Company number: 00556251 Charity Number: 233801 

## Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

Report and financial statements For the year ended 31 March 2021 




**Pioneer Theatres Limited (Theatre Royal Stratford East)** 

## **Contents** 

## **For the year ended 31 March 2021** 

Reference and administrative information  ....................................................................................................... 1 Chair’s statement  .............................................................................................................................................. 2 Trustees’ annual report  ..................................................................................................................................... 3 Independent auditor’s report  .......................................................................................................................... 12 Consolidated statement of financial activities (incorporating an income and expenditure account)  ............ 17 Balance sheets  ................................................................................................................................................. 18 Consolidated statement of cash flows ............................................................................................................. 19 Notes to the financial statements  ................................................................................................................... 20 



**Pioneer Theatres Limited (Theatre Royal Stratford East)** 

## **Reference and administrative information** 

**For the year ended 31 March 2021** 

|**Company number**|00556251 – incorporated in the United Kingdom|
|---|---|
|**Charity number**|233801 – registered in England and Wales|
|**Registered office and**|Gerry Raffles Square|
|**Operational address**|Stratford|
||London|
||E15 1BN|
|**Trading name**|Theatre Royal Stratford East|
|**Trustees**|Trustees, who are also directors under company law, who served during the year|
||and up to the date of this report were as follows:|
||The Rt. Hon. Dame Margaret Hodge, Chair|
||Mina Barber (resigned 24 March 2021)|
||Andrew Cowan|
||Cllr Joshua Garfield|
||Dr Elizabeth Glyn|
||Simon Haynes|
||Christopher Hird|
||Baroness Denise Kingsmill (resigned 16 June 2021)|
||Deborah Mattinson|
||Martin Pilgrim MBE|
||Owen Pringle (resigned 16 June 2021)|
||Bryan Raven|
||Peter Wilson|
|**Artistic Director**|Nadia Fall|
|**Executive Director**|Eleanor Lang|
|**Bankers**|Natwest Bank plc,|
||1 Stratford Broadway|
||London|
||E15 4DX|
|**Solicitors**|Harbottle & Lewis|
||14 Hanover Square|
||London|
||W1R 0BE|
|**Auditor**|Sayer Vincent LLP|
||Chartered Accountants and Statutory Auditor|
||Invicta House|
||108 – 114 Golden Lane|
||LONDON|
||EC1Y 0TL|



1 



**Pioneer Theatres Limited (Theatre Royal Stratford East)** 

## **Chair’s Statement** 

## **For the year ended 31 March 2021** 

## **Chair’s Statement** 

2020-21 has been an unprecedented year, with COVID-19 impacting dramatically both locally and globally. The theatre sector has been particularly badly affected, with live indoor performances to an audience banned in the UK for most of the year. The constant changes in guidance have required continual replanning. The theatre has had to relook at its business model, its budgets, and sadly we were forced to make a small number of redundancies in November 2020. 

Despite the challenges of the year, Theatre Royal Stratford East has continued to make work throughout the pandemic. Obviously much of our work has been digital, but we have been determined and able to expand our work in the community, particularly focused on young people in Newham who have been so badly affected by the pandemic. 

Much of the work responded to issues of the moment, including a response piece from key workers, which was made into a film, _No Masks_ , which we produced with Sky Arts.  We also created 846 – 14 short audio pieces that responded to the killing of George Floyd. When we were allowed to have audiences we did – partnering with Greenwich & Docklands Festival on _846 Live_ , and bringing Thick Skin’s virtual reality piece, _Petrichor_ to the theatre in December. Alongside this our Learning & Participation work kept going through lockdown, ensuring that our young people’s programmes continued – online, and as soon as allowed faceto-face. We helped schools by providing additional resources to support home learning and we continued to engage with our community groups, providing contact during lockdowns. 

On behalf of the Board I would like to warmly acknowledge applaud the work and dedication of the whole team during this particularly challenging year, led by Nadia Fall, Artistic Director and Chief Executive and supported by Eleanor Lang, our Executive Director. From those on furlough, to those working longer hours to keep the organisation going, the year has not been easy for anyone. I would also like to extend my thanks to the trustees, who have provided additional support to the organisation during this time. 

The trustees are also particularly grateful to Arts Council England and the Borough of Newham for their ongoing support, as well as to all our supporters, who have continued to stay with us during this time of closure. That support has been particularly invaluable this year. 

Rt Hon Dame Margaret Hodge MP Chair 

2 



**Pioneer Theatres Limited (Theatre Royal Stratford East)** 

**Trustees’ annual report** 

## **For the year ended 31 March 2021** 

The trustees present their report and the audited group financial statements for the year ending 31 March 2021. The financial statements have been prepared in accordance with current statutory requirements; Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS I 02) (effective I January 2015). 

## **Principal activities** 

The objects of the charity as set out in the Articles of Association are: 

_to promote, maintain, improve, and advance education, particularly by the production of educational plays and the encouragement of the Arts, including the arts of drama, mime, dance, singing and music, and to formulate, prepare and establish schemes therefor provided that all objects of the Company shall be of a charitable nature._ 

## **Structure** 

Pioneer Theatres Limited (trading as Theatre Royal Stratford East) is constituted as a company limited by guarantee and is governed by its Memorandum and Articles of Association as amended 18th November 2015. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £10 per member of the charitable company. 

Pioneer Theatres Limited has two wholly owned subsidiaries. The results of Stratford East Trading Limited are consolidated into these financial statements. Stratford East Productions Limited is a dormant company. 

## **Our aims** 

Theatre Royal Stratford East (TRSE) has five key aims: 

- to contribute to the development of a vibrant contemporary theatre industry that reflects the broad cultural diversity of urban British life; 

- to place excellence, accessibility, diversity and education at the centre of the artistic offer; 

- to celebrate the value of arts and creativity within the community with a programme of UK and international artists for the performance of drama, dance, comedy and music; 

- to contribute towards social cohesion and the development of a harmonious and tolerant society; and 

- to play a role in the social and economic development of East London, building on its role as a cultural flagship with a national and international reputation. 

## **Objectives** 

The TRSE 2018-22 business plan outlines the following key objectives: 

- Produce work of the highest artistic quality that is: 

   - Popular: Theatre of the highest quality that seeks to move and entertain everyone 

   - Political: Work that provokes discourse about the world we live in and our place within it 

   - Inclusive: Stories that are representative of our East London home and speaks to a wider London audience and which strive for an expansive and imaginative portrayal of its diverse communities 

- Build our audiences and increase re-attendance 

- Ensure diversity and inclusion is central to everything we do 

- Invest in our Grade 2 listed building 

3 



**Pioneer Theatres Limited (Theatre Royal Stratford East)** 

## **Trustees’ annual report** 

## **For the year ended 31 March 2021** 

- Be environmentally sustainable 

- Nurture and develop our staff 

- Create and champion opportunities for a diverse range of artists 

- Develop an emerging generation of talent 

- Present a year-round participation programme for people of all ages 

- Play a leading role within Newham and the East London area 

- Raise the profile of TRSE 

- Become financially resilient 

## **ACTIVITY IN 2020-21** 

## **Public Benefit** 

Over the course of the year TRSE has fulfilled its charitable objectives through continuing to engage with the widest possible audiences, predominately via digital interaction, while also continuing its local work in Newham. This was a year like no other, but in 2020-21: 

- 159,602 people watched or listened to our online work 

- 21 artists were commissioned 

- 33 online short films of our audio pieces were made 

- 1 Sky Arts film was made 

- 2 productions with 31 performances 

- 11 pieces of digital content were made for young people 

- 681 people saw live work 

- Ran regular sessions for 146 young people 

- Ran regular community sessions for 69 adults 

- Screened our 2019 pantomime in Newham schools and care homes 

- Employed 111 freelancers 

- Set up a freelancer network, providing support and professional development 

- Acted as a cultural leader and collaborated with other Arts organisations to make the case for cultural support during the pandemic 

- Won an Olivier Awards for Noyes Fludde 

## **Artistic Programme** 

The 2020-21 artistic programme had to be completely changed, with theatres required to close their doors to live audiences for the majority of the year. We cancelled four productions and postponed two more. We hoped to open with a festival of monologues and duologues in January 2021, but due to the third lockdown these were also postponed to later in 2021. 

The programme during the year included: 

**No Masks:** A community call out for key worker stories, creating a ‘wall’ of testimonies on our website. Our Youth Theatres made a sister piece, telling the stories of the children of key workers. 

**No Masks film:** 5 testimonies where then adapted in a Sky Arts Film which premiered in September 2020. The film wove five stories together, and was written by Nadia Fall and Rebecca Lenkiewicz, directed by Nadia Fall and starred Lorraine Ashbourne, Anna Calder-Marshall, Anya Chalotra, Russell Tovey and Eamonn Walker, with Elijah Melhado from Stratford East's Youth Theatre. 

