2023-03-31-accounts - Colchester Mercury Theatre Limited

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Contents		Pages
Trustees Annual Report		1 to14
Independent Auditors	Report	15to18
Statement of Financial	Activities	19
Balance Sheet		20
Statement of Cash Flows		21
Notes to the Financial	Statements	22 to 33

Reference	and Administration	details.
Charity Number		232387
Company	Number	441035
Registered	a Principal Office	Mercury Theatre
		Balkerne Gate
		Colchester
		Essex
		CO1 1PT
Auditors		Griffin Chapman
		485The Cedars, Apex 12
		Old Ipswich Rd
		Colchester
		CO7 7QR
Bankers		Barclays Bank PLC
		9 High Street
		Colchester
		Essex
		CO1 1DD
Trustees		Robert West
		Linda Barton
		Jennifer Skingsley
		Anita Thornberry
		Samantha Blackwell-Heard
		Hassina Khan	(resigned 5 December 2023)
		Matthew Linley
		Sean Plummer
		Dominic Collins
		Lorna Fox O'Mahony
		Mark Hoult-Allen
		Marianne Hahn
		Helena Oxley	(appointed	6 December 2022)
		Oliver Brown	(appointed	6 December 2022)
		Julia Stephen	(appointed	6June 2023)
		Rodney Appleyard	(appointed	6June 2023)
		Peter Fremlin	(appointed	5 December 2023)
		Matthew Brindley	(appointed	5December 2023)
		Bryan Johnston	(resigned	13May 2022)

					Restricted
					I.erge
		Unrestricted	Funds	Restristed	Capital	Total Funds	Total Funds
	Note	Operational	Designated	Funds	Funds	2023	2022
INCOINE FROfifi:		2	2	2		2	2
Donations and legacies		1,158,360		333,231	40,000	1,531,591	1,803,665
Other trading activities		718.607				718,607	452,317
Investment income		2.836				2,836	218
Charitable Aotlvsles
Operation ofthe theatre		2,656,753				2,656,753	1,514,351
TOTAL INCOME		4,536,556		333,231	40,000	4,909,787	3,770,551
EXPENDITURE ON:
Raising funds		611,454				611,454	450,153
Charitable Activities		4,137,288	134476	324,310	81,247	4,677,162	3,725,307
TOTAL EXPENDITURE		4,748743	134S16	324 10	81 247	5,288,016	4,175,460
NET (EXPENDITURE)8NCOME		( 212,187)	( 134,316)	8,921	( 41,247)	( 378,829)	( 404,900)
Other Recognised Gains - Theatre Tax Credit		369,026				369,026	223,823
Transfers Between Funds	20	( 15,000)	15,000
Net Movement in Funds		141,839	( 119,316)	8,921	( 41,247)	( 9,803)	( 181,086)
Funds bN		332,186	831,300	49,766	67,311	1,280,572	1,461,858
Funds c/f		474,025	711,993	58,687	26,064	1,270,769	1,280,572

										Note	2023		2022
											2		2
	Net cash inflow fram operating			activities							(443,022)		265,483
	Cash flows from investing	capital:
	Interest received										2,836		218
	Purchase of property, plant		and equipment			and intangible		assets			(4,450)		(174,510)
	Net cash used in investing	activities									(444,636)		91,191
	Cash flows from financing:
	Repayments of loans										(94,763)		(53,345)
	Net cash inflow from financing			activities							(94,763)		(53,345)
	Change in cash and cash	equivalents			in the	reporting	period				(539,399)		37,846
	Cash and cash equivalents	at		the beginning		of the year					1,610,881		1,573,035
	Cash and cash equivalents	at		the end	ofthe	year					1,071,482		1,610,881
	Notes to the cash flow statement
i)	Reconciliation ofchanges	in	resources		to net inflow from operating				activites
	Net income										(9,803)		(181,086)
	Depreciation										121,157		184,036
	Loss on disposal ofassets
	Amortisation										6,870		6,870
	(Increase)/decrease in debtors										(309,037)		(451,192)
	(Increase)/decrease in stock										(13,664)		(16,425)
	Bank interest receivable										(2,836)		(218)
	(Decrease)/increase in creditors										(235,709)		723,498
	Net cashflow from operating		activities								(443,022)		265,483
ii)	Analysis of changes in net	debt							At	1 April	Cashflowe	Other non-	At 31 March
										2022		cash changes	2023
										2	2	2	2
	Cash and cash equivalents
	Cash in-hand									1,610,881	( 539,399)		1,071,482
	Bcrrowings
	Debt due within one year									( 96,978)			( 96,978)
	Debt due aver one year									( 218,337)	94,763		123,574
										1,295,566	( 444,636)		850,930

