Registere(J number.. 441035 Charily number.. 232387 COLCHESTER MERCURY THEATRE LIMITED TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 COLCHESTER MERCURY THEATRE LIMITED CONTENTS Page Reference and administrative details of the Company, its Trustees and advisers Trustees, report Independent audltor's report on the flnanelal statements Consolldated statement of flnanclal activities 2-14 15- 18 Consolidated balance sheet 20-21 Company balance sheet Consolidated stalement of cash flows 22-23 24 Note$ to the flnancial statements 25-56 COLCHESTER MERCURY THEATRE LIMITED REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024 Trustees Robert Wesl, Chair Linda Barton (resigned 4 June 20241 Jennifer Skingsley (resigned 5 March 20241 Anita Thornberry Samantha Blackwell-Heard (resigned 24 January 20241 Hassina Khan Iresigned 5 December 20231 Matthew Linley Sean Plummer Dominic Collins Lorna Fox O'mahony Mark Houll-Allgn Marianne Hahn Helena Oxley Oliver Brown Rodney Appleyard lappoinled 6 June 20231 JLJlia Stephen lappoinled 6 June 20231 Peter Fremlin lappoinled 5 December 20231 Matthew Brindley lappoinled 5 December 20231 Timothy Young lappoinled 4 June 20241 Company reglstered number 441035 Charlty registered number 232387 Regl$tered offlce The Mereury Theatre Balkerne Gale Colehesler Essex C01 1PT Company $e¢retary Hazel Skayman Chlef executlve offl¢er Steve Mannix Independent auditor Grillin Chapman Chartered Accounlanls 4 & 5 The Cedars Apex 12 Old Ipswich Road Colchesler Essex C07 7QR Bankers Barclays Bank 9 High Street Colchesler Essex C01 IDD Page 1 COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Trustees present their annual report together with the audited financial slalemenls of the Company lor the year 1 April 2023 10 31 March 2024. The Annual report serves thè purposes ol both a Trustees, report and a directors. report under company law. The Trustees confirm that the Annual report and financial statements ol the charitable company comply with the current slalulory requirements, the requirements ol the charitable companys governing document and the provisions of the Slatefflenl ol Rècommended Practic8 ISORPI applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS1021 lefleclive 1 January 20191. Since the group and the Company qualify as small under section 383 01 the Companies Act 2006, the Group strategic report required ol medium and large companiès under the Companies Act 2006 Islralegic Report and Directors. Report) Regulations 2013 has been omilled. Objectives and activities Policles and objectives The primary object lor which the company is established, as shown in our governing documents, is lo lormulale and prepare schemes lor and lake all necessary steps lor the advancement ol education and the improvement of public taste through the medium of arts, and in particular the arts ol drama, dancing, singing and music. Our vision is ol the Mercury as a theatre that touches the lives of all the people ol Colchesler and its surrounding area, conlribules regionally lo the development ol new lalenl and new audiences, and carves out a truly national reputation for the quality ol the work that il makes. Those objects are further summarised in our mission slalemenl.. "The Mercury exists lo pul theatre al the heart of the cultural life ol the community it serves and to make work in Colchester that reaches audiences and generates critical attention regionally and nationally." During the year the Executive Team consisting ol the Executive Director and Executive Producer were joint Chief Executives and were appointed by the trtjslees to manage day lo day operations and lo implement the strategies laid down by the board. From 1 April 2024 the Executive Director is the sole Chief Executive. Strategic Aims To bLJild a reputation lor the quality and innovation ol our programme. To grow and diversify our audience base lor that programme. To exploit the touring and commercial potential of the work we make. To create exceptional visitor experiences. To re¢rLJiI and relain the most talented team ol stall and volunteers. To diversify income streams / build financial resilience. Our strategic aims are monitored throughout the year by a variety of methods including.. Internal and externally commissioned evaluation methods Audience surveys following each performance or event seeking feedback on both artistic quality, facilities and customer service Audience loeLJS groups las required) Measurement of audience data, feedback and attendance against rogional and national trends Regular Board and stall conferences throughout the year Page 2 COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Objectlves and activities {continuedl Whilst upholding these aims il remains the role ol the board to.. Maintain a policy ol inclusiven8ss and diversity. Ensure responsible financial control which is prudent and sustainable. Support the striving lor excellence and high quality in all in which the theatre is involved. In shaping our objectives and planning our activities the trustees have considered the Charity Commission's guidance on public benefit, including guidance on public benefit and lee charging. The theatre relies on grants and income from lickels, lees, other income and secondary trading lo cover ils operating costs. In setting the level lor lickel prices, concessions and fees, the Iruslees consider the accessibility of the Ihèalre and ils community activities lo those on low incomes. The theatre ollers a range of concessions over the mix ol rts activities including over 65, under 26, access and job seekers. The company aims lo benefit the community as a whole. In addition 10 an extensive annual programme ol home productions, co-productions and visiting companies the theatre has a eommilmÈnl lo developing an audience through activities in and for the comniunily. We are also committed lo young people's and community development through an active Creative Engagement programme which provides extensive workshops and projects lor schools, colleges and Ihe wider public. The Mercury also provides facilities for a large number ol local amateur and communily groups. Our extensive annual programme covers our own in house produced work, a pantomime and a mix ol co- Produced and visiting drama log8lher with visiting live entertainment events across a wide range ol genres. This programme ulilises both the main auditorium and studio lacililies. In addition, each year our objectivè is to invest in, and engage in, activities and projects that develop our artistic poliey through engaging with hard-lo- reach audiences and support for new and emerging artists al the start ol their Career. These activities can be al the theatre or al other locations. (See A¢hievemenls and Pertormance below lor activities undertaken lo contribute lo these aims and objeclivesl. In setting objectives and planning lor aclivilies, the Trustees have given due Consideration to general guidance published by the Gharily Commission relating lo public bengfil, including the guidance 'Publi¢ benefit.. running a charity IPB21'. Page 3 COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT (CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 Achievements and performance a. Review of acllvlties Al the start ol the year, the Mercury, along with many other arts and cultural organisalions across the UK, laced not only the challenge of re-building audience confidence post pandemic, bul the severe impact on their leisure spend due to the cost ol living crisis. Ai the same lime the organisation experienced historic increases in overheads Iparticularly ulililies, stock purchases, materials and wages). Our Board and Executive Team had no option but lo take the decision lo reduce our own produced work by one main house show during the period lo meet these costs. However, we are very pleased lo report that as the year progressed audiences did finally return lo pre-pandemic levels and we achieved 860/0 capacity in our Main House and 530/. lor the mainly new work in our studio. We remain eternally grateful lor Ihe loyal support of all our audiences. Whilst these are challenging limgs, we have been able lo further consolidate our operations and se& the immediate benefits ol our new business plan. Our earned income reached record levels Ilo over 80/0 ol our turnover). This assisted us lo miligale sland-slill public sector investment, rising costs and the increasingly competitive market lor fundraising. However, against this background we remain commilled lo retaining a range of lickel prices lor our audiences with accessible pricing lor each performance. The health and well-being ol our audiences, staff, artists and creatives remained a priority lor us during the year. We Continued our range ol Covid safely measures as well as the ability for our audience members lo exchange tickets if they or their family or friends were unwell. We further sought lo oller as much support as possible lo our stall, artists and creatives. We retained our Hardship Fund lo oller one-off grant payments lo help meet any unforeseen costs because of the Cosl-ol-Living Crisis. This was accompanied by our on-going confidential Employee Support Line, trained Mental Health First Aiders and an organisalion-wide stall well-being committee. During the year we employed 116 staff - the largest workforce that the Mercury has ever had in ils history. In addition, we engaged 362 freelance actors and creatives lo produce our Mercury Productions and lacililale our Creative Engagement Programme. We relain our ambitions lo become a Living Wage Ernployer in Ihg next lew years once the wider economic conditions allow. The benefits ol our new building continued to offer our artists, audiences, stall and users a sale, comfortable, welcoming and accessible environment lo see and lo create work. During the year we experienced prgssurg on available space lo support our own work and that of our community partners. Towards the end ol the year we were grateful lo the South East Local Enterprise Partnership and Arts Council England lor confirming additional capital funding of £848,000. This will enable us to build an extension of three new rehearsallmeelings rooms and lo complete the lull conversion of our stage lighting lo LED, reducing our carbon loolprint. In addition, we will install digital equipment to enable us lo live stream from our stages and rehearsal spaces therefore making our work more accessible. This capital work will take place in late summerlaulumn 2024. In 2023124. We remain forever grateful lo the hard work and dedication ol our stall team. During the year we were able lo embed our new business model creating record breaking levels of earned income, increase the number ol artists we supported, increase the level ol our programming and ensure the smooth and ellicienl operation ol our Further highlights included our co-produclion ol Unbelievable transferring to the Wesl-End the first lime in Page 4 COLCHESTER MERCURY THEATRE LIMITED TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Achievements and pertormance {continued) history that the Mercury has gained this national profile. In addition, we were recognised as a Theatre ol Sanctuary lor our work with migrants and asylum