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2024-03-31-accounts

The Royal Shakespeare Company Stratford-upon-Avon

Registered charity number 212481

Report and Annual financial statements

Year ended 31 March 2024

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Contents

Contents
Page
Trustees' report 3-39
Reference and administrative details 34
Constitution, governance and management 35-36
Governors, Board and Sub Committee membership 37
Statement of the Board’s responsibilities in respect of the Trustees’ report and the financial statements 40
Independent Auditor's Report to the Trustees of The Royal Shakespeare Company 41-44
Consolidated statement of financial activities 45
Comparative consolidated statement of financial activities 46
Corporation statement of financial activities 47
Comparative corporation statement of financial activities 48
Balance sheets 49
Consolidated statement of cash flows 50
Reconciliation of net income / (expenditure) to net cash flow from operating activities 50
Notes 51-92

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

TRUSTEES’ REPORT

The Trustees are pleased to present their annual report together with the consolidated financial statements of The Royal Shakespeare Company (“RSC”, “the Company” or “the Corporation”) and its subsidiaries for the year ending 31 March 2024.

The financial statements comply with the Charities Act 2011, the Royal Charter and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

INTRODUCTION

The Royal Shakespeare Company (RSC) is one of the world’s best-known theatre companies.

We are a theatre and learning charity that strives to create world-class theatre, made in Stratfordupon-Avon and shared around the world, performing plays by Shakespeare and his contemporaries, as well as commissioning and performing an exceptionally wide range of original work from contemporary writers. We also place the craft of theatre making in new digital contexts, to create new theatrical experiences and reach audiences in new ways.

Our purpose is to:

The RSC is a vital national organisation, globally significant, embedded in the West Midlands with long and effective partnerships serving schools and communities across the country. It is one of the largest funded Arts Council England (ACE) National Portfolio Organisations (NPOs), generating economic, social and educational impact throughout the country, in our community in Stratfordupon-Avon, across the West Midlands, and throughout our vast national and international network of artists, audiences and partners.

Our Stratford campus is the home of the RSC with four performance spaces:

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Stratford is also home to our restaurants, retail offer, public events programme, Museum and Archives, Clore Learning Centre, Costume Workshop, Costume Hire operation, Technical Workshops, gardens and an extensive residential property portfolio leased to artists during their time with us. As a key employer and stakeholder in the town, our relationship with Stratford and the wider Midlands is unique as the only major national theatre company based outside London.

In London, we have year-round performances of Matilda The Musical at the Cambridge Theatre (celebrating its 12[th] year in 2023). 2023 also saw us return to the Barbican with the award-winning, record-breaking adaptation of My Neighbour Totoro in partnership with Studio Ghibli, Nippon TV and Improbable. We regularly transfer work to the West End, either under our own management or in collaboration with a producer or theatre owner, including Hamnet at the Garrick Theatre and The Empress at the Lyric Hammersmith.

We are committed to building new international collaborations, working with international artists, hosting companies from other nations and, in time, co-creating work with theatres worldwide. Ensuring we maintain global presence is also key to our international brand profile, fundraising and income strategies. We have a long history of global touring, and have previously worked in New York, Washington and China, among others, with our Shakespeare productions and work by contemporary writers. We have undertaken significant performance and skill sharing residencies at leading US Universities including Ohio State and Michigan. Matilda The Musical enjoyed a highly successful run on Broadway followed by an extensive US tour as well as tours in Australia, New Zealand and Asia. More productions of Matilda will continue to be staged over the coming years in various territories and we have international ambitions for My Neighbour Totoro .

Our transformative Learning and National Partnerships work reaches over half a million young people and adults each year, and through our Creative Placemaking and Public Programme, we create projects with and for communities who have not historically engaged with our work. We have one of the UK’s largest and most respected arts learning programmes, working with over 1,000 schools each year to broaden access to high-quality arts learning and transform experiences of Shakespeare in schools. Through our national Associate Schools programme, we work with schools and regional theatres to target areas of structural disadvantage, including 26 areas of multiple deprivation across the country, from Cornwall to Middlesbrough, which we intend to expand to more areas.

Our pioneering Time to Act social impact research shows that our approaches to teaching Shakespeare make a statistically significant improvement in the language development of children in schools. The research also demonstrates the development of reading and writing skills, raising of aspirations and improvement of student attitudes to school and learning in general. Our approaches also foster wellbeing, self-esteem, empathy, resilience and tolerance, and promote critical-thinking, creative, analytical, communication and problem-solving skills. The full findings of the research study can be found here: https://shorturl.at/KiKWh

The RSC is sector-leading in several other areas: we are the first (and currently only) performing arts organisation to have been awarded Independent Research Organisation (IRO) status; we are a leader in creative immersive technologies and digital development; and we have a proud history of innovation, diversity and excellence on stage and are determined to grasp the opportunity to become an even more inclusive, relevant and ambitious organisation. We also recognise the climate emergency and work hard to embed environmental sustainability into our operations, creative work and business practice. We commit to continually reduce our carbon footprint.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

KEY FACTS

OUR PUBLIC BENEFIT

The Trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing the Charity's aims and objectives and in planning future activities.

The Charitable Aims of the Royal Shakespeare Company are as follows: “to conserve, advance and disseminate the dramatic heritage of Shakespeare and advance and improve the dramatic art in the UK and throughout the world; producing and presenting dramatic performances of all kinds and teaching, training and other educational activities. These objectives are achieved by the production of plays by Shakespeare, other classic playwrights and commissioning new work.”

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

MESSAGE FROM THE CHAIR

It is my pleasure to be writing the Chair’s Statement for the Company for the year ending 31 March 2024.

It was a year of reimagination and vital transition to new artistic leadership. The Board of Trustees appointed Daniel Evans and Tamara Harvey as Co-Artistic Directors, signalling a pivotal and exciting moment in the RSC’s history. In February 2024, the Board appointed Andrew Leveson as Executive Director and he joined the company on 28[th] April 2024. He is an integral part of the leadership trio imagining, driving and staging the ambitious next chapter in the RSC’s history. Together, the Board has entrusted and will support them with the necessary transformation within the organisation; implementing a new strategy to ensure the RSC is one of the most innovative creative institutions and learning charities, welcoming world-class artistic talent, delighting and enriching the lives of existing and new audiences at home and abroad, and increasing radically the reach and impact of our pioneering learning, partnerships and digital work.

There have been, and will continue to be, challenges to face. Over this period, many of us were affected by significant cost-of-living increases, and as a charity we also felt the effects. Against this backdrop of economic instability, our continued recovery in 2023/24 was based on a programme of Shakespeare productions in Stratford-upon-Avon reinforced by an ongoing commitment to new ambitious work, in Stratford and in London, including Matilda The Musical and Hamnet in the West End and My Neighbour Totoro at the Barbican. Our future is predicated on new income generation and refreshed entrepreneurialism; a need for investment in buildings, infrastructure and systems; and a review of our use of resources so we can have maximum flexibility for delivering our ambitions for 2024 and beyond.

The RSC has a loan of £20million from the DCMS Culture Recovery Fund, which continues to provide a critical helping hand to enable the company to plan for the future, albeit with a different financial model. The pandemic necessitated the RSC dig deep into financial reserves and this loan provided financial stability at a very difficult time, but with a long-lasting impact in terms of repayment.

Going forward, our collective resilient spirit, strong leadership team and the skills and commitment of our people will drive our ambition to grow creative collaborations, diverse audiences, and an exciting new artistic vision and season of work from our Co-Artistic Directors. We are deepening our commitment to expanding our Associate Schools Programme that is statistically proven to improve the learning outcomes of young people in areas of structural disadvantage, to improving environmental sustainability, inclusion and representation on our stages and in our workforce, pioneering digital innovation and experimentation and transforming lives through active engagement with Shakespeare’s plays.

We are developing a new Business Plan, underpinned by sharpened priorities and a resilient, adaptable base from which to make bold choices. We will focus on our commercial income strategy to further build financial resilience. We will require new and increased sources of income and sustainable long-term growth to achieve our ambitions. We will continue to build a fundraising culture and articulate a clear vision for the Company, ensuring the case for both public and private funding is communicated effectively.

I would like to express our gratitude to King Charles III, who was our President when he was Prince of Wales, in agreeing to be our Patron. We are very fortunate in his palpable love of Shakespeare and his joy and faith in the power of the performing arts.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

It is a huge privilege for me to chair the RSC Board with the vital support of so many. I would like to thank first and foremost our people - employees, freelancers and partners - who bring talent and dedication in everything we do. I would also like to express heartfelt appreciation to our supporters and donors for their remarkable generosity and belief in us.

I would like to acknowledge the ongoing Government recognition and support, particularly from Arts Council England, the Department for Culture, Media and Sport, the Department for Education, and the Treasury for retaining the higher rate of Theatre Tax Relief. The impact has been significant; we warmly welcomed the announcement in March 2024 of a new rate for Theatre Tax Relief of 40% for non-touring productions, and 45% for touring productions to commence from 1 April 2025. These new permanent rates will be transformative for the RSC and the wider sector, unlocking more and bigger productions and creating more value to the economy and jobs in our world-class theatre sector.

We are delighted that we have been able to retain our Arts Council England National Portfolio status for the next three years. Their ongoing recognition and investment in our work and commitment to core funding is the foundation from which we intend to continue to grow our impact and income and deliver our ambitious future plans.

I would like to thank my fellow trustees, both current and previous, for working collaboratively to shape our direction and for giving their time and skills so freely. We said goodbye and expressed our sincere appreciation to Ian Squires for his service, insights and wisdom over 9 years as a trustee. We are also sorry that because of a relocation overseas, Lucy Williams will be retiring from the Board at the end of this calendar year, but delighted she will remain as Governor. We are very grateful to her for her contribution over the 5 years as a trustee, member of the RAFCo and as the Board Safeguarding Champion. We were delighted to welcome to the Board, Sir Nicholas Hytner in September 2023 and Geoff Barton’s attendance from April 2024. The Board is recommending the nominations of Andrew Leveson and Geoff Barton as Governors and Trustees to the Governors for election at the 2024 AGM.

During the financial year, we reiterated our deep thanks to outgoing Executive Director, Catherine Mallyon, Artistic Director Emeritus, Gregory Doran, and the former Acting Artistic Director, Erica Whyman for their generous and inclusive leadership and contribution to the Company over the last decade and more. We would not be in the strong position we are in today without them.

We are very fortunate to be so well led by exceptional Co-Artistic Directors, Daniel Evans and Tamara Harvey and, over the period from January to April 2024, the Interim Co-Executive Directors, Vicky Cheetham and Sandeep Mahal, and their talented teams. They have been vital in ensuring a smooth transition and handover to Andrew Leveson.

I am honoured to be part of this exciting new chapter of the RSC.

Shriti Vadera

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

MESSAGE FROM THE CO-ARTISTIC DIRECTORS

In the year which marked the 400th anniversary of the publication of Shakespeare’s First Folio, we joined the RSC as Co-Artistic Directors in June 2023. We have spent that time listening, absorbing, planning and beginning to introduce new thoughts and ideas around the way the Company works and how it engages with the wider world.

It has been a moment to renew and refresh our artistic programme and creative practice, to find new ways of working, to nurture our existing communities and reach new audiences. It has also been a moment to find more diverse opportunities for income generation, for partnership and for innovation.

We have met hundreds, possibly thousands, of stakeholders, including audiences, artists, staff, donors public and private, young people, alumni, academics, politicians, members of the Royal family, colleagues from across the theatre industry and leading figures in other industries, including the wider world of entertainment and of business.

We engaged in a wide consultation process and refreshed our vision, mission and values. Our current statements are that: the RSC is a global multi-platform theatre company bringing stories to life. We bring people together to experience stories that deepen our understanding of ourselves, each other and the world around us, and bring joy. Shakespeare’s ability to explore all of human nature is our inspiration and touchstone.

Reflecting back on the 2023/24 season, the RSC presented a series of new artistic productions, commissioned by former Acting Artistic Director, Erica Whyman, which addressed the question of power: who holds it, how does it transform human behaviour, and how might the world change when power shifts? And Greg Doran’s beautiful final show, the critically acclaimed Cymbeline, illuminated Shakespeare’s fascination with power in its story of nationhood and reconciliation.

Julius Caesar began its run in the RST, striking a particular chord with younger audiences, before embarking on a national tour to seven partner theatres throughout England. As You Like It explored a new perspective on the play with a cast made up largely of older, experienced actors reinventing their roles for a different generation. An adaptation of Hamnet , directed by Erica Whyman, found its natural home in Stratford-upon-Avon. It played to packed houses in the Swan before transferring to the Garrick Theatre, London where it played for 20 weeks. More schools than ever before saw Macbeth in the RST: 114 schools in total, of which 90% were comprehensive schools. Following their respective runs in the Swan, we saw transfers to London of Cowbois (Royal Court Theatre) and The Empress (Lyric Hammersmith).

In preparation for presenting Cowbois in the Swan Theatre, we developed our gender-inclusive cultures and practices, by renaming the Costume Workshop rooms to align with new policies and facilitating training with local businesses alongside a charity called Gendered Intelligence.

We continued to improve access to our work by launching a pilot scheme with Stagecoach and Warwickshire County Council to provide a late-night bus service connecting Stratford-upon-Avon to Leamington Spa, Warwick and Coventry for audiences and evening shift workers. The X18 latenight service started in autumn 2023 and will continue on a permanent basis due to levels of demand.

Gregory Doran curated an event at Windsor Castle hosted by the King and Queen to celebrate the 400th anniversary of the publication of Shakespeare's First Folio. The Folio was the first collected edition of Shakespeare’s plays. The radical act by two actors in the 17[th] century, John Heminges and Henry Condell, was a gift to the world. We staged a host of stars from British Theatre and watched actors and musicians from the RSC perform extracts from the 36 plays included in the First Folio. We continued to celebrate the First Folio at corresponding events at the home of the US Ambassador to the UK in Regent’s Park (London) and the UK Embassy in Washington DC.

The Box of Delights and The Fair Maid of the West played over Christmas with healthy audiences. Half an hour before curtain-up, members of the Fair Maid cast joined three talented musicians in the Swan bar to play, sing and raise a tankard as a wonderful warm-up to the show. A Midsummer

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Night’s Dream played to packed houses in the RST, while Ben and Imo marked Erica Whyman’s final production as Acting Artistic Director. We announced that A Midsummer Night’s Dream will transfer to the Barbican this autumn.

Outside of our theatres, our work continued with partners based in New York on a new video game based on a Shakespearean tragedy. We held a fortnight’s intensive course for young to mid-career directors, led by Robert Icke in Stratford-upon-Avon, focused on approaching Shakespeare.

In London, My Neighbour Totoro broke its own box office record at the Barbican, playing to capacity throughout its 17-week run. In June 2024, the company of My Neighbour Totoro was invited to participate in the Japanese State visit and performed a scene for Their Majesties The Emperor and Empress of Japan.

We marked a second successful partnership year with social media giant TikTok who support our young person’s ticket scheme. Over 5,300 tickets were taken up by schools and 2,700 by 14-25 year-olds. Matilda The Musical had its highest grossing week ever over Christmas at the Cambridge Theatre in the West End. The cast of Matilda The Musical even cheered on the Lionesses as part of a promo for their World Cup campaign.

Planning work for our opening season moved up a gear throughout the autumn, culminating in the launch events in January 2024, where we announced a whole year’s programme: 17 shows including seven Shakespeares, four new plays, a Restoration comedy, a play by a Shakespeare contemporary, two visiting shows, a family show and a Next Generation show by young people. We have nine directors and countless actors making their RSC début, at different stages in their careers. We have already announced The Buddha of Suburbia, our first show to be performed in the Swan, will transfer to the Barbican this autumn.

In building this first season, which opened in April 2024, our north star is the artists: seeking out the most exciting directors, actors and writers of our times and asking them which stories they feel a passionate need to tell. Alongside this focus on artists has been the constant question of “why this show, why now?” – always ensuring that we know who we are speaking to and how a particular story, however new or old, might be in conversation with the nation and with the globe.

We want to fling our doors wide open so that our RSC is welcoming as many people as possible and giving our audiences a space where they can see themselves reflected and understand more about our shared humanity. In all of this, we have been in conversation with our colleagues in Learning and National Partnerships and in Digital Development, making sure that the work we do on our stages is intricately linked with our work in classrooms, communities and in the virtual sphere. Across the organisation, we are asking our teams to review and challenge working practices so that we can be more agile, responsive and engaged, ensuring that our artists and our audiences have the best possible experience with us, knowing that as we begin this new chapter, they will be our greatest advocates.

We will refresh the RSC brand for this post-pandemic future and increase income through multiple new revenue streams. Everyone at the RSC contributes to everything that you see on and off our stages. Our staff and freelancers bring their commitment, creativity and talents to make the RSC a very special place to work.

While the current external landscape is uncertain, and while the value of the arts in society continues to be contested in some quarters, we remain optimistic and enthusiastic about the future. We are excited to continue to bring resonant stories to life, to develop the craft of storytelling ‒ whether on stage, online, or in the classroom ‒ and to inspire future generations of artists, audiences and theatre makers to connect with the RSC locally, regionally, nationally and internationally.

Daniel Evans & Tamara Harvey

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

MESSAGE FROM THE EXECUTIVE DIRECTOR

Since joining the RSC in April 2024, it has been hugely heartening to see the organisation looking forward with clarity, ambition and excitement.

The RSC is proudly a national organisation, committed to our home in the West Midlands, and to the partners, artists and communities with whom we make theatre, locally, regionally, nationally, and internationally. Our deep partnerships over the last 16 years with a nationwide network of 250 Associate Schools and 12 theatres, all in areas of multiple disadvantage, describe a fundamental, embedded commitment to co-creation, meaningful and mutual collaboration, and to sharing our resources strategically where they are most needed.

We have enjoyed a year of strong financial performance. Matilda The Musical saw an instant increase in popularity from the release of the film version. My Neighbour Totoro also added to the success of the London box office. The reopening of the Swan Theatre further contributed, as did unrealised investment gains.

In this financial year, we thanked Catherine Mallyon for the commitment, dedication and passion with which she led as Executive Director of the RSC for over a decade . We saw through a number of senior leadership transitions including the appointment of Interim Co-Executive Directors, a new Chief Financial Officer and a new Director of Development.

We supported Daniel and Tamara as they began to outline their vision for change. We took the first steps in a strategic review of the organisation, exploring what it means to be ambitious, inspiring and optimistic but also to look unflinchingly at the challenges and vulnerabilities in our organisation, not least the significant pressures from an aging capital and estates infrastructure. We committed to our extraordinary learning work, innovation, to research, and to becoming a national Shakespeare organisation where, alongside confident existing audiences, next generations (Z & Alpha) and underserved constituencies can find relevance, connection and belonging.

Consultation, listening and joint working has been a cornerstone of this work, and we continued to increase integration between that consultation and our creative programme. Our series of in-depth surveys and focus-group sessions engaged with audience members, staff, freelancers, industry partners and networks, with members of the Stratford community, with our learning and national partners and non-attenders. We explicitly questioned the kind of impact we are uniquely placed to make, and the values and behaviours we hold important in aiming for that.

We delivered in 2023/24 an exciting range of activities including our Stage Productions, Learning and National Partnerships, Talent Development and Youth Leadership, Virtual RSC, and our Creative Placemaking and Public Programme. We will build upon these strong beginnings in 2024/25 as we articulate a refreshed longer-term ambition and business plan for the organisation.

None of these achievements would have been possible without the extraordinary dedication, skill, and imagination of so many people. Our deepest thanks also go to all the artists and the staff, alongside our steadfast partners, donors and supporters, in government and in business, and individuals who have stood with us over the last year. And to our audiences, who returned – both in person and digitally – in such numbers and with such enthusiasm.

Andrew Leveson

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

ACHIEVEMENTS AND PERFORMANCE

The activities reported within this Trustees Report are in line with the Business Plan agreed for the 2023/24 period. The 2023/24 business planning included a strategic and consultative planning process for a new framework for the period from April 2023.

This framework was completed and aligned with a new funding agreement we have in place with Arts Council England for the 2023-26 period, reflecting the RSC’s inclusion within the National Portfolio.

During the financial year, these ambitions were delivered through an exciting range of activity groupings and a Making a Difference change programme.

The activity groupings were:

The areas for the Making a Difference change programme were:

The Making a Difference programme focused on delivery of our 2023/24 business plan by supporting people with creating culture change, offering training and leadership development, streamlining processes and systems, fostering effective teams, and through making our entire community feel included and supported.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

PRODUCTIONS PRESENTED IN 2023/24

In the year which marked the 400th anniversary of the publication of Shakespeare’s First Folio, the RSC presented a series of new artistic commissions which addressed the question of power: who holds it, who should, how does it change human beings, how might power shift and what could be transformed in our world as a result.

