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2022-03-31-accounts

OCTAGON THEATRE TRUST LIMITED

GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR

THE YEAR ENDED MARCH 31 2022

Company number 00882226 Charity number 248833

OCTAGON THEATRE TRUST LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

INDEX
Chair’s statement 1
Administrative information 2
Trustees’ and Directors’ annual report 3 – 10
Auditors’ report 11 – 13
Group statement of financial activities 14
Charity statement of financial activities 15
Group balance sheet 16
Charity balance sheet 17
Statement of cash flows 18
Notes to the financial statements 19 – 35

OCTAGON THEATRE TRUST LIMITED CHAIR’S STATEMENT FOR THE YEAR ENDED MARCH 31 2022

When it comes to the Octagon, I can’t help but be inspired by the dedication, commitment and passion of everyone involved and reflecting on the last year, that couldn’t be more true. Having been appointed as Chair of the Board of Trustees in 2022 after being on the board for just over a year, I find it fascinating just how much amazing activity is delivered by the team, particularly considering the challenges that have been thrown at us since re-opening last summer.

Through the year I’ve laughed, shed a tear or two and connected with friends old and new thanks to the excellent performances. I’ve loved everything I’ve seen at the Octagon over the year and a couple of stand outs from me are the remarkable adaptation of ‘Kes’ which the Guardian review called “a superb poetic evocation of much-loved tale” and ‘An Adventure’, which was a travel through time, culture and love and one of our board members was cast in the production; my trustee colleagues are indeed a talented bunch!

At the end of the year we said goodbye to Claire Moreland after completing her tenure of 6-years as Chair of the Board of Trustees. Claire’s been awarded true legend status in the Octagon’s ‘Hall of Fame’ for her commitment, diligence and leadership through the development and delivery of the capital programme that gave us our fabulous new theatre. Claire was a true star and on behalf of the whole board, we thank her for the 6 years that she gifted to the Octagon.

As we moved on with our strategy and increasing the diversity of both our offer and our audiences, we’re actively engaging new people and communities to ensure that people realise that theatre is for them if they want it to be, whoever they are. We’ve nailed down our new values that will underpin how we do what we do which are: Creativity; Inclusivity; Care; Curiosity; and Integrity. Being clear on our purpose, vision and values continues to be really important in positioning the Octagon in the context of not only our place-based activities in Bolton, across Greater Manchester and beyond, but also how, when and with whom we work.

It’s been really positive to build relationships with our strategic partners at Bolton Council, Bolton University and Bolton at Home, local partners who are all investing in the work of the Octagon and critical to the increased involvement and inclusion of diverse communities in the theatre and arts in Bolton. I’m looking forward to building relationships with all the strategic partners at the Octagon in Bolton and beyond in the year ahead. The 21/22 year posed incredible financial challenges, and the ongoing investment of Arts Council England plus the Government’s Cultural Recovery Fund, along with funding from Garfield Weston and Wolfson foundations, has been crucial to our endurance and future recovery. On behalf of the trustees, my thanks to all of them and everybody who has generously supported the Octagon.

I’d like to thank the whole staff team and volunteers at the Octagon for everything that they’ve done over the year. As Chair, I’ll use Chair’s privilege to also publicly thank both Roddy in his role as Chief Executive and Lotte in her role as Artistic Director for their impeccable leadership, spectacular creativity and unfailing professionalism throughout the year. I see how they both inspire and support the team so that the Octagon continues to punch higher and their collaboration is fantastic.

As I look forward, the year ahead is already bringing new challenges. Escalating fuel costs, the cost of living on our staff and audiences and a psyche influenced by two-years of Covid measures means that there is uncertainty for people and that means uncertainty for us. As a responsible employer and theatre, we’ll continue to make the decisions that will secure the future of excellent theatre in Bolton, so come and join us and find your way to support the Octagon. We really can’t do it without you.

Thank you.

Darren Knight Chair of the Board of Trustees

1

OCTAGON THEATRE TRUST LIMITED ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED MARCH 31 2022

DIRECTORS

DIRECTORS
Name Nominee/Elected Appointed/Resigned Position Subcommittee
(see key below)
C Moreland Elected trustee Resigned 28/03/22 Chair until 28/03/22 FR, PE
D J Knight Elected trustee Chair from 28/03/22 PE
S A Young Elected trustee Vice Chair FR
S D Plant Elected trustee Chair FR FR
Dr E K Alladi Elected trustee PE
H Bowdur Elected trustee FR
Cllr M Cox BMBC nominee Resigned 27/09/21
K Devlin Elected trustee Resigned 12/07/22 PE
L A Harvey Elected trustee Chair PE PE
S Hussain Elected trustee PE
V E Jackson Elected trustee PE
T A Lewyckyj -Wood Elected trustee PE
Cllr M Murray BMBC nominee
F L Noden Elected trustee FR
C Southern Elected trustee FR
I Tabbron Elected trustee FR
Cllr H Fairclough BMBC nominee Appointed 27/09/21
COMPANY SECRETARY K B Jones
KEY STAFF
R Gauld Chief Executive
L Wakeham Artistic Director
K B Jones Head of Finance and Business
M Irving-Murphy Head of Operations and Customer Experience
C Whitwood Head of Production
C Rachwal Head of Marketing and Communications
V Brown Head of Creative Engagement (until January 2022)
D Fearnley Head of Development
I Woolrich Head of Creative Engagement (from January 2022)
REGISTERED OFFICE AND Howell Croft South
PRINCIPAL PLACE OF BUSINESS Bolton
BL1 1SB
AUDITORS HGA Accountants & Financial Consultants Ltd
t/aChittenden Horley- Chartered Accountants
The Wesley Centre
Royce Road, Hulme
Manchester M15 5BP
BANKERS Barclays Bank plc
1 Market Street
Bolton
BL1 1XA
KEY TO SUBCOMMITTEES FR – Finance and Resources Sub-committee
PE – People and Equality Sub-committee

2

OCTAGON THEATRE TRUST LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

The trustees present their annual report together with the consolidated financial statements of the charity and its subsidiaries for the year ended March 31 2022.

REPORTING FRAMEWORK

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019), referred to as the Charities SORP (FRS 102) (second edition – October 2019).

OBJECTIVES AND ACTIVITIES

Charitable objects

The objectives of the charity are:

“to promote, maintain, improve and advance education, particularly by the production of educational plays and the encouragement of the Arts, including the arts of drama, mime, dance, singing, and music”.

We achieve these objectives through the operation of the Octagon Theatre in Bolton and the creation of theatre productions for regional and national audiences, including work off-site, on tour and online; and through extensive programmes of learning and participation with, by and for our community.

Activities

The charity’s main activities are:

Organisational purpose, mission and values

Purpose

To be vital for a happier, healthier community.

Mission

We will be bold, adventurous and popular, making theatre of the highest quality. We will be a brilliant creative home for the people of Bolton and beyond. We believe that everyone has their own story to tell and we will enrich communities and change peoples’ lives through creative expression.

