OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-12-31-accounts

CHARITY NUMBER 243877 COMPANY NUMBER 00358266

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE) AND SUBSIDIARY

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

CONTENTS OF THE FINANCIAL STATEMENTS

----- Start of picture text -----
||| |---|---| |Page No.| |1-24|Report of the Trustees (incorporating the Strategic Report)| |25-26|Legal and Administrative Information| |27-30|Independent Auditor’s Report| |31|Consolidated Statement of Financial Activities| |32|Balance Sheets| |33|Consolidated Statement of Cash Flows| |34 - 55|Notes to the Financial Statements|

----- End of picture text -----

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

The Trustees have pleasure in presenting their Annual Report, including the Report of the Trustees together with the Strategic Report under the Companies Act 2006. The accompanying financial statements include the consolidated results and balance sheet of Glyndebourne Productions Limited (“GPL” and “the Charity”) and its trading subsidiary, Glyndebourne Enterprises Limited (“GEL”) for the year ended 31 December 2023.

OBJECTIVES AND ACTIVITIES

GPL was incorporated in 1939 with the objective under the Memorandum & Articles of Association of “the promotion of aesthetic education and the cultivation and improvement of public taste in music, opera or the other arts and the doing of all such other things as are incidental to the attainment of the above objects”.

Our mission to realise this objective is:

The principal activities undertaken to achieve this comprise:

The commercial activities of merchandising, art, production sale and hire, and the sale of surplus electricity generated by the Charity’s wind turbine are undertaken through GEL to generate additional income streams to support the Charity’s core objectives.

Public Benefit

The Trustees have given due consideration to the Charity Commission’s general guidance on public benefit and are satisfied that our objectives, strategy, future plans and activities, as noted above and further referenced under the four core objectives in the Strategic Report, fall within the charitable purpose of “the advancement of the arts, culture, heritage of science” as required by Charities Act 2011.

1

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

In setting out above the principal activities undertaken by the Charity to achieve its objective and mission the Trustees consider there to be clearly identifiable benefits of the Charity which are closely related to its aims.

Glyndebourne’s aims are intended to benefit the public generally, rather than a specific section of it. The opportunities created by specific areas of activity are outlined in more detail under ACHIEVEMENTS AND PERFORMANCE below.

STRATEGIC REPORT

2023 saw the highest level of paid-attendance to performances at Glyndebourne in more than a decade. Audiences returned to a size last seen in 2018 and we enjoyed a 97% occupancy in the auditorium in both the Festival and an expanded Autumn Season. For the first time ever, we added performances ‘by popular demand’.

We presented three new Festival productions ( Don Giovanni, Dialogues des Carmelites, Semele ) alongside three much-loved revivals ( L’elisir d’amore, A Midsummer Night’s Dream, The Rake’s Progress ), to audiences totalling over 93,000.

The Autumn Season saw an expanded programme with a total attendance of over 32,000 by audiences of all ages taking opportunities to engage with live opera, concerts, recitals and family days at Glyndebourne. Funding from the Arts Council England for this continued in the form of a reduced NPO grant for 2023-26, nonetheless a vital contribution to our talent development work and Learning and Engagement programme. This funding has been reduced by 52% for the 2023-26 period, resulting in a cancellation of the Tour planned for 2023, but creating an opportunity for Glyndebourne to reimagine and expand our activity and impact at Glyndebourne in the autumn.

2023 also saw the continuation of a substantial and essential capital investment programme to replace and overhaul ageing parts of the opera house building and infrastructure. Our £7m project to design and install a new fully automated fly system completed in early 2023. We are progressing with the next phases of our wider stage automation infrastructure project through 2024-25, addressing upgrades, rebuilds and redevelopments in our orchestra pit, stage floor and under-stage mezzanine level.

Glyndebourne’s finances continue to be in good health, holding up well through 2023. Box office sales and support from members and donors were strong in the face of financial challenges around sustained high inflation rates compounding pressures on our cost base, interest rate increases adding to the cost of borrowing, and volatile financial markets affecting our investment portfolio during the year.

At the time of publication of this report, we are midway through the 2024 Festival, a programme of 77 performances over five full-scale productions: two exciting new productions of Bizet’s Carmen and Lehar’s The Merry Widow , alongside revivals of the popular Mozart Die Zauberflöte , our classic production of Handel’s Giulio Cesare , and Glyndebourne’s powerful production of Wagner’s timeless Tristan und Isolde . Box office sales across our members’ ballot and public bookings have been strong with all productions already more than 90% sold including one fully sold out. Demand for tickets has resulted in two additional performances being incorporated into the programme.

2

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

2024 marks 90 years since the creation of the Glyndebourne Festival. We remain confident that with the financial discipline and continued support from audiences, members, donors, supporters, artists and staff that has held the charity in good stead for many years, Glyndebourne is in a strong financial position to be able to invest in its future. Financial forecasts to 2026 are under regular review to maintain a live picture of forecast finances. The Board of Trustees and Executive Directors are confident that Glyndebourne will continue as a going concern.

ACHIEVEMENTS AND PERFORMANCE

The four key strands to our business model - the Festival, Autumn Season, Learning and Engagement, and Media Development - all contribute to our four core objectives. None of these objectives can be achieved in isolation. We will only be able to continue to deliver the highest quality operatic experience to as many people as possible, whether live or digitally, if we have the appropriate financial resources in place to do so. Our achievements and performance in 2023, and future plans relevant to each of our four core strategic objectives are set out on the following pages.

(1) Create world-class transformative operatic experiences

Glyndebourne’s global reputation stems from a passion for artistic excellence. Founder John Christie insisted on “doing not the best that we can do but the best that can be done anywhere”. For ninety years that has remained Glyndebourne’s touchstone, demonstrated by the nomination of our five-star 2023 Festival production of Poulenc’s Dialogues des Carmélites for the Achievement in Opera award at the UK Theatre Awards. Alongside this, the production’s director, Barrie Kosky was recognised as Best Director for his work in 2023 at the Opera Awards 2023.

We strive to provide the best possible environment for artists with a long rehearsal period, world-class coaching and a strong culture of nurture. Emerging artists are offered development opportunities through both the programme of Autumn Season productions and our extensive understudy programme. Our Chorus is world-renowned, with all members being appraised annually in order to maintain artistic standards, and a well-established Chorus development scheme offers selected choristers the opportunity for additional coaching and solo concert performances. Glyndebourne and its audiences are noted for their sense of adventure with programmes balancing well-known repertoire with less familiar works, both old and new, including British premieres and new commissions.

Glyndebourne’s 2023 Festival season presented a new production of Mozart’s Don Giovanni by director Mariame Clement; Donizetti’s romantic comedy L’elisir d’amore ; a Glyndebourne premiere for Poulenc’s revolutionary modern masterpiece Dialogues des Carmelites ; a return for Peter Hall’s classic magical production of Britten’s A Midsummer Night’s Dream ; the Festival’s first ever staging of Handel’s Semele ; and the return of Glyndebourne’s 1975 production of The Rake’s Progress.

After more than 50 years of touring to cities across England, the reduction in funding from Arts Council England for our touring activity resulted in the cancellation of the planned Tour for 2023, however it also created an opportunity for Glyndebourne to take a different approach outside of the Festival season in 2023. We successfully launched an extended Autumn Season at Glyndebourne with six weeks of opera and concerts alongside wider community outreach and participation. We brought Don Giovanni and L’elisir d’amore back from the Festival, reviving both productions at Glyndebourne in the autumn

3

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

with new performing companies (cast, conductors, and orchestra) showcasing new and emerging talent, along with concert performances of Handel’s Messiah and Haydn’s The Creation , a Talent Development concert, and our annual programme of Christmas concerts.

Our Learning and Engagement (“L&E”) programme focused on developing partnerships across East and West Sussex and deepening our engagement with schools, participants, visitors and audiences in our region. This work was delivered through talent programmes for young people, such as the Glyndebourne Academy and workshops and performances for the Glyndebourne Youth Opera, and our schools programme, amongst a wide ranging programme of projects and activities. Further details are shared in our review of Diversity and Inclusion on pages 20-21 .

(2) Remain financially independent

Glyndebourne’s commitment to doing “the best that can be done anywhere” has earned the charity a loyal following, enabling our financial independence to be preserved. However, we are not complacent about the challenges we face in the cost of living crisis compounded by ongoing global events, and the need to invest to maintain our competitive edge from an artistic, audience and staff perspective.

Festival ticket prices are set at a level intended to fund annual operating costs, with the privately-funded Festival bearing all fixed costs associated with operating the Charity. This is essential in ensuring the financial viability of the Autumn Season and Learning & Engagement activity which are key contributors to GPL’s strategy to make our work available to broader audiences. In these times of high inflation there is increasing pressure on box office income and fundraising which together fund 80-90% of annual operating costs.

Details on our financial performance for 2023 and financial outlook are set out in the FINANCIAL REVIEW on pages 11-16.

Fundraising and memberships

Income from our supporters includes membership subscriptions, donations, associated gift aid, and legacies. We are mindful of our potential over-reliance on our loyal members and donors who, in addition to giving much needed sponsorships for opera productions, also donate to the Annual Fund and the New Generation Programme, supporting a wide range of additional activity including filming, schools programme, Under 30s programme, and other audience and artist development activity.

We continued to fundraise for our large scale capital project to replace and automate essential backstage fly systems. Major equipment installation phases of this £7m capital investment were undertaken in the winter periods of 2021/22 and 2022/23. The Annual Fund was designated to support this capital project over the five year period 2019-2023 and donations of over £656k (inclusive of gift aid) were made to this fund in 2023.

4

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

We received £558k of unrestricted legacy income in 2023 (2022: £365k), providing an additional valuable source of income. We continue to recognise and thank those generous and forward-thinking individuals who have decided to leave a gift to GPL in their will through the living legacy programme, the John Christie Society.

The 2023 Autumn Season and Learning & Engagement programme continued to rely on vital support from Arts Council England in the form of a grant of £800k. The grant covered around 14% (2022: 23%) of direct costs of the Autumn Season and Learning and Engagement programme with the balance raised through ticket sales, the support of members, donors and sponsors, and subsidy from the Festival. With the Arts Council funding support having been reduced by 52% for 2023-26, we have had to adapt our approach outside of the Festival season. The reduction in ACE funding across the arts sector brings challenges, but Glyndebourne remains committed to being a year-round organisation and to delivering our core purpose of enriching the lives of as many people as possible through opera.

We do not take this support for granted and are constantly working to expand our pool of donors and to ensure that the Charity’s resources are used responsibly to best effect.

Fundraising governance

In order to achieve the objective of remaining financially independent, GPL solicits funding support from individuals, trusts and corporate contacts. The majority of these supporters are already GPL members and have an established relationship with the Charity. Policies and procedures for the solicitation of funds are appropriate, well-understood, monitored and reviewed on a regular basis. Each solicitation is based on a planned and authorised cultivation strategy. This strategy includes the method of approach, the sequencing of funding requests and the plan for thanking, following up and cultivating for further gifts. In developing the strategy, data protection policies and other relevant legislation and best practice are followed and the solicitation process is fully tracked on our CRM system.