4 



**Pioneer Theatres Limited (Theatre Royal Stratford East)** 

## **Trustees’ annual report** 

## **For the year ended 31 March 2021** 

**846:** 14 audio pieces from global majority writers, in response to the killing of George Floyd and the Black Lives Matter movement. Writers were: Samina Baig, Gurpreet Kaur Bhati, Eddie Botosio, Ishy Din, Clint Dyer, Nathan Powell, Lettie Precious, Avril E Russell, Carol Russell, Sumera Srivastav, Selina Thompson, David KS Tse, Nat Marcello White and Roy Williams 

The piece was directed by Ola Ince with soundscape by Donato Wharton 

**846 Live:** In partnership with Greenwich + Docklands International Festival and the Royal Docks team we developed five of the 846 pieces to be a live performance piece, performed in a basketball court in Woolwich as part of the festival in September 2020. 

**Petrichor:** In December 2020, ThickSkin brought their virtual reality piece, Petrichor, to the theatre. Audiences of up to 20 at a time sat on the stage, watching a pre recorded play. Audiences could also watch at home. 

**Press Play Here:** We commissioned five writers to write five monologues, originally to be performed around Newham. Due to increased lockdown, we filmed them at the theatre and distributed as online content. Writers commissioned were: Leo Butler, Robert Hyman, Alexander Luttley, Ambreen Razia and Daniel Ward. The pieces were directed by Eva Sampson and Sita Thomas. 

**Hysterical! A Hilarious History of Hysteria:** We did a call out in January 2021 to D/deaf and disabled artists who had commissions ready to go. We had a fantastic response, and wished we could commission more, but we commissioned Rebecca Buckle’s brilliant Hysterical!, making a filmed version performed by Rebecca, and directed by Mina Barber. 

## **Learning & Participation** 

2020-21 was a challenging year for the Learning & Participation team, having to move to online engagement with most of our groups. 

We moved our youth theatres online, continuing the programme through to summer 2020. This included creating three short films of performance poetry based on interviews with key worker children. In Autumn 2020 our youth theatre and Young Company restarted, and have continued to run, working towards a performance in summer 2021. We have been able to do a mixture of live and online work, responding to guidelines. We ran two live workshops sessions in Newham Youth Zones. During the first lockdown the team made regular contact via phone with young people and their families to support mental wellbeing. 

Our Young Actors programme showcased their work in a live zoom event, sharing pre recorded monologues they have worked on, with excellent industry attendance and audience of nearly 300. 

We ran two digital summer schools, and a digital summer project. In the autumn half term we ran an live workshop week on stage for young people, and ran an online half term project in February 2021. 

We produced regular support packs for schools during the first lockdown and created a virtual work experience offer for Newham schools. Subsequently we commission and produced a series of short films for schools, as digital resources to support their drama work. 

We have also continued our work with community groups, creating resource packs during the first lockdown and ensuring that those without easy digital access also had support. We worked in Silvertown 

5 



**Pioneer Theatres Limited (Theatre Royal Stratford East)** 

## **Trustees’ annual report** 

## **For the year ended 31 March 2021** 

producing a design workshop as part of the Fun Palaces weekend in October 2020. We moved our masterclass series online, and commissioned two artists to work with two local community groups in early 2021. 

## **Trading Subsidiary** 

Our bar has been mothballed for the whole of the 2020-21 year. There were some costs, as we initially furloughed bar staff. Our Bar Manager was made redundant in November 2020, with the realisation that the bar would not open until late 2021. 

## **Diversity** 

Diversity is at the heart of TRSE’s way of working and our business plan and is championed by the Board and senior team. The killing of George Floyd in May 2020 and the subsequent Black Live Matter protests shone a light across the industry on the anti-racism work that still needs to be done in the sector. In October 2020, Closing the Gap was formed, a task force led by people with lived experiences of racism. The group meet monthly try to implement ways to level the playing field between people with lived experiences of racism and white people at Stratford East and within the wider industry; both personally and professionally. This has include working on the language we use, and rejecting the use of the term BAME. 

We continue to programme work that reflects the diverse community in which we live. In particular this year we wanted to acknowledge that people who are ethnically and culturally diverse, and people who are D/deaf and disabled have been more adversely affected by the pandemic, and to reflect that in our programming. 61% of our creative teams and freelancers identified as people who are ethnically and culturally diverse, and 12% identified as D/deaf and disabled. 

We continue to be a committed partner in the Ramps on the Moon consortium and have begun work towards our Ramps on the Moon production in 2023. Providing more digital content has allowed us to reach a wider range of audiences and provide content to those who are shielding. We have captioned all of our digital content, and also begun to audio describe and provide BSL versions as well. We continue to resource an Agent for Change role to embed meaningful change across TRSE. 

## **Building** 

Our building was closed for most of the year, and we have carried out regularly building checks throughout the year, to ensure that the building did not deteriorate over this time. We also used the opportunity to carry out some building maintenance and redecoration. We had a leak over Christmas 2020 in the auditorium, resulting in an insurance claim. Fortunately, the damage was not widespread and not structural, and since the theatre was closed, there was no disruption. The remedial work was completed by April 2021. 

## **Staffing** 

We furloughed most of our workforce in Spring/ Summer 2020, reducing to a small team to keep the core work and building going. From Autumn 2020, we have gradually phased staff back, using the flexi furlough scheme where possible. In September 2020 we when through a staff consultation, leading to 4 redundancies in November 2020, as well as renegotiating staff contracts to allow for Short Time Working. We have not had to draw on this, as a result of the extension to the furlough scheme. 

6 



**Pioneer Theatres Limited (Theatre Royal Stratford East)** 

**Trustees’ annual report** 

## **For the year ended 31 March 2021** 

## **Fundraising** 

During the year we raised a total of £425,161 from Trusts and Foundations, Corporates and individuals, a reduction of £132,124 from the amount raised in the previous year. Mainly responsible for this reduction was income from individual and corporate donors which dropped to £220,228 from £336,011 in 2019/20. 

During the year we spent £169,271on fundraising costs, or 40% of the funds raised. This compares with £163,952 (28% of funds raised) in the previous year. 

The Trustees take their responsibilities under the Charities (Protection and Social Investment) Act 2016 seriously and have considered the implications on their activities. 

There is a dedicated permanent fundraising team at TRSE, led by a Director of Development. The Director of Development is supported by a Development Committee, which was formed in May 2019. The committee has a remit to advise and support on all fundraising activities. There are no commercial participators used. 

TRSE closely follows the Code of Fundraising Practice and stays up to date with all compliance and regulation around fundraising. 

TRSE is careful to protect the data of our supporters and is fully GDPR compliant. TRSE has not received any complaints about our fundraising activities. We do not approach members of the public to ask for charitable support. 

## **FUTURE PLANS** 

In January 2021 we postponed three plays programmed for January - March 2021, with THE SUN, THE MOON, AND THE STARS moving to June 2021, and EXTINCT moved to July 2021, both opening with socially distanced audiences. We also moved the postponed SHINING CITY to open, hopefully with full audiences, to September 2021, and our postpone pantomime of RED RIDING HOOD to Christmas 2021. We plan to reopen the bar in September 2021, and are working on programming for 2022. 

Our Learning & Participation work resumed in a live form in April 2021, with the youth theatres able to do live sharings of their work in June/ July, and the Young Company performing SCREAM FIRE and PUNK ROCK in July 2021. We will be running a summer programme, and are working towards a series of events as part of the NEWHAM UNLOCKED festival in autumn 2021. 

Alongside this, from April 2021 we have been working with the London Borough of Newham’s Youth Empowerment Service (YES) to reopen the building formerly known as Stratford Circus, now Stratford Youth Zone. We have entered into a short term partnership with them through to August 2022, with the ambition that it will be a cultural and creative hub for young people in Newham. Activity has been limited in the first few months, and we are working with Newham towards a fuller reopening in September 2022. Alongside work with young people, it will also provide space for rehearsal and for artist development. 

Our priority for the 2021-22 year will be rebuilding post pandemic, making sure audiences and staff feel safe and confident returning to the building. We need to rebuild and grow our audiences and continue to make excellent artistic work on our stages and with young people and in our community, on reduced resources. We want to continue our anti-racism work, and our work with the Ramps on the Moon 

7 



**Pioneer Theatres Limited (Theatre Royal Stratford East)** 

## **Trustees’ annual report** 

## **For the year ended 31 March 2021** 

consortium. We need to work with freelancers to make the industry a better place for them, and to prioritise working in a more sustainable way. 

## **FINANCIAL REVIEW** 

## **Review of financial performance** 

TRSE this year received annual funding from Arts Council England of £1,125,847 (2019/20 £1,105,506. 

Overall, income for the year was £3,004,326, down from £3,649,257in 2019/20. Income from Arts Council England increased by £ 610,624 as we were in receipt of one-off grants for COVID emergency funding and the Cultural Recovery Fund.  Other grants and donations amounted to £426,161 and were however lower than the £564,285 achieved in 2019/20, predominantly as a result of reduced income from Corporates and individuals. Also, as expected, income from productions reduced from £1,474,165 in 2019/20 to £504,233 in 2020/21; this drop would have been far greater if it were not for government support in the form of furlough income and business support grants, amounting to £431,477. Income from the trading subsidiary was reduced to £30,443 compared to £99,762 in 2019/20 due to the bar being closed throughout the year. 