Values

3

OCTAGON THEATRE TRUST LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

Public benefit

In shaping the objectives and planning the activities for the year, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance on public benefit and fee charging. The charity relies on grants and the income from fees and charges to cover its operating costs. In setting the level of ticket prices, fees and other charges the trustees give consideration to the accessibility to activities for those on low income.

Contribution of volunteers

Volunteers play a vital and varied role in the life of the Trust: as trustees, providing customer care, and providing pastoral support during creative engagement activities. We are grateful to them all for their continued support and contribution.

ACHIEVEMENTS AND PERFORMANCE

We were delighted to reopen the Octagon for our first performance in May 2021, after a three year closure during which we refurbished the theatre, operated off-site and endured the worst of the pandemic. Our opening was the cumulative effort and care of countless staff, volunteers, partners and contractors over many years, and we are incredibly grateful to everybody who played a part in getting the Octagon to this point.

Whilst we opened to performances in May, we in fact first opened our doors in February as part of Bolton’s incredible vaccine drive, acting as a patient observation centre. Subsequently artists and young participants got to be the first to use our new modern and accessible facilities, before the first production, See You at the Octagon , opened on 26 May. Our opening year was carefully curated to attract previous and new audiences, to take artistic risks and to balance the financial risks that were associated with the then ongoing pandemic. During 2021-22 we produced:

We have been delighted by the critical response to our programme, with a string of positive reviews in the national press as great local endorsements of our work. 191 performances were seen by 29,415 people during the year. In addition, we staged 2 small festivals reaching 1,389 people; produced a radio drama; and produced a short film (which was screened to an estimated 100 people at the Bolton Film Festival). 4,821 people took part in our formal and informal learning sessions.

Our Creative Engagement work included our inaugural Family Festival, which was co-designed with Bolton families and provided free activities including circus workshops, storytelling, dance and UV discos! 70% of families who took part were first time visitors to the theatre. Our React project, funded by the National Lottery Community Fund until 2022, provided a breadth of activity that was also co-designed and co-created with 50s with the aim of reducing loneliness. A number of new community partnerships have been established as a result of this exciting venture. A Theatre Club, a women’s group to increase creativity, Dementia Friendly performances and Dementia Friendly coffee mornings are just some of the initiatives that have been piloted and we expect to continue to embed provision for older people in our work in the future.

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OCTAGON THEATRE TRUST LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

We continued our popular youth theatre and the Young Octagon (a performance group for aged 13-19) who worked towards a production in the National Theatre Connections Festival; and The Academy, a ten year programme to provide creative and life skills for young people came to an end with its final production, Starship Unity . This programme has benefited hundreds of young people who were at risk of social exclusion and we’re grateful to the Oglesby Charitable Trust and IGEN for their support of the programme. Testimonials from parents and carers highlight the impact of the work:

During 2021, AMION Consulting completed an Impact Study, commissioned by the trustees to understand how the Octagon makes a positive contribution to Bolton and the surrounding area. Using data from the three years prior to the closure for redevelopment, the study found that the Octagon:

The study went on to assess the benefits arising in Bolton specifically over the next 25 years as a result of the theatre’s redevelopment and estimated a net value of £110m, which compared to £90.1m pre-redevelopment, is £19.1m of additional impact in Bolton.

The trustees are pleased and proud to see such strong evidence of the Octagon’s economic and social impact, in addition to its cultural contribution. The report states that the Octagon “represents good value for money in the public sector and especially so within the arts and cultural sector”. The trustees look forward to seeing the Octagon’s impact grow in the years ahead.

Fundraising

The trustees place great importance on relationships with donors and are committed to ensuring best practice. There is an inhouse development team and no other professional fundraiser or commercial participator carried out any fundraising activities during the financial year.

5

OCTAGON THEATRE TRUST LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

FINANCIAL REVIEW

Overview

Taking into account Theatre Tax Relief generated through Octagon Theatre Productions Ltd, the Group completed its financial year with a financial surplus on unrestricted funds of £313,227 (2021 – surplus £173,971) after transfers and designations. This has been achieved largely due to the additional funding support secured to address the pandemic from the Arts Council and other funders, the ongoing costs savings arising from the restructure that took place in 20/21 and the use of the designated fund of £130,000 set aside last year to support the COVID recovery plans.

The charity had previously designated £30,000 to support the artistic programme but this was not required in the year and has been carried forward.

At the year end the Trust’s funds stood at:

Unrestricted funds:
General funds
Designated funds
Restricted funds		 £’000
909
1,066
1,975
195
2,170

Trading subsidiaries

Octagon Catering Services (OCS) was having been unable to trade in the previous year reopened the café and bars in 21/22. However, restrictions on audience sizes to combat Covid, lower than forecast actual audience sizes and the disruptions caused by the omicron variant mean that the company did not perform as well as expected. The directors continue to explore the best way of operating the business, and have sought appropriate external advice. The budgets and forecast prepared by the directors of OCS show that it is expected to recover its solvency by March 2025.

The other wholly owned trading subsidiary, Octagon Theatre Productions Ltd, was again engaged as the production vehicle for our plays, and for 21/22 has generated theatre tax credits of c£131k.

Principal funding sources

The following table summarise the major sources of funding for the Group:

2022 2021 2020 2019
£’000 £’000 £’000 £’000
Core funding 922 885 943 910
COVID related funding 276 1,350 - -
Donations & legacies 45 126 117 138
Capital grants - - 87 60
Charitable trading 637 42 522 853
Project grants 40 117 124 87
Fundraising/trading income 257 107 149 245
Interest 1 2 8 4
Other income - - - 9
2,178 2,629 1,950 2,306

Details of the material funders are shown in the notes to the financial statements.

Investment policy and review

Surplus funds are placed on deposit with our bankers. There are no fixed asset investments.

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OCTAGON THEATRE TRUST LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

Risk management

The trustees discuss and approve a risk register on an annual basis, and the Finance and Resources Sub-Committee review this on a bi-monthly basis. The greatest risks facing the charity, and the approach to their management, is summarised as follows:

Going concern

The impact of COVID 19 is set out in the risk review above and the future plans below. In light of the financial support secured and measures taken and the contingency plans in place the Trustees have concluded that the accounts are properly prepared on the going concern basis.

The Directors support the view of the directors of Octagon Catering Services Ltd that that company will recover its financial position over time.

7

OCTAGON THEATRE TRUST LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

Reserves

The Trustees established a reserves policy in 2012, as amended by subsequent decisions, to address both the short-term and long-term needs of the charity. In 2016, Trustees made a decision to increase the reserves to mitigate risks associated with the capital project and temporary closure of the theatre.

The policy required: Cash reserve 500,000 Fixed asset replacement 76,050 (balance of the original allocation of £130k) Programme support 30,000 Capital programme 3,166 (balance of the original allocation of £70k)

To which have been added additional designated funds of £21,467 for the costs of vacating the workshop, and c£935k representing the investment in fixed assets (tangible and investments).

This policy is regularly reviewed to meet the risks of the charity, including the recent capital project, the pandemic and the current economic crisis. The trustees consider it prudent to maintain free reserves of no less than £500k and have agreed that funds in excess of this level will be used towards maintaining the theatre’s output in 2023/24 and 2024/25.