GPL management and Trustees treat the relationship with donors and approach to fundraising very seriously. No complaints related to fundraising were received in 2023 (2022: none). We continue to review all of our fundraising practice and policies to ensure that relevant legislation and best-practice guidelines are complied with. Specifically, we comply with the Fundraising Code of Practice, the Information Commissioner’s Office Direct Marketing guidelines, the UK General Data Protection Regulations, and are registered with the Fundraising Regulator. We want our donors to be proud to support Glyndebourne, not to feel pressured into donating, and we endeavour not to contact anyone who doesn’t want us to. We take our supporters’ requests and the protection of their personal data seriously. We never swap or sell their data. We use a third-party company which collates publicly-available information for us, but does not undertake profiling. Our supporters choose what communications they receive from us and how we contact them; they can amend their choices or opt out of our communications at any time. All of our fundraising and customer service staff follow best-practice guidelines for dealing with vulnerable people.

Other income

Theatre Tax Relief (TTR), introduced by the Government in 2014 with the objective of boosting employment in the Arts, continues to generate a welcome additional source of income and at higher rates of relief announced in the Government’s Budget in Spring 2024.

5

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

Commercial activity is undertaken by the wholly-owned subsidiary, Glyndebourne Enterprises Ltd (“GEL”): merchandising, art, production hire, props-making for commercial purposes, and the generation and sale of electricity produced by the wind turbine. This provides a valuable source of income to the Charity in meeting its objective to remain financially independent. For the year ended 31 December 2023, GEL generated a profit of £3.4m (2022: £3m), including TTR. Profits of £3.1m (2022: £1.6m) were gifted to the Charity in 2023.

Whilst we continue to make every effort to achieve box office and fundraising targets each year, and bring in additional income through other revenue generating activities, we equally recognise the importance of cost control in remaining financially independent. As part of our budgeting and re-forecasting process we routinely scrutinise our cost base and challenge ourselves to find more efficient ways of working to ensure that our core financial objectives continue to be met.

(3) Engage broad audiences

Glyndebourne engages with audiences in a variety of ways, be it live at Glyndebourne, participation through one of our Learning and Engagement programmes, or engagement through media development. The Charity aims to be truly inclusive by maximising the reach, engagement and diversity of people who experience Glyndebourne.

2023 saw the highest paid-attendance to performances at Glyndebourne for more than a decade, at around 112,000.

Across the 75 performances of opera in Festival 2023, we filled over 93,000 seats, generating £16.5m of box office income. This included two additional dates for Don Giovanni and Semele, added to the original schedule of performances to meet demand. Nearly 1,700 seats were sold to those aged 30 and under for £30-£45 each as part of the Under 30s audience development programme, the discounted ticket price primarily being funded by generous donors giving to the New Generation Programme. 1,399 tickets were sold to Under 40s Members who enjoy 50% off a pair of tickets each Festival season.

The 2023 Autumn season was enjoyed by an audience of 24,340 across 20 performances at Glyndebourne.

We reached over 5,000 children through performances and events during the Autumn. This included 2,274 subsidised tickets sold for our two dedicated performances for schools, with 95% of tickets allocated to state schools.

Our membership numbers across Glyndebourne Festival Society (GFS) lifelong membership and Associate Memberships (ASM) grew to over 14,000 for 2023 (2022: over 13,200). Our Under 40s membership, a pipeline to Associate Membership, grew to 526 for 2023 (2022: 211).

Media development facilitates the distribution of Glyndebourne’s work through digital streams, cinema broadcasts, and television, enabling the Charity to reach and engage with as broad an audience as possible, helping to break down barriers to access and experience our work including those associated with cost and location. We invested £171k in filming our new Festival production of Semele in 2023, available to stream on the Glyndebourne Encore subscription platform. Our productions of Rusalka and

6

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

Vanessa were available to stream for free from our website and on YouTube in May - June 2023 and December 2023 into early January 2024, respectively.

We aim to continue to grow our audience numbers and demand for as many performances of live opera as can be accommodated in the Festival period.

(4) Create a stimulating and inspirational environment for all

The Charity strives to make Glyndebourne a stimulating, inspirational and inclusive environment for staff, artists, audience and everyone else we engage with. Our continued engagement with inspirational directors, world-class orchestras and performers, and the ongoing drive to commission new work, go hand in hand with newer innovations such as online streaming to reach new audiences.

From a staff perspective, the Charity aims to inspire and enable all company members to fulfil their potential in line with GPL’s four strategic objectives. Our mission to do ‘not the best that we can do, but the best that can be done anywhere’ requires a culture where everyone is enabled to perform their best, produce their best, and participate in Glyndebourne’s continued journey. Shaping our culture is key for our strategic objective of ‘Creates a stimulating and inspirational environment for all’ and aims to make Glyndebourne a better place to work, or indeed the best place to work. To facilitate this, regular staff engagement surveys are conducted and acted upon. An ongoing consultancy on management and leadership culture will help to further enhance and shape company culture.

Our greatest priority remains the health and well being of everyone we engage with, our Company members, audiences and contractors. Furthering our commitment to create a safe working environment for all, we have 17 members of staff trained as Mental Health First Aiders who are there to listen, support and be able to signpost professional help. We are part of the Guardians Network, a programme set up by the Old Vic, which offers a confidential outlet for colleagues to share concerns about behaviour at work and as part of this we have two internally appointed and trained 'Guardians.'

From an audience and artist perspective, the charity aims to provide a positive experience over and above the opera itself, mindful of the need to maintain our competitive edge and the quality of experience for all who engage with GPL. Post-show questionnaires are sent to all ticket bookers and have a very high response rate, helping to inform future investment.

Environmental report

At Glyndebourne we remain committed to doing everything we can to reduce the impact of what we do on the environment, and to encourage everyone we engage with to do the same. We strive to establish more sustainable ways of continuing to deliver the highest quality opera whilst creating a stimulating and inspirational environment for all.

In line with the UN-backed global Race to Zero, Glyndebourne is committed to halving our carbon emissions by 2030 and achieving net zero by 2050. Taking 2019 as the baseline for our carbon emissions, we have reduced Glyndebourne’s direct carbon emissions by 37% through the success of the Glyndebourne wind turbine, the adoption of a wide-range of energy-saving measures and a move to zero-waste-to-landfill.

7

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

Since the commissioning of the Glyndebourne wind turbine in 2012, it has produced the equivalent of 103% of the electricity used by Glyndebourne in the period 2012-23, with the balance being supplied to the national grid supplying green energy to local homes. The wind turbine generated 1,617 megawatt hours of electricity in 2023 (2022: 1,257 MwH), with 53% (2022: 55%) of this being used by Glyndebourne and the balance fed directly to the national grid.

The below chart tracks our direct carbon emissions since 2019, measured using the Creative Climate Tools methodology developed by Julie’s Bicycle, a leading non-profit organisation partnering with over 2,000 arts and cultural organisations in the UK and internationally to mobilise the sector to act on the climate crisis.

During 2023, Julie’s Bicycle undertook a review of the underlying methodology for calculating carbon emissions and introduced a change to how emissions related to waste are calculated within the Creative Climate Tools. The previously used government emissions factors only covered the impact of the transport of waste to treatment facilities, omitting the emissions of the waste itself and the treatment options. Julie’s Bicycle opted to move towards a more detailed and comprehensive methodology that better takes into account lifecycle emissions to give a more useful and complete picture of carbon emissions. As a result, the carbon emissions reported under this upgraded methodology are higher than previously reported (2019 baseline year: 1,200 tonnes CO2 compared with 490 tonnes CO2 under the old methodology).

Since 2011 our Environmental Champions, a group of staff volunteers representing all departments, have worked hard to drive initiatives to further reduce our carbon footprint. Actions undertaken in 2023 included the following:

8

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

Scope 1 and 2:

Scope 3:

Scope 4:

Actions planned for 2024 include:

Scope 1 and 2:

Scope 3:

For 2024 we remain committed to:

We also report under the UK mandatory Streamlined Energy and Carbon Reporting (SECR) requirements, covering UK energy use and associated greenhouse gas emissions as a minimum relating

9

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

to gas, electricity and transport fuel, as well as an intensity ratio, and information relating to energy efficiency action.

The table below details our energy consumption and emissions.

GHG emissions and energy use data Scope Unit 2023 2022
Energy consumption kWh 1,906,748 1,974,550
Emissions from combustion of gas 1 tCO2e 220 205
Emissions from combustion of fuel for
transport purposes		 1 tCO2e 33 18
Emissions from business travel in rental cars
or
employee-owned
vehicles
where
company is responsible for purchasing fuel		 3 tCO2e 5 22
Emissions from purchased electricity 2 tCO2e 153 180
Total emissions tCO2e 411 425
Intensity ratio: tCO2e per m2 of floor area 0.12 0.12

Glyndebourne’s energy consumption in 2023 totalled 1.9m kWh (2022: 2.0m kWh). This includes purchased electricity and gas. Our transport emissions include the use of our minibuses which are available to all members of staff and performing companies to transport them to and from Lewes and Glyndebourne to encourage fewer individual car journeys. The decrease in total emissions in 2023 compared with 2022 primarily reflects a reduction in the need to buy in electricity from the national grid.

Intensity ratio is based on tCO2e/m2 of occupied floor space across both the Glyndebourne site and our storage facility off site.

Methodology - The methodology used is based on the Greenhouse Gas Protocol Corporation Standard (GHG Protocol). Electricity and gas data is collected from monthly meter readings. Transport data is compiled from employee expense claims and invoices.

10

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

FINANCIAL REVIEW

Glyndebourne’s finances continued to be in good health through 2023. However, like many organisations in the arts and culture sector, there were financial challenges.

In the face of these challenges, we were grateful for the loyal support from our members, donors and audiences.

We progressed with our capital investment programme to replace and overhaul areas of the opera house building and infrastructure now due attention having been maintained and serviced well for nearly three decades. Capital expenditure in 2023 totalled £4.3m.

We completed the largest of our current capital investments, a £7m multi-year project encompassing design and installation of a new fully automated fly system, early in 2023. This new system was showcased in our Festival 2023 productions. Other capital investments in 2023 included those in lighting and sound systems for the stage, and to address infrastructure for communications systems critical for operations and shows. We overhauled backstage lifts essential for running costumes to dressing rooms during rehearsals and performances, We also invested for climate considerations and greater energy efficiency with the start of a rolling programme to install double-glazing in all windows across the opera house.

Total income before Creative Tax Reliefs (CTR) was £33.8m (2022: £33.2m).

Total operating costs were £33.2m (2022: £32.0m). This includes the key area of spend in direct production costs: £16.0m compared with £16.5m in 2022 with investment into three new productions in the 2023 repertoire compared with four in 2022.

11

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

Creative Tax Reliefs (Theatre Tax Relief and Orchestra Tax Relief) for 2023 were £3.1m (2022: £3.0m), continuing to benefit from higher rates of relief introduced by the government. The net financial result for the year was a surplus of £3.7m (2022: £4.2m inclusive of one-off sources of income). In addition to this, unrealised gains on investments of £1.6m (2022: losses of £1.5m) resulted in reserves increasing by £5.3m (2022: £2.7m).

The Christie Pension and Life Assurance Scheme continues to be in a net surplus position, £7.8m at 31 December 2023 (2022: £11.3m). The surplus has not been recognised in the financial statements in accordance with the principles of FRS 102 regarding recoverability of the pension scheme asset.