seekers lone ol only 16 Ihealres in the UK lo gain this slalusl. We were overwhelmed lo secure additional investment lo expand our Mercury Young Company activities across Essex with the support ol the National Lollery Community Fund. We also secured additional investment lor the re-launch ol Mercury Creatives from Arts Council England, Essex Counly Council and Tendring District Council. We are proud to have secured more than £600,000 ol new investment lo support the local artists and creatives ol the future over the next threè years. Our programme was further acknowledged through several awards. Firstly, in partnership with Northern Stage in Newcastle, we won the national award from the Royal Theatrical Support Trust lo support an emerging director in a new production. The show will be produced next year. In addition. we were nominated by the Stage Newspaper with an Innovation Award lor our work with neuro-diverse artists. As an organisalion we continue our commitment lo reducing our carbon loolprinl across all aspects ol our work. During the year our building gained BREEAM VERY GOOD slalus lor our environmental measures. We are proud that we are now in the top 250/0 of Sustainable public buildings in the UK. In addition, the Mercury has lully adopted the Green Book industry standards across our produced work and operations lo enable us lo become as sustainable as possible. Rea¢h and Engagement We are pleased lo report that our Creative Engagement programrne continued both al the Mercury and throughout Colchesler and Essex. Over 22,000 children, young people and adults look part across 953 sessions. Sleeping Beauty, our panlo this year again broke all box ollice records achieving 980/0 capacity. During 2023124 we were able lo oller the following range of work.. Mercury Productions - Great Expectations, Unbelievable, The Importance ol Being Earnosl Mercury Go-Produclions- The Inslrumenlals and l Really Do Think This Will Change Your Life Creative Engagement Programme ol classes and workshops lor adulls, children and young people Maslerclasses and training events Artist Networking Events Play Readings Year-round programme in our studio supporting local artists lo present their work and visiting national small-scale touring LATES- a free programme ol work in our barlealé- including Cocktail Cabaret ILGBT monthly cabaret nighll, events lo support Black History Month, World Aids Day, International Women's Day and other cabaret, community and spoken word evenings. We have been delighted with the continued positive feedback from audiences and users about our building and all ils lacililies. We continue lo gain 4.7" out 015. in all surveys. Number of Shows.. Audience Allendance.. National Touring ProdLJclions Touring Performances Audience Allendance None lickeled events None lickeled allendees Number of Access Performances 457 113,667 617 162,686 65 22,100 17 Page 5 COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Achievem9nts and pèrlormance (continued) Senior Matinees Attendance 75 27,426 Participation and Engagement Activities Creative Engagement Sessions 953 Participants 22,041 Young Company Members 290 Talent Development Number ol Artists Supported 958 Sharings 13 Research and Development PlaywrighlslProducerslDireclors 24 Workshops labovel 36 Other projects continued lo be developed including.. The Mercury Teachers, Network continued to provide invaluable support and advice for our work in schools in Colchesler and across Essex. The Mercury entered the final year ol being the secretarial lor the Local Cultural Education Partnership ILGEPI in Colchesler lo ensure the future engagement ol schools in the quality provision of arts and cultural aclivilies. Unlorlunalely, al the year-end funds were not available from Arts Council England lo continue this work. The Mercury alongside its partners will review how to continue this important aspect ol our programme. We are pleased lo report that our work experience and internships programme has returned lo pre- pandemic levels. We were able lo oller 26 placements during the year. Mercury Creatives - given ils previous success, we are pleased to report that our programme ol support and mentoring programme lor freelancers and small businesses in the creative industries was re-funded during the year by Arts Council England, Essex County Council and Tendring District Council. The programme will be re-launched early in 2024125. During the year we lully ulilised our 'piazza' and the public realm around our new building. We continued our successful monthly Farmers Market, hosted a Family Fun Day, site specific performances and a street party lo celebrate the King's Coronation. As a direct response lo the Cosl-ol-Living Crisis, the Mercury continued lo oller a range of support during the year lo local residents. Working in parlnership with Colchesler City Council, Essex County Council and Community 360 we continued as a 'warm space, during the winter for elderly and vulnerable residents. We continued lo work in partnership with local communily organisalions including Outhouse. Colchester Pride, Black History Month, Autism Anglia, Colchesler Aefugeg Action and Community 360. Productlon$ & Actlvltles The Mercury Continued to be active in the civic life and well-being ol Colchester and Essex through board and project group representation in forums and helping lo produce events. These organisations included - Creative Colchester, Colchesler Business Improvement District IBIDI, Essex Chamber ol Comrllerce, The Rice and Spice Festival, Colchesler Prid& and Visit Essex. In addition lo these forums, OLJr Executive Director continued as a Member ol the Colchester Covid Emergency Response Board and assumed the Chair of the Colchesler Leisure Board. Page 6 COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Achlevements and performance Icontinuedl b. Fundraising activities and incorne generation As lor many charities, raising voluntary funds from Irusls, foundations and individLJals is a vital source ol income for the Mercury, enabling us lo lulfil our charitable objectives as elleclively as possible. We are very grateful lor the support given by all our donors. During the year unreslrioled incoffle of £96,318 was received from individual donations and corporate supporters and a further £480,784 01 reslricled funding was raised to support community activities and projects. The Mercury believes that fundraising should be an open, honest and respectful process. We aim to build and maintain solid partnerships with our supporlgrs and donors, based on mutual understanding and shared valLies. In developing our approach lo lundraising we have taken account of the Code ol Fundraising Practice issued by the Fundraising Regulator and we are members of the Institute of Fundraising. The Mercury operated lor most ol the year with one lull lime fundraising member ol stall. Towards the end ol the period, the Board look the decision lo invest reserves in a new Development Officer post lo increase our Capacity in this area and lo allempl lo miligale our challenging trading environment. External professional fundraisers are not contracted al present. The Mercury does not engage in lace-to-lace or telephone fundraising or any further commercial agreements that might endanger our reputation. During the year, the Mercury continued lo monitor ils use ol data. Our Privacy Policy is published on our website, and clearly slates what personal data the Mercury will hold in relation to SLJPPOrters and audiences and how this data will be Ljsed. 11 sets out how individuals can raise concerns or complaints. The Mercury has received no complaints about ils fundraising activities during the financial year. Flnanelal revlew a. Golng concern Having reviewed the charity's financial lorecasls and expected lulure cash flows, the Trustees have a reasonable expectation that the charity and group have adequate resources lo continue in operational existence lor the foreseeable future. Thus, the going concern basis has been adopted in preparing these financial slalemenls lor the year ended 31 March 2024. b. Re$erve$ pollcy It is the policy ol the trLJStees to maintain an Operational Reserve Fund commensurate with the possible risks that the charity may lace. The Iruslees consider that the required level ol such a fund should Currently be in the region of £200,000 which is lo cover core operational costs lor a period 013 months. Ai 31 March 2024, this fund had a balance of £455,850 lexcluding funds lied up in fixed asselsl, This policy is reviewed regularly, and the required level may be increased should this be deemed necessary. Due lo the current increase in cost ol living the Board have taken the decision lo hold more funds in the operational reserve al 31 March 2024 in order lo meet any increased costs as they are incurred. We have been able lo relain our reserves and not allocate funds lo meet general operating costs. Page 7 COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 c. Material investments policy Under the Memorandum and Articles of Association, the charity has the power lo invest in any way the trustees wish. The trustees, having regard lo maintaining a low-risk investment portfolio and the liquidity requirements ol operating the Ihealre, have operated a policy of keeping available funds in interest bearing deposit and treasury accounts and seek lo achieve as high a rate ol interest as possible in the current economic climate. d. Principal risks and uncertalntles Current significant risks identified by the trustees include.. On-going impact of the international pandemic Reduction or withdrawal of public subsidy Quality ol artistic produ¢l available lo programme Delay or failure lo appoint key slafl Change of Trustees andlor Chief Executives Robust and secure management ol data Reduction in fundraising income Failure lo meet sales largels and budget projections. All risks are continuously monitored by the Senior Management Team throughout the year using current information such as management accounts and comparative sales and performance reports and an organisalional risk register. The Irusloes have ¢onlinued their strategy of ongoing risk management review Ihroughoul the year. This strategy comprises.. Quarterly review ol the risks the charity may lace. The eslablishmenl of systems and procedures to miligale those risks idenlilied. The implementation ot procedures designed lo minimise any potential impact on the charity should those risks materialisg. The risk register continues lo identify risks by a ranking system based on likelihood and potential ellecl. The highest ranking ol such identified risks is reviewed by the Finance and General Purposes sub-committee lor action il required. Required actions will then be reported back lo the board lor approval. This is an ongoing process. Continued Risks and Uncertaintles Relatlng to Covid-19 The Mercury's Board, Executive Team and Senior Management continued lo monitor and review risks relating lo the pandemic throughout the year. These risks included.. Cash flow Loss or unavailabilily ol key personnel Protection ol the Ihealr8s' assets and completion ol the capital project Going concern Impact on the wider economy and available