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2022-03-31-accounts

The Havering Theatre Trust Limited (Trading as Queen’s Theatre Hornchurch)

Annual Report and Financial Statements

31 March 2022

Company Limited by Guarantee Registration Number 00524845 (England and Wales) Charity registration number 248680

Contents

Reports

Reports
Reference and administrative information 1
Trustees’ report 2
Statement of Trustees responsibilities 20
Independent auditor’s report on the
financial statements 21
Financial statements
Statement of financial activities
incorporating income and expenditure
account 26
Balance sheet 27
Statement of cash flows 29
Principal accounting policies 30
Notes to the financial statements 35

The Havering Theatre Trust Limited

Reference and administrative information

Trustees Julie Parker
Sara Thompson
Timothy Walford-Fitzgerald
Paul McGeary
David Shearing
Amanda Barker
Christine Smith
Dominic Hedges
George Morgan (resigned 30 September 2021)
Neha Issar-Brown
Sonja Lahiff
Andrea Cunningham
Melvin Wallace
Registered address Queens Theatre
Billet Lane
Hornchurch
Essex
RM11 1QT
Company registration number 00524845 (England and Wales)
Charity registration number 248680
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers National Westminster Bank plc
South Street
Romford
Essex
RM1 1RD

The Havering Theatre Trust Limited 1

Trustees’ report Year to 31 March 2022

The trustees present their report along with the financial statements of the charity for the year ended 31 March 2022. The financial statements have been prepared in accordance with the accounting policies set out on pages 30 to 34 and comply with the Charity’s Trust Deed of 1953, the Companies Act 2006, the Charities Act 2011 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland(the FRS 102 Charities SORP).

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Havering Theatre Trust is a registered charity limited by guarantee incorporated on 19 October 1953.

Trustees are appointed by the Board. The constitution provides for between six and twenty Trustees, each Member having liability of not exceeding £1.

Changes during the year

London Borough of Havering nominations

Up to three Trustees are direct nominations made annually by the London Borough of Havering. Cllrs Paul McGeary, Melvin Wallace and Christine Smith were appointed for a further year in May 2021.

Notes about terms of service for Trustees

Trustees not nominated by the London Borough of Havering are appointed for a maximum of two three-year periods. Due to ongoing recruitment to replace the former Chair and Deputy Chair Sara Thompson and David Shearing have agreed to continue as interim cover. In September 2021 George Morgan stepped down as Trustee due to other commitments.

Senior Management

Douglas Rintoul Artistic Director – Joint Chief Executive Mathew Russell Executive Director – Joint Chief Executive

After six very successful years Douglas Rintoul is leaving the post of Artistic Director in May 2022 to take up the new leadership role at New Wolsey Theatre Ipswich. QTH has announced a new creative leadership team for 2022/23 to work with an array of talent as an innovative opportunity to experiment with different forms of what creative leadership might mean to Queen’s Theatre Hornchurch. Maisey Bawden and Danielle Kassarate are founders of Mawa Theatre, the UK’s first all black all Female Shakespeare Company and will be working together part time as Associate Directors (Talent Development). Graeae, the acclaimed and award winning theatre company championing the best in Deaf and disabled talent will take on the role of Creative Associate. Their team, of associates will support leadership in innovation helping the venue discover and work with more Deaf and disabled artists. Tim Jackson, director and choreographer will direct the regional premiere of Kinky Boots. Caroline Leslie who directed The Kitchen Sink will direct Sleeping Beauty.

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Trustees’ report Year to 31 March 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Senior Management (continued)

Stef O’Driscoll will be working with Vicki O’Donoghue on developing the world premiere of Vicki’s new play about the Canvey Island floods of 1953 to be staged in Spring 2023.

Governance

The Trustees meet as the Board no less than five times per year to consider, and if appropriate to approve, artistic, financial, and administrative reports, and to consider and agree strategy and areas of activity for the Trust.

The Board met regularly throughout the year with additional meetings to cover the complexity of Covid-19.

The Trustees have established a Finance and General Purposes Sub-committee to undertake detailed consideration of the Trust’s finances and operations as appropriate and a Fundraising Committee. The Board delegates to a Finance and General Purposes Subcommittee the detailed scrutiny of reports and budgets. The Finance and General Purposes Subcommittee makes recommendations to the Board based on this scrutiny. The membership of the Finance and General Purposes Subcommittee in this period was as follows:

Julie Parker – Chair

Tim Walford-Fitzgerald

Cllr Melvin Wallace

Daniel Gearing

David Shearing

Mark Wright

Frances Whitehead

Fundraising Committee

To support the Main Board and Executive team in the development and oversight of Queen’s Theatre Hornchurch’s Fundraising Strategy and objectives. The membership of the Fundraising Subcommittee in this period was as follows:

Sonja Latiff – Chair

Sara Thompson

Cllr Melvin Wallace

Natalie Chan

Christine Smith

The Havering Theatre Trust Limited 3

Trustees’ report Year to 31 March 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Governance (continued)

Fundraising Committee (continued)

During the year a further 2 Sub-committees were set up in addition to the Finance and General Purposes Sub-committee and the Fundraising Committee.

Environmental Responsibility Committee

To promote and deliver the need for environmental responsibly in QTH’s work, in the communities it works with, partners and audiences. The membership of the Environmental Responsibility Subcommittee in this period was as follows:

David Shearing – Chair

Sara Thompson

Dominic Hedges

Cllr Paul McGeary

Daniel Jones

Paul Burgess

Inclusivity and Relevance Committee

To shape and influence the development and delivery of QTH’s inclusivity and relevance strategy. The membership of the Inclusivity and Relevance Subcommittee in this period was as follows:

Neha Brown – Chair

Julie Parker

Andrea Cunningham

Amanda Smethurst

Trustees are recruited with reference to analyses of:

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Trustees’ report Year to 31 March 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Governance (continued)

Inclusivity and Relevance Committee (continued)

Executive pay at the Theatre aims to:

The Board of Trustees is responsible for the setting of Executive Pay following periodic review. Pay for senior staff reflects the market for comparable jobs in comparable organisations, the level of knowledge, skills and experience required and the responsibilities and accountabilities associated with each role and the performance of the charity.

Funding context

London Borough of Havering remains one of the Trust's two principal funders. Quarterly review meetings and reporting are held with the Havering Council Cabinet member responsible for Culture, with officers in attendance.

The London Borough of Havering also makes a small grant in respect of educational work, especially the youth programme QYouth.