At the end of the year the charity had c£1,155k in the bank account, which includes restricted grants and donations of c£195k along with designated funds.

The free reserves (unrestricted funds not invested in fixed assets or otherwise designated) were c£909k.

FUTURE PLANS

In 2022/23, the Octagon will stage one of its most ambitious programmes yet, as we seek to reengage audiences who have yet to return post-refurbishment and post-pandemic. With the resources secured through our Future Fund, the trustees have adopted a strategy of boldly investing in the programme and audiences in order to secure longer-term financial resilience, with mix of new work, popular titles and large-scale productions.

The artistic programme for 2022/23 includes:

Including a world premiere new musical with an international team, of a novel with a huge global reputation, is a bold and ambitious statement about the Octagon’s aspirations for the future. We are moving to a programming approach in 2022/23 and 2023/24 of focussing on “fewer, bigger, better” in-house productions alongside increased co-producing and programming of touring and community work.

We are also launching a far-reaching creative engagement programme called Sharing Stories: a three year plus initiative to work with families, schools, libraries and other partners to involve young people and families in creative and literacy activity in underinvested neighbourhoods in Bolton.

Whilst recognising the challenging economic circumstances that the charity faces, the trustees are also recognise the challenges facing our workforce and have committed to paying the Real Living Wage and joining the Living Wage Campaign – becoming the first theatre in the region to do so.

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OCTAGON THEATRE TRUST LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

STRUCTURE GOVERNANCE AND MANAGEMENT

Governing document

The Charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association dated June 6 1966, as amended by special resolutions dated October 7 1983, August 15 1986, September 11 1995 and November 25 2002.

Members of the company

The only members of the company are those appointed as trustees and directors. They cease to be members of the company on their resignation as trustees and directors.

Appointment of Directors and Trustees

The trustees, who are also the Directors of the Company, are appointed as follows:

Excluding the nominated directors, at each AGM, one third of the Directors retire by rotation, being the longest in office and are eligible for re-election. Trustees normally serve two terms of three years each.

Trustee recruitment, induction and training

The trustees endeavour to ensure that they have within their number the appropriate range of skills and abilities, and from time to time will seek to identify individuals, who they believe can contribute essential knowledge and experience, to recruit to the Board.

New trustees are identified through open advertisement alongside targeted recruitment. The board endeavours to ensure that the trustees collectively have a relevant range of skills and abilities, including appropriate representation of Bolton’s community and demographics.

New trustees receive induction meetings with the Chair and Chief Executive to brief them on the organisation, as well as information on their legal and fiduciary responsibilities. Outside of board meetings, all trustees are encouraged to attend performances and other events to keep informed of the Theatre’s activities. Training for trustees is provided as necessary.

Organisation

The board, which must be no less than three members nor more than twenty, administers the Charity and meets as necessary. Normally meetings are bi-monthly with an annual away-day. All trustees are expected to adhere to a Code of Conduct. Conflicts of interest must be recorded on an annual basis and declared at each meeting.

In December 2018 the board resolved to re-organise its activities into two sub-committees: a Finance and Resources SubCommittee that has responsibility for finance, funding, risk and the capital project; and a People and Equalities Sub-Committee that has responsibility for human resources, diversity and inclusion. Both of the sub-committees have delegated authority from the board within specific terms of reference.

A Chief Executive is appointed by the board, to whom the trustees have delegated authority for operational matters within the overall strategy agreed by the board.

Pay and remuneration for senior staff

The remuneration of senior staff is determined on appointment, based upon comparable benchmarks, and subsequently adjusted in line with other staff pay. The board reviews staff pay annually and it is normally increased in accordance with average earnings and inflation, if resources allow.

Related parties and co-operation with other organisations/charities

None of our trustees receive remuneration or other benefit from their work with the Trust.

The Trust has worked in partnership over many years with major funders Arts Council England, Bolton Council and the Greater Manchester Combined Authority. Both the Arts Council and Bolton Council have committed significant funds to support the redevelopment of the Theatre. Bolton Council are the landlords of the theatre.

There is a strong relationship with Bolton at Home, who contribute an annual grant to the theatre as well as jointly delivering a range of community projects. These include youth and adult drama provision, and providing free or affordable tickets to thousands of residents.

There is a long standing relationship with the University of Bolton, and the theatre provides learning and observation opportunities for students in the School of Arts, particularly on the Theatre and Performance course, from which the Trust receives a fee. In May 2021, the University undertook a two year agreement to be the theatre’s Principal Sponsor.

One of the trustees was engaged as an actor during the year and the trustees made unrestricted donations to the charity. Details are given in note 25 to the financial statements.

9

OCTAGON THEATRE TRUST LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The trustees (who are also directors of Octagon Theatre Trust 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 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 these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and 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.

STATEMENT OF DISCLOSURE TO AUDITORS

We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:

SMALL COMPANY PROVISIONS AND APPROVAL

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

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

D J Knight

D J Knight – Director

Date: 24/10/22

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INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF THE OCTAGON THEATRE TRUST LIMITED FOR THE YEAR ENDED MARCH 31 2022

Opinion

We have audited the financial statements of The Octagon Theatre Trust (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended March 31 2022 which comprise the Group and parent Charity Statements of Financial Activities, the Group, and parent Charity’s Balance Sheets, the Group and Parent Charity’s 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 group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

Other information

The trustees are responsible for the other information. 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. 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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the [strategic report and the][7] directors’ report.

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

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INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF THE OCTAGON THEATRE TRUST LIMITED FOR THE YEAR ENDED MARCH 31 2022

Responsibilities of trustees

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

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

Auditor’s responsibilities for the audit of the financial statements

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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

We assessed the susceptibility of the company’s financial statement 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:

No instances of material non-compliance were identified. However, 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 directors and other management and the inspection of regulatory and legal correspondence, if any.

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INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF THE OCTAGON THEATRE TRUST LIMITED FOR THE YEAR ENDED MARCH 31 2022

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.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and its trustees 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 and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Smith

Peter Smith BA FCA DChA– Senior Statutory Auditor

For and on behalf of: HGA Accountants & Financial Consultants Ltd t/a Chittenden Horley - Chartered Accountants and Statutory Auditors The Wesley Centre Royce Road, Hulme Manchester M15 5BP Date: 19/11/22

HGA Accountants & Financial Consultants Ltd t/a Chittenden Horley is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