Cash and investments at the year-end were £49.5m (2022: £47.0m), net of a term loan from the government’s Coronavirus Business Interruption Loan Scheme (CBILS) which was repaid in full during 2023. Cash reserves held up through 2023 despite inflationary pressures on our cost base and continuing investment in the theatre building and infrastructure and the wider site. This was thanks largely to strong box office performance, the enhanced theatre tax relief, and a boost to the financial markets at the end of the year.

Financial outlook

Steadying the ship on operating finances has been the big financial challenge in recent years. The financial outlook has strengthened with a new confidence that has come from the growth in our audience numbers and therefore box office revenue. The government’s announcement in the Spring 2024 Budget to introduce new permanent higher rates of theatre tax credits has also had a significantly positive impact on financial forecasts.

The outlook does remain challenging on the cost side, with sustained high inflation rates through 2022-23 putting accumulated pressure on our cost base. The planning of and commitment to our artistic programme three to four years in advance introduces complexities and challenges in developing and managing the related financial outlook. The repertoire for 2024-25 was planned pre-pandemic and before the days of high inflation, and so the cost of making productions is now looking more expensive than previously anticipated. Many other things we pay for remain expensive compared with what they previously cost.

The reduction in funding from the Arts Council England for our work on talent development and work with children and young people has also created financial challenges. We have secured some major additional funding for our Autumn Season, which focuses on these areas of work, for the next three years, but without the scale of the previous ACE grant we are still set to lose money from this important and impactful activity.

A number of actions are underway to remedy the impact of stubbornly high operating spend on finances. Key within this is the optimisation of performance numbers to meet demand from audiences - once the investment has been made in creating a production, rehearsing it and taking it to the stage, every performance enjoyed by our audiences makes a financial contribution towards covering the cost of the investment in the production and the wider costs of running the Festival and Glyndebourne year round.

We continue to maintain our longstanding discipline around operating costs alongside investing for the future: in productions and other aspects of the Glyndebourne experience for visitors, artists, and staff.

12

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

We are now firmly in a period of significant capital expenditure and investment. Next up in our longer term stage automation infrastructure programme are the upgrade of the orchestra pit lifts and safety net (work ongoing in 2024) followed by a rebuild of the stage floor and redevelopment of an under-stage mezzanine level incorporating a number of personnel-riding lifts (scheduled for 2025).

We have other capital projects planned, many of which are not optional. The theatre building and its infrastructure, equipment and facilities are 30 years old and have been serviced and maintained well, but we must invest to ward off obsolescence of equipment and technology, to maintain and enhance our customer experience, and to keep pace with developing health and safety requirements. Planned investments range from:

The Charity’s financial reserves have been carefully built up over many years to afford such a programme of major and essential capital investment. Glyndebourne is in a strong financial position to be able to invest in its future in partnership with supporters. We do not believe there to be a risk to our going concern.

Investment Policy

Under the Articles of Association, the Trustees have delegated authority to the charity’s investment managers to manage investments for the Charity in accordance with the mandate laid down by the Trustees. The investment managers meet with and report on a regular basis to the Audit, Finance and Compliance Committee. Managed funds at the year end were valued at £42.7m (2022: £41.2m).

As at 31 December 2023, £41.2m was invested with Capital Group and £1.5m with Rothschild with the funds spread across the following portfolios:

Capital Group
Long term reserves
New Generation Programme
Gillian Fane Aspiring Artists
Wood Peters
Rothschild
Long term reserves
New Generation Programme
Wood Peters
Total Investments		 2023
Market Value
of investments
£m
Performance
YTD
%
31.0
3.77
6.1
3.77
3.2
3.77
0.9
6.27
1.12
17.03
0.25
17.02
0.08
17.01
42.7		 2022
Market Value
of investments
£m
Performance
YTD
%
30.0
-2.74
5.9
-2.74
3.2
-2.74
0.9
-0.36
0.96
-8.31
0.21
-16.82
0.07
-16.81
41.2

13

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

Whilst the overall objective is long term capital appreciation, the funds have been benchmarked against inflation +3.5% during the year, accepting that it only makes sense to assess performance over long time periods given that in order to achieve this level of return requires a high level of equity exposure and risk of volatility. The long term reserves and the NGP and GFAA portfolios invested with Capital Group are invested with the objective of achieving long term growth of capital and enhancing the purchasing power of reserves, with the portfolio having significant equity exposure. The fund appreciated in value by 3.77% in 2023, with annualised returns of 6.70% over the life of the fund.

The Wood Peters portfolio held with Capital Group is separately invested in a high income growth fund with the objective of generating an agreed level of income annually to support funding requirements for touring activity and cover artists. The fund predominantly invests in emerging market government bonds and corporate high-yield bonds globally. This fund appreciated in value by 6.27% in 2023, with annualised returns of 5.46% over the life of the fund.

Reserves Policy

The financial objective remains to earn sufficient income on a 3 year rolling basis to cover expenditure, whilst generating surplus cash sufficient to build up free reserves to ensure:

Free reserves are deemed to be those that are readily realisable, excluding funds whose uses are restricted or designated for particular purposes. Such reserves exclude property and other fixed assets that will continue to be used in the day-to-day running of the Charity. Reserves preservation remains crucial to ensure the ability to continue to invest in the Charity, its physical assets and to protect against the unpredictable financial impact of circumstances beyond management control such as changing legislation and external economic factors.

As a matter of policy, each year the Trustees review the value of reserves required to be held in investments and cash not restricted to any particular purpose. The Board considers the Charity’s exposure to the risks of any significant loss of income and of unforeseen expenditure which cannot be mitigated by executive action. The degree of risk ascribed to each such event is assessed.

The Charity sets a target level of free reserves each year, which is calculated on the basis of having to fulfil financial commitments and continue in business in a worst case scenario uninsurable event. This takes account of the fact that the Festival receives no public subsidy and is wholly reliant on fundraising and box office (a 5% reduction in Festival box office income would reduce reserves by approximately £0.9m) and the fact that there is a significant lead-time to maintain artistic standards (financial commitments are entered up to 4 years in advance with the contracting of artists whilst the related income is rarely committed more than a year ahead). The target for 2023 was £14.2m. Free reserves as

14

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

at 31 December 2023 were £20.7m (2022: £21.3m). We expect this to move towards the target level as we progress with the planned programme of essential capital investments.

Reserves as at 31 December:

Endowment Funds
Restricted Funds
Tangible Fixed Assets
Designated funds
General reserves
Unrestricted Funds
Total Group Reserves		 37.8
15.7
20.7		 2023
£m
1.0
10.0


73.8
85.2



35.1
12.6
21.3		 2022
£m
1.0
9.8
69.0
79.8

Financial budgets for 2024-2026 support the Trustees’ reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the annual financial statements.

Principal risks and uncertainties

The Board of Trustees recognises its responsibility for an overall strategy of risk management. This strategy comprises:

Such procedures are designed to provide reasonable, but not absolute, assurance against material mismanagement or loss. Internal audit and assurance reviews of safeguarding, health and safety, IT penetration testing, customer feedback processes, and a business continuity exercise were carried out in 2023. The Trustees believe that there is a satisfactory system of well-managed internal controls.

The key specific risks for the foreseeable future, identified through this process, together with mitigation plans are shown in the following table:

15

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

Risk impact on reputation (R), competition (C), operations (O), financial (F).

Risk R C O F Management
War
or
pandemic
–
risk
to
financial
sustainability due to a significant fall in any
income stream as a result of pandemic or war and
resulting
global
and
national
economic
uncertainty, turbulence in financial markets or
reduced audience confidence in attending events.		 � � � ●
Strength of reserves
●
Strong governance, policies
and training on processes
●
Maintenance of good
communications
Rising inflation / BREXIT -increasing the cost
of goods and services and making supply lines
less reliable.		 � � ●
Contingency planning
●
Discipline of core financial
objectives
Over-reliance on Festival box office income � � ●
Membership model
●
Strategy for reaching new
audiences
●
Identification and development
of new income streams
Serious accident or similar health and safety
shortcoming -resulting in prosecution, fines,
potential loss of licence and reputational damage.		 � � � ●
Governance and processes
●
Policy
●
Training
●
Culture
●
Insurance
Cyber fraud or data breach � � ●
Governance, policies, training
programme, culture
●
Insurance
●
Phishing-testing, penetration
testing and regular internal
audit reviews
Ageing building and infrastructure � � � ●
Capital expenditure
programmes
●
Monitoring and management of
assets and infrastructure
●
Ability of staff to address
issues as they arise
Recruitment of staff � � ●
Staff benefits
●
Working environment
●
Culture

16

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Glyndebourne Productions Limited is a company limited by guarantee (company registration no: 00358266) and is registered as a charity (charity registration no: 243877). It is governed by a Memorandum and Articles of Association, last amended on 27 June 2019.

Legal and administrative information set out on pages 25-26 form part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association, the Companies Act 2006 and the Charities SORP (FRS 102). The Board monitors its governance practice against the seven principles of the Charity Governance Code and recommended practice. The Board adopts the best practice principles of the Code, proportionately to the Charity’s circumstances, and routinely challenges themselves on areas for improvement/ implementation.

Board of Trustees

The Board of Trustees is responsible for the overall governance of the Charity. Trustees are elected by the Board, based on a fair recruitment process representative of GPL as an equal opportunities employer, including meetings between prospective candidates and existing members of the Board. In accordance with the Articles of Association, the total number may not be less than four nor more than ten. The induction process for new Board members includes the provision of background information, details of the constitution of the Charity and its connected parties, budgets, recent financial statements, minutes of recent Board meetings and papers dealing with key current issues, plus the opportunity for meetings with key executives. Effective partnership between the Trustees and the executive management continues to contribute significantly to the success of the business. Board meetings were held on five occasions, in addition to an Annual General Meeting, throughout 2023. At such meetings Trustees review strategy, operational performance and authorise operating plans and budgets. Further strategic reviews are undertaken as and when required for any other purpose.

The Board delegates the exercise of certain powers in connection with the management and administration of the Charity as set out below. This is controlled by regular reporting to the Board, with the delegated authorities being approved by the Board annually.

Audit, Finance and Compliance Committee

This Committee meets formally three times a year, or more often if necessary. Minutes of these meetings are presented to the Board of GPL for formal ratification. The Committee is charged with reviewing the process and effectiveness of financial reporting, internal control and risk management, external and independent internal audits, and management of the Charity’s investment portfolios. The Committee meets with the external auditors at least annually without any members of the Glyndebourne management in attendance. Furthermore, the Committee ensures that proper procedures are in place to manage cash resources prudently whilst maintaining sufficient funds to meet daily cash requirements. The Committee advises the Board of Trustees on the appropriate level of free reserves and any significant change in investment strategy.

Nominations Committee

The Nominations Committee is charged with succession planning and Board appointments.

17

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

Remuneration Committee

The Remuneration Committee meets formally at least twice a year and is charged with the review of performance of the executive management team, remuneration and compensation policy. Remuneration is set in line with national economics, organisational financial performance and market expectations from benchmarking.

Development Committee

This Committee’s primary purposes cover broadening the range of funding available to GPL and overseeing the systems and processes in place to ensure ethical fundraising, following best practice and meeting all regulatory requirements. This Committee meets four times a year.

Commercial Committee

The Commercial Committee was established in 2023 with the objective to provide an overview of prioritisation, resourcing and results concerning Glyndebourne’s secondary revenue streams and to agree recommendations to enhance and diversify the theatre's income sources. This Committee meets three times a year.