Total resources expended in the year were £1,962,939 (2019/20: £3,569,530). The reduction was, as expected, overwhelmingly the result of very low production activity during 2020/21, compared with a full slate of productions in 2019/20. 

Overall, net income for the year to 31 March 2020 was £1,041,387 (2019/20 £79,727) resulting in funds carried forward increasing to £2,258,498 (2019/20 £1,164,384) at the end of the year. 

## **Principal funding sources** 

TRSE was successful in its re-application to the Arts Council of England for National Portfolio Funding in 2017. The new agreement runs until April 2022. It will receive £1,105,506 per year for that time. 

In 2020-21 TRSE was a recipient of Arts Council Emergency Funding in the first phase of the pandemic, followed by funding from the government’s Cultural Recovery Fund. TRSE also received a second grant in the first quarter of 2021-22. 

TRSE receives an annual grant from the London Borough of Newham of £256,500 per year (2019/20 £256,500). 

## **Reserves** 

The Trustees believe the company should hold in reserves a sufficient cushion of funds to enable it to continue to exist through a period of reduced income and, should it be necessary to, wind up in an orderly fashion. The trustees consider the desirable level of unrestricted free reserves for these purposes to be £676,000, approximately equal to three months running and production costs. As at 31 March 2021 the group unrestricted reserves amounted to £ 2,126,498, which after deducting the Fixed Asset and Cultural Recovery Fund designations reduces to £1,301,730, which is in excess of the desirable level.  However, reserves will reduce significantly as the theatre reopens and resumes with a full program of productions following the COVID shut-down. The aim is to maintain the reserve at the desired level, as well as maintaining a building reserve. 

8 



**Pioneer Theatres Limited (Theatre Royal Stratford East)** 

**Trustees’ annual report** 

## **For the year ended 31 March 2021** 

As at 31 March 2021 the group restricted reserves amounted to £159,000 (2018/9 £15,000). The reserves balance relates to grants made during the year for projects beyond March 2020 

As at 31 March 2021 the group unrestricted reserves amounted to £ 2,126,498 (2019/20 £1,259,165). 

The current funds position shows restricted funds of £159,000 (2019/20 £15,000), designated funds of £1,424,768 (2019/20 £1,157,040) and general unrestricted funds £701,730 (2019/20 £72,071) 

## **Going Concern** 

The Trustees have considered the question of going concern.  Taking into account the current level of cash and reserves, the financial plans over the coming year, and remedial actions that could be taken if future income was significantly reduced, the Trustees are confident that the charity will be able to maintain the designated operational reserves of £500k and therefore continue as a going concern.  Furthermore, there is strong historical evidence of support from the local authority, Arts Council England and other donors, and the Trustees believe that this support is likely to continue for the foreseeable future. 

## **Principal Risks and Uncertainties** 

The major risks can be broken down into these categories. 

COVID 19: the ongoing impact and uncertainly from the pandemic is the highest risk to the organisation. While social distancing is now ended, the organisation is still vulnerable to staff, in particular, show staff, catching Covid and having to isolate. In addition, the longer term impact of Covid on the economic environment, and audience confidence is still unknown. 

Box office: We are anticipating a slow return to growth in box offices and forecast for the next few years are likely to be lower than normal. There is also risk around box offices if cancellations happened again due to another lockdown or cast/ crew illness. 

Fundraising: We are enormously grateful to many of our donors who have supported us through our closure and continue to sort us. Our fundraising income was strong, but reduced during the pandemic, and we need to regrow this. 

Core funding: We are currently submitting our Business Plan to Arts Council England for to confirm funding for 2022-23. We will in the next year need to submit our application for future funding to 2026.  London Borough of Newham faces a difficult financial operating environment, exacerbated by the pandemic and this remains a key area of exposure. TRSE recognises the need to continue to diversify its income streams. 

## **GOVERNANCE AND MANAGEMENT** 

## **Appointment of trustees** 

New trustees are elected to the Board by existing members. Annually, a third of the Board must retire and trustees may be eligible for re-election up to a maximum of nine years’ service. 

The Board regularly reviews the skills mix of the trustees and considers whether it adequately represents the community which it serves. Various methods are then adopted to identify and recruit potential trustees, if required. 

9 



**Pioneer Theatres Limited (Theatre Royal Stratford East)** 

**Trustees’ annual report** 

## **For the year ended 31 March 2021** 

## **Trustee induction and training** 

All new trustees receive the support of staff and existing members of the Board during an induction period, as well as receiving key organisational documents. 

## **Organisation and key management** 

The Board is responsible for the strategic management of the charitable company and the setting of policy. It has ultimate responsibility and control of the charitable company which it exercises through quarterly meetings of the Board and a Finance Committee. The key management is considered to be the Chief Executive and the Executive Director. The Board sets the pay and remuneration of the Chief Executive, informed by a benchmarking exercise of industry peers. The Chief Executive sets the pay and remuneration of the Executive Director, based on industry peers. 

## **Related parties** 

The charitable company has a wholly owned subsidiary, Stratford East (Trading) Limited, which provides the bar and catering facilities at TRSE. It has a dormant subsidiary Stratford East Productions Limited, which is to be used in the case of commercial productions. It also has a related charity, Theatre Workshop Trust, which owns the freehold of the Theatre 

## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** 

The trustees (who are also directors of Pioneer Theatres Limited for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for the year. In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. 

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time, the financial position of the charitable company and enables them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

In so far as the trustees are aware; 

- there is no relevant audit information of which the charitable company's auditor is unaware; and 

- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

10 



**Pioneer Theatres Limited (Theatre Royal Stratford East)** 

**Trustees’ annual report** 

## **For the year ended 31 March 2021** 

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

## **Auditor** 

Sayer Vincent LLP was re-appointed as the charitable company’s auditor during the year and has expressed its willingness to continue in that capacity. 

The trustees’ annual report has been approved by the trustees on 9 November 2021 and signed on their behalf by 

Rt. Hon. Dame Margaret Hodge MP 

## **Chair** 

11 



**Independent auditor’s report** 

## **To the members of** 

## **Pioneer Theatres Limited (Theatre Royal Stratford East)** 

## Opinion 

We have audited the financial statements of Pioneer Theatres Limited (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2021 which comprise the consolidated and parent charitable company statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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: 

- Give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 March 2021 and of the group’s and parent charitable company’s incoming resources and application of resources, including its income and expenditure, for the year then ended 

- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice 

- Have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011 

## Basis for opinion 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the group financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## Conclusions 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 uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Pioneer Theatres Limited’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

12 



**Independent auditor’s report** 

## **To the members of** 

## **Pioneer Theatres Limited (Theatre Royal Stratford East)** 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## Other Information 

The other information comprises the information included in the trustees’ annual report other than the group financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group financial statements does not cover the other information, and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the group financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## Opinions on other matters prescribed by the Companies Act 2006 

In our opinion, based on the work undertaken in the course of the audit: 

- The information given in the trustees’ annual report, for the financial year for which the financial statements are prepared is consistent with the financial statements 

- The trustees’ annual report, has been prepared in accordance with applicable legal requirements 

## Matters on which we are required to report by exception 

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion: 

- Adequate accounting records have not been kept by the parent charitable company, 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 records and returns; or 

- Certain disclosures of trustees’ remuneration specified by law are not made; or 

- We have not received all the information and explanations we require for our audit; or 

13 



**Independent auditor’s report** 

## **To the members of** 

## **Pioneer Theatres Limited (Theatre Royal Stratford East)** 

- The trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report. 

## Responsibilities of trustees 

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

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

## Auditor’s responsibilities for the audit of the financial statements 

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. 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 in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below. 

14 



**Independent auditor’s report** 

## **To the members of** 

## **Pioneer Theatres Limited (Theatre Royal Stratford East)** 

## Capability of the audit in detecting irregularities 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: 

- We enquired of management, which included obtaining and reviewing supporting documentation, concerning the group’s policies and procedures relating to: 

   - Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance; 

   - Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud; 

   - The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. 

- We inspected the minutes of meetings of those charged with governance. 

- We obtained an understanding of the legal and regulatory framework that the  group operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the group from our professional and sector experience. 

- We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. 

- We reviewed any reports made to regulators. 

- We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. 

- We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. 

- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 

15 



**Independent auditor’s report** 

## **To the members of** 

## **Pioneer Theatres Limited (Theatre Royal Stratford East)** 

## Use of our report 

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. 