The season featured ambitious re-imaginings of Julius Caesar, Cymbeline, As You Like It and Macbeth which ran consecutively from April to October 2023 in a break from the Company’s usual repertory model. The season also included a new production of Hamlet, chosen and performed by Next Generation Act, the RSC’s company for talented young people from backgrounds that are under-represented in the arts.

We reopened the newly refurbished Swan Theatre, following its closure during the Covid-19 pandemic in 2020. The refurbishment included a new infrastructure for lighting, sound and video, repairs to the woodwork and brickwork, new wider seats with armrests in all positions replacing the previous bench seating, improved access including more designated wheelchair spaces and an enhanced hearing loop.

April

The Stage Debut Award-winner (2019) and UK Theatre Award-nominated director Atri Banerjee made his RSC debut with a visceral new production of Julius Caesar. Atri’s role was recruited through OpenHire ; a new initiative by Derek Bond and Josh Roche which aims to improve transparency and access to freelance creative jobs in theatre. The production visited nine venues across the country including RSC Partner Theatres, and marked the beginning of an ambitious three-year programme to expand the reach of our national touring footprint and place co-creation with the communities we serve at the heart of our theatre-making, supported using public funding by the National Lottery through Arts Council England. Julius Caesar toured to venues including The Marlowe Theatre Canterbury; Hall for Cornwall, Truro; The Alhambra, Bradford; Theatre Royal, Newcastle; The Grand Theatre, Blackpool; Theatre Royal, Nottingham; Theatre Royal, Norwich; Theatre Royal in York and The Lowry, Salford.

The production featured a Community Chorus made up of six people recruited from their local communities, with a particular focus on ‘Community Leaders’ such as teachers, support workers, campaigners, church leaders and volunteers in the community. The participants worked closely with professional RSC practitioners to develop their own leadership and other transferable skills and explored in greater depth the nature of what makes a good leader today.

Gregory Doran (RSC Artistic Director Emeritus) directed his 50[th] production for the Royal Shakespeare Company with a new staging of William Shakespeare’s dark fairytale Cymbeline . It was also his last production as RSC Artistic Director Emeritus and the last play in Shakespeare’s Folio.

Gregory Doran also released a memoir charting his personal and professional journey. My Shakespeare: A Director’s Journey Through the First Folio (Methuen Drama) presents a detailed account of Doran’s experiences either directing or producing each of Shakespeare's plays in the First Folio.

We opened the newly refurbished Swan Theatre with a world-premiere stage production of Maggie O’Farrell ’s Hamnet , adapted by Lolita Chakrabarti, and directed by then Acting Artistic Director, Erica Whyman. The story pulls back a curtain on the imagined life of William Shakespeare and the woman who would become the constant presence and purpose of his life: Agnes Hathaway, and his family who influenced his work. The production was adapted for the stage by award-winning playwright Lolita Chakrabarti, whose writing credits include Red Velvet, Invisible Cities, Hymn, The Goddess and the award-winning stage adaptation of Yann Martel’s novel Life of Pi (winner of

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

five Olivier awards including Best New Play, 2022). The production featured Design by Tom Piper, Lighting by Prema Mehta and Music by Oğuz Kaplangi.

May

Olivier Award-nominated director, writer and dramaturg Omar Elerian directed a playful and provocative take on Shakespeare’s summertime comedy, As You Like It. Challenging the stereotypes and pre-conceptions associated with growing older, a company of actors – many who ‒ were aged over 70 together with four younger actors performed one of Shakespeare’s most joyous tales.

June

Award-winning director and site-specific theatre-maker Wils Wilson directed a thrilling new interpretation of Shakespeare’s Macbeth, with a contemporary makeover of the Porter scene by comedian Stewart Lee . It played in the RST to over 55,000 people and more schools than ever ‒ 114 schools in total, of which 90% were comprehensive schools.

July

The Swan Theatre’s re-opening season continued with a new production of The Empress by Tanika Gupta , Artistic Associate of Lyric Hammersmith Theatre, directed by Pooja Ghai . The play was added to the GCSE English Literature syllabus following a campaign spearheaded by the – RSC's Youth Advisory Board one of four new plays by writers of colour that have been added to the syllabus to better reflect the diversity of playwriting in the UK. The production transferred to the Lyric Hammersmith Theatre for four weeks in October, before returning to conclude its run in Stratford-upon-Avon in November.

Paul Ainsworth directed the RSC’s Next Generation Act Company, a group of young people recruited from across the country, in their interpretation of Shakespeare’s Hamlet . In this abridged version, they explored the unstable state of Denmark through the eyes of the younger generation in the play and how the actions of those in power affect the inheritors of the nation. Performed in The Other Place , the company of twenty-five 13-18 year-olds represented young people from across our Associate Schools Programme, led in partnership with Lead Associate Schools and Associate Regional Theatres. The production was made with and by young people including a young Associate Director and behind-the-scenes creatives drawn from the RSCs Next Generation Backstage and Direct talent development programmes.

August

Alongside The Empress, and building on the tradition of premiering new work in the Swan Theatre, award-winning playwright Brad Birch’s new play Falkland Sound , about a community plunged into the middle of an international crisis, was directed by Aaron Parsons with Design by Aldo Vázquez. Inspired by the real-life testimonies of those who lived through this seismic moment in history, Brad’s research for the play included a 10-day visit to the Falkland Islands in 2018, during which time he travelled across the country, interviewing the islanders and immersing himself in their unique way of life.

September

Tracy-Ann Oberman returned to the RSC in a new production of Shakespeare’s classic The Merchant of Venice directed and adapted by Brigid Larmour . Presented by Watford Palace Theatre in association with HOME Manchester and developed with support from the RSC, this gripping new production offered a rare and vivid insight into a dark chapter in our history, all too relevant to Britain today.

October

Completing the season was Charlie Josephine’s Cowbois , co-directed by Charlie Josephine and Sean Holmes (Associate Artistic Director of Shakespeare’s Globe). This rollicking queer cowboy show followed hot on the hoofs of Charlie’s critically acclaimed I,Joan, which premiered at Shakespeare’s Globe in April 2022. Part gun-slinging Western, part love story for our times, this playful and exuberant celebration of queer love, freedom and self-expression told the

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

story of handsome bandit Jack Cannon, whose unprompted arrival in a sleepy frontier town inspired a gender revolution and started a fire under the petticoat of every one of the town’s repressed inhabitants.

Our festive offering in the RST was Piers Torday’s magical reimagining of John Masefield’s muchloved children’s classic, The Box of Delights and was watched by over 57,000 people. Newly appointed Chichester Festival Theatre Artistic Director Justin Audibert returned to the RSC to direct this fantastical tale.

November

In collaboration with Executive Producer Joe Hisaishi, Improbable and Nippon TV , Studio Ghibli’s My Neighbour Totoro returned to the Barbican Theatre for a limited 17-week run and broke a second box-office record for tickets sold in a single day. The global stage premiere of Hayao Miyazaki ’s celebrated 1988 animated feature film, adapted by Tom MortonSmith ( Oppenheimer ), was first announced in April 2022. The production received both critical and audience acclaim, winning five What’sOnStage Awards, and being nominated for nine 2023 Olivier Awards, the most nominations for any production that year. It went on to win the most awards of – any production a total of six awards. The winning categories were: Best Set Design: Tom Pye Best Costume Design: Kimie Nakano Best Director: Phelim McDermott Best Entertainment or Comedy Play Best Lighting Design: Jessica Hung Han Yun Best Sound Design: Tony Gayle

December

In the Swan Theatre, Olivier Award-winning playwright Isobel McArthur made her RSC debut directing and adapting Thomas Heywood’s Elizabethan comedy-romp The Fair Maid of the West . It was a celebratory, music-filled, ensemble comedy focusing on the life-saving powers of community, compromise and compassion.

January

Mathew Baynton made his RSC debut as one of Shakespeare’s most famous comic characters, Bottom, in a dazzling new production of A Midsummer Night’s Dream , directed by Eleanor Rhode . It was seen by over 65,000 people. We had terrific responses, including a 5* review in The Guardian .

February

Samuel Barnett and Victoria Yeates made their RSC debuts to play, respectively, Benjamin Britten and Imogen Holst in Ben and Imo , written by Mark Ravenhill and directed by Erica Whyman. Ben and Imo told the story of the creative relationship between composer Benjamin Britten and Imogen Holst, daughter of Gustav Holst and an accomplished musician in her own right.

Romeo and Juliet

Our series of First Encounters productions made Shakespeare's star crossed lovers relevant for a new generation of theatregoers. This 90-minute version of Romeo and Juliet , edited by Robin Belfield and directed by Philip J Morris , used original language to create the perfect introduction for young people aged 7-13 and their families. As well as two weeks of performances for school and family audiences in Stratford-upon-Avon, this production played 89 performances, toured to 20 schools and 7 theatres around the country reaching a total audience of 17,212 children, young people and adults.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

KEY HIGHLIGHTS FROM OUR LEARNING & NATIONAL PARTNERSHIPS, INCLUDING SHAKESPEARE NATION, 37 PLAYS, YOUTH LEADERSHIP & TALENT DEVELOPMENT

The primary goal of our Learning and National Partnerships activity was to redefine who enjoys, shapes, learns about and participates in Shakespeare’s work. The team’s work placed a special emphasis on working with schools because for most people, school is where their first encounters with Shakespeare happen. We have compelling evidence, built over a number of years, that shows how Shakespeare’s plays and RSC teaching approaches raise aspirations and attainment, develop resilience and confidence, promote wellbeing, inclusion and a sense of belonging in individual children, parents and whole school communities. During 23/24 the work of our Learning and National Partnership team sought to maximise that impact.

We focused on achieving that through five interconnected programmes:

  1. National Partnerships – through our Associate Schools Programme, we work in partnership with schools, communities and regional theatres to co-design year-round programmes of theatre-making, inspire creative change and enrich national research into the impact of Shakespeare’s work on children’s learning outcomes. The same two themes have consistently emerged about the difference that the combination of Shakespeare’s language and RSC teaching approaches make to children:

  2. a. Children’s literacy, particularly their speaking and their writing improves. They write ‒

  3. more, they use more complex sentences, they want to write particularly children who have previously been reluctant writers.

  4. b. Children’s academic self-concept improves. When a child feels confident about Shakespeare’s work, they feel differently about what they can achieve.

  5. Youth Leadership and Talent Development – supporting young people in areas of structural disadvantage to lead change in their schools and communities as they co-design and participate in theatre-based talent development and leadership pathways towards paid training and employment.

  6. Learning Programmes – creating opportunities to learn about and through Shakespeare’s plays, developed for and with children, young people and teachers. Offering workshops, conferences, teacher training and online materials that transform attitudes and approaches to Shakespeare’s work.

  7. Shakespeare Nation and touring – touring Shakespeare productions in Levelling Up for Culture Places. This year, we embarked on a large-scale tour of Julius Caesar which was co-created with Associate Theatre communities. Our First Encounters with Shakespeare small-scale tours are planned and made with and for young people and families.

  8. 37 Plays: an invitation to everyone to write stories for performance, developed, chosen and celebrated with our 12 regional theatre partners and shared through a nationwide festival to create a new folio of our times.

A summary of highlights for each programme follows:

National Partnerships

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Youth Leadership and Talent Development

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Learning Programme

Shakespeare Nation and touring

37 Plays

Celebrating the 400th anniversary of the First Folio, 37 Plays was a new nationwide search for the most exciting new voices in playwriting. We received 2,047 play submissions, 69% of which were first-time writers. We were astonished by the passion, ingenuity and truthfulness of the plays we received and would like to thank every single writer who submitted their play.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

DEVELOPMENT OF VIRTUAL RSC

Innovation and research are at the heart of the RSC and critical to our future cultural landscape. With every research and development project we did in 2023/24, we learnt huge amounts about what is possible, which in turn drove new and exciting possibilities that are ultimately changing how audiences experience live performance in the future.

During the reporting year, our digital work became an even more vital part of our programme, enabling audiences and communities across the UK and beyond to connect with Shakespeare and theatre.

The main focus of the reporting year was to embed a new team and new ways of working as one Digital Development department. The department is structured with four project leads:

Together they bring the expertise required to develop our innovative digital work in-house and build those skills across the Company, delivering more impact for the organisation longer term. Alongside this, the department has seen rises in its output and deliverables. We are archiving and tracking all our existing content so that it can be accessed and potentially commercialised in the future. We:

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

EMBEDDING THE RSC’S STATUS AS AN INDEPENDENT RESEARCH ORGANISATION (IRO)

We are the first (and currently only) performing arts organisation to have been awarded IRO status. Our goal this year was to embed our unique IRO status as a national centre for teaching, training, learning and research about Shakespeare, the performing arts, immersive technologies in performance and engagement, and the civic mission of arts organisations. Against that ambition, we can report the following highlights:

We deepened our relationship with AHRC, building the foundations for a new centre of research at the RSC which will focus on social impact and value; new forms of inclusive Shakespeare scholarship; and the future of cultural practice connected to the fellowship programme, which will lead us towards longer-term investment for our new Research Centre.

The RSC’s vision for research will be driven by a series of themes to be launched in July 2024. Our growing research programme and capabilities will develop our role as a global collaborator, innovator and convener, maximising our national and international responsibility and championing why and how the arts make a difference to individuals, to communities and to society.

CREATIVE PLACEMAKING AND PUBLIC PROGRAMMING

Our goal in Creative Placemaking has been to create deep relationships with hyper-local Stratford communities, to co-create with diverse audiences and transform neighbourhoods through democratising work.

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

BUILDINGS, INFRASTRUCTURE & SYSTEMS

For all our 2023/24 artistic, learning, digital, and partnership achievements, the state of our capital infrastructure is posing business-critical risks that impact not only our immediate finances but also, just as significantly, our ability to attract the best artists to create the world-leading work that we are uniquely placed to deliver.

These deficiencies additionally affect our ability to channel critical resources in the most efficient way, so that we can sustain the delivery of our educational and digital work, both of which are leaders in our sector by a significant margin.

Our aging capital infrastructure has now put our ability, and our responsibility, to stay a creative powerhouse under threat. Without urgent attention, our ability to make the best work for large, diverse audiences from around the globe, and to leverage our status as an industry leader, creating experiences that reach millions worldwide and inspire the next generation of artists and craftspeople, will become hard to achieve.

We are currently undertaking a detailed analysis of the state of our estate in order to create a tenyear capital management plan to understand the financial cost and optimum way of maintaining, updating and advancing our aging estate.

In the meantime, we continued key improvements to the usage of our spaces and visitor experiences. In 2023/24, these included:

We have also delivered a suite of improvements to our systems, enabling greater efficiencies and effective planning:

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Stratford-upon-Avon was hit by floods in January and February, necessitating the need to cancel four performances due to challenges of staff and audiences getting into Stratford. We installed flood barriers in all our residential properties along Waterside and closed the offices for two days. The theatres suffered some water ingress, but staff were quick to respond and there was no lasting damage.

We have been monitoring the situation regarding the Terrorism (Protection of Premises) Draft Bill, or Martyn’s Law as it is often referred to. The RSC will fall under the ‘enhanced tier’ of the legislation. We have been meeting regularly with our Counter Terrorist Advisors and security teams to put measures in place to comply with the law, once it is passed, and to make our audiences and colleagues safe.

We remain ever vigilant in our approach to cyber security. We commissioned two external cyber security audits; carried out external penetration testing of our networks and systems; ran monthly automated security scans of our networks; and continued daily monitoring of security dashboards. We have also started a series of upgrades of security patches on the theatres’ networks and this will continue over the coming year.

ENVIRONMENTAL RESPONSIBILITY

The RSC is committed to addressing and minimising the environmental impacts of our productions, operations and buildings whilst becoming an advocate for action.

Our production and creative teams continued to work towards the Theatre Green Book standards for all Stratford-based productions. There has been a strong focus on increasing the reuse of materials across shows. Within the production workshops, this has included the reuse of floors and committing to only purchasing three new floors within the year, introduction of new techniques to enable repainting, recladding and reconfiguring of set and scenery structures so that most shows now reuse at least one item from a previous show. To support further in-house reuse of set and scenery, we invested in the ‘Trail’ asset management software which enables us to share items already held in stores with designers.

In recognition that everyone has a part to play in our environmental journey, we continued to embed environmental responsibility within the culture of the RSC; engaging colleagues and those that we work with to enable them to make informed environmental decisions.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

One of the key barriers holding back productivity and visitor footfall in Stratford-upon-Avon is poor mobility. While this remains a very significant challenge, some initial steps were taken to improve transport mobility and influence how our audience travel to Stratford-upon-Avon, through a new Warwickshire Smart Travel Partnership. We trialled the use of You.Smart.Thing, a travel app which helps audiences find modes of transport and promotes the use of sustainable and active travel options. Alongside this, we supported the introduction of a late-night bus service by Stagecoach Midlands which enabled our audiences to watch a show and then get back to Warwick, Leamington Spa, Kenilworth and Coventry by bus. We will continue discussions with local and regional stakeholders to ensure Stratford-upon-Avon becomes more accessible both by private and public transport.

PEOPLE & CULTURE

As of March 2024, the RSC had over 900 employees and freelancers, which includes Matilda The Musical .

We report the following highlights:

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Over the course of the last year, we have shared a variety of Equity, Diversity, Justice & Inclusion (EDJI) development opportunities in line with our strategy goals. Colleagues have engaged in highly successful training delivered by Gendered Intelligence, Inclusive Writing workshops, Mental Health in the LGBTQ+ community, Deaf Awareness, Neurodiversity, Menopause Awareness, Antisemitism and the work of Shakespeare, and Inclusive Hiring for Managers.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

FUNDRAISING – PHILANTHROPY, OUR SUPPORTERS, EDUCATION AND CORPORATE PARTNERSHIPS

Fundraising activities continue to make a crucial contribution to our financial sustainability. Fundraising performance is monitored through the budgetary process and objectives are set to achieve a specific level of year-on-year changes and return on investment in unrestricted net departmental return. Budgets are set for all income and expenditure managed by the Development Department, which covers income beyond that shown against “Donations and Legacies” in the statutory format. However, from a statutory format perspective, the Development Department had achieved £5.4 from Donations and Legacies compared to £4.2m from the previous year, representing an increase of 29% from FY 2022/23.

The RSC upholds the highest standard of fundraising practice. We are registered with the Fundraising Regulator and adhere to their Code of Fundraising Practice for the UK, noting no failures to comply with this during the financial year. We abide by the key principles and behaviours of a fundraising organisation set out by the regulator: to be legal, open, honest and respectful. The fundraising team is trained to ensure they manage the protection of any vulnerable people they may meet.

The RSC received no complaints related to fundraising in the period from 1 April 2023 to 31 March 2024 which is consistent with the previous year, and all fundraising activities were conducted using internal resources.

We undertake to comply with relevant law and regulations, including the Proceeds of Crime Act, data protection, tax and Gift Aid legislation, and Charity Commission guidance. All RSC employees are required to abide by the RSC Anti-Fraud and Bribery policy.

We thank the RSC’s Development Advisory Council for their passion for the fundraising work and for the networks, skills and expertise they bring. They continue to actively support the RSC’s fundraising efforts and advise on progress.

The Board takes ultimate responsibility for accepting or refusing a donation or sponsorship, based on recommendations from the Senior Leadership Team (“SLT”) and our Donation and Sponsorship Acceptance Policy. It is their responsibility to act in the best interest of the Charity when accepting gifts. The members of the Development team are provided with training and are managed and evaluated in line with the RSC policies and guidelines.

Corporate Partnerships

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Education Partnerships

Trusts, Foundations and Grants

We remain incredibly grateful to Trusts, Foundations and Grantmakers for their ongoing support of the RSC’s work. In 2023/24 this included the following notable grants and funds (Note 18):

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Major Gifts

Campaigns under operating fund

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

FUTURE PLANS – OUR AREAS OF FOCUS FOR 2024/25

In June 2023, we welcomed our new Co-Artistic Directors, Daniel Evans and Tamara Harvey. In February 2024, we appointed our new Executive Director, Andrew Leveson. The draft Strategic Roadmap was approved by the Board in March 2024:

VISION

The RSC is a global multi-platform theatre company bringing stories to life. We bring people together to experience stories that deepen our understanding of ourselves, each other and the world around us, and bring joy. Shakespeare’s ability to explore all of human nature is our inspiration and touchstone.

MISSION

Our creative work is artist-led, resonant and daring, made with the most exciting and diverse artists from the UK and around the world – with diverse partners and audiences always at the centre.

