and in the Board’s assessment of going concern if they are taken into consideration whether the Royal Opera House has adequate resources to meet its obligations as they fall due in and beyond the 12 months from the date of approval of these financial statements.

In assessing going concern, the Board considered the financial impact of any shortfall in fundraising and trading income, and the impact of further increases on costs in excess of current plans. Whilst the Trustees are confident that these risks have adequate mitigation to ensure the ROH remains a going concern, the modelling shows that there is sufficient liquidity to August 2025 excluding mitigations.

After consideration of the scenarios, the Trustees consider that the Royal Opera House (Group and Parent Charitable Company) has adequate resources to continue in operational existence for the foreseeable future being a minimum of twelve months from when these financial statements are approved. For this reason, the financial statements of the Group and Parent Charitable Company have been prepared on a going concern basis.

Basis of consolidation

The consolidated statement of financial activities and balance sheet include the financial statements of the charity (Royal Opera House Covent Garden Foundation (Limited by Guarantee), incorporated in the United Kingdom with registered address and principal address of Royal Opera House, Covent Garden, London WC2E 9DD) and its subsidiaries as set out in note 22(b). All subsidiary results are presented for their statutory financial period, which falls within three months of the year end of the charity. The results of the ROH Holdings Limited Group and Royal Opera House Enterprises Limited (Company Number 04112266) have been included in the consolidated statement of financial activities throughout the period. ROH Holdings Limited (Company Number 02580395) is the holding company of ROH Developments Limited (Company Number 02580400). In the charity’s financial statements, the investment in subsidiary undertakings is stated at cost.

The Royal Opera House Endowment Fund 2000 (Charity Registration Number 1089928) has also been consolidated in full throughout the period. Since its inception the Fund has been able to make grants (directly or indirectly) for the benefit of the Royal Opera House. The extent to which the Royal Opera House benefits from the Royal Opera House Endowment Fund 2000 and the extent of grants and consideration of grants to other bodies has been reviewed annually by the Trustees since its creation. Since the beginning of the period ended 25 March 2007, the Trustees have considered it appropriate to consolidate the Royal Opera House

57

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Endowment Fund 2000 into the Royal Opera House Covent Garden Foundation Group (formerly the Royal Opera House Covent Garden Limited Group). In the Trustees’ view, Royal Opera House Covent Garden Foundation has control in that it actually exercises dominant influence over the Royal Opera House Endowment Fund 2000, through influencing the operating and financial policies for the benefit of the ROH and both entities are managed on a unified basis. Also, the objects of Royal Opera House Endowment Fund 2000 are substantially confined to the benefit of Royal Opera House Covent Garden Foundation.

A separate Statement of Financial Activities, or income and expenditure account, has not been presented for the charity in accordance with Section 408 of the Companies Act 2006. The income and expenditure of the charity are detailed in note 27. A separate cash flow statement has not been presented for the charity in accordance with FRS 102 section 1.12(b).

Public Benefit Entity

The Royal Opera House Covent Garden Foundation (Limited by Guarantee) is a Public Benefit Entity under FRS102.

Significant judgements and key sources of estimation uncertainty

Management have exercised their judgement in the following areas:

Assessing the useful lives of tangible fixed assets (see Tangible fixed assets and depreciation below) as well as any impairment provision required for those assets. See note 21 for carrying values for the current and prior periods.

The valuation method of heritage assets. See Heritage assets below and note 23 for more details and for carrying values for the current and prior periods.

The decision to include ROH Endowment Fund 2000 in the Group Consolidation. See Basis of consolidation above.

In addition, the pension actuarial assumptions (see Pension Costs below and note 31) are areas of significant judgement.

That the rate payable on the intragroup loan payable from Royal Opera House Enterprises Limited to Royal Opera House Covent Garden Foundation Limited a commercial rate of interest and that, given the decision to continue not to demand immediate payment, that the long term portion of the loan continue to be disclosed in Debtors: amounts due after more than one year (see note 25).

Management have used estimations in the following areas:

Determining that the fair value of the leased commercial units at the inception of the leasing arrangement amounts to the initial payments paid by the third party and the present value of rent receipts over the term of the lease and determining that the residual value of the leased units at the end of the lease term is negligible when discounted to present value. See note 25 for carrying values for the current and prior periods.

In addition, the valuation of Investment in Programming assets (see Intangible Fixed Assets below and note 20) is an area of significant judgement and estimation.

Functional Currency

The Group operates primarily economically in the UK and the functional currency as well as the reporting currency is the pound sterling.

58

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Income

Box office and other income from the operation of the Royal Opera House is stated net of Value Added Tax and consists primarily of ticket sales together with sales of other goods and services. Revenue from ticket sales is recognised on the night of the performance.

Membership income received is recognised on a time-apportioned basis over the period to which the membership relates.

Grants and donations are accounted for when the receipt is probable, there is evidence of entitlement and can be measured reliably. Entitlement is assessed using performance and time-restriction conditions.

Pecuniary legacies are recognised when the legacy has been received or if, before receipt, there is sufficient evidence to provide the necessary certainty that the legacy will be received. Residual legacies are recognised on the earlier of receipt of the finalisation of estate accounts. Where legacies have been notified to the charity, but the income criteria have not been met, these are disclosed as contingent assets (see note 5)

Legacies are accounted for when the receipt is probable, there is evidence of entitlement and can be measured reliably. Entitlement is assessed using conditions as set out in the will of the deceased legacy owner.

Sponsorship income represents income from commercial organisations in support of specific activities. Income is recognised at the date of the event which is the point of delivery for goods or services.

Co-production income represents income from other theatre companies as a contribution towards the costs of delivering a new Opera or Ballet production. Income is recognised at the date of the first performance of the production.

Grants from Arts Council England are recognised on entitlement and when their receipt is probable.

Commercial trading income and other income is recognised at the point of delivery of goods or services.

Investment income is recognised on an accruals basis. Specifically, interest is recognised using the effective interest method and dividend income is recognised when the right to receive payment is established.

Amounts due to the Royal Opera House in respect of the Theatre Tax Credit are included in the financial year to which the claim relates. These amounts are recognised in income, rather than as a tax credit or recovery of expenditure, as the intention and nature of the Theatre Tax Credit is akin to government grant income.

Payment from a trading subsidiary under Gift Aid

Royal Opera House Enterprises Limited has adopted a policy of paying all its taxable profits to its parent charity, Royal Opera House Covent Garden Foundation, under Gift Aid. These gift aid payments are recognised in Royal Opera House Enterprises Limited as distributions through equity in the financial period in which the profits arise, under the terms of the Deed of Covenant between Royal Opera House Enterprises Limited and Royal Opera House Covent Garden Foundation.

The Royal Opera House Covent Garden Foundation recognises the income in the period in which the profits of the subsidiary arise.

Assets

Assets are resources which are controlled by the company as a result of a past event, from which future economic benefits are expected to flow to the Charity. Assets are recognised only when it is probable that future economic benefits will flow to the Charity when the item has a cost or value that can be measured reliably.

59

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Debtors

Debtors fall into the definition of assets and encompass trade debtors, accrued income, prepayments and intra-group balances. Debtors are measured at the cost of the transaction where receipt is not deferred beyond normal terms. Where receipt is deferred beyond normal terms, the debtor is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. In both instances, measurement is net of provision for doubtful debts.

Liabilities

Liabilities arise when there is a present obligation (legal or constructive) as a result of a past event, from which future economic benefits are expected to flow to the supplier or counterparty. Liabilities are recognised only when it is probable that future economic benefits will flow to the supplier or counterparty and when the item has a cost or value that can be measured reliably. Contracted commitments are not recorded as liabilities on the balance sheet, as the criteria for recognition have not been met. Commitments are disclosed in notes 30(b) and 30(c).

Creditors

Creditors fall into the definition of liabilities and encompass trade creditors, accruals for costs not yet billed or processed, deferred income and intra-group balances. Creditors are measured at the cost of the transaction where payment is not deferred beyond normal terms. Where payment is deferred beyond normal terms, the creditor is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Fund accounting

Unrestricted funds are those that can be used in accordance with the charitable objectives at the discretion of the Trustees and include designated funds, representing unrestricted funds which have been earmarked for particular purposes.

Restricted funds are to be used in accordance with charitable objects and specific restrictions placed by the donor. Restricted funds have been further subdivided into restricted income funds and endowment funds. Restricted income funds are expendable at the discretion of the Trustees on specific purposes as required by donors.

Endowment funds represent those assets that are required to be invested to produce income to meet expenditure, either as directed by the endowment or for general purposes.

A transfer is made between restricted capital funds, representing tangible fixed assets required to be held for restricted purposes, and unrestricted funds to match depreciation charged on those tangible fixed assets.

Cash at bank and in hand

Cash at bank and in hand includes cash equivalents which are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value. These include deposits with more than 24 hours’ notice to access. Any cash deposits at institutions with a notice period of longer than three months are separately disclosed under Short term investments: Deposits.

Short term investments: Deposits

Cash deposits with notice periods of more than three months are separately disclosed on the balance sheet and included in investing activities for the purposes of the cash flow statement. These have a maturity date of less than one year and are held for investment purposes rather than to meet short-term cash commitments as they fall due.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less accumulated depreciation. Tangible fixed assets costing less than £1,500 are not capitalised and are expensed through the income and expenditure account. Depreciation is provided at annual rates on a straight-line basis to write off the cost of tangible fixed assets over their estimated useful lives.

60

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

The principal rates used are as follows:

Freehold land and buildings 1 - 10%
Equipment and vehicles 2 - 33%
Stage, production and technical equipment 2 - 20%
Other equipment 2 - 25%
Computer hardware 33%
Motor vehicles 25%

Assets in course of construction are transferred to functional tangible fixed asset categories when the asset is ready for use and depreciated thereafter.

Heritage assets

The Royal Opera House maintains the following types of heritage assets:

Heritage assets are carried at fair value. Fair value of the fine art collection is based on retail replacement cost. Management have made reference to the latest available external valuations in forming their assessment of period end fair value. Gains and losses on revaluation are recognised through ‘Other recognised gains’ in the Statement of Financial Activities.

The Royal Opera House only recognises new acquisitions on the Balance Sheet where the value of these acquisitions is greater than £10,000. Purchases under £10,000 are recognised as an expense in the income and expenditure account in the period they were incurred.

Outside of those assets recognised on the balance sheet, there is an extensive collection of other items that are not valued and not included on the balance sheet. These include, but are not limited to, costumes, accessories, music scores and the audio visual collection. Before embarking on a comprehensive valuation, these assets would need to be fully catalogued, and given the extent of the items this would be a considerable and lengthy task. Also, due to the uniqueness of the majority of these assets, there is no comparable market value.

Expenditure which is required to preserve or prevent further deterioration of individual collection items is recognised in the income and expenditure account when it is incurred. The Collections department has a rolling programme of review and restoration and the budget put aside for this on an annual basis is £15,000.

Investments

Investments, excluding investments in subsidiaries, are shown at fair value as at the balance sheet date. A fair value measurement is categorised in its entirety on the basis of the lowest level input that is significant to the fair value measurement in its entirety.

Level 1: The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.

Level 2: Inputs other than the quoted prices within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly.

Level 3: Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.

Realised and unrealised gains on investments are recognised in the income and expenditure account. Investments in subsidiaries are recorded at cost in the individual balance sheet of the charity.

61

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the exchange rate ruling at balance sheet date. Transactions in foreign currency are translated at the exchange rate ruling at that date of the transaction. Foreign currency gains and losses are recognised as resources expended in the income and expenditure account.

Intangible fixed assets

Intangible fixed assets include investment in programming costs and computer software.

Investment in programming costs are capitalised and amortised over their expected useful life, which is up to two years depending on format and the terms of licences acquired. The costs capitalised are third party costs that include capture costs, post-production costs, rights clearances and other directly attributable costs. These assets are reviewed for impairment where events or changes in circumstances indicate that the carrying amount may not be recoverable. Any anticipated losses on individual projects are expensed in the income and expenditure account.