public, charitable and private grants and donations. Impact on youth and community partner organisations Impact on artisls and the wider freelance theatre sèctor Page 8 COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Continued Financial Uncertainties Related to Covld-19 and Mitigated Action The impact of the pandemic conlinu8d lo be felt during 2023124 as we made all efforts lo return to 'business as usual,. The Senior Management team undertook extensive planning to ensure th8 programme for this year appealed lo as wide an aLJdience as possible. This was underpinned by careful financial management and budgeting during the period lo ensure that the Mercury would be able lo mèet ils costs and liabilities lor 12 months. The Impact of Covld-19 on the Charity's Ablllty to Fundraise and How This is Belng Managod Whilst Covid-19 had a dramatic impact our fundraising and sell-generaled income such as box ollice and trading has been amazingly resilienl and re-eslablished ilsell as a vital income stream. Income from our Friends Scheme has continued lo grow, and we secured the highest amount of sponsorship ever during the year. We remain trLJly grateful for their support. The Impact of the Vlrus on Staff and Beneflclarles and the Implications for the Charity'5 Operation and Actlvltles Ai all limes we Ènsured the safely and welfare ol our audiences, stall and visiting creatives through regular covid testing and the provision ol a sale working environment. A hybrid working model lor all stall was consolidated during the year with nominated office days. e. Flnanclal revlew The Mercury Theatre's continued artistic achievements have ensured a solid financial performance. As with all organisalions ol this type and size we must ensure that we maintain high standards ol both customer experience and artistic development. The Statement of Financial Activities ISOFAI shows income and expenditure lor the charitable group and dillerentiales between unreslricled, designated and reslricled funds allocated lor specific purposes. The total income, including recovery ol theatre lax credit, for the year was £5,424,25812023.' £5,278,813). During the financial year the lolal held in designated reserves increased by £38,933. The lolal unreslricled reserves increased by £20,758 and the Trustees are ol the opinion that the designaled reserv8s should be ulilised lor the furtherance of the company s main objectives. There are also £381,342 reslricled reserves 12023.. £84,751) the majority ol these reseNes relates lo projects which have not yel been carried out and includes the Mercury Rising campaign reserve of £313. 11 is envisaged the that designated reseNes will be ulilised within the next 5 years as major organisalional development and audience development projects are scheduled. The restricted reserves will be ulilised as and when the relevant project is implemented this is lik&ly lo be within the next 2 financial years. The lickel levy which was introduced as part ol the Mercury Rising campaign will continue for the nèxt 2 years. The levy will be ulilised lo repay the NESTA loan which was received as part ol the large capital fundraising. A lolal of £433,397 12023.. £468,4641 ol designated reserves is held in fixed ass8ts. The Colchesler Mercury Theatre continued lo receive revenue funding from Arts Council England of £791,682, Essex County Council £100,000 and Colchesler City Council £168,175, logethgr with project funding as shown in note 5 to the financial slalemenls. The Board very much appreciates the continued support ol the major funders and the support of other project funders throughout the financial year. The Board considers that the charity's financial posrtion al the balance sheet dale is satislaclory. Page 9 COLCHESTER MERCURY THEATRE LIMITED TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 f. Post balance Sheet activities In response lo Covid-19, during the year the Mercury supported all staff lo be able lo work al home wh8n needed and oller a sale workspace al the Mercury. Towards the end ol the year Tracey Childs resigned from her position as Executiv8 Producer and Joint Chief Executive. In May 2024 the Creative Director, Ryan McBryde, also resigned from the Mercury. To mitigate any negative impact on the organisalion through this transition period, our programme was confirmed lor the period lo March 2025. Structure, governance and management a. Constilutlon Colchesler Mercury Theatre Limited is registered as a ¢harilable company limited by shares and is governed by ils Memorandum ol Association as amended by special resolution on 13 September 2005 and ils Articles ol Association dated 21 August 1947. New Articles ol Association were adopted on 20 September 2016. b. Methods of appointment or election ot Tru$tee$ As sel oul in the Articles of Association adopted by special resolution in September 2016 the number of trustees shall not be less than five or more than fifteen. However, the maximum number may be incroasod by a decision of Trustees. Addilional Trustees have been appointed lo accommodate planned resignations next financial year. As sel out the maximum length ol service lor any trustee shall bo two terms of four years, subject to re-election at the end ol the first term. The maximum length ol service tor the position ol Chair is eight years. The election or re-election ol the Chair and Vice Chair shall be confirmed by the Iruslees al the annual retirement meeting. Other Iruslees shall lace re-election after a lour-year term. Potential new trustees as required are Chosen from nominations or external re¢ruilmenl by a formal interview and reference process. Page 10 COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Structure. governance and management leontlnuedl c. Organisational structure and de¢i$lon-maklng policles The board ol Iruslees, which currently has 15 members, administers the charity. The board meets four limes a year and has two sub-commillees - Finance and General Purposes and Marketing which cover finance & human resources, health & safety, risk management, governance & Iruslee development and marketing. The sub-commillees consist ol appointed trustees, co-opted individuals and relevant management and meet as required. Regular updates are given al board meetings. The sub-committees produce project or policy action plans as required lo assist the charity in moving the company forward. These sub-commillees are supplemented by various lime limitèd Task and Finish Groups ol stall and Iruslees around particular themes or subject areas such as marketing, impact and evaluation. staff welfare and artistic development. During the year the Executive Team consisting ol the Executive Director and Executive Producer were joint Chief Executives and were appointed by the Iruslees to manage day lo day operations and lo implement the strategies laid down by the board. From 1 April 2024 the Executive Director became the sole Chief Executive. To lacililale elleclive operations and management, the Senior Managemènt team has delegated aulhorily, within terms of delegalion approved by the Iruslees, for operational, strategic and programming matters including artistic policy. The Senior Management Team members on 31 March 2024 were.. Steve Mannix - Executive Director Tracey Childs - Executive Producor Iresigned 31 March 20241 Hazel Skayman - Finance Director Deborah Sawyerr- Deputy Executive Director Carol Flayner- Operations Direclor Ryan McBryde- Creative Director Abbi Roberts - Development Direclor The Theatre has 2 wholly owned subsidiaries, Colchesler Mercury Trading Ltd and Colchesler Mercury Productions Ltd. Each subsidiary is governed by a Board ol Directors, which meets 4 limès a year, with authority delegated lo members ol the Theatre's senior manageinent team lo manage the companies, day lo day operations. d. Poll¢le$ adopted for the Induction and training of Trustees New trustees receive a formal induction pack and undergo a briefing sgssion to highlight their legal obligation$ under company and charity law, the contents ol the Memorandum and Articles ol Association, the comrnittee and decision-making process. the current business plan and recent financial pertormance of the charity. This process also includes topic and new8 updates as and when necessary and positive interaction with the Ihealre's management and staff. An annual Away Day is arranged to agree business objectives. Trustees are required and encouraged lo allend theatre and community activities. Page11 COLCHESTER MERCURY THEATRE LIMITED TRUSTEES, REPORT {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Stru¢turey governance and management (continued) e. Pay poli¢y for key management personnel Senior pay al the Theatre aims lo.. recruit and relain talented individuals lo lead and further develop a rapidly growing organisalion., develop and sustain high performance., recognise individual pertormance in the preceding year The Board of Directors are responsible lor the setting of Executive pay following an annual review. Pay lor senior stall rellecls the market lor comparable jobs in comparable organisalions, the level ol knowledge, skills and experience required, and the responsibilities and accounlabililies associated with each role, the pertormance ol the charity and the individual contribution ol each executive. The pay of senior stall is reviewed annually and is depondenl on delivery against individual annual objectives in accordance with the Theatre's values. f. Related party relationships See note 33 01 the Notes lo the Accounts. Plans for future periods During the year our new business plan was fully implemented by the Executive and Senior Management Team. We are pleased lo report that we have retained our National Portfolio Sialus with Arts Council England. A limited land scalablel programme has been devised lo ensure that the Mercury is still able to produce and engage audiences bul most importantly remain financially stable, risk aware and sale. 1. In 2024125 The Mercury Theatre aims to: Consolidate ils programme in the new building ensuring the maximum financial benefit can be gained whilst retaining quality and the welfare of our stall and creatives. Throughout this year we will seek lo conlinue lo deliver a range ol creative engagement and talent opportunities at the MercLJry and elsewhere in Ihg community lo largel groups and those interested in developing professional skills in the arts. We will continue lo provide opporlunilies lor other amateur and community groups lo present their work. 2. To become one of the leading centres of excellence for the theatre industry by: EnsLJring excellence in quality ol work bl Building on co-prodLJcing and UK touring Working in partnership with other relevant organisalions dl Building upon international links developed in recent years Fostering artistic growth and development Page 12 COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Plan$ for future periods (continued) Developing skills ol staff al all levels gl Building the reputation ol the Mercury Theatre, Colchesler and the East of England h) Maintaining excellence in production and workshop facilities 3. To bulld audience volumes and the age range and diversity of audiences by: Working with Colchesler City