We are at the heart of the relationship between communities and Shakespeare, unlocking its transformational power. We embrace our responsibility to serve society by nurturing the next generation. We are a leading voice and convening power in the conversation that defines the future of the arts around the world. We are leading the RSC as a model mid-21st century theatre, reimagining our working practices, growing our income and becoming a beacon for a new world, which is generous, embracing and humble.

The Strategic Road Map is structured over a five-year timeframe, but it is intended to be dynamic and adaptable, to be informed and further refined by a series of strategic reviews that are underway within the organisation including reviews of our operating model, estate arrangements, and internal structures.

To achieve this level of ambition, we recognise that some of the ways we do things must change. We will review working practices so that we can be more agile, responsive and engaged, ensuring that our artists and our audiences have the best possible experience with us, knowing that as we begin this new artistic chapter, they will be our greatest advocates.

Alongside thinking about our people, we will take time to consider the systems we use. We plan to invest in the digital and physical infrastructure needed to achieve our transformation. We’ll take an agile, product-focused approach to this work, while reimagining a compelling new visual identity and design principles to make sure our buildings, programming, and communications look and feel outstanding.

Our future brings many new opportunities to be socially enterprising, generate income and deliver impact for our audiences and communities. The power of our brand and our physical and digital transformation will be instrumental in supporting this endeavour. We will also explore new revenue streams ranging from brand partnerships and licensing to a revitalised membership scheme. Our income will grow with sponsors, donors and other supporters eager to be part of our future vision.

Throughout this period, we will maintain a laser-sharp focus on our bold vision for the future, and seek to ensure that the RSC continues to be inventive, collaborative, entrepreneurial and ambitious in all that we do.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

FINANCIAL REVIEW

The financial statements on pages 45 to 92 present both a Consolidated and Corporation view. The financial statements include the results of the RSC charity (the Corporation) and together with all the subsidiary companies forms the consolidated Group. The subsidiaries are listed in note 10(c) to the accounts, and further information is included in the Group Structure on page 38.

The Corporation financial statements are solely for the RSC charity.

The consolidation adjusts for transactions or balances held between the different companies within the Group and applies the appropriate accounting principles. This basis of preparation is further described in note 1 (b) on page 51.

Throughout the Financial Review below, the figures presented are on a Consolidated basis, unless specifically referenced to the Corporation.

Performance Overview

As we exited from the pandemic, the RSC continued to improve its financial health with a number of one-off upside events including box office performance from Matilda The Musical and My Neighbour Totoro and strong returns from our investment portfolio during the year. Operations unrestricted net income before transfers was £7.1m for the year-ending 31 March 2024, compared to £1.4m in the previous financial year. This resulted in the total consolidated reserves in all funds increasing to £130.5m

Whilst we have enjoyed a year of strong financial performance, our structural outlook remains challenging. We will commence the repayment of our Culture Recovery Fund loan, with the first payment of £0.8m in February 2025. The ongoing annual payment will be £1.5m. Through additional surpluses from our activities, we need to generate significant additional funds to meet the needs of our estate and technical infrastructure refurbishment and maintenance, to nurture new income streams for financial resilience and to meet our artistic and learning ambitions.

Funding sources

The RSC’s principal funding sources consist of income from RSC charitable productions and touring shows at £58.2m representing 63% of total income in 2023/24, compared to £38.9m and 57% in the previous financial year. Within this figure, Theatre Tax Relief contributed £7.9m and 8.6% of total income, compared to £4.9m and 7.2% in the previous year.

Grant Income, Donations and Legacies make up 23% of our total income in 2023/24 (29% in FY 2022/23).

Total income from trading activities was £7.1m representing 7.7% of total income (£6.3m and 9.3% in the previous year). This includes £4.7m (5.1%) from commercial activities such as restaurants, shops and licensing, compared to £3.4m (5.0%) in the previous year.

Income from licensing of rights amounted to £2.1m (2.3%), this was £1.3m (2.0%) in the previous year.

Box Office Income

As the first full financial year recovering from the pandemic, the RSC’s productions, tours and theatre operations in 2023/24 generated a total income of £58.2m (£38.9m the previous year). This includes RSC’s productions in Stratford and London and other touring and visiting shows.

Notably, Matilda The Musical contributed income well above initial target set, enjoying an instant increase in popularity from the release of a recent film of the same title. Moving into the 2024/25

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

year, we see this halo effect taper as we return to the normal pattern of sales, together reflecting general ticket trends and audience behaviours in the West End. My Neighbour Totoro also added to the success of the London box office contributing income above target before the end of its run at the Barbican in March 2024.

Further details of Box office activities are set out from pages 12 to 14.

Theatre Tax Credit

During FY 2023/24, the rates of TTR were set at 45% for non-touring shows and 50% for touring shows on qualifying expenditure. This generated £7.9m total tax credit (£4.9m in 2022/23). We welcome of the news of the current rates extension, as well as the permanent settlement of new rates from April 2025 onwards.

Grant Income

The RSC receives crucial annual revenue support funding from ACE as part of the National Portfolio Investment Programme. This is currently at £15.3m per annum until 2026/27 and represents 16.6% of our total income in 2023/24. This was at the same amount last year representing 22.4% of total income in the previous year. In 2023/24 we also secured a £1.3m grant from ACE to support the RSC touring activities over the next 3 years. The amount received in the year related to this grant was £0.5m.

As an IRO, the RSC is eligible to compete for research grant funding from the seven research councils in the United Kingdom. As a result, we have been able to successfully secure a £1.6m grant from the AHRC to establish a virtual production facility at RSC Stratford sites with outstanding R&D capabilities for future research.

Fundraising Income

Fundraising activities continue to make crucial contributions to our financial sustainability. As noted on page 24, income raised by the Development Department exceeds the narrow statutory heading of “Donations and Legacies”. In total the Development Department raised a total of £8.3m of unrestricted and restricted funds this year (£6.8m in the previous year) which consisted of 35% from individuals, 19% from trust and foundations, 17% of grant income, 12% from corporate partnership, sponsorship and donations, 9% from education partnerships, and 8% from legacies and other income. The overall performance has seen an increase of 22% from 2022/23.

Fundraising performance is monitored through the budgetary process and objectives are set to achieve a specific level of year-on-year changes and return on investment in unrestricted net departmental return. Budgets are set for all income and expenditure managed by the Development Department, which covers income beyond that shown against “Donations and legacies” in the statutory accounts.

Commercial Income

RSC trading operations for restaurant, shops, costumes and props hire, licencing and nursery are conducted under RSC Enterprise Ltd, the commercial trading arm of the charity. The total income generated by RSC Enterprise was £5.4m in 2023/24 (£5.1m in 2022/23).

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Expenditure (see note 7)

Production and Theatre Operations Cost

Our total production and theatre operations cost, both directly and indirectly related to shows, is £76.8m in 2023/24 (£58.1m in the previous year), representing 96% (95% in 2022/23) of our total expenditure on charitable activities for the year. The remaining cost in charitable activities relates to creative learning and engagement activities.

Support costs

Operational overhead expenditure supporting our activities includes finance, HR, IT and leadership and governance. Total support and overhead costs were £6.3m representing 7% of total expenditure, compared to £5.4m and 8% in the previous financial year.

Trading activities

Total expenditure on trading activities conducted via RSC Enterprise Ltd is £4.9m for the year (£4.3m in the previous year), which include restaurants, shop and other commercial operations.

Pensions

The most recent actuarial valuation of the defined benefit pension scheme took place as at 31 March 2023, and was updated as at 31 March 2024 for FRS102 purposes by a qualified independent actuary. This resulted in an actuarial deficit of £1.0m (actuarial deficit of £2.3m as at 31 March 2023). See note 22 in the accounts for further details.

Capital Expenditure

Total expenditure in the year amounted to £2.0m (£4.0m in 2022/23), of which £1.6m (£3.8m in 2022/23) was in respect of individual assets over £50k which has been capitalised in accordance with our accounting policies (see note 1(k) in the accounts for further details).

During the year, we commenced a review of our short, medium, and long-term capital needs, and whilst this review is yet to conclude the capital requirements are identified as significant. In addition, we have a need to consolidate our production teams into a single, modern new facility, to create the best possible environment for them to carry out their work. Clearly, we need to increase the rate at which we raise and allocate funds to spend on our estate and infrastructure with some urgency.

Balance Sheet

Net assets have increased to £130.5m as at 31 March 24 (March 23 - £123.8m). This increase is primarily due to the net income / (expenditure) for the year of £6.5m ((£1.2m) in 2022/23) including the unrealised investment gains of £1.1m in relation to the endowment funds.

Gross cash and unrestricted liquid investments were £40.5m as at 31 March 24 (£39.8m at 31 March 23), before taking into account the CRF loan of £20.6m which is repayable over 16 years from February 2025.

Trade debtor balances have increased significantly at 31 March 2024. This was due to amounts receivable from ticket agents at the year end, along with 2 large grants receivable. The majority of these were received within 30 days of the year end.

Short-term creditors have increased at 31 March 2024 compared with the previous year. This is mainly due to an element of long-term loans becoming repayable within one year, higher amounts of VAT payable and an increase in amounts due under co-production agreements.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Reserves Policy

The RSC has established a reserves policy to set aside appropriate funds as contingent reserves. The reserves policy is reviewed periodically considering financial forecasts, the need to finance commitments and the Board’s plans for the future of the RSC under the approved Financial Management Framework (FMF).

The Board has determined the appropriate overall level of contingent reserves. This was arrived at following an analysis of our organisational needs and commitments, including our learning from the Covid period. The Board also reviewed the reserves policies and levels of reserves held by other large national Arts organisations.

The reserves policy sets a current target of holding a level of unrestricted operational reserves equivalent to three months of average unrestricted expenditure, excluding reserves designated for depreciation on past capital expenditure, and so approximates “contingency reserves.” The target assessed as at 31 March 2024 is £16m compared to total unrestricted reserves of £55.3m. However £33.9m of these unrestricted reserves are designated fixed asset funds, with a further £12.0m designated to cover Strategic Investments (see below). Excluding designated amounts, the remaining free reserves as at March 2024 are £9.0m (net of the pension deficit of £1.0m referred to above).

The RSC Board has the discretion to designate or un-designate reserves when income is disrupted or decreased or costs are increased unexpectedly, or where a shortfall in capital funding is identified to allow the RSC to continue to operate without material detriment to our programme of work.

During the financial year ended 31 March 2025, the RSC will be reviewing the target reserves to determine what it believes is an appropriate level given that trading activities have started to normalise following reopening post Covid.

See note 19 for the allocation of the fund balances between the Balance Sheet headings.

The Board also considers the level of free liquid reserves which reflects the cash balances, unrestricted investments and net working capital balances, noting that the commitment to repay the CRF loan is spread over a 16-year period and that the RSC is targeting annual surpluses which cover the CRF repayments in each year.

Reserves

The Board revised the designation of various funds, which is reflected in these financial statements:

The net movement in unrestricted accounting reserves is set out in note 18. As at 31 March 2024, unrestricted and designated funds totalled £55.3m, compared to £32.7m at 31 March 2023.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Fixed Asset Fund

During the year, a Designated Capital Reserve has been created, which, together with the Restricted Capital Reserves, are equivalent to the level of the net book value of tangible fixed assets at the Balance Sheet date. This is consistent with the position adopted by many other Arts organisations. The majority of the Corporation’s functional assets are the theatres and related assets, and there are no plans for them to be realised.

Strategic Investment Fund

As described on page 31, during the year, the Board agreed to create a Strategic Investment Fund of £12m. A governance framework has been agreed by the Board for the administration, approval and reporting of bids against this fund.

Investment Policy

The investment policy balances the need for capital protection and the desire to secure investment returns. Investments are managed on our behalf by professional third parties and are monitored against benchmarks.

Objectives have been set for each fund that are tailored to the long-term objectives of the funds. The long-term objectives for returns range from CPI in any market condition, to CPI plus 4%.

Performance in the year ended 31 March 2024 was better than the objectives set for all funds. Cazenove Sustainable Multi-Asset Fund returned 9.6%, and the Sarasin Climate Active Endowments Fund returned 11%. This was marginally better than the external benchmark represented by the ARC Charity Steady Growth Index which reported 9.4% for the same period.

Most fixed asset investments are held for the long-term and we do not expect to realise any gains or losses in the short-term arising from the change in market value of these investments.

Remuneration Policy

We consider pay in relation to other similar organisations and use benchmark data when available to set remuneration, taking into account National Minimum Wage / Living Wage requirements.

Remuneration for the most senior roles requires Board approval and no senior manager is involved in deciding his or her own remuneration. Where possible, these are set at a level to attract and retain senior managers of the quality required to run the organisation.

Salaries are reviewed annually at the end of the financial year and any increases applied consistently to managers and staff. The budgeted level of any annual pay award is approved by the Board and is set in relation to market inflation and the organisation’s financial position.

In March 2023, a pay increase was announced, effective for the year ending 31 March 2024, with colleagues receiving a minimum of 6%. For financial year 2024/25, this has been set at a minimum of 3.75%.

Risk Management

The internal control systems are designed to meet the Company’s particular needs and the risks to which it is exposed, to manage those risks and to provide reasonable assurance against misstatement or loss. Established regular procedures, including budgetary controls, operate to monitor the receipt of income and both revenue and capital expenditure.

The Risk, Audit and Finance Committee (RAFCo) reviewed the effectiveness of material internal controls, including operational, financial and compliance controls and risk management systems. It was supported in this task by an independent internal auditor.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Following recommendation by the RAFCo, the Board has approved a new Risk Management Framework and reviewed and assessed the known risks to which the company may be exposed. The risk register identifies those risks and is regularly reviewed by the RSC SLT, RAFCo and the Board.

The risks considered to be highest likelihood and impact during the financial year to 31 March 2024 were:

Specific actions and responsibilities for mitigating these risks have been assigned to these, and all other, risks identified on the register, to ensure that any residual risk is at an acceptable level. Additional risks which impact the financial years beyond 31 March 2024, notably the risk of the cost-of-living crisis and changes in audience behaviour, have been considered in the Going Concern section ‒ see pages 38/39 below.

RAFCo aims to meet at least five times a year and at other times as required, and reports to the full Board.

The Investment Committee reviews quarterly investment performance and adherence to the investment policy and reports to the RAFCo.

Financial Management Framework

As set out on page 31 above, we have developed and are embedding our board approved FMF, which sets out the minimum level of surplus required each year in the medium term to fund our revenue, capex, loan commitments and maintain appropriate levels of reserves. See above for Reserves Policy.

Use of volunteers

The Corporation benefits from the valuable contributions of volunteers in the areas of audience counting, preparing exhibition material as part of the Swan Wing project and events organised by Friends of the RSC. In accordance with FRS 102 and the Charities SORP, the economic contribution of general volunteers is not recognised in the financial statements.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

REFERENCE AND ADMINISTRATIVE DETAILS

Principal Office Waterside Stratford-upon-Avon Warwickshire CV37 6BB Telephone +44 1789 296655 Fax +44 1789 294810 Email info@rsc.org.uk Website www.rsc.org.uk Registered Charity Number 212481

The Co-Artistic Directors, Executive Director and other senior staff to whom day to day management of the charity is delegated by the Governors were, for the period of this report and to the date of its approval:

Daniel Evans Co-Artistic Director (from June 2023) Tamara Harvey Co-Artistic Director (from June 2023) Andrew Leveson Executive Director (from April 2024) Erica Whyman OBE Acting Artistic Director (to June 2023). Catherine Mallyon CBE Executive Director (until December 2023) Vicky Cheetham Interim Co-Executive Director (from December 2023 to April 2024, having previously held the role of Interim Executive Advisor from March 2023) and then Executive Advisor from April 2024 to June 2024 Sandeep Mahal MBE Interim Co-Executive Director (from December 2023 to April 2024, having previously held the role of Leadership Associate from January 2022) and then Executive Advisor from April 2024

Gregory Doran held the role of Artistic Director Emeritus from April 2022 until December 2023.

Other members of the Senior Leadership Team (“SLT”) were, for the period of this report and to the date of its approval:

ther members of the Senior
s approval:		 Leadership Team (“SLT”) were, for the period of this report and to the d
Sarah Ellis Director of Digital Development
Chris Hill Director for Audiences and Marketing
Stephanie Hensen Dittmer Director of Development (from February 2024)
Lisa Hughes Chief Finance Officer (from January 2024)
Jacqui O’Hanlon MBE Director of Creative Learning and Engagement
Tomas Wright Technical Director
Stephen Eames Interim Chief Operating Officer (until September 2023)
Simon Parsonage Interim Chief Finance Officer (from September 2023 until March 2024)
Rebecca Preston Director of Development (until August 2023)
Justine Themen Leadership Associate (until December 2023)
Griselda Yorke Executive Producer (until June 2024)

Professional Advisers

rofessional Advisers
External Auditors BDO LLP Two Snowhill, Birmingham, B4 6GA
Bankers Barclays Bank plc Charities Team, Floor 28, 1 Churchill Place,
London, E14 5HP
Investment Management Cazenove Capital Management 1 London Wall Place, London, EC2Y 5AU
Sarasin & Partners Juxon House, 100 St Paul’s Churchyard,
London EC4M 8BU
Solicitors Foot Anstey LLP Salt Quay House, 4 North East Quay, Sutton
Harbour, Plymouth, PL4 0BN
Jonathan Hull Associates Amadeus House, 27b Floral Street, London,
WC2E 9DP
Mills & Reeve LLP Botanic House, 100 Hills Road, Cambridge,
CB2 1PH

34

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

CONSTITUTION, GOVERNANCE AND MANAGEMENT

The Royal Shakespeare Company is incorporated under Royal Charter originally dated 31 October 1925 (as last amended on 6 March 2007) as “The Royal Shakespeare Company, Stratford-uponAvon”, and is a registered charity.

Following His Majesty the King’s Accession and a review of Royal Patronages, the Palace announced in May 2024 that His Majesty King Charles III is our Patron.

Under its Charter, the Members of the RSC may comprise the Governors and a President, who may be elected by the Governors. The President was the then Prince of Wales and we will be considering the role of President in due course.

A meeting of the Governors is known as the Company’s Annual General Meeting (AGM) and is held in every calendar year, not more than 15 months following the previous AGM. Any other meetings of the Governors are known as Extraordinary Meetings. Governors act as ambassadors and advocates for the RSC and are drawn from a wide range of disciplines, bringing their experience and skills to the life of the RSC.

The Governors delegate the responsibility for running the RSC to members of the Board (the trustees) who are selected from the wider group of Governors. All Governors are kept up to date with key developments via updates from the management and the Chair of the Board.

The Nominations Committee, a sub-committee of the Board, consider potential new Governors and make recommendations of suitable appointments to the Board for approval. The Board then recommend these potential new Governors for election by the Governors. The Nominations Committee, on behalf of the Board, also regularly performs reviews to maintain a suitable range of skills and experience amongst Board members and Governors.

Newly appointed members of the Board receive an induction programme covering general responsibilities and detailed information about the structure, governance and management of the RSC and attend induction meetings with members of the SLT. Board members receive regular updates about our activities, with six formal Board meetings each year.

The Board supports and follows the principles of the Charity Governance Code. The Code is designed to support continuous improvement and we evaluate our performance against the Code’s principles, outcomes and recommended practices to ensure robust governance throughout the organisation.

There are four formally constituted Board Sub Committees comprising the Risk, Audit & Finance Committee (RAFCo), the Investment Committee (reporting into the RAFCo), the Nominations Committee and a newly formed Donations and Sponsorship Committee. The terms of reference and composition of each Sub Committee was reviewed in 2023 and 2024.

Some Board members attend some management committees (e.g. Equity, Diversity, Justice and Inclusion Committee). In doing so, they attend as observers and not in a fiduciary role or as representatives of the Board.

Details of the Governors and membership of the Board and its sub committees are shown on page 37. The artistic leadership and the day-to-day management of the RSC are the responsibility of the Co-Artistic Directors and the Executive Director. They support and hold to account a group of senior managers who make up the SLT (detailed on page 34).

As set out on page 33, following recommendation by the RAFCo, a new Risk Management Framework was approved by the Board in July 2023 which aims to provide clarity on governance, processes and assurance, and enabling an agile approach to the monitoring and reporting of risk that works in tandem with the annual Budget process.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Policies were reviewed and updated over the course of the year, with a particular focus on people and culture, to provide an accountable, safe and supportive environment for colleagues. Policies included an Anti-harassment and Bullying Policy and a Speaking Up Policy.

A number of internal audits were completed including a safeguarding review of chaperone arrangements and an audit on IT backup and recovery arrangements, to ensure that data held on digital systems is protected through a regular and robust backup regime. The audits were reported to the RAFCo and the Board.