Computer software is stated at cost less accumulated amortisation. Computer software costing less than £1,500 is not capitalised and is expensed through the income and expenditure account. Amortisation is provided at an annual rate of 33% on a straight-line basis to write off the cost of the computer software over its estimated useful life. Computer software in course of construction is transferred to the intangible asset category when the asset is ready for use, and amortised thereafter.

Basic Loans

Loans payable are included at their amortised cost and disclosed in note 26. The long term portion is included in Creditors: amounts falling due after one year with the current portion included in Creditors: amounts falling due within one year.

Loans receivable are included at their amortised cost and disclosed in note 25. The long term portion is included in Debtors: Amounts due after one year with the current portion included in Debtors: amounts due within one year.

Expenditure

Expenditure on charitable activities comprises expenditure on productions, sales and operations of the Royal Opera House, and grants and transfers to third party organisations. Direct expenditure on productions staged is charged to costs of production and sales on the day of the first performance. Expenditure relating to productions which have not had their first performance by the period end are held on the balance sheet under the caption ‘Productions in preparation.’

Expenditure on raising funds consist of direct fundraising costs, investment managers fees and costs of commercial trading operations. These costs are recognised when incurred.

Support costs, including management and administration, and premises and depreciation costs have been allocated across expenditure on production, sales and operation, and expenditure on raising funds. Support costs are analysed in note 15.

On occasion, management decides to make redundancy or termination payments for operational reasons. These are expensed in the SOFA on an accruals basis.

Governance costs, including audit fees and legal and professional fees on statutory and governance matters, are allocated across expenditure on productions, sales and operation, and expenditure on raising funds. These are analysed in note 14.

Interest payable is shown separately in note 15 and in note 26.

Any irrecoverable VAT is included as part of the cost to which it relates.

62

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Leases

As a lessee: Operating lease rentals are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

As a lessor: Finance leases are leases in which substantially all the risks and rewards of ownership, other than legal title, are transferred to the lessee. Assets acquired and held for use under finance leases are presented as a debtor at an amount equal to the net investment in the lease. Finance income is subsequently recognised at a constant periodic rate of return on that net investment. Contingent rentals arising under finance leases are recognised on receipt.

Pension costs

The charity operates a pension scheme providing benefits based on final pensionable pay, which is now closed to future accrual. Pension scheme assets are measured at fair value. Pension scheme liabilities are measured using a projected unit method and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability method. The pension scheme liability is disclosed on the balance sheet within unrestricted funds. The actuarial gain or loss for the period is disclosed under other recognised gains and losses in the Statement of Financial Activities. The current service costs and finance charge are included within expenditure on productions, sales and operations. These movements are analysed in detail in note 31.

The group also contributes to five defined contribution schemes for dancers, singers, musicians, and administration staff. The amounts charged to the Statement of Financial Activities represent the contributions payable to the schemes during the period. The amounts are shown in the Statement of Financial Activities in the same activity as the payroll costs which relate to that activity. For amounts which relate to payroll costs within support costs, these are allocated to the relevant activity on the same basis as other support costs (see note 15).

Any liabilities for unpaid contributions at year end are included in unrestricted creditors in the balance sheet.

Stocks

Retail items are included at the lower of cost and net realisable value.

Productions in preparation

Expenditure relating directly to a production which is incurred in advance of its staging, such as commissioning, build costs and stocks of production materials, are held in the first instance on the balance sheet and disclosed under the heading ‘Productions in preparation.’ These costs are subsequently charged to the income and expenditure account in the period in which the production’s first performance takes place.

Gifts in kind

Investments and other assets donated to the charity are included as donated voluntary income valued at market value at the time of receipt.

Volunteers

The Royal Opera House Group benefits from the role played by volunteers, which includes assisting in certain learning and participation activities, helping with large mail-outs and some general administrative support. The Royal Opera House Volunteer Programme includes a number of volunteers in Thurrock. Donated services such as the contribution from unpaid volunteers are not recognised in the Statement of Financial Activities as the amounts involved would be impractical to measure.

Financial Instruments

Financial instruments are accounted for in accordance with FRS102. Financial instruments are recognised only when the Group and Charity becomes a party to the contractual provisions of the instrument.

The initial amount recognised is the transaction price, except for financing transactions (for example, loans below market rate or accounts where payment is deferred beyond normal terms) where the amount recognised initially is the present value of the future payments, discounted at a market rate of interest for a

63

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

similar debt instrument and subsequently at amortised cost using the effective rate of interest determined at inception of the loan.

Subsequent measurement at each year end for non-financing transactions is:

For financial assets measured at amortised cost, an impairment assessment is conducted at year end and if there is any objective evidence of an impairment loss, that loss is recognised in the Statement of Financial Activities immediately. Where there is subsequently objective evidence that the circumstances have improved, the impairment loss is reversed in the Statement of Financial Activities immediately, limited to what the carrying amount would have been without the initial impairment.

A financial asset and a financial liability is offset and the net amount presented in the Balance Sheet when, and only when, (a) there is currently a legally enforceable right to set off the recognised amounts; and (b) there is intention either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial instruments are disclosed in note 33. See policies above for specific policies for cash at bank and in hand, debtors, creditors, investments and basic loans.

Taxation

As a charitable entity, the Royal Opera House Covent Garden Foundation (Limited by Guarantee) is exempt from corporate taxation, so long as it uses its resources for charitable purposes. There are no recognised deferred tax amounts in the subsidiaries as there are no recognised significant timing differences.

Employee benefits

All employee benefits are recognised as expenses in the period in which they are incurred. Postemployment benefits, representing contributions into defined contribution plans for current staff are equally recognised as expenses in the period in which the contribution payable is exchanged for services rendered by staff. The assets of the scheme are held separately from the charity.

A termination benefit liability is recognised at the earlier of the following dates:

Prior period adjustments

A reclassification of the Susan Olde Music Director Fund totalling £1,583k from restricted funds to endowment funds for the opening reserves has been made.

A correction has been made to the prior period restricted income and expenditure in the group statement of financial activities, where £9,595k of both income and expenditure have been reclassified from unrestricted to restricted. All restricted funds receivable were fully expended in the year, there was no impact on the opening reserves of 2022/23.

A further correction has been made to the prior period unrestricted income and expenditure in the group statement of financial activities, to correct a consolidation error of £3,774k which overstated both income and expenditure. There was no impact on the opening reserves of 2022/23.

64

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

2. Subsidiary undertakings

Charitable subsidiaries

The charity has one connected charity – the Royal Opera House Endowment Fund 2000. The Royal Opera House Endowment Fund 2000 is treated as a subsidiary for reasons outlined in Note 1.

Royal Opera House Endowment Fund 2000 (the “Endowment Fund”) supports the work of the Royal Opera House and other organisations by raising funds to support projects which increase the appreciation and understanding of the musical arts in all forms. It is a separately registered charity, and its board has a majority of Trustees who are independent of the Royal Opera House.

The summary results for the Endowment fund are shown below:

Income
Donations, legacies and similar income
Investment income
Other Income
Total income
Expenditure
Cost of sales and administrative expenses
Donations and grants to other group undertakings
Investment managers' fees
Total expenditure
Gains / (losses) on revaluation and disposal of investments
Net movement in funds		 Endowm
Year Ended
31-Aug-23
£'000
914
1,152
6,300
8,366
(15)
(2,324)
(269)
(2,608)
52
5,810		 ent Fund
Year Ended
31-Aug-22
£'000
1,798
489
-
2,287
(20)
(6,072)
(275)
(6,367)
(648)
(4,728)

65

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

2. Subsidiary undertakings (continued)

The assets and liabilities of the Endowment fund were:

Fixed asset investments
Current assets
Current liabilities
Total net assets
Total funds		 Endo
31-Aug-23
£'000
38,275
14,333
(5)
52,603
52,603		 wment Fund
31-Aug-22
£'000
38,426
8,619
(253)
46,792
46,792

Except for fixed asset investments which at 31 August 2023 had an historical cost of £35.4m (31 August 2022: £35.4m) there is no difference between the carrying values and their historical cost equivalents.

Trading subsidiaries

The charity has two trading subsidiaries – ROH Holdings Limited and Royal Opera House Enterprises Limited.

Royal Opera House Enterprises Limited (“ROHEL”) is a wholly owned trading subsidiary, whose principal activities are catering to customers and staff of the Royal Opera House, the sponsorship of Royal Opera House productions, multimedia production and distribution, hire of allocated spaces within the Royal Opera House, the sale of merchandise through the Royal Opera House shop, the sale of advertising through the Royal Opera House programmes and the licensing of the Royal Opera House brands. The charity owns the entire issued share capital. The reporting date of ROHEL is the same as the charity’s, which falls on the last Sunday in August each year.

ROH Holdings is a holding company and has one wholly owned subsidiary, ROH Developments Limited, a property development company. The ROH Holdings Group prepares its accounts to 31 August each year. Summary trading results of all trading subsidiaries are shown below:

Turnover
Cost of Sales
Gross profit
Administration and financial expenses
Operating profit
Profit before taxation
Net profit for the period
Donations under the gift aid scheme
Retained result in subsidiary for the period		 ROHEL
52 week
period ended
27-Aug-23
£'000
20,882
(14,462)
6,420
(1,494)
4,926
4,926
4,926
(4,926)
-
52 week
period ended
28-Aug-22
£'000
14,341
(10,202)
4,139
(1,299)
2,840
2,840
2,840
(2,840)
-		 ROH
52 week
period ended
31-Aug-23
£'000
5
(5)
-
-
-
-
-
-
-		 HL
52 week
period ended
31-Aug-22
£'000
5
(5)
-
-
-
-
-
-
-

66

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

2. Subsidiary undertakings (continued)

The assets and liabilities of each trading subsidiary were:

Intangible fixed assets
Current assets
Current liabilities
Non-current liabilities
Total net assets
Aggregate share capital and reserves		 ROH
27-Aug-23
£'000
-
5,196
(5,020)
-
176
176		 EL
28-Aug-22
£'000
-
2,713
(2,337)
(200)
176
176		 ROHH
31-Aug-23
£'000
320
17
(17)
-
320
320		 L
31-Aug-22
£'000
320
10
(10)
-
320
320

For 2022/23, total income receivable for Royal Opera House Covent Garden Foundation was £150.7m (52 week period ended 28 August 2022: £122.0m) , and results for the year were £11.1m net income after actuarial gains (52 week period ended 28 August 2022: £15.1m) .

3. Income from operation of Royal Opera House

Unrestricted funds:
Box office receipts:
The Royal Opera
The Royal Ballet
Other income:
Publications
Other
Theatre Tax Credit
UK total
Overseas touring receipts		 52 week
period ended
27-Aug-23
£'000
30,767
21,796
921
5,184
20,603		 52 week
period ended
27-Aug-23
£'000
52,563
26,708
79,271
1,021
80,292		 52 week
period ended
28-Aug-22
£'000
23,747
15,882
751
3,853
6,774		 52 week
period ended
28-Aug-22
£'000
39,629
11,378
51,007
-
51,007

Other income of £5.18m (52 week period ended 28 August 2022: £3.85m) represents box office receipts from productions, other than those on the main stage, co-production income and income from production and costume hires, income from audio-visual exploitation, income from learning and participation, income from ice-cream sales and backstage tours and other income from sundry sources. Theatre tax credit of £20.6m (52 week period ended 28 August 2022: £6.77m) includes £2.91m related to the prior year (52 week period ended 28 August 2022: nil) .

67

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

4. Grants from the UK Government

. Grants from the UK Government
52 week 52 week
period ended period ended
27-Aug-23 28-Aug-22
£'000 £'000
Restricted funds:
UK Government – Coronavirus Job Retention
Scheme - 18

The UK Government’s Coronavirus Job Retention Scheme (CJRS) was announced on 20 March 2020 as one of a number of support schemes for UK employers as a result of the impact of the Covid-19 pandemic. Initially the scheme was to run for three months, backdated to 1 March 2020. The UK Government extended the scheme into 2021 with support varying from 60% of a staff wage up to a maximum of £1,875 per person per month to 80% of a staff wage up to a total of £2,500 per person per month. No national insurance or employer pension contributions were supported. The scheme closed at 30 September 2021.