Directors Group

Gus Christie, Executive Chairman, leads the executive team responsible for the day-to-day management of the Charity. During the year the team comprised Richard Davidson-Houston (Managing Director), Stephen Langridge (Artistic Director), Veronica Brooks (Director of Organisational Development to 16 February 2023), Eric Gautron (Technical Director to 05 October 2023), Donna Marsh (Director of Operations), Helen McCarthy (Director of Development), Steven Naylor (Director of Artistic Administration), Tyler Stoops (Director of Audience Development), and Lisa Wong (Finance Director). The Directors Group report to the Board of Trustees on a regular basis.

The pay of the executive management team is reviewed annually by the Remuneration Committee of the Board, with occasional formal benchmarking against other Arts organisations. Annual pay awards are normally based on CPI and average earnings data, but the Remuneration Committee has the authority to award different pay reviews should market forces dictate or responsibilities change.

Our Governance structure continues to be supported by an annual programme of both external and internal independent audit and a dedicated individual responsible for risk and compliance.

Group Structure

GPL has a wholly owned trading subsidiary, Glyndebourne Enterprises Limited (“GEL”). The business of the subsidiary comprises retail, art and gallery, production sale and hire, the operation of GPL’s wind turbine, commercial props-making, as well as being contracted by GPL to produce all of the Festival, Autumn Season, community and youth opera productions each year. The objective of the trading subsidiary is to raise funds to support the charitable activities of its holding company.

18

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

Connected Charity

Glyndebourne America Inc. (“GA”) was established in 2019 as successor to Glyndebourne Association America (“GAA”), itself established in 1976 for the purpose of attracting support from people and organisations in America who are sympathetically disposed to the promotion of opera. Michael Lynch, Chairman of the Association, and John Botts remained as Trustees of GA and GAA throughout the year.

Total cash and investments held by GA at the year-end amounted to $389k (2022: $560k held by GA, $35k held by GAA). Grants totalling $503k were made to GPL during the year by GA (2022: $143k). A final grant of $21k was made by GAA to GPL on legal dissolution of GAA.

Connected Persons

The relationship between GPL and the Christie family is critical to the long term financial and operational strategy of the Charity. GPL was founded by John Christie, grandfather of Gus Christie, Executive Chairman, in 1934. Since that date the Christie family - John, followed by his son, Sir George Christie and currently Gus Christie - have lived on site in the Mansion House (the “House”), which is not an asset of GPL, and have taken an active role in the management and supervision of the Charity. This relationship with the family is important to members, donors, staff and artists. The Christie’s home, the Mansion House, is used by GPL to accommodate company members for 7 months of the year from the start of Festival rehearsals to the end of the Autumn Season performances which therefore means the family have little privacy. Gus entertains the Company and donors on a regular basis in the House and the Organ Room is open to audiences on every performance day. The gardens are open to opera audiences on performance days and to Company members every day of the year. There is a formal agreement in place between GPL and Gus for the sharing of running costs of the House. No rent is charged to GPL, providing significant benefit to GPL in saving the costs of essential accommodation for artists and entertaining space. The Opera House, owned by a Trust of which the family and GPL are beneficiaries, is let to GPL at a peppercorn rent to 2075.

Gus Christie continued to be engaged by the Charity during the year, and attended Board meetings in the capacity of a non-voting advisory trustee. Details of transactions with the Christie family are set out in Note 19 to the financial statements.

Health, Safety and Safeguarding

The Glyndebourne management and Trustees take the issues of Health, safety and safeguarding seriously. Two Trustees are designated to take the lead on all health, safety and safeguarding matters.

The Charity has a comprehensive health and safety policy which is regularly reviewed, and employs suitably qualified individuals in the areas of health and safety. Procedures are managed and monitored by a group of safety representatives from all key departments, which reports to the Health and Safety Committee, chaired by the Managing Director and of which several key senior executives are members. This committee meets regularly and management reports formally to the Board on health and safety matters at least once a year.

Safeguarding is monitored by a Safeguarding Committee of representatives from areas of the company working with children and vulnerable adults. There are comprehensive safeguarding policies for

19

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

children and at-risk adults. All Trustees and executive directors undertake safeguarding training developed by NSPCC.

Employee Involvement

The Charity continues to be focussed on being an organisation that employees enjoy working for, where they feel supported and developed. It operates an open communications policy, informing and seeking the views of its employees through an integrated internal communications plan comprising a range of meeting forums available to all staff. Regular company-wide staff meetings take place throughout the year. Regular meetings are held with the key recognised unions, BECTU and Equity.

Diversity and Inclusion (D&I)

We have a structure in place to support us to create an inclusive and welcoming workplace for all artists and staff irrespective of background or identity. This structure comprises a Diversity and Inclusion (D&I) Steering Group made up of a diverse group of staff volunteers plus three D&I working groups focussing on key areas - Artistic; Audience & Communities; and Workforce, Leadership & Governance. The working groups report to our Board and Directors quarterly and each group consists of key staff in that area. Each working group focuses on aims, objectives and actions set out in an annual action plan, which is updated and approved by the Board along with our D&I company policy. The Board has been closely involved in setting objectives, communicating with working groups and executive Directors.

In 2023 we delivered a number of talent programmes to nurture and promote artists from underrepresented backgrounds and individuals that may face different challenges to progressing within our industry.

We worked across the year to build closer connections with diverse audiences and communities, including those that are currently underrepresented. This included delivering on new plans for our Autumn Season and, particularly, working with wider communities through the Resound programme.

20

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

Our Workforce, Leadership & Governance working group continued to lead on developing plans that ensures we create an inclusive and welcoming workplace for all. This includes:

Disabled persons

We are a Disability Confident accredited employer and actively encourage applications from disabled candidates as part of our recruitment policies. Where such candidates meet the minimum criteria for the role, they are shortlisted for interview. The physical features of our premises are monitored to assess whether they place disabled workers, job applicants or project participants at a substantial disadvantage compared to others. Where reasonable, we take steps to improve access for disabled company members. All staff, regardless of any disability, are given appropriate access to training to enable them to progress within the organisation. We advertise all our vacancies on a local job board Disability Arts Online. Our annual work experience programme ‘Open Doors’ welcomes young people from both mainstream and special educational needs and disabilities (SEND) schools making appropriate adaptations to the programme for their cognitive and physical needs.

Training and Development

The Charity is committed to the training, career development and promotion of all employees. Training programmes are provided to meet any ongoing needs, with the aim of developing employees for both their current and future roles. Following a mandatory D&I workshop run by Creative Access for all permanent and seasonal permanent staff we commissioned a film by the same trainer which we have used for groups of permanent staff and new starters, as part of the induction programme for Front of House staff and will continue to use it for induction of new seasonal staff going forward. We have also continued to run trans awareness workshops run by Mind Out, a local LBGTQ mental health charity. So

21

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

far 77 staff have attended. We have also run a number of menopause awareness workshops with to date 40 staff having attended and more planned. In relation to management training we have embarked on a development programme with our Directors and Senior Management Team using an organisational psychologist to help us look at our management behaviours, effectiveness and awareness. The programme will run into the middle of 2024 and will help shape the management culture throughout the organisation. In addition we have continued to run further supervisor training workshops for our middle managers.

Statement of compliance with s172(1) Companies Act 2006

The Board of Trustees consider that they have acted in the way they consider, in good faith, would be most likely to promote the success of the charitable company for the benefit of the company as a whole and in doing so have had regard to the following matters set out in s172(1)(a-f) in Companies Act 2006:

22

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

day-to-day practice.

Statement of Trustees’ Responsibilities

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

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees confirm that:

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

23

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

Auditors

Crowe U.K. LLP has indicated its willingness to be reappointed as statutory auditors and a resolution to re-appoint them will be proposed at the annual general meeting.

The Report of the Trustees, which includes the Strategic Report, was approved by the Board on 26 June 2024 and signed on their behalf by:

Lord Davies of Abersoch Chairman

24

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

The Trustees of the Charitable Company are also its Directors for the purpose of Company law. Throughout this report they are collectively referred to as Trustees.

Lord Davies of Abersoch CBE (Chair) Jolyon Barker John Botts CBE Sarah Hopwood Alina Kessel Franck Petitgas (retired 31 December 2023) Victoria Robey CBE Christopher Walter Helen Ward

Gus Christie, Executive Chairman, attends Board meetings in the capacity of a non-voting advisory trustee.

Audit and Finance Committee

Jolyon Barker (Chair) John Botts CBE Sarah Hopwood Michael Lynch Christopher Walter

Nominations Committee

Lord Davies of Abersoch CBE (Chair) Jolyon Barker Helen Ward

Remuneration Committee

Alina Kessel (Chair) Jolyon Barker John Botts CBE Christopher Walter

Development Committee

Helen Ward (Chair) Lord Davies of Abersoch CBE John Botts CBE Franck Petitgas (retired 31 December 2023)

Commercial Committee

Christopher Walter (Chair) John Botts CBE Lord Davies of Abersoch CBE Alina Kessel Helen Ward

Page 25

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

LEGAL AND ADMINISTRATIVE INFORMATION

Directors Group

Gus Christie – Executive Chairman Stephen Langridge – Artistic Director Richard Davidson-Houston – Managing Director Veronica Brooks – Director of Organisational Development (to 16 February 2023) Eric Gautron – Technical Director (to 05 October 2023) Helen McCarthy – Director of Development Donna Marsh – Operations Director Steven Naylor – Director of Artistic Administration Tyler Stoops - Director of Audience Development (to 19 July 2024) Laura Jukes - Interim Director of Audience Development (from 31 May 2024) Lisa Wong – Finance Director

Registered Office and Principal Office

Glyndebourne Lewes East Sussex BN8 5UU

Company Secretary

Lisa Wong

Professional Advisers

Statutory Crowe U.K. LLP Auditors Chartered Accountants 55 Ludgate Hill London EC4M 7JW Bankers Lloyds TSB plc 25 Gresham Street London EC2V 7HN Investment Capital Group Managers 1 Paddington Square London W2 1DL Rothschild Wealth Management UK Ltd New Court St Swithin’s Lane London EC4N 8AL Solicitors Covington & Burling LLP 22 Bishopsgate London EC2N 4BQ

26

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

INDEPENDENT AUDITOR’S REPORT

Opinion

We have audited the financial statements of Glyndebourne Productions Limited (‘the charitable company’) and its subsidiary (‘the group’) for the year ended 31 December 2023 which comprise of the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 financial statements section of our report. We are independent of the charitable company and the group 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 trustee's 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 the charitable company's or the group’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.

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 trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the 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.

27

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

INDEPENDENT AUDITOR’S REPORT

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in 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 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 our audit

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 23, the trustees (who are also the directors of the 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

28

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

INDEPENDENT AUDITOR’S REPORT

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations, are set out below.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members including internal specialists. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR) and Health and Safety legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of membership and ticket income, fundraising income and grant income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, internal audit and the Audit, Finance & Compliance Committee about their own identification and assessment of the risks of irregularities, sample testing on

29

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

INDEPENDENT AUDITOR’S REPORT

the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, reviewing of internal audit reports and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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. 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.