Elections to, and retirements from, the Board and the Governors during the period of this report and to the date of its approval were:

Daniel Evans – Elected Governor and Board member on 28 September 2023

Tamara Harvey – Elected Governor and Board member on 28 September 2023

Sir Nicholas Hytner – Elected Governor and Board member on 28 September 2023

Catherine Mallyon CBE – Retired as Governor and Board member on 31 December 2023

Ian Squires – Retired as Board member on 31 December 2023

Patsy Rodenburg OBE – Retired as Governor on 31 December 2023

Dame Harriet Walter DBE – Retired as Governor on 31 December 2023

Mike Wright – Retired as Governor on 31 December 2023

Geoff Barton and Andrew Leveson are to be recommended to the Governors at the next AGM for election as Governors and members of the Board.

36

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

GOVERNORS, BOARD AND SUB COMMITTEE MEMBERSHIP DURING THE YEAR AND UP TO APPROVAL OF THIS REPORT

Patron

His Majesty King Charles III

Patron
His Majesty King Charles III
Name Governor Board Committee Membership
Shriti Vadera Chair Chair NCEO,ICEO,RAFCo*EO
Sir Mark Thompson DeputyChair NC
George Alagiah OBE Deceased*2 NC Deceased*2
Sir David Bell KBE
Anita Bhalla OBE NC - Appointed *1
Elizabeth Boissevain
Daniel Evans Appointed *3 Appointed *3
Tamara Harvey Appointed *3 Appointed *3
Sir Nicholas Hytner Appointed *3 Appointed *3
Bruce Kovner
Professor Ruru Li
Catherine Mallyon CBE Retired *4 Retired *4
Andrew Miller MBE NC*C
Sandie Okoro
Amanda Parker NC*8
Winsome Pinnock *9 NC
Clare Reddington NC
PatsyRodenburgOBE Retired *5
Sir AntonySeldon
Mark Smith RAFCoC,ICC
Ian Squires Retired *5 RAFCo - Retired *5
Sue Stapely
David Tennant
Justine Themen
Ayanna Thompson
Liz Vernon RAFCo – Appointed *5
Dame Harriet Walter DBE Retired *5
LucyWilliams *10 RAFCo
Mike Wright Retired *5 NC - Retired *5
Andrew Clayton RAFCo
Tilly Franklin IC-Appointed*6
Andy Halls RAFCo
John Hornby IC-Retired*7
David Loudon IC
Quintin Price IC-Appointed*6

Geoff Barton and Andrew Leveson are to be recommended to the Governors at the next AGM for election as Governors and members of the Board.

Dates retired or appointed: [1] 20 July 2023, [2 ] 24 July 2023, [3] 28 September 2023, [4 ] 22 December 2023,

[5] 31 December 2023, [6] 5 Feb 2024, [7 ] 30 April 2024, [8 ] 18 July 2024

RAFCo – Risk, Audit & Finance Committee; IC – Investment Committee; NC – Nominations Committee

[C] – Chair, [EO] – Ex Officio

Emeritus Chairman Sir Geoffrey Cass

Honorary Governors Neil Benson OBE David Burbidge CBE Michael Crystal KC Miranda Curtis CMG Tony Hales CBE

Honorary Emeritus Governors Lady Anderson Sir Stanley Wells

Charlotte Heber-Percy Charles Holloway OBE Ian Laing CBE Douglas McPherson Lord Willoughby de Broke

Artists’ Associate

Dame Susie Sainsbury DBE

Honorary Governors (ex officio)

Director, Shakespeare Institute Chief Executive, Shakespeare Birthplace Trust Chair, Stratford District Council Stratford Town Mayor

37

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

GROUP STRUCTURE

The RSC’s subsidiary companies and their financial performance are shown in note 10(c) to the accounts.

RSC Enterprise Limited is a wholly owned subsidiary of the RSC that operates the commercial activities of the Company, which include the merchandising of goods relating to the Royal Shakespeare Company, catering and the operation of the nursery. RSC Estates Limited is a wholly owned subsidiary of the RSC that holds a 50% share in a joint venture, Arden Hotel Waterside LLP. This joint venture operates the Arden Hotel in Stratford-upon-Avon.

RSC Pre-Productions Limited is a wholly owned subsidiary of the RSC and is responsible for producing, running and closing productions providing operational, technical, production and artistic services to the RSC. The RSC controls a company based in the USA called Matilda North America LLC. The remaining interest is held by Dodgers Properties LLC. Matilda North America LLC is the general partner of two limited partnerships based in the USA: Matilda on Broadway LP, the entity producing the Broadway production of Matilda and Matilda Acrobat Tour LP, the entity producing the North American Tour. Both these tours finished in the year ended 31 March 2018.

RSC Matilda US Limited, holds investments in Matilda on Broadway LP and Matilda Acrobat Tour LP. RSC Touring Limited is a wholly owned subsidiary responsible for producing, running and closing productions, which include Matilda the Musical in the United Kingdom and Ireland, and providing operational, technical, production and artistic services to the RSC.

Hathaway Productions Limited is a new wholly owned subsidiary of the RSC, established for the purposes of operating commercial transfers.

The Consolidated Financial information reflects the income and expenditure, cash flows and assets and liabilities for the RSC and all of its subsidiaries and its joint venture (together the “group”). Transactions between the RSC (the “Corporation”) and the other entities in the group are eliminated on consolidation. The Consolidated Statement of Financial Activities for the year ended 31 March 2024 is shown on page 45 with the Comparative Consolidated Statement of Financial Activities for the year ended 31 March 2023 on page 46.

The Corporation Financial Information reflects the income and expenditure and assets and liabilities for the RSC only. The RSC enters into contractual arrangements with its subsidiaries (most notably RSC Pre Productions Limited) under which the subsidiaries provide services to the RSC in producing and running theatrical productions. However, these subsidiaries use staff and other resources provided by the RSC and are charged by the RSC for these services. Accordingly, the income and expenditure of the RSC as a stand alone entity reflect the gross income and expenditure from both external and intra group transactions. Corporation Statement of Financial Activities for the year ended 31 March 2024 is shown on page 47 with the Comparative Corporation Statement of Financial Activities for the year ended 31 March 2023 shown on page 48.

GOING CONCERN

We continue to work in a financial and operational context which we know can quickly change, where there are significant financial risks, primarily the crystallised and ongoing risk of the cost-ofliving pressures and future estate capital development and maintenance needs.

Historically the organisation has been swift to implement changes when needed to manage the cost base and the CRF loan of £19.4m received in February 2021 allowed us to successfully restart indoor performances in the prior financial period and to plan a full resumption of activities from April 2023, with the reopening of the Swan Theatre. Applying a cautious approach to re-opening, has enabled us to continue managing cash flows tightly and ensure sufficient resources are available to weather future uncertainties, and to enable financially the delivery of some of our strategically important ambitions.

An assessment of liquidity

The RSC continues recovering post pandemic and has built a strong reserves and cash position for the year ending 31 March 2024. Unrestricted funds, including both Operations unrestricted and

38

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Unrestricted designated funds, totalled £55.3m ( 2023: £32.7m ). Cash at bank and in hand, together with unrestricted fixed asset investments which are readily available liquid investments, totalled £40.5m (£39.8m at March 2023).

As part of the Board’s consideration of Going Concern, detailed cash flow forecasts have been prepared which show that a strong opening cash position, along with cautious income assumptions and known commitments give sufficient headroom to mitigate potential risks.

The Trustees have considered the current financial position of the company, and its future cash flows on both a base case and a worst-case basis for a period of at least 12 months from the date of signing these accounts. In preparing the base case assessment, management and the Trustees have applied judgement, particularly in relation to the assumed box office income achievable from productions and the impact of inflation over the period.

There remains a risk of audience levels being impacted by cost-of-living pressures affecting consumer spending patterns and audience behaviours. In addition, inflationary pressure on our costs, notably people, continues to be managed carefully. The recent announcement of the Theatre Tax rates of relief was welcomed, which assists in mitigating the immediate inflationary pressures, but the higher rate will slightly reduce from April 2025 onwards.

Despite these risks, the modelling shows that the RSC continues to have appropriate levels of liquidity headroom to be able to continue as a going concern.

An assessment of performance

The financial review has set out the overall improvement in the net income / (expenditure), and the surplus in the current year before transfers. This has been underpinned by a number of our income streams, which have helped to offset inflation within our expenditure in the current year, notably on people and energy costs.

We have seen strong box office performances from our London productions, these include excellent performance from Matilda The Musical and My Neighbour Totoro .

Arts Council England funding

The level of grant income funding from ACE for the three years from 2023/24 to 2025/26 was confirmed at £15.3m per annum in November 2022 which maintains the level at that received in recent years. We are extremely grateful for this continued and essential support.

Our application set out our proven track record of delivery against ‘Let’s Create’ and our future plans demonstrate a re-imagined commitment to being a creative and learning organisation, which inspires change. Our planned activities over this period, which are supported by the ACE NPO grant income, include:

This is all alongside presenting large-scale Shakespeare productions, Shakespeare tours, a bold, and a diverse programme including new writing.

The Trustees’ Report was approved by the Board on 30 July 2024, authorised for issue and signed on its behalf by:

Shriti Vadera RSC Chair of the Board

39

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

STATEMENT OF THE BOARD’S RESPONSIBILITIES IN RESPECT OF THE TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group and charity for that period.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Financial statements are to be published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

40

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL SHAKESPEARE COMPANY

In our opinion, the financial statements:

We have audited the financial statements of The Royal Shakespeare Company (“the Parent Charity”) and its subsidiaries (“the Group”) for the year ended 31 March 2024 which comprise the consolidated statement of financial activities, the corporation statement of financial activities, the consolidated and corporation balance sheets, 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Group and the Parent Charity in accordance with the ethical requirements 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.

Conclusions related to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Parent Charity’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.

.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL SHAKESPEARE COMPANY cont 2

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements 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

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion;

Responsibilities of Trustees

As explained more fully in the Statement of the Board’s Responsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL SHAKESPEARE COMPANY cont 3

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.

Extent to which the audit was capable of detecting irregularities, including fraud

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

Non-compliance with laws and regulations

Based on:

we considered the significant laws and regulations to be UK GAAP, Charities SORP and tax legislation.

The Group/Charity is also subject to laws and regulations where the consequence of noncompliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be health and safety legislation, employment law and data protection.

Our procedures in respect of the above included:

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL SHAKESPEARE COMPANY cont 4

Based on our risk assessment, we considered the areas most susceptible to fraud to be posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates.

Our procedures in respect of the above included:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://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 Charity’s trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

BDO LLP, statutory auditor Birmingham, UK Date 31 July 2024

BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

44

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Consolidated statement of financial activities for the year ended 31 March 2024

for the year ended 31 March 2024
Operations/
Unrestricted		 Restricted
unrestricted
designated		 Restricted
Endowment		 Total funds Total funds
Note funds
funds		 funds
funds		 2024 2023
£’000 £’000 £’000 £’000 £’000 £’000
Income and endowments from:
Charitable activities
Performance related grants 2 15,260 - 513 - 15,773 15,260
Income from productions, tours and theatre
operations 3 58,167 - - - 58,167 38,871
Creative learning and engagement 1,238 500 - 1,738 927
Donations and legacies 4 3,729 - 1,713 - 5,442 4,152
Other trading activities 10(c)
7,089		 - - - 7,089 6,310
Investments 5 1,615 - 4 211 1,830 1,177
Licensing of rights 2,083 - - - 2,083 1,336
Total 89,181 - 2,730 211 92,122 68,033
Expenditure on:
Charitable activities
Productions, tours and theatre operations 3 (72,944)
(1,191)		 (2,646) - (76,781) (58,082)
Creative learning and engagement (2,715)
-		 (847) - (3,562) (3,271)
Raising donations and legacies (1,716)
-		 - - (1,716) (1,500)
Other trading activities (5,564)
-		 - - (5,564) (5,056)
Share of net loss in joint ventures 10(a)
(223)
-		 - - (223) (150)
Investment management costs (70)
-		 (2) - (72) (72)
,
Total 7 (83,232)
(1,191)		 (3,495) - (87,918) (68,131)
Net gains / (losses) on investment assets 10(b)
1,168		 - 63 1,069
 2,300 (1,069)
Net income / (expenditure) 7,117 (1,191) (702) 1,280 6,504 (1,167)
Transfers between funds 18 (21,914)
38,393		 (16,219) (260) - -
Net income / (expenditure) after transfers (14,797)
37,202		 (16,921) 1,020 6,504 (1,167)
Other recognised gains / (losses)
Actuarial gains / (losses) on defined benefit
pension scheme 22 183
 -
 -
 -
 183
 (2,105)
Net movement in funds (14,614)
37,202		 (16,921) 1,020 6,687 (3,272)
Reconciliation of funds
Total funds brought forward 18 23,565
 9,149
 77,749
 13,370
 123,833
 127,105
Total funds carried forward 18 8,951
 46,351
 60,828
 14,390
 130,520
 123,833

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 51 to 92 form part of these accounts.

Prior year comparatives are shown in detail on page 46.

45

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Comparative consolidated statement of financial activities for the year ended 31 March 2023


for the year ended 31 March 2023
Operations/
Unrestricted		 Restricted
unrestricted
designated		 Restricted
Endowment		 Total funds
Note funds
funds		 funds
funds		 2023
£’000 £’000 £’000 £’000 £’000
Income and endowments from:
Charitable activities
Performance related grants 2 15,260 - - - 15,260
Income from productions, tours and theatre
operations 3 38,871 - - - 38,871
Creative learning and engagement 927 - - - 927
Donations and legacies 4 3,438 - 714 - 4,152
Other trading activities 10(c)
5,903		 - 407 - 6,310
Investments 5 976 - 10 191 1,177
Licensing of rights 1,336 - - - 1,336
Total 66,711 - 1,131 191 68,033
Expenditure on:
Charitable activities
Productions, tours and theatre operations 3 (56,205)
(530)		 (1,347) - (58,082)
Creative learning and engagement (2,421)
-		 (850) - (3,271)
Raising funds
Raising donations and legacies (1,500)
-		 - - (1,500)
Other trading activities (4,649)
-		 (407) - (5,056)
Share of net loss in joint ventures 10(a)
(150)
-		 - - (150)
Investment management costs (48)
-		 (1) (23) (72)
Total 7 (64,973)
(530)		 (2,605) (23) (68,131)
Net losses on investment assets 10(b)
(354)
-		 (17) (698)
 (1,069)
Net income / (expenditure) 1,384 (530) (1,491) (530) (1,167)
Transfers between funds 18 (4,136)
4,136		 280 (280) -
Net (expenditure) / income after transfers (2,752)
3,606		 (1,211) (810) (1,167)
Other recognised losses
Actuarial losses on defined benefit pension
scheme 22 (2,105)
-
 -
 -
 (2,105)
Net movement in funds (4,857)
3,606		 (1,211) (810) (3,272)
Reconciliation of funds
Total funds brought forward 18 28,422
 5,543
 78,960
 14,180
 127,105
Total funds carried forward 18 23,565
 9,149
 77,749
 13,370
 123,833

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

A review of classification of group activities has been undertaken during the year. See note 1(b).

The notes on pages 51 to 92 form part of these accounts.

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The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Corporation statement of financial activities for the year ended 31 March 2024


for the year ended 31 March 2024
Operations/
Unrestricted		 Restricted
unrestricted
designated		 Restricted
Endowment		 Total funds Total funds
Note funds
funds		 funds
funds		 2024 2023
£’000 £’000 £’000 £’000 £’000 £’000
Income and endowments from:
Charitable activities
Performance related grants 2 15,260 - 513 - 15,773 15,260
Income from productions, tours and theatre
operations 3 99,034 - - - 99,034 70,049
Creative learning and engagement 1,238 - 500 - 1,738 927
Donations and legacies 4 3,729 - 1,713 - 5,442 4,152
Other trading activities 10(c) 2,879 - - - 2,879 1,924
Investments 5 1,615 - 4 211 1,830 1,177
Licensing of rights 2,078 - - - 2,078 1,336
Total 125,833 - 2,730 211 128,774 94,825
Expenditure on:
Charitable activities
Productions, tours and theatre operations 3 (114,291) (1,191) (2,646) - (118,128) (89,987)
Creative learning and engagement (2,715) - (847) - (3,562) (3,271)
Raising funds
Raising donations and legacies (1,732) - - - (1,732) (1,514)
Other trading activities (883) - - - (883) (817)
Investment management costs (70) - (2) - (72) (72)
Total 7 (119,691) (1,191) (3,495) - (124,377) (95,661)
Net gains / (losses) on investment assets 10(b) 1,168 - 63 1,069
 2,300 (1,069)
Net income / (expenditure) 7,310 (1,191) (702) 1,280 6,697 (1,905)
Transfers between funds 18 (21,914) 38,393 (16,219) (260) - -
Net income / (expenditure) after transfers (14,604) 37,202 (16,921) 1,020 6,697 (1,905)
Other recognised gains / (losses)
Actuarial gains / (losses) on defined benefit
pension scheme 22 183
 -
 -
 -
 183
 (2,105)
Net movement in funds (14,421) 37,202 (16,921) 1,020 6,880 (4,010)
Reconciliation of funds
Total funds brought forward 18 22,727
 9,149
 77,749
 13,370
 122,995
 127,005
Total funds carried forward 18 8,306
 46,351
 60,828
 14,390
 129,875
 122,995

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 51 to 92 form part of these accounts.

Prior year comparatives are shown in detail on page 48.

47

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Comparative corporation statement of financial activities for the year ended 31 March 2023


for the year ended 31 March 2023
Operations/
Unrestricted		 Restricted
unrestricted
designated		 Restricted
Endowment		 Total funds
Note funds
funds		 funds
funds		 2023
£’000 £’000 £’000 £’000 £’000
Income and endowments from:
Charitable activities
Performance related grants 2 15,260 - - - 15,260
Income from productions, tours and theatre
operations 3 70,049 - - - 70,049
Creative learning and engagement 927 - - - 927
Donations and legacies 4 3,438 - 714 - 4,152
Other trading activities 10(c) 1,924 - - - 1,924
Investments 5 976 - 10 191 1,177
Licensing of rights 1,336 - - - 1,336
Total 93,910 - 724 191 94,825
Expenditure on:
Charitable activities
Productions, tours and theatre operations 3 (88,110) (530) (1,347) - (89,987)
Creative learning and engagement (2,421) - (850) - (3,271)
Raising funds
Raising donations and legacies (1,514) - - - (1,514)
Other trading activities (817) - - - (817)
Investment management costs (48) - (1) (23) (72)
Total 7 (92,910) (530) (2,198) (23) (95,661)
Net loss on investment assets 10(b) (354) - (17) (698)
 (1,069)
Net income / (expenditure) 646 (530) (1,491) (530) (1,905)
Transfers between funds 18 (4,136) 4,136 280 (280) -
Net (expenditure) / income after transfers (3,490) 3,606 (1,211) (810) (1,905)
Other recognised losses
Actuarial losses on defined benefit pension
scheme 22 (2,105)
 -
 -
 -
 (2,105)
Net movement in funds (5,595) 3,606 (1,211) (810) (4,010)
Reconciliation of funds
Total funds brought forward 18 28,322
 5,543
 78,960
 14,180
 127,005
Total funds carried forward 18 22,727
 9,149
 77,749
 13,370
 122,995

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

A review of classification of group activities has been undertaken during the year. See note 1(b).

The notes on pages 51 to 92 form part of these accounts.

