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