In addition the Trust administers a grant for minor maintenance of the Queen's Theatre Hornchurch (QTH) building on behalf of the London Borough of Havering, its owner. This arrangement continues, although there has been no increase in the grant since the start of the arrangement, and it is increasingly difficult to meet the maintenance needs of the building.

Funding was received from Arts Council England, as part of the Arts Council’s National Portfolio (ACE NPO) for 2018-22, extended for 22-23 year. QTH are currently in the process of applying for ACE NPO funding for the 2023-2026 period.

Analysis of risk

Trustees consider that the principal risk to which the Trust is exposed is financial and concerning that element over which direct control cannot be exercised, namely box office income. Box office attendance in tum has a direct effect on ancillary income including bar and cafe sales, programme sales, and confectionery sales.

Trustees have established systems to control and reduce this risk as follows:

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Trustees’ report Year to 31 March 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Analysis of risk (continued)

Where appropriate (for example, where an activity is outside the competence of the present membership), Trustees will seek expert advice, either through recruitment or through the services of a professional.

OBJECTIVES AND ACTIVITIES

In accordance with the Memorandum and Articles of Association, the objects of The Havering Theatre Trust (Queen’s Theatre Hornchurch) are:

During the year, QTH started to increase work produced in accordance with Covid-19 restrictions lifting.

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Trustees’ report Year to 31 March 2022

OBJECTIVES AND ACTIVITIES (continued)

Public benefit

Queen’s Theatre Hornchurch’s vision during 2021/2022 was:

Queen’s Theatre Hornchurch’s aims during 2021/22 were to:

The theme of populism is key to the delivery of public benefit. Beneficiaries come chiefly from outer East London and Essex, and populism paired with the ideal of affordability mean that work is programmed to be accessible both in content and cost.

QTH completed QNext, a £250k Invest to Save improvements project in light of issues highlighted at the COP 26 UN Climate Change Conference. The work included solar power generation, LED lighting upgrade, insulation and reduced water use and air handling upgrade.

SUMMARY OF ACHIEVEMENTS AND PERFORMANCE

Despite being a pandemic year, for some of which QTH was closed, from April 2021 to March 2022, 64,585 tickets were sold, at a value of £1,270,754. This included free ticketing for community tours of Tales From The Thames and Essex Princess.

Despite the evident challenges with audiences slow to return to theatre going, QTH played to an average occupancy of 59%.

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Trustees’ report Year to 31 March 2022

SUMMARY OF ACHIEVEMENTS AND PERFORMANCE (continued)

In the period, QTH still produced 8 productions: 'Neville's Island', 'Tales From The Thames', 'Love Letters', 'Beginning', 'The Witchfinder's Sister', 'Aladdin', 'All My Sons' and 'The Kitchen Sink'.

QTH’s production of 'Beginning' were seen by 1,893 people on tour to Theatre Royal Bath, and 'All My Sons' by 708 people at New Wolsey Ipswich.

QTH sold 694 Under 26 tickets and secured 43 school bookings (4,375 tickets).

One of the most impressive statistics is how QTH continued to attract new bookers. Despite the strangest of times, when theatres often relied on their keenest devotees first, 45.2% of QTH audience were new bookers, a really positive reflection on the range of programming and audience development approaches QTH continue to undertake. And so vital being based in the 11th fastest changing borough in the country.

Queen’s Theatre Hornchurch productions

QTH announced plans to reopen to the public in person on 17 May 2021 as Covid-19 restrictions were lifted with a new production of Tim Firth’s hit comedy ‘Neville’s Island’ attracting significant online media coverage. Socially distanced seating was in place throughout.

’Beautifully written and at Hornchurch beautifully directed: it really works!’ London Theatre1

‘Superb. Emma Baggott’s new production might initially seem low-key but it captures the play’s qualities as a nicely balanced, slow-burning farce’ The Stage

‘wonderfully funny…snappy comic dialogue’ Daily Telegraph

The world premiere of QTH Artistic Director Douglas Rintoul’s musical ‘Love Letters’ opened to rave reviews and a nomination in the Off West End Theatre Awards (Offies) for New Musical. Featuring songs from Essex’s very best such as Alison Moyet, Billy Bragg, Blur, Jessie J, Olly Murs and many more.

‘Warm and gentle humour keeps things lively and engaging. The production pulls at the heartstrings but is never overly sentimental. An enjoyable and entertaining experience’ LondonTheatre1

‘The band’s playing is so brilliant, it’s likely many of the audience will be heading to iTunes after the show, keen to keep listening to Essex music’ Musical Theatre Review

‘Love Letters is the all-singing, all-dancing and all-Essex musical which the world didn’t even know it was missing’ Romford Recorder

‘A jukebox musical full of fast paced fun. This is a show for everybody and will have you clapping in your seats’ The Havering Daily

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Trustees’ report Year to 31 March 2022

SUMMARY OF ACHIEVEMENTS AND PERFORMANCE (continued)

Queen’s Theatre Hornchurch productions (continued)

The Autumn season saw a revival of ‘Beginning’ a National Theatre production in association with QTH by Romford born David Eldridge before embarking on a national tour.

David Eldridge says ‘ I am thrilled that the tour of the revival of Polly Findlay’s magical National Theatre production of my play Beginning will begin its journey at the Queen’s Theatre Hornchurch. It’s the theatre where I did work experience aged 18 and having a play on in RM11 feels like a homecoming of the most moving kind. I can’t wait. ’

‘It’s melancholy but with an undercurrent of hope that these two might finally find what they are looking for.’ Broadway Baby

‘There is nothing earth-shattering about their lives. Indeed, they are almost remarkable for their ordinariness. Their revelations are more of a study in the obstacles people put on the path to fulfilment and the frustrations and insecurities they suffer as a consequence.’ Broadway Baby

'There’s a level of honesty that is refreshing and also somewhat painful to watch – the truth is glorious and freeing, and yet the truth can also hurt.' LondonTheatre1

'Amanda Ryan as Laura and Simon Darwen as Danny are quite brilliant in their portrayals; their timing and movement make the whole show, a straight-through 100 minutes, go paradoxically slow and fast but never lose the atmosphere of comedy and poignancy.'The Havering Daily

‘Beginning is a tender comedy full of well-observed detail and recognisable emotional vulnerability.’ The Stage

QTH continued its Essex theme with the world premiere of Beth Underdown’s chilling and creepy tale of Essex witch hunts ‘The Witchfinder’s Sister’ part of the Essex on Stage programme. Adapted from the novel by Vickie Donoghue and directed and choreographed by Jonnie Riordan.