48

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Balance sheets at 31 March 2024

Note
Fixed assets
Tangible assets
9
Investments:
Investment in joint ventures
10(a)
Other investments
10(b)
Total fixed assets
Current assets
Stock and work in progress
11
Debtors
12
Cash at bank and in hand
13
Total current assets
Creditors:amounts falling due within one year
14
Net current assets
Total assets less current liabilities
Creditors:amounts falling due after more than one year
15
Provisions for liabilities
16
Net assets excluding pension liability

Defined benefit pension scheme liability
22
Total net assets
The funds of the Charity:
Endowment funds
18
Restricted funds
18
Unrestricted funds
General operating fund
18
Pension reserve
18
Designated funds
18
Total unrestricted funds
Total funds		 Consolidated
2024
2023
£’000
£’000
93,214
93,813
2,667
2,890
39,689
37,493
42,356
40,383
135,570
134,196
1,702
2,272
17,603
10,415
15,871
16,346
35,176
29,033
(18,662)
(16,625)
16,514
12,408
152,084
146,604
(20,265)
(20,230)
(283)
(283)
131,536
126,091

(1,016)
(2,258)
130,520
123,833
14,390
13,370
60,828
77,749
9,967
25,823
(1,016)
(2,258)
46,351
9,149
55,302
32,714
130,520
123,833		 Corporation
2024
2023
£’000
£’000
93,214
93,813
-
-
42,689
40,493

42,689
40,493

135,903
134,306
1,507
2,115
17,910
10,680
13,303
14,615

32,720
27,410
(17,184)
(15,950)

15,536
11,460

151,439
145,766
(20,265)
(20,230)
(283)
(283)

130,891
125,253
(1,016)
(2,258)

129,875
122,995

14,390
13,370
60,828
77,749
9,322
24,985
(1,016)
(2,258)
46,351
9,149

54,657
31,876

129,875
122,995

The notes on pages 51 to 92 form part of these accounts. These accounts were approved by the Board on 30 July 2024, authorised for issue and signed on its behalf by:

Shriti Vadera – Chair of the Board of Trustees

49

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Consolidated statement of cash flows for the year ended 31 March 2024

Note
Net cash (used in) / generated from operating activities
Cash flow from investing activities
Interest and dividend income received
Purchase of tangible fixed assets
Movement in cash in investment portfolio
Purchase of investments
Sale of investments
Loan to joint venture
Net cash generated from / (used in) investing activities
Cash flow from financing activities
Loan receipt

Net cash generated from financing activities

Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
13		 Consolidated
2024
2023
£’000
£’000
(1,458)
3,882
1,830
1,177
(1,551)
(3,325)
220
63
(3,306)
(27,817)
3,190
15,856
-
(150)
383
(14,196)
600
-

600
-

(475)
(10,314)
16,346
26,660
15,871
16,346

Reconciliation of net income / (expenditure) to net cash flow from operating activities

Net income/(expenditure) for the reporting period (as
per the Statement of Financial Activities)
Adjustments for:
Depreciation and impairment charges
Loss from share of joint venture
(Gains)/losses on investments
Interest on repayable finance
Dividends and interest income
Decrease in stock
Increase in debtors
Increase in creditors
Decrease in provisions
Loan to joint venture
Pension contributions paid
Post employment benefits interest charge
Net cash (used in) / generated from operating
activities		 Consolidated
2024
2023
£’000
£’000
6,504
(1,167)
2,150
1,445
223
150
(2,300)
1,069
405
396
(1,830)
(1,177)
570
1,105
(7,188)
(4,454)
1,067
6,370
-
(5)
-
150
(1,140)
-
81
-
(1,458)
3,882

50

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes

(forming part of the accounts)

1 Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

(a) Legal status

The Royal Shakespeare Company is incorporated under Royal Charter originally dated 31 October 1925 (as last amended on 6 March 2007) as “The Royal Shakespeare Company, Stratford-upon-Avon”, and it is a registered charity in England and Wales with registration number 212481. Its registered office is The Royal Shakespeare Theatre, Waterside, Stratford-upon-Avon, Warwickshire, CV37 6BB.

(b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective January 2019) – (“Charities SORP (FRS 102)”), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The Royal Shakespeare Company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements are presented in sterling which is also the functional currency of the Corporation.

The Corporation has taken advantage of the exemption under FRS 102 paragraph 1.12(b) from preparing a statement of cash flows on the basis that it is an ultimate parent undertaking which prepares a consolidated statement of cash flows.

Prior period adjustment

A review of classification of group activities has been undertaken during the year, and where activities undertaken by subsidiary companies fall within the charity’s objects, it is considered more appropriate to include the related income and expenditure within Charitable Activities in the Statement of Financial Activities.

The classification in the comparative figures has also been updated. The TTR of £4,919,401 has been reclassified from Trading income from subsidiaries into Income from Productions, tours and theatre operations. The associated costs of £28,257 have also been reclassified from Trading expenditure in subsidiaries into Expenditure on productions, tours and theatre operations. The heading Trading expenditure of subsidiaries is no longer being used and has been replaced with Other trading activities. Trading activities from subsidiaries of £4,501,483 has been reclassified into Other trading activities.

The table below presents the amounts reclassified in both consolidated and corporation comparative statements of financial activities for the year ended 31 March 2023:

Total fund 2023 Reclassification Total funds 2023
£’000 £’000 £’000
Consolidated
Income and endowments from:
Productions, tours and theatre operations 33,952 4,919 38,871
Trading income from subsidiaries 9,421 (9,421) -
Other trading activities 1,808 4,502 6,310
Expenditure on:
Productions, tours and theatre operations (58,054) (28) (58,082)
Trading expenditure of subsidiaries (4,267) 4,267 -
Other trading activities (817) (4,239) (5,056)
Corporation
Income and endowments from:
Trading income from subsidiaries 116 (116) -
Other trading activities 1,808 116 1,924

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

1 Accounting policies (continued)

(c) Preparation of the accounts on a going concern basis

In preparing the financial statements, the Trustees have considered whether the going concern basis of preparation remains appropriate. To make this assessment cash forecasts have been prepared on a monthly basis through to September 2025, which is a period of at least 12 months from the date of approval of these financial statements.

The Trustees have considered the current financial position of the company, and its future cash flows on both a base case and a worst-case basis for a period of at least 12 months from the date of signing these accounts. In preparing the base case assessment, management and the Trustees have applied judgement particularly in relation to the assumed box office income achievable from productions, and the impact of inflation over the period. There remains risk of audience confidence levels being impacted by the continued cost of living pressures which could affect consumer spending patterns.

Based on this assessment, the Trustees are satisfied that the charity and group have sufficient resources to continue as a going concern for at least 12 months from the date of signing the financial statements. The Trustees therefore consider that it is appropriate for the financial statements to be prepared on the going concern basis.

(d) Basis of consolidation

The consolidated financial statements of the Corporation comprise the financial statements of the charity and its subsidiary companies for the period from 1 April 2023 to 31 March 2024 (2023 year ended 31 March 2023) . The consolidation has been prepared using the purchase method of accounting on a line by line basis. Under this method acquired subsidiaries are included from the date of acquisition.

The results of the trading companies are disclosed in note 10.

The consolidated accounts include the 50% share in Arden Hotel Waterside LLP acquired during the year ended 31 March 2010 by RSC Estates Limited, a wholly owned subsidiary of the Corporation. Accounting for the joint venture is done using the equity method.

The consolidated financial statements include the group share of Matilda on Broadway LP, which is the entity producing Matilda The Musical on Broadway in New York and Matilda Acrobat Tour LP, which is the entity producing the North American touring production of Matilda The Musical (together “the LPs”). Whilst Matilda North America LLC is a general partner of the LPs and RSC Matilda US Limited has investments in the LPs, the RSC does not have control of them due to restrictions around the operation of the LPs and rights of other investors. However, the RSC is considered to have an interest in both LPs and has therefore recognised the income due from the LPs measured according to the terms of the Limited Partnership agreements and associated agreements. Both these tours have now finished and once the final costs have been settled, the entities will become dormant.

52

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued)

(forming part of the accounts)

1 Accounting policies (continued)

(e) Income

All income is accounted for at the fair value of the consideration received or receivable when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met and it is probable that the income will be received, and the amounts can be measured reliably. Income is deferred if it is received in advance of the accounting period in which services would be rendered (for example in advance of a theatrical performance) and if a donor has specified that the income must be used in future accounting periods.

Income from Government and other grants

Income from Government and other grants, whether capital or revenue, is credited to the Statement of Financial Activities when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably. Income is deferred only if these criteria are not met or when the provider specifies that the grant must be used in future periods.

Income from charitable activities

Income from charitable activities comprises income from box office and publications, education, partnerships and hire of costumes and props and is accounted for on an accruals basis excluding VAT. This category also includes grants specifically for the provision of services provided as part of charitable activities, which are recognised in line with the income from Government and other grants policies. It also includes income from co productions, which is recognised on an accruals basis excluding VAT and in accordance with the terms of the co production agreements.

Amounts due to the group companies in respect of the Theatre Tax relief 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.

Donations and legacy income

Donations are included in the Statement of Financial Activities when the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Tax recoverable under the Gift Aid scheme is accrued on donations, where this is an entitlement. For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted or, the estate has been finalised and notification has been made by the executors to the Corporation that a distribution will be made. Receipt of a legacy, in whole or part, is only considered probable when the amount can be measured reliably, and the charity has been notified of the executors’ intention to make a distribution. Where legacies have been notified to the Corporation or the Corporation is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Donations in kind

Donations in kind are recognised as income when the Corporation has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the Corporation of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised. On receipt, donations in kind are recognised on the basis of the value of the gift to the Corporation which is the amount the Corporation would have been willing to pay to obtain items of equivalent economic benefit on the open market.

Trading income from subsidiary undertakings

All income is accounted for on an accruals basis, net of VAT when the charity has entitlement to the funds, any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably.

Other trading income and licensing of rights

Other trading income relates to sponsorship, membership income, property letting and other income, none of which are individually material.

All income is accounted for on an accruals basis, net of VAT when the charity has entitlement to the funds, any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably.

53

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued)

(forming part of the accounts)

1 Accounting policies (continued)

(e) Income (continued)

Trading income from subsidiary undertakings

All income is accounted for on an accruals basis, net of VAT when the charity has entitlement to the funds, any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably.

Other trading income and licensing of rights

Other trading income relates to sponsorship, membership income, property letting and other income, none of which are individually material.

All income is accounted for on an accruals basis, net of VAT when the charity has entitlement to the funds, any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from Investments

Income from investments comprises the returns receivable on investments for the year, including recoverable tax and interest receivable on cash balances. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity. This is normally on notification of the interest paid or payable by the bank or financial institution.

Endowment fund income

Any income earned from a capital endowment fund may be used for general purposes unless specifically restricted by the endowment.

(f) Fund accounting

The Corporation has various types of funds for which it is responsible, and which require separate disclosure. These are as follows:

Unrestricted funds

These are funds which are expendable at the discretion of the Board in furtherance of the objects of the Corporation.

Designated funds

The Corporation may at its discretion set aside unrestricted funds for specific purposes. If no longer required, designated funds are reclassified as undesignated unrestricted funds.

Endowment funds

Such funds are given to the Corporation where the income may be used for general or specific purposes, but the capital must be retained. Where the donor has permitted the Corporation to use the capital for general or specific purposes at a future date, these are disclosed separately as expendable endowments.

Restricted funds

These are earmarked by the donor for specific purposes within the overall aims of the organisation. The donation must be utilised in accordance with the specific purposes.

54

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

1 Accounting policies (continued)

(g) Expenditure and irrecoverable VAT

All expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure is classified under the following activity headings:

Any VAT incurred which is irrecoverable is recognised as a cost against the activity for which the expenditure was incurred or allocated on the same basis.

(h) Allocation of support costs

Support costs are those functions that assist the work of the Corporation but do not directly undertake charitable activities. Support costs include back-office costs, finance, HR, IT and governance costs which support the Corporation’s artistic programme and activities. These costs have been allocated between raising funds and expenditure on charitable activities. The basis on which support costs have been allocated is set out in note 8.

(i) Foreign currencies

Transactions denominated in foreign currencies are translated into Sterling and recorded using the exchange rate at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated into Sterling at the exchange rates ruling at the relevant balance sheet date and the gains and losses on translation are included in the Statement of Financial Activities in the category to which the cost and income relates. The assets and liabilities of subsidiary foreign enterprises are translated into Sterling at the exchange rate ruling at the relevant balance sheet date, whilst income and expenditure is translated using an average exchange rate for the period. Gains and losses on translation of foreign enterprises are included in the Statement of Financial Activities.

(j) Leases

An asset and corresponding liability are recognised for leasing arrangements that transfer to the group substantially all the risks and rewards incidental to ownership (“finance leases”). The amount capitalised is the fair value of the leased asset or, if lower, the present value of the minimum lease payments payable during the lease term, both determined at inception of the lease. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the Statement of Financial Activities so as to produce a constant periodic rate of interest on the remaining balance of the liability.

All other leases are operating leases and the annual rentals are charged to the Statement of Financial Activities on a straight-line basis over the term of the lease.

55

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued)

(forming part of the accounts)

1 Accounting policies (continued)

(k) Tangible fixed assets

Fixed assets are stated at historical cost. The amount included under freehold theatres (see note 10) includes the original cost of construction and fitting out of The Royal Shakespeare Theatre, Swan Theatre and The Other Place together with the subsequent capital cost of improvements. With the exception of motor vehicles, assets purchased with a value below £50,000 are not capitalised.

Depreciation is provided in order to write off the cost less residual value evenly over the estimated lives of the assets. The rates of depreciation are as follows:

epreciation is provided in order to write off
he assets. The rates of depreciation are as		 the cost less resi
follows:
Asset Category Annual Rate
Freehold theatres 1 – 1.6%
Other properties 1 - 20%
Motor vehicles 25%
Other equipment, fixtures and fittings 4 - 33%
Assets under the course of construction 0%

Freehold land is not depreciated.

Assets under the course of construction represent the costs incurred on the redevelopment of theatres and workshops and equipment within those buildings. These assets are transferred to the appropriate category upon completion and depreciated in accordance with this policy.

An assessment is made at each reporting date of whether there are indications that a fixed asset may be impaired or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the Corporation estimates the recoverable amount of the asset. Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-inuse, are recognised as impairment losses. Impairments of revalued assets are treated as a revaluation loss. All other impairment losses are recognised in the Statement of Financial Activities. Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in the Statement of Financial Activities. On reversal of an impairment loss, the depreciation or amortisation is adjusted to allocate the asset’s revised carrying amount (less any residual value) over its remaining useful life.

Heritage assets

The corporation maintains a collection that was started in 1897 by Charles Edward Flower, consisting of costumes, artworks, props and objects as well as an archive of papers which include a copy of Shakespeare’s first folio. Some of the assets within the collection have artistic qualities and contribute to knowledge and culture through their retention. These assets, valued at £8.8m for insurance purposes, are therefore considered to be Heritage assets.

These assets are stated at historical cost 31 March 2024: £Nil (2023: £Nil) . Most of these assets were donated to the charity many years ago. Expenditure required to preserve or prevent deterioration of individual collection item is recognised in the Statement of Financial Activity when it is incurred.

(l) Investments

Current asset investments comprise short term investments that can be readily converted into cash and other readily convertible cash funds and unlisted investments in joint ventures that are not held for the continuing long-term benefit of the Corporation.

The group holds investments in subsidiaries and joint ventures as well as listed investments. Investments in subsidiaries and joint ventures in the form of equity are stated in the Corporation’s accounts at cost less any impairment provisions and are accounted for using the equity method of accounting in the consolidated financial statements.

Listed investments are stated at their fair value as at the balance sheet date by reference to their bid value. All movements in value arising from a change in the fair value of an investment are shown in the Statement of Financial Activities.

56

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

1 Accounting policies (continued)

(m) Stocks and work in progress

Stocks and work in progress which represent goods for resale or direct costs of projects in progress are stated at the lower of cost and net realisable value. Where a show is expected to make a surplus, preproduction costs are included in work in progress and charged to the Statement of Financial Activities over the run of the show to which they relate.

(n) Debtors

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

(o) Cash and cash equivalents

Cash and cash equivalents include cash and short term highly liquid assets with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar accounts held as part of the Corporation’s treasury management activities. They exclude any such assets held as part of fixed asset and endowment asset investments.

(p) Creditors and provisions

Creditors payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Provisions are recognised where the group has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

Creditors are normally recognised at their settlement amount after allowing for any trade discounts due and in the case of provisions after discounting to present value to reflect the time value of money and risks specific to the obligation where material.

57

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

1 Accounting policies (continued)

(q) Financial Instruments

Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument and are offset only when the charity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets

Debtors, amounts due from subsidiary undertakings and other receivables

Those which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. They are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

A provision for impairment is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in the Statement of Financial Activity for the excess of the carrying value over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in the Statement of Financial Activities.

Current asset investments and short-term deposits

Unlisted investments are measured at fair value. The Corporation has concluded that recoupment of these instruments is imminent and therefore that due to their short-term nature their fair value is not materially different from their settlement amount. Accordingly, these financial instruments are carried at their settlement amount.

Financial liabilities and equity

Creditors, amounts due to subsidiaries and other payables

Those payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Borrowings

Borrowings are initially recognised at fair value (net of transaction costs) and subsequently carried at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the Statement of Financial Activities over the period of the borrowings using the effective interest method.

Derecognition of financial assets and liabilities

A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

(r) Taxation

In accordance with Section 505 Income and Corporation Taxes Act 1988 the Corporation is exempt from the requirement to pay corporation tax on activities carried out for charitable purposes.

In the subsidiaries the policy is to pay all taxable profits to The Royal Shakespeare Company by way of Gift Aid. No deferred tax liability arises in the financial statements. Deferred tax assets are not recognised in the financial statements.

The Group receives creative industries tax credits from HMRC. These are shown as part of income from productions, tours and theatre operations.

58

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

1 Accounting policies (continued)

(s) Pensions

Defined benefit scheme

The Corporation operates a defined benefit pension scheme under which benefits are based on final pensionable pay. The assets of the scheme are held separately from those of the Corporation in separate trustee administered funds.

Full actuarial valuations, by a professionally qualified actuary, are obtained at least every three years and updated to reflect current conditions at each balance sheet date. The pension scheme assets are measured at fair value. The pension scheme liabilities are measured using the projected unit method and discounted at the rate of return on a high-quality corporate bond of equivalent term and currency.

The difference between the fair value of assets and the present value of accrued liabilities is shown as an asset or liability in the balance sheet. A pension scheme asset is only recognised on the balance sheet to the extent that the Corporation has the ability to recover the surplus either through reduced contributions in the future or through refunds from the scheme. A pension scheme liability is recognised to the extent that the Corporation has a legal or constructive obligation to settle the liability.

Changes relating to current or past service costs, gains and losses on settlements and curtailments and pension finance costs are allocated to appropriate expenditure categories in the Statement of Financial Activities. Actuarial gains and losses arising are included in the Statement of Financial Activities under the heading “Actuarial gains on defined benefit pension scheme”.

Net interest on the defined benefit asset/liability comprises the interest cost on the defined benefit obligation and interest income on the plan assets, calculated by multiplying the fair value of the plan assets at the beginning of the period by the rate used to discount the benefit obligation and is recognised as net income/expenditure.

Defined contribution schemes

The pension costs charged in the Statement of Financial Activities represent the amount of contributions payable to the scheme in respect of the year, to individuals’ personal pension schemes and to Equity and Musicians pensions schemes.

(t) Judgements and key sources of estimation uncertainty

Critical estimates in applying the group and Corporation’s accounting policies are as follows:

Defined benefit pension scheme

The Corporation operated a funded defined benefit pension scheme, the Royal Shakespeare Theatre Pension Scheme, providing benefits based on final pensionable pay. The latest actuarial valuation took place on 31 March 2023 and was updated for FRS 102 purposes to 31 March 2024 by a qualified independent actuary. Judgement is required in assessing the appropriateness of actuarial assumptions used by the actuary. The assumptions have been reviewed by management and they are considered reasonable.

Critical judgements in applying the group and Corporation’s accounting policies are as follows:

No critical judgements were made in applying the groups accounting policies.