Council, Essex County Council and other local and regional arts organisalions develop our Creative Engagement Programme bl Develop and implement a new audience development strategy led by data and audience research. Exploiting the opporlunilies provided by our website and other digital plallorms dl Reviewing current marketing operation, including stalling levels. to ensure maximum efficiency and irnpacl Statement of Trustees. responsibllltle$ The TrLJStees Iwho are also the directors ol the Company lor the purposes of company lawl are responsible for preparing the Trustees, report and the financial statements in accordance with applicable Saw and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. Company law requires Ihe Trustees lo prepare financial statements lor each financial year. Under company law, the Trustees musl not approve the financial statements unless they are satisfied that they give a true and lair view ol the slate ol affairs of the Group and the Company and ol their incoming resources and application ol resources, including their income and expenditure, lor that period. In preparing these financial statements, the Trustees are required lo.. select sui12ble accounting policies and then apply them consislenlly., observe the methods and principles ol the Charities SOFiP IFRS 1021", make judgments and accounting eslimales that are reasonable and prudent., stale whether applicable UK Accounting Standards IFRS 1021 have been followed, subject to any material departures disclosed and explained in the financial slatemenls., prepare the financial slalemenls on the going concern basis unless il is inappropriate to presume that the Group will continue in business. The Trustees are responsible lor keeping adequate accounting records that are sullicienl lo show and explain the Group and the Company's transactions and disclose with reasonable accuracy al any time the financial position ol the Group and the Company and enable them lo ensLJre that the financial slalements comply with the Companies Act 2006. They are also responsible for safeguarding the assets ol the Group and th8 Company and hence for taking reasonable steps lor the prevention and detection of fraud and other irregularitl8S. Page 13 COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Disclosure of informatlon to audltor Each ol the persons who are Trustees al the lime when this Trustees, report is approved has confirmed thal= so far as that Trustee is aware, there is no relevant audit inforrnalion ol which the charitable group's auditor is unaware, and that Trustee has taken all the steps that ought lo have been taken as a Trustee in order lo be aware ol any relevant audit information and lo establish that the charitable group's auditor is aware of that information. Auditor The auditor, Grillin Chapman, has indical8d his willingness lo continue in ollice. The designated Trustees will propose a motion reappointing the auditor al a meeting of the Trustees. Approved by order ol Il/ ill i th members of the ly)ard ol and signed on their behalf by.. Trustees on A/i"g..¥ SJ. Rob Chair est Hazel Skayman Company Secretary Page 14 COLCHESTER MERCURY THEATRE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COLCHESTER MERCURY THEATRE LIMITED Opinion We have audited the financial slalemenls of Colchesler Mercury Theatre Limited (the 'parenl charitable company'l and ils subsidiaries Ilhe 'group'l tor the year ended 31 March 2024 which comprise the Consolidated slalemenl ol financial aclivilies, the Consolidated balanc8 sheet, the Company balance sheet, the Consolidated slalemenl ol cash flows and the related notes, 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 ol Ireland, (United Kingdom Generally Accepted Accounting Praclicel- In our opinion the financial slalemenls.. give a true and lair view ol the slate ol the Group's and of the parent charitable companls affairs as al 31 March 2024 and ol the Group's incoming resources and application ol resources, including ils income and expenditure for the year then ended., have been properly prepared in accordancg with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with th8 reqLJirements ol the Companies Act 2006 and the Charities Ac12011. Basls for opinion We conducted our audit in accordance with Inlemalional Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities lor the audit of the financial slalemenls section of our report. We are independent of the Group in accordanco with the ethical requirements that are relevant lo our audit ol the financial slalemenls in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have lullilled our other ethical responsibilities in accordance with these requirements. We believe that the audrft evidence we have obtained is sullicienl and appropriate lo provide a basis lor our opinion. Concluslons relating to going ¢oncern In auditing the financial slalemenls, we have concluded that the Trustees, use ol tho going concern basis of accounting in the preparation ol the financial slalemenls is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubl on the Group's or the parent charitable company's ability lo continue as a going concern lor a period ol al least twelve months from when the financial slalemenls are aulhorised lor issue. Our responsibilities and the responsibililies ol the Trustees with respect to going concern are describgd in the relevant sections of this report. Page 15 COLCHESTER MERCURY THEATRE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COLCHESTER MERCURY THEATRE LIMITED ICONTINUED} Other information The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report Ihereon. The Trustees are responsible lor thè other information contained within the AnnLJal report. Our opinion on the financial slalemenls does not cover the other information and, except lo the extent otheNise explicitly slated in our report, we do not express any form ol assurance conclusion thereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsislenl with the financial slalemenls or our knowledge obtained in the course ol the audit, or otherwise appears lo be materially misslaled. If we identify such material inconsistenciès or apparent material misslalemenls, we are required to determine whether this gives rise lo a material misstalemenl in the financial statements themselves. 11, based on the work we have performed, we conclude that there is a material misslalemenl ol this other information, we are required lo report that lacl. We have nothing lo report in this regard. Oplnion on other matters prescrlbed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Tru8lees' report lor the financial year for which the financial slalemenls are prepared is consislenl with the financial stalemenls. the Trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are requlred to report by exception In the lighl ol our knowledge and understanding of the charitable company and ils environment obtained in the course ol the audit, we have not identified material misslalemenls in the Trustees, report. We have nothing lo report in respect of the following matters in relation lo which Companies Act 2006 requires us lo report lo you il, in our opinion.. the parent charitable company has not kept adequate and sullicient accounting records, or returns adequate lor our audit have not been received from branches not visited by us., or the parent charitable company financial statements are not in agreement with the accounting records and returns., or certain disclosures ol Trustees, remuneration specified by law are not made., or we have not r&ceived all the information and explanations we require lor our audit., or the Trustees were not enlilled lo prepare the financial statements in accordance with the small companies regime and lake advantage of the small companies, exemptions in preparing the Trustees, report and from the requirement lo prepare a Strategic report. Responsibilities of trustees As explained more lully in the TrLJslees' responsibilities slalemenl, the Trustees (who are also the directors of the charitable company lor the purposes ol company lawl are responsible lor the preparation of the financial slalemenls and lor being satisfied that they give a true and lair view, and lor such internal control as the Trustees determine is necessary lo enable the preparation ol financial slalements that are free from material misslatemenl, whether due lo fraud or error. Page 16 COLCHESTER MERCURY THEATRE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COLCHESTER MERCURY THEATRE LIMITED {CONTINUEDI In preparing the financial slalemenls, the Trustees are resFx>nsible lor assessing the Group's and the parent charitable company's ability lo continue as a going concern, disclosing, as applicable, matters related lo going concern and Ljsing the going concern basis ol accounting unless the Trustees either intend lo liquidale the Group or the parent eharilable company or lo cease operations, or have no rèalistic alternative bul lo do so. Auditor's responsibllities for the audit of the tlnancial statements Our objectives are lo obtain reasonable assurance about whether the financial slalements as a whole are free from material misslalemenl, whether due lo fraud or error, and lo issue an Auditor's report that includes our opinion. Reasonable assurance is a high level ol assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a material misslalemenl when it exists. Misstatements Can arise from fraud or error and are considered material if, individually or in the aggregate, Ihey could reasonably be expected lo influence the economic decisions ol users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-complian¢e with laws and regulations. We dosign procedures in line with our responsibilities, outlined above, lo delecl material misstatements in respect of irregularities, including fraud. The exlent lo which our procedures are capable ol delecling irregularities, including fraud is detailed below.. The extent lo whlch the audit was consldered ¢apable of detecting Irregularltles including Iraud Our approach lo delecling the risks ol material misstatement of irregularities, including fraud and non- compliance with laws and regulations, were.. Idenlilying and assessing the risK ol material misslalement by.. the engagement partner ensured the engagement team had the necessary skills and knowledge lo identify non-compliance with applicable law8 and regulations., we obtained an understanding ol the legal and regulatory frameworks thai are applieable lo the group and lor those that are rnosl signilicanl, we enquired into how management ensures eompliance is maintained., we identified that the principal risks ol non-compliance with laws and regulations that are applicabl8 lo the group and the ability lo continue trading. Correspondence was reviewed from third parties, where relevant., enquiry and review ol the group's Iransaclions was undertaken lo highlight any instances ol penalties, lines or legal activity which could suggest non-compliance with laws and regulations. There was no contradictory evidence found., and we also considered those laws and regulations that have a direct impact on the preparation ol the financial statements such as the Companies A¢1 2006. Work completed to address risk of fraud through management bias and override of controls: walklhrough lasls wer8 P9rtormed lo ensure that systems and processes were in place, which reduced the risk of Iraudulenl behaviour., tested a selection of journal entries lo identify any unusual Iransaclions., and investigated the rationale behind any significant journal enlries. Work completed to address risk of non.