Naziar Hashemi Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor

London

Date: 5 July 2024

30

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE STATEMENT)

FOR THE YEAR ENDED 31ST DECEMBER 2023

----- Start of picture text -----
Unrestricted Restricted Endowment Total
Note Funds Funds Funds 2023 2022
£'000 £'000 £'000 £'000 £'000
Income from:
Donations, legacies and grants 7,047 2,769 0 9,816 11,214
Charitable Activities:-
- Operation of Festival, Autumn programme
Learning & Engagement, and Media Development 22,272 0 0 22,272 20,678
Other trading activities
- Commercial trading operations 1,352 0 0 1,352 1,092
Investment income 246 66 55 367 173
Other income 0 0 0 0 0
Total income before Theatre Tax Relief 4 30,917 2,835 55 33,807 33,157
Theatre Tax Relief 7 3,095 0 0 3,095 3,005
Total income 34,012 2,835 55 36,902 36,162
Expenditure on:
Costs of raising funds:-
- Fundraising costs 885 0 0 885 782
- Investment management fees 165 29 4 198 194
- Commercial trading operations 737 0 0 737 851
Charitable activities:-
- Operation of Festival, Autumn programme
Learning & Engagement, and Media Development 28,406 3,009 0 31,415 30,166
Total expenditure 5 30,193 3,038 4 33,235 31,993
3,819 -203 51 3,667 4,169
Net gains on investments 10 1,310 321 8 1,639 -1,501
Net income 5,129 118 59 5,306 2,668
Transfers between funds 16 0 65 -65 0 0
Net income/(expenditure) after transfers 5,129 183 -6 5,306 2,668
Other recognised gains and losses
Actuarial gain on the defined
benefit pension scheme 17 - - - 0 0
Net movement in funds 5,129 183 -6 5,306 2,668
Reconciliation of funds
Fund balances at 1st January 69,044 9,776 1,024 79,844 77,176
Fund Balances at 31st December 74,173 9,959 1,018 85,150 79,844
----- End of picture text -----

The detailed 2022 comparative statement of financial activities is reported in note 3.

The notes form part of these financial statements

Page: 31

GLYNDEBOURNE PRODUCTIONS LIMITED

(LIMITED BY GUARANTEE)

BALANCE SHEETS AS AT 31ST DECEMBER 2023

COMPANY NUMBER 00358266

----- Start of picture text -----
2023 2022 2023 2022
Note Group Group Charity Charity
£'000 £'000 £'000 £'000
Fixed Assets:
Tangible assets 9 37,771 35,079 37,719 35,075
Investments 10 42,692 41,245 42,692 41,245
Total Fixed Assets 80,463 76,324 80,411 76,320
Current Assets:
Stocks 11 73 40 0 0
Debtors 12 4,611 4,740 2,077 2,104
Cash at bank and in hand 6,837 9,278 6,022 8,809
Total current assets 11,521 14,058 8,099 10,913
Liabilities:
Creditors: Amounts falling
due within one year 13 -6,592 -7,738 -6,510 -7,647
Net current assets/(liabilities) 4,929 6,320 1,590 3,266
Total assets less current liabilities 85,392 82,644 82,002 79,586
Creditors: Amounts falling
due after more than one year 14 -242 -2,800 -242 -2,800
Net assets excluding pension
scheme liability 85,150 79,844 81,758 76,786
Defined benefit pension
scheme liability 18 0 0 0 0
Total net assets 85,150 79,844 81,758 76,786
Funds:
Endowment funds 17 1,018 1,024 1,018 1,024
Restricted funds 17 9,959 9,776 9,959 9,776
Unrestricted funds 17 74,173 69,044 70,781 65,986
Total funds 85,150 79,844 81,758 76,786
-1 0
----- End of picture text -----

The net income for the financial year for the parent charity was £4,824k (2022: £1,319k)

The financial statements were approved on behalf of the Board of Directors on 26 June 2024.

Lord Davies of Abersoch – Director

The notes form part of these financial statements

Page: 32

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2023

----- Start of picture text -----
2023 2022
£'000 £'000 £'000
Net cash provided by operating activities 1,927 1,567
Taxation received 3,051 1,158
4,978 2,726
Cash flows from investing activities
Purchase of tangible fixed assets -4,285 -3,231
Proceeds from disposal of tangible assets 1 0
Purchase of fixed asset investments 0 -13,021
Proceeds from disposal of fixed asset investments 0 12,765
Interest received 246 62
Dividends 121 111
Net cash from investing activities -3,917 -3,313
Cash flows from financing activities
Bank borrowing acquired 0 0
Repayments of loan capital -3,500 -1,000
Net cash from financing activities -3,500 -1,000
Net increase/(decrease) in cash and cash equivalents -2,439 -1,587
Cash and cash equivalents at the beginning of the year 9,277 10,865
Cash and cash equivalents at the end of the year 6,838 9,277
0
Reconciliation of net movement in funds to net cash flow from operation activities
2023 2022
£'000 £'000
Net movement in funds for the reporting period (as per the Statement of Financial
5,306 2,668
Activities)
Adjusted for:
Theatre Tax Credits -3,095 -3,023
Losses/(gains) on investments -1,639 1,501
Interest received -246 -62
Dividends received -121 -111
Depreciation and amortisation charges 1,593 1,406
Investment fees charged to fund 194 190
(Profit)/Loss on disposal of fixed assets -2 111
Pension adjustment 0 0
Decrease/(Increase) in stock -33 210
Decrease/(Increase) in debtors 172 -419
Increase/(Decrease)/Increase in creditors -205 -903
Net cash provided by operating activities 1,927 1,567
Cash and cash equivalents consists of:
Cash at bank and in hand 6,837 9,278
Cash held by stockbrokers 1 -1
6,838 9,277
----- End of picture text -----

The notes form part of these financial statements

Page: 33

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

1 CHARITY INFORMATION

Glyndebourne Productions Limited is a company limited by Guarantee (registered number 00358266), which is a public benefit entity and registered as a Charity in England and Wales (charity number 243877) and domiciled in the UK. The address of the registered office is Glyndebourne, Lewes, East Sussex, BN8 5UU.

2 ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are summarised below.

a. Basis of accounting

The financial statements have been prepared in accordance with the Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Glyndebourne Productions Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note. The principal accounting policies, as set out below, have all been applied consistently throughout the year and the preceding year.

b. Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future periods.

In the view of the Trustees the most significant accounting judgements and key sources of estimation uncertainty that affect items in the financial statements are those pertaining to the defined benefit pension scheme. The Trustees seek the input and advice of qualified professionals as to the appropriate actuarial assumptions to be used in calculating the pension cost and review these on an ongoing basis. The only other significant estimations are those linked to the allocation of support costs. Allocations of this nature inherently require estimation. Note 5 provides more information on the allocation methodology.

c. Group financial statements

The financial statements consolidate the results of the Charity and its wholly owned subsidiary, Glyndebourne Enterprises Limited, on a line by line basis. A separate Statement of Financial Activities for the Charity itself is not presented as permitted by the exemption under section 408 of the Companies Act 2006. The Charity has also taken advantage of the exemptions under FRS 102 from the requirements to present a Charity only cash flow statement and certain disclosures about the Charity’s financial instruments.

Page: 34

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

d. Preparation of the accounts on a going concern basis

The Board of Trustees has reviewed the financial position of the Group and the Charitable Company and believes there are sufficient resources to manage any operational or financial risks. Having considered financial forecasts for 2023-25, the Trustees have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Therefore the Board continues to adopt the going concern basis in preparing the annual financial statements.

e. Incoming resources

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

Income is deferred to future accounting periods where the conditions for recognising the income have not been met. Deferred income includes box office receipts and membership subscriptions in respect of the following year’s Festival.

Box office income consists of ticket sales and is recognised on the night of the performance.

Income from fundraising, donations and grants, including capital and government grants, is included in incoming resources when the charity has entitlement to the funds, any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. Where the donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred and not included in incoming resources until the pre-conditions for use have been met. Similarly, where donors specify that the funds must be used in future accounting periods, the income is deferred until those periods.

For legacies, entitlement is the earlier of the estate accounts being approved or cash received.

Media development income is recognised when receivable and co-production income is recognised in the year the production is staged.

f. 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.

Page: 35

GLYNDEBOURNE PRODUCTIONS LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

g. Fund accounting

The charity maintains various funds in accordance with the Charities SORP (FRS 102). These funds, which require separate disclosure, are as follows:-

Unrestricted Funds - These are the general funds of the charity and are expendable at the discretion of the Trustees in the furtherance of the charitable objectives. The main sources of general funds are from ticket sales, unrestricted fundraising, sundry sales and income from the investment of general funds. The main applications of general funds are the production of opera for the Festival and Autumn programme and the overhead costs associated with these.

Designated Funds - These are funds set aside by the Trustees out of unrestricted general funds for specific future purposes or projects.

Restricted Funds - These are funds which are subject to specific objects declared by the donor or which are raised by appeal for a specific purpose. These funds are expendable by the Trustees in furtherance of the specific object for which they were given unless the donor later agrees that they can be applied for a general purpose. Due to the nature of these funds they are accounted for separately from the general funds of the charity.

Endowment Funds – These are funds to be held permanently, or for a pre-agreed period of time, although their constituent assets may change from time to time, and they are also subject to specific restrictions imposed by the donor on their use.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

h. Expenditure and irrecoverable VAT

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. Certain expenditure is directly attributable to specific activities and has been included in those cost categories. The main categories of expenditure comprise:

Support costs are allocated to the above categories based on the proportion of staff involved in each activity and the space used and irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Production costs are written off in the year in which they are incurred except where they relate to productions to be performed in future years. These are deferred to the extent that the Trustees consider they are recoverable in subsequent accounting years.

Page: 36

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

i. Termination benefits

Termination benefits are employee benefits provided in exchange for the termination of an employee's employment. The liability and expense for termination benefits is recognised at the point when the offer of those benefits can no longer be withdrawn.

j. Foreign currencies

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date. The resulting exchange gains and losses are taken to the Statement of Financial Activities.

k. Theatre Tax Relief

Glyndebourne Productions Limited and Glyndebourne Enterprises Limited have entered legal agreements in respect of each production to be performed from 2015 whereby Glyndebourne Productions Limited commissions Glyndebourne Enterprises Limited to produce the operas and Glyndebourne Enterprises Limited in turn has contracted Glyndebourne Productions Limited to provide appropriate resources and skills to enter into the relevant third party contracts.

The income and expenditure resulting from these contracts will be recognised on the first night of each production. All costs relating to operas to be performed in future accounting periods have been included within prepayments.

Theatre Tax Relief is recognised at the amount expected to be recovered based on qualifying expenditure incurred and the rates of relief that have been enacted at the balance sheet date.

l. Tangible Fixed Assets

Individual fixed assets costing £1,000 or more are capitalised. Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than paintings, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight line basis over its expected useful economic life, as follows:

Freehold property 2% per annum Opera House complex, comprising: - Leasehold buildings over the period of the original lease to 2050 - Wind Turbine 10% per annum - Plant, machinery, fixtures and fittings between 5% and 20% per annum

Plant and Equipment 20% per annum

Paintings are not depreciated but held at historic cost and assessed for impairment annually.

Assets under the course of construction are not depreciated until they become available for productive use.

m. Stock

Stock is included at the lower of cost and net realisable value. Cost is determined on a first-in, first-out basis.

Page: 37

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

n. Financial Instruments

Glyndebourne Productions Limited 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 amortised cost. Financial assets held at amortised cost comprise cash and bank in hand, trade debtors and other debtors. Financial liabilities held at amortised cost comprise trade creditors, other creditors, loans payable and accruals. Loan interest payments covered by UK Government are recognised as finance costs with equal and corresponding amounts recorded as government grants.