59

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued)

(forming part of the accounts)

2 Performance related grants

Consolidated and Corporation
Unrestricted
£’000
Restricted
£’000
Income from charitable activities
Arts Council England - Revenue grant
15,260
513
15,260
513		 Total
2024
£’000
Total
2023
£’000
15,773
15,260
15,773
15,260
3
Income from productions, tours and theatre operations
Consolidated
Unrestricted
£’000
Designated
£’000
Restricted
£’000
Income from productions, tours and theatre operations:
Box office (including London)
49,011
-
-
Theatre tax relief
7,970
-
-
Touring income
755
-
-
Other income from theatre operations
431
-
-
58,167
-
-		 Total
2024
£’000
Total
2023
£’000
49,011
33,333
7,970
4,919
755
37
431
582
58,167
38,871
Unrestricted
£’000
Designated
£’000
Restricted
£’000
Productions and theatre operations expenditure:
Productions
(58,956)
-
(315)
Theatre operations
(9,845)
(1,191)
(2,331)
Sales and marketing costs
(4,143)
-
-
(72,944)
(1,191)
(2,646)		 Total
2024
£’000
Total
2023
£’000
(59,271)
(44,067)
(13,367)
(10,548)
(4,143)
(3,467)
(76,781)
(58,082)
Corporation
Unrestricted
£’000
Designated
£’000
Restricted
£’000
Total
2024
£’000
Income from productions, tours and theatre operations:
Box office (including London)
44,772
-
-
44,772
Production commissioning agreements
52,965
-
-
52,965
Touring income
755
-
-
755
Other income from theatre operations
542
-
-
542
99,034
-
-
99,034
Unrestricted
£’000
Designated
£’000
Restricted
£’000
Total
2024
£’000
Productions and theatre operations expenditure:
Productions (including commissioning fees)
(100,304)
-
(315)
(100,619)
Theatre operations
(9,844)
(1,191)
(2,331)
(13,366)
Sales and marketing costs
(4,143)
-
-
(4,143)
(114,291)
(1,191)
(2,646)
(118,128)		 Total
2023
£’000
33,333
36,038
37
641
70,049
Total
2023
£’000
(75,972)
(10,548)
(3,467)
(89,987)

60

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

4 Donations and legacies

Consolidated and Corporation
Unrestricted
£’000
Restricted
£’000
Endowment
£’000
Grants receivable
-
1,594
-
Donations and legacies
3,729
119
-
3,729
1,713
-		 Total
2024
£’000
1,594
3,848
5,442		 Total
2023
£’000
-
4,152

4,152

5 Investment income

Consolidated and Corporation
Unrestricted
£’000
Restricted
£’000
Endowment
£’000
ncome from listed investments
1,118
4
183
nterest on short term deposits
497
-
-
nvestment management fee rebates
-
-
28

1,615
4
211		 Total
2024
£’000
Total
2023
£’000
1,305
928
497
249
28
-


1,830
1,177

6 Staff and performing artists’ numbe ~~rs and c~~ os ~~ts, Trust~~ ee r ~~emunera~~ ti ~~on and e~~ xpe ~~nses,~~ and the cost of key management personnel

The average number of staff and performing artists engaged during the period was as follows:



Productions and theatre operations
Learning and national partnerships
Raising donations and legacies
Support staff		 2024
Number
815
32
30
74
951
 2023
Number
751
32
27
72
882

The total emoluments, including benefits in kind, of these persons was as follows:



Total emoluments
Social security costs
Defined contribution and other pension costs		 2024
2023
£’000
£’000
33,257
26,612
2,135
1,835
2,268
1,785
37,660
30,232

During the year redundancy payments totalling £308,210 (2023: £94,800) were made. This included ex-gratia payments of £212,229 ( 2023: £23,411 ).

Defined contribution pension costs are allocated directly to the related fund or charitable activity.

61

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

6 Staff and performing artists’ numbers and costs, Trustee remuneration and expenses, and the cost of key management personnel (continued)

The number of staff and performing artists whose total emoluments, including benefits in kind, exceeded £60,000 was as follows:


as follows:
2024 2023
Number Number
£60,001 - £70,000 19 8
£70,001 - £80,000 10 9
£80,001 - £90,000 4 7
£90,001 - £100,000 5 6
£100,001 - £110,000 3 2
£110,001 - £120,000 7 1
£120,001 - £130,000 - 1
£130,001 - £140,000 2 -
£140,001 - £150,000 - 1
£170,001 - £180,000 - 1

Remuneration was paid in respect of the Co-Artistic Directors and Executive Director’s duties in accordance with the Corporation’s Royal Charter. The appointment of these paid Directors to the Board is to create a mix of executive and non-executive Board members who share responsibility for the strategic and business planning of the Corporation.

2024 2023
Remuneration Employers Remuneration Employers Total
and Benefits Pension and Benefits Pension £’000
in Kind
contributions		 Total in Kind
contributions
£’000 £’000 £’000 £’000 £’000
Daniel Evans 70 4 74 - - -
Tamara Harvey 80 6 86 - - -
Gregory Doran - - - 21 2 23
Catherine Mallyon 134 12 146 145 15 160

The Co-Artistic Directors, Daniel Evans and Tamara Harvey, were appointed trustees on 28 September 2023. Their remuneration is included above for the period since they became trustees. Differences in remuneration, pensions and benefits relate to individual choices of accommodation and other benefits taken.

The comparative figures relate to the previous Artistic Director, Gregory Doran, who ceased to be a trustee on 22 April 2022. The trustee remuneration above relates to the period he was a Trustee.

During the year the Executive Director, Catherine Mallyon, resigned and ceased to be a trustee on 22 December 2023. Trustee’s remuneration for the year includes the period she was a trustee. A payment under an obligations and settlement agreement of £158,116 was also paid to Catherine Mallyon.

No other Board members received any remuneration from the Corporation in respect of their role as Board members (2023: £Nil).

Included within expenditure are expenses reimbursed to, or incurred on behalf of, 15 members of the Board (2023: 15) totalling £19,953 ( 2023: £8,788 ). These related to travel, subsistence and meeting expenses. See note 25 in respect of other payments to Board members.

The key management personnel of the Corporation comprise the Board of Governors and the SLT. The total remuneration (including employer’s pension contributions and termination payments) of the key management personnel was £1,401,106 ( 2023: £1,198,879 ).

62

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued)

(forming part of the accounts)

7
Total expenditure
Consolidated
Charitable activities
Production and theatre operations
Learning and national partnerships
Expenditure on raising funds
Expenditure on raising donations and legacies
Expenditure on other trading activities
Share of net loss in joint ventures
Investment management costs		 Direct
costs
2024
£’000
70,870
3,349
1,517
5,564
223
72
81,595		 Support
costs
2024
£’000
5,911
213
199
-
-
-
6,323		 Total
2024
Total
2023
£’000
£’000
76,781
58,082
3,562
3,271
1,716
1,500
5,564
5,056
223
150
72
72
87,918
68,131

Support costs have been allocated across activities on the basis of staff numbers.

2024 2023
Total expenditure includes: £’000 £’000
Depreciation 1,912 1,445
Impairment of tangible fixed assets 238 -
Auditor’s remuneration:
Statutory audit of parent and consolidated accounts 102 102
Audit of subsidiaries pursuant to legislation 46 34
Other services relating to taxation 31 12
Operating lease charges:
Land and buildings 548 463
Other than land and buildings 48 -
Net exchange losses/(gains) on foreign currency transactions 5 (25)
Corporation
Direct
costs
2024
Support
costs
2024
£’000
£’000
Charitable activities
Production and theatre operations
112,217
5,911
Learning and national partnerships
3,349
213
Expenditure on raising funds
Expenditure on raising donations and legacies
1,533
199
Expenditure on other trading activities
883
-
Investment management costs
72
-
118,054
6,323
Support costs have been allocated across activities on the basis of staff numbers.
Total expenditure includes:
Depreciation
Impairment of tangible fixed assets
Auditor’s remuneration:
Statutory audit of parent and consolidated accounts
Other services relating to taxation
Operating lease charges:
Land and buildings
Other than land and buildings
Net exchange losses/(gains) on foreign currency transactions		 Total
2024
Total
2023
£’000
£’000
118,128
89,987
3,562
3,271
1,732
1,514
883
817
72
72
124,377
95,661
2024
£’000
2023
£’000
1,912
1,445
238
-
102
102
4
4
548
463
48
-
5
(25)

63

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued)

(forming part of the accounts)
8
Support costs
Consolidated and Corporation
Staff costs
Professional fees
Information technology
Human resources
Culture Recovery Fund loan interest
Other Expenditure		 2024
£’000
2023
£’000
3,278
2,566
301
452
919
824
804
513
405
397
616
652
6,323
5,404

Staff costs relate to administrative functions including finance, management, IT and human resources. Governance costs totalled £126,830 (2023: £196,670).

64

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued)

(forming part of the accounts)

9 Tangible fixed assets

Consolidated

Freehold
Theatres
Other
properties
Other
equipment,
fixtures
and fittings
£’000
£’000
£’000
Cost
At beginning of year
96,960
17,617
18,686
Additions
-
-
-
Transfers
-
233
1,064
Disposals
-
-
(231)
At end of year
96,960
17,850
19,519
Depreciation
At beginning of year
19,335
9,031
11,399
Charge for the year
913
198
801
Impairment
-
-
238
Disposal
-
-
(231)
At end of year
20,248
9,229
12,207
Net book value
At 31 March 2024
76,712
8,621
7,312
At 31 March 2023
77,625
8,586
7,287
Corporation
Cost
At beginning of year
96,960
17,617
18,660
Additions
-
-
-
Transfers
-
233
1,064
Disposals
-
-
(231)
At end of year
96,960
17,850
19,493
Depreciation
At beginning of year
19,335
9,031
11,373
Charge for the year
913
198
801
Impairment
-
-
238
Disposal
-
-
(231)
At end of year
20,248
9,229
12,181
Net book value
At 31 March 2024
76,712
8,621
7,312
At 31 March 2023
77,625
8,586
7,287		 Motor
vehicles
Assets
under
course of
construction
£’000
£’000
82
315
-
1,551
-
(1,297)
-
-
82
569
82
-
-
-
-
-
-
-
82
-
-
569
-
315
60
315
-
1,551
-
(1,297)
-
-
60
569
60
-
-
-
-
-
-
-
60
-
-
569
-
315		 Total
£’000
133,660
1,551
-
(231)

134,980

39,847
1,912
238
(231)

41,766

93,214

93,813

133,612
1,551
-
(231)
134,932
39,799
1,912
238
(231)
41,718
93,214
93,813

All tangible fixed assets owned by the Corporation are held for charitable purposes. Other properties are freehold apart from three (2023: three) leasehold properties with net book value at 31 March 2024 of £96,424 (2023: £119,555). The movement in the year of £23,131 relates to depreciation of £23,131 (2023: depreciation £20,492 ) and additions of £Nil (2023: £63,323 ) . Legal charges granted over fixed assets of the Corporation are shown in Note 27.

65

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

10 Fixed assets investments

Consolidated and Corporation

Joint ventures
(a)
Listed investments
(b)
Consolidated fixed asset investments
Investment in subsidiary undertakings
(c)
Less joint ventures
Corporation fixed asset investments		 2024
£’000
2023
£’000
2,667
2,890
39,689
37,493
42,356
40,383
3,000
3,000
(2,667)
(2,890)
42,689
40,493

All investments are held primarily to provide an investment return.

(a) Joint ventures

Carrying value at beginning of year
Share of net loss of joint ventures
Carrying value at end of year
Historic cost		 Share of Joint Ventures
2024
£’000
2023
£’000
2,890
3,040
(223)
(150)
2,667
2,890
3,000
3,000

During the year the Corporation had an interest in the following joint ventures:

Organisation Name Country of Principal Activity Class of Parent Consolidation
Incorporation Share Corporation Method
Capital Interest
Held
Arden Hotel Waterside LLP1 UK Operating the Arden Hotel N/A 50% Equity
(Indirect) accounting

1 Joint venture interest in Arden Hotel Waterside LLP is held by RSC Estates Limited. The Corporation has a legal charge over the assets of RSC Estates Limited.

66

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued)

(forming part of the accounts)

10 Fixed asset investments (continued)

(a) Joint ventures (continued)

A summary of the Corporation’s share of results is shown below:

Profit and loss account Arden Hotel Waterside LLP
2024 2023
£’000 £’000
Turnover 1,308 1,214
Cost of sales (839) (714)
Gross profit 469 500
Administration expenses (645) (620)
Operating (loss) (176) (120)
Interest payable and similar charges (47) (30)
Loss for the financial period (223) (150)

The Corporation’s share of the assets and liabilities is as follows:

Arden Hotel Waterside LLP
2024 2023
£’000 £’000
Fixed assets 3,533 3,739
Current assets 76 72
Total assets 3,609 3,811
Liabilities (942) (921)
2,667
 2,890

Details of transactions with group undertakings and balances at 31 March 2024 are shown in note 24. Details of loans to subsidiary companies and joint ventures as at 31 March 2024 are described in note 23.

67

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued)

(forming part of the accounts)

10 Fixed asset investments (continued)

(b) Listed investments

Listed investments:
Unrestricted
2024
£’000
Restricted
2024
£’000
Endowment
2024
£’000
United Kingdom fixed interest unit trusts
-
-
-
United Kingdom property funds
-
-
-
United Kingdom liquidity funds
2,900
-
-
United Kingdom equities and equity unit
trusts
21,627
681
14,397
Listed investments
24,527
681
14,397
Cash held in investment portfolio
61
22
1
Fixed asset investments at fair value
24,588
703
14,398		 Total
2024
£’000
Total
2023
£’000
-
433
-
786
2,900
-
36,705
35,970
39,605
37,189
84
304
39,689
37,493

Reconciliation of movements in investments

Listed Investments Listed Investments
2024 2023
£’000 £’000
Fair value at beginning of year 37,493 26,664
Movement in cash held in investment portfolio (220) (63)
Additions 3,306 27,817
Disposals (3,190) (15,856)
Net gains / (losses) on revaluation 2,300 (1,069)
Fair value at end of year 39,689 37,493
Historic cost 37,995 37,629

All listed investments are held indirectly via UK investment and unit trusts with the exception of shares in Hansard Global plc donated to the Corporation during 2008 and retained in accordance with the wishes of the donor.

At the year end, the Corporation held the following investments, which represented material investments within the total portfolio of the Corporation:

2024 2023
Value Portfolio Value Portfolio
£’000 % £’000 %
Cazenove Charity Sustainable Multi-Asset Fund 22,308 56.2 21,123 56.3
Sarasin Climate Active Endowments Fund 14,229 35.9 13,022 34.7

With the exception of shares in Hansard Global plc and the Climate Active Endowments Fund managed by Sarasin, all the investments were managed by the Charities division of Cazenove Capital Management.

68

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

10 Fixed asset investments (continued)

(c) Subsidiaries

As at 31 March 2024 the Corporation had an interest in the following subsidiary undertakings:

Organisation Name Country of Principal Activity Class of Parent Consolidation
Incorporation Share Corporation (Method)
and registration Capital Interest
number Held
Matilda North America US General Manager of_Matilda_ the N/A N/A Yes
LLC1 _Musical_in the US (Line by Line)
RSC Enterprise Limited UK Commercial activities relating to Ordinary 100% Yes
02360172 The Royal Shakespeare Company (Line by Line)
including retail, catering and trading
operations.
RSC Estates Limited UK Investment in the joint venture, Ordinary 100% Yes
06977192 Arden Hotel Waterside LLP (Line by Line)
RSC Matilda UK Investment in the unincorporated Ordinary 100% Yes
Australasia Limited2 09477058 entity to co-produce Matilda Miracle (Line by Line)
Tour in Australia. The company is
dormant from 1 April 2022.
RSC Matilda US UK Investment in_Matilda The Musical_ Ordinary 100% Yes
Limited 08417755 on Broadway LP and Matilda (Line by Line)
Acrobat Tour LP
RSC Pre-Productions UK To produce, supply and fit the set Ordinary 100% Yes
Limited 09227641 and equipment necessary for the (Line by Line)
production of live theatre on behalf
of the RSC.
RSC Productions UK Co-producer of the Matilda Miracle Ordinary 100% Yes
Limited2 07565512 Tour in Australia. The company is (Line by Line)
dormant from 1 April 2022.
RSCA Limited UK Dormant Ordinary 100% Yes
02215521 (Line by Line)
RSC Touring Limited UK Produces and manages certain Ordinary 100% Yes
10776856 touring productions on behalf of the (Line by Line)
RSC
Hathaway Productions UK Produces and manages certain Ordinary 100% Yes
Limited 14690651 productions on behalf of the RSC (Line by Line)
and third-party investors

1 The Corporation has an interest in Matilda North America LLC alongside Dodgers Properties LLC. The co-production agreement provides that the Corporation and Dodger Properties LLC will endeavour to agree on all major decisions but in the absence of agreement, the determination of the Corporation will prevail. The Corporation is therefore considered to control the entity. Matilda North America LLC is the sole general partner of Matilda on Broadway LP.

2 These entities are exempt from audit of the individual financial statements by virtue of a guarantee provided under section 479c of the Companies Act 2006. The guarantee covers all liabilities of the subsidiary concerned at the reporting date until such time as they are satisfied in full.

There are no restrictions on the ability of subsidiaries to transfer their funds to the charity.

Details of transactions with subsidiaries and balances at 31 March 2024 are shown in note 24.

69

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

10 Fixed asset investments (continued)

(c) Subsidiaries (continued)

The financial results for the period were:

Statement of comprehensive income

Turnover/income
Cost of sales
Gross (loss) / profit
Selling and distribution costs
Administration
Operating (loss) / profit
Interest receivable and similar income
Interest payable and similar charges
Tax credit
(Loss) / profit for the period
Turnover/income
Cost of sales

Gross (loss) / profit
Administration

Operating loss
Tax credit*2

Result for the financial period
 Hathaway
Productions
Limited*1
2024
£’000
4,239
(4,562)

(323)
-
(52)

(375)
-
-
375

-

RSC Pre-
Productions
Limited
2024
2023
£’000
£’000
45,403
31,147
(52,966)
(36,038)
(7,563)
(4,891)
(32)
(28)
(7,595)
(4,919)
7,595
4,919
-
-		 RSC Estates
Limited
2024
2023
£’000
£’000
-
-
-
-
-
-
-
-
(6)
(6)
(6)
(6)
12
-
(9)
-
-
-
(3)
(6)
RSC Matilda US
Limited
2024
2023
£’000
£’000
3
5
-
-
3
5
(5)
(5)
(2)
-
-
-
(2)
-		 RSC Enterprise
Limited
2024
2023
£’000
£’000
5,439
5,098
(3,878)
(3,443)
1,561
1,655
(45)
(28)

(1,013)
(868)

503
759
2
-
(9)
(10)
-
142

496
891

RSC Touring
Limited
2024
2023
£’000
£’000
5
80
-
(75)

5
5

(5)
(5)

-
-
-
-

-
-

*1 Hathaway Productions Limited was incorporated on 27 February 2023, but did not commence trading until August 2023. The accounting period included above is a long accounting period from incorporation to 31 March 2024.

*2 Tax credit in respect of Theatre Tax Relief.

RSC Productions Limited, RSC Matilda Australasia Limited and Matilda North America LLC were dormant for both the current and prior financial year so no Statement of Comprehensive income has been prepared.

The results above have been adjusted on consolidation for intra-group transactions.

70

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

10 Fixed asset investments (continued)

(c) Subsidiaries (continued)

Material components of income from other trading activities are as follows:

Catering
Retail, programmes and licencing
Audience of the future
Management recharges
Gift aid from subsidiary undertaking
Other trading activities		 Consolidated
Corporation
2024
2023
2024
2023
£’000
£’000
£’000
£’000
2,544
1,749
-
-
2,120
1,647
-
-
-
374
-
-
-
-
477
116
-
-
461
-
2,425
2,540
1,941
1,808
7,089
6,310
2,879
1,924

71

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

10 Fixed asset investments (continued)

(c) Subsidiaries (continued)

The aggregate of the assets and liabilities is as follows:

Hathaway
Productions
Limited
2024
£’000
Assets
1,007
Liabilities
(1,007)
-
Assets
Liabilities		 RSC Estates
Limited
2024
2023
£’000
£’000
3,155
3,152
(187)
(181)
2,968
2,971
 RSC Enterprise
Limited
2024
2023
£’000
£’000
2,320
1,888
(1,280)
(883)
1,040
1,005
RSC Matilda US
Limited
2024
2023
£’000
£’000
9
6
(40)
(35)

(31)
(29)		 RSC Pre-
Productions
Limited
2024
2023
£’000
£’000
7,108
6,178
(7,108)
(6,178)

-
-

RSC Touring
Limited
2024
2023
£’000
£’000
762
762
(762)
(762)


--

Matilda North American LLC had assets and liabilities of £Nil at 31[st] March 2024 (2023: £Nil). RSC Productions Limited and RSC Matilda Australasia Limited are dormant companies with net assets of £2.

The historic cost and carrying value of these investments at 31 March 2024 was £3,000,312 (2023: £3,000,310) , comprising £100 RSC Enterprise Limited, £100 RSCA Limited, £3,000,002 RSC Estates Limited (further details are in note 24), £100 RSC Matilda US Limited, £2 Hathaway Productions Limited, £2 RSC Pre-Productions Limited, £2 RSC Matilda Australasia Limited, £Nil Matilda North America LLC, £2 RSC Productions Limited and £2 RSC Touring Limited.

(d) Non-Controlling Interest

The Corporation jointly controls Matilda North America LLC with Dodgers Properties LLC and the asset allocation to each of the parties follows the allocation of royalties as determined in the co-production agreement. This allocation specifies 60% in favour of Dodgers Properties LLC and 40% for the RSC. There are no net assets/liabilities and no profit or loss as at the balance sheet date. Therefore, there are no noncontrolling interests relating to this entity shown in the consolidated financial statements. The carrying value of this interest at 31 March 2024 was £Nil (2023: £Nil) .

