2025-03-31-accounts

Registered number: 441035 Charity number: 232387 COLCHESTER MERCURY THEATRE LIMITED TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

COLCHESTER MERCURY THEATRE LIMITED CONTENTS Page Reference and adminlstrative details of th8 Cornpany. its Trustees and advisers Chaimian'5 Statement Trustees. report Independent auditor's report on the financial statements Consolidated statement of financial activities 3-13 14-17 18 Consolidated balance sheet 19-20 Company balance sheet Consolidated statement of cash flows 23 Notes to tho financial statements 24-52

COLCHESTER MERCURY THEATRE LIMITED REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2025 Trustees Robert Wesl (resigned 11 December 20241 Lyn Barton (resigned 4 June 20241 Anita Thomberry Iresigned 11 De￿mber 20241 Matthew Linley Sean Plummer Iresigned 11 March 20251 Dominic Collins Loma Fox O'mahony, Deputy Chair Mark Houll-Allen, Chair Marianne Hahn (resigned 2 January 20251 Helena Oxley (resigned 29 September 20251 Oliver Brown (resigned 5 April 20251 Rodney Appleyard Julia Stephen Peter Fremlin Matthew Brindley Timothy Young lappoinled 4 June 20241 James Bales, Treasurer lappoinled 16 February 20251 Anne Torreggiani {appoinled 27 June 20251 Company registared nurnber 441035 Charity registered number 232387 Registered office The Mercury Theatre Balkerne Gale Colchesler Essex C01 1PT Company secretary Hazel Skayman Chlef executlve officer Steve Mannix Independent auditor Griffin Chapman Chartered Accountants 4 & 5 The Cedars Apex 12 Old Ipswich Road Colchesler Essex C07 7QR Bankers Barclays Bank 9 High Street Colchester Essex C01 1DD Page 1

COLCHESTER MERCURY THEATRE LIMITED CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 The year has been an exciting one for the theatre with a real focus on supporting new talent and local artists through our produced work, lalenl development programmes and the re-launch of the M&r¢ury Creatives programme. In January we were thrilled to welcome Natasha Rickman as our new Artistic Director - Natasha started her artistic journey as a member of the Mercury young company and il is wonderful to now have her leading our artistic programme. In 2024125 we produced a mix of our own work and co-productions with other Ihealres and organisalions - this mix ensured that our work was seen not just in Colchester bul also in other parts of the country and the world. We were delighted that two of our Studio pr(Iduclions, which celebrated new lalenl, and our pantomime, were nominated forlwon awards and one of those Studio productsons also subsequently transferred to London and New York. Our Creative Engagement PTogramme continued lo support children, young people and adults both in Colchesler and throughout Essex and we also worked with local schools holding workshops, industry days and curated 1,000 children for the Christmas lanlem parade through Colchesler City centre. During the year the following Trustees retired from the Board.. Rob West, Lyn Barton, Sean Plummer, Anita Thornberry, Marianne Hahn, Helena Oxley and Oliver Brown. We would like to thank them for their many years of seNice and invaluable contribution lo the Mercury Th&alre. Looking forward, we will strive to remain one of the leading centres for excellence in th8 theatre industry by building on what we have achieved so far, further developing relationships with other arts venues and organisations and Continuing to champion new talent and local artists. As we transition into the new local government structure with the creation of the Greater Essex Combined County Authority and the Local Government reorganisation, we will endeavour to positson the Mercury Theatre as a leading voice in regional cultural policy discussions. Finally, I would like lo thank our funders, supporters, staff and our audiences for your support in making our work possible. Mark Houll-Allen Chair Dale.. I i J IzJoo"zs Page 2

COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2025 The Trustees 8re pleased lo present their annual report together with the audited financial statements of the Company for the year 1 April 2024 10 31 March 2025. The Annual report se￿￿$ the purposes of both a Trustees, report and a directors. report Ljnder company law. The Trustees confirm that the AnnLJal report and financial statements of the charitable company comply with the current slalulory requirements, the requirements of the charitable company's governing document and the provisions ol the Slalement of Recommended Practice ISORPI applicable lo charities preparing their accounts in accordance with Ihe Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 leffeclive 1 January 20191. Since the group and the Company qualify as small under section 383 of the Companies Act 2006, the Group strategic report r&quired of medium and large companies under the Companies Act 2006 Islralegic Report and Directors, Report) Regulalions 2013 has been omitted. Oblectlves and activities Pollcles and objectives The primary object for which the company is established, as shown in our governing documents, is to formulate and prepare schemes for and take all necessary steps for the advancement of &ducation and the improvement of public taste through the medium of arts, and in particular the arts of dfftma, dancing, singing and music. Our vision is of the Mercury as a theatre that touches the lives of all the people of Colchesler and its surrounding area, contributes regionally lo the development of new talent and new audiences, and carves out a truly nationa reputation for the quality of the work that il makes. These objects are further summarised in ouf mission stalernent.. 'The Mercury exists lo pul Ih8alre al the heart of the cultural life of the community il seNes and lo make work in Colchester that reaches audiences and generates Critical attention regionally and nationally. The Chief Executive Steve Mannix led both the artistic and business of the organisalion including the development of the company's business plan, the strategic aims of which are summarised below.. Strategic Aims To build a reputstion for the quality and innovation of our programme. To grow and diversify our audien¢e base for that programme. To exploit the touring and commercial potential of the work we make. To create exceptional visitor experiences. To recruit and relain the most tslented team of staff and volunteers. To diversify income streams I build financial resilience. Our strategie aims are monito￿d throughout the year by a variety of methods including.. Inlemal and externally commissioned evaluation methods. Audience suNeys following each performance or event seeking feedback on both artistic quality, facilities and customer service. Audience focus groups las required). Measurement of audience data, feedback and attendance against regional and national trends. Regular Board and staff conferences throughout the year. Page 3

COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Objectives and activities (continued} Whilst upholding these aims it remain5 the role of the board lo.. Maintain a policy of inclusiveness and diversity. Ensure responsible financial control which is prudent and sustainable. Support the striving for excellence and high quality in all in which the theatre is involved. In shaping our objectives and planning our activities the Iruslees hsve considered the Charity Commission's guidance on public benefit, including guidance on public benefit and fee Charging. The theatre relies on grants and iT)come from tickets, fees, other income and secondary trading lo cover ils operating costs. In setting the level for ticket prices, concessions and fees, the trustees consider the accessibility of the theatre and ils community activities lo those on low incomes. The theatre offers a range of ¢on¢essions over the mix of ils activities including over 65, under 26, access and job seekers. With regard lo visiting companies the Iruslees have little or no input in setting lickel prI￿s. The company aims lo benefit the community as a whole. In addition lo an extensive annual programme of home productions, co-productions and visiting cornpanies the theatre has a commitment lo developing an audience through activities in and for the community. We are also commilled to young people's and community development through an active Creative Engagement programme which provides extensive workshops and projects for schools, collegas and the wider public. The Mercury also provides facilities for a large number of local amateur and community groups. Our extensive annual programme covers our own in house produced work, a pantornime and a mix of co produced and visiting drama together with visiting live entertainment events across a wide range of genres. This programme utilises both the main auditorium and studio facilities. In addition, each year our objective is to invest in, and engage in, activi118s and projects that develop our artistic policy through engaging with hard-to- reach audiences and support for new and emerging artists at th& start of their career. These activities can be at the theatre or al other locations. A¢hievgments and performance Revlew of activities Al the start of the year, the Mercury, along with many olhei arts and cultural oryanisations across the UK, faced a further significant challenge lo its operating budget with the on-going cost pressures of ulililies, stock purchases, materials and wages. Our Board and Executive Team had no option bul lo lake the decision to reduce our own produced work by one main house show during the period to meet these increased overheads. We are very pleased lo report that as the year progressed we achieved 70.10 Capacity in our Main House12024.. 8601.> and 65*1. for the mainly new work in our studio12024.. 53 /ol. We remain eternally grateful for the loya support of all our audiences. Whilst these are challenging limes, we have been able lo further consolidate our operations and see the benefits of our new business plan. We once again achieved the highest turnover in our hislory1£5_834m including capital funding) with our earned income reaching 70 /0 of turnover, excluding eapilal grants. For every £1 of public sector investment we now generate at least £4 in the local Colchester and Essex economy. This strong financial performance enabled us to mitigate sland-slill public sector investment, rising cost8 and the increasingly competitive market for fundraising. Against this background we remain firmly committed lo retaining a range of lickel prices for our audiences with accessible pricing for each Mercury Production performance. Page 4

COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Achievements and performance Icontinuedl The health and well-being of our audiences, staff, artists and creatives remained a priority for us during the year. We continued our range of Covid safely measures as well as the ability for our audience members lo exchange tickets if they or their family or friends were unwell. During the year we ernployed 102 staff. In addition, we engaged 80 freelance actors and creatives to produ our Mercury Productions and facililale our Creative Engagement Programme. The benefit5 of our new building continued lo offer our artists, audiences, staff and users a safe, wmfortable, welcoming and accessible environment to see and lo create work. During the year with the support of the South East Local Enterprise Partnership and Arts Council England we were able lo build an extension of three new rehearsallmeetings rooms in order lo meet demand for space and lo cornplete the full conversion of our stage lighting to LED, therefore reducing our carbon footprint. In addition, we installed digital equipment to enable us lo live stream from all our stages and rehearsal spaces therefore making our work more accessible. In 2024125: We remain forever grateful to the hard WOTk and dedication of our staff team. During the year we were sad lo say goodbye lo several key members of our senior staff - Tracey Childs, our Executive Producer and Joint CEO, Ryan Mc8ryde, Creative Director and Dilek Lalif, Senior Producer. They were each instrumental in curating and directing our artistic programme over the last decade. As a response our Board look the opportunity to review our producing and artistic capacity. A new post of Artistic Director was created alongside a team of producers lo support our produced work and visib'ng programme. In January 2025 we welcomed Natasha Rickman as our new Artistic Director. During the year we were able to continue lo embed our new business model creating record breaking levels of earned income, increase the number of artists we supported, increase the level of our programming and ensure the smooth and efficient operation of our facilities. Further highlights included our annual panto The New Adventures of Peter Pan that once again broke box office records playing lo 98•/ts capacity. We were proud that our Dame, Anthony Sluart-Hicks won Best Dame al the UK Panlo Awards (alongside other nominations for Best Costume Design and Best Sell. Our production of l Really do Think This Will Change Your Life was nominated for a Stage Innovation Award and My Mothers Funeral, a co-produelitsn with Paines Plough, the Bèlgrade Theatre and Royal and Demgale Theatre won a Fringe First at the Edinburgh Festival, toured the UK and transferred to London and New YoTk. With additional investment from Arts Council England, Essex County Council and Tendring District Council we were able lo re-launch Mercury Creatives. Working across Essex in partnership with The Princes Theatre, Claclon. Harlow Playhouse and the Civic Theatre, Chelmsford the programme will support local artists and creatives of the future and help them gain professional skills over the next three years. As an organisalion we continue our commitment lo reducing our carbon footprint across all aspects of our work. In particular we upgraded our solar battery capacity lo capture more sustainable energy for use in peak limes leveningsl. We are proud that we hold 8REEAM certification for the building, achieving a "very good. rating overall. In addition, the Mercury has fully adopted the Green Book industry standards across our produced work and operations to enable us lo become as sustainable as possible. Page 5

COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Achievements and performance Icontinuedl Reach and Engagement We are pleased lo report that our Creative Engagement programm8 continued both at the Mercury and throughout Colchesler and Essex. Over 24,000 children, young people and adults took part across 1,407 sessions. During 2024125 we were able lo offer the following range of work: Mer¢kJry Productions- Midsummer and The New Adventures of Peter Pan Mercury C(FProduclions - My Mother's Funeral, Bindweed, Abigail's Party and The 39 Steps Creative Engagement Programme of classes and workshops for adults, children and young people Masterclasses and training events Re-Launch of Mercury Creatives which is our programme to support skills development in the creative industries within Essex Artist Ne￿Orking Events Play Readings Year-round programme in our studio supporting local artists lo present their work and visiting national small- s¢ale touring LATES - a free programme of work in our barlcafg including Cocktail Cabaret ILGB T 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 wilh the continued positive feedback from audien￿$ and users about our building and all ils facilities. We eonlinue lo receive an average of 4.7" out of 5, in a11 feedback surveys. Number of Shows.. Audience Attendance: National Touring Productions Touring Performances Audience Attendance None ticketed events None lickeled attendees Number of Access Performances Senior Matinees Attendance 471 118,739 617 182,019 182 28,491 17 80 28.736 Participation and Engagement Activities Creative Engagement Sessions 1,407 Participants 24,826 Young Company Members 300 Talent Development Number ofArtists Supported 632 Sharings 21 Research and Development 15 PlayNrightslProducerslDirectors 24 Workshops labovel 33 Page 6

COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Achlevements and performance {continued} Other projects continued lo be developed including.. The Mercury Teachers, Network continued lo provide invaluable support and advice for our work in schools in Colchesler and across Essex. We are pleased lo report that our work experience and internships programme has returned lo pre- pandeinic levels. We were able lo offer 15 placements during the year. During the year we fully Ljtilised our 'piazza' and the public realm around our new building continuing our successful monthly Farmers Market. Christmas and Summer Markets and site-specific performances. In Novembei 2024 for the first lime we curated the Christmas Lantern Parade starting at the Mercury and ending al Firstsile working with local schools with over 1,000 children participating to mark the start of the Christmas season. As a direct rosponse lo the Cost-of-Living Crisis. the Mercury continued lo offer a mnge of support during the year lo local residents. Working in partnership with Colchester City Council, Essex County Council and Community 360 we ¢onlinued as a 'warm space, during the winter for elderly and vulnerable residents. We continued lo work in partnership with local community organisations including Outhouse, Colchesler Pride, Black History Month, Autism Anglia, RAMA (formerly Colchester Refugee Action), Colchesler Fringe and others. Productions & Activities The Mercury eonlinued to be active in the civic life and well-being of Colchesler and Essex through board and project group representation in forums and helping lo produce events. These organisations included Creative Colchester, Colchester Business Improvement District (BIDI, Essex Chamber of Commerce, The Rice and Spice Festival, Colchesler Pride and Visit Essex. b. Fundraising activities As for many charities, raising voluntary funds from Irusls, foundations and individuals is a vital source of income for the Mercury, enabling us lo fulfil our charitable objectives as effectivgly as possible. We are very grateful for the support given by all our donors. During the year unrestricted income of £81,914 was received from individual donations and corporate supporters and a further £178,225 of reslricled funding was raised to support community activities and projects. £500,000 was received in lotsl from South East Local Enterprise Partnership and £148,500 was received from Arts Council England in support of the construction of the 2nd ffoor extension and the purchase of new LED The Mercury believes that fundraising should be an open, honest and respectful process. We aim lo build and maintain solid partnerships with our supporters and donors, based on rnulual understsnding and shared values. In developing OLJr approach to fundraising we have taken account of the Code of Fundraising Practice issued by the Fundraising Regulator and we are members of the Inslilule of Fundraising. The Mercury operates with fundraising staff. The investment made last year to increase this resource has had a positive influence and miligales our challenging trading environment. External Professional fundraisers are not contracted at present. The Mercury does not engage in face-to-face or telephone fundraising or any further commercial agreements that might endanger our reputation. During the year, the Mercury continued lo monitor ils use of data. Our Privacy Policy is published on our website, and cleady slates what personal data the Mercury will hold in relation lo supporters and audiences and how this data will be used. 11 sets out how individuals can raise concems or complaints. The Mercury has received no complaints about ils fLJndraising activities during the financial year. Page 7

COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT (CONTINUED} FOR THE YEAR ENDED 31 MARCH 2025 Achievements and perfomiance {continuedl Finanelal review a. Golng concern Having reviewed the charity's financial forecasts and expected future cash flows, the Trustees have a reasonable expectation that the charity and group have adequate resources lo continue in operational existence for the foreseeable future. Thus, the going concern basis has been adopted in preparing these financial statements for the year ended 31 March 2025. b. Reserves policy In line with guidance issued by the Ch8rilies Commission. il is the policy of the Iruslees lo maintain an Operational Reserve FLJnd. This reseNe provides funds, commensurate with the risks faced by the organisalion, that may be needed to meet day lo day obligations, sustain planned activities in the short term, andlor enable a full responsg in the event of significant financial impact associated with those risks. The Iruslees consider that the required level of such a fund should currently be in the region of £350.000. AI 31st March 2025, this fund had & balance of £384,803 (excluding funds lied up in fixed assets). This policy is reviewed regularly, and the required18vel may be amended should this be deemed necessary. Given the volatile trading environrnent for the Mercury, the Trustees have Created designated reserves in order to invest in the development of future artistic projects, organisalional development and replace equipment and other assets as needed. We envisage these lo be utilised within the next 5 years. Restricted reserves are ulilised as and when the relevant project is implemented this is likely lo be within the next 2 financial years. . Investment powers and policy Under the Momorandum and Articles of Association. the charity has the power to invest in any way the trustees wish. The trustees, having regard to maintaining a low-risk investment portfolio and the liquidity requirements of 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 rale of interest as possible in Ihe current economic climate. d. Rlsk management Current significant risks iderilified by the Iruslees include.. Reduction or withdrawal of public subsidy Quality of artistic product available to programme Delay or failure lo appoint key staff Change of Trustees andlor Chief Executives Robust and secuTe management of data Reduction in fundraising incom8 Failure lo meet sales targets and budget proieclions. All risks are continuously monitored by the Senior Managefflenl Team throughout the year using current infomialion such as management 8ccounts and comparative sales and performance reports and an organisalional risk register. Page 8

COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 The Iruslees have continued their strategy of ongoing risk management review throughout the year. This strategy comprises.. Quarterly review of the risks the charity may face. The eslablishmenl of systems and procedures lo miligale those risks identified. The implemenlalion of procedures designed to minimise any potential impact on the charity should those risks malerialise. The risk register continues to identify risks by a ranking system based on likelihood and potential effect. The highest ranking of such identified risks is reviewed by the Finance and General Purposes sub-committee for action if required. Required actions will then be reported back to the board for approval. This is an ongoing process. e. Financial review The Mercury Theatre's continued artistic achievements have ensured a solid financial performance. As with all organisalions of this type and size we must ensure that we maintain high standards of both customer experience and artistic development. The Statement of Financial Activities ISOFAI shows income and expenditure for the charitable group an differentiates between unreslricled, designated and reslricled funds allocated for specific purposes. The lolal income. including recovery of theatre lax credit, for the year was £5,834,412. During the financial year the total held in designated reserves increased by £607,113 10 £1,358,039 12024.. £750,926}. Of these, a total of £851,161 12024= £433,397) is held as fixed assets. This increase of is due rnainly to the construction of the lop floor exl8nsion and purchase of LED lighting. The remaining designated reserves relate lo amounts identrfied for specific projects. Following a raview of the age and remaining life of key equipment. the Board have taken the decision to increase the designated reserve held for renewal of equipment lo £125,000. This includes amounts for significant equipment renewals that have already taken pla￿ in 2025126. Following a review of other known changes to our funding stakeholders and operating environment the Trustees have also increased the level of Organisational development reserves specifically lo assist with anlicipaled additional costs during the Local Government reforrn process. A Combined County Mayoral Authority will be Created under the Devolution Priority Programme and there will also be Local Government reorganis8tion. In lolal, unrestricted reserves increased by £536,066 to £1.742,86212024.. £1,206,7961- The Trustees are of the opinion that the designated reserves are approprisle and will be ulilised for specific purposes outlined, and that the Operational ReseNe Fund is in line with ils policy. The charity also holds £325,78312024= £381,342) of restricted reserves which relates lo funding received for specific projects which have not yel been completed. The ticket levy which was introduced as part of the Mercury Rising campaign will Continue with future funds used to support OLJr Creative Engagement activities in the community. We are pleased lo report that we have now completed all repayments of the NESTA loan which was received as part of the large capital fundraising. The Colchesler Mercury Theatre eonlinued lo receive revenue funding from Arts Council England of £791,682, Essex County Council £100,000 and Colchesler City Council £188,175, together with project funding as shown in note 4 to the financial slaternenls. The Board very much appreciates the continued support of the major funders and the support of other project funders throughout the financial year. The Board considers that the charills financial position al the balance sheet dale is salisfaclory. Page 9

COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT (CONTINUED} FOR THE YEAR ENDED 31 MARCH 2025 Structure, governance and management a. Constitution Colchesler Mercury Theatre Limited is registered as a charitable company limited by shares and is governed by ils Memorandum of Association as amended by special resolution on 13 September 2005 and ils Articles of Association dated 21 August 1947. New Articles of Association were adopted on 20 September 2016. b. Methods of appointment or olection of Trustees As set out in the Articles of Association adopted by special resolution in September 2016 the number of Iruslees shall not be lass than five or more than fifteen. However, the maximum number may be increased by a decision of Trustees. Additional Trustees have been appointed lo accommodate planned resignations next financial year. As sel out the maximum length of service for any trustee shall be two terms of four years, subject to re-&le¢lion al th& end of the first lerm. The maximum length of service for the position of Chair is eight years. The election or re-election of Ihe Chair and Vice Chair shall be confirmed by the Iruslees al the annual retirement meeting. Other trustees shall faco ro-election after a four-year term. Potential new trustees as reqLJired are chosen from nominations or external recruitment by a formal inleryiew and reference process. c. Organisational structure and decision•making policies The board of trustees, which currently has 11 members, administers the charity. The board meets four limes a year and has two sub-committees- Finance and General Purposes and Marketing which cover finance & human resources, health & safely, risk management, govemance & trustee development and marketing. The sub-commillees consist of appointed trustees. CO4opled 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-committees are supplemented by various lime limited Task and Finish Groups of staff and Iruslees around particular themes or subject areas such as marketing, impact and evaluation, staff welfare and artistic development. During the year the Chief ExecutlV8 is appointed by the trustees lo manage day lo day opèrations and lo implement the strategies laid down by the board. To facilitate effective oper81ions and management, the Senior Management team has delegated authority, within terms of delegation approved by the Iruslees, for operational, slralegi¢ and programming matters including artistic policy. The Senior Management Team members on 31 March 2025 were.. Steve Mannix- Chief Executive Hazel Skayman - Finance Director Deborah Sawyerr- Executive Director Carol Rayner- Commercial and Operations Oireclor Natasha Rickman Artistic Director Abbi Roberts- Development and Communications Director The Theatre has 2 wholly owned subsidiaries, Colchester Mercury Trading Ltd and Colchesler Mereury Productions Ltd. Each subsidiary is governed by a Board of Directors, which meets 4 times a year, with authority delegated to members of the Theatre's senior management team lo manage the companies, day to day Page 10

COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT (CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 Structure, governanc8 and management Icontinuedl operations. d. Policies adopted for the induction and tralnlng of Trustees New Iruslees re￿1ve a formal induction pack and undergo a briefing session lo highlight their legal obligations under company and charity law. the contents of the Memorandum and Articles of Association, the Committee and decision-making process, the current business plan and recent financial performance of the charity. This process also includes topic and news updates as and when necessary and Flositive intera¢lion with the Ihealre's management and staff. An annual Away Day is arranged lo agree business objectives. Trustees are required and encouraged lo attend Ihealre and community activities. e. Pay policy for key management personnel Senior pay at the Theatre aims to.. recruit and retain ts18nled individuals lo lead and further develop a rapidly growing organisalion,, develop and sustain high performance., recognise individual performance in the preceding year. The Board of Directors are responsible for the setting of Executive pay following an annual review. Pay for senior staff reflects the market for comparable jobs in comparable organisalions, the level of knowledge, skills and experience required, and the responsibilities and accountabilities associated with each role, the performance of the charity and the individual contribution of each executive. The pay of senior staff is reviewed annually and is dependent on delivery against individual annual objectives in accordance with the Theatre's values. f. Related party relatlonshlps See note 33 of the Notes to the Accounts. Plans for future perlods During the year our business plan was fully implern8nled by the Executive and Senior Management Team. We are pleased to report that we have retained our National Portfolio Status with Arts CoLJncil England. A limited land scalable) programrne has been devised to ensure that the Mercury is still able lo produce and engage audiences bul most importantly remain financially stable, risk aware and safe. We will continue lo support local artists including writers, directors, actors and others working in tho creative industries both through produced work in our main house and studio theatre and also via Mercury Creatives. 1. In 2025126 The Mercury Theatre aims to.. Consolidate its pragramme In the new building ensuring the maximum financi81 benefit can be gained whilst retaining quality and the Welfa￿ of our staff and creatives. Throughout this year we will seek lo continue lo deliver a range of creative engagement and lalenl opportunities al the Mercury and elsewhere in the community to largel groups and those interested in developing professional skills in the arts. Page 11

COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Plans for future periods Icontinuedl We will continue lo provide opportunities for other amateur and community groups to present their work. 2. Continue to be one of the leading centres of excellence for the theatre industry by= Ensuring excellence in quality of work bl Building on w-PToducing and UK touring Working in partnership with other relevant organisalions dl Building upon international links developed in recent years Fostering arb'stic growth and development fl Developing skills of staff at all levels gl Building the reputation of the Mercury Theatre, Colchesler and the East of England hl Maintaining excellen￿ in production and workshop facilities 3. To bulld audien¢e volumes and the age range and diverslty 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 2nd audience research. Exploiting the opportunities provided by our website and other digitsl platforms dl Reviewing current marketing operation, including staffing levels, lo ensure maximum efficiency and impact Pag8 12