5. Donations, legacies and similar incoming resources

Membership
Events
Donations, gifts and legacies
Restated
Membership
Events
Donations, gifts and legacies		 Unrestricted Funds
£'000
7,715
895
10,505
19,115		 Restricted Funds
£'000
-
-
14,974
14,974		 Endowment Funds
£'000
-
-
914
914		 52 week
period ended
27-Aug-23
£'000
7,715
895
26,393
35,003
Unrestricted Funds
£'000
7,483
703
11,192
19,378		 Restricted Funds
£'000
-
-
15,917
15,197		 Endowment Funds
£'000
-
-
1,797
1,797		 52 week
period ended
28-Aug-22
£'000
7,483
703
28,609
37,092

The Royal Opera House Endowment Fund 2000 is the beneficiary of a number of legacies, the value of which cannot be ascertained with certainty. Based on the information available at the date of the financial statements, it is estimated that the charity will receive approximately £2.5m from these legacies.

As the receipt of these legacies is dependent on future events, they are not recognised as an asset in the statement of financial position. However, they are disclosed in this note as a contingent asset in accordance with FRS 102 SORP paragraph 5.34.

68

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

6. Grants from Arts Council England

. Grants from Arts Council England
Unrestricted funds:
Arts Council England - grant in aid
Restricted funds:
Arts Council England - Bridge funding		 52 week
period ended
27-Aug-23
£'000
23,553
749		 52 week
period ended
28-Aug-22
£'000
24,471
741

Other forms of government assistance, apart from Arts Council England, included grants from the Thurrock Borough Council and other government agencies for learning and participation projects of £0.05m (52 week period ended 28 August 2022: £0.13m) included as other income in Note 3.

7. Commercial Trading Income

Unrestricted Funds
Catering
Sponsorship
Sales of audio-visual materials
Cinema broadcast
Retail
Promotions and summer season
Venue Hire
Advertising
Property recharges
Licensing		 52 week
period ended
27-Aug-23
£'000
12,022
2,613
248
2,712
1,656
546
544
190
285
66
20,882		 52 week
period ended
28-Aug-22
Restated
£'000
8,977
1,872
323
1,048
1,108
341
460
156
500
56
14,841

69

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

8. Investment income

Dividend and interest income
Finance lease interest income
Dividend and interest income
Finance lease interest income		 Unrestricted
Funds
£'000
2,595
136
2,731
Unrestricted
Funds
£'000
385
270
655		 Restricted Funds
£'000
388
-
388
Restricted Funds
£'000
88
-
88		 Endowment Funds
£'000
-
-
-
Endowment Funds
£'000
-
-
-		 52 week
period ended
27-Aug-23
£'000
2,983
136
3,119
52 week
period ended
28-Aug-22
£'000
473
270
743

Dividend and interest income is earned on funds managed (for the Royal Opera House Endowment Fund 2000) by the investment managers Stonehage Fleming Investment Management Limited, Troy Asset Management Limited and Newton Investment Management Limited, as well as interest received on bank deposits. Finance lease interest income was derived from the leases for the retail units on the site of the Royal Opera House until 28[th] February when the lease interest was varied and sold to Shaftesbury Capital Plc.

9. Other income

Sale of kiosk income
Gain on variation of lease
Sale of kiosk income
Gain in variation of lease		 Unrestricted
Funds
£'000
799
-
799
Unrestricted
Funds
£'000
-
-
-		 Restricted Funds
£'000
-
-
-
Restricted Funds
£'000
-
-
-		 Endowment Funds
£'000
-
6,300
6,300
Endowment Funds
£'000
-
-
-		 52 week
period ended
27-Aug-23
£'000
799
6,300
7,099
52 week
period ended
28-Aug-22
£'000
-
-
-

70

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

9. Other income (continued)

During the year ended 27th August 2023 the Charity recognised a total of £6.3m (2022: nil) in other income. This income was generated from variation of the lease of retail units. The gain of £6.3m resulting from the variation of the leases was after the property valuation undertaken by Gerald Eve LLP on 19 September 2019 deemed the fair value of this asset to be £12.0m and the book value held under debtors was £5.7m.

10. Expenditure on generating voluntary income

Fundraising staff costs
Fundraising overheads
Support costs (note 15)
Restated
Fundraising staff costs
Fundraising overheads
Support costs (Note 15)		 Unrestricted Funds
£'000
2,178
1,590
1,433
5,201
Unrestricted Funds
£'000
1,925
1,182
1,251
4,358		 Restricted Funds
£'000
-
-
-
-
Restricted Funds
£'000
-
16
-
16		 Endowment Funds
£'000
-
270
-
270
Endowment Funds
£'000
-
258
-
258		 52 week
period ended
27-Aug-23
£'000
2,178
1,860
1,433
5,471
52 week
period ended
28-Aug-22
£'000
1,925
1,456
1,251
4,632

71

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

11. Expenditure on commercial activities

Retail costs
Advertising and licensing costs
Sponsorship costs
Cinema broadcast costs
Property recharges
Catering costs
Other commercial costs
Retail costs
Advertising and licensing costs
Sponsorship costs
Cinema broadcast costs
Property recharges
Catering costs
Other commercial costs		 Unrestricted
Funds
£'000
824
57
626
1,554
285
9,695
938
13,979
Unrestricted
Funds
£'000
565
27
327
1,021
500
7,518
748
10,706		 Restricted Funds
£'000
-
-
-
-
-
-
-
-
Restricted Funds
£'000
-
-
-
-
-
-
-
-		 Endowment Funds
£'000
-
-
-
-
-
-
-
-
Endowment Funds
£'000
-
-
-
-
-
-
-
-		 52 week
period ended
27-Aug-23
£'000
824
57
626
1,554
285
9,695
938
13,979
52 week
period ended
28-Aug-22
£'000
565
27
327
1,021
500
7,518
748
10,706

72

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

12. Expenditure on productions, sales and operations

The Royal Opera
The Royal Ballet
Orchestra of the Royal Opera House
Royalties and hire fees
Production
Stage and transport
Touring expenses
Other production and sales costs
Front of House
Marketing and publicity
Education, archives & live relays
Support costs (note 15)
Grants (note 13)
Restated
The Royal Opera
The Royal Ballet
Orchestra of the Royal Opera House
Royalties and hire fees
Production
Stage and transport
Other production and sales costs
Front of House
Marketing and publicity
Education, archives & live relays
Support costs (note 15)
Grants (note 13)		 U Unrestricted
Funds
£'000
17,575
10,428
10,647
1,671
9,279
14,176
685
7,808
1,673
9,734
619
34,029
10
118,334
nrestricted
Funds
£'000
14,080
9,560
9,650
1,036
5,982
12,448
5,490
1,297
9,395
234
26,594
48
96,220		 Restricted Funds
£'000
1,717
1,980
5
-
5,667
60
-
722
-
-
4,416
1,400
-
15,967
Restricted Funds
£'000
2,886
2,031
28
-
6,158
-
700
-
-
3,196
2,105
-
17,104		 Endowment Funds
£'000
798
-
-
-
92
-
-
-
-
-
-
116
-
1,006
Endowment Funds
£'000
-
-
-
-
147
-
-
-
-
418
3,914
-
4,479		 52 week
period ended
27-Aug-23
£'000
20,090
12,408
10,652
1,671
15,038
14,237
685
8,530
1,673
9,734
5,035
35,545
10
135,307
52 week
period ended
28-Aug-22
£'000
16,966
11,749
9,678
1,036
12,455
12,448
6,270
1,297
9,395
3,848
32,613
48
117,803

The employer cash contribution to the defined benefit pension scheme is included in the expenditure on productions, sales and in operations in the Unrestricted fund in the Statement of Financial Activities (refer to note 31).

73

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

13. Grants

3. Grants
Unrestricted funds
Grant to Royal Ballet School		 52 week
period ended
27-Aug-23
£'000
10
10		 52 week
period ended
28-Aug-22
£'000
48
48

Grants made are in furtherance of the charity’s objectives.

14. Governance costs

Unrestricted funds
External audit (see note 16)
Legal and professional costs		 52 week
period ended
27-Aug-23
£'000
142
347
489		 52 week
period ended
28-Aug-22
£'000
136
317
453

15. Allocation of support costs

Management and administration
Premises
Depreciation, amortisation and impairment
External audit
Legal and professional costs
Interest payable
Restated
Management and administration
Premises
Depreciation, amortisation and impairment
External audit
Legal and professional costs
Interest payable		 Expenditure on
production, sales and
operations (note 12)
27-Aug-23
£'000
8,468
16,641
9,494
136
334
472
35,545
Expenditure on
production, sales and
operations (note 12)
28-Aug-22
£'000
7,009
12,158
12,464
131
305
546
32,613		 Expenditure on
generating voluntary
income (note 10)
27-Aug-23
£'000
341
671
383
6
13
19
1,433
Expenditure on
generating voluntary
income (note 10)
28-Aug-22
£'000
269
466
478
5
12
21
1,251		 Total 52 week
period ended
27-Aug-23
£'000
8,809
17,312
9,877
142
347
491
36,978
Total 52 week
period ended
28-Aug-22
£'000
7,278
12,624
12,942
136
317
567
33,864

Directly attributable support costs are allocated to governance costs where appropriate. The remaining support costs are pro-rated between the key cost driving areas: expenditure on productions, sales and operations and expenditure on raising funds, based on their proportional costs to the overall costs.

74

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

16. Total expenditure

Net income / (expenditure) is stated after charging the following:

et income / (expenditure) is stated after charging the following:
52 week 52 week
period ended period ended
27-Aug-23 28-Aug-22
£'000 £'000
Fees payable to the charitable company's auditor for the audit of the charitable company's
annual accounts 142 111
Fees payable to the charitable company's auditor for other services:
Audit of the charitable company's subsidiaries, pursuant to legislation 25 25
Fees payable for tax and advisory services 63 -
Depreciation and other amounts written off:
Tangible fixed assets - owned (note 21) 8,085 8,587
Amortisation of intangible fixed assets (note 20) 1,425 575
Operating leases - land and buildings 1 14
Interest payable 491 567

17. Gross transfers between funds

Gross transfers between
funds
Depreciation & Amortisation
17(a)
Fixed Asset Fund
17(b)
Other Designated Funds
17(c)
Endowment
17(d)		 Unrestricted
General Fund
£'000
77
2,556
(12,008)
-
(9,375)		 Unrestricted
Designated Fund
£'000
-
(2,056)
12,008
-
9,952		 Restricted
Funds
£'000
(77)
(500)
-
29
(548)		 Endowment
Funds
£'000
-
-
-
(29)
(29)		 52 week
period ended
27-Aug-23
£'000
-
-
-
-
-
Gross transfers between
funds
Depreciation & Amortisation
17(a)
Fixed Asset Fund
17(b)
Other Designated Funds
17(c)
Endowment
17(d)		 Unrestricted
General Fund
£'000
251
7,837
(6,448)
296
1,640		 Unrestricted
Designated
Fund
£'000
-
(7,337)
6,448
-
(889)		 Restricted Funds
£'000
(251)
(500)
-
-
(751)		 Endowment
Funds
£'000
-
-
-
(296)
-		 52 week
period ended
28-Aug-22
£'000
-
-
-
-
-

(a) Depreciation of £0.1m (52 week period ended 28 August 2022: £0.3m) was charged against unrestricted income then matched by a transfer from restricted funds. Restricted funds include those funds that have been granted specifically to finance the capital expenditure on the Bob and Tamar Manoukian Production Workshop and the Bob and Tamar Manoukian Costume Centre.