Judith Miller (Senior statutory auditor) Date: 16 December 2021 for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL 

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006 

16 



## Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

Consolidated statement of financial activities (incorporating an income and expenditure account) 

For the year ended 31 March 2021 

|||||2021|||2020|
|---|---|---|---|---|---|---|---|
|||Unrestricted|Restricted|Total|Unrestricted|Restricted|Total|
|||Funds|Funds|Funds|Funds|Funds|Funds|
||Notes|£|£|£|£|£|£|
|Income from:||||||||
|Donations and legacies|2|2,231,199|187,433|2,418,632|1,753,517|172,274|1,925,791|
|Charitable activities|3|||||||
|Theatre||504,233|-|504,233|1,474,165|-|1,474,165|
|Education and workshops||520|-|520|4,312|-|4,312|
|Other trading activities|4|80,941|-|80,941|243,066|-|243,066|
|Investment income||-|-|-|1,923|-|1,923|
|Total income||2,816,893|187,433|3,004,326|3,476,983|172,274|3,649,257|
|Expenditure on:||||||||
|Raising funds|5|229,488|-|229,488|284,634|-|284,634|
|Charitable activities||||||||
|Theatre||1,514,067|43,433|1,557,500|3,075,475|71,024|3,146,499|
|Education and workshops||175,951|-|175,951|138,397|-|138,397|
|Total expenditure||1,919,506|43,433|1,962,939|3,498,506|71,024|3,569,530|
|Net income / (expenditure) for the year|6|897,387|144,000|1,041,387|(21,523)|101,250|79,727|
|Transfers between funds||-|-|-|100,000|(100,000)|-|
|Net movement in funds||897,387|144,000|1,041,387|78,477|1,250|79,727|
|Reconciliation of funds:||||||||
|Total funds brought forward||1,229,111|15,000|1,244,111|1,150,634|13,750|1,164,384|
|Total funds carried forward||2,126,498|159,000|2,285,498|1,229,111|15,000|1,244,111|



All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 16 to the financial statements. 

17 



Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

## Balance sheets 

|Balance sheets|Balance sheets|Balance sheets|||
|---|---|---|---|---|
|As at 31 March 2021|||Company no. 00556251||
|2021<br>2020<br>Notes<br>£<br>£<br>Fixed assets:<br>10<br>518,956<br>557,040<br>11<br>-<br>-<br>518,956<br>557,040<br>Current assets:<br>4,167<br>4,028<br>13<br>345,057<br>457,694<br>2,193,540<br>1,016,396<br>2,542,764<br>1,478,117<br>Liabilities:<br>14<br>(526,221)<br>(791,047)<br>2,016,543<br>687,071<br>2,535,499<br>1,244,111<br>15<br>(250,001)<br>-<br>2,285,498<br>1,244,111<br>16a<br>159,000<br>15,000<br>1,424,768<br>1,157,040<br>767,258<br>118,646<br>(65,528)<br>(46,575)<br>Total unrestricted funds<br>2,126,498<br>1,229,111<br>2,285,498<br>1,244,111<br>Total funds<br>Investments<br>Cash at bank and in hand<br>Tangible assets<br>Group<br>Creditors: amounts falling due within one year<br>Net current assets<br>Net assets<br>Creditors: amounts falling due after one year<br>Unrestricted funds:<br>Charitable funds<br>Non charitable trading (deficit)<br>Designated funds<br>Total assets less current liabilities<br>Stock of goods for resale<br>Debtors<br>Funds:<br>Restricted funds|||2021<br>2020<br>£<br>£<br>518,656<br>553,224<br>2<br>2<br>518,658<br>553,226<br>-<br>-<br>427,695<br>531,640<br>2,114,865<br>963,185<br>2,542,560<br>1,494,825<br>(510,193)<br>(757,365)<br>2,032,367<br>737,460<br>2,551,025<br>1,290,686<br>(200,000)<br>-<br>2,351,025<br>1,290,686<br>159,000<br>15,000<br>1,424,768<br>1,157,040<br>767,258<br>118,646<br>-<br>-<br>2,192,026<br>1,275,686<br>2,351,026<br>1,290,686<br>Charity||
||518,956<br>4,167<br>345,057<br>2,193,540|557,040<br>4,028<br>457,694<br>1,016,396|518,658<br>-<br>427,695<br>2,114,865|553,226<br>-<br>531,640<br>963,185|
||2,542,764<br>(526,221)|1,478,117<br>(791,047)|2,542,560<br>(510,193)|1,494,825<br>(757,365)|
||2,016,543|687,071|2,032,367|737,460|
||2,535,499<br>(250,001)|1,244,111<br>-|2,551,025<br>(200,000)|1,290,686<br>-|
||2,285,498|1,244,111|2,351,025|1,290,686|
||159,000<br>1,424,768<br>767,258<br>(65,528)|15,000<br>1,157,040<br>118,646<br>(46,575)|159,000<br>1,424,768<br>767,258<br>-|15,000<br>1,157,040<br>118,646<br>-|
||2,126,498|1,229,111|2,192,026|1,275,686|
||2,285,498|1,244,111|2,351,026|1,290,686|



Approved by the trustees on 9 November 2021 and signed on their behalf by 

Dame Margaret Hodge 

Chair 

18 



Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

## Consolidated statement of cash flows 

## For the year ended 31 March 2021 

|Note<br>£<br>£<br>Net income for the reporting period<br>1,041,387<br>(as per the statement of financial activities)<br>Depreciation charges<br>59,221<br>(Increase)/decrease in stocks<br>(139)<br>(Increase)/decrease in debtors<br>112,637<br>Increase/(decrease) in creditors<br>(264,825)<br>Net cash provided by operating activities<br>948,280<br>(21,137)<br>250,001<br>228,864<br>1,177,144<br>1,016,396<br>a<br>2,193,540<br>Analysis of cash and cash equivalents and of net debt<br>At 1 April<br>2020<br>Cash flows<br>£<br>£<br>Cash at bank and in hand<br>1,016,396<br>1,177,144<br>a<br>Total cash and cash equivalents<br>1,016,396<br>1,177,144<br>Total<br>1,016,396<br>1,177,144<br>Cash and cash equivalents at the beginning of the year<br>Cash and cash equivalents at the end of the year<br>Change in cash and cash equivalents in the year<br>2021<br>Cash flows from operating activities<br>Net cash (used in) investing activities<br>Cash flows from investing activities:<br>Purchase of fixed assets<br>Bank loans|Note<br>£<br>£<br>Net income for the reporting period<br>1,041,387<br>(as per the statement of financial activities)<br>Depreciation charges<br>59,221<br>(Increase)/decrease in stocks<br>(139)<br>(Increase)/decrease in debtors<br>112,637<br>Increase/(decrease) in creditors<br>(264,825)<br>Net cash provided by operating activities<br>948,280<br>(21,137)<br>250,001<br>228,864<br>1,177,144<br>1,016,396<br>a<br>2,193,540<br>Analysis of cash and cash equivalents and of net debt<br>At 1 April<br>2020<br>Cash flows<br>£<br>£<br>Cash at bank and in hand<br>1,016,396<br>1,177,144<br>a<br>Total cash and cash equivalents<br>1,016,396<br>1,177,144<br>Total<br>1,016,396<br>1,177,144<br>Cash and cash equivalents at the beginning of the year<br>Cash and cash equivalents at the end of the year<br>Change in cash and cash equivalents in the year<br>2021<br>Cash flows from operating activities<br>Net cash (used in) investing activities<br>Cash flows from investing activities:<br>Purchase of fixed assets<br>Bank loans|Note<br>£<br>£<br>Net income for the reporting period<br>1,041,387<br>(as per the statement of financial activities)<br>Depreciation charges<br>59,221<br>(Increase)/decrease in stocks<br>(139)<br>(Increase)/decrease in debtors<br>112,637<br>Increase/(decrease) in creditors<br>(264,825)<br>Net cash provided by operating activities<br>948,280<br>(21,137)<br>250,001<br>228,864<br>1,177,144<br>1,016,396<br>a<br>2,193,540<br>Analysis of cash and cash equivalents and of net debt<br>At 1 April<br>2020<br>Cash flows<br>£<br>£<br>Cash at bank and in hand<br>1,016,396<br>1,177,144<br>a<br>Total cash and cash equivalents<br>1,016,396<br>1,177,144<br>Total<br>1,016,396<br>1,177,144<br>Cash and cash equivalents at the beginning of the year<br>Cash and cash equivalents at the end of the year<br>Change in cash and cash equivalents in the year<br>2021<br>Cash flows from operating activities<br>Net cash (used in) investing activities<br>Cash flows from investing activities:<br>Purchase of fixed assets<br>Bank loans|£<br>£<br>79,727<br>56,136<br>(4,028)<br>25,610<br>(37,650)<br>119,795<br>(118,818)<br>-<br>(118,818)<br>977<br>1,015,419<br>1,016,396<br>Other non-<br>cash<br>changes<br>At 31 March<br>2021<br>£<br>£<br>2,193,540<br>2,193,540<br>-<br>2,193,540<br>2020|£<br>£<br>79,727<br>56,136<br>(4,028)<br>25,610<br>(37,650)<br>119,795<br>(118,818)<br>-<br>(118,818)<br>977<br>1,015,419<br>1,016,396<br>Other non-<br>cash<br>changes<br>At 31 March<br>2021<br>£<br>£<br>2,193,540<br>2,193,540<br>-<br>2,193,540<br>2020|
|---|---|---|---|---|
|||948,280<br>228,864||119,795<br>(118,818)|
||At 1 April<br>2020<br>£<br>1,016,396||Other non-<br>cash<br>changes<br>£||
|||1,177,144<br>1,016,396||977<br>1,015,419|
|||2,193,540||1,016,396|
|||Cash flows<br>£<br>1,177,144||At 31 March<br>2021<br>£<br>2,193,540|
||1,016,396|1,177,144||2,193,540|
||1,016,396|1,177,144|-|2,193,540|



19 



Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

## Notes to the financial statements 

## For the year ended 31 March 2021 

## 1 Accounting policies 

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

## a) Basis of preparation 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 

## b) Public benefit entity 

The charity meets the definition of a public benefit entity under FRS 102. 

c) Statutory information Pioneer Theatres Limited Trading as “Theatre Royal Stratford East”  is a charitable company limited by guarantee and is incorporated in England and Wales. 