I)	Accourltrhg Policies
	Conrpl ny Stall s
	colchesler Mercury Theatre Limned isa private company gmitsd by shares (company no 441038)and mgislered mh 3echa xy commission	(rag istrauon		no 232387k 8				is	registered			In
	Enghnd and Wales and ri's registered csee w Mercury Theatre, Balkerne Gale, Cohhesler, Essex, COI IpT.
e)	Seele Ol Aoouuntlng
	The b a ual stateumms have been prepared under the historbal cost convengon and ln acconhnce with lhe Financial Repomng standard app feeble		the UK and				Republic			of Ireland (FRs
	I02).
	The company n a publm bench entitir forthe purposes ofFRS102and s registered charfiy and Ihemfom has also p epamd ils finanuel statements m accordance					wfih the			Statement			of
	Recommended practice spplmsble to charsies preparing theirammunls In eccordencethe FinancialReporfing standard applcable Ihe UK and Rspublc SCAPI. the Comoanms Act2008snd Charfbes Act2011.		of Ireland				(The	FRS102			Charities
	The llnanciai statements are prepared m sterling whbh is the functional currency ol Ihe company. Monetary amounts In these financial statements hove been rounded						to the			nearest		pound.
8)	Gobbl Concern
	The tlnancial statemerlts are prepared ort a gorng concern basis which assumes that Ihe charilabh gmup will congnue In operational existence	for the loreseeable			future.			Each ofthe				major
	funding bodies - Arts Counol England East and Colchesler City Council - have indicated that Iheir support ofthe Iheatre mfi continue until al least 31st March 2023. However, Arts Coun el England have indicated their support to31stMarsh 2028 In the Natonal Porlfolio Organisation agreement wbh the theatre and Cobhsster City Council have Indicated their support to 2023/24 in
	Ihe current funding arrangement and then for a further 4years under a new fundrng seklement. Essex County Council have indicated their support until 2024f25.
	whilst the severily ofthe International pandemic and dckdowws had passed il confinued lo have an impact on our work during the year. Audiences were			slow to	regain thor					contkl ence and
	return to mme asperts ofour programme. This, ahng wrih the current cost ef lrvrng crow, and steep rise in utilfiy costs have created deeply challenging		trading condibons					for		the Mercufr.
	Having reviewed the assets available to tile charity and its expected future funding arrangements, ofwhich fit,fififik mentioned above being the congrmed			revenue		funding			due from		Arts
	council England, cobhester city council and Essex county council has been secured atthe dale of apprmral ofIhese financial statements, Ihe Trustees			haves	reasonable					expectmon			that
	the ebs rby and group have adequate resources to contirlue in operational existence forthe foreseeable future and not less than twelve months	from the date ot approval of							these finanaal
	statemenw. This is subject la the unprecedented issues caused by covrd-I!tend the current cost sf living crbis. Thus the going concern basis	has been	adapted		in prepariys					these	gnanclal
	slatemenls for the year ended 31stMamh 2023.
c)	Consolkhfion
	The SOFA and Balance Sheet consoidate the inannal statements of the charitable company and its subsidiary undertakings. The results ofthe subsid ance are				consolidated					on a	lne by			line
	basis. The charitable company has taken ad anlage ofthe exemption trom presenting ils unconsolidated income and expenditure account available under section					408 of		the		Companies				Act
	2008.
d)	Income
	Donatmns - Comprbes ak income from donagons, subscnptmns and grants, induding government grants. Itis recognned on a race vable basis in the appropriate				fund when					there	~s
	entrilement tothe income, probabifily of receipt and the amount can be reliably measured.
	other trading amlvses -comprises income from trading associated with attend ng the theatre, royalties, htting ofthe restaurant, bar and other	areas and		rs recognised on				a receivable basis.
	Income from Charitable Activities - Comprises ticket ncome from performs rlces and activfiles atthe theatre and other vsnues as appropriate, house and studo all ofwhich ars recognised on a receivable basis BoxoÃce income b recogneed rvhen productions take plamr.	income for		community			proiects			and hire		of mein
	Investmerrt Irmome -Comprises nterest recerved held in appropriate Interest bearing accounts. Ag interest race)red is credited to ope athnal	funds and	o recogrrsed				on	a	receivable			basis.
	Government grants -where Ihe charity receives government grants, 4recognisse this as rncome only where there is reasonabkr assurance that the chanty			will comply			with	the combtrons
	agaching to them and the grants unll be received. This mdudes grants race md imm Arts Crmnol England as they are an executwe non departmental public body
	support
e)	ExpendNure
	The coals ofacb dws for raising funds represents Ihe direct cost oftrading associated wkh afiondmg the theatre, royakies and othe neome logether mth			akoceled		support			costs and			the	direct
	costs assocmtsd wrlh secunng donations, subscnptrons and grants and other income togelher vkh allocated suppon Owl's
	The costs relating lo charitable activities rests to direct expendtture on perhrmances and acuvifiss al the theatre and other venues as appropnale. It also includes					costs relaling lo					community
	projems and audilonum and studm hire together with allocated support costs.
	Governance costs represents direct expenditure of Board acbvlhs together mth allocated support costs.
	support cosh relating to a single activity are allocated diromly to that acthrxy. where cost relate to more Ihan one activity Ihey have been allocated on the					base ot staN time						and
	resources consumed bv each activitv.
	Afi expenditure is accounted for on an accrual basis and is recogn sed when there isa legal or constructive obligation to pay.
	Provision has been made Murre appropriat, for relevant expenses and liabilibss where a present obggation Iwisls at the balance sheet date.
tl	Produmlons
	I) For producoons occurring who ly within one frnanual year box office and venue fees are recognised in Ihat year and costs are recognised as incurred.			Typically	costs are incurred							in advance
	of revenue being generated.
	2)where a production spans the years nd and is expecled to be loss making, Ihe expemed loss Lv recognised n lull in the year m which the loss fsforeseen.
	3) where production set up casts have bean incurmd prior to the year-end but the produmhn has not yet opened. the set up costs are carried	fonmrd at		the bahnce			sheet		date as		deferred
	producbon costs ungl such time as the production opens.
g)	Pehslorrs The company oflered a voluntary stakeholders scheme to fis employees and those on short term equity cormacts and also operates adefined	contributon		pension		scheme			which meals				the
	Govemmenfs requirements under auta enrolment . Ths company contribution costs are Included in Ihe Statement of Financial Activities as they fall due.
h)	Operating lease commitments
	Rentals payable under operagng leases are charged against expenditure as incurred over the hase larm.
I)	Intangible assets
	Intangible assets comprise the cost ofa licence enabling the premises tobs used lo hold wedding ceremonies and a new website and snance	package.		Intangible		fixed assets are					recognised
	at cost and are subsequently measured atcost less accumulated amortisation and accumulahd impairment losses as loIowa
	Ltmnros 10/ Straght line
	Website I0%Straight line
	Computer software I0%Straight line