Investments are held at fair value at the balance sheet date, with gains and losses being recognised within income and expenditure. Investments in subsidiaries are held at cost less impairment.

o. Contribution to pension fund

The Company participates in a Mastertrust scheme with the People’s Pension in accordance with meeting auto enrolment responsibilities.

No contributions have been made to the Christie Pension & Life Assurance Scheme since the closure of the scheme to future accrual as at 31 December 2022. Contributions to the People’s Pension are charged to the Statement of Financial Activities as they become payable. The assets of the Christie Pension & Life Assurance Scheme are held separately from those of the charitable company and its subsidiary.

The actuarial loss on the defined benefit section for the year is disclosed under other recognised gains and losses in the Statement of Financial Activities. The current service costs and financial charge are included within the costs of operations. These movements are analysed in detail in note 18.

The pension surplus/liability forms part of the unrestricted funds.

p. Operating leases

Rentals under operating leases are charged on a straight-line basis over the term of the lease.

Page: 38

GLYNDEBOURNE PRODUCTIONS LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

3 DETAILED COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Income from:
Donations, legacies and grants
Charitable Activities:-
- Operation of Festival, Tour, Learning &
Engagement, and Media Development
Other trading activities
- Commercial trading operations
Investment income
Other income
Total income before Theatre Tax
4
Theatre Tax Relief
7
Total income
Expenditure on:
Costs of raising funds:-
- Fundraising costs
- Investment management fees
- Commercial trading operations
Charitable activities:-
- Operation of Festival, Tour, Learning &
Engagement and Media Development
Total expenditure
5
Net gains on investments
10
Net income
Transfers between funds
16
Net income/(expenditure) after transfers
Other recognised gains and losses
Actuarial gain on the defined
benefit pension scheme
17
Net movement in funds
Reconciliation of funds
Fund balances at 1st January
Fund Balances at 31st December		 Unrestricted
Funds
£'000
7,058
20,678
1,092
62
0
28,890
3,005
31,895
782
161
851
25,332
27,126
4,769
-1,405
3,364
8
3,372
-
3,372
65,672
69,044		 Restricted
Funds
£'000
4,156
0
0
57
0
4,213
0
4,213
0
29
0
4,834
4,863
-650
-26
-676
66
-610
-
-610
10,386
9,776		 Endowment
Funds
£'000
0
0
0
54
0
54
0
54
0
4
0
0
4
-50
-70
-20
-74
-94
-
-94
1,118
1,024		 Total
2022
£'000
11,214
20,678
1,092
173
0
33,157
3,005
36,162
782
194
851
30,166
31,993
4,169
-1,501
2,668
0
2,668
0
2,668
77,176
79,844

Page: 39

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

4 INCOME

Income from donations, legacies and grants
Legacies
Donations
Memberships
Government grants
Arts Council England grant
Income from charitable activities
Box Office
Programme book
Catering
Media Development
Other Sundry Income
Income from trading activities
Archive
Wind Turbine
Production sale and hire
Retail and Art
Commercial props-making
Other income
Total income
Income from investments*
Interest income
Dividend income		 Unrestricted
Funds
£'000
558
3,197
3,292
0
0
7,047
17,789
151
3,800
71
461
22,272
2
381
276
661
32
1,352
246
0
246
0
30,917		 Restricted
Funds
£'000
11
1,958
0
0
800
2,769
0
0
0
0
0
0
0
0
0
0
0
0
0
66
66
0
2,835		 Endowment
Funds
£'000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
55
55
0
55		 2023
Total
£'000
569
5,155
3,292
0
800
9,816
17,789
151
3,800
71
461
22,272
2
381
276
661
32
1,352
246
121
367
0
33,807		 2022
Total
£'000
536
5,615
3,384
3
1,676
11,214
17,048
106
3,084
40
400
20,678
2
211
199
633
47
1,092
62
111
173
0
33,157

Page: 40

GLYNDEBOURNE PRODUCTIONS LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

----- Start of picture text -----
5 EXPENDITURE
2023 2022
Charitable activities Total Total
Operation of Festival, Autumn programme, Learning £'000 £'000
& Engagement and Media Development:-
Artistic costs 8,678 9,692
Technical and production 7,281 6,809
Touring expenses 0 100
Programme books 102 101
Learning & Engagement 454 464
Depreciation and amortisation 1,592 1,406
(Profit)/Loss on disposal of fixed assets -2 111
VAT annual adjustments 150 -406
Marketing, press and content 631 683
Front of House 1,021 980
Transport and car park 275 245
Box office 619 513
Media Development 269 858
Catering 3,320 2,671
Support costs 7,025 5,938
31,415 30,166
Cost of raising funds
Fundraising costs:-
Glyndebourne Festival 728 648
Glyndebourne Autumn programme 3 4
Support costs 154 130
885 782
Investment management fees 198 194
Commercial trading operations:-
Wind Turbine 46 36
Production sale and hire 29 21
Retail and Art 630 676
Commercial props-making 15 22
General administration 17 96
737 851
Total expenditure 33,235 31,993
----- End of picture text -----

Page: 41

GLYNDEBOURNE PRODUCTIONS LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

5 EXPENDITURE (Continued)

Allocation of Support Costs

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Charitable|Cost of|2023|2022| |activities|raising funds|Total|Total| |£'000|£'000|£'000|£'000| |Administration salaries and related costs|3,309|0|73|0|3,382|2,995| |Glyndebourne House and Gardens|470|0|10|0|480|434| |Insurance|461|0|10|0|471|298| |Building and services|1,199|0|26|0|1,225|977| |Professional fees|248|0|5|0|253|239| |Governance costs|71|0|2|0|73|79| |Information technology|724|0|16|0|740|715| |Other overheads|543|0|12|0|555|331| |7,025|154|7,179|6,068|

----- End of picture text -----

The support costs are apportioned according to the proportion of staff generating funds and the percentage of square footage used for fundraising.

6 NET INCOME

Net income is stated after charging:

----- Start of picture text -----
|||| |---|---|---| |2023|2022| |Administration expenses including:|£'000|£'000| |Depreciation|1,593|1,406| |Operating leases - land and buildings|0|4| |Auditor's remuneration| |- audit fees|39|37| |- tax compliance fees|11|10| |- tax advice|11|1|

----- End of picture text -----

7 TAXATION

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Theatre Tax credits arising from core expenditure on productions have been accounted for in line with the provisions of the Finance Act 2014. The amounts receivable are set out below.

----- Start of picture text -----
|||| |---|---|---| |2023|2022| |£'000|£'000| |UK corporation tax credits receivable:| |Provision for Theatre Tax Relief in respect of current year productions|3,048|3,005| |Adjustment in respect of previous periods|46|0| |3,095|3,005|

----- End of picture text -----

Page: 42

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

8 STAFF COSTS AND REMUNERATION OF KEY MANAGEMENT PERSONNEL

Wages and salaries
Social security costs
Other pension costs
The average weekly number of persons employed by the
group during the year was:
Learning and Engagement
Fundraising
Marketing and Communications
Artistic Programme
Technical and Production
Front of House Services
Other Support Staff
Shop		 2023
£'000
11,232
967
281
12,480
2023
7
8
15
61
116
63
65
7
343		 2022
£'000
10,160
915
252
11,327
2022
8
8
16
56
106
55
57
9
315

This figure includes part time staff rather than full time equivalent, and chorus and performers who are on the payroll, amounting to 42 in 2023 (2022: 36).

The number of employees receiving remuneration in excess of £60,000 p.a. was as follows:-

2023 2022
£60,001 - £70,000 3 3
£70,001 - £80,000 2 1
£80,001 - £90,000 3
£90,001 - £100,000 2
£100,001 - £110,000 1
£110,001 - £120,000 3
£120,001 - £130,000 3 1
£130,001 - £140,000 1
£150,001 - £160,000 1
£160,001 - £170,000 2
£210,001 - £220,000 1

The pension costs in respect of these employees amounted to £122,842 (2022: £68,759).

The key management personnel of the company comprise the Executive Chairman, the Managing Director, the Artistic Director, the Director of Artistic Administration, the Technical Director, the Director of Development, the Director of Audience Development and Media, the Finance Director, the Director of Customer Experience, and the Director of Organisational Development. The total employee benefits of the key management personnel, including pension contributions and employer's National Insurance contributions, for the reporting period were £1,346,723 (2022: £1,297,219).

Redundancy, termination and ex-gratia payments amounted to £75,800 (2022: £14,795) during the year, with £nil (2022: £nil) outstanding as at the year end.

Page: 43

GLYNDEBOURNE PRODUCTIONS LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

9 TANGIBLE FIXED ASSETS – GROUP

Freehold
Property
COST
£'000
At 1st January 2023
2,904
Additions
0
Disposals
0
Transfers
0
At 31st December 2023
2,904
DEPRECIATION
At 1st January 2023
923
Disposals
0
Charge for the year
58
At 31st December 2023
981
NET BOOK VALUE
At 31st December 2023
1,923
At 31st December 2022
1,981
TANGIBLE FIXED ASSETS – CHARITY
Freehold
Property
COST
£'000
At 1st January 2023
2,904
Additions
0
Disposals
0
Transfers
0
At 31st December 2023
2,904
DEPRECIATION
At 1st January 2023
923
Disposals
0
Charge for the year
58
At 31st December 2023
981
NET BOOK VALUE
At 31st December 2023
1,923
At 31st December 2022
1,981		 Opera
House
Complex
£'000
58,780
2,355
0
1,698
62,833
27,761
0
1,347
29,108
33,725
31,019
Opera
House
Complex
£'000
58,780
2,355
0
1,698
62,833
27,761
0
1,347
29,108
33,725
31,018		 Plant and
Equipment
£'000
3,474
226
0
145
3,845
2,648
0
188
2,836
1,009
826
Plant and
Equipment
£'000
3,439
177
0
145
3,761
2,616
0
188
2,804
957
823		 Assets in
the course of
construction
£'000
1,253
1,704
0
-1,843
1,114
0
0
0
0
1,114
1,253
Assets in
the course of
construction
£'000
1,253
1,704
0
-1,843
1,114
0
0
0
0
1,114
1,253		 Total
£'000
66,411
4,285
0
0
70,696
31,332
0
1,593
32,925
37,771
35,079
Total
£'000
66,376
4,236
0
0
70,612
31,300
0
1,593
32,893
37,719
35,075

The Charity has been granted a lease over the Opera House and surrounding land at a peppercorn rent expiring in 2075.