The registered office address and principal place of busines is Theatre Royal Stratford East, Gerry Raffles Square, Stratford, London, E15 1BN. 

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note. 

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements 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. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below. 

- d) Consolidation 

The Statement of Financial Activities (SoFA) and Balance Sheet consolidate the financial statements of the charitable company and its subsidiary, Stratford East (Trading) Limited. The results of the subsidiary are consolidated on a line by line basis in accordance with FRS 102 - section 9 and the Charities SORP (FRS 102) - section 24. 

These financial statements consolidate the results of the charity and its wholly-owned subsidiary Stratford East (Trading) Limited on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the charity's balance sheet. 

Details of Stratford East (Trading) Limited are given in note 12 of the financial statements. 

A separate statement of financial activities for the Charitable Company has not been presented because the Charitable Company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006. 

e) Going concern Detailed financial projections have been prepared for the period of 12 months from the date of approval of these financial statements which indicate that the charitable company and group will have sufficient financial resources to continue to be able to meet its liabilities as they fall due. The trustees have carefully considered these financial projections, level of funding and other matters reelvant to TRSE and believe that it is appropriate for the financial statements to be prepared on a going concern basis. 

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. 

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. 

f) Incoming resources Incoming resources are included in the Statemetn of Financial Activiites when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. 

Income from theatre admission fees is included in incoming resources in the period in which the relevant performance takes place. Income related to productions or lettings in a subsequent period is treated as deferred income. 

Income from commercial activities is included in the period in which the group is entitled to receipt. 

Income from donations and grants, including capital grants, is included in incoming resources when these are receivable unless the donor has specified that the donation or grant relates to a future period or that certain pre-conditions must be fulfilled before use. In these cases amounts received are recognised in the relevant period or when the pre-conditions have been met and until then treated as deferred income. Donations and grants for particular purposes are included in incoming resources as restricted funds. 

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably. 

20 



Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

## Notes to the financial statements 

## For the year ended 31 March 2021 

- 1 Accounting policies (continued) 

- f) Incoming resources (continued) Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. 

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met. 

g) Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. 

## h) Resources expended 

Expenditure is accounted for on an accruals basis. 

Costs of generating funds are those costs incurred in attracting voluntary income to support the activity of the theatre, and costs incurred in commercial trading activities to raise funds. 

Charitable activity costs include all direct expenditure associated with the staging of productions and educational programmes together with support costs allocated to those activities. 

Support costs are the costs of central and administrative functions, which are allocated to activity cost categories on the basis of time spent by staff on those activities. 

Governance costs are those costs associated with the governance arrangement of the charitable company including costs associated with strategic management and constitutional and statutory requirements. 

- Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:  Costs of raising funds relate to the costs incurred by the charity in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose, including costs incurred by the trading subsidiary. 

- Expenditure on charitable activities includes the costs of running the theatre and its productions, and other educational activities undertaken to further the purposes of the charity and their associated support costs 

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. 

## i) Cost of new productions 

The cost of materials, creative team fees and other related set up costs of a new production are carried forward and written off when the production is first performed to a fee paying audience. Ongoing labour and related production costs which occur throughout the life of the production are expensed as incurred. Where production set up costs have been incurred prior to the year end, but the production has not yet opened to the fee paying public, the set up costs are carried forward at the balance sheet date as deferred production costs until such time as the production opens. 

- j) Allocation of support costs Resources expended are allocated to the particular activity where the cost relates directly to that activity. 

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on the direct costs per activity as a proportion of total direct costs, of the amount attributable to each activity 

- Raising funds 0% 

- Theatre costs 0%  Education & Workshops 0% 

## k) Taxation 

The charitable company is considered to pass the tests set out in Paragraph I Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charitable company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part II Corporation Tax Act 2010 or Section 256 of the Taxaction of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. 

## l) Fixed asset investments 

The Statement of Recommended Practice requires investments to be stated at market value. The investment of the charitable company consists of the investment in the subsidiary, an unquoted company. The trustees consider it appropriate to include this investment at cost. See note 12 for more details. 

Investments in subsidiaries 

Investments in subsidiaries are at cost. 

21 



Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

## Notes to the financial statements 

## For the year ended 31 March 2021 

1 Accounting policies (continued) 

- m) Tangible fixed assets Individual fixed assets consisting of more than £250 are capitalised at cost. 

Tangible fixed assets are depreciated at rates calculated  to write off each asset over its anticipated useful life. The rates used are: 

>  Computer equipment 4 years straight line basis 

>  Other 4 years straight line basis 

>  Auditorium 20 years straight line 

>  Production equipment 8 years straight line basis Assets in the course of construction are not depreciated until they are brought into use. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life. 

## n) Stock 

Stock comprises catering and bar consumables for resale and is stated at the lower of cost and net realisable value. 

Stocks are stated at the lower of cost and net realisable value.  In general, cost is determined on a first in first out basis and includes transport and handling costs.  Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation.  Provision is made where necessary for obsolete, slow moving and defective stocks.  Donated items of stock, held for distribution or resale, are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market. 

o) Debtors Debtors include amounts owed to the charity for the provision of goods and services or amounts the charity has paid in advance for the goods or services it will receive. Debtors are measured at their recoverable amount. 

Other debtors and prepayments are recognised at the settlement amount due. 

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

p) Cash at bank and in hand Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 

## q) Creditors 

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Other creditors and accruals are normally recognised at their settlement amount due. 

## r) Financial instruments 

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 

s) Fund accounting General funds are unrestricted funds which are available for use a the discretion of the trustees in furtherance of the general objectives of the charitable company and which have not been designated for other purposes. 

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes. 

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charitable company for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements. Expenditure which meets these criteria is charged to the fund. 

## t) Pension costs 

The theatre makes contributions to a defined contribution pension scheme, on behalf of eligible employees, at a rate determined by the trustees. 

## u) Operating leases 

Rental charges are charged against income on a straight line basis over the term of the lease. 

22 



Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

## Notes to the financial statements 

## For the year ended 31 March 2021 

|2<br>- Transition Fund<br>The Austin Hope and Pilkington Trust<br>Garfield Weston<br>Theatres Trust Foundation - Reopening fund<br>Tate & Lyle<br>Foyle Foundation<br>The Linbury Trust<br>New Wolsey Theatre<br>Equity Charitable Trust<br>Arts Council of England<br>The London Community Foundation<br>Gerald & Gail Ronson Family Trust<br>Jack Petchey Foundation<br>National Theatre Connections<br>West Ham Foundation<br>Harold Hyam Wingate Foundation<br>Bunbury Family Trust<br>Aspers Good Causes Fund<br>Kings College London<br>Worshipful Company of Basketmakers<br>Esmee Fairbairn Foundation<br>The John Thaw Foundation<br>Rothschild Grant<br>Sir John Cass's Foundation<br>- Emergency and Cultural Recovery Grants<br>St James's Place Charitable Foundation<br>Aziz Foundation<br>- Newham Giving Fund<br>Santander Charitable Giving Fund<br>Income from donations and legacies<br>London Borough of Newham<br>- Revenue grant<br>- Black History Month<br>Garrick Charitable Trust<br>- Revenue Grant<br>Corporate and Individual donors|Unrestricted<br>£<br>1,125,847<br>32,123<br>578,501<br>256,000<br>-<br>-<br>1,000<br>-<br>-<br>-<br>-<br>-<br>-<br>17,500<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>220,228|Restricted<br>£<br>-<br>-<br>-<br>-<br>-<br>1,000<br>-<br>-<br>7,500<br>155,178<br>4,000<br>-<br>-<br>5,755<br>2,000<br>-<br>5,000<br>5,000<br>2,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|2021<br>Total<br>£<br>1,125,847<br>32,123<br>578,501<br>256,000<br>-<br>1,000<br>1,000<br>-<br>-<br>7,500<br>155,178<br>4,000<br>-<br>-<br>23,255<br>2,000<br>-<br>5,000<br>5,000<br>2,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>220,228|Unrestricte<br>£<br>1,105,506<br>-<br>256,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>50,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>1,000<br>-<br>-<br>-<br>5,000<br>-<br>-<br>-<br>-<br>-<br>336,011|Restricted<br>£<br>-<br>-<br>-<br>-<br>7,000<br>-<br>100,000<br>7,500<br>-<br>-<br>1,500<br>1,750<br>-<br>-<br>2,500<br>5,000<br>-<br>-<br>4,674<br>10,000<br>-<br>6,750<br>600<br>25,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-|2020<br>Total<br>£<br>1,105,506<br>-<br>256,000<br>-<br>7,000<br>-<br>100,000<br>7,500<br>-<br>-<br>1,500<br>1,750<br>50,000<br>-<br>2,500<br>5,000<br>-<br>-<br>4,674<br>10,000<br>1,000<br>6,750<br>600<br>25,000<br>5,000<br>-<br>-<br>-<br>-<br>-<br>336,011|
|---|---|---|---|---|---|---|
||2,231,199|187,433|2,418,632|1,753,517|172,274|1,925,791|



Grants - Association of London Government and London Boroughs 

In accordance with sub-section 37(4) of the Local Government and Housing Act 1989, these grants have been fully utilised in accordance with the terms under which they were originally granted and have been fully expended on revenue items in the normal course of the charitable company's business. 