13

OCTAGON THEATRE TRUST LIMITED GROUP STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED MARCH 31 2022

Notes
INCOME
Incoming resources from generated funds:
Donations
2
Charitable activities
3
Other trading activities
4
Investment income - bank interest
TOTAL INCOMING RESOURCES
EXPENDITURE
Costs of raising funds
6
Expenditure on charitable activities
7
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
BEFORE TRANSFERS
10
Transfers between funds
17
NET INCOME/(EXPENDITURE
BEFORE TAXATION
TAXATION- Theatre Tax Credit
5
NET INCOME/(EXPENDITURE)
AFTER TAXATION - NET MOVEMENT IN FUNDS
TOTAL FUNDS BROUGHT FORWARD
17
TOTAL FUNDS CARRIED FORWARD
17		 General
Designated
Funds
Funds
£
£
958,141
-
638,081
-
257,194
-
134
-
Unrestricted		 General
Designated
Funds
Funds
£
£
958,141
-
638,081
-
257,194
-
134
-
Unrestricted		 Restricted
Funds
£
284,852
39,927
-
-		 Total
Total
2022
2021
£
£
1,242,993
2,360,379
678,008
159,467
257,194
106,686
134
2,001
1,853,550 - 324,779 2,178,329
2,628,533
300,020
1,378,003		 -
228,299		 -
765,727		 300,020
112,826
2,372,029
1,545,080
1,678,023 228,299 765,727 2,672,049
1,657,906
175,527
6,992		 (228,299)
383,651		 (440,948)
(390,643)		 (493,720)
970,627
-
-
182,519
130,708		 155,352
-		 (831,591)
-		 (493,720)
970,627
130,708
3,506
313,227
580,361		 155,352
910,629		 (831,591)
1,026,700		 (363,012)
974,133
2,517,690
1,543,557
893,588 1,065,981 195,109 2,154,678
2,517,690

The notes on pages 19 to 35 form part of these financial statements.

14

OCTAGON THEATRE TRUST LIMITED CHARITY STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED MARCH 31 2022

Notes
Incoming resources from generated funds:
Donations
2
Charitable activities
3
Other trading activities
4
Investment income - bank interest
TOTAL INCOME
EXPENDITURE
Costs of raising funds
6
Expenditure on charitable activities
7
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
BEFORE TRANSFERS
Transfers between funds
17
NET MOVEMENT IN FUNDS
TOTAL FUNDS BROUGHT FORWARD
17
TOTAL FUNDS CARRIED FORWARD
17		 General
Designated
Funds
Funds
£
£
958,141
-
1,593,300
-
118,646
-
134
-
Unrestricted		 General
Designated
Funds
Funds
£
£
958,141
-
1,593,300
-
118,646
-
134
-
Unrestricted		 Restricted
Funds
£
284,852
39,927
-
-		 Total
Total
2022
2021
£
£
1,242,993
2,360,379
1,633,227
181,376
118,646
53,330
134
2,001
2,670,221 - 324,779 2,995,000
2,597,086
130,415
2,202,514		 -
228,299		 -
765,727		 130,415
112,305
3,196,540
1,563,483
2,332,929 228,299 765,727 3,326,955
1,675,788
337,292
6,992		 (228,299)
383,651		 (440,948)
(390,643)		 (331,955)
921,298
-
-
344,284
565,061		 155,352
910,629		 (831,591)
1,026,700		 (331,955)
921,298
2,502,390
1,581,092
909,345 1,065,981 195,109 2,170,435
2,502,390

The notes on pages 19 to 35 form part of these financial statements.

15

OCTAGON THEATRE TRUST LIMITED GROUP BALANCE SHEET AS AT MARCH 31 2022

Notes
FIXED ASSETS
Tangible Assets
11
CURRENT ASSETS
Stock
13
Debtors
14
Cash at Bank and in Hand
CREDITORS
Amounts falling due in one year
15
NET CURRENT ASSETS
CREDITORS
Amounts falling due in more than one year
16
NET ASSETS
FUNDS
Unrestricted charitable funds
General fund
17
Designated fund
17
Restricted charitable funds
17
Total charitable funds
Non charitable trading subsidiaries
TOTAL FUNDS		 2022
£
7,671
764,461
1,161,132		 2022
2021
2021
£
£
£
935,796
287,558
239
412,522
2,055,434
2,468,195
238,063
1,517,461
2,230,132
2,453,257
2,517,690
298,579
-
2,154,678
2,517,690
678,685
910,629
2,102,397
1,589,314
195,109
1,026,700
2,297,506
2,616,014
(142,828)
(98,324)
2,154,678
2,517,690
1,933,264
415,803
1,036,416
1,065,981

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The notes on pages 19 to 35 form part of these financial statements.

Approved by the Board of Directors and authorised for issue on: 24/10/22 And signed on their behalf by:

D J Knight

D J Knight – Director

Company registration number: 00882226

16

OCTAGON THEATRE TRUST LIMITED CHARITY BALANCE SHEET AS AT MARCH 31 2022

Notes
FIXED ASSETS
Tangible Assets
11
Investments
12
CURRENT ASSETS
Stock
13
Debtors
14
Cash at Bank and in Hand
CREDITORS
Amounts falling due in one year
15
NET CURRENT ASSETS
CREDITORS
Amounts falling due in more than one year
16
NET ASSETS
FUNDS
Unrestricted
General fund
17
Designated funds
17
Restricted
17
TOTAL FUNDS		 2022
£
-
779,305
1,154,678		 2022
2021
2021
£
£
£
934,198
286,973
1,100
1,100
935,298
288,073
-
404,865
2,045,194
2,450,059
235,742
1,533,716
2,214,317
2,469,014
2,502,390
298,579
-
2,170,435
2,502,390
565,061
910,629
1,975,326
1,475,690
195,109
1,026,700
2,170,435
2,502,390
1,933,983
400,267
909,345
1,065,981

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The notes on pages 19 to 35 form part of these financial statements.

Approved by the Board of Directors and authorised for issue on: 24/10/22 And signed on their behalf by:

D J Knight

D J Knight – Director

Company registration number: 00882226

17

OCTAGON THEATRE TRUST LIMITED GROUP AND CHARITY STATEMENT OF CASH FLOWS AS AT MARCH 31 2022

notes
Cash used in operating activities
22
Cashflows from investing activities
Interest and dividends
Purchase of tangible fixed assets
Proceeds of sale of fixed assets
Payments to acquire investments
Cash provided by/(used in) investing activities
Cashflows from financing activities
Proceeds from new borrowings
Repayment of borrowing
Cash from financing activities
Increase/(decrease) in cash & cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Cash and cash equivalents consist of:
Cash at bank and in hand
Current asset investments		 Group
2022
£
(446,196)		 Group
2021
£
873,423		 Charity
Charity
2022
2021
£
£
(443,705)
875,516
134
(746,819)
-
-		 2,001
(263,227)
-
-		 134
2,001
(745,524)
(263,227)
-
-
-
-
(746,685) (261,226) (745,390)
(261,226)
298,579
-		 -
(3,104)		 298,579
-
-
(3,104)
298,579 (3,104) 298,579
(3,104)
(894,302)
2,055,434		 609,093
1,446,341		 (890,516)
611,186
2,045,194
1,434,008
1,161,132 2,055,434 1,154,678
2,045,194
1,161,132 2,055,434 1,154,678
2,045,194
-
1,161,132 2,055,434 1,154,678
2,045,194

Movements in net debt are shown in note 23.

The notes on pages 19 to 35 form part of these financial statements.

18

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

1 ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared: under the historic cost convention; in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) effective January 1 2019 (second edition – October 2019); FRS102; and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS102.

The accounts are prepared in £ sterling, which is the functional currency.