I)	Acrounffng polhoies conlinued
0	csp lslieseon of lixed assels
	Fixed assets are shown on Ihe balance sheet at histo cal costkss		deprecisson. Fked assets costing more				than	35ge are	capilatsed		at cost.
	Deprecfaeon
	Dspreciatmn iscalculaled soas to write offthe cost of an asset, less ss estimated residual value, over the				usekrl economic				se ofthat asset as follows:
	Thealre Equlpmsnt		15%Straight Line
	Capital Grant		15to33.33%,Straight Line
	Molor vehldss		15to33.33k,Straight Line
	Fixed sssels are subject to an annual impairment review and	review	ofestimated useful life.
	Studio Development
	costs incurred relating to Ihe development and refurbishment	sfthe	Studio Theatre have been	capitalised.			These	are now	depreciated		in ins	with	the	company's			depredation				potcy	of 15%
	slraigat line es the studa has been brought Into use.
	Large Capital Development Costs incurred rest ng to the large capital development and	refurbishment ofthe Theatre have		been capitalised. These will be depreciated once the developmenl														is complete.
	Wilhrn Ihe large capital de elopment, costs have been incurred relating to the refurbishment of			temporary	offue mmmmodsgon.					These ere being			depreciated			in	I	ne mth	Ihe		company's
	deprecation policy of15%straight Ine as Ihe offue accommodation		has been brought into use.
k)	Slacks
	Stocks ofmerchandise and other goods for resale are valued	at Ihe	lower uf cost and net realisable value,			aller mak ng due allowance					for obsolete and slow				moving items.
0	Foreign Currencies
	Assels end liabilities in foreign currenoes are translated into	sterling	at the rates of exchange ruling atthe		balance			sheet dale. Transamlons in foreign						currencies			a	e translated			into sterling at
	the rale olexchange mling at Ihe date of Ihe transaction. Exchange		differences are taken inta account in		amving			at the opersling		prefx
m)	Fund Accouneng
	The charily has various lypes offunds for whuh 3 is responsible, and which require separate disclosure.
	These are as follows:
	Restricted Funds -These are earmarked by the donor, or the terms ofsn appeal, for specific purposes within the overall aims of									Ihe organisation			The don ebon				and inmme				denvlng	therefrom
	wll be used in accordance wkh the specac purposes.
	Unrestricted operational Funds - Funds which are expendable at		Ihe discreffon ofthe Board	In furtherance			ofthe objects		ofthe	chanty.
	Unrestricted Designated Funds - The Board may at its discteton set aside unresymted funds			forspenfic		puqmses.
n)	Financial Instruments
	Cash and cash equivalents
	Cmh and cash equivalents include cash at bank and In hand and short term deposits with a matuiily date				ofthree			monlhs or less.
	Debtors ahd creditors
	Debtors and creditors receivable or paysbls within one year	ofIhe reporting date are carried initially at Iheir				Iransaction price and subsequently						at	seltlement		value.			Debtors		and creditors that
	are receivable or payabb in more than one year snd not subject lo		a mamet rale ol inleresl are	measured		at Ihe present value uf the expected future								receipa		or	payment		discounted			ai	a
	market rate of interest.
2)	Critical accounting estimates and areas ofjudgement In Ihe view ofthe Irusteas in apply ng the accounting policies	adopted, no iudgements were requ red Ihat have asonecant							effect on the amounts				recognised			in Ihe fina no			sf	statements			nor do
	any eslim ales or assumptions made carry a sign fuant nsk of material adjuslment in Ihe next finaruial year.
	Useful economic gves
	The annual depreciation charge for tangible and intangible	feted assels is sensitive to changes in the esbmaled						useful econoniic lives and				resdusl		values		of the assets. The useful economic
	lives, amorlisation and readual values are remssessed annually.		They are amended when	necessary	to resect currenl				esgmates		based	on technological				advancement,					future	investmem,
	~eonomic utilisabon, and the physical condhion of the assets. Note 13and 14gives the canying amount						of Ihe	relevant	assets	and	Note Ii details			the useful			economic			life for each			class of
	asset.