## 3 Income from charitable activities 

|Income from charitable activities|||
|---|---|---|
|Theatre<br>Box office receipts<br>Touring and co-productions<br>Front of house<br>Theatre hire<br>Royalties<br>Other income<br>Education and workshops<br>Total income from charitable activities|2021<br>Total<br>£<br>10,432<br>50,522<br>414<br>10,510<br>878<br>431,477<br>520|2020<br>Total<br>£<br>1,087,154<br>297,604<br>56,922<br>19,190<br>7,166<br>6,129<br>4,312|
||504,753|1,478,477|



All income from charitable activities is unrestricted. Other income includes £392,387 received via the HMRC Job Retention Scheme. 

- 4 Income from other trading activities 

|Income from other trading activities|||
|---|---|---|
|Commercial Trading (note 12)<br>Corporation tax rebate|2021<br>Total<br>£<br>30,443<br>50,498|2020<br>Total<br>£<br>99,762<br>143,304|
||80,941|243,066|



All income from other trading activities is unrestricted. 

23 



Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

Notes to the financial statements 

## For the year ended 31 March 2021 

## 5a Analysis of expenditure (current year) 

|Staff costs (Note 7)<br>Theatre production freelance<br>Theatre production costs<br>Theatre running costs<br>Theatre fundraising costs<br>Press and publicity<br>Education and workshops<br>Commercial trading<br>General office and administration<br>Depreciation<br>Audit fees<br>Legal and professional fees<br>Board meeting expenses<br>Support costs<br>Governance costs<br>Total expenditure 2021<br>Total expenditure 2020|Raising<br>funds<br>£<br>155,901<br>-<br>-<br>-<br>4,404<br>-<br>-<br>5,450<br>-<br>3,516<br>-<br>-<br>-<br>169,271<br>57,720<br>2,497<br>229,488<br>284,634|Theatre<br>costs<br>Education &<br>Workshops<br>Governance<br>costs<br>£<br>£<br>£<br>799,221<br>111,773<br>-<br>67,389<br>-<br>-<br>17,192<br>-<br>-<br>90,966<br>-<br>-<br>1,451<br>-<br>-<br>9,398<br>-<br>-<br>-<br>5,329<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>50,219<br>-<br>-<br>-<br>-<br>26,540<br>734<br>-<br>-<br>-<br>-<br>-<br>1,036,570<br>117,102<br>26,540<br>499,328<br>56,409<br>-<br>21,602<br>2,440<br>(26,540)<br>1,557,500<br>175,951<br>-<br>3,146,499<br>138,397<br>-<br>Charitable activities|Support<br>costs<br>£<br>319,970<br>-<br>-<br>85,325<br>-<br>43,355<br>-<br>-<br>144,366<br>5,486<br>-<br>14,956<br>-<br>613,458<br>(613,458)<br>-<br>-<br>-|2021 Total<br>2020<br>Total<br>£<br>£<br>1,386,865<br>1,923,896<br>67,389<br>210,688<br>17,192<br>868,488<br>176,291<br>198,251<br>5,855<br>54,824<br>52,753<br>61,981<br>5,329<br>5,154<br>5,450<br>40,258<br>144,366<br>128,654<br>59,221<br>56,136<br>26,540<br>9,975<br>15,690<br>10,730<br>-<br>497<br>1,962,941<br>3,569,532<br>(1)<br>(1)<br>(1)<br>(1)<br>1,962,939<br>3569530.5<br>3,569,530|
|---|---|---|---|---|
|||Theatre<br>costs<br>£<br>799,221<br>67,389<br>17,192<br>90,966<br>1,451<br>9,398<br>-<br>-<br>-<br>50,219<br>-<br>734<br>-<br>1,036,570<br>499,328<br>21,602<br>1,557,500<br>3,146,499|||



24 



Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

Notes to the financial statements 

## For the year ended 31 March 2021 

## 5a Analysis of expenditure (prior year) 

|Staff costs (Note 7)<br>Theatre production freelance<br>Theatre production costs<br>Theatre running costs<br>Theatre fundraising costs<br>Press and publicity<br>Education and workshops<br>Commercial trading<br>General office and administration<br>Depreciation<br>Audit fees<br>Legal and professional fees<br>Board meeting expenses<br>Support costs<br>Governance costs<br>Total expenditure 2020|Raising<br>funds<br>£<br>164,742<br>-<br>-<br>-<br>35,936<br>-<br>-<br>40,258<br>-<br>6,206<br>-<br>-<br>-<br>247,142<br>36,881<br>611<br>284,634|Theatre<br>costs<br>Education &<br>Workshops<br>Governance<br>costs<br>£<br>£<br>£<br>1,324,648<br>107,760<br>-<br>210,688<br>-<br>-<br>868,488<br>-<br>-<br>80,852<br>-<br>-<br>18,888<br>-<br>-<br>12,016<br>-<br>-<br>-<br>5,154<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>43,106<br>-<br>-<br>-<br>-<br>9,975<br>8,438<br>-<br>-<br>-<br>-<br>497<br>2,567,124<br>112,914<br>10,472<br>569,930<br>25,068<br>-<br>9,445<br>415<br>(10,472)<br>3,146,499<br>138,397<br>-<br>Charitable activities|Support<br>costs<br>2020<br>Total<br>£<br>£<br>326,746<br>1,923,896<br>-<br>210,688<br>-<br>868,488<br>117,399<br>198,251<br>-<br>54,824<br>49,965<br>61,981<br>-<br>5,154<br>-<br>40,258<br>128,654<br>128,654<br>6,824<br>56,136<br>-<br>9,975<br>2,292<br>10,730<br>-<br>497<br>631,880<br>3,569,532<br>(631,880)<br>(1)<br>-<br>(1)<br>-<br>3,569,530|
|---|---|---|---|
|||Theatre<br>costs<br>£<br>1,324,648<br>210,688<br>868,488<br>80,852<br>18,888<br>12,016<br>-<br>-<br>-<br>43,106<br>-<br>8,438<br>-<br>2,567,124<br>569,930<br>9,445<br>3,146,499||



25 



Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

## Notes to the financial statements 

## For the year ended 31 March 2021 

- 6 Net income / (expenditure) for the year 

|6<br>Net income / (expenditure) for the year|6<br>Net income / (expenditure) for the year|6<br>Net income / (expenditure) for the year|
|---|---|---|
|2021<br>2020<br>£<br>£<br>59,221<br>56,136<br>14,550<br>14,280<br>11,990<br>4,695<br>3,504<br>3,504<br>7<br>2021<br>2020<br>£<br>£<br>1,113,736<br>1,098,542<br>48,117<br>597,811<br>93,549<br>95,692<br>38,162<br>39,538<br>1,293,564<br>1,831,583<br>52,819<br>57,759<br>40,482<br>34,554<br>1,386,865<br>1,923,896<br>Auditor's remuneration (excluding VAT):<br>Depreciation<br>Audit (Group)<br>Other services<br>Group<br>This is stated after charging:<br>Operating lease costs<br>Total staff costs<br>Freelance staff<br>Commercial trading<br>Social security costs<br>Pension costs<br>Staff costs were as follows:<br>Salaries and wages<br>Non NI Salaries and wages<br>Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel<br>Total employee costs|||
|||2020<br>£<br>1,098,542<br>597,811<br>95,692<br>39,538|
||1,293,564|1,831,583|
||52,819<br>40,482|57,759<br>34,554|
||1,386,865|1,923,896|



The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between: 

|||2021|2020|
|---|---|---|---|
|||No.|No.|
|£60,000|- £69,999|1|2|



No trustees received any remuneration or benefits in kind in their capacity as a trustee during the year (2020: none). 

No trustees had travel and subsistence expenses reimbursed in the year (2020: £35). 