Going Concern

The Trustees have addressed the impact of COVID 19 and the delays to the capital project in their annual report, and have concluded that there are no issues concerning the Group’s ability to continue as a going concern.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Income recognition

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The following applies to particular types of income:

Grants , whether of a capital or revenue nature, are recognised when the charity has entitlement to the funds, any performance conditions have been met and it is probable that the income will be received.

Donations from individuals and other bodies (not being of the nature of a grant) are recognised when receivable.

Earned income is measured at the fair value of the consideration received or receivable for services and goods supplied, net of discounts and VAT.

In kind support consisting of donated facilities is recognised as income when the charity has control over the facilities, the receipt of economic benefit is probable and can be measured reliably. The facilities are recognised at the value the charity would have been prepared to pay for them. A corresponding amount is included as expenditure.

Deferred income

Income is only deferred and included in creditors when:

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 the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds

including those associated with fundraising activities, managing investments and commercial trading by the subsidiary company.

Charitable activities costs of undertaking the work of the charity.

The charity is registered for VAT and is able to recover some of the input tax charged as it relates to Vatable supplies. Costs are stated net of the recoverable amount of VAT, were VAT has been charged.

Allocation of support costs

Support costs are those functions which assist the work of the charity either by supporting the delivery of charitable activities or by supporting the generation of funds. They include property costs, back office functions, staff costs, depreciation, finance costs and professional fees. The basis of allocations is set out in note 8.

19

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

1 ACCOUNTING POLICIES (continued)

Pension contributions

The charity operates a defined contribution pension scheme for its employees, agreeing the contribution rates with each individual. The contributions are paid to a third party who invests the contributions in a money purchase plan. Contributions are charged to the SoFA as they become payable.

The charity also makes contributions to the actors Equity Pension fund in respect of the relevant qualifying workers. Contributions are charged to the SoFA as they become payable

Tangible fixed assets and depreciation

Individual fixed assets costing more than £500 are capitalised at cost and are depreciated over their estimated useful lives on a straight-line basis as set out below.

Depreciation rates are as follows: Long leasehold land and buildings 5% Premises refurbishment 2% on additions pre 31/03/14, 4% on additions thereafter Fixtures, fittings & equipment* 10% and 20%, Computer equipment 25%

*assets acquired under finance lease are depreciated over the life of the leases, which equates to 5 years on current agreements.

Debtors

Trade and other debtors are recognised at the settlement amount due and prepayments are valued at the amount prepaid.

Cash at bank and in hand

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

Creditors and provisions

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

Financial instruments

The charity has only basic financial instruments which are initially recorded at cost, subsequently measured at their settlement value.

Group financial statements

The financial statements consolidate the results of the charity and its wholly owned subsidiaries, Octagon Catering services Ltd and Octagon Theatre Productions Ltd, on a line by line basis.

Capital grants

Capital grants received by the charity are accounted for as income in the period in which the charity becomes entitled to receive the income and included within restricted reserves until the conditions of the grant have been fulfilled.

Within the subsidiary companies, Capital grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Capital grants are recognised using the accrual model and the performance model. Under the accrual model, capital grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

The treatment of capital grants received by the subsidiary companies is aligned with that of the charity on consolidation and grants were received from the charity are eliminated on consolidation.

20

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

2 DONATIONS
Revenue grants:
Arts Council England
Bolton MBC
GMCA
The Oglesby Charitable Trust
COVID related funding:
ACE - CRF1
ACE - CRF2
ACE - CRF3
Esmee Fairbairn
Garfield Weston Foundation
Granada Foundation
Wolfson Foundation
The Lindbury Trust
HMRC - CJRS
Donations & legacies
General donations
In kind support
Capital project
Learning & participation
Total for group
Donation from OCS Ltd
Total for company		 Unrestricted 2022
Restricted		 Total Unrestricted 2021
Restricted		 Total
£
625,359
188,652
107,200
-		 £
-
-
-
736		 £
625,359
188,652
107,200
736		 £
625,359
145,380
107,200
-		 £
-
-
-
7,500		 £
625,359
145,380
107,200
7,500
921,211 736 921,947 877,939 7,500 885,439
-
-
-
-
-
-
-
-
3,809		 -
148,500
123,600
-
-
-
-
-		 -
148,500
123,600
-
-
-
-
-
3,809		 -
-
-
7,500
-
3,500
140,000
-
217,985		 620,232
-
-
-
320,000
-
-
40,000
-		 620,232
-
-
7,500
320,000
3,500
140,000
40,000
217,985
3,809 272,100 275,909 368,985 980,232 1,349,217
33,121
-
-
-		 -
-
12,016
-		 33,121
-
12,016
-		 95,572
9,320
-
-		 -
-
20,831
-		 95,572
9,320
20,831
-
33,121 12,016 45,137 104,892 20,831 125,723
958,141
-		 284,852
-		 1,242,993
-		 1,351,816
-		 1,008,563
-		 2,360,379
-
958,141 284,852 1,242,993 1,351,816 1,008,563 2,360,379

Allocations to designated funds are shown in note 17.

21

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

Unrestricted
£
3 INCOME FROM CHARITABLE ACTIVITIES
Group
Theatre and performance
Charity Income (as below)
613,989
Octagon Theatre Productions
825,851
Eliminated on consolidation
intercompany charges
(825,851)
613,989
Learning and Participation
Charity Income (as below)
24,092
24,092
Total per Group
638,081
Charity
Theatre and performance
Box office
536,049
Grants
-
Co-productions
56,754
Royalties receivable
3,185
Other income
12,263
Ancillary trading
5,738
613,989
Production sub contractor fees
(eliminated on consolidation)
955,219
Learning and Participation
Fees & earned income
24,092
Grants
-
24,092
Total per Charity
1,593,300
4 INCOME FROM OTHER TRADING ACTIVITIES
Sponsorship
75,099
Management charge/rent
40,000
Hire income
3,547
Per charity
118,646
Less eliminated on consolidation:
Management charge/rent to OCS Ltd
(40,000)
Add subsidiary income OCS Ltd
178,548
Per group
257,194		 Unrestricted 2022
Restricted		 Total Unrestricted 2021
Restricted		 Total
£
4,818
-
-		 £
618,807
825,851
(825,851)		 £
18,420
19,661
(19,661)		 £
-
-
-		 £
18,420
19,661
(19,661)
613,989 4,818 618,807 18,420 - 18,420
24,092 35,109 59,201 23,593 117,454 141,047
24,092 35,109 59,201 23,593 117,454 141,047
638,081 39,927 678,008 42,013 117,454 159,467
536,049
-
56,754
3,185
12,263
5,738		 -
4,818
-
-
-
-		 536,049
4,818
56,754
3,185
12,263
5,738		 6,654
-
4,000
-
7,766
-		 -
-
-
-
-
-		 6,654
-
4,000
-
7,766
-
613,989 4,818 618,807 18,420 - 18,420
955,219 - 955,219 21,909 - 21,909
24,092
-		 -
35,109		 24,092
35,109		 23,593
-		 -
117,454		 23,593
117,454
24,092 35,109 59,201 23,593 117,454 141,047
1,593,300 39,927 1,633,227 63,922 117,454 181,376
-
-
-
-
-
-		 75,099
40,000
3,547
118,646
(40,000)
178,548		 44,205
5,000
4,125
53,330
(5,000)
58,356		 -
-
-
-
-
-		 44,205
5,000
4,125
53,330
(5,000)
58,356
257,194 - 257,194 106,686 - 106,686