'An intriguing piece of theatre' London Theatre 1

‘A well produced, atmospheric staging of Beth Underdown’s 2017 novel’ Everything Theatre

‘I would certainly recommend going to see it this Halloween. There are lots of chilling moments that will leave you holding your breath’ Hornchurch Life

QTH produced ‘Aladdin’ by Andrew Pollard featuring original music and lyrics by Tom Self and directed by Douglas Rintoul. It was seen by 22,754 people and achieved the highest average ticket price for a panto and would have achieved the highest grossing panto to date if not for the cancelled performances due to Covid-19

‘If you only get the opportunity to watch one panto this year, then this is the one, a must for all’ The Havering Daily

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Trustees’ report Year to 31 March 2022

SUMMARY OF ACHIEVEMENTS AND PERFORMANCE (continued)

Queen’s Theatre Hornchurch productions (continued)

‘A funny, charming, and well produced show that captures the spirit of the season’ Everything Theatre

‘A gloriously fun atmosphere. A worthy treat for all the family’ London Theatre

‘The show was nothing short of fantastic’ Mum’s Guide to Romford

The Spring season started with Arthur Miller’s moving and powerful landmark drama ‘All My Son’s’ before transferring to New Wolsey Ipswich. David Hounslow was nominated for an Offies Award for Lead Performance in a Play and Oliver Hembrough for Supporting Performance in a Play

David Hounslow who is best known for his roles in Coronation Street and Doctors said:

“ Playing Joe is an absolute joy. He is a strong yet delusional man who is living a lie, a lie that he has convinced himself to be a truth. He is a flawed but likeable character, audiences recognise his working-class origins – the self-made man, following the Capitalist dream and prepared to make a dreadful compromise to maintain his place. It is one of the greatest plays of the 20th Century, a cracking story that rattles along devastating some of the characters along the way. I am delighted with this nomination”

Director Douglas Rintoul says:

“We are delighted that Oliver, a local artist residing in Thurrock, has been recognised for this award for his portrayal of Chris which is heart wrenching. He is our moral centrepiece in this drama which gives us insight into a family we can all still recognise over 70 years on”.

“Against our contemporary context of division, post-truth, climate change and the pandemic, this play speaks to us more than ever, asking us to look at the values and beliefs we hold about our own lives and the world around us”

‘Gathering menace’ The Stage

‘Intense and compelling performances’ London Theatre 1

‘Douglas Rintoul’s production is devastating. I was profoundly moved’ Shenton on Stage

QTH finished the year with the 10[th] Anniversary production of ‘The Kitchen Sink’ by Tom Wells, directed by Caroline Leslie. An affectionate and sweet yet often hilarious portrait of working-class family life.

‘This production impeccably blends playful comedy performances with grounded, tender moments of heartfelt connection… you will leave the theatre with a touched heart and a lot to laugh about’ The Reviews Hub

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Trustees’ report Year to 31 March 2022

SUMMARY OF ACHIEVEMENTS AND PERFORMANCE (continued)

Queen’s Theatre Hornchurch productions (continued)

‘Directed by Caroline Leslie with great attention to all the nuances in the script. Not a moment is missed. Many funny lines register with great laughs from the audience. She and her cast have created a very real sense of warmth and togetherness on Zoe Hurwitz’s wide, yet cluttered (in the best way) set’ Southend Theatre Scene

London Theatre 1

‘This accomplished cast do justice to a play that’s overflowing with laughs and bursting with heart’ Theatre Weekly

‘Comic, poignant and utterly gripping’ Evening Standard

As well as the main house produced work, QTH were very excited to be part of Creative Estuary Co-commissions – the initiative which aims to showcase 60 miles of the North Kent and South Essex region as one of the UK’s most dynamic and creative areas in the whole of the UK to co-commission a piece of work called ‘Tales From The Thames’ bringing together 3 local writers, Rebecca Brewer, Vickie Donoghue and M G Boulter. A story of 5 people living along the banks of the River Thames whose future is about to change forever. The show toured to 10 community venues across 13 mainly sold out performances in unrepresented and underserved audience locations in South Essex reaching 321 people. Screening of a free digital version to compliment the live experience was seen by 606 people. Reallocation of £15k of the budget further supported two Black Essex commissions with Mia Jerome and Anne Odeke .

Anne Odeke’s commission was based on the little-known, true story of Princess Dinubolu, Princess Essex is the funny and dynamic tale of the first black woman to ever enter a beauty pageant in the UK. Building on the success of the community tour of Tales From The Thames, Princess Essex toured to venues in Grays, Aveley, Basildon, Pitsea and West Tilbury.

Mia Jerome has developed a piece of work called Rice & Peas – a three course, three act immersive dining experience with performances taking place in April 2022 in a venue in Southend on Sea.

Guest performances

With Covid-19 Restrictions still in place at the start of the year QTH were unable to open its doors to the public until May for the first socially distanced performances in the foyer - ‘The Other Stage’ and June for main house presentations. From September with further restrictions lifted we saw the return of presented work in larger numbers with customer confidence growing. Hirers confidence is yet to return with few of the regular hirers taking up their slots leaving room for some groups new to QTH to showcase their work.

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Trustees’ report Year to 31 March 2022

SUMMARY OF ACHIEVEMENTS AND PERFORMANCE (continued)

Guest performances (continued)

There were 21,350 attendances at 58 professional presentations

Learning and participation

QYouth provides young people with a vibrant introduction to theatre craft, in a professional theatre setting.

Weekly workshops for ages 6-18 develop creativity, confidence and team-work, as well as offering valuable opportunities to perform on the Queen’s Theatre stage and elsewhere.

Younger members start their journey with the QSteps Programme our building blocks to developing performance skills. Older members graduate into our Young Company Programme, offering performance and technical opportunities for those who wish to develop further a range of theatre techniques.

Step 1 gives our youngest members a fun introduction to theatre by opening up their imagination through play, allowing them to jump into the world of acting in a friendly and supportive environment. Step 1 members will develop confidence, creativity and theatre skills, enabling them to take to the stage in a range of performance settings.

Step 2 helps further build young people’s confidence through drama games and exercises whilst taking a leap into improvisation and devised performance. Members will use drama and theatre to develop creativity, unlock potential, celebrate identity and have fun.

In Step 3, we encourage members to take ownership of their ideas and nurture their theatre knowledge. Members will tackle advanced improvisations and exciting new plays, whilst building on their performance skills and learning to perform confidently to a wider audience.