(b) A net transfer of £2.6m (52 week period ended 28 August 2022: £7.8m) was made to the Unrestricted General Fund. There was a transfer from Restricted Funds of £0.5m, representing amounts received for the Open Up project (52 week period ended 28 August 2022: £0.5m). There was a transfer of £2.1m from the Unrestricted Fixed Asset Fund to the Unrestricted General Fund, representing a transfer for the net decrease in the charity’s tangible fixed assets (52 week period ended 28 August 2022: £7.3m).

75

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

17. Gross transfers between funds (continued)

(c) A net transfer of £12.0m (52 week period ended 28 August 2022: £6.4m) was made to Other Designated Funds. The transfer to Other Designated Funds represents funds for specific future projects.

(d) Transfers of £0.03.m (52 week period ended 28 August 2022 restated: £0.3m transfer from Endowment Funds to Unrestricted Funds) were made to Restricted Funds from Endowment Funds to ensure carried forward balances are accurate.

18. Staff numbers and costs

The number of permanent staff employed by the group during the period was as follows:

Production
Orchestra
Royal Ballet
Royal Opera
Sales and marketing
Management and administration
Fundraising
Education and collections
Premises
Shop		 Numbe
52 week
period ended
27-Aug-23
400
101
159
103
111
118
57
46
6
28
1,129		 r of staff
52 week
period ended
28-Aug-22
364
101
153
105
101
115
52
57
3
13
1,064

The number of staff employed on a full-time equivalent basis equates to 1,055 (for 52 week period ended 28 August 2022: 978).

The aggregate payroll costs of these persons were as follows:

Payroll Costs
Wages and salaries
Social security costs
Other pension costs, of which:
-contributions to defined contribution pension schemes
-operating costs of defined benefit pension scheme
Non-PAYE payroll costs		 52 week
period ended
27-Aug-23
£'000
49,177
5,561
3,896
2,662
1,234
3,497
62,131		 52 week
period ended
28-Aug-22
£'000
41,893
5,468
4,302
2,521
1,781
3,491
55,154

The average salary cost per full-time equivalent staff member (£46,614), excluding termination costs, has increased compared to prior period (£42,835). This average increase per staff member of 8.82% is driven by our annual pay award (on average, 4%), further pay increases from London Living Wage and an additional nonconsolidated lump-sum payment to staff.

Included in the wages and salaries are termination and redundancy payments of £415,134 (for 52 week period ended 28 August 2022: £412,431) that left employment up to 27 August 2023 . All termination and redundancy costs are included in total payroll costs of £62.6m, as above.

76

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

18. Staff numbers and costs (continued)

The emoluments of all staff, including staff whose emoluments exceeded £60,000 for the period, fell within the following bands:

up to
£59,999
£60,000
-
£69,999
£70,000
-
£79,999
£80,000
-
£89,999
£90,000
-
£99,999
£100,000
-
£109,999
£110,000
-
£119,999
£120,000
-
£129,999
£130,000
-
£139,999
£140,000
-
£149,999
£150,000
-
£159,999
£160,000
-
£169,999
£170,000
-
£179,999
£180,000
-
£189,999
£190,000
-
£199,999
£200,000
-
£249,999
£250,000
-
£299,999
£550,000
-
£559,999
£800,000
-
£849,999		 Performers
176
44
30
5
6
2
1
2
1
3
1
-
-
1
-
-
-
-
-
272		 Artistic and
General
Management
792
26
14
4
4
1
3
1
1
1
2
1
2
1
1
1
1
-
1
857		 Number of
staff
52 week
period ended
27-Aug-23
Total
968
70
44
9
10
3
4
3
2
4
3
1
2
2
1
1
1
-
1
1,129		 Performers
187
36
22
10
5
-
1
1
3
2
-
-
1
-
-
-
-
-
-
268		 Artistic and
General
Management
740
22
12
3
5
2
1
-
2
1
2
2
1
1
-
1
-
1
-
796		 Number of
staff
52 week
period ended
28-Aug-22
Total
927
58
34
13
10
2
2
1
5
3
2
2
2
1
-
1
-
1
-
1,064

Emoluments comprise wages and salaries together with benefits in kind.

For staff in bandings from £60,000 and above, contributions of £827,662 (for 52 week period ended 28 August 2022: £685,612) were made during the period to defined contribution pension schemes.

Retirement benefits were accruing to 160 (28 August 2022: restated 134) of the above staff under defined contribution pension schemes, and to nil (28 August 2022: nil) under a defined benefit pension scheme.

77

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

18. Staff numbers and costs (continued)

Emoluments for the key management personnel are as follows:

52 week period ended 27-Aug-23

Salary (£) Fees (£) Total
Emoluments
(£)		 Pension
(£)		 National
Insurance
(£)		 Total (£)
Sir Antonio Pappano,
Music Director		 125,042 690,197 815,239 10,000 113,811 939,050
Alexander Beard, CBE,
Chief Executive		 299,924 - 299,924 3,113 40,700 343,737
Kevin O'Hare, Director,
The Royal Ballet		 213,073 - 213,073 20,749 28,352 262,174
Oliver Mears, Director of
Opera		 182,880 16,100 198,980 7,315 26,547 232,842
820,919 706,297 1,527,216 41,177 209,410 1,777,803

52 week period ended 28-Aug-22

Salary (£) Fees (£) Total
Emoluments
(£)		 Pension
(£)		 National
Insurance
(£)		 Total (£)
Sir Antonio Pappano,
Music Director		 118,997 446,250 565,247 10,833 81,093 657,173
Alexander Beard, CBE,
Chief Executive		 238,645 - 238,645 - 32,995 271,640
Kevin O'Hare, Director,
The Royal Ballet		 184,265 - 184,265 18,427 25,614 228,306
Oliver Mears, Director of
Opera		 172,602 - 172,602 6,554 23,414 202,570
714,509 446,250 1,160,759 35,814 163,116 1,359,689

Emoluments for Sir Antonio Pappano and Oliver Mears comprise a salary and separately contracted fees for conducting and directing, respectively, and any other payments for exploitation. The total level of fees varies season to season depending on the number of Royal Opera House engagements undertaken, and for Sir Antonio Pappano, his conducting fee did not increase in the period. Even before the terms of the cultural recovery fund loan which required senior staff earning more than £150k to reduce their salary by 10%, Alex Beard had voluntarily taken a cut of 25% of salary. That full reduction remained in place for over two years from 2020 until 2022 before the Board of Trustees began a process over time of redressing the cut. It remains 8% below the level it would have been had his pre-Covid salary been subject to the subsequently negotiated cost of living increases for all other staff, and is a 20% real terms cut when compared to the CPI over this period.

Key management personnel are reflected in the table above. Their compensation for the 52 week period ended 27 August 2023 included emoluments of £1.5m (52 week period ended 28 August 2022: £1.2m) which together with pension costs of £41,177 (52 week period ended 28 August 2022: £35,814) and employer contributions to national insurance of £209,410 (52 week period ended 28 August 2022: £163,116) came to £1.8m (52 week period ended 28 August 2022: £1.4m). Key management personnel also include Trustees who receive no compensation as detailed in note 29. Key management personnel do not include all of the Executive Team as listed in the Trustees’ report.

78

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

19. Net Gains on investments and on revaluation of heritage assets

Endowment Funds
Realised gains on disposal of investments
Unrealised gains / (loss) on revaluation of investments
Gain / (loss) on investment assets
Unrestricted Funds
Unrealised gains / (loss) on revaluation of heritage assets
Gains / (Loss) on heritage assets		 52 week
period ended
27-Aug-23
£'000
18
34
52
52 week
period ended
27-Aug-23
£'000
-
-		 52 week
period ended
28-Aug-22
£'000
35
(683)
(648)
52 week
period ended
28-Aug-22
£'000
-
-

20. Intangible fixed assets

Group and Charity
Cost
At beginning of period
Additions
Disposals
At end of period
Amortisation
At beginning of period
Amortisation for period
Disposals
At end of period
Net book value
At 27 August 2023
At 28 August 2022		 Investment in
Programming
£'000
17,120
484
(17,604)
-
17,077
527
(17,604)
-
-
43		 Computer Software
£'000
7,135
976
-
8,111
5,686
898
-
6,584
1,527
1,449		 Total
£'000
24,255
1,460
(17,604)
8,111
22,763
1,425
(17,604)
6,584
1,527
1,492

79

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

21. Tangible fixed assets

Group
Cost
At beginning of period
Additions
Transfers
Disposals
At end of period
Depreciation and diminution in
value
At beginning of period
Charge for period
Disposals
At end of period
Net book value
At 27 August 2023
At 28 August 2022
Charity
Cost
At beginning of period
Additions
Transfers
Disposals
At end of period
Depreciation and diminution in
value
At beginning of period
Charge for period
Disposals
At end of period
Net book value
At 27 August 2023
At 28 August 2022		 Freehold
premises
£'000
210,034
859
-
(1,348)
209,545
63,398
4,338
(546)
67,190
142,355
146,636
Freehold
premises
£'000
210,034
859
-
(1,348)
209,545
63,398
4,338
(546)
67,190
142,355
146,636		 Assets in the course of
construction
£'000
1,861
2,874
(1,859)
-
2,876
-
-
-
-
2,876
1,861
Assets in the course of
construction
£'000
1,861
2,874
(1,859)
-
2,876
-
-
-
-
2,876
1,861		 Equipment & vehicles
£'000
92,974
2,023
1,859
(1,206)
95,650
60,723
3,747
(1,142)
63,328
32,322
32,251
Equipment & vehicles
£'000
92,952
2,022
1,859
(1,206)
95,627
60,701
3,747
(1,142)
63,306
32,321
32,251		 Total
£'000
304,869
5,756
-
(2,554)
308,071
124,121
8,085
(1,688)
130,518
177,553
180,748
Total
£'000
304,847
5,755
-
(2,554)
308,048
124,099
8,085
(1,688)
130,496
177,552
180,748

Assets in the course of construction represents projects in progress and equipment received but not placed in service before the period end (£2.9m).

In 2013, a fixed and floating charge lasting 30 years was provided as security for the potential repayment obligations under a grant of £10m from Arts Council England for capital projects.

80

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

21. Tangible fixed assets (continued)

In October 2014, a first deed of mortgage over the Bob and Tamar Manoukian Costume Centre and by way of first fixed charge, all its present and future plant and machinery on or serving the Property (apart from the mortgage charge) and the rents (if any) was provided as security for a loan of £1.5m from the Thurrock Borough Council. The current balance of the loan is £1.23m. The net book value of the Bob and Tamar Manoukian Costume Centre at 27 August 2023 was £4.0m (28 August 2022: £4.1m).

As part of the actuarial valuation of the pension scheme (see note 31), the Trustees secured a charge on the Royal Opera House’s main self-occupied property to help cover the cost of transferring the Scheme’s liabilities to an insurance company (up to the amount of £64.4m) if the Royal Opera House became insolvent.

22. Investments

(a) Group: The following investments were held through the Royal Opera House Endowment Fund 2000 at period end:

Held with investment managers:
- Venture funds
- Quoted equities
- Hedge funds
- Bonds
- Cash funds
- Gold
Total investment with Investment Managers		 Group
27 August
2023
£'000
129
12,642
5
12,309
9,567
3,623
38,275		 Group
28 August
2022
£'000
217
18,026
5
9,027
7,516
3,635
38,426

81

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

22. Investments (continued)

Movements in investments held with investment managers:

Endowment Funds
Fair value at beginning of period
Additions (at cost)
Disposals
Net realised and unrealised losses
Fair value at end of the period
Historical cost at end of the period
Endowment Funds
Fair value at beginning of period
Additions (at cost)
Disposals
Net realised and unrealised gains
Fair value at end of the period
Historical cost at end of the period		 Listed
Investments
£'000
37,957
1
-
105
38,063
34,676
Listed
investments
£'000
38,466
-
-
(509)
37,957
34,676		 Other

investments
£'000
469
-
(205)
(52)
212
761
Other
investments
£'000
609
-
-
(140)
469
761		 Total
27 August
2023
£'000
38,426
1
(205)
53
38,275
35,437
Total
28 August
2022
£'000
Total
39,075
-
-
(649)
38,426
35,437

As at 31 August 2023 investments held with investment managers are measured at fair value, £38.1m (2022: £37.9m) categorised as Level 1 and £0.1m (2022: £0.5m) as Level 3.