¢ompliance with laws and regulatlons: obtained an understanding ol the legal and regulatory framework in which the Company would need lo comply., reviewed minutes of meetings held by those charged with governance lo identify any non-compliance., enquired with management ol any liligalions and claims., and Page 17 COLCHESTER MERCURY THEATRE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COLCHESTER MERCURY THEATRE LIMITED (CONTINUED) Tevièwed legal and professional costs in the year, and any correspondence with legal advisors, to identify and issues with non-complianc&. It is also slated, as a reminder, that the primary responsibility for the prevention and detection ol fraud rests with both management and those charged with governance ol the group. Because ol the inherent limitations of an audit, there is a risk that we will not delecl all irregularities. including those leading lo a material misslalemenl in the financial slalemenls or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed frorn the events and transactions reflected in the financial slalemenls, as we will be less likely lo become aware of instances ol non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description ol our responsibilities lor the audit ol the financial slalemÈnls is located on thè Financial Reporting Council's website al.. www.fr¢.or .LJklaudilorsres onsibililie8. This description forms part ol our Auditor's report. Use of our report This report is made solely lo the charitable company's members, as a body, in accordance with Chapter 3 01 Part 16 01 the Companies Act 2006, and to the charitable company's Iruslees, as a body, Part 4 of the Charities (Accounts and Reports) Flegulations 2008. Our audit work has been undertaken so that we might slate lo the charitable company's members those mallers we are required lo slate lo them in an Auditor's report and for no other purpose. To the lullesl exlenl permitted by law, we do not accept or assume responsibility lo anyone other than the charitable company and ils members, as a body, lor our audit work, lor this report, or for the opinions we have formed. Thomas Maddocks FCA FMAAT {Senior $tatutory audllor) lor and on behalf ol Grlffln Chapman Chartered Accounlanls Registered Auditors 4 & 5 The Cedars Apex 12 Old Ipswich Road Colchester Essex C07 7QFi Date.. Page 18 COLCHESTER MERCURY THEATRE LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2024 Restricted tunds 2024 Unrestricted funds 2024 Total funds 2024 Tolai funds 2023 Not9 Income from.. Donations and legacies Charitable activities Other trading activities Investments 480,784 1,178,792 2,660,464 807.762 13,338 283,118 1.659,576 2,660,464 807,762 13,338 283,118 1,531,591 2,656, 753 718,607 2,836 369,026 Other income Total Income 480,784 4.943.474 5,424,258 5,278,813 Expendlture on: Raising funds.. Olhar raising funds Charitable activities 10 682,095 4.339.023 682.095 4,424,814 611,454 4,677,162 85,791 Total expendlture 85,791 5,021,118 5,106,909 5,288,816 Net Ineomel{expendilure) Transfers between funds 394,993 {98,402} {77,644) 98,402 317.349 (9,803) 25 Net movement In fund$ 296.591 20,758 317,349 (9,803) Reconciliation of funds: Total funds brought forward Nel movement in funds 84,751 296.591 1,186.038 20,758 1,270,789 317,349 1,280,592 (9,803) Total funds carried forward 381,342 1.206,796 1,588,138 1,270,789 The Consolidated slalemenl ol financial aelivilies includes all gains and losses recognised in the year. The notes on pages 25 to 56 form part ol these financial slalemenls. Page 19 COLCHESTER MERCURY THEATRE LIMITED REGISTERED NUMBER: 441035 CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Note Fixed assets Intangible assets Tangible assets 17 18 26,814 406.922 33, 196 435, 778 433,736 468,974 Current assets Stocks Debtors Cash al bank and in hand 20 32,395 710,338 1,615,386 47,220 1,072,428 1.071,482 21 2,358.119 2,785. 130 Creditors.. amounts falling due within on8 year 22 11,185,982) (1,259, 741) Net current assets 1,172,137 925.389 Total assets le$$ current Ilabllities 1,605,873 1,394,363 Creditors.. amounts falling due after more than one year 23 117.735) (723,574) Net assets excludlng pension asset 1,588.138 1,270, 789 Total net assets 1,588,138 7,270, 789 Charlty funds Reslri¢led funds Unrestricted funds 25 381,342 84,751 Designated funds General funds 25 25 750,926 455,870 77 1,995 474,045 Total unreslricled funds 25 1.206,796 1, 186,038 Total funds 1.588,138 1,270, 789 The Trustees acknowledge their responsibilities tor complying with the requirements ot the Act with respect lo accounting records and preparation of financial slalemenls. The financial slalemenls have been prepared in accordance with the provisions applicable lo entities subject lo the small companies regime. Page 20 COLCHESTER MERCURY THEATRE LIMITED REGISTERED NUMBER: 441035 CONSOLIDATED BALANCE SHEET {CONTINUED} AS AT 31 MARCH 2024 The financial slalements were approved and authorised lor issue by the Trustees on and signed on their behalf by.. Ro Chair The notes on pages 25 10 56 torm parl ol these financial stalemenls. Page 21 COLCHESTER MERCURY THEATRE LIMITED REGISTERED NUMBER.. 441035 COMPANY BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Note Fixed assets Intangible assets Tangible assets Investments 26,474 406,922 200 32,686 435, 778 200 18 19 433,596 468.664 Current assets Stocks Debtors Cash al bank and in hand 20 21 9,475 851,702 1,085,514 19,162 876.331 709,630 1.946,691 1,545, 129 Creditors.. amounts falling due within one year 22 11,057,543) (988,487) Net current assets 889,148 556,642 Total assets less current Ilabilitles 1,322,744 1,025.306 Creditors.. amounts falling due after more than one year 23 117.735) [123,574) Net assets excluding pension asset 1,305,009 907,732 Total net assetg 1,305,009 901.732 Charity funds Restricted funds Unreslricled funds 25 381,342 84.751 Designated funds General funds 25 25 750,926 172,741 711,995 104,988 Total unrestricted funds 25 923.667 816,981 Total funds 1,305,009 901,732 The Company's nel movetnenl in funds lor the year was £403,257 (2023- £1154,942). The Trustees acknowledge their responsibilities lor complying with the requirements ol the Act with respect lo accounting records and preparation ol financial slalemenls. Page 22 COLCHESTER MERCURY THEATRE LIMITED REGISTERED NUMBER: 441035 COMPANY BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2024 The financial slalemenls have been prepared in accordance with the provisions applicable lo enlilies subject lo the small companies regime. The financial slalemenls were approved and aulhorised lor issue by the Trustees on and signed on their behalf by.. est Director The notes on pages 25 10 56 form parl ol these financial stalemenls. Page 23 COLCHESTER MERCURY THEATRE LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Cash flows from operating activllles Net cash used in operating activities 727,809 (443.022) Cash flows from invgstlng acllvltles Interest received Purchase of tangible & intangible fixed assets 13,338 98,126) 2.836 (4,450) Net cash used in investlng aetlvltles (84,788) 11,614) Cash tlows from flnancing activities Repayments of borrowing {99,11n (94, 763) Net cash used In financing artlvltles (99,117) (94.763) Change In cash and cash equivalents In the year Cash and cash equivalents al the beginning of the year 543,904 1.071,482 1539,399) 1,610,881 Cash and cash equivalents at the end of the year 1,615.386 1,071,482 The notes on pages 25 10 56 form part ol these financial slalements Page 24 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 General infomiation The charitable Company is a private company limited by shares (company no. 4410351 and registered with the Charity Commission I registration no. 2323871. 11 is registered in England and Wales and ils registered ollice is shown on page 1 of the financial slalemenls. Accounling pollcles 2.1 Basls of preparation of financlal statements The financial slalemenls have been prepared in accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Slalement ol Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 1021 leff ective 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 1021 and the Companies Act 2006. Colchesler Mercury Theatre Limited meets the definition ol a public benefit entity under FRS 102. Assets and liabilities are initially recognised al historical cost or transaction value unless otherwise slated in the relevant accounting policy. The Consolidated slalem9nt of linaneial activities ISOFAI and Consolidated balance sheet consolidate the financial slalemenls of the Company and ils subsidiary undertakings. The results ol the subsidiaries are consolidated on a line by line basis. The Company has taken advantage ol the exemption allowed under section 408 01 the Companies A¢t 2006 and has not presented ils own Slalemenl ol financial activities in these financial slalemenls. The financial statements are prepared in sterling which is the functional currency of the group. 2.2 Golng concern The financial statements are prepared on a going concern basis which assumes thai the ¢harilable group will continue in operational existence lor a period ol at least one year from the date ol authorisalion ol these financial slalemenls. The Trustees have a reasonable expectation that the charity and group will have adequate resources lo continue in operational existence lor the foreseeable future. Each ol the major funding bodies Arts Council England East, Essex County Council and Colchesler City Council - have indicated that their support ol the theatre will continue for the foreseeable future. Page 25 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (continued) 2.3 Income All income is recognised once the Group and Company has enlitlernenl to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income from Charitable Activities - Comprises lickel income from performances and activities al the theatre and other venues as appropriate, income for cornmunily projects and hire of main house and studio all ol which are recognised on a receivable basis. Box ollice income is recognised when productions lake place. Other trading aclivilios Comprises income from trading associated with attending the Ihealre, royalties, lelling ol the restaurant, bar and other areas and is recognised on a receivable basis. Grants are included in the Consolidated statement ol financi212Ctivilies on a receivable basis. The balance of income received for specific purposes bul not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance ol enlillement of reeeipl, its recognition is deferred and included in eredilors as deferred income. Where enlillement occurs before income is receivod, the income is accrued. Donations Comprises als income from donations, subscriptions and grants, including government grants. 