Step3 is for students in school Year 7 – Year 9

QYC is our advanced theatre programme that prepares young people for further drama school training and gives them key opportunities to audition for semi-professional or professional theatre productions. As well as giving them a solid foundation of theatre practices, members of QYC Performance will improve confidence, vocal technique and team-building skills that can be applied to any work or education setting.

QYC Performance is for Year 10 – Year 13

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Trustees’ report Year to 31 March 2022

SUMMARY OF ACHIEVEMENTS AND PERFORMANCE (continued)

Learning and participation (continued)

Our technical young company explores practical skills with hands-on technical theatre training, introducing the principles of sound, lighting, stage management, set and costume design. Members will hone skills through problem-solving activities and operating technical equipment under the expert mentorship of the professional technical team at the Queen’s Theatre.

QYC Technical is for Year 10 – Year 13

In line with government guidance workshops began to resume in April 2021.Classes took place for Baby Sensory, Music Bugs and Over 50’s Musical Workout.

Annually the National Theatre commissions ten new plays for young people to perform. Every year, 300 youth theatre companies and over 6,000 young people from every corner of the UK take part and produce a Connections play. This year the programme was adapted to be as flexible as possible, and to respond to the restrictions in place due to Covid-19. QTH were thrilled to welcome five companies over two days to present their work in front of a live, inperson audience.

The Young Changemakers group is made up of eight individuals, all from different backgrounds, all studying or working in Outer East London and Essex who are passionate about theatre and bringing young people back to it. They successfully produced Re-Emerge, a collection of new work and guest speakers to explore life in the arts post-covid.

RISKS

Principal risks and uncertainties relating to Covid-19

QTH is currently focusing on short term risk management that identifies and updates a specific set of the top five risks given the stage of the COVID-19 pandemic, at any one time, and reports on these via a Compliance and Risk report at each meeting of the Board.

The current principal risks are:

  1. Reintroduced period of closure/social distancing

  2. Slower than expected consumer demand

  3. Omicron variant of COVID-19 virus causes cancellation of performances/activity

  4. London Borough of Havering funding reduction

  5. International increase in energy costs

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Trustees’ report Year to 31 March 2022

RISKS (continued)

Principal risks and uncertainties relating to Covid-19 (continued)

In the event any of these principal risks has a significant impact, key mitigations are:

The QTH trustees met more regularly during the pandemic, sometimes monthly or weekly, since COVID-19, playing an effective role in evaluating options and mitigating risk. This enhanced governance has been supported by rigorous reforecasting and weekly cashflow reporting, with regularly updated operational plans and internal communications.

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Trustees’ report Year to 31 March 2022

RISKS (continued)

Principal risks and uncertainties relating to Covid-19 (continued)

Aside the principal risks and uncertainties relating to Covid-19 outlined above, existing principal risks are:

The Trust is insured against loss of income arising from, for example, accidental damage, equipment failure, acts of terror etc.

Threats to income

Box office and earned income

The risk here comes from a range of factors including such variables as programming choice and timing, competitive leisure-time offerings and prices, and the overall state of the national and local economy. Box office sales have a direct impact on ancillary sales and it is reasonable to consider this as a single risk.

Funding income

The Trust has a rolling single year funding arrangement with the London Borough of Havering. Funding comes in two strands:

The Trust has an ongoing funding agreement with Arts Council England. This was renewed in June 2017 for the four year period April 2018 – March 2022 but extended a further year due to the Covid-19 pandemic. The trust is currently in the process of applying for ACE NPO funding for the 2023-2026 period.

Fundraising

Fundraising generated £79k. Of this c£4k were Covid-19 donations and c£20k were from QRenew a fund set up to help with the reopening of the theatre by adding 65p fee to each ticket sold. The Theatre Club kindly donated £10k, and Queens Angels memberships generated c£12k.

As for many charities, raising voluntary funds from trusts, foundations and individuals is a vital source of income, enabling us to fulfil our charitable objectives as effectively as possible. We are very grateful for the support given by all our donors.

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Trustees’ report Year to 31 March 2022

RISKS (continued)

Threats to income (continued)

Fundraising (continued)

The theatre believes that fundraising should be an open, honest and respectful process. We aim to build and maintain solid partnerships with our supporters and donors, based on mutual understanding and shared values.

The theatre operates with one full time fundraising member of staff. The theatre does not engage in face-to-face or telephone fundraising or any further commercial agreements that might endanger our reputation.

During the year, the theatre continued to monitor its use of data. Our Privacy Policy is published on our website, and clearly states what personal data the theatre will hold in relation to supporters and audiences and how this data will be used. It sets out how individuals can raise concerns or complaints. The theatre has received no complaints about its fundraising activities during the financial year.

FINANCIAL REVIEW

In this period the Trust was in receipt of revenue funding from London Borough of Havering and Arts Council England. QTH successfully applied for DCMS Cultural Recovery Fund Round 2 and Round 3 securing £148,500 for each. Additional £12,250 CRF2 funding for Covid-19 related capital expenditure and £13,750 for funding an Associate Producer for Micro Commissions. QTH were also successful in applying for additional £100k LBH recovery Grant, £18k from Covid-19 Business Grant and £6k additional Covid-19 business grant re Omicron.

The remainder of income usually earned, principally through box office sales, but also through trading income, investment income, sponsorship and donations has increased as the theatre was able to reopen to the public in person on 17 May 2021 as Covid-19 restrictions were lifted. QTH were able to benefit from the increased Theatre Tax Credit rate for the latter two productions of the year.

QTH continued to make use of the Job Retention Scheme throughout its duration receiving over £82k in support.

RESERVES POLICY

The Trustees have considered the risks to which the company is subject, and have concluded that it is prudent to maintain an unrestricted reserve fund against those risks which cannot be mitigate through, for example, insurance policies.

The new unrestricted reserves policy is based on 8 weeks of turnover as adopted by many Arts Council England funded organisations and as such has been reset at £523k.

QTH reserves at the end of 2021/2022 were £523k.

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Trustees’ report Year to 31 March 2022

GOING CONCERN

Having reviewed the charity’s financial forecasts and expected future cash flows, the Trustees have a reasonable expectation that the charity and group have adequate resources to continue in operational existence for the foreseeable future, although this is subject to the unprecedented issues around Covid-19. Thus the going concern basis has been adopted in preparing the financial statements for the year ended 31 March 2022.