COLCHESTER MERCURY THEATRE LIMITED TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Statement of Trustees. responsibilities The Trustees (who are also the directors of the Company for the purposes of company lawl are responsible for preparing the Trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Praclicel. Company law requires the Trustees to prepare financial ststemenls for each financial year. Under Company law, the Trustees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the slate ol affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expenditLJre, for that period. In preparing these financial stalemenls, the Trustees are required lo.. select suitable accounting policies and thgn apply them consistently., observe the methods and principles of the Charities SORP IFRS 1021., make judgments and accounting estimates that are reasonable and prudent., slate whether applicable UK Accounting Standards IFRS 1021 have been followed, sijbject lo any material departures disclosed and explained in the financial slatemenls., prepare the financial statements on thè going concern basis unless it is inappropriate lo presume that the Group will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Companls transactions and disclose with reasonabl& accuracy al any lime the financial position of the Group and the Company and enable them lo ensure that the financial slalemenls comply with the Companies Act 2006. Thoy are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of infom)ation to auditor Each of the persons who are Trustees al the lime when this Trustees, report is approved has confirmed that.. so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditor is unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order lo be aware of any relevant audit information and lo establish that the charitable group's auditor is aware of that informabon. Auditor The auditor, Griffin Chapman, has indicatèd his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor al a meeting of the Trustees. Finally, we would like lo thank the sgnior management team and all staff members of the Mercury for all their work and ongoing commitment to our theatre. Approved by order ol the members of the board of Trustees on I l J i * J -2 0. by.. and signed on their behalf Mark Hoult-Allen Chair Page 13

COLCHESTER MERCURY THEATRE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COLCHESTER MERCURY THEATRE LIMITED Opinion We have audited the financial statements of Colchester Mercury Theatre Limited Ilhe 'parenl charitable company'l and its subsidiaries Ilhe 'group'l for the year ended 31 March 2025 which comprise the Consolidated statement of financial aclivilias, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of 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 of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. g1ve a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 March 2025 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended., have been property prepared in accordance with United Kingdom Generally Accepted Accounting Pracli¢e', and have been prepared in accordance with the requirements of the Companies Ad 2006 and the Charities Ac12011. Basis for opinion We condu¢led our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Audilorfs responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have oblaingd is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to going concern In auditing the financial statements, we have concluded that the Trustees, use of the going Concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material Un￿rtaInlieS relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Charitable company's ability to continue as a going concern for a period of al least twelve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Page 14

COLCHESTER MERCURY THEATRE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COLCHESTER MERCURY THEATRE LIMITED ICONTINUEDI other information The other information comprises the information included in the Annual report other than the financial slalements and our Auditor's report thereon. The Trustees are responsible for the other information contsined within the Annual report. Our opinion on the financial statements does not cover the other information and, except lo the exlenl otherwise explicitly slated in our report, we do not express any form of assurance conclusion Ihèreon. Our responsibility Is lo read the other information and, in doing so, consider whether the other information is materially inconsi51ent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required lo determine whether this gives rise to a material misstalemenl in the financial slalemenls themselves. If, based on the work we have performed, we conclude that there is 8 material misslatemenl of this other information, we ar8 required to report that fact. We have nothing to report in this regard. Opinion on other matters prescrlbed by the Companies Act 2006 In our opinion, based on the work undertaken in th& course of the audit.. the information given in the Trustees, report for the financial year for which the financial statements are prepared is consistent with the financial sts18menls. the Trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we aro requirgd to report by exceptlon In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstalemenls in the Trustees, report. We hsve nothing to report in rgspgct of the following matters in relation lo which Companies Act 2006 requires us to report lo you if, in our opinion.. the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for 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 rewrds and returns., or certain disclosures of Trustees. ￿rnLIneration specified by law are not made., or we have not received all the infomialion and explanations we require for our audit., or the Trustees were not enlilled lo prepare the financial statements in accordance with the small companies regime and tske advantsge of the small eompanies, exemptions in preparing the Trustees, report and from the requirement to prepare a Strategic report. Responsibilities of trustees As explained more fully in the Trustees, responsibilities statement, the Trustees Iwho are also the directors of the charitable Company for the purposes of company lawl are responsible for the prepar81ion of the fnan¢i81 stslemenls and fDr being satisfied that they give a true and fair view. and for such internal control as the Trustees determine is necessary lo enable the preparation of financial statements that are free from material misslatemenl, whether due lo fraud or error. In preparing the financial slatemenls, the Trustees aTe responsible for assessing the Group's and the parent charitable companls ability to continue as a going concern, disclosing, as applicable, matters Telated lo going Page 15

COLCHESTER MERCURY THEATRE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COLCHESTER MERCURY THEATRE LIMITED ICONTINUEDI con¢ern and using the going concern basis of accounting unless the Trustees either intend lo liquidate the Group or the parent charitable company or to cease operations, or have no realistic allemalive bul to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole 8re free from material misslatemenl, whether due lo fraud or error, and to issue an Audilorfs report that includes our opinion. Reasonable assurance Is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a material misslatemenl when il exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures n line with our responsibilities, outlined above, lo detect material misslalemenls in respect of irregularities, ncluding fraud. The exlenl to which our procedures are capable of delecling irregularities, including fraud is detailed below.. The extent to which the audit was considered capable of detecting irregularities including fraud Our approach lo delecling the risks of material misstalemenl of irregularities, including fraud and non- compliance with laws and regulations, were.. Identifying and assessing the risk of material misstalemenl by.. the engagement partner &nsured Ihg engagement team had the ngcessary skills and knowledge to identify non-compliance with applicable laws and regulations- we obtained an understanding of the legal and regulatory frameworks that are applicable lo the group and for those that are most significant, we enquired into how management ensures compliance is maintained., we identified the principal risks of non-compliance with laws and regulations that are applicable to the group and their ability to continue trading., correspondence was reviewed from third parties, where relevant., enquiry and review of the group's transactions was undertaken to highlight any instance of penalties. fines or legal activity which could suggest non-compliance with laws and regulations,. and we considered those laws and regulations that hava a direct impact on the preparation of th8 financial statements such as the Companies Act 2006. Work completed to addr9$¥ risk of fraud through management blas and overrlde of controls.. walkthrough tests were perforrlled to ensure that systems and processes were in place, which reduced the risk of fraudulent behaviour., lesled a selection of journal entries to identify any unusual Iransaclions., and investigated the rationale behind any significant journal entries. Work completed to addres5 risk of non<ompllance wlth laws and regulatlons: obtained an understanding of the legal and regulatory framework in which the company would need lo comply., reviewed minutes of meetings held by those charged with governance lo idonlify any non-compliance., enquired with managernenl of any liligalion and claims,. and reviewed leg81 and professional costs in the year, and any coffespondence with legal advisors, to identify any issues with non-compliance. Page 16

COLCHESTER MERCURY THEATRE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COLCHESTER MERCURY THEATRE LIMITED ICONTINUEDI It is also slated, as a reminder. that the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the group. Because of the inherent limitations of an audit, there is a risk that we will not delecl all irregularities, including those leading lo a rnalerial misslalemenl in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removfjd from the events and transactions reflected in the financial slalemenls. as we will be less likely lo become aware of instances of non-compliance. The risk is also greater rogarding irregularities occurring due lo fraud rather than error, as fraud involves intentional concealment. forgery, wllusion, omission or misrepresenlalion. A further description of our responsibilities for the audit of the financial stslemenls is located on the Financial Reporting Council's website al.. www.frc.or .uklaudilorsres onsibililies. This description forms part of our Auditorfs rèport. Use of our report This report is made solely lo the charitable companys members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and lo the charitable companls trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might slate lo the charitable company's members those matters we are required to stale lo them in an Audilorfs report and for no other purpose. To the fullest exlenl permitted by law, we do not accept or assume responsibility lo anyone other than the charitable company and its members, as a body. for our audit work, for this report, or lor the opinions we have forrned. Thomas Maddocks FCA FMAAT Isenlor statutory auditor) for and on behalf of Griffin Chapman Chartered Accounlanls Registered Auditors 4 & 5 The Cedars Apex 12 Old Ipswich Road Col¢hesler Essex C07 7QR Date.. i e ZG- Page 17

COLCHESTER MERCURY THEATRE LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2025 Restricted Unrèslricted funds funds 2025 2025 Total funds 2025 Total funds 2024 Nole Income from: Donations and legacies Charitable activities Other trading activities Investments Other income 797,374 1,141,771 2,848,526 751,812 17,732 277,197 1,939,145 2,848,526 751,812 17,732 277,197 1,659,576 2, 660,464 807, 762 13,338 283,118 Total income 797,374 5.037,038 5,834.412 5,424,258 Expenditure on: Raising funds.. Commercial work costs Other raising funds Charitable activities 10 30,795 599,573 4,516,849 30,795 599,573 4,723.537 7,289 674,806 4,424,814 12 206,688 Total expenditure 206,688 5,147,217 5,353.905 5, 106, 909 Net incomellexpenditurel Transfers between funds 590,686 1646,2451 1110,1791 646,24S 480.507 317,349 25 Net movement in funds {55,5591 536,066 480,507 317,349 Reconciliation of funds- Total funds brought forward Nel movement in funds 381,342 {55,5591 1,206,796 536,066 1,588.138 480,507 1,270,789 317,349 Total funds carried fonvard 325,783 1,742,862 2,068.645 1,588, 138 The Consolidated slalemenl of financial a¢livilies includes all gains and losses recognised in the year. The notes on pages 24 10 52 form part of these financial slalements. Page 18