(b) Charity: The following were the subsidiary undertakings of Royal Opera House Covent Garden Foundation as at 27 August 2023:

Country of Principal activity Percentage of
incorporation shares held
Subsidiary undertaking
ROH Holdings Limited UK Holding company 100%
ROH Developments Limited UK Property development 100%
ROH Pension Trustee Limited UK Trustee company 100%
ROH Productions Limited UK Theatre productions 100%
Royal Opera House Enterprises Limited UK Catering / Sponsorship / 100%
Multimedia production and distribution/
Retail / Venue Hire /
Licensing of brand

The issued share capital in ROH Holdings Limited (which is the holding company for ROH Developments Limited) is 2 £1 shares.

ROH Pension Trustee Limited is a non-trading subsidiary. The issued share capital is 100 £1 shares.

ROH Productions Limited has been dormant since incorporation.

The issued share capital in Royal Opera House Enterprises Limited is 125,987 £1 shares (125,987 £1 shares at 28 August 2022). The remaining balance is related to the original acquisition of Royal Opera House Enterprises Limited.

The Royal Opera House Endowment Fund 2000 is a connected charity of the Royal Opera House Covent Garden Foundation. See Note 2 for further details.

82

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

22. Investments (continued)

Investment in Royal Opera House Enterprises Limited:

Unrestricted Funds
Cost
At beginning and end of period
Net book value
At beginning of period
At end of period		 Charity
27 August
2023
£'000
6,676
6,676
6,676		 Charity
28 August
2022
£'000
6,676
6,676
6,676

23. Heritage assets

(a) Tangible fixed assets – heritage assets

Unrestricted Funds
Group and Charity
Cost or valuation
At beginning of period
Additions
Disposals
Revaluation
At end of period
At beginning of period		 Fine art
£'000
3,030
-
-
-
3,030
3,030		 Costumes &
accessories
£'000
1,477
-
-
-
1,477
1,477		 Other collections
£'000
1,515
-
-
-
1,515
1,515		 Total
27 August
2023
£'000
6,022
-
-
-
6,022
6,022

The external valuers for the Royal Opera House, Mark Peters, Senior General Valuer and David Vyvyan-Robinson, Picture Valuer of Gurr Johns, valued the entirety of the fine art collection in August 2021, on the basis of retail replacement values (RRV). RRV represents the value used for insurance, based on replacement in the retail market, or where appropriate in the second-hand retail market with items of a similar nature, age, condition and quality. The next valuation is expected to be completed in 2024.

Costumes and accessories and other collections have internal valuations. Where the valuation is internal, it has been provided by Julia Creed, Head of Collections. Julia Creed has a Master’s degree in Archives and Records Management and has worked as an archivist at the Royal Opera House since 2004; since April 2015 she has been Head of Collections. Costumes and accessories and other collections were last valued between August 2015 and August 2017. These collections are not valued more regularly due to the time and cost involved in the valuation process.

83

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

23. Heritage assets (continued)

(b) Five year financial summary of heritage asset transactions:

Unrestricted Funds
Purchases/Commissions
Fine art
Costumes & accessories
Other collections
Donations
Fine art
Costumes & accessories
Other collections
Disposals
Fine art
Costumes & accessories
Other collections
Proceeds from disposals
Fine art
Costumes & accessories
Other collections
Total additions		 27 August
2023
£'000
-
-
-
-
-
-
-
-
-
-
-
-
-		 28 August
2022
£'000
-
-
-
-
-
262
-
-
-
-
-
-
262		 29 August
2021
£'000
-
-
-
-
-
88
(11,275)
-
-
11,275
-
-
88		 30 August
2020
£'000
-
-
-
-
-
-
-
-
-
-
-
-
-		 25 August
2019
£'000
-
-
12
-
-
-
-
-
-
-
-
-
12

(c) Further information on Heritage Assets:

The Royal Opera House maintains three collections as follows:

The fine art collection consists of paintings, other pictures and drawings, furniture, furnishings, sculpture and pottery that have been donated and are on public display throughout the Royal Opera House.

The costumes and accessories collection consists of over 4,000 individual items worn by artists at the Royal Opera House. The collection contains some items from the late 19th and early 20th centuries, but most date from 1946 to the present. The majority of the collection is costumes, with a sizeable number of hats, headdresses and jewellery, and a growing number of shoes, boots and wigs.

Other collections include photographic collections, design collections, a portrait of Pavarotti and an autographed Donizetti score for Elisabetta, none of which are on permanent public display.

All assets are maintained and managed through the heritage asset register which is overseen by the Head of Collections.

Most new acquisitions are made through donation. A limited number of acquisitions are purchased where assets enhance the overall collections maintained by the charity. The Royal Opera House would not normally dispose of any heritage assets in their normal course of business.

The preservation of assets is the responsibility of the Head of Collections who holds an annual budget to maintain the quality of the assets.

The Charity exhibits assets throughout the Opera House and through exhibitions. In addition, many assets may be viewed electronically through the catalogue website at www.rohcollections.org.uk.

84

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

24. Stocks

24 Stk
. ocs
Goods for resale		 Group
27 August
2023
£'000
324
324		 Group
28 August
2022
£'000
254
254		 Charity
27 August
2023
£'000
-
-		 Charity
28 August
2022
£'000
-
-

During the 52-week period ended 27 August 2023 £742,670 (52 week period ended 28 August 2022: £539,309) of stock was expensed through the Statement of Financial Activities.

25. Debtors

. eors
Amounts due after more than one year
Finance lease debtor
Amounts due from subsidiary and associated
undertakings
Prepayments
Amounts due within one year
Trade debtors
Amounts due from subsidiary and associated
undertakings
Accrued income
Other debtors
Prepayments
Finance lease debtor		 Group
27 August
2023
£'000
-
-
717
717
Group
27 August
2023
£'000
4,763
-
22,086
1,703
2,118
-
30,670		 Group
28 August
2022
£'000
5,430
-
1,105
6,535
Group
28 August
2022
£'000
3,493
-
13,805
345
1,829
270
20,337		 Charity
27 August
2023
£'000
-
-
-
-
Charity
27 August
2023
£'000
1,862
2,903
21,588
1,703
1,626
84
29,766		 Charity
28 August
2022
£'000
-
200
-
200
Charity
28 August
2022
£'000
2,554
906
13,599
345
1,553
84
19,636

Amounts due from subsidiary and associated undertakings after more than one year in the Charity represent a loan from Royal Opera House Covent Garden Foundation to Royal Opera House Enterprises Limited, with interest charged at a rate of 2% above the Bank of England base rate.

The expected repayments on the loan are as follows:

Due within one year
Due between one year and two years
Due between two years and five years		 Capital
£'000
200
-
-
200		 Interest
£'000
6
-
-
6		 Total
52 Week
Period
Ended
27-Aug-23
£'000
206
-
-
206

85

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

25. Debtors (continued)

The finance lease debtor represents a 5% income interest in the leases for the retail units on the site of the Royal Opera House. The lease was varied on 28[th] February 2023 and sold to Shaftesbury Capital Plc.

Reconciliation between gross investment in a lease and the present value of minimum lease payments receivable is as follows:

Gross investment in a finance lease at the end of the period
Unearned finance income for the period
Present value of minimum lease payments at the end of the period		 Group
27 August
2023
£'000
-
-		 Group
28 August
2022
£'000
59,243
(53,543)
- 5,700

There are no unguaranteed residual values accruing to the lessor and no accumulated allowance for uncollectible minimum lease payments. There were no contingent rents for the period (52 week period ended 28 August 2022: nil).

The 5% interest in the leases of the retail units was varied under a dead of variation to Shaftesbury Capital Plc for £12m, following a report by Gerald Eve. The sale completed on 28 February 2023.

26. Creditors

Amounts falling due within one year

Trade creditors
Taxation and social security
Accruals
Deferred income
Deferred income at start of period
Box office receipts, subscription and donations
received
Released to statement of financial activities
Deferred income at end of period
Comprising:
Advanced bookings
Subscriptions and donations
Other deferred income		 Group
27 August
2023
£'000
4,811
5,629
11,896
24,478
46,814
Group
27 August
2023
£'000
21,906
73,879
(71,307)
24,478
11,111
7,590
5,777		 Group
28 August
2022
£'000
4,850
6,143
12,791
21,906
45,690
Group
28 August
2022
£'000
17,290
53,396
(48,780)
21,906
10,791
5,783
5,332		 Charity
27 August
2023
£'000
4,507
5,244
11,106
23,687
44,544
Charity
27 August
2023
£'000
21,056
68,115
(65,484)
23,687
11,111
7,590
4,986		 Charity
28 August
2022
£'000
4,597
6,143
11,957
21,056
43,753
Charity
28 August
2022
£'000
17,073
50,071
(46,088)
21,056
10,791
5,783
4,482

86

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

26. Creditors (continued) Amounts falling due after one year

Thurrock Borough Council Loan

Balance at the beginning of the year
Amounts repaid
Interest payable
Balance at the end of the year
Less amounts disclosed in creditors: amounts falling due within one year
Balance at the end of the year falling due after one year		 52 Week
Period
Ended
27-Aug-23
£'000
1,280
(102)
57
1,235
-
1,235		 52 Week
Period
Ended
28-Aug-22
£'000
1,323
(102)
59
1,280
-
1,280

The table below shows the amounts and timings of repayments due under the terms of the loan.

Due within one year
Due between one year and
two years
Due between two years
and five years
Due after five years		 Capital
£'000
49
51
168
961
1,229		 Interest
£'000
53
51
139
269
512		 Total
27 August
2023
£'000
102
102
307
1,230
1,741		 Capital
£'000
47
48
161
1,024
1,280		 Interest
Total
28 August
2022
£'000
£'000
55
102
54
102
146
307
313
1,337
568
1,848

In October 2014, a first deed of mortgage over the Bob and Tamar Manoukian Costume Centre and by way of first fixed charge, all its present and future plant and machinery on or serving the Property (apart from the mortgage charge) and the rents (if any) was provided as security for a loan of £1.5m from the Thurrock Borough Council. The current balance of the loan is £1.23m. The net book value of the Bob and Tamar Manoukian Costume Centre at 27 August 2023 was £4.0m (28 August 2022: £4.1m).

87

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

26. Creditors (continued) Amounts falling due after one year

Cultural Recovery Fund Loan

Balance at the beginning of the year
Amounts drawn down
Amounts repaid
Interest payable
Balance at the end of the year
Less amounts disclosed in creditors: amounts falling due within one yea
Balance at the end of the year falling due after one year
Capital
Interest
£'000
£'000
Due within one year
-
-
Due between one year and
two years
-
829
Due between two years
and five years
2,809
2,162
Due after five years
18,891
2,654
21,700
5,645		 r

Total
27 August
2023
£'000
-
829
4,971
21,545
27,345		 52 Week
Period
Ended
27-Aug-23
£'000
21,700
-
-
-
21,700
-
21,700
Capital
£'000
-
-
1,552
20,148
21,700		 52 Week
Period
Ended
28-Aug-22
£'000
21,700
-
-
-
21,700
-
21,700
Interest
Total
28 August
2022
£'000
£'000
-
-
-
-
2,591
4,143
3,054
23,202
5,645
27,345

In support of arts organisations affected by the Covid-19 pandemic, the government established a Cultural Recovery Fund (CRF) offering grants to smaller organisations and loans to larger organisations. In March 2021, the ROH received a loan from the CRF of £21.7m. The loan is interest bearing, at a rate of 2%, over a 20 year period and has a four year repayment holiday.