FUTURE DEVELOPMENTS

The Executive team have developed a new business plan for April 2022 – March 2023.

Vision and Aims

QTH’s vision is ‘Great homegrown theatre at the heart of a changing community’.

QTH’s aims (up until 31 March 2023) are:

QTH’s objectives for 2022/23 are themed around: Financial Sustainability, Fundraising, Programme and Audience Development, Participation, Organisation, Environmental Responsibility and Impact & Influence.

Financial Sustainability

Fundraising

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Trustees’ report Year to 31 March 2022

FUTURE DEVELOPMENTS (continued)

Vision and Aims (continued)

Programme and Audience Development

Participation

Organisation

Environmental Responsibility

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Trustees’ report Year to 31 March 2022

FUTURE DEVELOPMENTS (continued)

Vision and Aims (continued)

Environmental Responsibility (continued)

Create populist theatre exploring environmental issues that appeals to a wide audience.

Impact and Influence

Step up QTH’s Outer East London and South Essex sub regional significance

The business plan offers detail on how to achieve each aspect for 2022-23.

Theatre Tax Credit

This was the sixth year in which the Trust commissioned its wholly owned trading subsidiary Hornchurch Productions Limited to produce all of the productions led by Queen’s Theatre Hornchurch.

This has made it possible to claim Theatre Tax Credit, effectively reducing production costs across all of the Trust’s activities.

AUDITORS

As Moore Kingston Smith (MKS) had been in place for 4 years QTH felt it was good practice to open up to tender. A range of tender responses were received and after a competitive process Buzzacott LLP was appointed. Buzzacott have indicated their willingness to continue in office and in accordance with the provisions of the Companies Act it is proposed that they be appointed auditors for the ensuing year.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Approved by order of the Board of Trustees on and signed on its behalf by:

Chair

Sara Thompson

Date:

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Statement of Trustees responsibilities 31 March 2022

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

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

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

In so far as the Trustees are aware:

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Independent auditor’s report on the financial statements 31 March 2022

Independent auditor’s report to the Members of The Havering Theatre Trust Limited

Opinion

We have audited the financial statements of The Havering Theatre Trust Limited (the ‘charitable parent company’) and its subsidiary (the ‘group’) for the year ended 31 March 2022 which comprise the consolidated statement of financial activities, the group and charitable parent company balance sheets, the consolidated statement of cash flows and notes to the consolidated financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

have been prepared in accordance with the requirements of the Companies Act 2006.

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 financial statements section of our report. We are independent of 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 Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and charitable parent company’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.

The Havering Theatre Trust Limited 21

Independent auditor’s report on the financial statements 31 March 2022

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report and financial statements, 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.

In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the charitable parent company and its environment obtained in the course of the audit, we have not identified material misstatements in 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:

adequate accounting records have not been kept by the charitable parent company, or

The Havering Theatre Trust Limited 22

Independent auditor’s report on the financial statements 31 March 2022

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 20, 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 group’s and the charitable parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the charitable parent company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

Our approach was as follows:

The Havering Theatre Trust Limited 23

Independent auditor’s report on the financial statements 31 March 2022

Auditor’s responsibilities for the audit of the financial statements (continued) We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

The Havering Theatre Trust Limited 24

Independent auditor’s report on the financial statements 31 March 2022

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 for no purpose other than to draw attention of the company’s members those matters which we are required to include in an auditor’s report addressed to them. To the fullest extent permitted by law, we do no accept or assume responsibility to any party other than the charitable company and the charitable company’s members as a body, for our work, for this report, or for the opinions we have formed.

Catherine Biscoe (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 15 June 2022

The Havering Theatre Trust Limited 25

Consolidated statement of financial activities Year to 31 March 2022

Notes Unrestricted
funds
£		 Designated
funds
£		 Restricted
funds
£		 2022
Total
funds
£		 2021
Total
funds
£
Income from:
Donations
1
Charitable activities
2
Investment income
3
Other income
4
Total
Expenditure on:
Charitable activities
5
Total
Net income (expenditure)
Transfers between funds
16
Net movement in funds
Total funds brought forward
Total funds carried forward		 78,559
2,636,531
1,719
430,137		 —
—
—
—		 —
446,093
—
—		 78,559
3,082,624
1,719
430,137		 59,146
1,806,958
2,263
472,053
3,146,946 — 446,093 3,593,039 2,340,420
2,715,499 — 498,252 3,213,751 1,794,598
2,715,499 — 498,252 3,213,751 1,794,598
431,447
(149,965)
281,482		 —
149,965
149,965		 (52,159)
—
(52,159)		 379,288
—
379,288		 545,822
—
545,822
241,518 — 1,308,784 1,550,302 1,004,480
523,000 149,965 1,256,625 1,929,590 1,550,302

The consolidated statement of financial activities has been prepared on the basis that all operations are continuing operations.

The notes on pages 35 to 42 form part of these financial statements.

The Havering Theatre Trust Limited 26

Charity balance sheet 31 March 2022

----- Start of picture text -----
2022 2022 2021 2021
Notes £ £ £ £
Fixed assets
Tangible fixed assets 9 1,217,481 1,117,049
Investment 10 100 100
1,217,581 1,117,149
Current assets
Stock 11 13,393 10,337
Debtors 12 306,025 91,921
Cash at bank and in hand 1,249,457 854,934
1,568,875 957,192
Liabilities
Creditors: amounts falling due
within one year 13 (856,866) (524,039)
Net current assets 712,009 433,153
Net assets 1,929,590 1,550,302
Funds 16
Unrestricted funds
General funds 523,000 241,518
Designated funds 149,965 —
Restricted funds 1,256,625 1,308,784
Total funds 1,929,590 1,550,302
----- End of picture text -----

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime within part 15 of the Companies Act 2006.

The notes on pages 35 to 42 form part of these financial statements.

The accounts were approved by the Board for issue on and signed on its behalf by:

Chair

Company Limited by Guarantee

Registration Number: 00524845 (England and Wales)

The Havering Theatre Trust Limited 27

Consolidated balance sheet 31 March 2022

----- Start of picture text -----
2022 2022 2021 2021
Notes £ £ £ £
Fixed assets
Tangible fixed assets 9 1,217,481 1,117,049
1,217,481 1,117,049
Current assets
Stock 11 13,393 10,337
Debtors 12 306,025 91,921
Cash at bank and in hand 1,249,457 854,934
1,568,875 957,192
Liabilities
Creditors: amounts falling due
within one year 13 (856,766) (523,939)
Net current assets 712,109 433,253
Net assets 1,929,590 1,550,302
Funds 16
Unrestricted funds
General funds 523,000 241,518
Designated funds 149,965 —
Restricted funds 1,256,625 1,308,784
Total funds 1,929,590 1,550,302
----- End of picture text -----

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime within part 15 of the Companies Act 2006.