COLCHESTER MERCURY THEATRE LIMITED REGISTERED NUMBER.. 441035 CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2025 2025 2024 Note Flxed assets Intangible assets Tangible assets 19,890 831,441 26,814 406,922 18 851,331 433. 736 Current assots Stocks Debtors Cash al bank and in hand 20 21 41,159 982,210 1,248.179 32,395 710,338 f,675,386 2.271.548 2,358. 119 Current Ilabilities Creditors.. amounts falling due within one year 22 11,054,234) (1, 185,982) Nat current assets 1,217,314 7, 172, 137 Total assets less current liabilities 2,068.645 1,605,8T3 Creditors- amounts f811ing due after more than one year 23 (7 7, 735) Net assets Èxcluding pension asset 2,068,645 1,588, 138 Total net assets 2.068,645 1,588, 138 Charity funds Restricted funds Unreslricled funds 25 325,783 381,342 Designated funds General funds 25 1.358,039 384,823 T50,926 455,8TO 25 Total unreslricled funds 25 1,742,862 7,206, 796 Total funds 2,068,645 1,588, 138 The TrLJStees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial slalemenls have been prepared in accordance with the provisions applicable lo entities subject lo the small comp8nies regime. Page 19

COLCHESTER MERCURY THEATRE LIMITED REGISTERED NUMBER.. 441035 CONSOLIDATED BALANCE SHEET ICONTINUEDI AS AT 31 MARCH 2025 The financial slalements iJii/2oL5 were approved and aulhorised for issue by the Trustees and signed on their behalf by.. on Mark Hoult-Allen Chair The notes on pages 24 to 52 form part of these financial ststements. Page 20

COLCHESTER MERCURY THEATRE LIMITED REGSSTERED NUMBER.. 441035 COMPANY BALANCE SHEET AS AT 31 MARCH 2025 2025 2024 Note Fixed assets Intangible assets Tangible assets Inveslrnents 17 18 19,720 831,441 200 26,474 406,922 200 851,361 433,596 Current assets Stocks Debtors 20 14,077 1.149,095 718,896 9,475 851,702 1,085,514 21 Cash at bank and in hand 1.882,068 1,946,69t Current liabilities Creditors.. amounts falling due within one year 22 1941.9811 (1.057,543J Net current assets 940.087 889,148 Total assats less current liabilities 1,791,448 1,322,744 Creditors.. amounts falling due after more than one year 23 (17, 735) Net assets excluding penslon asset 1.791,448 1,305,009 Total net assets 1.791,448 1,305,009 Charlty funds Restrieled funds 25 325,783 381,342 Unrestricted funds Designated funds General funds 25 1,358,039 107,626 750,926 172, 741 25 Totsl unreslricled funds 25 1,465,665 923, 667 Total funds 1,791,448 1,305,009 The Companls nel movement in funds for the year was £486,439 (2024 - £403,277). Page 21

COLCHESTER MERCURY THEATRE LIMITED REGISTERED NUMBER: 441035 COMPANY BALANCE SHEET {CONTINUEDI AS AT 31 MARCH 2025 The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respecl lo accounting records and preparation of financial stalemenls. The financial slalernenls have been prepared in accordance with the provisions applicable lo entities subject to the small companies regime. The financial slalements were I l]IzI lo￿5 approved and aulhorised for issue by the Trustees and signed on their behalf by.. on Mark Hoult-Allen Director The notes on pages 24 10 52 form part of these financial slatemenls. Page 22

COLCHESTER MERCURY THEATRE LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Note Cash flows from operating activities Nel cash generated from operating activities 28 380,503 727.809 Cash flows from investing activitie$ Interest received 17,732 {644.0071 13,338 (98, 726) Purchase of tangible & intangible fixed assets Net eash used in investing activities 1626,2751 184,7881 Cash flows from flnanclng activities Repayments of borrowing 1121,4351 (99,177) Net cash used in financing activities 1121.4351 199,1171 Change in cash and cash equivalents in the year Cash and cash equivalents al Ihg beginning of the year {367,207} 1,615.386 543,904 1,071,482 Cash and cash equivalents at the end of the year 29 1,248,179 1,615,386 The notes on pages 24 to 52 form part of these financial stslemgnls Page 23

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 General infomiation The charilablo 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 office is shown on page 1 of the financial stalemenls. Accounting policies 2.1 Basis of preparatlon of financial statements The financial slalements have been prepared in accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland IFRS 1021 (effective 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 10218nd Ihe Companies Act 2006. Colchester Mercury Theatre Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical Cost or transaction value unless otherwise staled in the relevant accounting policy. The Consolidated slalemenl of financial activities ISOFAI and Consolidated balance sheet consolidate the financial slalemenls of the Company and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis. The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented ils own Statement of financial activities in these financial statements. The financial statements are prepared in sterling which is the functional currency of the group. 2.2 Going concern The financial statements are prepared on a going concern basis which assumes that the charitable group will continue in operational existence for a period of at loasl one year from the dale of aulhorisation of these financial slalements. The Trustees have a reasonable expectation that the charity and group will have adequate resourees lo continue in operational existence for the foreseeable future. Each of the major funding bodies Arts Council England East, Essex County Council and Colchesler City Council have indicated that their support of the theatre will continue for the foreseeablè future. Page 24

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Icontinuedl 2.3 Income All incorne 15 recognised once the Group and Company has enlillemenl lo the income, il is probable that the income will be received and the amount of income receivabl8 can be measured reliably. Income from Charitable Activities - Comprises ticket income from performances and activities al the theatre and other venues as appropriate, income for community projects and hire of main house and studio all of which are recognised on a receivable basis. Box office income is recognised when productlDns lake place. Other trading activities Comprises income from trading associated with attgnding the theatre, royalties, lelling of the restaurant, bar and other areas and is rewgnised on a receivable basis. Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of enlillemenl of receipt, ils recognition is deferred and included in creditors as deferred income. Where enlitlemenl occurs before income is received, the income is accrued. Donations Comprises all income from donations, subscriptions and grants, including govemment grants. 11 is recognised on a receivable basis in the appropriate fund when Ihe¥e is enlillement lo the income. probability of receipt and the amount can be reliably measured. Income tax rocoverablo in relab'on to donations received under Gift Aid or deeds of covenant is recogr*ised al th8 limo of the donation. Government grants - where the charity receives government grants, il recognises this as income only where there is roasonable assurance that the charity will comply with the conditions allaching lo them and the grants will be received. This includes grants received from Arts Council England as they 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 receivable and to 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 construdive obligation lo transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in selllement and the amount of the obligation can be measijred reliably. Expenditure is classified by aclivily. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each aclivily. Direct and Support costs relating lo a single activity are allocalod directly lo that activity. Whère costs relate lo more than one activity they have been allocated on the basis of staff lime and resources consumed by each aclivily. Page 25

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (continued} 2.4 Expenditure (continued) Expenditure on r3ising funds represents the direct cost of trading associated with attending 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 to charitsble activities relate lo direel expenditure on performances and activities al the theatre and other venues as appropriate. 11 also includes costs relating lo wmmunily projects and auditorium and studio hire together with allocated support costs. Govemance costs represents direct expenditure of 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 offer is conditional, such grants being recognised as expenditure when the conditions allaching are fulfilled. Grants offered subject to conditions which have not been met al the year end are noted as a comrnilmenl. bul not accrued as expenditure. All expenditure is inclusive of irrecoverable VAT. 2.5 Productions 11 For productions occurring wholly within one financial year box office and venue fees are recognised in that year and costs ar8 recognised as incurred. Typically costs are incurred in advance of revenue being generated. 21 Where a production spans the year-end and is expected to be105s making, the expected loss is re¢ognised in full in the year in which the loss is foreseen. 31 Where production set up costs have been incurred prior lo the year-end but the production has not yel opened, the sel up costs are carried forward at the balance sheet date as deferred production costs until such time 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 nolificalion of the interest paid or payable by the institution with whom the funds are deposited. 2.7 Foreign ¢urrencles Monetary assets and liabilities denominated in foreign currencies are translated into sterling al rates of exchange ruling at the reporting dale. Transactions In foreign currencies are translated into sterling at the rate ruling on the dale of the transaction. Exchange gains and losses are recognised in the Consolidated slatement of financial activities. Page 26