Page: 44

GLYNDEBOURNE PRODUCTIONS LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

INVESTMENTS
Market value at start of year
Additions at cost
Proceeds from disposal
Investment manager fees charged to fund		 2023
2022
£'000
£'000
41,246
42,681
0
13,021
0
-12,765
-194
-190
Group		 2023
£'000
41,246
0
0
-194
Charity		 2022
£'000
42,681
13,021
-12,765
-190
Gains on revaluation of
investments		 41,052
42,747
1,639
-1,501		 41,052
1,639		 42,747
-1,501
Market value at end of year
Cash held by stockbrokers		 42,691
41,246
1
-1		 42,691
1		 41,246
-1
42,692
41,245		 42,692 41,245
Historical cost of investments 38,078
38,076		 38,078 38,076
Investment in subsidiary -
-		 £100 £100
Quoted on recognised Stock Exchanges:
UK
Overseas
Investments
Investments
£'000
£'000
Debt Instruments
392
13,193
Equities
1,574
24,206
Alternative Markets
1,456
0
Cash
1
1,870
2023		 UK
Total
Investments
£'000
£'000
13,585
279
25,780
2,711
1,456
1,240
1,871
-1		 Overseas
Investments
£'000
11,367
22,793
0
2,856
2022		 Total
£'000
11,646
25,504
1,240
2,855
3,423
39,269		 42,692
4,229		 37,016 41,245
2023
2022
£'000
£'000
Turnover
16,755
16,979
Cost of sales and administration expenses
-16,464
-16,994
Interest receivable and similar income
0
0
Donation to Glyndebourne Productions Limited
-3,051
-1,641
Theatre tax relief
3,095
3,005
The wholly owned trading subsidiary Glyndebourne Enterprises Limited (company reg no: 03937344) is registered within the
UK at the same registered address as GPL and donates its profits to the Charity under gift aid. A summary of the trading results
is shown below:-
Net retained (loss)/profit 335 1,349
The assets and liabilities of the subsidiary were:
Assets
Creditors: amounts falling due within the year		 4,138
-587		 3,615
-400
Creditors: amounts falling due after one year 3,551
-158		 3,216
-158
3,393 3,058
Aggregate share capital and reserves 3,393 3,058

10 INVESTMENTS

Page: 45

GLYNDEBOURNE PRODUCTIONS LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

11
STOCKS
Goods for resale
12
DEBTORS		 2023
2022
£'000
£'000
73
40
GROUP
Trade debtors
Allowance for doubtful debts
Amounts owed by subsidiary
undertaking
Theatre Tax Relief
Other debtors and prepayments		 2023
2022
£'000
£'000
733
1,229
0
0
733
1,229
0
0
3,048
3,005
830
506
4,611
4,740
GROUP		 2023
2022
£'000
£'000
583
1,131
0
0
583
1,131
664
467
0
0
830
506
2,077
2,104
CHARITY

Included in the above are the following amounts falling due after more than one year:-

Amounts owed by subsidiary
undertaking		 2023
2022
£'000
£'000
0
0
GROUP		 2023
2022
£'000
£'000
158
158
CHARITY

Interest is charged on the unsecured loan to the trading subsidiary at 1% above bank base rate. There are no fixed terms for repayment of the loan which arose from the initial financing of the subsidiary’s stock and fixed assets.

13 CREDITORS: Amounts falling due within one year

Trade creditors
Tax and social security costs
VAT
Other creditors
Loan
Accruals
Deferred income		 2023
2022
£'000
£'000
858
934
239
257
424
411
1,043
1,109
0
1,000
651
631
3,377
3,396
6,592
7,738
GROUP		 2023
2022
£'000
£'000
780
858
235
242
424
411
1,043
1,109
0
1,000
651
631
3,377
3,396
6,510
7,647
CHARITY

Page: 46

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

Deferred Income

Glyndebourne Festival Society fees
Sponsorship of productions
Catering licensing agreement
Other donations
Advertising and other income
CREDITORS: Amounts falling due after more
Loan
Deferred income
Catering licensing agreement
LOAN
Capital repayments falling due in:
Less than 1 year
1 - 2 years
2 - 5 years
Over 5 years		 £'000
2,305
414
58
493
126
3,396
than one year
At 1st
January 2023		 £'000
£'000
-2,305
2,108
-414
635
-58
0
-493
503
-126
73
-3,396
3,319

2023
2022
£'000
£'000
0
2,500
242
300
242
2,800
£'000
£'000
300
-58
2023
2022
£'000
£'000
0
1,000
0
1,000
0
1,500
0
0
0
3,500
Released to
incoming
resources
Deferred in
year
GROUP
Released to
creditors due
within one
year
At 1st
January
2023
GROUP		 £'000
£'000
0
2,108
0
635
58
58
0
503
0
73
58
3,377
2023
2022
£'000
£'000
0
2,500
242
300
242
2,800
£'000
£'000
0
242
2023
2022
£'000
£'000
0
1,000
0
1,000
0
1,500
0
0
0
3,500
From
creditors due
after one year
At 31st
December
2023
CHARITY
Deferred in
year
At 31st
December
2023
CHARITY

14 CREDITORS: Amounts falling due after more than one year

15 LOAN

The Charity's Coronavirus Business Interruption Loan Scheme (CBILS) term loan facility with Lloyds Bank plc was repaid in full during 2023.

16 SHARE CAPITAL

The company is limited by guarantee, having no share capital, members having a liability not exceeding £1 each.

Page: 47

GLYNDEBOURNE PRODUCTIONS LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

17 STATEMENT OF FUNDS

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Total|Total|Realised and|At 31st| |At 1st January|incoming|resources|unrealised|December| |2023|resources|expended|Transfers|gains|2023| |Notes|£'000|£'000|£'000|£'000|£'000|£'000| |Endowment Funds| |Permanent Endowment| |- Josephine Barlow Memorial Fund|(a)|50|0|0|0|-|50| |Expendable Endowments| |- Dr G Theano|(b)|20|0|0|-10|0|10| |- Wood Peters Fund|(c)|954|55|-4|-55|8|958| |Total Endowment Funds|1,024|55|-4|-65|8|1,018| |Restricted Funds| |Glyndebourne Festival Opera|0|25|-866|841|0|0| |Glyndebourne Autumn programme|(d)|0|1,003|-1,395|392|0|0| |Learning & Engagement|0|105|-454|423|0|74| |Media Development|0|0|-172|172|0|0| |New Generation Programme|(e)|6,035|1,529|-29|-1,296|260|6,499| |Isabel Leete Legacy Fund|(f)|244|0|0|-227|0|17| |Arthur Wise Legacy Fund|(g)|301|0|0|-174|0|127| |Garden Fund|(h)|0|21|-21|0|0|0| |Benches|0|14|-14|0|0|0| |Donald Anderson Award|(i)|0|8|-8|0|0|0| |COVID-19 Fund|(j)|0|25|-25|0|0|0| |Gillian Fane Aspiring Artists Fund|(k)|3,194|66|-15|-66|61|3,240| |Croquet Pavilion|(l)|2|0|0|0|0|2| |Lighting department|(m)|0|8|-8|0|0|0| |Archive digitisation project|(n)|0|31|-31|0|0|0| |Total Restricted Funds|9,776|2,835|-3,038|65|321|9,959| |Unrestricted Funds| |Designated funds|(o)| |Growth Fund|750|0|-85|0|0|665| |Capital investment reserve|11,408|0|0|3,095|0|14,503| |Backstage automation|0|0|-657|657|0|0| |Freelancer fund|488|0|-10|0|0|478| |Carbon emissions offset|10|0|-10|20|0|20| |Tangible fixed assets|0|0|0|37,771|0|37,771| |Non Designated funds| |General reserve|56,388|34,012|-29,433|-41,542|1,310|20,736| |Total Unrestricted Funds|69,044|34,012|-30,193|0|1,310|74,173| |Total Funds|79,844|36,902|-33,235|0|1,639|85,150| |0|0|0|0|0|

----- End of picture text -----

Endowment Funds

(a) Josephine Barlow Memorial Fund

A legacy of £50,000 was received during 2012, the income on which is to be used in support of the Music Preparation Scheme and the Garden Fund. The capital is to be made available for general use after twenty years. The Fund is represented by a separate treasury deposit within the GPL bank account. During the year interest of £1,050 (2022: £25) was earned on the deposit account which was shared equally between the Music Preparation Scheme and the Garden Fund.

(b) Dr G Theano

An expendable endowment was received during 2017 to be used in support of the biennial Opera Cup. The Fund is represented by a separate treasury deposit. Following the decision to not run the Opera Cup in 2022, the funder generously agreed that £20,000 could be drawn down to support a debut artist in the 2022 revivial of Marriage of Figaro , and a further £10,225 to support the Talent Development concert in Autumn 2023.

(c) Wood Peters fund

A legacy was received in 2001 in the sum of £1,000,000 with a further £18,516 received in February 2003. These funds have been separately invested in two portfolios managed by Rothschild and Capital Group in order to maximise income to be used to support the Glyndebourne Autumn Season, meeting the costs of understudies.

Page: 48

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

17 STATEMENT OF FUNDS (Continued)

Restricted Funds

Incoming resources in respect of the Festival, Autumn programme, Learning and Engagement, Media Development and the New Generation Programme comprise net gains on investments held within restricted portfolios, sponsorship, grants and donations from third parties, given towards specific areas of activity undertaken during the year.

Transfers

Net transfers during the year comprise transfers from the restricted NGP, Gillian Fane Aspiring Artists, Leete legacy, and Wise legacy funds; and the Wood Peters and Theano endowment funds to the core strands of GPL amounting to £1,828k (2022: £2,279k), reflecting use of these restricted fund to support a number of projects including ticket subsidies for U30s and the Jerwood Chorus Development Scheme. Within designated funds, £3,095k (2022: £2,252k) has been added to the capital investment reserve in recognition of upcoming major capital asset overhauls and replacements needed. The Annual Fund donations received in 2023, amounting to £657k (2022: £642k), have been transferred into the designated fund for the backstage automation project, reflecting the Trustees' commitment to underwrite the fundraising campaign for this project. A designation of £37.8m has also been made in 2023 to reflect the Tangible Fixed Assets fund (see (o) above).

Analysis of Group net assets between funds:

Tangible fixed assets
Investments
Cash at bank
Other net current liabilities
Creditors due after one year
Net assets		 Unrestricted
£'000
37,771
32,180
4,914
-450
-242
74,173		 Restricted
£'000
0
9,554
1,852
-1,447
0
9,959		 Endowment
£'000
0
958
71
-11
0
1,018		 Total
£'000
37,771
42,692
6,837
-1,908
-242
85,150

Page: 49

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

17 STATEMENT OF FUNDS (Continued)

PRIOR YEAR STATEMENT OF FUNDS

Notes
£'000
£'000
Endowment Funds
Permanent Endowment
- Josephine Barlow Memorial Fund
(a)
50
0
Expendable Endowments
- Dr G Theono
(b)
40
0
- Woods/Peters Fund
(c)
1,028
54
Total Endowment Funds
1,118
54
Restricted Funds
Glyndebourne Festival Opera
0
25
Glyndebourne Tour
(d)
0
1,705
Learning & Engagement
0
160
Media Development
0
0
New Generation Programme
(e)
6,996
1,535
Isabel Leete Legacy Fund
(f)
256
0
Arthur Wise Legacy Fund
(g)
301
0
Backstage automation
(h)
0
500
Garden Fund
(i)
0
18
Benches
0
19
Donald Anderson Award
(j)
8
0
COVID-19 Fund
(k)
0
23
Gillian Fane Aspiring Artists Fund
(kk)
2,823
228
Croquet Pavilion
(l)
2
0
Total Restricted Funds
10,386
4,213
Unrestricted Funds
Designated funds
(m)
Growth Fund
0
0
Capital investment reserve
9,153
0
Backstage automation
515
0
Freelancer fund
500
0
Carbon emissions offset
0
0
Non Designated funds
General reserve
55,504
31,895
Total Unrestricted Funds
65,672
31,895
Total Funds
77,176
36,162
Analysis of Group net assets between funds:
Tangible fixed assets
Investments
Cash at bank
Other net current liabilities
Creditors due after one year
Net assets
At 1st
January 2022
Total
incoming
resources		 £'000
0
0
-4
-4
-869
-2,127
-452
-818
-29
0
0
-500
-18
-19
0
-23
-8
0
-4,863
0
0
-1,157
-12
0
-25,957
-27,126
-31,993
Unrestricted
£'000
35,079
31,013
6,648
-896
-2,800
69,044
Total
resources
expended		 £'000
0
-20
-54
-74
844
422
292
818
-2,259
-12
0
0
0
0
-8
0
-31
0
66
750
2,255
642
0
10
-3,650
7
-1
Restricted
£'000
0
9,277
2,561
-2,062
0
9,776
Transfers		 £'000
-
0
-70
-70
0
0
0
0
-208
0
0
0
0
0
0
0
182
0
-26
0
0
0
0
0
-1,405
-1,405
-1,501
Endowment
£'000
0
955
69
0
0
1,024
Realised and
unrealised
gains		 £'000
50
20
954
1,024
0
0
0
0
6,035
244
301
0
0
0
0
0
3,194
2
9,776
750
11,408
0
488
10
56,388
69,044
79,844
Total
£'000
35,079
41,245
9,278
-2,958
-2,800
79,844
At 31st
December
2022