One trustee, Mina Barber, who resigned as a trustee on 24th March 2021, received payments of £2,800 during the period for work as a production director. 

The key management of the Charity comprise of the Trustees, the Executive Director and the Artistic Director. 

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £135,817 (2020: £147,618). 

## 8 Staff numbers 

The average weekly number of employees (head count based on number of staff employed) during the year was 65 (2020: 103). 

|103).|||
|---|---|---|
|Productions<br>Education<br>Fundraising<br>Press and Publicity<br>Support and Administration<br>Trading Activities|2021<br>No.<br>3<br>28<br>4<br>2<br>25<br>3|2020<br>No.<br>4<br>61<br>5<br>3<br>28<br>2|
||65|103|



Employee time has been allocated either; 

i) To direct costs on a percentage of the time spent by an employee on an activity ii) To support costs allocated on a percentage basis over all the costs 

26 



Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

## Notes to the financial statements 

## For the year ended 31 March 2021 

## 9 Taxation 

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.  The charity's trading subsidiary Stratford East (Trading) Limited distributes under Gift Aid available profits to the parent charity. Its charge to corporation tax in the year was: 

|UK corporation tax at 19%|2021<br>£<br>-|2020<br>£<br>-|
|---|---|---|



|10<br>Costs<br>Costs<br>Depreciation<br>As at 1 April 2020<br>Charge for the year<br>As at 1 April 2020<br>Additions<br>Disposals<br>At 31 March 2021<br>As at 1 April 2020<br>Additions<br>Disposals<br>Disposals<br>Group<br>Charity<br>Net book value<br>Disposals<br>31 March 2021<br>31 March 2020<br>At 31 March 2021<br>Net book value<br>31 March 2021<br>At 31 March 2021<br>Depreciation<br>As at 1 April 2020<br>Charge for the year<br>At 31 March 2021<br>Tangible fixed assets<br>31 March 2020|Equipment &<br>Furniture<br>£<br>384,900<br>21,137<br>-|Building<br>Improvements<br>£<br>480,208<br>-<br>-|Total<br>£<br>865,108<br>21,137<br>-|
|---|---|---|---|
||406,037|480,208|886,245|
||221,570<br>35,807<br>-|86,498<br>23,414<br>-|308,068<br>59,221<br>-|
||257,377|109,912|367,289|
||148,660|370,296|518,956|
||163,330|393,710|557,040|
||Equipment &<br>Furniture<br>£<br>335,412<br>21,137<br>-|Building<br>Improvements<br>£<br>480,208<br>-<br>-|Total<br>£<br>815,620<br>21,137<br>-|
||356,549|480,208|836,757|
||175,898<br>32,291<br>-|86,498<br>23,414<br>-|262,396<br>55,705<br>-|
||208,189|109,912|318,101|
||148,360|370,296|518,656|
||159,514|393,710|553,224|



All of the above assets are used for charitable purposes. 

27 



Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

## Notes to the financial statements 

## For the year ended 31 March 2021 

- 11 Investments 

|Investments|||||
|---|---|---|---|---|
||Group||Charity||
||2021|2020|2021|2020|
||£|£|£|£|
|Shares in group undertakings|-|-|2|2|



## 12 Net income from the subsidiary trading activities 

The wholly owned trading subsidiary Stratford East (Trading) Limited, is a company registered in England and Wales. The company number is 03074042, and the registered office address is Theatre Royal Stratford East, Gerry Raffles Square, Stratford, London, E15 1BN. All activities have been consolidated on a line by line basis in the statement of financial activities. The trading company distributes its available taxable profits to the charitable company under gift aid. Stratford East (Trading) Limited provides the bar facilities at the Theatre Royal. 

The charity owns the entire issued share capital of 2 ordinary shares of £1 each. The trustees Dame Margaret Hodge, Martin Pilgrim, Joshua Garfield, Peter Wilson and Christopher Hird are also directors of the subsidiary. 

A summary of the trading results of the subsidiary is shown below: 

|A summary of the trading results of the subsidiary is shown below:|||
|---|---|---|
|Retained in subsidiary<br>Other income and bank interest<br>Fixed assets<br>Administrative expenses<br>Net profit/(loss)<br>Cost of sales<br>The aggregate of the assets, liabilities and reserves was:<br>Current assets<br>Creditors: amounts falling due within one year<br>Aggregate share capital and reserves<br>Total net liabilities<br>Turnover|2021<br>£<br>30,429<br>(21,490)<br>(27,958)|2020<br>£<br>99,425<br>(45,349)<br>(35,670)|
||(19,019)<br>14|18,407<br>337|
||(19,005)|18,744|
||299<br>85,343<br>(151,224)|3,815<br>61,010<br>(111,399)|
||(65,582)|(46,575)|
||(65,582)|(46,575)|



The charity also owns the entire issued share capital of 1 ordinary share of £1 of Stratford East Productions Limited, a company incorporated in England. The company number is 05369063, and the registered office address is Theatre Royal Stratford East, Gerry Raffles Square, Stratford, London, E15 1BN. Stratford East Productions Limited has been dormant throughout the year and given its immateriality has not been included in the consolidated accounts. 

## Parent charity 

The parent charity's gross income and the results for the year are disclosed as follows: 

||2021|2020|
|---|---|---|
||£|£|
|Gross income|2,786,450|3,377,221|
|Result for the year|1,060,392|60,983|



28 



Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

## Notes to the financial statements 

## For the year ended 31 March 2021 

- 13 Debtors 

|Debtors|||||
|---|---|---|---|---|
|Accrued income<br>Trade debtors<br>Other debtors<br>Deferred production costs<br>Corporation tax<br>Total current debtors<br>Prepayments<br>Amounts owed from group undertakings|2021<br>2020<br>£<br>£<br>73,919<br>73,460<br>-<br>-<br>42,392<br>81,974<br>4,046<br>17,581<br>14,925<br>11,630<br>48,986<br>11,551<br>160,789<br>261,498<br>345,057<br>457,694<br>Group||2021<br>2020<br>£<br>£<br>72,074<br>69,788<br>84,483<br>77,618<br>42,392<br>81,974<br>4,046<br>17,581<br>14,925<br>11,630<br>48,986<br>11,551<br>160,789<br>261,498<br>427,695<br>531,640<br>Charity||
||345,057|457,694|427,695|531,640|



14 Creditors: amounts falling due within one year 

|Creditors: amounts falling due within one year|||||
|---|---|---|---|---|
|Trade creditors<br>Other creditors<br>Taxation and social security<br>Accruals<br>Deferred income (note 16)|2021<br>2020<br>£<br>£<br>55,368<br>52,363<br>28,329<br>26,296<br>122,531<br>211,672<br>145,548<br>422,088<br>174,445<br>78,628<br>526,221<br>791,047<br>Group||2021<br>2020<br>£<br>£<br>48,486<br>39,111<br>28,329<br>26,296<br>117,585<br>195,442<br>141,348<br>417,888<br>174,445<br>78,628<br>510,193<br>757,365<br>Charity||
||526,221|791,047|510,193|757,365|



Included in other creditors above is an amount due in relation to pension schemes of £5,463 (2020: £11,244). 

- 15 Creditors: amounts falling due after one year 

|Creditors: amounts falling due after one year|||||
|---|---|---|---|---|
|Amounts owed to group undertakings<br>Bank loans<br>Amounts due under finance leases<br>Deferred income (note 16)|2021<br>2020<br>£<br>£<br>250,001<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>250,001<br>-<br>Group||2021<br>2020<br>£<br>£<br>200,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>200,000<br>-<br>Charity||
||250,001|-|200,000|-|



Bank loans totalling £250,001 (2020: £NIL) are part of the government backed CBILS scheme. 

## 15 Deferred income 

Deferred income movements in the year were as follows: 

|Group and Charity<br>Box office advance income<br>Grants for Educational Work<br>Future Events income|£<br>71,878<br>-<br>5,000<br>1,750<br>At 1 April<br>2020|£<br>(71,878)<br>-<br>Released in<br>year|£<br>174,445<br>-<br>-<br>Deferred in<br>year|£<br>174,445<br>-<br>5,000<br>1,750<br>At 31 March<br>2021|
|---|---|---|---|---|
||78,628|(71,878)|174,445|181,195|