88

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

26. Creditors (continued) Amounts falling due after one year

Finance Leases

inance Leases
Balance at the beginning of the year
Amounts drawn down
Amounts repaid
Interest payable
Balance at the end of the year
Less amounts disclosed in creditors: amounts falling due within one yea
Balance at the end of the year falling due after one year
Capital
Interest
£'000
£'000
Due within one year
19
12
Due between one year and
two years
21
10
Due between two years
and five years
67
21
Due after five years
49
4
156
47		 r

Total
27 August
2023
£'000
31
31
88
53
203		 52 Week
Period
Ended
27-Aug-23
£'000
12
149
(6)
1
156
-
156
Capital
£'000
3
3
6
-
12		 52 Week
Period
Ended
28-Aug-22
£'000
-
18
(6)
-
12
-
12
Interest
Total
28 August
2022
£'000
£'000
-
3
-
3
1
7
-
-
1
13

89

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

27. Statement of Funds – Group

Unrestricted General fund
Unrestricted Revaluation fund
Unrestricted Designated
funds:
Unrestricted Fixed Asset Fund
Unrestricted Heritage Asset Fund
Unrestricted Future Projects Fund
Unrestricted Funds before
pension reserve
Unrestricted: pension scheme
liability
Total unrestricted funds
Restricted funds:
Thurrock Capital Fund
Production Fund
Open Up Project Fund
Arts Council England Bridge
programme fund
Arts Council England China skills
exchange
ROH Holdings Limited
Endowment Restricted Income
Fund
Learning and Participation
Other Projects
Total restricted funds
Endowment funds
Total funds		 At 28
August
2022 as
previously
stated
£'000
4,157
389
172,552
5,633
30,165
212,896
(14,178)
198,718
8,707
-
-
387
164
105
1,776
-
83
11,222
44,805
254,745		 Restatement
£’000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,582)
-
-
(1,582)
1,582
-		 At 28
August
2022 as
restated
£’000
4,157
389
172,552
5,633
30,165
212,896
(14,178)
198,718
8,707
-
-
387
164
105
194
-
83
9,640
46,387
254,745		 Incoming
Resources
£'000
147,372
-
-
-
-
147,372
-
147,372
-
5,573
500
749
-
-
388
3,241
5,660
16,111
7,214
170,697		 Outgoing
Resources
£'000
(137,954)
-
-
-
-
(137,954)
440
(137,514)
-
(5,573)
-
(864)
(16)
-
(611)
(3,241)
(5,662)
(15,967)
(1,276)
**(154,757) **		 Other
gains/
(losses)
£'000
-
-
-
-
-
-
934
934
-
-
-
-
-
-
-
-
-
-
52
986		 Transfers
£'000
(9,375)
-
(2,056)
-
12,008
577
-
577
(77)
-
(500)
-
-
-
29
-
-
(548)
(29)
-		 At 27
August
2023
£'000
4,200
389
170,496
5,633
42,173
222,891
(12,804)
210,087
8,630
-
-
272
148
105
-
-
81
9,236
52,348
271,671

Unrestricted Funds: Unrestricted funds are segregated between general funds (representing free reserves and unrestricted general funds held in trading subsidiaries) and designated funds. The three designated funds at period end were the Fixed Asset Fund which is set at a level equivalent to the charity’s fixed assets and intangible fixed assets (plus approved capital expenditure in the 2022/23 Season carried over to the 2023/24 Season), the Heritage Asset Fund which is equivalent to the charity’s heritage assets and the Designated Future Projects Fund. The Designated Future Projects Fund represents funds earmarked for specific future projects. The pension scheme liability is disclosed in accordance with FRS 102.

90

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

27. Statement of Funds – Group (continued)

Restricted Funds: The Thurrock Capital Fund has been established to hold funding received in the development of both the Bob and Tamar Manoukian Production Workshop and the Bob and Tamar Manoukian Costume Centre in Thurrock. The Production Fund represents donations received which are restricted for the purpose of specific productions. The Open Up Project Fund has been established to hold funding received towards the Open Up Project, a capital project intended to enhance audiences’ experience of our work and inspire wider interest and engagement. The Bridge Programme Fund represents funding received from Arts Council England for improving the delivery of arts opportunities for children and young people, acting as a bridge between the arts and education sectors in Thurrock, Essex, Southend, Hertfordshire, Bedfordshire, Luton and North Kent. The Endowment Restricted Income Fund represents funds expendable on specific purposes as required by donors. The Learning and Participation Fund represents donations received which are restricted for the purpose of Learning, Participation and Education projects. The Other Projects Fund represents other restricted donations received.

Endowment Funds: The balance above represents restricted permanent and expendable capital reserves held by ROH Endowment Fund 2000.

27. Statement of Funds - Charity

Unrestricted General fund
Unrestricted Revaluation
fund
Unrestricted Designated
funds:
Unrestricted Fixed Asset Fund
Unrestricted Heritage Asset
Fund
Unrestricted Future Projects
Fund
Unrestricted Funds before
pension reserve
Unrestricted: pension
scheme liability
Total unrestricted funds
Restricted funds:
Thurrock Capital Fund
Production Fund
Open Up Project Fund
Arts Council England Bridge
programme fund
Arts Council England China
skills exchange
Learning and Participation
Other Projects
Total restricted funds
Total funds		 At 28 August
2022
£'000
4,671
389
178,332
5,633
30,165
219,190
(14,178)
205,012
8,700
-
-
387
164
-
84
9,335
214,347		 Incoming
Resources
£'000
132,629
-
-
-
-
132,629
-
132,629
-
6,254
500
704
-
3,821
6,723
18,047
150,676		 Outgoing
Resources
£'000
(123,254)
-
-
-
-
(123,254)
440
(122,814)
-
(6,254)
-
(864)
(16)
(3,821)
(6,725)
(17,680)
(140,494)		 Other
gains/
(losses)
£'000
-
-
-
-
-
-
934
934
-
-
-
-
-
-
-
934		 Transfers
£'000
(9,375)
-
(2,056)
-
12,008
577
-
577
(77)
-
(500)
-
-
-
-
(577)
-		 At 27
August
2023
£'000
4,671
389
176,276
5,633
42,173
229,142
(12,804)
216,338
8,623
-
-
227
148
-
82
9,125
225,463

91

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

28. Share capital

The charity is limited by guarantee and therefore has no share capital. The liability of the members of the charity is limited to £1 each. At 27 August 2023 there were 16 members (28 August 2022: 16).

29. Connected charities and other related party transactions

Connected charities

Royal Opera House Endowment Fund 2000 - registered charity No 1089928

During the period the charity received grants of £2.3m (52 week period ended 28 August 2022: £6.1m) from Royal Opera House Endowment Fund 2000 in furtherance of its charitable objectives. At 27 August 2023, the charity owed £0.01m to the Royal Opera House Endowment Fund 2000 (28 August 2022: £0.02m).

The above charity is based at the Royal Opera House, Covent Garden, London WC2E 9DD.

Trading subsidiaries

Royal Opera House Enterprises Limited

During the period the charity received a loan repayment of £0.2m (52 week period ended 28 August 2022: £0.2m), a royalty payment of £1.1m (52 week period ended 28 August 2022: £0.5m) and a gift aid payment of £4.9m (52 week period ended 28 August 2022: £2.8m) from Royal Opera House Enterprises Limited. Additionally £0.8m of overhead were recharged from the charity to Royal Opera House Enterprises Limited (52 week period ended 28 August 2022: £0.8m) . At 27 August 2023, Royal Opera House Enterprises Limited owed £2.9m to the charity (28 August 2022: £1.1m).

The above trading subsidiary is based at the Royal Opera House, Covent Garden, London WC2E 9DD.

Royal Opera House Holdings Limited

During the period the charity received £5,000 (52 week period ended 28 August 2022: £5,000) from Royal Opera House Development Limited in respect of audit fees. At 27 August 2023, Royal Opera House Holdings Limited owed £17,000 to the charity (28 August 2022: £10,000).

The above trading subsidiary is based at the Royal Opera House, Covent Garden, London WC2E 9DD.

Royal Opera House Developments Limited

During the period the charity received gift aid payments of £5,877 (52 week period ended 28 August 2022: £147) from Royal Opera House Development Limited in furtherance of its charitable objectives. At 27 August 2023, Royal Opera House Developments Limited owed £0.1m to the charity (28 August 2022: £0.1m).

The above trading subsidiary is based at the Royal Opera House, Covent Garden, London WC2E 9DD.

Other related party transactions

No trustee had an interest in any contract or transaction with the charity or its subsidiaries in the period ended 27 August 2023. During the period no trustees received any remuneration from the charity or its subsidiaries and no trustees were reimbursed for personally-incurred expenses which were necessary to carry out trustee duties (2022: nil). The aggregate amount of unrestricted donations received from trustees was £2.8m (52 week period ended 28 August 2022: £3.3m). Of this amount, £2.5m (52 week period ended 28 August 2022: £3.0m) was received from trustees of the ROH Endowment Fund 2000.The charity undertakes transactions in its normal course of business with its subsidiaries. These transactions are carried out on an arms-length basis.

92

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

30. Commitments

(a) The Group has future minimum commitments under non-cancellable operating leases as follows:

Operating leases payable:
Not later than one year
Later than one year and not later than five years
Later than five years		 27 August 2023
Land and Buildings
£'000
1
5
141
147		 28 August 2022
Land and Buildings
£'000
1
5
142
148

(b) The group has entered into contracts with guest artists and suppliers in respect of future productions to be staged at the Royal Opera House. Commitments in respect of these contracts which are not reflected in the balance sheet are:

Less than one year
In the second to fifth years inclusive		 27 August 2023
£'000
7,689
3,618
11,307		 28 August 2022
£'000
5,005
835
5,840

(c) The group had capital commitments of £2.541m for capital projects which were not reflected in the balance sheet in period ended 28 August 2023 (28 August 2022: £0.266m).

93

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

31. Pension scheme

The Royal Opera House operates a defined benefit pension scheme, the Royal Opera House Pension Scheme. The Scheme’s funds are administered by the Trustee and are independent of the ROH’s finances. Contributions are paid to the Scheme in accordance with the Schedule of Contributions agreed between the Trustee and the ROH.

The group also contributes to five defined contribution schemes. Two are sponsored by Arts Council England and Equity (for dancers and singers) and one by the Musicians’ Union (for musicians). Two further defined contribution scheme arrangements exist for other staff groups. Contributions to these and other schemes amounted to £2.662m (52 week period ended 28 August 2022: £2.521m).

The funding plan is for the Scheme to hold assets equal to the value of the benefits earned by staff, based on a set of assumptions used for funding the Scheme. The funding assumptions differ from the assumptions used to calculate the figures for these accounts, and therefore produce different results. If there is a shortfall against this funding plan, then the Royal Opera House and Trustee agree on deficit contributions to meet this deficit over a period. As a part of the actuarial valuation with an effective date of 5 April 2021 the Trustee and the Royal Opera House have agreed that the Royal Opera House will make contributions to the scheme of £1.343m per annum from 31 July 2022 until 31 January 2037, increasing by 3.5% per annum. The Royal Opera House also makes contributions of £0.3m per annum to cover the expenses of running the Scheme.