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies {contlnuedl 2.8 Intangible assets and amortlsatlon Intangible assets costing £500 or more are capilalised and recognised when future economic benefits are probable, and the cost or value of the asset can be measured reliably. Intsngible assets are initially recognised al cost. After recognition, under the cost model, intangible assets are measured al cost less any accumulated amortisalion and any accumulsled impairment losses. Intangible assets comprise the cost of a licence enabling the premises lo 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 of impairment. If such indication exists, the recoverable amount of the asset is determined lo be the higher ol it5 fair value less costs lo sell and ils value in use. An impairment loss is recognised where the carrwng amount eX￿ed$ the recoverable amount. Amortisation is provided on intangible assets at rates Calculated to write off the cost of each asset on a slraighl-line basis over its expected useful life. Amortisalion is provided on the following bases.. Licences Websit& Computer sofiware 10 /0 Straight Line 10 /0 Straight Line 10 /0 Straight Line 2.9 Tangible flxed assets and depreciation Tangible fixed assets costing £500 or more are capilalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measLJred al cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of wsl. At each reporting date the Company assesses whether there is any indication of impaiment. If such inclicalion exists, the recoverable amount of the asset is determined lo be the higher of its fair value less costs lo sell and ils value in use. An impairment loss is recognised where the caryng amount exceeds the rocoverable amount. Page 27

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting pollcles Icontinuedl 2.9 Tangible flxed assets and depreciation Icontinuedl Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their eslimaled useful lives, using the slraight-line method. Dep￿Ciall0n is provided on the following bases.. Large capital projects Studio development Theatre equipment Capital Grant 150/. Straight Line 15 _ 33.330/. Straight Line 150/. Straight Line 150/. 33.33Q/. Slraighl Line The assets. residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting data. Costs incurred relating to the large capital dèvelopment and re-furbishment of the Theatre have been capilalised. These will be depreciated once the developmenl is complete. Within the large Capital development, costs have been incurred relating lo the refurbishment of temporary office accommodation. These are being depreciated in line with the eompanls depreciation policy of 15 /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 carryng amount and are recognised in the Consolidated statement of financial activities. 2.10 Investments Fixed asset investments are a form of financi81 instrument and are initially recognised at their transaction cost and subsequently measured al fair value at the Balance sheet dale, unless the value eannol be measured reliably in which case il is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as 'GainsllLosses} on investments, in the Consolidated slalemenl of financial aclivilies. Investments in subsidiaries are valued at cost less provision for impaim)ent. 2.11 Stocks Stocks of rnerchandise and other goods for resale are valued at the lower of cost and nel realisable value, after making due allowance for obsolete and slow moving items. 2.12 Debtors Trade and other debtors are recognised at the settlemenl amount after any trade discount offered. P￿p8yMentS are valued al the amount prepaid nel of any trade dis¢ounls due. Debtors receivable within one year of the reporting dale are Carried initially at their transaction price and subsequently al selllemenl value. Debtors that are ieceivable in more than one year and not subject lo a rnarkel rale of interest are measured at the present value of the expected future receipts. Page 28

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (continued) 2.13 Cash at bank and in hand Cash at bank and in hand includes cash and short-term highly liquid investments with a short malurily of three months or less from the date of acquisition or opening of the deposit or similar account. 2.14 Liabilitles and provisions Liabilities are recognised when there is an obligation at the Balan￿ sheet dale as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors payable within one year of the reporting date are carried initially al their transaction price and subsequently al settlement value. Creditors payable in more than one year and not subject lo a market rate of interest are measured at the present value of the expected future payment discount&d at a market rate of interest. Liabilitie5 are recognised at the amount that the Company anticipates it will pay to sellle th& debt or the amount Il has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required lo settle the obligation. Wherg the effect of the lime value of money is material, the provision is basod on the present value of those amounts, discounted al the pre-tax discount rale that reflects tho risks specific to the liability. The unwinding of the discount is recognised in the Consolidated slalement of financial activities as a finance cost. 2.15 Financial instruments The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised al transaction value and subsequently measurod al their selllemenl value with the exception of bank loans which are subsequently measured al amortised cost using the effective interest method. 2.16 Operating leases Rentals paid under opemting leases are charged lo the Consolidated statement 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 fund in respe¢l of the year. The Group offers a voluntary stakeholders scheme lo ils employees and those on short term equity contracts. The company contribution costs are included in the Statement of Financial Activities as they fall due. Page 29

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Icontinuedl 2.18 Fund accounting General funds are unreslricled funds which are available for use al the discrotion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes. Designated funds compris& unrestricted funds that have been sel aside by the Trustees for particular purposes. The aim and use of each designated fund is sel out in the notes to the financial slalements. Reslricled funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is sel out in the notes lo the financial statements. Investment income, gains and losses are all(Icaled to the appropriate fund. Crltlcal accounting estimates and areas of judgment Eslimales and judgments are Continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions.. The Company makes estimates and assumptions conceming the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. Useful economic life - the annual depreciation charge for tangible and intangible fixed assets is sensitive lo changes in the eslimaled useful economic lives and residual values of the assets. The useful economic lives, amortisalion and residual values are re-assessed annually. They are amended when necessary to reflect current estimates based on technological advancement, future investment, economic ulilisalion and the physical coridition of the assets. Page 30

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Income from donations and legacies Restricted Unrestricted funds funds 2025 2025 Total funds 2025 Total funds 2024 Voluntary income - see note below Grants Individuals & Corporate memberships 730,948 66,426 1,059,857 1,790,805 66,426 81,914 1,514,920 25,721 178,935 81,914 Total 2025 797,374 1,141.771 1,939,145 1,659,576 Total 2024 480, 784 1, 1 T8. [92 1,659,576 Voluntary income Restrl¢ted Unrestricted funds funds 2025 2025 Total funds 2025 Total funds 2024 Arts Council England - core Colchesler Borough Council - core Essex County Council - core Arts Council England project grant SELEP - project grant Tendring District Council project grant Essex County Council - project grant Others - see Statement of funds Note 25 791,682 168,175 100,000 791,682 168,175 100,000 148,500 470,649 9,912 50,000 51,887 791,682 768,175 700,000 360,000 148,500 470,649 9,912 50,000 51,887 95,063 730,948 1,059,857 1,790,80S 1,514,920 Total 2024 455,063 1,059,857 1,514,920 Page 31

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Income from charitable activities Unrestricted funds 2025 Total funds 2025 Total funds 2024 Box office receipts Theatre rentals and hires 2,059,577 181,790 168,188 620 2,059,577 181,790 168,188 620 2,074,651 7 15,609 131,601 2,841 335,762 Community and Education Royalties income Other income 438,351 438,351 Total 2025 2,848,526 2,848,526 2,660,464 Total 2024 2,660,464 2, 660,464 Page 32

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Income from other trading activilies Income from non charitable trading activities Unrestricted funds 2025 Total funds 2025 Total funds 2024 Trading associated with attending theatre performances and activities 751,812 751.812 807, 762 Total 2024 807, 762 897, 762 Investment income Unrestricted funds 2025 Totsl fund$ 2025 Total funds 2024 Investment income 17.732 17,732 13.338 Total 2024 13,338 73,338 Other in¢omlng resources Unrestricted funds 2025 Total funds 2025 Tol81 funds 2024 Theatre Tax Relief claims 277,197 277,197 283,718 Total 2024 283,118 283, 7 18 Page 33

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 10. Expenditure on raising funds Unrestricted funds 2025 Total funds 2025 Total funds 2024 Commercial work costs 30.795 30,795 7,289 Total 2024 7,289 T,289 Other raising funds expendlture Unrestricted funds 2025 Total funds 2025 Total funds 2024 Bar and front of house costs Bar and front of house staff costs 224,325 336,129 39,119 224,325 336,129 39,119 347,451 297,402 29,953 Front of house support staff costs Total 2025 599,573 599,573 674,806 Total 2024 674,806 674,806 Analysls of grants Grants to Individuals 2025 Total funds 2025 Total funds 2024 Grants, Community and Education 2.164 2,164 1,000 All grants made in 2024 were to individuals. Note 13 summarises how grant funding of activities has been allocated within the Slalement of Financial Activities. Page 34

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 12. Analysis of expenditure on charitable activitie$ Summary by fund type Re$tricled Unrestricted funds funds 2025 2025 Total 2025 Total 2024 Main House Touring Community and Education 2,713 600 3,623,823 436,277 456,749 3,626,536 436,877 660.124 3. 525,806 397, 764 507,244 203,375 206,688 4,516,849 4,723.537 4,424,814 Total 2024 85, 791 4,339,023 4,424,814 13. Analysis of expenditure by activities Activities undertaken directly 2025 Grant funding of activities 2025 Support costs 202S Total funds 2025 Total funds 2024 Main House 3,296,208 436,877 657,960 330,328 3,626,536 436.877 660,124 3,525,806 397, 764 501,244 Touring Community and Education 2,164 4,391,045 2,164 330,328 4,723.537 4,424,814 Total 2024 4, 155,295 1,000 268,519 4,424,814 Page 35