29 



Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

## Notes to the financial statements 

## For the year ended 31 March 2021 

16a Movements in funds (current year) 

|Total restricted funds<br>Designated Funds<br>Fixed Assets<br>Building Fund<br>Operational Fund<br>Cultural Recovery Fund<br>Unrestricted general funds<br>Non-charitable trading<br>Worshipful Company of Basket Makers<br>Total unrestricted funds<br>Tate & Lyle<br>Restricted funds:<br>Total funds<br>Unrestricted funds:<br>Harold Hyam Wingate Foundation<br>The John Thaw Foundation<br>Theatres Trust Foundation<br>Garfield Weston Foundation<br>Esmee Fairbairn Foundaion<br>Garrick Charitable Trust<br>New Wolsey Theatre<br>London Borough of Newham|£<br>-<br>-<br>-<br>-<br>10,000<br>-<br>-<br>5,000<br>At 1 April 2020|£<br>5,000<br>4,000<br>1,000<br>7,500<br>155,178<br>2,000<br>-<br>5,755<br>2,000<br>5,000<br>Income &<br>gains|£<br>(5,000)<br>(4,000)<br>(1,000)<br>(7,500)<br>(11,178)<br>(2,000)<br>-<br>(5,755)<br>(2,000)<br>(5,000)<br>Expenditure &<br>losses|£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>Transfers|£<br>-<br>-<br>-<br>-<br>144,000<br>10,000<br>-<br>-<br>5,000<br>At 31 March<br>2021|
|---|---|---|---|---|---|
||15,000|187,433|(43,433)|-|159,000|
||557,040<br>100,000<br>500,000|-<br>-<br>-|-<br>-<br>-|-<br>-<br>-<br>267,728|557,040<br>100,000<br>500,000<br>267,728|
||1,157,040<br>118,646<br>(46,575)|-<br>2,786,450<br>30,443|-<br>(1,870,110)<br>(49,396)|267,728<br>(267,728)<br>-|1,424,768<br>767,258<br>(65,528)|
||1,229,111|2,816,893|(1,919,506)|-|2,126,498|
||1,244,111|3,004,326|(1,962,939)|-|2,285,498|



## Transfers between funds 

The transfer of £267,728 from Unrestricted general funds to Cultural Recovery Fund relates to the amount received from Arts Council England that had not yet been spent at the year end date. 

## Purposes of restricted funds 

Funds given by The Theatres Trust Foundation  were for re-opening the building safely following shut-down. 

The Garrick Theatre Trust  grant was to contribute to the costs of creative teams and Lighting Directors on productions. The New Wolsey Theatre  contributed £7,500 towards the cost of supporting the theatre's Agent For Change. 

The grant received from The Garfield Weston Foundation  was to pay for technical equipment, to fund Learning and Participation work, and to contribute to the costs of producing the 2021 pantomime. 

The purpose of theTate & Lyle  grant was to fund Learning and Participation online resources. 

The grant from The Esmee Fairbairn Foundation was for computers, laptops and IT equipment. 

The John Thaw Foundation provided funds to run our summer school, which was delivered online in 2020. 

The grant from the Harold Hyam Wingate Foundation is to provide funding for the employment of Assistant Directors on future productions. 

Other funds listed as listed  above have been given to support the theatre's programmes of work with young people and the local community. 

## Purposes of Designated funds 

The trustees have this year decided to be explicit in showing the designations in the accounts. The Fixed Assets  fund represents the net value of Fixed Assets at the end of March 2020. The Building Fund is allocated for the purpose of setting aside funds for essential major building repairs. 

The Operational Fund  represents the amount required to cover liabilities and operating costs in the event of an orderly wind-up of operations if that situation were to arise. 

30 



Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

## Notes to the financial statements 

## For the year ended 31 March 2021 

16b Movements in funds (prior year) 

|The London Community Foundation<br>Total restricted funds<br>Unrestricted general funds<br>Non-charitable trading<br>London Borough of Newham<br>Total unrestricted funds<br>Restricted funds:<br>Total funds<br>The Linbury Trust<br>Worshipful Company of Basket Makers<br>Unrestricted funds:<br>Designated Funds:<br>Fixed Assets<br>Equity Charitable Trust<br>Aspers Good Causes Fund<br>Kings College London<br>Sir John Cass's Foundation<br>Jack Petchey Foundation<br>New Wolsey Theatre<br>Harold Hyam Wingate Foundation<br>National Theatre Connections<br>Building Fund<br>Operational Fund<br>West Ham Foundation|£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>8,750<br>5,000<br>-<br>At 1 April 2019|£<br>1,500<br>1,750<br>2,500<br>100,000<br>7,000<br>7,500<br>4,674<br>10,000<br>6,750<br>600<br>-<br>5,000<br>25,000<br>Income &<br>gains|£<br>(1,500)<br>(1,750)<br>(2,500)<br>-<br>(7,000)<br>(7,500)<br>(4,674)<br>-<br>(6,750)<br>(600)<br>(8,750)<br>(5,000)<br>(25,000)<br>Expenditure &<br>losses|£<br>-<br>-<br>-<br>(100,000)<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>Transfers|£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>10,000<br>-<br>-<br>-<br>5,000<br>-<br>At 31 March<br>2020|
|---|---|---|---|---|---|
||13,750|172,274|(71,024)|(100,000)|15,000|
||-<br>-<br>-|-<br>-<br>-|-<br>-<br>-|557,040<br>100,000<br>500,000|557,040<br>100,000<br>500,000|
||-<br>1,216,005<br>(65,371)|-<br>3,377,221<br>99,762|-<br>(3,417,540)<br>(80,966)|1,157,040<br>(1,057,040)<br>-|1,157,040<br>118,646<br>(46,575)|
||1,150,634|3,476,983|(3,498,506)|100,000|1,229,111|
||1,164,384|3,649,257|(3,569,530)|-|1,244,111|



## Transfers between funds 

Following discussion with The Esmee Fairbairn Foundation they agreed to the reclassification of their donation to support the work of the theatre in general, and the remaining unspent funds were moved from Restricted to Unrestricted. 

## Purposes of restricted funds 

The Arts Council Transition Fund is an award from the Arts Council given in 2018 to support the new Artistic Vision and inaugural season of work under the newly appointed Artistic Director, Nadia Fall. 

Funds given by The Foyle Foundation, The Linbury Trust, and the London Borough of Newham were to support our programme of capital works. 

Other funds restricted as listed  above have been given to support the theatre's programmes of work with young people. 

## 17a Analysis of group net assets between funds (current year) 

|Analysis of group net assets between funds (current year)||||
|---|---|---|---|
|Net assets at 31 March 2021<br>Current assets<br>Tangible fixed assets<br>Creditors amount falling due after more than one year|General<br>unrestricted<br>£<br>518,956<br>1,857,542<br>(250,001)|Restricted<br>funds<br>£<br>-<br>159,000<br>-|Total funds<br>£<br>518,956<br>2,016,543<br>(250,001)|
||2,126,497|159,000|2,285,498|



31 



Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

## Notes to the financial statements 

## For the year ended 31 March 2021 

- 17b Analysis of group net assets between funds (prior year) 

|Analysis of group net assets between funds (prior year)||||
|---|---|---|---|
|Current assets<br>Creditors amount falling due after more than one year<br>Tangible fixed assets<br>Net assets at 31 March 2020|General<br>unrestricted<br>£<br>557,040<br>672,070<br>-|Restricted<br>funds<br>£<br>-<br>15,001<br>-|Total funds<br>£<br>557,040<br>687,071<br>-|
||1,229,110|15,001|1,244,111|



## 18 Operating lease commitments 

The group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods: 

|The group's total future minimum lease payments under non-cancellable operating leases is<br>following periods:|as follows for each of the|as follows for each of the|
|---|---|---|
|Less than one year<br>One to five years<br>Over five years|2021<br>2020<br>£<br>£<br>3,504<br>3,504<br>5,469<br>8,973<br>-<br>-<br>8,973<br>12,477<br>Equipment||
||8,973|12,477|



The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods: 

|following periods:|||
|---|---|---|
|Less than one year<br>One to five years<br>Over five years|2021<br>2020<br>£<br>£<br>2,124<br>2,124<br>4,779<br>6,903<br>-<br>-<br>6,903<br>9,027<br>Equipment||
||6,903|9,027|



## 19 Capital commitments 

At the balance sheet date, the group had no capital commitments (2020: £nil ) in respect of development works. 

## 20 Future Commitments 

The charitable company entered into a 15 year lease with the Theatre Workshop Trust in September 2020; this is currently rent free. 

## 21 Legal charges 

The Theatre is party to a legal charge in favour of the Arts Council of England or £13,744,599 on the Freehold and Leasehold land and buildings of the Theatre. This charge was originally taken out and held jointly and severally against Pioneer Theatres, Theatre Workshops Trust and Dramrail Limited (Dramrail Limited is the previous owner of the property now owned the by Theatre Workshop Trust). However, Dramrail Limited was dissolved on 26 January 2010. The charge relates to funds provided mainly to the London Borough of Newham in respect of works to the Theatre and surrounding areas, and expires in 2021. 

32 



Pioneer Theatres Limited Trading as “Theatre Royal Stratford East” 

Notes to the financial statements 

## For the year ended 31 March 2021 

## 22 Related party transactions 

Joshua Garfield (trustee) is a councillor for LB Newham who provide TRSE with funding during the year. 

The following trustees of the charity are also directors of the subsidiary, Stratford East Trading Limited: Joshua Garfield, Christopher Hird, Margaret Hodge, Martin Pilgrim, and Peter Wilson 

There are no other related party transactions to disclose for 2021 (2020: none). 

## 23 Contingent assets or liabilities 

The charity is a company limited by guarantee and has no share capital.  The liability of each member in the event of winding up is limited to £10. 

33