22

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

5 TRADING SUBSIDIARIES
Turnover
Cost of sales
Gross profit
Administration Expenses
Operating profit/loss
Other income
Net profit/loss before taxation
(Tax charge)/Theatre tax credit
Net profit after taxation
Total assets
Total liabilities (excluding capital grant)
Capital grant
Net funds		 Octagon Catering
Services Ltd
2022
2021
£
£
153,373
99
166,808
44,693		 Octagon Catering
Services Ltd
2022
2021
£
£
153,373
99
166,808
44,693		 Octagon Theatre
Productions Ltd
2022
2021
£
£
825,851
19,661
955,219
21,909
(13,435)
56,244		 (44,594)
26,552		 (129,368)
(2,248)
1,340
1,258
(69,679)
25,175		 (71,146)
58,257		 (130,708)
(3,506)
-
-
(44,504)
-		 (12,889)
-		 (130,708)
(3,506)
130,708
3,506
(44,504) (12,889) -
-
18,452
(161,280)
-		 16,471
(114,795)
-		 130,709
121,609
(129,709)
(120,609)
-
-
(142,828) (98,324) 1,000
1,000

Octagon Catering Services Ltd (OCS LTD)

The subsidiary operates the bar and catering services within the theatre. On consolidation the management charge of £40,,000 (2021 - £5,000) is eliminated. .

Octagon Theatre Productions Ltd (OTP)

OTP has been formed to undertake the production, running and closure of in house theatrical productions on behalf of the charity. It subcontracts the production work back to the charity, and is eligible to claim theatre tax relief.

OTP's income derives from charity. On consolidation income from the charity of £825,851 (2021 -19,661) is eliminated against theatre production costs and the direct costs of £955,219 (2021 - £21,909) are eliminated against production subcontractor fees in the charity.

23

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

6 COSTS OF RAISING FUNDS
Inter company provision re OCS
Support costs
Per charity
OCS
Less provision
Less management charge
Total fundraising in Group
No costs were charged to designated or
7 CHARITABLE EXPENDITURE
Theatre and performance
Learning and participation
Capital project
Charged to restricted fund
Per charity
Less eliminated on consolidation:
Grant to OCS Ltd
Charges from OTP Ltd
Per group		 Unrestricted 2022
Restricted		 Total Unrestricted 2021
Restricted		 Total
£
13,447
116,968		 £
-
-		 £
13,447
116,968		 £
65,724
46,581		 £
-
-		 £
65,724
46,581
130,415
223,052
(13,447)
(40,000)		 -
-
-
-		 130,415
223,052
(13,447)
(40,000)		 112,305
71,245
(65,724)
(5,000)		 -
-
-
-		 112,305
71,245
(65,724)
(5,000)
300,020 - 300,020 112,826 - 112,826
restricted funds in either year.
2,874,879
1,000
2,875,879
292,946
51,867
344,813
-
(24,152)
(24,152)
(737,012)
737,012
-		 1,213,136
208,118
-
(291,140)		 -
93,879
48,350
291,140		 1,213,136
301,997
48,350
-
2,430,813
-
(824,511)		 765,727
-
-		 3,196,540
-
(824,511)		 1,130,114
-
(18,403)		 433,369
-
-		 1,563,483
-
(18,403)
1,606,302 765,727 2,372,029 1,111,711 433,369 1,545,080

Charges to restricted funds in respect of grants shown in note 2 have been made. Details of the grants are shown in note 16. Depreciation of £28,069 (2021 - £37,546), loss on disposal of fixed assets £nil (2021 - £8,381),have been charged to designated funds as shown in note 16.

Expenditure in the charity is analysed as follows:
2021/22
Theatre and performance
Learning and participation
Capital project
2020/21
Theatre and performance
Learning and participation
Capital project		 Direct
costs
£
1,248,853
47,142
(24,152)		 Direct
salaries &
actors' fees
£
227,906
24,524
-		 Support
costs
Total
£
£
1,399,120
2,875,879
273,147
344,813
-
(24,152)
1,271,843 252,430 1,672,267
3,196,540
109,377
15,045
48,350		 355,986
156,279
-		 747,773
1,213,136
130,673
301,997
-
48,350
172,772 512,265 878,446
1,563,483

24

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

8 SUPPORT & GOVERNANCE COSTS

SUPPORT & GOVERNANCE COSTS
2021/22
Salaries
Marketing costs
Establishment costs
Insurance
Legal & professional
Administration costs
Finance charges
Staff training and recruitment
Loss on disposal of fixed assets
Depreciation
Allocation of marketing support costs
Allocation of governance costs
2020/21
Support costs
Support salaries costs
Marketing costs
Establishment costs
Insurance
Legal & professional
Administration costs
Finance charges
Staff training and recruitment
Loss on disposal of fixed assets
Depreciation
Allocation of marketing support costs
Allocation of governance costs		 Marketing
£
-
83,215
2,574
-
-
13,194
1,375
947
-
1,818		 Governance
£
55,257
-
10,295
-
7,239
3,299
344
237
-
-		 Costs of
raising
funds
£
110,515
-
2,574
-
-
3,299
344
237
-
-		 Theatre &
Performance
£
773,604
-
180,166
24,095
30,838
105,556
10,999
7,579
-
95,479		 Learning &
Total
participation
2022
£
£
165,772
1,105,148
-
83,215
61,771
257,380
8,032
32,127
1,623
39,700
9,896
135,244
1,031
14,093
711
9,711
-
-
15,321
112,618
103,123
(103,123)
-		 76,671
-
(76,671)		 116,968
-
-		 1,228,316
97,967
72,837		 264,157
1,789,236
5,156
-
3,834
-
- - 116,968 1,399,120 273,147
1,789,236
85,289
24,434
881
-
-
8,721
226
1,442
-
631		 24,356
-
3,523
-
5,531
2,180
56
360
-
-		 43,103
-
881
-
-
2,180
56
361
-
-		 315,123
-
101,010
15,047
61,066
69,769
1,806
11,532
-
22,671		 80,864
548,735
-
24,434
21,139
127,434
5,016
20,063
3,214
69,811
6,541
89,391
169
2,313
1,081
14,776
-
-
4,768
28,070
121,624
(121,624)
-		 36,006
-
(36,006)		 46,581
-
-		 598,024
115,543
34,206		 122,792
925,027
6,081
-
1,800
-
- - 46,581 747,773 130,673
925,027

Support costs are allocated on the following basis:

Marketing costs Support salaries

Area

basis

comment

estimate of usage net of any direct attribution estimate of time spent

Other costs: Property Irrecoverable VAT (after any direct attribution) All other costs Depreciation

Space

Head count net of any direct attribution estimate of usage/head count estimate of usage