72

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued)

(forming part of the accounts)

11 Stock and work in progress

Work in progress
Goods for resale
12
Debtors
Amounts falling due within one year
Trade debtors
Amounts due from subsidiary undertakings (note 24)
Amounts due from joint ventures
Other debtors
Theatre tax relief
Prepayments
Accrued income		 Consolidated
2024
2023
£’000
£’000
1,507
2,115
195
157
1,702
2,272
Consolidated
2024
2023
£’000
£’000
6,060
1,733
-
-
150
150
144
371
7,483
6,176
1,227
1,229
2,539
756
17,603
10,415		 Corporation
2024
2023
£’000
£’000
1,507
2,115
-
-
1,507
2,115
Corporation
2024
2023
£’000
£’000
5,946
1,574
8,832
7,295
-
-
3
7
-
-
1,202
1,218
1,927
586
17,910
10,680

12 Debtors

Amounts due from subsidiary undertakings and amounts from joint ventures include loans as noted in note 24.

13 Cash at bank and in hand

Short term deposits
Cash at bank and in hand		 Consolidated
Corporation
2024
2023
2024
2023
£’000
£’000
£’000
£’000
9,905
11,970
9,905
11,970
5,966
4,376
3,398
2,645
15,871
16,346
13,303
14,615

73

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued)

(forming part of the accounts)

14 Creditors: amounts falling due within one year

Trade creditors
Amounts due to subsidiary undertakings
Repayable finance from Culture Recovery Fund (note 15)
Nesta Arts & Culture Impact Loan (note 15)
Taxation and social security
Other creditors
Accruals
Ticket advances
Other deferred income		 Consolidated
Corporation
2024
2023
2024
2023
£’000
£’000
£’000
£’000
1,380
1,829
1,258
1,725
-
-
9
6
770
-
770
-
200
-
200
-
2,599
1,418
2,318
1,300
310
251
253
194
8,787
7,536
7,784
7,152
3,638
4,078
3,638
4,078
978
1,513
954
1,495
18,662
16,625
17,184
15,950

Deferred income comprises cash received for which the related service, project or expenditure occurs in a future financial year.

Deferred income and ticket advances at 1 April
Deferred in the year
Released in the year
Deferred income and ticket advances at 31 March		 Consolidated
Corporation
2024
2023
2024
2023
£’000
£’000
£’000
£’000
5,591
4,343
5,573
4,011
14,152
10,592
13,909
10,375
(15,127)
(9,344)
(14,890)
(8,813)
4,616
5,591
4,592
5,573

15 Creditors: amounts falling due after more than one year

Repayable finance from Culture Recovery Fund
Nesta Arts & Culture Impact Loan		 Consolidated
2024
2023
£’000
£’000
19,865
400
20,230
-
20,265
20,230		 Corporation
2024
2023
£’000
£’000
19,865
400
20,230
-
20,265
20,230

The Company successfully applied for repayable finance of £19.4m from the government’s Culture Recovery Fund. This was drawn down in February 2021 and is a twenty-year loan at 2% interest per annum, with a four year initial repayment holiday. The creditor falling due after more than one year represents the principal amount drawn down plus interest less the first repayment which is due in February 2025.

The company successfully applied for a repayable loan of £600,000 from Nesta Arts & Cultural Impact LLP. The loan was drawn down in August 2023, and is a 3-year loan at 4% interest per annum, repayable in annual instalments on 25 September 2024, 25 September 2025 and 25 September 2026.

74

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued)

(forming part of the accounts)

16 Provisions for liabilities

1 April
Reduced provision in year
31 March		 Consolidated
Corporation
2024
2023
2024
2023
£’000
£’000
£’000
£’000
283
288
283
288
-
(5)
-
(5)
283
283
283
283

Provision has been made for VAT that may become payable under the Capital Goods Scheme relating to capital works. This will be payable over a 10-year period from first use of the buildings and the amount due will depend on the taxable use of the buildings over that 10-year period and the VAT partial exemption rate at that time. 17 Financial Instruments

Note
Financial assets:
Financial assets at fair value through net
income/expenditure
-Listed Investments
10(b)
Debt instruments measured at amortised cost
-Trade debtors
12
-Amounts due from subsidiary undertakings
12
-Accrued income
12
-Cash and short-term deposits
13
-Theatre Tax Relief
12
Total
Financial liabilities:
Measured at amortised cost
-Trade creditors
14
-Amounts due to subsidiary undertakings
14
-Other creditors
14
-Accruals
14
-Nesta Arts & Culture Impact Loan
15
-Culture Recovery Fund repayable finance
15
Total		 Consolidated
Corporation
2024
2023
2024
2023
£’000
£’000
£’000
£’000
39,689
37,493
39,689
37,493
6,060
1,733
5,946
1,574
-
-
8,832
7,295
2,539
756
1,927
586
15,871
16,346
13,303
14,615
7,483
6,176
-
-
71,642
62,504
69,697
61,563
1,380
1,829
1,258
1,725
-
-
9
6
310
251
253
194
8,787
7,536
7,784
7,152
600
-
600
-
20,635
20,230
20,635
20,230
31,712
29,846
30,539
29,307

75

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

18 Funds

Consolidated
Balance at
1 April 2023
£’000
Unrestricted
General Operating Fund
25,823
Pension reserve
(2,258)
23,565
Unrestricted Designated Funds
Fixed Asset Fund_(Previously Capital_
Expenditure Fund)
4,502
Redevelopment Fund
4,167
Digital Development Fund
480
Strategic Investment Fund
-
Total unrestricted designated funds
9,149
Total unrestricted funds
32,714
Endowment funds
Paul Hamlyn Endowment Fund
6,492
Actors’ Fund
5,123
Catalyst Fund
1,595
Expendable Endowment Fund
160
Total endowment funds
13,370
Restricted
Fixed Asset Fund_(previously_
Redevelopment Fund)
66,777
TOP Capital Fund
5,405
Costume Workshop Capital Fund
4,033
Swan Auditorium Fund
513
Swan Wing Capital Fund
172
Theatrical Profession Relief Fund
389
Fanny Bradshaw Fund
286
Literary Writing Programme Fund
87
New York Residency Fund
87
ACE Touring Fund
-
Creative Learning and Engagement
Fund_(previously Paul Hamlyn_
Foundation Fund)
-
Artist Development Fund
-
Arts and Humanities Research
Council Fund
-
Total restricted income funds
77,749
Total restricted/endowment funds
91,119
Total funds
123,833		 Income
Expenditure
Transfers
Gains on
investments
and other
gains
Balance at
31 March
2024
£’000
£’000
£’000
£’000
£’000
89,181
(83,151)
(23,054)
1,168
9,967
-
(81)
1,140
183
(1,016)
89,181
(83,232)
(21,914)
1,351
8,951
-
(1,185)
30,560
-
33,877
-
-
(4,167)
-
-
-
(6)
-
-
474
-
-
12,000
-
12,000
-
(1,191)
38,393
-
46,351
89,181
(84,423)
16,479
1,351
55,302
197
-
(260)
527
6,956
11
-
-
408
5,542
3
-
-
126
1,724
-
-
-
8
168
211
-
(260)
1,069
14,390
44
(795)
(13,127)
-
52,899
-
(225)
(2,180)
-
3,000
25
(207)
(566)
-
3,285
-
(19)
(494)
-
-
-
(18)
-
-
154
1
(1)
-
41
430
3
(1)
-
22
310
-
(87)
-
-
-
-
(45)
-
-
42
513
(315)
-
-
198
50
(260)
260
-
50
500
(500)
-
-
-
1,594
(1,022)
(112)
-
460
2,730
(3,495)
(16,219)
63
60,828



2,941
(3,495)
(16,479)
1,132
75,218



92,122
(87,918)
-
2,483
130,520

76

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

18 Funds (continued)

Consolidated

Consolidated
Balance at
1 April 2022
£’000
Unrestricted
General Operating Fund
28,422
Pension reserve
-
28,422
Unrestricted Designated Funds
Capital Expenditure Fund
1,072
Redevelopment Fund
4,167
Digital Development Fund
304
Total unrestricted designated funds
5,543

Total unrestricted funds
33,965

Endowment funds
Paul Hamlyn Endowment Fund
7,042
Actors’ Fund
5,324
Catalyst Fund
1,646
Expendable Endowment Fund
168
Total endowment funds
14,180

Restricted
Redevelopment Fund
67,572
TOP Capital Fund
5,631
Costume Workshop Capital Fund
4,087
Swan Auditorium Fund
531
Swan Wing Capital Fund
189
Theatrical Profession Relief Fund
396
Fanny Bradshaw Fund
287
Literary Writing Programme Fund
158
New York Residency Fund
87
Creative Fellowship Fund
14
Sir Fordham Flower Fund
8
Paul Hamlyn Foundation Fund
-
Audience of the Future Fund
-
Artist Development Fund
-
Total restricted income funds
78,960
Total restricted/endowment funds
93,140
Total funds
127,105		 Income
Expenditure
Transfers
Losses on
investments
and other
losses
Balance at
31 March
2023
£’000
£’000
£’000
£’000
£’000
66,711
(64,820)
(4,136)
(354)
25,823
-
(153)
-
(2,105)
(2,258)
66,711
(64,973)
(4,136)
(2,459)
23,565
-
(530)
3,960
-
4,502
-
-
-
-
4,167
-
-
176
-
480
-
(530)
4,136
-
9,149




66,711
(65,503)
-
(2,459)
32,714




191
-
(280)
(461)
6,492
-
(20)
-
(181)
5,123
-
(3)
-
(48)
1,595
-
-
-
(8)
160

191
(23)
(280)
(698)
13,370




-
(795)
-
-
66,777
-
(226)
-
-
5,405
213
(267)
-
-
4,033
-
(18)
-
-
513
-
(17)
-
-
172
9
(1)
-
(15)
389
2
(1)
-
(2)
286
-
(71)
-
-
87
-
-
-
-
87
-
(14)
-
-
-
-
(8)
-
-
-
-
(280)
280
-
-
407
(407)
-
-
-
500
(500)
-
-
-
1,131
(2,605)
280
(17)
77,749
1,322
(2,628)
-
(715)
91,119



68,033
(68,131)
-
(3,174)
123,833

77

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

18 Funds (continued)

Corporation
Balance at
1 April 2023
£’000
Unrestricted
General Operating Fund
24,985
Pension reserve
(2,258)

22,727

Unrestricted Designated Funds
Fixed
Asset
Fund
(Previously
Capital Expenditure Fund)
4,502
Redevelopment Fund
4,167
Digital Development Fund
480
Strategic Investment Fund
-
Total unrestricted designated funds
9,149
Total unrestricted funds
31,876

Endowment funds
Paul Hamlyn Endowment Fund
6,492
Actors’ Fund
5,123
Catalyst Fund
1,595
Expendable Endowment Fund
160

Total endowment funds
13,370

Restricted
Fixed Asset Fund_(previously_
Redevelopment Fund)
66,777
TOP Capital Fund
5,405
Costume Workshop Capital Fund
4,033
Swan Auditorium Fund
513
Swan Wing Capital Fund
172
Theatrical Profession Relief Fund
389
Fanny Bradshaw Fund
286
Literary Writing Programme Fund
87
New York Residency Fund
87
ACE Touring Grant
-
Creative Learning and Engagement
Fund_(previously Paul Hamlyn_
Foundation Fund)
-
Artist Development Fund
-
Arts and Humanities Research
Council Fund
-

Total restricted income funds
77,749
Total restricted/endowment funds
91,119
Total funds
122,995		 Income
Expenditure
Transfers
Gains on
investments
and other
gains
Balance at
31 March
2024
£’000
£’000
£’000
£’000
£’000
125,833
(119,610)
(23,054)
1,168
9,322
-
(81)
1,140
183
(1,016)

125,833
(119,691)
(21,914)
1,351
8,306

-
(1,185)
30,560
-
33,877
-
-
(4,167)
-
-
-
(6)
-
-
474
-
-
12,000
-
12,000

-
(1,191)
38,393
-
46,351

125,833
(120,882)
16,479
1,351
54,657

197
-
(260)
527
6,956
11
-
-
408
5,542
3
-
-
126
1,724
-
-
-
8
168

211
-
(260)
1,069
14,390
44
(795)
(13,127)
-
52,899
-
(225)
(2,180)
-
3,000
25
(207)
(566)
-
3,285
-
(19)
(494)
-
-
-
(18)
-
-
154
1
(1)
-
41
430
3
(1)
-
22
310
-
(87)
-
-
-
-
(45)
-
-
42
513
(315)
-
-
198
50
(260)
260
-
50
500
(500)
-
-
-
1,594
(1,022)
(112)
-
460

2,730
(3,495)
(16,219)
63
60,828




2,941
(3,495)
(16,479)
1,132
75,218

128,774
(124,377)
-
2,483
129,875

78

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

18 Funds (continued)

Corporation
Balance at
1 April
2022
£’000
Unrestricted
General Operating Fund
28,322
Pension reserve
-

28,322

Unrestricted Designated Funds
Capital Expenditure Fund
1,072
Redevelopment Fund
4,167
Digital Development Fund
304
Total unrestricted designated funds
5,543
Total unrestricted funds
33,865

Endowment funds
Paul Hamlyn Endowment Fund
7,042
Actors’ Fund
5,324
Catalyst Fund
1,646
Expendable Endowment Fund
168

Total endowment funds
14,180

Restricted
Redevelopment Fund
67,572
TOP Capital Fund
5,631
Costume Workshop Capital Fund
4,087
Swan Auditorium Fund
531
Swan Wing Capital Fund
189
Theatrical Profession Relief Fund
396
Fanny Bradshaw Fund
287
Literary Writing Programme Fund
158
New York Residency Fund
87
Creative Fellowship Fund
14
Sir Fordham Flower Fund
8
Paul Hamlyn Foundation Fund
-
Artist Development Fund
-

Total restricted income funds
78,960
Total restricted/endowment funds
93,140
Total funds
127,005		 Income
Expenditure
Transfers
Losses on
investments
and other
losses
Balance at
31 March
2023
£’000
£’000
£’000
£’000
£’000
93,910
(92,757)
(4,136)
(354)
24,985
-
(153)
-
(2,105)
(2,258)

93,910
(92,910)
(4,136)
(2,459)
22,727

-
(530)
3,960
-
4,502
-
-
-
-
4,167
-
-
176
-
480

-
(530)
4,136
-
9,149

93,910
(93,440)
-
(2,459)
31,876

191
-
(280)
(461)
6,492
-
(20)
-
(181)
5,123
-
(3)
-
(48)
1,595
-
-
-
(8)
160

191
(23)
(280)
(698)
13,370
-
(795)
-
-
66,777
-
(226)
-
-
5,405
213
(267)
-
-
4,033
-
(18)
-
-
513
-
(17)
-
-
172
9
(1)
-
(15)
389
2
(1)
-
(2)
286
-
(71)
-
-
87
-
-
-
-
87
-
(14)
-
-
-
-
(8)
-
-
-
-
(280)
280
-
-
500
(500)
-
-
-

724
(2,198)
280
(17)
77,749




915
(2,221)
-
(715)
91,119

94,825
(95,661)
-
(3,174)
122,995

79

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

18 Funds (continued)

Unrestricted funds

The General Operating Fund represents the total unrestricted undesignated reserves held by the Corporation.

Designated funds

The Capital Expenditure Fund is designated to fund depreciation from capital expenditure. The fund is represented by fixed assets.

The Redevelopment Fund represents funds designated in support of depreciation charges relating to the redevelopment programme for The Other Place and The Swan. The fund is represented by fixed assets.

During the year, the board agreed that the Capital Expenditure Fund and the Redevelopment Fund should be merged and renamed the Fixed Asset fund. This fund, together with the restricted capital funds, represents the net book value of Fixed Assets. Depreciation is charged against this fund.

The Digital Development Fund was designated in January 2022, following the conclusion of the Audience of the Future project in December 2021. It represents the surplus match funding provided to support the original project together with Research and Development tax credits and will allow the RSC to build upon the digital innovation work achieved over the past few years. This includes incorporating digital tools into production and audience processes and a programme of Digital R&D.

During the year, the board agreed to set up a Strategic Investment Fund. This is to earmark funds for future strategic projects including commercial opportunities to generate future cashflows or initiatives to develop financial sustainability.

Endowment Funds

The Actors Endowment Fund was set up following a transfer of £3.2m to the charity in 1999. The income from the Actors’ Fund must be used to support the Corporation’s actors.

The Catalyst Fund is an Arts Council England match funded permanent endowment fund, the income from which will support major projects additional to those supported by other Arts Council funding agreements.

The Paul Hamlyn Endowment Fund was set up following a £7m endowment received in December 2020. The purpose of the fund is to support the future of the company’s work in schools across the UK with annual income generated by it used solely to support its charitable educational work about Shakespeare in schools, with children, young people, their families and local communities as well as staff and teachers. A transfer is made of income generated from the Endowment Fund to the Paul Hamlyn Foundation restricted income fund below, to be utilised against relevant educational expenditure.

The Expendable Endowment Fund represents a capital donation to be retained in accordance with the wishes of the donor, which may be transferred to income at a future date to be agreed. The income arising from this fund may be used for general or restricted purposes in accordance with the donor’s wishes, as agreed from time to time.

Restricted Income Funds

The Redevelopment Fund represents contributions from Arts Council England, Advantage West Midlands and private donors to fund the redevelopment of the Royal Shakespeare Theatre site in Stratford-uponAvon. This has been renamed to the Fixed Asset Fund during the year.

The Other Place (TOP) Capital Fund represents contributions from Arts Council England and private donors to fund the redevelopment of the former Courtyard Theatre into a re-purposed multi-function building incorporating a new studio theatre, rehearsal spaces and commercial spaces.

80

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

18 Funds (continued)

The Costume Workshop fund represents the funding raised towards the Stitch in Time project to improve facilities, open the workshop up to the public for the first time and allow new apprenticeships. This balance remains restricted due to charges given to funders, in accordance with the terms of the grant funding agreement. The depreciation of the capitalised cost, which is included in fixed assets, is charged against this fund.

The Swan Auditorium Fund represents the original donation received for the creation of the Swan Auditorium. The depreciation of the capitalised cost, which is included in fixed assets, is charged against this fund.

The Swan Wing Capital Fund represents contributions from the Heritage Lottery Fund and private donors to fund the redevelopment of a new exhibition space within the Swan Wing of the theatre. The depreciation of the capitalised cost, which is included in fixed assets, is charged against this fund.

During the year, these restricted capital funds have been reviewed. Restrictions are considered to have fulfilled where the asset has been purchased or built but a restriction is considered to remain in place where there are ongoing requirements, such as guarantees or charges. Any funds that do not have an ongoing restriction or where the value of the fund exceeds the ongoing value of the restriction, have been transferred into the designated fixed asset fund.

The Theatrical Profession Relief Fund exists to assist and relieve poor and necessitous persons who are either members of the theatrical profession or are, or have been, employees of, or have done service for, the Corporation.

The Fanny Bradshaw and Sir Fordham Flower Funds provide bursaries to theatre employees for travelling abroad to strengthen the Corporation’s contact with overseas theatres and theatrical organisations. The Sir Fordham Flower Fund was fully utilised in the year to 31 March 2023.

The Literary Writing Programme Fund represents funding received for the literary writing programme and is to be spent over the next two years.

The New York Residency Fund represents partnership funding provided by JP Morgan to fund a residency in New York.

ACE have provided a grant totalling £1.3m over 3 years to support our programme of UK touring productions. During the year ended 31 March 2024, £512,586 was received which supported our First Encounters production of Twelfth Night and our touring production of Julius Caesar.

The Creative Fellowship Fund was created to enable the development and enrichment of the role of assistant directors and design assistants, past, present, and future. The fund was fully utilised in the year ended March 2023.

The Creative Learning and Engagement Fund (Previously The Paul Hamlyn Foundation Fund) represents education activity funded by income generated by the Paul Hamlyn Endowment Fund (as described above) as well as other funding received for our Creative Learning and Engagement work.

The Artist Development Fund represents funding received towards the Artist Development Programme. This programme is designed to help build cast and crew skills through training and extra rehearsal time.