The results of the formal actuarial valuation as at 5 April 2021 were updated to the accounting date by an independent qualified actuary in accordance with FRS 102, allowing for contributions, benefit payments made, and changes in market conditions. The results, based on assumptions used for FRS102, are as follows:

The amount included in the balance is as follows:

Fair value of plan assets
Present value of defined benefit obligation
Net liability recognised in the balance sheet		 27 August 2023
£'000
49,506
(62,310)
(12,804)		 28 August 2022
£'000
61,710
(75,888)
(14,178)

The movement in net defined benefit liability is as follows:

Opening net defined benefit liability
Cost in income and expenditure
Employer contributions
Amount recognised outside income and expenditure
Closing net defined benefit liability		 52 week
period
ended
27-Aug-23
£'000
14,178
1,238
(1,678)
(934)
12,804		 52 week
period
ended
28-Aug-22
£'000
30,118
990
(1,734)
(15,196)
14,178

94

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

31. Pension scheme (continued)

The amounts recognised in income or expenditure, in the Statement of Financial Activities are as follows:

Past service cost
Administration expenses
Interest expense
Total expense recognised in income or expenditure		 52 week
period
ended
27-Aug-23
£'000
-
690
548
1,238		 52 week
period
ended
28-Aug-22
£'000
-
481
509
990

Movement in present value of defined benefit obligation is as follows:

Opening defined benefit obligation
Past service cost
Interest on obligation
Actuarial gains / (losses)
Benefits paid
Closing defined benefit obligation		 52 week
period
ended
27-Aug-23
£'000
(75,888)
-
(2,974)
13,432
3,120
(62,310)		 52 week
period
ended
28-Aug-22
£'000
(109,846)
-
(1,840)
32,508
3,290
(75,888)

Movement in the fair value of the plan assets is as follows:

Opening fair value of plan assets
Interest on plan assets
Actual return less interest on plan assets
Administration expenses
Contributions by the employer
Benefits paid
Closing fair value of plan assets		 52 week
period
ended
27-Aug-23
£'000
61,710
2,426
(12,498)
(690)
1,678
(3,120)
49,506		 52 week
period
ended
28-Aug-22
£'000
79,728
1,331
(17,312)
(481)
1,734
(3,290)
61,710

95

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

31. Pension scheme (continued)

The current allocation of the Scheme’s assets is as follows:

Asset distribution and expected return
Equities
Bonds
Property
Infrastructure
Diversified Growth Fund
Liability Driven Investment Fund
Cash and net current assets
Total		 27 August 2023
Fair value
£'000
5,033
14,383
3,814
7,378
-
15,185
3,713
49,506		 28 August 2022
Fair value
£'000
24,664
12,661
5,506
-
7,063
11,141
675
61,710		 29 August 2021
Fair value
£'000
25,700
14,852
1,745
-
15,601
21,294
536
79,728

The Scheme does not invest directly in property occupied by the charity or in financial securities issued by the charity.

The following table sets out the significant assumptions used for the plan:

Assumptions 27 August 2023 28 August 2022 29 August 2021
Retail Prices Index Inflation 3.30% 3.60% 3.30%
Consumer Prices Index Inflation 2.40% 2.70% 2.50%
Discount rate 5.30% 4.00% 1.70%
Pension increases
(according to increases under the
scheme rules) 2.5/3.5/3.1/2.1% pa 2.5/3.7/3.4/2.2% pa 2.5/3.5/3.1/2.1% pa
Salary growth n/a n/a n/a
Life expectancy of female / male aged 65
at the accounting date 24.1/21.5 years 24.4/21.8 years 24.4/21.8 years
Life expectancy of female / male aged 65
at 20 years from the accounting date 25.5/22.7 years 25.7/23.0 years 25.9/23.1 years

Future agreed contributions from the employer to be made to fund the deficit of the defined benefit scheme are as follows:

£'000
Due within one year 967
Due between one year and two years 1,001
Due between two years and five years 3,219
Due after five years 11,786

96

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

32. Cash flows

a) Reconciliation of net outgoing resources to net cash inflow from operating activities

Net income / (expenditure) for the reporting period
Net cash (income) on Defined benefit pension scheme
Investment and finance interest income
Interest paid
(Gains) / losses on investments
Donation of heritage asset
Impairment of fixed assets
Depreciation charge
Amortisation of intangible fixed assets
(Increase) / decrease in productions in preparation
(Increase) / decrease in stock
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash provided by operating activities		 52 Week
Period
Ended
27-Aug-23
£'000
15,992
(440)
(3,119)
491
(52)
-
866
8,085
1,425
(255)
(70)
(4,515)
833
19,241		 52 Week
Period
Ended
28-Aug-22
£'000
(4,876)
(744)
(743)
568
648
(262)
4,347
8,587
575
(1,140)
185
(4,793)
10,427
12,779

b) Cash outflow from investing activities

Capital expenditure on tangible fixed assets
Capital expenditure on intangible fixed assets
Additions of investment at cost
Disposals of investments
Finance lease interest and contingent rents received
Interest income received
Redemption/(Investment) of Short term Investments: Deposits
Net cash used in investing activities
) Cash outflow from financing activities
Cash inflow on receipt of borrowings
Cash outflow on repayment of borrowings
Net cash used in financing activities		 52 Week
Period
Ended
27-Aug-23
£'000
(5,756)
(1,460)
(1)
205
136
2,983
40
(3,853)		 52 Week
Period
Ended
28-Aug-22
£'000
(4,098)
(173)
-
-
270
473
(10,061)
(13,589)
52 Week
Period
Ended
28-Aug-22
£'000
-
(102)
52 Week
Period
Ended
27-Aug-23
£'000
-
(102)
(102)
(102)

c) Cash outflow from financing activities

97

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

32. Cash flows (continued)

d) Reconciliation of cash at bank and on hand per Charity’s balance sheet and cash and cash equivalents per Group’s cash flow statement

Cash at bank and in hand per Charity's balance sheet
Cash at bank and in hand in group undertakings
ROH Endowment Fund 2000
Royal Opera House Enterprises Limited
Royal Opera House Holdings Limited
Royal Opera House Developments Limited
Cash and cash equivalents per Group's cash flow
statement
Cash at bank and in hand per Charity's balance sheet
Cash at bank and in hand in group undertakings
ROH Endowment Fund 2000
Royal Opera House Enterprises Limited
Royal Opera House Holdings Limited
Royal Opera House Developments Limited
Cash and cash equivalents per Group's cash flow
statement
) Reconciliation of net debt
At 2
Cash
Loans falling due within one year
Loans falling due after more than one year
Finance lease obligations
Total net debt		 Cash at bank and in hand per Charity's balance sheet
Cash at bank and in hand in group undertakings
ROH Endowment Fund 2000
Royal Opera House Enterprises Limited
Royal Opera House Holdings Limited
Royal Opera House Developments Limited
Cash and cash equivalents per Group's cash flow
statement
Cash at bank and in hand per Charity's balance sheet
Cash at bank and in hand in group undertakings
ROH Endowment Fund 2000
Royal Opera House Enterprises Limited
Royal Opera House Holdings Limited
Royal Opera House Developments Limited
Cash and cash equivalents per Group's cash flow
statement
) Reconciliation of net debt
At 2
Cash
Loans falling due within one year
Loans falling due after more than one year
Finance lease obligations
Total net debt		 Unrestricted
£'000
49,891
114
761
12
-
50,778
Unrestricted
£'000
46,868
243
139
-
-
47,250
8 August
2022
£'000
50,163		 Unrestricted
£'000
49,891
114
761
12
-
50,778
Unrestricted
£'000
46,868
243
139
-
-
47,250
8 August
2022
£'000
50,163		 Restricted
£'000
626
-
-
-
376
1,002
Restricted
£'000
-
195
-
-
371
566
Cash flows
£'000
15,287		 Endowment
£’000
-
13,670
-
-
-
13,670
Endowment
£’000
-
2,347
-
-
-
2,374
Other non-
cash changes
£000
-		 Total
27 August
2023
£'000
50,517
13,784
761
12
376
65,450
Total
28 August
2022
£'000
46,868
2,785
139
-
371
50,163
8 August
2022
£'000
50,163		 At 27 August
2023
£'000
65,450
-
(22,935)
(156)
42,359
-
(22,980)
(15)
27,168		 -
102
6
15,149		 -
(57)
(147)
(204)

e) Reconciliation of net debt

98

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

33. Financial Instruments

Carrying amount, income, expense, gains and losses of the Group’s Financial Instruments

----- Start of picture text -----
Carrying Income Net Carrying Income Net
Group Amount earned gains/ Amount earned gains/
(losses) (losses)
Group Interest Dividend including Group Interest Dividend including
27 28
August changes August changes
2023 income/ income/ in 2022 income/ income/ in
fair fair
(expense) (expense) value (expense) (expense) value
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Measured at fair
value through
Statement of
Financial Activities
Financial Assets 38,275 - 1,016 53 38,426 11 219 (649)
Investments 38,275 - 1,016 53 38,426 11 219 (649)
Measured at
undiscounted cash
receivable/(payable)
Financial Assets 104,372 1,961 - - 89,307 254 - -
Trade debtors 8,100 - - - 8,103 - - -
Accrued income &
Other Debtors 813 - - - 980 - - -
Cash and cash
equivalents 65,450 - - - 50,163 - - -
Short term
investments:
Deposits 30,020 1,961 - - 30,061 254 - -
Financial Liabilities (4,553) - - - (4,850) - - -
Trade creditors (4,553) - - - (4,850) - - -
Measured at
amortised cost
Financial Liabilities (22,937) (491) - - (22,980) (567) - -
Government loan (21,700) (434) - - (21,700) (509) - -
Mortgage loan (1,235) (57) - - (1,280) (58) - -
----- End of picture text -----

Financial assets carried at fair value (Investments) are measured at the quoted market price in an actively traded market. All investments are managed by reputable investment managers. Of the carrying amount at 27 August 2023 of £38.3m (28 August 2022: £38.4m), £18.2m (28 August 2022: £18.1m) is invested in markets outside of the UK. The changes to the fair value of those investments are all as a result of market risk (including foreign exchange risk). Immaterial amounts are due to credit risk. An immaterial liquidity risk exists due to the remote risk of not being able to repatriate funds.

99

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

33. Financial Instruments (continued)

Carrying amount, income, expense, gains and losses of the Charity’s Financial Instruments

----- Start of picture text -----
Carrying Income Net Carrying Income Net
Charity Amount earned gains/ Amount earned gains/
(losses) (losses)
Charity Interest Dividend including Charity Interest Dividend including
27 28
August changes August changes
2023 income/ income/ in 2022 income/ income/ in
fair fair
(expense) (expense) value (expense) (expense) value
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Measured at
undiscounted cash
receivable/(payable)
Financial Assets 89,137 1,988 - - 85,773 281 - -
Trade debtors 5,379 - - - - 7,164 - - - -
Amounts due from
subsidiary and
associated undertakings 2,934 11 - - - 906 14 - - -
Accrued income &
Other Debtors 287 - - - - 774 - - - -
Cash and cash
equivalents 50,517 - - - - 46,868 - - - -
Short term
investments: Deposits 30,020 1,977 - - 30,061 267 - -
Financial Liabilities (4,507) - - - (4,597) - - -
Trade creditors (4,507) - - - - (4,597) - - - -
Measured at amortised
cost
Financial Assets - 11 - - 200 28 - -
Amounts due from
subsidiary undertaking - 11 - - - 200 28 - - -
Financial Liabilities (22,937) (491) - - (22,980) (567) - -
Government loan (21,700) (434) - - (21,700) (509) - -
Mortgage loan (1,235) (57) - - (1,280) (58) - -
----- End of picture text -----

The financial asset measured at amortised cost above represents an inter-company loan between Royal Opera House Enterprises Limited (as borrower) and its holding company, Royal Opera House Covent Garden Foundation (Limited by Guarantee), entered into in January 2010. The unsecured loan bears interest at 2% above the Bank of England base rate, which management assess to be a commercial rate of interest. Due to the commercial rate of interest, the present value of the future cash flows approximates the carrying amount and thus the loan presents no current pricing risk. As the interest rate is a variable rate, the lender and borrower are exposed to interest rate risk.