25

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

**9 ** STAFF INFORMATION 2022 2021
£ £
**a ** Employees
Salaries and wages 1,146,400 1,003,701
Pension costs 22,369 22,655
Employer's NI contributions 81,825 76,456
1,250,594 1,102,812
Staff costs for the Trading subsidiary included above 120,501 43,629
Employees earning more than £60,000pa (excluding employer's nic and pension contributions):
number number
£60,000 - £70,000 1 1

The key management of the charity comprise the trustees and senior staff (as set out on page1) and the key management of the group are the same people plus catering manager. The trustees do not receive any remuneration for their services The total employee benefits of other key management were as follows:

Charity
Group
b Actors and stage managers
Fees
Pension contributions (Equity)		 £
£
364,190
371,802
372,569
398,280
£
£
223,138
1,818
4,348
-
227,486
1,818

c Group average staff numbers

The average number of employees, excluding the actors and stage manager referred to above, was as follows:-

Employees
NET INCOME/(EXPENDITURE) BEFORE TRANSFERS (for the Group)
This is stated after charging/(crediting):
Auditors remuneration:-
Audit fees
Accountancy fees
Finance lease charges
Depreciation of fixed assets
Trustees remuneration
Trustees expenses		 2022
Average
number
72		 2022
Average FTE
number
45		 2021
2021
Average
average FTE
number
number
52
38
72 45 52
38
£
4,100
6,568
-
98,581
-
-		 £
4,000
3,329
111
31,082
-
-

10 NET INCOME/(EXPENDITURE) BEFORE TRANSFERS (for the Group)

26

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

11 TANGIBLE FIXED ASSETS

GROUP
Cost or valuation
As at April 1 2021
Additions
Disposals
As at 31 March 2022
Depreciation
As at April 1 2021
Charge for the year
Disposals
As at 31 March 2022
Net Book Value
As at 31 March 2022
As at 31 March 2021
COMPANY
Cost or valuation
As at April 1 2021
Additions
Disposals
As at 31 March 2022
Depreciation
As at April 1 2021
Charge for the year
Disposals
As at 31 March 2022
Net Book Value
As at 31 March 2022
As at 31 March 2021		 Leasehold
Property
£
-
597,435
-		 Fixtures &
Fittings
£
877,899
147,424
(381,317)		 Computer
Equipment
Total
£
£
98,332
976,231
1,960
746,819
-
(381,317)
597,435 644,006 100,292
1,341,733
-
58,085
-		 615,809
30,453
(381,317)		 72,864
688,673
10,043
98,581
-
(381,317)
58,085 264,945 82,907
405,937
539,350 379,061 17,385
935,796
- 262,090 25,468
287,558
-
597,435
-		 876,580
146,129
(381,317)		 98,332
974,912
1,960
745,524
-
(381,317)
597,435 641,392 100,292
1,339,119
-
58,085
-		 615,075
30,171
(381,317)		 72,864
687,939
10,043
98,299
-
(381,317)
58,085 263,929 82,907
404,921
539,350 377,463 17,385
934,198
- 261,505 25,468
286,973

27

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

12 FIXED ASSET INVESTMENTS

The charity has owns 100% of the issued share capital of the following companies:

Name
Company no.
Octagon Catering Services Ltd
2095489
Octagon Theatre Productions Ltd
9260244
13 STOCKS
Stock of goods for resale
14 DEBTORS
Trade debtors
Grants and income receivable
Octagon Catering Services Ltd
Inter company provision re OCS
Octagon Theatre Productions Ltd
VAT refundable
Other debtors
Theatre Tax Credit receivable
Prepayments
15 CREDITORS falling due within one year
Trade creditors
Other taxes and social security
Accruals
Other creditors
Income and grants in advance
Investment
2022
2021
£
£
100
100
1,000
1,000
Investment
2022
2021
£
£
100
100
1,000
1,000		 Activity
Catering & bar services
Theatre productions
GROUP
COMPANY
COMPANY
2021
2022
2021
£
£
£
239
-
-		 Activity
Catering & bar services
Theatre productions
GROUP
COMPANY
COMPANY
2021
2022
2021
£
£
£
239
-
-
1,100 1,100
GROUP
2022
£
7,671
7,854
537,337
-
-
-
-
321
130,709
88,240		 19,718
328,114
-
-
-
26,699
891
3,507
33,593		 7,854
19,495
537,337
322,930
140,619
113,724
(127,171)
(113,724)
128,369
1,307
6,465
26,649
321
891
-
-
85,511
33,593
764,461 412,522 779,305
404,865
69,444
1,847
200,667
36,599
107,246		 82,012
21,141
83,226
29,016
22,668		 66,518
81,964
1,663
21,141
188,241
80,953
36,599
29,016
107,246
22,668
415,803 238,063 400,267
235,742

All income and grants in advance brought forward are released in the subsequent year.

16 CREDITORS falling due within more than one year
Bolton Council re lease premium		 298,579 - 298,579
-
298,579 - 298,579
-

The balance of the lease premium is payable in seven equal annual instalments commencing in April 2023. No interest is payable

28

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

17 STATEMENT OF FUNDS

2021/22
TTR &
Income
Expenditure
Transfers
31/03/2021
£
£
£
£
1,853,550
(1,678,023)
137,700
893,588
-
(228,299)
383,651
1,065,981		 1,959,569 195,109 2,154,678 2021
£
1,475,690
113,724
1,026,700		 2,616,114
(98,324)		 2,517,790
521,351 (390,643) 130,708
(1,906,322) (765,727) (2,672,049) 2022
£
1,975,326
127,171
195,109		 2,297,606
(142,828)		 2,154,778
1,853,550 324,779 2,178,329
b/f and c/f
31/03/2021
01/04/2021
£
580,361
910,629		 1,490,990 1,026,700 2,517,690
2020/21
TTR &
01/04/2020
Income
Expenditure
Transfers
£
£
£
£
406,390
1,501,326
(1,196,468)
(130,887)
528,508
1,190
(28,069)
409,000		 278,113 (274,607) 3,506
(1,224,537) (433,369) (1,657,906)
1,502,516 1,126,017 2,628,533
934,898 608,659 1,543,557