Transfers between funds

The transfers between funds consist of:

81

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

18 Funds (continued)

19 Analysis of net assets between funds

Consolidated

Consolidated
At 31 March 2024
Tangible
fixed assets
Other fixed
asset
investment
s
Net current
assets/
(liabilities)
Provisions,
creditors due
after more than
one year and
pension deficit
£’000
£’000
£’000
£’000
Unrestricted funds
-
27,255
3,260
(21,564)
Designated funds
33,877
-
12,474
-
Endowment funds
Paul Hamlyn Endowment Fund
-
6,984
(28)
-
Actors’ Fund
-
5,535
7
-
Catalyst Fund
-
1,711
13
-
Expendable Endowment Fund
-
168
-
-


-
14,398
(8)
-


Restricted funds
Fixed Asset Fund
52,899
-
-
-
TOP Capital Fund
3,000
-
-
-
Costume Workshop Fund
3,284
-
-
-
Swan Wing Capital Fund
154
-
-
-
Theatrical Profession Relief Fund
-
462
(31)
-
Fanny Bradshaw Fund
-
241
69
-
New York Residency Fund
-
-
42
-
ACE Touring Fund
-
-
198
-
Creative Learning and Engagement Fund
-
-
50
-
Arts and Humanities Research Council
Fund
-
-
460
-
59,337
703
788
-
93,214
42,356
16,514
(21,564)		 82
Total
£’000
8,951
46,351
6,956
5,542
1,724
168

14,390

52,899
3,000
3,284
154
431
310
42
198
50
460

60,828

130,520

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued)

(forming part of the accounts)

19 Analysis of net assets between funds (continued)

Consolidated
At 31 March 2023
Tangible
fixed assets
Other fixed
asset
investments
Net current
assets/
(liabilities)
Provisions,
creditors due
after more than
one year and
pension deficit
£’000
£’000
£’000
£’000
Unrestricted funds
8,244
26,365
11,727
(22,771)
Designated funds
8,669
-
480
-
Endowment funds
Paul Hamlyn Endowment Fund
-
6,519
(27)
-
Actors’ Fund
-
5,117
6
-
Catalyst Fund
-
1,582
13
-
Expendable Endowment Fund
-
160
-
-


-
13,378
(8)
-
Restricted funds
Redevelopment Fund
66,777
-
-
-
TOP Capital Fund
5,405
-
-
-
Costume Workshop Fund
4,033
-
-
-
Swan Auditorium Fund
513
-
-
-
Swan Wing Capital Fund
172
-
-
-
Theatrical Profession Relief Fund
-
421
(32)
-
Fanny Bradshaw Fund
-
219
67
-
Literary Writing Programme Fund
-
-
87
-
New York Residency Fund
-
-
87
-
76,900
640
209
-
93,813
40,383
12,408
(22,771)		 Total
£’000
23,565
9,149
6,492
5,123
1,595
160

13,370
66,777
5,405
4,033
513
172
389
286
87
87
77,749

123,833

83

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

19 Analysis of net assets between funds (continued)

Corporation

Corporation
At 31 March 2024
Tangible
fixed assets
Other fixed
asset
investments
Net current
assets/
(liabilities)
Provisions,
creditors due
after more than
one year and
pension deficit
£’000
£’000
£’000
£’000
Unrestricted funds
-
27,588
2,282
(21,564)
Designated funds
33,877
-
12,474
-
Endowment Funds
Paul Hamlyn Endowment Fund
-
6,984
(28)
-
Actors’ Fund
-
5,535
7
-
Catalyst Fund
-
1,711
13
-
Expendable Endowment Fund
-
168
-
-

-
14,398
(8)
-

Restricted funds
Fixed Asset Fund
52,899
-
-
-
TOP Capital Fund
3,000
-
-
-
Costume Workshop Fund
3,284
-
-
-
Swan Wing Capital Fund
154
-
-
-
Theatrical Profession Relief Fund
-
462
(31)
-
Fanny Bradshaw Fund
-
241
69
-
New York Residency Fund
-
-
42
-
ACE Touring Fund
-
-
198
-
Creative Learning and Engagement
Fund
-
-
50
-
Arts and Humanities Research Council
Fund
-
-
460
-

59,337
703
788
-
93,214
42,689
15,536
(21,564)		 Total
£’000
8,306
46,351
6,956
5,542
1,724
168
14,390
52,899
3,000
3,284
154
431
310
42
198
50
460
60,828
129,875

84

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

19 Analysis of net assets between funds (continued)

Corporation

At 31 March 2023
Tangible
fixed assets
Other fixed
asset
investments
Net current
assets/
(liabilities)
Provisions,
creditors due
after more than
one year and
pension deficit
£’000
£’000
£’000
£’000
Unrestricted funds
8,244
26,475
10,779
(22,771)
Designated funds
8,669
-
480
-
Endowment Funds
Paul Hamlyn Endowment Fund
-
6,519
(27)
-
Actors’ Fund
-
5,117
6
-
Catalyst Fund
-
1,582
13
-
Expendable Endowment Fund
-
160
-
-

-
13,378
(8)
-

Restricted funds
Redevelopment Fund
66,777
-
-
-
TOP Capital Fund
5,405
-
-
-
Costume Workshop Fund
4,033
-
-
-
Swan Auditorium Fund
513
-
-
-
Swan Wing Capital Fund
172
-
-
-
Theatrical Profession Relief Fund
-
421
(32)
-
Fanny Bradshaw Fund
-
219
67
-
Literary Writing Programme Fund
-
-
87
-
New York Residency Fund
-
-
87
-

76,900
640
209
-
93,813
40,493
11,460
(22,771)		 Total
£’000
22,727
9,149
6,492
5,123
1,595
160
13,370
66,777
5,405
4,033
513
172
389
286
87
87
77,749
122,995

85

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued)

(forming part of the accounts)

20 Analysis of changes in net debt

20
Analysis of changes in net debt
1 April 2023 Cash flows Non-cash At 31 March
flows 2024
£’000 £’000 £’000 £’000
Cash in hand 4,376 1,590 - 5,966
Notice deposits (less than 3 months) 11,970 (2,065) - 9,905
Total cash and cash equivalents 16,346 (475) - 15,871
Repayable finance from Culture Recovery Fund (20,230) - (405) (20,635)
NESTA Arts and Cultural Impact loan - (600)
 - (600)
Net debt (3,884) (1,075) (405) (5,364)

21 Financial and capital commitments

Consolidated and Corporation

Total commitments under operating leases are payable:

2024 2023
Land and Other Land and Other
buildings buildings
£’000 £’000 £’000 £’000
Within one year 540 48 220 62
In the second to fifth years inclusive 2,065 129 727 74
After five years 2,154 13 682 -
4,759 190 1,629 136

At 31 March 2024, capital expenditure contracted but not provided for was £303,670 (2023: £136,000).

86

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

22 Pensions

Consolidated and Corporation

The Corporation operates three pension schemes; two defined contribution schemes and one defined benefit scheme.

The Corporation also contributes to a defined contribution scheme sponsored by Equity (for actors and stage management) and a defined contribution scheme sponsored by the Musicians’ Union (for musicians). Contributions to these schemes amounted to £330,796 ( 2023: £239,961 ).

Defined contribution schemes

A defined contribution scheme was introduced with effect from 1 April 2003. The Corporation pays contributions at the rate of 6% ( 2023 : 6% ) on earnings up to the Upper Accrual Point (UAP) and 7.5% ( 2023 : 7.5% ) on earnings above the UAP to an insurance company for the benefit of members and such contributions vest immediately. Contributions are invested in a range of funds administered by the insurance company, and such funds are independent to those of the Corporation.

The pension cost charge for the year in respect of the scheme was £461,340 (2023: £450,799 ) . The unpaid contributions outstanding at the year end, included in other creditors (note 14) were £34,935 (2023: £36,261) .

An auto-enrolment compliant defined contribution scheme replaced the 2003 scheme from 2014 for new entrants. The Corporation pays contributions at the rate of 5.4% ( 2023 : 5.4% ) on earnings to an insurance company for the benefit of members and such contributions vest immediately. Members can choose to increase their contributions to benefit from an increased rate of 6% ( 2023 : 6% ) paid by the Corporation. Contributions are invested in a range of funds administered by the insurance company, and such funds are independent to those of the Corporation.

The pension cost charge for the auto-enrolment scheme was £1,475,604 (2023: £1,094,259). The unpaid contributions outstanding at the year end, included in other creditors (note 15) were £76,744 (2023: £99,170).

Defined benefit scheme

The Corporation operates a funded defined benefit pension scheme, the Royal Shakespeare Theatre Pension Scheme, providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the Corporation. Since 1 December 2006, the scheme has been closed to new members and following consultation with members was closed to future accrual on 30 June 2012.

Over the year to 31 March 2024 the Corporation made contributions of £1,140,000 (2023: £Nil) , in line with the independent actuary’s recommendations and it continued to fund all administration costs of the scheme. The Scheme made a discretionary increase in respect of pensions accrued pre-1997 of Nil for the year to March 2024 (2023: 5%).

There was a deficit in the scheme as at 31 March 2024 of £1,016,000 ( 2023: deficit of £2,258,000

2024 2023
£’000 £’000
Fair value of scheme assets 16,680 16,862
Benefit obligation at the end of the year (17,696) (19,120)
Net deficit in scheme (1,016) (2,258)

There were no unpaid contributions outstanding at the year-end (2023: £Nil).

The latest actuarial valuation took place on 31 March 2023 and was updated for FRS 102 purposes to 31 March 2024 by a qualified independent actuary.

87

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

22 Pensions (continued)

The principal actuarial assumptions used are shown below:

Main financial assumptions- Liabilities
Discount rate
Rate of inflation (RPI)
Rate of inflation (CPI)
Rate of increase to pensions in payment
CPI inflation up to a maximum of 5%
CPI Inflation up to a maximum of 2.5%
Mortality assumptions
Assumed life expectancies on retirement at age 65 are:
Males retiring immediately
Females retiring immediately
Males retiring in 20 years’ time
Females retiring in 20 years’ time
Scheme assets
The assets in the Scheme were:
Fixed interest
Cash
Credit and Diversified Private Debt
Fair value of scheme assets
Actual return on assets over the period		 2024
% per
Annum
4.90
3.10
2.70
2.65
2.00
2024
21.7
23.9
23.0
25.5
2024
£’000
6,195
1,458
9.027
16,680

2024
£’000
(432)
 2023
% per
Annum
4.80
3.10
2.70
2.70
2.20
2023
22.2
24.6
23.5
26.0
2023
£’000
7,003
569
9,290
16,862
2023
£’000
(8,447)

A fixed legal charge exists over some of the freehold residential properties owned by the Royal Shakespeare Company (see note 27).

The Scheme does not hold any ordinary shares issued or property owned by the Royal Shakespeare Company.

The assumptions for discount rate and RPI inflation at 31 March 2024 have been estimated with reference to yield curves as these are a close match for the Scheme’s liability cash flows.

88

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

22 Pensions (continued)

The liability at 31 March 2024 of £1,016,000 ( 2023: £2,258,000 ) has been shown on the Balance Sheet.

The amounts recognised in the Statement of Financial Activities are:

Service cost
Net interest
Total Expense
Actuarial gain on liabilities

Return on assets, excluding interest income

Change in effect of the asset ceiling, excluding interest income

Other recognised (gains) / losses
Total amount recognised in the Statement of Financial Activities		 2024
2023
£’000
£’000
-
81
153
-
81
153
(1,430)
(6,549)
1,247
9,116
-
(462)
(183)
2,105
(102)
2,258

Reconciliation of opening and closing balances of the present value of the defined benefit obligations

Benefit obligation at the beginning of the year
Interest cost
Actuarial gain on scheme liabilities *
Net benefits paid out
Past service cost

Benefit obligation at the end of year		 2024
2023
£’000
£’000
(19,120)
(25,690)
(896)
(657)
1,430
6,549
890
831
-
(153)
(17,696)
(19,120)

Reconciliation of opening and closing balances of the fair value of the scheme assets:

Opening fair value of scheme assets
Interest income on scheme assets
Contributions from the employer
Return on assets, excluding interest income
Benefits paid
Fair value of scheme assets at the end of year		 2024
2023
£’000
£’000
16,862
26,140
815
1,140
669
-
(1,247)
(9,116)
(890)
(831)
16,680
16,862

89

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued) (forming part of the accounts)

23 Loans to subsidiary companies and joint ventures

In March 2023, a loan was issued by the Corporation to RSC Estates Limited for £150,000 on normal commercial terms at an interest rate of 6%. The balance outstanding at 31 March 2024 was £150,000 ( 2023: £150,000 ) . The loan was required to enable the subsidiary to make an investment in Arden Hotel Waterside LLP.

RSC Estates Limited issued a loan to Arden Hotel Waterside LLP in March 2023 of £150,000. This loan was on normal commercial terms and interest is charged at 8% per annum. The balance outstanding at 31 March 2024 was £150,000 ( 2023: £150,000 ).

Interest on both loans is paid quarterly in arrears.

24 Transactions with group and related undertakings

Transactions between the Corporation and group and related undertakings during the year and balances outstanding at 31 March 2024 were:

Organisation Name Nature of transaction 2024 2023
£ £
Subsidiary undertakings
RSC Enterprise Limited Rental, utilities recharges and management charges 288,487 201,071
from parent undertaking
Charges to parent undertaking for programmes, (266,690) (744,376)
catering, theatre tours and commissioning fees
Gift Aid 460,732 -
RSC Pre-Productions Limited Commissioning fee (45,403,070) (31,146,690)
Pre-production costs 52,965,492 36,037,834
RSC Touring Limited Commissioning fee 4,540 80,554
Hathaway Productions Limited Show development, marketing, producer fee and 264,816 -
management charges from parent undertaking
Cost recharges and costs relating to set build and 412,848 -
costume hire
Joint ventures
Arden Hotel Waterside LLP Accommodation charges (52,752) (46,937)
Sale of tickets and catering charges 12,261 13,665

All transactions were completed on normal commercial terms and balances outstanding are repayable on demand.

Organisation Name Balance due from Balance due to Balance due from Balance due to
Corporation at Corporation at Corporation at Corporation at
31 March 2024 31 March 2024 31 March 2023 31 March 2023
£ £ £ £
RSC Enterprise Limited - 515,991 - 256,783
RSC Productions Ltd - - - -
RSC Matilda Australasia Ltd - - - -
RSC Pre-Productions Limited
-		 7,078,439 - 6,138,718
RSC Estates Limited - 152,500 - 152,500
RSC Matilda US Limited 9,203 - 6,208 -
RSC Touring Limited - 747,229 - 747,326
Hathaway Productions Limited - 337,227 - -
Arden Hotel Waterside LLP 3,671 1,005 4,208 -

90

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued)

(forming part of the accounts)

25 Transactions with connected persons

It is normal practice for members of the Board, or organisations with which they are connected, to help raise donations or sponsorship for the Corporation. Such receipts can come from members directly or from organisations in which members have controlling interests. No material benefits arise to members as a result of such transactions and they are therefore not detailed below.

The following transactions took place with related parties:

The Shakespeare Birthplace Trust of which Catherine Mallyon has been a council member during the year, invoiced £180,000 in the year (2023: £187,865) for the care of the collection. These were on the Shakespeare Birthplace Trust’s normal commercial terms. The balance owed at the end of the year was £Nil (2023: £Nil). The Shakespeare Birthplace Trust was invoiced £2,125 (2023: £1,875) in the year for provision of actors. The balance owing at the end of the year was £Nil (2023: £Nil).

Andrew Miller is a national council member of Arts Council England. During the year, the Corporation received a National Portfolio Organisation grant of £15,259,706 (2023: £15,259,706) and a touring grant of £512,586 (2023: £Nil).

Society of London Theatre, to which Andrew Miller provided paid consultancy service, invoiced the Corporation £14,604 (2023: £28,586) for items including commission from sale of gift cards, advertisement and membership fees. These were on Society of London Theatre’s normal commercial terms and the balance owed at the end of the year was £Nil (2023: £861).

Andrew Miller worked as a freelance consultant for Paul Hamlyn Foundation between April 2022 and March 2023. During the year ending 31 March 2024, the Corporation received a grant of £159,515 (2023: £126,751) for a research project in Learning and National Partnership. The balance owing at the year end was £Nil (2023: £Nil).

Clare Reddington has been a Trustee of Wise Children Limited since 2018, which invoiced the Corporation for production work undertaken during the year for £33,515 (2023: £Nil). The balance owed at the end of the year was £Nil (2023: £Nil). During the year, the Corporation also invoiced Wise Children Limited for rent for £772 (2023: £Nil). These were on Wise Children Limited’s normal commercial terms. The balance owing at the end of the year was £772 (2023: £Nil).

Intermission Youth, of which Amanda Parker is also a Trustee, has been working with the Learning and National Partnerships team at the RSC during the year as a Theatre partner. During the year the Corporation paid a total of £10,353 (2023: £16,180) for their services. These were on Intermission Youth’s normal commercial terms. The balance owed at the end of the year was £10,000 (2023: £Nil).

Winsome Pinnock has been a Trustee of The English Stage Company Limited since 2020. During the year the Corporation was invoiced £613 (2023: £Nil) for theatre tickets. The Corporation also paid £489 (2023: £Nil) to its subsidiary for catering services. These were on The English Stage Company’s normal commercial terms. The balance owed at the end of the year was £Nil (2023: £Nil).

Ayanna Thompson works with Arizona State University as a Regents Professor of English. During the year, the Corporation invoiced the university a total of £Nil (2023: £435) . The balance owed at the year end was £Nil (2023: £Nil). A subsidiary of the corporation also received a payment of £Nil (2023: £100) for the use of an image. This transaction was on Arizona State University’s normal commercial terms and the balance owed at the end of the year was £Nil (2023: £Nil).

Griselda Yorke is a trustee for Improbable, which provided creative and logistical support with production of “My Neighbour Totoro”. The Corporation paid a total of £6,918 (2023: £30,000) for their services during the year. The balance owed at the end of the year was £Nil (2023: £Nil) . Griselda Yorke is also a board member for Society of London Theatre.

During the year, Tamara Harvey and Catherine Mallyon used RSC freehold property in Stratford Upon Avon rent-free, creating a taxable benefit in kind. See note 6 for further details. A payment was also made to Catherine Mallyon under an obligations and settlement agreement. See note 6 for further details.

A proportion of the indemnity insurance equating to £6,490 (2023: £6,490) covers Board members. The Charity Commission has indicated its approval of this arrangement.

91

The Royal Shakespeare Company Stratford-upon-Avon Report and Annual financial statements Year ended 31 March 2024

Notes (continued)

(forming part of the accounts)

26 VAT Group Liability

The Corporation entered into a group arrangement for Value Added Tax (VAT) on 1 January 2015 with RSC Pre-Productions Limited and RSC Enterprise Limited, the representative member of the group being The Royal Shakespeare Company. All members of the group are jointly and severally liable for the tax due from the representative member. The VAT liability of the other members of the group that were not recognised in the Corporation’s own balance sheet as at 31 March 2024 was £174,043 (2023: liability of £87,895).

27 Legal Charges

A fixed legal charge dated 30 November 2006 exists over The Royal Shakespeare Theatre, The Other Place, 3 Chapel Lane and Avonbank Paddocks in Stratford-upon-Avon in accordance with the terms of grant funding for the redevelopment of the Royal Shakespeare Theatre from Arts Council England. The charge expires on 29 November 2026 and the value at the year-end was £52,899,025. (2023: £52,899,025).

A further fixed legal charge dated 24 June 2015 has been granted over the freehold land and buildings of The Other Place, which was redeveloped during 2016 in accordance with the terms of grant funding for the capital project from Arts Council England. The charge expires on 24 June 2035. At the balance sheet date, the value of the grant approved and drawn down was £3,000,000. (2023: £3,000,000).

A full title guarantee dated 19 June 2014 exists over the Royal Shakespeare Theatre as a continuing security for the payment or discharge of any secured obligations under the grant contract issued by the National Heritage Memorial Fund in respect of the development of the Swan Wing of the theatre. At the balance sheet date, the value of grant approved and draw down was £2,849,200. (2023: £2,849,200).

A fixed legal charge dated 15 November 2010 exists over some of the other freehold residential properties in accordance with the terms of an agreement with the Trustees of the defined benefit pension scheme. At the balance sheet date, the value of this charge was £6,845,000 (2023: £6,845,000).

A full title guarantee dated 31 January 2019 exists over the freehold land and buildings of 38/39 Waterside as a continuing security for the payment or discharge of any secured obligations under the grant contract issued by the National Heritage Memorial Fund in respect of the re-development of the Costume Workshop. At the balance sheet date, the value of grant approved was £950,000 and payments of £1,137,125 (2023: £1,137,125) had been made to the RSC.

A further fixed legal charge dated 31 January 2019 has been granted over the freehold land and buildings of 38/39 Waterside in accordance with the terms of grant funding for the capital project from Arts Council England. The charge expires on 31 January 2039. At the balance sheet date, the value of the grant approved was £2,146,800 and payments of £2,146,800 (2023: £2,146,800) had been made to the RSC .

92