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 13. Analysis of expenditure by activities Icontinuedl Analysis of direct costs Community and Touring Education 2025 2025 Total funds 2025 Total funds 2024 Main House 2025 Staff costs Depreciation & amortisalion Production costs 1,390,234 181,131 1,204,253 328,511 313 269,981 22,642 79,220 41,064 178,666 22,642 160,443 41,064 1,838,881 226,415 1,443,916 410,639 313 230,632 121.777 118,472 7.973,620 133,362 7,741,580 442,911 25,751 165,845 124,312 141,914 Theatre running costs Capiial development P&L costs Community & Education Marketing Irrecoverable VAT 230,632 12,666 11,847 96,988 94,778 12,123 11,847 3,296,208 436,877 657,960 4,391,045 4, 155,295 Total 2024 3,257,287 397, 764 500,244 4, 155,295 Analysis of support Costs Total funds 2025 Total funds 2024 Finance & Administration 179,513 61,239 14,930 8.546 25,981 40,119 169,447 23,163 73,125 10,293 22,538 29,953 Recruitment and training Travel and entertaining Licences and subsciplions Front of House staff costs 330,328 268,579 Page 36

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 14. Auditor's remuneration 2025 2024 Fees payable lo the Companys auditor for the audit of the Companys annual accounts 8,000 8,000 15. Staff costs Group and Company 2025 Group and Company 2024 Wages and salaries Social security costs Contribution lo defined contribution pension schemos Redundancy and termination costs 2,003,530 142,419 37,459 30,721 2,123,111 141,916 35,948 2,214.129 2,300,975 Termination costs relate to an ex-gralia settlement paid lo an employee in the year. The average number of persons employed by the Group and Company during the year was as follows: Group and Company 2025 No. Group and Company 2024 No. 98 96 All pension costs are allocated to unreslriclgd funds. The average number of employees excludes actors and other freelance staff. The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. Group and Company 2025 No. Group and Company 2024 ND. In the band £60.001 £70,000 The key management personnel of the company comprise the Chief Executive and senior managem&nl team- Deputy Executive Director. Creative Director, Finance Director, Development Director and Operations Direelor. The total employee benefits including employer pension contributions and lerminalion payments of the key management personnel of the company were £349,85012024.. £404,524). Page 37

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 TTUStees' remuneration and expenses During the year, no Trustees Teceived any remuneration or other benefits (2024 - £NIL). During the year ended 31 March 2025, expenses lotalling £513 were reimbursed or paid directly lo 1 Trusleelsl (2024 - £284 to 2 Trustees). This was in relation to travel expenses. 17. Intangible assets Group Website Llcences Software Total Cost Al 1 April 2024 19,775 1,700 47,769 69.244 Al 31 March 2025 19,775 1.700 47,769 69,244 Amortisation Al 1 April 2024 Charge for the year 7,910 1.977 1.360 170 33,160 4,777 42,430 6.924 At 31 March 2025 9.887 1.530 37,937 49,354 Net book value At 31 March 2025 9,888 170 9,832 19,890 At 37 March 2024 11,865 340 14,609 26,814 Page 38

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Intangible assets Icontinuedl Company Website Softwarg Total Cost Al 1 April 2024 19,775 47,769 67,544 Al 31 March 2025 19.775 47,769 67,544 Amortisation Al 1 April 2024 Charge for the year 7,910 1,977 33,160 4,777 41,070 6,7S4 Al 31 March 2025 9,887 37.937 47,824 Net book value Al 31 March 2025 9,888 9,832 19,720 At 31 March 2024 11,865 14,609 26,4T4 Page 39

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 18. Tangible fixed assets Group and Company Large capital Studio projects development Theatre Assets under •qulpment construction Total Cost or valuation Al 1 April 2024 Additions Transfers between classes 769,014 441,381 31,301 613.908 919,406 202.626 31,301 2,333,629 644,007 {31,3011 At 31 March 2025 1,241.696 613,908 1,122,032 2,977,636 Depreciation At 1 April 2024 Charge for the year 651,786 104,884 613.908 661,013 114,604 1,926,707 219,488 At 31 March 2025 756,670 613,908 775,617 2,146,19S Net book value Al 31 March 2025 485,026 346,415 831,441 Al 31 March 2024 117,228 258.393 31,301 406,922 The companys bankers, Barclays Bank PLC, currently hold a debenture over the assets of the company, dated 23rd July 1997. The group operates from the theatre premises which is leased from Colchester City Council under a 40 year lease that commenced in September 2022. The premises are not recognised as an asset of the group 8nd the financial commitment has been disclosed in the note lo the accounts. Page 40

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 19. Fixed asset investments Investments in subsidtary companies Company Cost or valuatlon Al 1 April 2024 200 At 31 March 2025 200 Ngt book value Al 31 March 2025 200 Al 31 March 2Q24 200 Principal subsidiaries The following were SLJbsidiary undertakings of the Company.. Names Company number Class of shares Holdlng Included in consolidation Colchesler Mercury Productions Ltd Colchesler Mercury Trading Lld 09144431 09144550 Ordinary Ordinary 1 OOO/o Yes The financial results of the subsidiaries for the year were.. Names ProfitllLossl for the year Net assets Colchester Mercury Productions Ltd Colchester Mercury Trading Ltd 277,197 203,011 277,297 100 20. Stocks Group Group 2024 Company 2025 Company 2024 2025 Bar, cafe, workshop and lighting 41,159 32,395 14,077 9.475 Page 41

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 21. Debtors Group 2025 Group 2024 Company Company 2024 2025 Due within one year Trade debtors Amounts owed by group undertakings other debtors Prepayments and accrued income Prepayments in respect of future show costs carried fomard 24,603 89,464 17,436 754,159 217,569 50.364 72,062 441,933 55,162 226,836 797,558 50,482 338,329 226,836 109,567 55, 709 109,567 55, 709 982,210 710,338 1.149,095 851,702 22. Creditors: Amounts falling due wlthln one year Group Group 2024 Company 2025 Company 2024 2025 Trade creditors 152,502 92,537 139.009 167,695 89,427 158,420 103, 7QO 666, 740 130,354 92,537 60,557 144,429 89,427 57,365 103, 700 662,622 Other taxation and social security Other creditors NESTA loan Accwals and deferred income 670.186 658,533 1,054.234 1,185,982 941,981 f,057,543 GTOUP 2025 Group 2024 Company Company 2024 2025 Deferred income al 1 April 2024 Resources deferred during the year Amounts released from previous periods 581,603 456,619 577,485 449,979 2,395,665 2,526,764 2.289,758 2.418.332 {2,449,4591 (2,407, 780) {2,341,1131 (2,290,826) 527,809 587,603 526,130 577,485 Deferred income derives from the box office in advance Page 42

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 23. Creditors- Amounts falllng due after more than one year Group Group 2024 Company 2025 Company 2024 2025 NESTA loan 17,735 7T,735 The NESTA loan was an unsecured loan. Interest was charged al 4.5Q/o per annum. 24. Financial instruments Group Gmup 2024 Company Company 2024 2025 2025 Financial assets Financial assets measured al fair value through income and expenditure 1.248,179 1,615,386 718,896 1,085,514 Financial assets measured at fair value through income and expenditure comprise bank and cash balances. Page 43

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 25. Statement of funds Statement of funds - current year Balance at 1 Aprll 2024 Transfers Balan¢e at 31 inlout March 2025 Income Expenditure Unrestricted funds Designated funds Equipment Organisational development ArtisliclAudience Development projects Hardship funds Theatre equipment- capitalised Large proje¢ls- capitalised Intangible assets - capitalised 2nd floor extension - capilalised 22,185 233,810 102,815 105,000 125,000 278,790 160.020) 55.493 6.041 258,395 117.227 26.474 31.301 16.2821 12.1641 {114.606} 133.983} 16,7541 170.902} so,000 99,211 3,877 346,415 83,244 19,720 401,782 202,626 441,383 750,926 {294.711} 901,824 1,358,039 General funds Operational Share capital 455,850 20 5.037.038 (4,852.506} 1255,5791 384,803 20 455,870 5.037.038 (4,852.506} 1255,5791 384,823 Total Unrestricted funds 1.206,796 5,037,038 {5,147.2171 646,245 1,742,862 Restricted funds Colchesler Catalyst Essex County Council - Essex Carers Project Tamasha Essex County Council Holiday Clubs 4,400 4,400 9,600 15.4661 11,2201 2,914 217 217 12,932 43,894 19.221 128.8441 13,7111 14,0151 TNL Community Project Fund Essex County Council - projocl grant Colchester LCEP Project Good Chance Project 11,035 50,000 25,000 17,887 50,000 6,774 118.2261 116.3511 11,5361 Page 44

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 25. Statement of funds Icontinuedl Statement of funds current year (¢ontinuedl Balance at 1 April 2024 Transfers 8alan¢e at 31 inlout March 2025 Income Expenditure Colchesler City Council Hiscox Foundation Hervey Benham Trust SELEP12nd Floor) Arts Council England - project grant Tendring District Council Community 360 Mercury Rising fundraising Arts Council England12nd Floorl 5,000 Is.000) 6.000 3.000 470,649 6,000 13,000) {470,6491 360,000 9.912 1.500 313 199,262) 119,824) {1,1811 (3131 116,29SI 244,443 9,912 {3191 148,500 1148,5001 381.342 797,374 1206.6881 1646,2451 325,783 Total of funds 1,588,138 5.834,412 15,353,905) 2.068,64S Page 45