100

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

34. Consolidated statement of financial activities for the 52 week period ended 28 August 2022 (restated)

Note
Income and endowments from:
Charitable activities
Operation of Royal Opera House (including box office)
3
Grant from Government
4
Donations and legacies
Donations, legacies and similar incoming resources
5
Grants from Arts Council England
6
Other trading activities
Commercial trading income
7
Investments
8
Total income and endowments
Expenditure on:
Raising Funds
Generating voluntary income
10
Commercial activities
11
Charitable activities
Productions, sales and operations
12
Restructuring
Total expenditure
16
Net (expenditure) / income
Net (loss) / gain on investments
19
Net (expenditure) / income
Transfers between funds
17
Other recognised gains
Gain on revaluation of heritage assets
19,23
Actuarial gain on the defined benefit pension scheme
31
Net movement in funds
Fund balances brought forward at 29 August 2021
Fund balances carried forward at 28 August 2022 as
previsouly stated
Restatement
Fund balances carried forward at 28 August 2022
restated
27		 Total
Unrestricted
Funds
£'000
51,007
-
19,378
24,471
14,841
655

Restricted
Funds
£'000
-
18
15,917
741
-
88
Endowment
Funds
£'000
-
-
1,797
-
-
-		 52 week
period
ended
28-Aug-22
Total Funds
£'000
51,007
18
37,092
25,212
14,841
743
52 week
period ended
29-Aug-21
Total Funds
£'000
6,619
10,636
36,746
25,212
4,324
754
110,352 16,764 1,797 128,913 84,291
(4,358)
(10,706)
(96,220)
-		 (16)
-
(17,104)
-		 (258)
-
(4,479)
-		 (4,632)
(10,706)
(117,803)
-		 (3,409)
(2,238)
(75,314)
(691)
(111,284) (17,120) (4,737) (133,141) (81,854)
(932)
-		 (356)
(8)		 (2,940)
(640)		 (4,228)
(648)		 2,437
4,462
(932)
1,047
-
15,196		 (364)
(751)
-
-		 (3,580)
(296)
-
-		 (4,876)
-
-
15,196		 6,899
-
156
5,316
15,311
183,407		 (1,115)
12,337		 (3,876)
48,681		 10,320
244,425		 12,371
232,054
198,718 11,222 44,805 254,745 244,425
-
198,718		 (1,582)
9,640		 1,582
46,387		 -
254,745		 -
244,425

35. Taxation

UK corporation tax charge and relief of £950,378 has arisen in Royal Opera House Enterprises Limited in the period in respect of current year profits (52 week period ended 28 August 2022: tax charge and relief of £539,538). No deferred tax has arisen in the period (52 week period ended 28 August 2022: nil).

101

Royal Opera House Covent Garden Foundation (Limited by guaianteel.. Cornpany Nurnber 00480523. Trustees. report and consolidated financial statetnents. 52 week period ended 27 August 2023. THANK YOU 102

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

The Royal Opera House gratefully acknowledges the generosity of all those who have provided support this period, including:

INDIVIDUALS

Spindrift Al Swaidi The Amar-Franses & Foster-Jenkins Trust Ian and Helen Andrews The Anson Charitable Trust Lady Ashcroft Mr and Mrs Edward Atkin CBE Richard Baker Mikhail Bakhtiarov Mercedes T. Bass Mr and Mrs Baha Bassatne BB Energy Holdings NV Geoff and Judith Batchelar Helen Beaumont Dr Bruce Bennett Georgie Black Celia Blakey Mr. Antonio Bonchristiano Ingemo and Karl Otto Bonnier Tim Ashley and John Booth Sally and Simon Borrows Mrs Jean Brackenbury Alexandra Perricone Tim Bunting Mr Paul Burbidge John and Susan Burns OBE Sue Butcher Mrs Carolyn Calcutt Max & Nicole Cartellieri Rosemary and Simon Cock Ricki Gail and Robert Conway Kirsty Cooper Anne-Marie Craven Mr John Davidson and Mr John Cundill in memory of Mr Gareth Hadley Peggy Czyzak Dannenbaum Sir Mick and Lady Barbara Davis Geoffrey and Caroline de Jager Sarah Dodd Mathias Döpfner Sir Lloyd and Lady Dorfman OBE Peter and Fiona Espenhahn Ailsa and Jonathan Feroze Graham S Fletcher Louise Fluker Aline Foriel-Destezet Sophie and Hamish Forsyth Louise Baring and Eric Franck Annie Frankel David Fransen Philipp Freise Francesca Fremantle

Gini and Richard Gabbertas Malcolm and Rosalind Gammie Andrea Gawn Beth Wade Glynn Sherry and Michael Guthrie Anthony Gutman Charles and Kaaren Hale Sarah and Nigel Hammond Guy and Julia Hands Judy Harris Josh and Layla Harris Richard Hayden Roger and Alison Heath Jane Hemstritch Katrin and Christoph Henkel Marlies Hensel Malcolm Herring Marina Hobson OBE and The Hobson Charity Simon and Tracey Holden Charles Holloway Paul and Julia Horsnell Martin and Jane Houston Alan and Caroline Howard Clare Jakeman Lady Joan Jarvis CBE Christine Jay Aud Jebsen Mr and Mrs Christopher W.T. Johnston Mrs Philip Kan Ralph and Yolande Kanza David and Clare Kershaw Dame Zarine Kharas, DBE Doug and Ceri King The Kirsh Foundation Mr and Mrs Aboudi Kosta Lord and Lady Laidlaw Rena and Sandro Lavery Alan G. Levin Ida Levine Dr Gwen Lewis and Dr Jonathan Holliday Yuanbo Liu Anne MacKenna Beth Madison Bob and Tamar Manoukian The Margulies Family David F Marshall Crevan O'Grady & Jane McClenahan Kiki McDonough John McGinn and Cary Davis Alan McLean Isabelle Mee Elizabeth Mellows Bertrand and Elisabeth Meunier

103

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Amanda and David Milne KC Anne Mowatt Dr Patrick Mueller Chris and Kathleen O’Kane Mrs Susan A. Olde OBE Mr Stefan Sten Olsson and Mr John Tierney Ulf Pagenkopf Sir Antonio and Lady Pappano Marian and Gordon Pell Alexandra Perricone Hélène and Jean Peters Nicholas and Suzanne Peters The Phillips Fund Cressida Pollock and Daniel Luhde-Thompson Professor Paul Cartledge and Judith Portrait OBE Basil and Maria Postan Mr and Mrs Pozzi Melinda and Donald Quintin Julia and Hans Rausing Paul Ridout Yvonne and Bjarne Rieber Sir John Ritblat and Lady Ritblat OBE Sir Simon and Lady Robertson Sir Simon and Lady Robey Mrs Bonnie Robinson Kristina Rogge Georgia Rosengarten Kim Samuel The Sargent Charitable Trust Benoît and Catherine Savoret Louise Sheaves Peter Simon Susan and John Singer The Lady Slynn of Hadley Christopher and Sarah Smith Mary Stassinopoulos Rachael Stearns Stuart and Jill Steele Henriette & Manuel Stotz Malcolm Strong John Studzinski CBE Sharon and Van Stults John Sunderland and George Shishkovsky Mrs Trevor Swete Jennifer Taylor MBE Dame Tina Taylor and The Taylor Family Foundation Priscilla Tillman Lindsay and Sarah Tomlinson Eric Tomsett Professor Michael Trimble John G. Turner & Jerry G. Fischer Stephanie Tyrer Patrick Waller

Adrienne Waterfield Derek and Sheila Watson Anna and Paul White MBE Nick and Juliet Wilkinson Peter Harrison and Fiona Willis Ray Wilson OAM Amalaswintha Wolfsdorf Danny and Lillan Wyler Anonymous (14)

TRUSTS AND FOUNDATIONS

The Amar-Franses & Foster-Jenkins Trust Cockayne Essex Youth Trust Gorvi Foundation The Jean Sainsbury Royal Opera House Fund The Joseph Ettedgui Charitable Foundation The Karin Brass Memorial Fund The Kiri Te Kanawa Foundation (UK) Oak Foundation Orinoco Foundation Supported by the Paul Hamlyn Education Fund GRoW @ Annenberg Foundation The BAND Trust The Brian Mitchell Charitable Settlement The Candide Trust The Clore Duffield Foundation The Daniel Howard Foundation The Deborah Loeb Brice Foundation The Derek Butler Trust The Foyle Foundation Frederick Ashton Foundation The Gatsby Charitable Foundation The Headley Trust The Helen Hamlyn Trust Huo Family Foundation The JP Jacobs Charitable Trust The John S Cohen Foundation The Linbury Trust The London Community Foundation The Polonsky Foundation The Porter Foundation UK The Radcliffe Trust Thompson Family Charitable Trust The Wolfson Foundation The Woodward Charitable Trust TIOC Foundation The John Browne Charitable Trust The Goldhammer Foundation Yleana Arce Foundation The Mohn Westlake Foundation The Mark Nickerson Charitable Settlement The Gerald and Gail Ronson Family Foundation The Constance Travis Charitable Trust

104

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

Alex Beard CBE

CORPORATE

Air & Grace AllSaints American Express Services Europe Ltd Boodles Burberry Cothinkers Coutts & Co Cultureshock De Beers Jewellers Jones Lang LaSalle Kenneth and Susan Green La Prairie Veuve Clicquot New Day Ltd Northern Bloc Ice Cream NRBY Clothing Prada Retail UK Ltd Quintessentially Rolex Van Cleef & Arpels

SEASON PATRONS

Mrs Alfiya Askar Abulkhair Miss Lily Elia Lady Gavron Mrs Susan A. Olde OBE Rolex Rothschild and Co Sir Brian Williamson CBE and Mrs Caroline Hoare Anonymous (4)

FIRST NIGHT PATRONS

DMGT plc Dr Genevieve and Mr Peter Davies Sir Mick and Lady Barbara Davis The Dow Clewer Foundation Barrie and Jill Haigh Charles Holloway Anonymous (2)

AMERICAN FRIENDS OF COVENT GARDEN BOARD

Chairman Mercedes T. Bass (to June 2023) John P. McGinn (from June 2023)

Chief Executive Royal Opera House

Chairman Royal Opera House Sir Lloyd Dorfman CVO CBE

Treasurer G. Scott Clemons

Susan S. Braddock Peggy Czyzak Dannenbaum Misook Doolittle Lord Eatwell HRH Princess Firyal of Jordan Beth W. Glynn Joan Granlund Frederick Iseman Christopher Jones Bruce Kovner Alan G. Levin Beth Madison Mrs Susan A. Olde OBE John G. Turner

Legal Counsel David A Shevlin

Secretary and Executive Director Milena Sales

BOARD OF HONORARY DIRECTORS

Chair Sir Lloyd Dorfman CVO CBE

The Countess of Chichester, Honorary Vice Chair Dame Gail Ronson, Honorary Vice Chair Danny Wyler, Honorary Vice Chair (appointed 7 July 2023)

Lady Ashcroft Tim Ashley and John Booth Mikhail Bakhtiarov The BAND Trust Mercedes T. Bass Boodles - Michael Wainwright The Deborah Loeb Brice Foundation Tim and Sarah Bunting John and Susan Burns OBE Ricki Gail Conway Sir Mick and Lady Barbara Davis Baron and Baroness de Gunzburg Sir Lloyd and Lady Dorfman OBE Aline Foriel-Destezet

105

Royal Opera House Covent Garden Foundation (Limited by guarantee): Company Number 00480523. Trustees’ report and consolidated financial statements. 52 week period ended 27 August 2023.

David Fransen Alex and Elena Gerko Kenneth and Susan Green Sandra and Anthony Gutman Charles and Kaaren Hale Lady Hamlyn Jane Hamlyn Lady Heywood Dr Catherine Høgel Charles Holloway Alan and Caroline Howard Huo Family Foundation Aud Jebsen Doug and Ceri King Frances Kirsh Mrs Alfiya Askar Abulkhair and Timur Kuanyshev Rena and Sandro Lavery Lady Sainsbury of Preston Candover Dame Tina Taylor Lindsay and Sarah Tomlinson Van Cleef & Arpels – Geoffroy Medinger Danny and Lillan Wyler Anonymous (4)

Bob and Tamar Manoukian Dr Patrick Mueller Bertrand and Elisabeth Meunier Dame Marit Mohn Mrs Susan A. Olde OBE Stefan Sten Olsson Jette and Alan Parker Natalie Parker Melinda and Donald Quintin Julia and Hans Rausing Yvonne and Bjarne Rieber Sir Simon and Lady Robertson Sir Simon Robey Victoria Robey OBE Rolex – Arnaud Boetsch The Gerald and Gail Ronson Family Foundation Veuve Clicquot – Alexei Rosin

106