6)	Principal Subsldiarim	Principal Subsldiarim	Principal Subsldiarim
	The following are subsidiary			undertakings			ofthe Company.
							Company	Registered	ofsce or	principal		place
	Name						Number	ot business						Principal	scgvhy
								Mercury Theatre, Balkerne			Gate,			ProviYion	of	bar	and catering fadlities		at Colchesler	Mercury
	Colchsslar	Memoir	Trading	Ltd			9144550	Colchssler,	COI IPT					and other commemial				trading activities
	Class atShares				Holding			Includedin	consogdason
	Ordinary				100M			yss
								Mercury Theatre, Balksrne			Gate,
	Colchesler	Memory	Productions		Lid		9144431	Coehesier,	COI IPT					Pmvison	of	the	route	for commeroal	produeicns
	Class al Shams				Holding			Includedin	consogdseon
	Ordinary				100'4			yes
	The snanclal resuca		ol Ihe subsidianes			for	Ihe year were:
														Proflugoss		)lor Ihe
	Name						Incomef			Expenditure			2	year		2			Net assets		3
	Colchesler	Mercury	Trading	Ltd			772,888					635.813				137,070
	Colchester	Mercury	Productions		Lid		2,464243				2,095,217					389,028					369,126
7)	Investmenl	Incame													2023				2022
															2					2
	Bank Interest receivable																				218
8)	Coals ofgenerating		funds												m23				2022
																				2
	BarI Front	ofHouse wats														578are					40e.523
	Commercial	work coals															SSET				7,720
	Support mats )note		10)													ef	Ir454				33,905 450,153
	f611,454 relates to		vnrsstncled		funds	(20222450153)