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 25. Statement of funds {contlnued} Deslgnated funds Equipment- Designated for the purchase of capital items within th8 next 5 years. Organisational development- Designated lo allow for organisalional projects within the next 5 years_ Artisliclaudience development projects projects to be utilised in the next 5 years. Designated for specific artistic and audience development Hardship fund To offer 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 of assets purchased using designated resetves which are not included in reslricled funds. Restricted funds These relate lo funding received for specific projects, as wo11 as those listed below.. Arts Council £360,000 contribution towards the Mercury Creatives Project. This is 3 3 year project and funds will be utilised as expenditure occurs over that period. Transfers between funds in the year New allocations from unreslricled funds of £105,000 lo the Organisation development fund and £50,000 lo the Artisticlaudience development project. SELEP transfer 01 £470,649 from restricted lo designated funds lo reflect the expenditure on fixed assets. Arts Council England transfer of £148,500 from restricted to designalod funds to reflect the expenditure on fixed assets. Within designated funds £24,860 moved from the designated purchase fund to designated fixed assets. Restricted funds totalling £27,096 were used to support core costs through transfers lo unreslricled reserves. Page 46

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 25. Statement of funds Icontinuedl Statemgnt of funds - prior year Balance a 31 March 2024 Balance at l Apnl 2023 Transfers in/out Income Expenditure Unrestrlcted funds Designated funds Equipment Organisalional dev8lopmenl ArtisliclAudience Development projects Hardship funds Theatre equipment- Capilalised Large projects- capilalised Inlangiblo assets - capilalised 2nd floor extension - capitalised 22,185 208.810 22,185 233,870 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 37,301 (1,000) (87,621) (38,817) (6, 754) 68,232 542 29,351 T7 1, 993 (134, 192) 1 T3, 125 750,926 General funds Operational Share capital 474,025 20 4,943,474 (4,886,926) (74, 723) 455,850 20 474,045 4,943,474 (4,886,926) (T4, 723) 455,870 Total Unrestrictad funds 7, 186,Q38 4,943.474 (5,021, 118) 98,402 1,206, 7g6 Restricted funds Colchesler Catalyst Colchester LCEP Project Tamasha 4,400 20,966 217 4,400 6,000 (26,966) 217 Essex County Council - Summer Schools Paul Hamlyn Foundation One Colehesler Essex Community Foundation Speech Bubbles 6,431 2,872 1,570 8,975 6,000 9, 721 2,000 (17,013) [2, 227) (450) (5,060) (3,848) (5, 139) (2, 645) (1, 720) (3,915) (3, 152) 1,000 Page 47

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 25. Statement of funds Icontinuedl Statement of funds - prior year {continued} Balance al 37 March 2024 Balance al 1 April 2023 Transf8rs in/oul Income Expenditure Co1chester City Council National Lottery D'oyly Carte SELEP Arts Council England - project grant The Wolfson Foundation Tendring District Council FSJ Trust Community 360 Mercury Rising fundraising 5,000 1.017 1,239 10,000 (8, 796) (1,804) (1,017) (459) (29,351) 5,000 (780) 29,351 360,OQO 49,800 9,912 1,500 1,500 360,000 (49,800) 9,g12 (1.500) f,500 313 26,064 (25. 751) 84,751 480, 784 (85, 797) (98,402) 387,342 Total of fvnds 1,270,789 5,424,258 (5, 706,909) 1,588, 138 26. Summary offunds Summary offunds - current year Balance at 1 April 2024 Transfers Balance at 31 inlout March 2025 Income Exp8ndlture Designated funds General funds Restricted funds 750,926 455,870 381,342 1294,7111 14,852,506) (206,6881 901,824 1255,5791 1646,2451 1,358,039 384,823 325,783 5,037,038 797,374 1,588,138 5.834,412 15,353,905} 2,068,645 Page 48

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 26. Summary of funds (continued) Summary offunds- prior year Balance al 31 March 2024 Balance al l Apnl 2023 Transfers in/oul Income Expenditure Designated funds General funds Restricted ftjnds 711,993 474,045 84,751 f734, 192) 4,943,474 (4,886, 926) 480, 784 (85, 797) 173, 125 (74, 723) (98,402) 750,926 455,870 381,342 1,270, 789 5,424,258 (5, 706,909) 1,588, 138 27. Analysis of net assets between funds Analysis of net assets between funds - current year Restricted Unrestricted tunds funds 2025 2025 Total funds 2025 Tangible fixed assets Inlangiblo fixed assets Current assets Creditors due within one year 831,441 831.441 19,890 19,890 1,945,765 2,271,548 11,054,234) {1,054.2341 325,783 Total 325.783 1,742,862 2,068,645 Analysis of net assets between funds - prlor year Restricted Unreslri¢t8d funds funds 2024 2024 Total funds 2024 Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year Creditors dije in more than one year 4Q6,922 406,922 26,814 26,814 1.976, 777 2,358, 119 (1, 185,982) (1, 185,982) [17, 735) (7 7, 735) 381,342 Total 381,342 1,206, T96 1,588. 138 Page 49

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 28. Reconciliation of net movement in funds to nel Cash flow from operating activities Group 2025 Group 2C124 Net incomo for the year18s per Statement of Financial Activiliesl 480,507 317,349 Adjustments for: Depreciation charges Amortisalion Charges Interest receivod Decreasellincreasel in stocks Decreasellincreasel in debtors Decrease in creditors 219,488 6,924 117,7321 18.7641 {271.872) 128.048} 126,439 6,925 (13,338) 8,825 362,090 (80,481) Net cash providad by operatlng activities 380.503 727,809 29. Analysis of cash and cash equivalents Group 2025 Group 2024 Cash in hand 1,248.179 1,615,386 Total cash and cash equivalents 1,248,179 7,615,386 30. Analysls of Changes in net debt At 1 April 2024 Cash flows At 31 March 2025 Cash al bank and in hand Debt due within 1 year Debt due after 1 year 1,615,386 1103,7001 117,7351 {367,2071 103,700 17,735 1,248,179 1,493,951 1245,7721 1,248,179 Page 50

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 31. Pension cornmitments The group operates 8 defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group lo the fund and amounted lo £37,45912024.. £35,9481. Contributions lotalling £8,006 12024.. £8,700) were payabl& lo the fund al the balance sheet dale and are included in creditors. 32. Operating lease commitments Al 31 March 2025 the Group and the Company had commitments to make future minimurn lease payments under non-cancellable opefating leases as follows.. Group Group 2024 Company 2025 Company 2024 2025 Not later than 1 year Later than l year and not later than 5 years 22,419 46,697 13,069 45,741 22,419 46,697 73,069 45,741 69,116 58,810 69,116 58,810 The group operat&s from the theatre premises which is leased from Colchestèr City Council. A 40 year lease commenced in September 2022 for a peppercom rent. Under this agreement, there is an annual reserve fund contribution from the group lo Colchester City Council of £20,000, towards repair, maintenance and replacement of some parts of the propety. The financial commitment over the remaining term of the lease will vary, with a wntribulion review every 5 years. The contribution expense is recognised in expenditure on charitable activities in the Statement of Financial Activities and is not included in the operating lease cornmitmenl tsble above. Page 51

COLCHESTER MERCURY THEATRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 33. Related party transactions During the year the groLJP purchased goodslservices lolalling £148 12024.. £nill from We Are The Minories, a Charity in which Julia Stephen, a Trustee, is also a Trustee. There was no balance OLJtstanding al year end. During the year, Colchesler Mercury Theatre Limited had transactions for income tolalling £1.150 12024.. £763} and expenditure totalling £6,244 12024.. £7,211) with Colchester Mercury Trading Ltd and transactions for income lotalling £1,280,122 12024.. £1,252,129) and expondilure lotalling £1,282,611 12024.. £1,255,925) with Colchesler Mercury Productions Ltd. Colchesler Mercury Theatre Limited also received income in the year by way of dislribulions under gift aid from each subsidiary, totalling £203,011 12024.. £218,325) from Colchesler Mercury Trading Ltd and £283,11812024.. £369,026) from Colchester Mercury Productions Ltd. Al the year end £473,353 12024.. £444,255) was due from Mercury Trading Limited and £280,806 was due from Colchester Mercury Productions Ltd 12024: £2,322 was due lo Colchesler Mercury ProdLJCtions Lldl. All transactions and balances with the subsidiaries are consolidated in these group accounts. 34. Share capital 2025 2024 Issued and fully paid up share capital Ordinary £1 shares 20 20 20 20 Page 52