The accounts were approved by the Board for issue on and signed on its behalf by:

Chair Sara Thompson

Company Limited by Guarantee Registration Number: 00524845 (England and Wales)

The Havering Theatre Trust Limited 28

Consolidated statement of cash flows Year to 31 March 2022

Note 2022
£		 2021
£
Cash flows from operating activities
Cash generated from operations
A
Cash flows from investing activities
Purchasing of tangible fixed assets
Interest received
Net cash used in investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end ofyear		 664,968 753,948
(272,164)
1,719		 (551,550)
2,263
(270,445) (549,287)
394,523
854,934		 204,661
650,273
1,249,457 854,934

A Net income for the year

2022
£		 2021
£
Net income for the year (as per the statement of
financial activities)
Adjusted for:
Interest received
Depreciation on tangible fixed assets
(Increase) / decrease in stock
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Cash inflow from operations		 379,289
(1,719)
171,732
(3,057)
(214,104)
332,827		 545,822
(2,263)
151,279
3,530
301,900
(246,320)
664,968 753,948

No separate reconciliation of net debt has been prepared, as there is no difference between the cash and net debt of the group.

The Havering Theatre Trust Limited 29

Principal accounting policies 31 March 2022

The Havering Theatre Trust Limited is a private company limited by guarantee domiciled and incorporated in England and Wales. The registered office is Queen’s Theatre, Billet Lane, Hornchurch, Essex, RM11 1QT.

Basis of accounting

The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP), the Companies Act 2006 and Charities Act 2011.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

The Trustees confirm that the Charity meets the definition of a public entity under FRS 102.

Consolidation

The financial statements consolidate the results of the charitable company and its wholly owned trading subsidiary, Hornchurch Productions Limited, on a line-by-line basis.

A separate statement of financial activities (SOFA) is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006. The net movement in funds for the parent charity was a surplus of £379,288 (2021: £545,822).

Going concern

In response to the March 2020 public health emergency around Covid-19, QTH was required to temporarily close its doors and postpone current and forthcoming activity. Further details on how QTH intend to manage these unprecedented events and reopen again are included in the principal risks and uncertainties section of the Report of the Trustees with reference to the QTH Covid-19 Roadmap developed by QTH to exit the pandemic.

Having reviewed the charity’s financial forecasts and expected future cash flows, the Trustees have a reasonable expectation that the charity and group have adequate resources to continue in operational existence for the foreseeable future and for a period of at least 12 months from the date of signature of the audit report of these financial statements, although this is subject to the unprecedented issues around Covid-19. Thus the going concern basis has been adopted in preparing the financial statements for the year ended 31 March 2022.

The Havering Theatre Trust Limited 30

Principal accounting policies 31 March 2022

Income

Income from charitable activities is recognised in the statement of financial activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Income from donations is recognised on a receivable basis in the appropriate fund.

Income from investments comprises interest received and is recognised on a receivable basis in the appropriate fund.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

Productions

For productions occurring wholly within one financial year, box office and venue fees are recognised in that year and costs are recognised as incurred. Typically costs are incurred in advance of income being generated.

Where production set up costs have been incurred prior to the year end but the production has not yet opened, if there is significant uncertainty as to whether the production will be able to run, or where the production is expected to be loss-making, production costs are recognised as incurred.

Governance costs

Governance costs comprise all costs involving the public accountability of the Charity and its compliance and regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs.

Allocation and apportionment of costs

The allocation of support costs directly represents the cost attributable to the activity of diverse artistic entertainment at the Theatre.

The Havering Theatre Trust Limited 31

Principal accounting policies 31 March 2022

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Leasehold improvements -10% - 33% on cost Fixtures, fittings and equipment -10% - 33% on cost Computer equipment -10% - 33% on cost

Individual fixed assets costing £1,000 or more are capitalised at cost.

The land and buildings were owned by the London Borough of Havering. An annual rent of £25,000 is payable to the London Borough of Havering for the duration of the 12 year lease.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stock includes theatre props, stage scenery and costumes that are written off as part of the cost of performances. Where costs are incurred in advance of the staging of a production or exhibition they are carried forward as stock. The basis of valuation is consistent with previous years.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees.

Designated funds are unrestricted funds set aside by the Trustees for specific purposes.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

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

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company’s pension scheme are charged to the statement of financial activities in the period to which they relate.

The Havering Theatre Trust Limited 32

Principal accounting policies 31 March 2022

Financial assets and liabilities

The charitable company only has basic financial instruments.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

Debtors

Debtors are recognised at their settlement value, less any provision for non-recoverability. Prepayments are valued at the amounts prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Creditors

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Operating lease commitments

Rentals payable under operating leases are charged against expenditure as incurred over the lease term.

Critical accounting estimates and judgements

In the application of the charitable company’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 associated 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 revisions affect only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The Havering Theatre Trust Limited 33

Principal accounting policies 31 March 2022

Key sources of estimation and uncertainty

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect the current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 9 for the carrying amount of the tangible fixed assets and the tangible fixed asset policy for the useful economic lives for each class of asset.

The Havering Theatre Trust Limited 34

Notes to the Financial Statements Year to 31 March 2022

1 Donations and legacies

Unrestricted
funds
£		 Restricted
funds
£		 2022
Total
£		 2021
Total
£
Donations 78,559 — 78,559 59,146

All donations in 2021 were unrestricted.

2 Income from charitable activities

----- Start of picture text -----
Unrestricted Restricted 2022 2021
funds funds Total Total
£ £ £ £
Grants 903,919 446,093 1,350,012 1,673,932
Box office 1,299,992 — 1,299,992 36,890
Bar sales 104,207 — 104,207 2,806
Café bar sales 78,187 — 78,187 5,918
Confectionary sales 32,701 — 32,701 353
Foyer events — — — 4,617
Theatre lettings 18,681 — 18,681 7,907
Outreach 51,991 — 51,991 30,465
Production income 82,100 — 82,100 —
Commissioned services 18,200 — 18,200 15,450
Salary recharge 28,620 — 28,620 28,620
Q Next income 17,933 — 17,933 —
2,636,531 446,093 3,082,624 1,806,958
----- End of picture text -----

The 2021 comparatives include restricted grant income of £854,212. All other income in 2021 was unrestricted.