11)Governance Coals								2023	2022
								R	R
Salaries								6,394	5,955
Board expenses								195	766
Auditfees-currerrlyear								12,205	18,565
-tax compliance								18,784	2360 27,866
12)stan costs and diremor'e		remuneration						2023
								R
Salaries and wages								2,MS,303	1,608,969
Employers NIC								140,'752	106,875
Pension costs									22,294
								2,289,536	1,738,138
These costs are induded as follows									E
Costofgene sing funds								267,063	195,704
Costs of Ihe operation	of the theatre:
Perriiaiieht staff costs								I,SI4,368	1,2R7.888
Theatre madumion	costs							45S,09S	290,080
Support costs Governance								23,667	18.536 5,055
								2,269,590	1,738,138
ol permanent staff costs, 70 related			toexpenditure		from restncted	reserve	(2022:217905)
The average number	of permanent		employees	during the year, calculated			on the basis of headcount,	2023	2022
								No.	No.
A II								95	85

Funds continued	Funds continued
Funds -	Company					satanas al			Expenditure	Transfers	Balance at
						01.04ag					31.03.23
						2	2			2	2
Gpslsaallul						100,260	6v!I0203		(6,206,792)	( Isaeg)	104,900
Deulghulml						ml ae9			( I34310)	152ma	711,903
Total Unrestricted						039,577	Sat0,403		S,341,100		816,061
Restricted						117,077		373,231	(aogasy)		04,751
Total All	Funds					1,050,054	Asst, yet		( fh740A00)		601,712
All Group	Designated	anti Reetrhled		Reserves minie tothe Company.
						Restrlcled
Split ofsenate and liabilities			between		funds -Group	snide	Unrestricted	funds	Share Cspesl	Total
						2	2			8
Inlenoble	axed assets							33,196		33,196
Tnrrgrbln	cued sale!le							435,778		435,778
Gunentassets						84,751	2,100,379		20	2,185,150
Creditors	due in ons year						(1,259,761)			(1,259,761)
Creditors	due over one year						(	123,574)		( 123,574)
Total						84,751	1,186,018		20	1,270,709
						Restricted
Split ofassets and liabilities			between		funds - Company	ftrhds	Unreslricted	tunds	ShareCapilal	Total
						2	2			2
Intangible	lixed assets							32,080		32,606
Tangible	lixed asselx							435,778		435,778
Inveetmenls								200		200
culmmssssw						64,751	1,400,370		20	'l,545,140
Creditors	due in one year						(	988,507)		( 980,507)
Gredmrs	due over one year						(	i23,574)		( I23,574)
Total						84,751		010901	20	001732

								2022
	Calchester Chy Council Rob West							3 3
	Bom Johnston							2
	Jenny Skingsley Anita Thornberry Samanlha Blackwall-Heard							2 2 2
	Hassina Khan							2
	Malnsw Linley Sean Plummer							2 2
	Dominic Collins							0
	Lorna Fax O'Mahony							0
	Mark Hoult-Aeeri							0
	Marianne Hahn							0
	The losounng trustee ls acouncecr ofcolchaster city council:
	Lyn Badon
22)	Share Capsal					2023		2022
						2		2
	Sham Capital					20		20
	Aulharised share capital in both years was 20 r\ ordinary shares.
	The issued and fully paid share capcal iri both years was 22tl.
23)	Financial Comrn0ments
	At 31 March 2023 the charily was committed	to making the following	payments	under non-cancelable	operating bases:
						2023		2022
						r.		2
	Other
	Commitments falling due:
	In less than one year						22,789		9,000
	Between two and five years
							22,769		9,000