Page: 50

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

18 PENSION SCHEMES

Glyndebourne Productions Limited is one of several employers participating in the Christie Pension and Life Assurance Scheme. With effect from 05 December 2008, the Christie Pension and Life Assurance Scheme was sectionalised, thus restricting the Charity’s liability to that only in respect of Glyndebourne group employees, past and present. The assets of this scheme are held in separate trustee-administered funds. The scheme now comprises only a defined benefit pension scheme, which was closed to new entrants from 01 January 2001 and further closed to future accrual from 31 December 2022. The Scheme carried out a buy-in transaction with Just Group plc covering all Scheme liabilities as of 04 August 2023.

The assets of the defined contribution section of the Christie Pension and Life Assurance Scheme, for employees commencing employment after 01 January 2001 to 31 January 2014, were transferred in bulk to the People's Pension with effect from 28 August 2020 and this section of the scheme was wound up with effect on 20 April 2022.

On 31 January 2014 a defined contribution stakeholder scheme was introduced, open to all employees and since 01 February 2014 the Company has participated in a Mastertrust scheme with the People’s Pension in accordance with meeting auto enrolment responsibilities.

The FRS102 assessment of the scheme as at 31 December 2023 showed the market value of the Charity’s share of the scheme’s assets at £21,923,000 (2022: £24,892,000), representing 155% (2022: 183%) of its liabilities. The surplus has not been recognised in accordance with the principles of FRS102. Total employer contributions to the scheme during the year amounted to £7,000 (2022: £84,000). The present value of the defined benefit obligation, the related current service cost and past service cost, were measured using the projected unit credit method.

(a) Defined benefit scheme

The main assumptions used for the purposes of FRS102 are:

2023 2022 2021
Discount rate 4.45% 4.75% 1.80%
Inflation assumptions (RPI) 3.20% 3.25% 3.50%
Inflation assumptions (CPI) 2.70% 2.75% 3.00%
Salary – increases n/a n/a 4.00%
Pension increases in deferment 2.70% 2.75% 3.00%
Rates of increase to pension in payment:
LPI (max 5%) based on CPI 2.65% 2.70% 2.95%
LPI (max 2.5%) based on CPI 2.25% 2.00% 2.10%
LPI (max 3%) based on CPI 2.00% 2.25% 2.40%
Mortality:
The average life expectancy in years of a pensioner retiring at age 65
on the balance sheet date is as follows:
Male 86.40 86.90 86.90
Female 88.90 89.30 89.30
The average life expectancy in years of a pensioner retiring at age
65, twenty years after the balance sheet date is as follows:
Male 87.60 88.20 88.20
Female 90.30 90.70 90.70

Page: 51

GLYNDEBOURNE PRODUCTIONS LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

18 PENSION SCHEME (Continued)

The fair value of the plans assets were:

The fair value of the plans assets were:
Equities
18.7%
Debt
9%
Hedge funds
5%
Annuity policies
64.6%
Cash
2.9%
Total Market Value of Assets		 At 31st
December
2023
£'000
4,100
2,017
1,008
14,162
636
21,923		 At 31st
December
2022
£'000
15,657
6,646
871
0
1,718
24,892

The pension scheme has not invested in any of Glyndebourne Productions Limited’s own financial instruments, nor in properties or other assets owned by Glyndebourne Productions Limited. The assets are all quoted in an active market.

Net defined benefit asset/(liability)
Fair value of scheme assets
Present value of defined benefit obligation
Asset not recognised
Defined benefit asset/(liability) recognised in balance sheet
Total expense/(credit) recognised in income and expenditure
Current service cost
Administration costs
Past service costs including curtailments
Net interest on the net defined benefit liability
Total income and expenditure charge/(credit)
Total amount taken to other comprehensive income
Actual return on scheme assets – gains
Less: amounts included in net interest on the net
defined benefit asset/(liability )
Remeasurement gains and (losses)
- Return on scheme assets excluding interest income
- Actuarial gains and (losses)
Asset not recognised
Remeasurement gain/(loss)
recognised in other comprehensive income		 2023
£'000
21,923
-14,143
-7,780
0
2023
£'000
0
322
0
-529
-207
2023
£'000
-1,993
-1,159
-3,152
-578
-7,780
-11,510		 2022
£'000
24,892
-13,596
-11,296
0
2022
£'000
114
105
-208
-108
-97
2022
£'000
-1,009
-475
-1,484
6,568
-11,296
-6,212

Page: 52

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

18 PENSION SCHEME (Continued)

Changes in the present value of the defined benefit obligation

Present value of defined benefit obligation
at beginning of year
Benefits paid
Current service cost
Administration costs
Interest cost
Remeasurement (gains) and losses
- actuarial (gains) and losses
Employee contributions
Past service costs including curtailments
Present value of defined benefit obligation
at end of year
Changes in the fair value of scheme assets
Fair view of Scheme assets at beginning of the year
Interest income
Remeasurement gains and (losses)
- Return on scheme assets excluding interest income
Contribution by employer
Employee contributions
Benefits paid including expenses
Fair value of the Scheme assets at end of the year		 2023
£'000
13,596
-985
0
322
630
578
2
0
14,143
2023
£'000
24,892
1,159
-3,152
7
2
-985
21,923		 2022
£'000
20,878
-1,122
114
105
367
-6,568
30
-208
13,596
2022
£'000
26,909
475
-1,484
84
30
-1,122
24,892

(b) Defined contribution schemes

The amount recognised as an expense for the defined contribution scheme was £488,000 (2022: £349,000).

19 RELATED PARTY TRANSACTIONS

The Trustees are satisfied that all of the following related party transactions are allowed under the constitution of the charity.

(a) Glyndebourne Opera House

The Charity occupies Glyndebourne Opera House under a lease signed in 1992 from the Trustees of the Glyndebourne 1990 Temporary Charitable Trust, a private trust whose beneficiaries are the Christie family and the Charity. The lease provides for a peppercorn rent and will expire in 2075.

(b) Glyndebourne Cottages

Page: 53

GLYNDEBOURNE PRODUCTIONS LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022

19 RELATED PARTY TRANSACTIONS (Continued)

(c) Glyndebourne Mansion House and Gardens

The Mansion House at Glyndebourne is the residence of Gus Christie and his family who make certain areas of the house available for use by staff and artists engaged by the Charity and for the entertainment of donors. The Charity meets the costs incurred by the Christie family in making the Mansion House available for these purposes in accordance with an agreement approved by the Charity Commission. Under the terms of the agreement the Charity made contributions of £126,000 (2022: £108,596) during the year.

Furthermore, the Charity is responsible for the maintenance and upkeep of the gardens at Glyndebourne. Gus Christie bore costs amounting to £5,674 (2022: £5,404) in respect of the running of the gardens.

(d) Payments to/from trustees and connected parties

None of the trustees received any remuneration, or claimed any expenses, in connection with their role as a trustee of GPL.

The Christie family incurred expenses amounting to £1,380 (2022: £554) which have been recharged to the family.

Gus Christie, Executive Chairman and a non-voting advisory trustee, received total remuneration, including pension contributions, of £128,007 (2022: £117,144) during the year under the terms of his contract of employment with Glyndebourne. Gus Christie's wife, Danielle de Niese, received total remuneration, including pensions, of £31,900 (2022: £nil) for her role as Ambassador for the Charity.

Seats were made available during the the course of the Festival and Autumn programme, to Gus Christie and other members of the executive management team, which were predominantly used for GPL business entertaining purposes. The number of seats used across the performances for executive management team use and associated value amounted to 1,163 and £205k respectively (2022: 1,468 and £283k). Given these were primarily used for business entertaining purposes, it is not considered that this was to the financial detriment of the Charity.

(e) Christie Management Limited

Christie Management Limited is controlled by the Christie family. No amounts were paid by the charity to Christie Management Limited in 2023 or 2022.

(f) Donations from trustees

Donations totalling £45,700 were received from trustees during the course of 2023 (2022: £2,940).

(g) Transactions with GEL

The Charity has one active wholly owned subsidiary, GEL, which is responsible for income generating activities which are incidental to GPL's charitable purposes. These comprise merchandising, the sale and hire of Glyndebourne productions to other international opera houses, the operation of Glyndebourne's wind turbine and producing all of the Festival, Autumn and youth/community productions each year on behalf of GPL. During the year Gus Christie, John Botts CBE, Lord Davies of Abersoch, Alina Kessel and Christopher Walter, who are key management personnel for the Charity, were directors of the company. GEL gifted £3,051,416 to the Charity during 2023 (see also note 10) (2022: gifted £1,640,694 (including profits of 2021)). At the year end the company owed GPL £664,259 (2022: £466,724).

Page: 54

GLYNDEBOURNE PRODUCTIONS LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

20 FINANCIAL COMMITMENTS

Capital commitments are as follows:

----- Start of picture text -----
|||||| |---|---|---|---|---| |GROUP|CHARITY| |2023|2022|2023|2022| |£'000|£'000|£'000|£'000| |Expenditure contracted but not| |provided for in the financial statements|530|2,146|530|2,146|

----- End of picture text -----

Total future minimum lease payments under non-cancellable operating leases are as follows:

----- Start of picture text -----
|||||| |---|---|---|---|---| |GROUP|CHARITY| |2023|2022|2023|2022| |£'000|£'000|£'000|£'000| |Due within one year|0|4|0|4| |Due after one year|0|5|0|5|

----- End of picture text -----

21 FINANCIAL INSTRUMENTS

At the balance sheet date the consolidated group held financial assets at amortised cost comprising cash and short term deposits, trade debtors, other debtors and accrued income of £7,570k (2022: £10,515k) and financial liabilities at amortised cost, comprising trade creditors, other creditors and accruals of £2,552k (2022: £2,674k).

Total income received in respect of financial assets held at amortised cost totalled £245,628 (2022: £62,252).

The group held assets at fair value through income and expenditure of £42.7m (2022: £41.2m). Movements in the year through the statement of financial activities comprised gains of £1,638,970 (2022: losses of £1,500,711) and income from investment portfolio of £120,880 (2022: £110,992).

Page: 55