11 is recognised on a receivable basis in the appropriate fund when there is enlillemenl lo the income, probability ol receipt and the amount can be reliably measured. Income lax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised al the time ol the donation. Government grants - where the charity receives government grants. it recognises this as income only where there is reasonable assurance that the charity will comply with the conditions allaching lo them and the grants will be received. This includes grants receivèd from Arts Council England as thèy are an executive non-departmenlal public body. Investment Income Comprises interest received held in appropriate interest bearing accounts. All interest received is credited lo operational funds and is recognised on a receivable basis. Other income is recognised in the period in which il is reeeivable and lo the extent the goods have been provided or on completion of the service. 2.4 Expenditure Expenditure is recognised once there is a legal or conslruclive obligation to Iransler economic benefit lo a third party, it is probable that a Iransler ol economic benefits will be required in Settlement and the amount ol the obligation can be measured reliably Expenditure is classified by aclivily. The costs of each activity are made up ol the total ol direct costs and shared costs, including support costs involved in undertaking each activity. Direct and Support costs relating to a single activity are allocated directly lo that aclivily. Vvhere costs relate lo more than one activity they have been allocated on the basis of staff time and resources consumed by each aclivily. Page 26 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Aecounling pollcies Icontlnuedl 2.4 Expendlture (contlnued) Expenditure on raising funds represents the direct cost of trading associated with allending the Ihealre, royalties and other income together with allocated support costs and the direct costs associated with securing donations, subscriptions and grants and other income together with allocated support costs. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs. The costs relating lo charitable activities relate lo direct expenditure on performances and activities at the theatre and other venues as appropriate. It also includes costs relating lo community projects and auditorium and studio hire together with allocated support costs. Governance costs represents direct expenditure ol Board activities together with allocated support costs. Grants payable are charged in the year when the offer is made except in those cases where the oller is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject lo conditions which have not been mel al the year end are noted as a commitment, bul not accrued as expenditure. All expenditure is inclusive ol irrecoverable VAT. 2.5 Producllon$ 11 For productions occurring wholly within one financial year box ollice and venue lees are recognised in that year and costs are recognised as incurred. Typically costs are incurred in advance ol revenue being generated. 21 Where a production spans the year-end and is expected lo be loss making. the expected loss is recognised in lull in the year in whi¢h the loss is foreseen. 31 Where production sel up costs have been in¢LJrred prior to the year-end but the production has not yel opened, the sel up costs are carried forward al the balance sheet date as deferred production costs until such lime as the production opens. 2.6 Interest receivable Interest on funds held on deposit is included when receivable and the amount Can be measured reliably by the Group,. this is normally upon notification ol the interest paid or payable by the institution with whom the funds are deposited. 2.7 Forelgn currencles Monetary assets and liabilities denominated in foreign currencies are translated into sterling al rates ol exchange ruling al the reporling dale. Transactions in foreign Currencies are translated into sterling al the rale ruling on the date of the Iransacliori. Exchange gains and losses are recognised in the Consolidated statement ol financial activities. Page 27 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (continued) 2.8 Intangible assets and amortisation Intangible assets costing £500 or more are capilalised and recognised whon future economic benefits are probable, and the cost or value ol the asset can be measured reliably. Intangible assets are initially recognised al cost. After recognition. under the Cost rnodel, intangible assets are measured al cost less any accumulated amortisalion and any accumulated impairment losses. Intangible assets comprise the cost ol a licence enabling the premises to be used lo hold wedding ceremonies and a new website and finance package. Al each reporting date the company assesses whether there is any indication ol impairment. If such indication exists, the recoverable amount ol the asset is delermined lo b& the higher ol its lair value less costs lo sell and ils value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. Amortisalion is provided on intangible assets al rates calculated to write oll the cost ol each asset on a slraighl-line basis over ils expected useful life. Amortisalion is provided on the following bases- Licences Website Computer sofiware 10 Y. Slraighl Line 10 V. Slraighl Line 10 ¥. Slraighl Line 2.9 Tangible fixed assets and depreclatlon Tangible fixed assets costing £500 or more are capilalised and recognised when future e¢onomic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised al cost. After recognition, under the cost model, langible fixed assets are measured al cost less accumulated depreciation and any accumulated impairment losses. All costs incurred lo bring a tangible fixed asset into ils intended working condition should be included in the measurement ol ¢081. Al each reporting dale the Company assesses whether there is any indication ol impairment. 11 such indication exists, the recoverable amount ol the asset is determined lo be the higher ol Ils lair value less costs lo sell and ils value in use. An impairment Ioss is fecognised where the carrying amount exceeds the recoverable amount. Page 28 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (continued) 2.9 Tangible fixed assets and depre¢iation l¢ontinued) Depreciation is charged so as lo allocate the cost of tangible fixed assets less their residual value over their 8slimaled useful lives, using the slraighl-line method. Depreciation is provided on the following bases.. Large capital projects Studio development Theatre equipment Capital Grant 15 /0 Slraighi Line 15 33.33°/. Straight Line 15 1. Siraighi Line 15 /. 33.33°/. Slraighl Line The assets, residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively il appropriate, or il there is an indication of a significant change since the last reporting dale. Costs incurred relating lo the large capital development and re-furbishment ol the Theatre have been capilalised. These will b& depreciated once the development is Complete. Within the large capital d&vglopmenl, costs have been incurred relating to the rÈfurbishmenl of lemporary ollice accommodation. These are being depreciated in line with the company's depreciation policy 01150/0 Straight line as the office accommodation has been brought into use. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated statement ol financial activities. 2.10 Investments Fixed asset investments are a form ol financial instrument and are initially recognised at their transaction cost and subsequently measured al lair value al the Balance sheet dale, unless the value cannot be measured reliably in which case il is measured al cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as 'GainsllLossgsl on inveslmenls, in the Consolidated slalemenl ol financial activities. Investments in subsidiaries are valued al cost less provision lor impairment. 2.11 Stocks Stocks ol merchandise and other goods for resale are valued al the lower ol cost and net realisable value, after making due allowance lor obsolete and slow moving items. 2.12 Debtor$ Trade and other debtors are recognised al the settlement amount after any trade discount ollered. Prepayments are valued al the amount prepaid net ol any trade discotjnls due. Debtors receivable within one year of the reporting dale are carried initially al their transaction price and subsequently al selllemenl value. Debtors that are receivable in more than one year and not subject lo a market rale ol interest are measured al Ihe present value of the expected future receipts. Page 29 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting pollcies {continued} 2.13 Cash at bank and in hand Cash al bank and in hand includes cash and short-term highly liquid investments with a short maturity ol three months or less from the dale of acquisttion or opening of the deposit or similar account. 2.14 Llablllties and provisions Liabilities are recognised when there is an obligation at the Balance sheet date as a result ol a past event, il is probable Ihal a Iransler ol economic benefit will be required in settlemenl, and the amount of the selllemenl can be estimated reliably. Creditors payable wilhin one year of the reporting dale are carried initially at their transaction price and subsequently al selllemenl value. Creditors payable in more than one year and not subject lo a market rate ol interest are measured al the present value ol the expected lulure payment discounted at a market rate of interest. Liabilities are recognised at the amount that the Company anlicipales it will pay lo settle the debt or the amount il has received as advanced payments lor the goods or services il must provide. Provisions are measured al tho best estimate of the amounts required to settle the obligation. Where the ellecl ol the lime value ol money is material, the provision is based on the present valu& ol those amounts, discounted al the pre-tax discount rale that reflects the risks specific lo the liability. The unwinding ol the discount is recognised in the Consolidated slalemenl of financial activities as a finance cost. 2.15 Flnancial instruments The Group only has financial assets and financial liabilities ol a kind that qualify as basic financial inslrumenls. Basic financial instruments are initially recognised al transaction valuè and subsequently measured al their selllemeni value with the exception of bank loans which are subsequently measured al amorlised cost using the eltective interest method. 