Grants received, included in the above, are as follows:

----- Start of picture text -----
2022 2021
£ £
London Borough of Havering 452,550 601,167
Arts Council England 819,129 868,287
Clarion Futures 5,333 8,333
Veolia — 50,000
City Bridge Trust — 100,000
London Community Response Fund — 15,145
Romford BID 11,000 11,000
Paul Hamlyn Foundation 20,000 20,000
The Mercury Mall 2,000 —
Circular Economy 30,000 —
GLA 10,000 —
1,350,012 1,673,932
----- End of picture text -----

The Havering Theatre Trust Limited 35

Notes to the Financial Statements Year to 31 March 2022

2 Income from charitable activities (continued)

Grant income from London Borough of Havering is broken down into unrestricted funds of £180,790 Core Grant, £24,000 Covid-19 Business Grant and £100,000 Covid-19 Recovery Grant. Restricted funds, £42,000 Maintenance £20,875 Education Grant and £84,885 Contribution to Havering Changing.

In 2021, grant income from London Borough of Havering is broken down into unrestricted funds of £180,790 Core Grant and £25,899 Covid-19 Business Grant. Restricted funds, £266,651 contribution to QNew, £31,352 Conditions Survey works, £42,000 Maintenance £20,875 Education Grant and £33,600 Contribution to Havering Changing.

Grant income from Arts Council England is broken down into unrestricted funds of £282,129 Core Grant and £297,000 Cultural Recovery Fund. Restricted funds, £240,000 Havering Changing.

In 2021, grant income from Arts Council England is broken down into unrestricted funds of £282,129 Core Grant, £65,902 Emergency Response Fund and £245,000 Cultural Recovery Fund. Restricted funds, £240,000 Havering Changing and £35,256 final contribution to Q New.

3 Investment income

----- Start of picture text -----
2022 2021
£ £
Deposit account interest 1,719 2,263
4 Other income
2022 2021
£ £
Furlough grants 82,096 407,377
TTR claims 146,672 21,142
Insurance claim income 117,587 37,417
Other miscellaneous income 34,008 6,117
VAT refund 49,774 —
430,137 472,053
----- End of picture text -----

5 Expenditure on charitable activities

Direct
costs
£		 Support
costs (see
note 6)
£		 Total
2022
£		 Direct
costs
£		 Support
costs (see
note 7)
£		 2021
Total
£
Theatre operations
Governance costs		 2,645,454
—
2,645,454		 550,868
17,429
568,297		 3,196,322
17,429
3,213,751		 1,354,525
—
1,354,525		 427,926
12,147
440,073		 1,782,451
12,147
1,794,598

The Havering Theatre Trust Limited 36

Notes to the Financial Statements Year to 31 March 2022

6 Support costs

Support costs
Finance
£		 Other
£		 Total
2022
£		 Finance
£		 Other
£		 2021
Total
£
Theatre operations
Auditor’s remuneration		 1,929
—
1,929		 548,939
17,429
566,368		 550,868
17,429
568,297		 5,319
—
5,319		 422,607
12,147
434,754		 427,926
12,147
440,073

7 Trustees’ remuneration and benefits

There was no Trustees’ remuneration or other benefits for the year ended 31 March 2022 not for the period ended 31 March 2021.

One Trustee was reimbursed expenses for the year ended 31 March 2022 of £33 (2021: £nil).

8 Staff costs

Staff costs
Wages and salaries
Social security costs
Pension cost		 2022
£		 2021
£
1,181,684
23,759
67,120
1,272,563		 939,265
59,503
15,579
1,014,347

The average monthly number of employees during the year was as follows:

2022
£		 2021
£
Employees 65 50

No employees (2021: none) received emoluments between £60,000 - £70,000.

Remuneration of the Charity’s key management personnel in the year, which includes the membership of the full senior management team (SMT), was £407,633 (2021: £382,770). The increased cost in SMT was due to 2% pay increase in 2021/22 and also because some SMT were partially furloughed during 2020/21.

The Havering Theatre Trust Limited 37

Notes to the Financial Statements Year to 31 March 2022

9 Tangible fixed assets

----- Start of picture text -----
Leasehold Computer
improvement equipment Total
Group and Charity £ £ £
Cost
At 1 April 2021 1,327,169 78,298 1,405,467
Additions 254,530 17,634 272,164
—
Disposals (315) (315)
At 31 March 2022 1,581,384 95,932 1,677,316
Depreciation
At 1 April 2021 242,604 45,814 288,418
Charge for the year 155,884 15,848 171,732
—
Disposals (315) (315)
At 31 March 2022 398,173 61,662 459,835
Net book value
At 31 March 2022 1,183,211 34,270 1,217,481
At 31 March 2021 1,084,565 32,484 1,117,049
----- End of picture text -----

10 Investments
Charity		 2022
£		 2021
£
Investment in Hornchurch Productions Limited 100 100

The trading activities of the charity are carried out through its wholly owned subsidiary company, Hornchurch Productions Limited (company number 09425608). The capital and reserves of the company at the year end was £100.

11 Stocks

Group and Charity 2022
£		 2021
£
Stocks 13,394 10,337

12 Debtors: amounts falling due within one year

----- Start of picture text -----
Charity Group
2022 2021 2022 2021
£ £ £ £
Trade debtors 11,875 5,844 11,875 5,844
Amounts due from Hornchurch Productions
Limited 146,672 23,399 — —
Prepayments and accrued income 141,925 62,400 288,597 62,400
Other debtors 5,553 278 5,553 23,677
306,025 91,921 306,025 91,921
----- End of picture text -----

The Havering Theatre Trust Limited 38

Notes to the Financial Statements Year to 31 March 2022

13 Creditors: amounts falling due within one year

----- Start of picture text -----
Charity Group
2022 2021 2022 2021
£ £ £ £
Trade creditors 264,193 44,184 264,193 44,184
Accruals and deferred income 546,710 428,056 546,710 428,056
VAT control 4,907 — 4,907 —
Tax and social security — 11,373 — 11,373
Other creditors 41,056 40,426 40,956 40,326
856,866 524,039 856,766 523,939
----- End of picture text -----

14 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease agreements under non-cancellable operating leases, which fall due as follows:

Group and Charity 2022
£		 2021
£
Due within 1 year
Due between 2 and 5 years
Due in over 5 years		 34,517
122,579
91,667
248,763		 35,393
117,540
116,667
269,600