2.16 Operating leases Rentals paid under operating leases are charged to the Consolidated slalement of financial activities on a slraighl-line basis over the lease term. 2.17 Penslons The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group lo the tund in respect ol the year. The Group ollers a voluntary stakeholders scheme lo its employees and those on short term equity contracts. The company contribution costs are included in the Slalemenl of Financial Activities as they fall due. Page 30 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies {continued) 2.18 Fund accounting General funds are unreslricled funds which are available lor use at the discretion ol the Trustees in furtherance of the general objectives ol the Group and which have not been designated lor other purposes. Designated funds comprise unreslricled funds that have been sel aside by the Trusle8s for particular purposes. The aim and use of each designated fund is set out in the notes lo the financial slalemenls. Reslricled funds are funds which are lo be used in accordance with specific reslriclions imposed by donors or which have been raised by the Group lor particular purposes. The costs ol raising and administering such funds are charged against the specific fund. The aim and use ol each reslricled fund is sel out in the notes lo the financial slalemenls. Investment income, gains and losses are allocated lo the appropriate fund. Critical accounting estlmate$ and areas of judgment Eslimales and judgments are continually evaluated and are based on historical experience and other factors, including expectations ol future events that aro believed lo be reasonable under the circumstances. Critical accounting estimates and assumptions.. The Company makes estimates and assumptions concerning the future. The resulting accounting eslimales and assumptions will, by definition, seldom equal the related a¢lual results. Useful economic life - the annual depreciation charge lor tangible and intangible fixed assets is sensitive to changes in the eslimaled useful eeonomic lives and residual values ol the assets. The useful economic lives, amorlisalion and residua1 values are re-assessed annually. They are amended when necessary lo rellecl current eslimales based on technological advancement, lulure investment, economic utilisalion and the physical condition ol the assets. Page 31 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Income from donations and legacles Restricted Unreslricled funds funds 2024 2024 Total funds 2024 Total funds 2023 Voluntary income - see note bèlow Grants Individuals & corporate memberships 455,063 25,721 1,059,857 1,514,920 25,721 118,935 1.063.490 369,598 98,503 118,935 Total 2024 480,784 1,178,792 1,659,576 7.531,591 Tot812023 373,231 1, 158,360 1,531,591 Voluntary Income Restricted Unrestricted funds funds Arts Council England core Colchesler Borough Council - core Essex County Council - core Arts Council England project grant Others - see Slalemenl of funds Note 25 791,682 168, 175 loo,000 360,000 95,063 Total 2024 455,063 1,059,857 Page 32 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Income from charitable actlvities Unreslricled funds 2024 Total funds 2024 Total funds 2023 Box ollice receipts Theatre rentals and hires Community and Education Royalties income Other income 2,074,651 115,609 131,601 2,841 335,762 2,074,651 115,609 131.601 2.841 335,762 2,078,321 121,564 130.017 Y1,888 314,953 Total 2024 2,660,464 2.660.464 2,656. 753 Total 2023 2,656, 753 2,656, 753 Page 33 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Income from other trading activities Incomg from non charitable trading activities Unrestricted funds 2024 Total funds 2024 Total funds 2023 Trading associated with attending theatre pertormances and activities 807.762 807.762 718,607 Total 2023 718.607 778.607 Investment income Unreslricled funds 2024 Total funds 2024 Total funds 2023 Investment income 13,338 13,338 2.836 Total 2025 2,830 2,836 Other Incomlng resources Unrestricted funds 2024 Total funds 2024 Total funds 2023 TTR claims 283,118 283.118 369,026 Total 2023 369,026 369,026 Page 24 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 10. Expenditure on ralsing funds Unrestricted funds 2024 Total funds 2024 Total funds 2023 Commercial work costs 7,289 7.289 6,527 Tota12023 6,527 6,52? Other raislng funds expenditure Unrestricted funds 2024 Total funds 2024 Total funds 2023 Bar and front ol house costs Bar and Irolll ol house stall costs Front ol house support stall costs 347,451 297,402 29.953 347,451 297,402 29.953 314, 196 264, 174 26,557 Total 2024 674,806 674,806 604,92i Tota12023 604,92i 604,927 11. Analysis of grants Total funds 2024 Total funds 2023 Grants paid 2024 Grants, Community and Education 1,000 1,000 Page 35 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Analysis of expenditure on charitable activities Summary by fund type Restricted Unrestricted funds ILJnds 2024 2024 Total 2024 Total 2023 Main House Touring Community and Education 85,791 3,440,015 397,764 501,244 3,525,806 397,764 501,244 3,534.081 396,843 746,238 85,791 4,339,023 4,424,814 4,677, 162 Total 2G23 405,55i 4,271,605 4,677, 162 Page 36 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 13. Analysis of expenditure by activities Activities undertaken directly 2024 Grant funding ol activities 2024 Support costs 2024 Total funds 2024 Total funds 2023 Main House Touring Community and Education 3,257,287 397,764 500,244 268.519 3.525.806 397,764 501,244 3,534,081 396,845 746,238 1,000 Total 2024 4,155,295 1,000 268,519 4,424.814 4,677,762 Tota12023 4,437,011 240, 151 4,677,162 Analys1$ of dlrect costs Community and Education 2024 Total funds 2024 Total funds 2023 Main House 2024 Touring 2024 Stall costs Depreciation Production costs 1,561,011 106,690 996,524 354,329 25,751 254,224 13,336 59,291 44,291 158,385 13,336 91,765 44,291 1,973,620 133,362 1.147,580 442,911 25,751 165,845 124,312 141,914 1,978,858 128,027 1,321.658 368, 748 81,247 339, 705 3 18, 776 99,992 Theatre running costs Capital development P&L costs Community and Education Marketing Irrecoverable VAT 165,845 12,431 14,191 99,450 113,532 12,431 14,191 Total 2024 3,257,287 397,764 500,244 4.155,295 4,437,011 Total 2023 3,293,930 396,843 746,238 4,437,011 Analysis of support costs Page 37 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Analysis of expenditure by activitie$ l¢ontlnuedl Analysis of support costs (continued) Total funds 2024 Total funds 2023 Finance and adminislralion IT Recruilmenl and training Travel and entertaining Licences and subscriplions Front of House staff costs 169,447 23.163 13,125 10,293 22,538 29.953 157, 151 23,951 8,809 9, 703 16,870 23,667 Total 2024 268,519 240, 151 14. Audltor's remuneralion 2024 2023 Fees payable to the Company's auditor lor the audit ol the Company's annual accounts 8,000 72,205 15. Staff costs Group and Company 2024 Group ano Company 2023 Wages and salaries Social security costs Contribution to defined contribution pension schemes 2,123,111 141,916 35,948 2,098,803 140,752 30,034 2,300,975 2,269,589 Page 38 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 15. Staff costs {¢ontinued) The average number of persons employed by the Company during the year was as follows.. Group 2024 No. Group 2023 Company 2024 No. Compan 2023 No. 96 95 96 95 All pension costs are allocated lo unreslricled funds. The average number ol employees excludes actors and other freelance staff. The number ol employees whose employee benefits (excluding employer pension coslsl exceeded £60,000 was.. Group 2024 No. Group 2023 No. In the band £60,001 £70,000 The key management personnel ol the company comprise the Chief Executive and senior management team- Deputy Executive Director, Creative Director, Finance Director, Development Dirgclor and Operations Director. The loial employee benefits including employer pension contributions ol the key management personnel ol the company were £404,52412023- £332,833). 16. Trustees, remuneratlon and expenses During the year, no Trustees received any remuneration or other benefits (2023 - £NIL). During the year ended 31 March 2024, expenses lolalling £284 were reimbursed or paid directly lo 2 Trustees (2023- £ 15£ to l Trustee). This was in relation lo travel expenses. Page 39 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 17. Intangible assets Group Webslte Llcences Software Tot•1 Cost Al 1 April 2023 Additions 19.775 1,700 47,226 543 68,701 543 At 31 March 2024 19,775 1,700 47.769 69,244 Amortlsatlon At 1 April 2023 Charge lor the year 5,931 1.979 1,190 170 28.384 4,776 35,505 6,925 At 31 March 2024 7,910 1.360 33,160 42,430 Net book value At 31 March 2024 11,865 340 14,609 26,814 At 31 March 2023 13,844 510 18,842 33, 196 Page 40 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 17. Intangible a$$els l¢onllnued) Company Web$Ft& Softwarè Total Cost Al 1 April 2023 Additions 19,775 47,226 543 67.001 543 Al 31 March 2024 19,775 47,769 67,544 Amortisation At 1 April 2023 Charge lor the year 5.931 1,979 28,384 4,776 34,315 6,755 Al 31 March 2024 7,910 33,160 41,070 Net book value Al 31 March 2024 11,865 14.609 26,474 At 31 March 2023 13.844 18,842 32,886 Page 41 %YJ CO ¢9 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 19. Fixed as$et Investments Invèstments In subsldlary eompanies Company Cost or valuation At 1 April 2023 200 At 31 March 2024 200 Net book value At 31 March 2024 200 At 31 March 2023 200 Principal subsidlarle$ The 1015owing were subsidiary undertakings ol the Company.. Nam8S Company nurnber Class of shares Holdlng Included In consolldatlon Colchesler Mercury Productions Ltd Colchesler Mercury Trading Ltd 09144431 09144550 Ordinary Ordinary 100°/o Yes 100°/o Yes The financial results ol the subsidiaries lor the year were= Names ProflVILoss} lor the year Net a53ets Colchesler Mercury Productions Ltd Colchesler Mercury Trading Ltd 283,118 218,325 283,218 100 20. Stocks Group 2024 Group 2023 Company 2024 Company 2023 Bar, cale, workshop and lighting 32,395 41,220 9,475 19,162 Page 44 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 21. Debtors Group 2024 Group 2023 Company 2024 Company 2023 Due within one year Trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income Prepayments in respect ol lulure show costs carried forward 89,464 49,587 72,062 441,933 55,162 226,836 40,559 257,422 456,666 40, 189 338,329 226,836 987,051 40, 189 55,709 21,501 55,709 21,501 710,338 1,072,428 851,702 816,331 22. Creditor5: Amounts falllng due wlthln one year Group 2024 Group 2023 Company 2024 Company 2023 Trade creditors Other laxalion and social security Other creditors NESTA loan Accruals and deferred income 167,695 89,427 158,420 103,700 666,740 171,544 88,505 276,275 96,978 626,435 144.429 89,427 57,365 103.700 662.622 117,893 88.505 65,316 96,978 619,795 1,185,982 1.259,741 1,057,543 988,481 Group 2024 Group 2023 Company 2024 Compan 2023 Deferred income al 1 April 2023 Resources deferred during the year Amounts released from previous periods 456,619 645,569 449,979 363,506 2.526,764 2,295,529 2,418,332 2,058,509 12,401,780) (2.484,479) {2,290.826} (1.972,036) 581,603 456,519 577,485 449,979 Deferred income derives from the box ollice in advance. Page 45 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 23. Creditors: Amounts falling due after more than one year Group 2024 Group 2023 Company 2024 Company 2023 NESTA loan 17,735 123,574 17.735 123,574 The NESTA loan is an unsecured loan. Interest is charged al 4.5.10 per annum and repayment is due by May 2025. 