15 Movement in funds

----- Start of picture text -----
At
At 1 April 31 March
2021 Income Expenditure Transfers 2022
£ £ £ £ £
Unrestricted funds
General fund 241,518 3,146,946 (2,715,499) (149,965) 523,000
— — —
Designated fund – Q Transform 82,253 82,253
— — —
Designated fund – Q Next 67,712 67,712
Total unrestricted funds 241,518 3,146,946 (2,715,499) — 672,965
Restricted funds
Maintenance grant — 42,000 (42,000) — —
Education grant — 20,875 (20,875) — —
— — —
Essex on stage 53,669 53,669
—
Havering changing 172,921 383,218 (305,355) 250,784
Q New —
Fixed assets 1,082,194 — (130,022) — 952,172
Total restricted funds 1,308,784 446,093 (498,252) — 1,256,625
Total funds 1,550,302 3,593,039 (3,213,751) — 1,929,590
----- End of picture text -----

The Havering Theatre Trust Limited 39

Notes to the Financial Statements Year to 31 March 2022

15 Movement in funds (continued)

----- Start of picture text -----
At
At 1 April 31 March
2020 Income Expenditure Transfers 2021
£ £ £ £ £
Unrestricted funds
General fund 200,227 1,448,791 (1,333,976) (73,524) 241,518
Total unrestricted funds 200,227 1,448,791 (1,333,976) (73,524) 241,518
Restricted funds
— — —
Maintenance grant 42,000 (42,000)
— — —
Education grant 20,875 (20,875)
— — —
London Community Response Fund 15,145 (15,145)
— — —
Conditions Survey Work 31,352 (31,352)
— —
Essex on stage 89,914 (36,245) 53,669
—
Havering changing 60,523 292,933 (180,535) 172,921
Q New (6,846) 489,324 (4,452) (478,026) —
Fixed assets 660,662 — (130,018) 551,550 1,082,194
Total restricted funds 804,253 891,629 (460,622) 7,524 1,308,784
Total funds 1,004,480 2,340,420 (1,794,598) — 1,550,302
----- End of picture text -----

Designated funds

Q Next is a fund to meet the costs of environmental responsibility related projects, reducing carbon emissions and energy costs, in future years. During the year £67,712 was transferred from the general fund to this designated fund.

Q Transform is a fund to support the cost of one off organisational capacity or development projects. During the year £82,253 was transferred from the general fund to this designated fund.

Restricted funds

Maintenance Grant is received from LBH to maintain the building and facilities.

Education Grant is received from LBH towards our Learning & Participation programme of work.

Essex on Stage is a two year project supported by the Clothworkers Foundation championing positive notions of Essex celebrating theatre made by working class people and raising aspirations from emerging artists from Essex and Outer East London.

Havering Changing is a Creative People and Places (CPP) project trailing radical new ideas to engage local people in arts and culture in the communities of Harold Hill, Romford and Orchard Village (all in the London Borough of Havering).

Q New is a £1m small scale capital project to develop and update the existing building and facilities.

The Havering Theatre Trust Limited 40

Notes to the Financial Statements Year to 31 March 2022

15 Movement in funds (continued)

London Community Response Fund was to provide a support for socially isolated and vulnerable people in Havering by was of digital activity including weekly Musical Theatre Sing-a-longs, Seated Dance sessions and Tiny Plays. The balance of the fund was spent during the year ended 31 March 2021.

Conditions Survey Works was for additional £31k building work as identified in new conditions survey post Q New with cost recovered from LBH. The balance of the fund was spent during the year ended 31 March 2021.

16 Analysis of net assets between funds

----- Start of picture text -----
Unrestricted
Restricted Designated General
funds funds funds Total
Group £ £ £ £
Fund balances at 31 March 2022
are represented by:
—
Tangible fixed assets 952,172 265,309 1,217,481
Stock — — 13,393 13,393
Debtors — — 306,025 306,025
Cash at bank 304,453 149,965 795,039 1,249,457
— —
Creditors due in one year (856,766) (856,766)
1,256,625 149,965 523,000 1,929,590
Unrestricted
Restricted Designated General
funds funds funds Total
Charity £ £ £ £
Fund balances at 31 March 2022 are
represented by:
—
Tangible fixed assets 952,172 265,309 1,217,481
Investments — — 100 100
Stock — — 13,393 13,393
Debtors — — 306,025 306,025
Cash at bank 304,453 149,965 795,039 1,249,457
— —
Creditors due in one year (856,866) (856,866)
1,256,625 149,965 523,000 1,929,590
----- End of picture text -----

The Havering Theatre Trust Limited 41

Notes to the Financial Statements Year to 31 March 2022

17 Related party disclosures

The land and buildings were owned by the London Borough of Havering. Grants of £481,170 (2021: £601,167) were received from the London Borough of Havering during the year, and rent of £25,000 (2021: £25,000) was paid to the London Borough of Havering during the year. At the year end funds of £700,444 (2021: £300,444) were held by the London Borough of Havering in pooled funds on behalf of the trust. Certain Trustees, as recorded in the Report of Trustees’ are councillors of the London Borough of Havering.

During the year Havering Theatre Trust Ltd received income of £806,041 (2021: £134,800) from Hornchurch Productions Limited and incurred costs of £952,713 (2021: £155,942). The balance outstanding at the year end of £146,672 (2021: £23,399) is disclosed within the amounts owed from group companies within Debtors on the balance sheet.

The aggregate donations received from trustees during the year was £2,100 (2021: £1,688).

18 Legal status of the trust

The trust is a Company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

19 Comparative information

Analysis of income and expenditure in the year ended 31 March 2021 between restricted and unrestricted funds:

Notes Unrestricted
funds
£		 Designated
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Income from:
Donations
1
Charitable activities
2
Investment income
3
Other income
4
Total
Expenditure on:
Charitable activities
5
Total
Net income
Transfers between funds
Net movement in funds
Total funds brought forward
Total funds carried forward		 59,146
952,746
2,263
434,636		 —
—
—
—		 —
854,212
—
37,417		 59,146
1,806,958
2,263
472,053
1,448,791 — 891,629 2,340,420
1,333,976 — 460,622 1,794,598
1,333,976 — 460,622 1,794,598
114,85
(73,524)
41,291		 —
—
—		 431,007
73,524
504,531		 545,822
—
545,822
200,227 — 804,253 1,004,480
241,518 — 1,308,784 1,550,302

The Havering Theatre Trust Limited 42