24. Financial instruments Group 2024 Group 2023 Company 2024 Company 2023 Flnanclal assets Financial assets measured al lair value through income and expenditure 1,615,386 7,071,482 1.085.514 709,630 Financial assets measured al lair value through income and expenditure comprise bank and cash balances. Page 46 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 25. Statement of funds Statement of funds - current year As restated - Balance at 1 Aprll 2023 Tr•n$tsr$ Bal8n¢e •t 31 Inlout March 2024 Income Expenditure Unrestricted funds Dgslgnated lund$ Equipment Organisalional development ArtisliclAudience Developfflenl projects Hardship funds Theatre equipment- capilalised Large projects- capilalised Intangible assets - capitalised 2nd floor extension capilalised 22,185 208,810 22,185 233,810 25.000 5,493 7,041 277,784 156.044 32,686 1,950 50,000 55,493 6,041 258,395 117,227 26,474 31,301 11,0001 {87,6211 {38,817) 16,754) 68,232 542 29,351 711.993 {134.192) 173,125 750.926 General funds Operational Share capital 474,025 20 4.943,474 14,886,926) (74,723) 455,850 20 474,045 4.943,474 14,886.926) 174,723) 455,870 Total Unrestricted funds 1,186,038 4,943,474 15,021,118} 98,402 1,206,796 Restricted funds Colchesler Calalysl Colchesler LCEP Project Tamasha Essex Gounty Council - Summer Schools Paul Hamlyn Foundation One Colchesler 4,400 20,966 217 4,400 6,000 126,9661 217 6,431 2,872 1.570 8,975 6,000 9,721 2,000 111,0131 12,2271 14501 15,060) 13,848) {5.1391 {2,6451 11,1201 {3.9151 {3,1521 Essex Community Foundation Speech Bubbles 1,000 Page 47 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 25. Statement of funds (continued) Statement of lunds- current year (continued) Balance at 1 Aprll 2023 Transfers Balance at 31 inlout March 2024 Incorne Expendlture Colchesler City Council - Community Support National Lollery D'oyly Carte SELEP Arts Council England - project grant The Wolfson Foundation Tendring District Council F&i Trust Community 360 Mercury Rising fundraising 5.000 1.017 1,239 10,000 (8,1961 11,804) 11,017) 1459) 29,351) 5,000 {7801 29,351 360,000 49,800 9.912 1.500 1,500 360,000 (49.81x1) 9.912 (1,5001 1,500 313 26.064 {25,7511 84,751 480.784 185,7911 198,402) 381.342 Total of funds 1,270,789 5,424,258 15,106,909) 1,588,138 Page 48 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 25. Staternent of funds (continued) Designated fund$ Equipment- Designated for the purchase of capital items within the next 5 years. Organisalional development- Designated lo allow lor organisational projects within the next 5 years. Artisliclaudience development projects projects lo be ulilised in the next 5 years. Designated lor specific artistic and audience development Hardship fund - To oller financial assistance lo staff and freelancers during the current cost of living crisis, lo be ulilised in the next 2 years. Equipment capilalised - Represents the net book value ol assets purchased using designated reserves which are not included in reslricled funds. Restrlcted funds These relate lo funding received lor specific projects, as well as those listed below.. Mercury Rising ¢ampaign - For funds raised in relation to the Te-developmenl of the theatre through the purchase of equipment, fixlLJres and fittings. The lickel levy charge received each year will continue lo be allocated lo this fund, lo be used lo repay the NESTA loan. This loan was taken out by the company as part ol the projeel fundraising. Arts Council £360,000 contribution towards the Mercury Creatives Project. This is a 3 year project and funds will be ulilised as expenditure occurs over that period. Transfers between funds In the year New allocations from unrestricted lunds of £25,000 to the Organisalion development fund and £50,000 10 the Arlisliclaudience development project. SELEP Iransler of £29,351 and The Wollson Foundation £49,800 from restricted to designated funds lo reflect the expenditure on fixed assets. Within designated funds £18,432 and £542 moved from the designated purchase fund lo designated fixed assets. Reslricled funds lolalling £19,251 were used lo support cor8 costs through Iranslers to unreslricled reserves. Page 49 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 25. Statement of funds {continuedl Statement of funds - prior year Balance 81 31 March 2025 Balance al l April 2022 Transfers inloul Income Expenditure Unrestricted funds Designated funds Equipment Organisalional development ArlisliclAudience Development projects Hardship funds Theatre equipment - capilalised Larg& projects- capilalised 10,000 210,760 10,550 (7.950) 20,550 208,810 5,493 13,500 92,835 498, 721 5,493 7,041 87,784 388,315 16,459) (15,501) (112,556) 4,450 1.950 831,309 (Y34,3Y6) 15,000 717,995 General fundg Operational Share capital 332.186 20 4,905,583 (4, 748. 744) (75.000) 474,025 20 332,206 4,905,583 [4, 748. 744) (15,OOOJ 474,045 Total un￿StrICted funds 1. 163,575 4.905,583 14,883,060) 1.186,038 Restricted funds Fowler Smith Jones Colchester Catalyst Royal Opera House re LCEP Tamasha Teaching School Alliance Poslcode Community Trust Big Lollery Fund Eastern Counties Educational Trust 1,500 (1,500) 4,400 1,000 217 637 4,400 (1,000) 217 1637) (887) (1.693) 887 1,693 4.000 (4,000) Essex County Council Short Breaks 36,632 23,200 {59,832) Page 50 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 25. Statement of funds (continued) statement of funds - prior year Icontinuedl Balance al 51 March 2025 8818nce al l April 2022 Transfers IT￿Oul Income Expenditure Braintree Year ol Culture DWP Kickslart European Regional Development Fund Colchesler LCEP ProjeGI Essex County Council - Summer Schools Paul Hamlyn Foundation Asda Foundation Essex Community Foundation One Colchesler Speech Bubbles Sport England Mercury Rising fundraising Colchesler City Council Community Support National Lottery O'oyly Garte 300 (300J (3.633J 3.633 160,812 22,650 {160.812J (1,684) 20.966 12,911 62, 748 1,492 8,975 4,200 12,OOQ 40,000 (6,480J (59,276J (1.492) 6.431 2,872 8,975 1,570 6,00 (2,630J (6,OOOJ (40,OOOJ (4 1,247) 67,311 26.064 6,700 9,725 3.285 (1, 700) (8, 708) (2,046) 5.000 1.017 7,239 117,07/ 373,231 (405,557) 84,751 Total ot funds 1,280,592 5,278,814 (5,288,617J 1,270, 789 26. Summary of funds Summary of funds - current year Balance at 1 Aprll 2023 Transfers Balance at 31 inlout March 2024 In¢om& Expendlture Designated funds General funds 711.993 474,045 84,751 1134,1921 4.943.474 14,886,926) 480,784 185.791} 173,125 174,723) 198.4021 750,926 455,870 381,342 Aestrieled funds Page 51 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 26. Summary of funds {continuedl 1.270,789 5,424,258 15,106.909) 1,588,138 Summary of funds- prlor year Balance al 31 March 2023 Balance al l April 2022 Transfers in/oul Income Expenditure Designated funds General ILJnds Restricted funds 831,309 332,206 117,077 (134,316J 4,905.583 (4, 748, 744) 373,231 (405.557) 15,000 (15,000) 711,993 474,045 84,751 1,280,592 5,278,814 (5,288,617J 1,270, 789 27. Analy$l$ of net assets between funds Analy$l$ of net assets between funds- Current perlod Reslricled Unreslricled funds funds 2024 2024 Total fLJnds 2024 Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year Creditors due in more than one year 406,922 406,922 26,814 26,814 1,976,777 2.358.119 11,185,982) 11,185,982) 117,7351 117,7351 381,342 Total 381,342 1,206,796 1.588.138 Page 52 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 27. Analysis of net assets between funds Icontinuedl Analysi$ of net assets between funds- prior period Reslricled Unrgstricted funds funds 2023 2023 Total funds 2023 Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year Creditors due in more than one year 435, 778 435, 778 33, 196 33, 196 2, 100,379 2. 185, 130 (1,259, 741) (1.259, 741) (123,574) (123.574) 84,751 Total 84,751 1, 186,038 1,270. 789 28. Re¢on¢lllatlon of net movement in funds to net cash flow from operating actlvitles Group 2024 Group 2023 Nel incomelexpendilure lor the period las per Statement ol Financial Acliviliesl 317.349 (9,803) Adjustments for: Depreciation charges Amorlisalion charges Interest received Decreasellincreasel in stocks Decreasellincreasel in debtors Decrease in creditors 126.439 6.925 113,338) 8,825 362,090 180,481) 121, 157 6,870 f2,836) (13,664) (309.037} (235,709) Net ¢ash provided byl{used in> operatlng actlvllles 727,809 (443,022) Page 53 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 29. Analysis of cash and cash equivalents Group 2024 Group 2023 Cash in hand 1,615,386 1.071,482 Total cash and cash equlvalents 1,615,386 7,071,482 30. Analysis of changes in net debt Al 1 April 2023 Cash flows Al 31 March 2024 Cash at bank and in hand Debt due within 1 year Debt due after 1 year 1,071,482 196.978) (123.574) 543,904 16,722) 105.839 1,615,386 1103,700) {17.735) 850,930 643,021 1,493,951 Page 54 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 31. Pension commitments The group operates a defined contribution pension scheme. The assets ol the scheme are held separately from those ol the group in an independently administered fund. The pension cost charge represents contributions payable by the group lo the fund and amounted lo £8,700 12023 - £8,700) were payable to the fund at the balance sheet dale and are included in creditors. 32. Operatlng lease commltments Al 31 March 2024 the Group and the ComparFy had commitments lo make future minimum lease payments under non-cancellable operating leases as follows.. Group 2024 Group 2023 ¢omp•ny 2024 Company 2023 Not later than 1 year Later than 1 year and not later than 5 years 13,069 45,741 22, 769 13,069 45.741 22, 769 58,810 22, 769 58,810 22, 789 The group operates from the theatre premises which is leased from Colcheslèr City Council. A 40 year lease commenced in September 2022 lor a peppercorn rent. Under this agreement, there is an annual reserve fund contribution from the group lo Colchesler City CoLJncil of £20,000, towards rgpair, maintenance and replacement of some parts ol the property. The financial commitment over the remaining 18rm ol the lease will vary, with a contribution review every S years. The contribution expense is recognised in expenditure on charitable activities in the Statement ol Financial Aclivilies and is not included in the operating lease commitment table above. Page 55 COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 33. Related party transactions During the year the group purchased goodslservic85 lotalling £nil 12023.- £8581 from Funnelwick Limb Lld, a company in which Matthew Linley, a Trusl8e, is a director. There was no balance outstanding at year end. During the year rhe group purchased goodslservices lolalling £39812023.. £nill from Slagel Theatre Ltd, a company in which Matthew Linley, a Trustee, is a director. There was no balance oulslanding al year end. During the year, Colchesler Mereury Theatre Limited had transactions lor income lolalling £763 12023.. £3,692) and expendilure lolalling £7,211 12023.. £3,300) with Colchesler Mercury Trading Ltd and transactions lor income lolalling £1,252,129 12023.. £2,093,866) and expenditure lolalling £1,255,925 12023.. £2,095,217) with Colchesler Mercury Productions Ltd. Colchesler Mercury Theatre Limited also received income in the year by way of distributions under gill aid from each subsidiary, lolalling £218,325 from Colchesler Mercury Trading Ltd and £369,026 from Colchesler Mercury Productions Ltd. Al year end £444,25512022.. £259,757) was due from Col¢hester Mercury Trading Ltd and £2,32212023.' £2,334) was due lo Colchesler Mercury Productions Ltd. All transactions and balances with the subsidiaries are con801idaled in these group accounts. Share capilal 2024 2023 Issued and fully pald up share capital Ordinary £1 shares 20 20 20 20 Page 56