29

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

17 STATEMENT OF FUNDS (continued)

2021/22
TTR &
Income
Expenditure
Transfers
31/03/2021
£
£
£
£
2,670,221
(2,332,929)
6,992
909,345		 935,298
30,000
21,467
-
-
3,166
76,050		 1,065,981 1,975,326 -
-
-
-
-
120,000
-
-		 120,000 3,818
71,291		 75,109 195,109 2,170,435
745,524
-
21,467
-
(302,460)
(66,834)
(14,046)		 383,651 390,643 -
-
-
(46,142)
-
-
-
(344,501)		 (390,643) -
-		 - (390,643) -
(98,299)
-
-
(130,000)
-
-
-		 (228,299) (2,561,228) (736)
-
(310,318)
(102,358)
(123,600)
(200,000)
-
24,152		 (712,860) (1,000)
(51,867)		 (52,867) (765,727) (3,326,955)
-
-
-
-
-
-
-		 - 2,670,221 736
-
-
148,500
123,600
-
-
12,016		 284,852 4,818
35,109		 39,927 324,779 2,995,000
b/f and c/f
31/03/2021
01/04/2021
£
565,061		 288,073
30,000
-
130,000
302,460
70,000
90,096		 910,629 1,475,690 -
-
310,318
-
-
320,000
-
308,333		 938,651 -
88,049		 88,049 1,026,700 2,502,390
2020/21
TTR &
01/04/2020
Income
Expenditure
Transfers
£
£
£
£
443,925
1,469,879
(1,214,350)
(134,393)		 263,227
-
130,000
15,773
-
-		 409,000 274,607 -
-
(80,000)
-
-
-
(191,107)		 (271,107) -
(3,500)		 (3,500) (274,607) -
(28,069)
-
-
-
-
-
-		 (28,069) (1,242,419) (7,500)
(13,726)
(229,914)
-
-
-
(40,000)
(48,350)		 (339,490) -
(93,879)		 (93,879) (433,369) (1,675,788)
-
-
-
-
1,190
-
-		 1,190 1,471,069 7,500
-
620,232
-
-
320,000
40,000
20,831		 1,008,563 -
117,454		 117,454 1,126,017 2,597,086
52,915
30,000
-
-
285,497
70,000
90,096		 528,508 972,433 -
13,726
-
-
-
-
-
526,959		 540,685 -
67,974		 67,974 608,659 1,581,092
COMPANY
Unrestricted funds:
General fund
Designated funds:
Invested in fixed assets
Programme support
Workshop removal
Covid Recovery
Capital project
Capital project - reserves
Capital replacement unallocated
Total unrestricted funds
Restricted Funds:
The Oglesby Charitable Trust
University of Bolton
- writing & talent development
COVID related funding:
ACE - CRF1
ACE - CRF2
ACE - CRF3
Garfield Weston Foundation
The Lindbury Trust
Capital Project Grants & donations
Project funds
Theatre
Learning & participation
Total restricted funds
Total Funds

30

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

17 STATEMENT OF FUNDS (continued)

2021/22
TTR &
Income
Expenditure
Transfers
31/03/2021
£
£
£
£
4,818
(1,000)
-
3,818		 3,818 20,846
-
-
5,486
-
9,688
2,500
-
32,771		 71,291
- -
-
-
-
-
-
-
-		 -
(1,000) (23,095)
-
-
(1,165)
-
(2,312)
-
-
(25,295)		 (51,867)
4,818 -
-
-
-
-
12,000
2,500
-
20,609		 35,109
b/f and c/f
31/03/2021
01/04/2021
£
-		 - 43,941
-
-
6,651
-
-
-
-
37,457		 88,049
2020/21
TTR &
01/04/2020
Income
Expenditure
Transfers
£
£
£
£
-
-
-
-		 - -
-
-
-
(3,500)
-
-
-
-		 (3,500)
- (11,556)
(10,000)
-
-
-
-
-
(54,768)
(17,555)		 (93,879)
- 21,468
-
-
-
-
-
-
54,768
41,218		 117,454
- 34,029
10,000
-
6,651
3,500
-
-
-
13,794		 67,974
Analysis of restricted project grants
Theatre
LGBT Foundation
Learning and participation
IGEN Trust
Oglesby
Bolton CVS - Ambition for Aging
Bolton CVS - Health and Wellbeing
D'Oyly Carte
The Ragdoll Foundation
Provincial/Walsh Trust for Bolton
HM Government/National Lottery Community
Fund - Building Stronger Communities
National Lottery Community Fund - ReAct

31

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

17 STATEMENT OF FUNDS (continued)

Transfers 2021/22

The programme fund was re-designated in the year to support costs in 22/23.

A new designated fund has been created to cover the costs of moving out of the old workshop in early 22/23.

Transfers have been made to the designated fund for investment in fixed assets, as detailed below, so that the closing balance equals the net book value of fixed assets at the year end.

General fund
Designated - invested in Fixed assets
Designated - workshop removal
Designated - capital project
Designated - capital reserve
Designated - capital replacement
ACE CRF1
Learning and participation
Capital Project Grants & donations		 Rebuild
Reserves
£
46,142
-
-
-
-
-
(46,142)
-
-		 Investment in
fixed assets
£
(17,683)
745,524
-
(302,460)
(66,834)
(14,046)
-
-
(344,501)
New
Designations
Total
£
£
(21,467)
6,992
-
745,524
21,467
21,467
-
(302,460)
-
(66,834)
-
(14,046)
-
(46,142)
-
-
-
(344,501)
- - -
-

Transfers 2020/21

A transfer to the designated fund for investment in fixed assets has been made equal to the additions in the year.

The programme fund was re-designated in the year to support costs in 21/22.

A transfer has been made designated to meet the ongoing costs of COVID recovery.

A transfer has been made from the general funds to the designated capital project fund to ensure that taken together with the restricted capital funds sufficient monies are available to meet the costs of the capital project.

General fund
Designated - invested in Fixed assets
Designated - Covid recovery
Designated - capital project
ACE CRF1
Capital Project Grants & donations
Refurbishment 2013		 Reclassified
£
3,500
(3,500)		 Disposal
theatre lease
£
80,000
(80,000)
-		 Investment in
fixed assets
£
(72,120)
263,227
-
-
-
(191,107)
Revenue
support
Total
£
£
(145,773)
(134,393)
-
263,227
130,000
130,000
15,773
15,773
-
(80,000)
(3,500)
-
(191,107)
- - - -
-

Restricted funds

Garfield Weston Foundation LGBT Foundation Towards ongoing project costs IGEN Trust Towards the Academy project Bolton CVS - Health and Wellbeing Towards community health and wellbeing National Lottery Community Fund - ReAct Towards work with over 50s. Provincial/Walsh Trust for Bolton Towards the Academy project

To meet the ongoing costs of the pandemic, both capital and revenue. Towards ongoing project costs

It is expected that all the above funds will be utilised in the 22/23

32

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

18 ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS
Company fund balances at March 31 2022
are represented by:-
Fixed assets
Net current assets
Creditors due in more than one year		 Unrestricted funds
General
Designated
£
£
-
935,298
1,207,924
130,683
(298,579)
-		 Restricted
Total
Funds
£
£
-
935,298
195,109
1,533,716
-
(298,579)
909,345 1,065,981 195,109
2,170,435
Company fund balances at March 31 2021
are represented by:-
Fixed assets
Net current assets
Creditors due in more than one year
Free Reserves:
Net current assets		 Unrestricted funds
General
Designated
£
£
-
288,073
565,061
622,556
-
-		 Unrestricted funds
General
Designated
£
£
-
288,073
565,061
622,556
-
-		 Restricted
Total
Funds
£
£
-
288,073
1,026,700
2,214,317
-
-
565,061 910,629 1,026,700
2,502,390
2022
£
1,207,924		 2021
£
565,061

19 CONSTITUTION

The Company is limited by guarantee and does not have a share capital. In the event of the Company being wound up the members are committed to contributing £1 each.

20 TAXATION

The company is a registered charity and is entitled to claim annual exemption from UK corporation tax under sections 466 to 477 of the Corporation Tax Act 2010.

21 CAPITAL COMMITMENTS

The company had no capital commitments at the year end (2021 - none).

33

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

22 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES

Net income/(expenditure)
Add back depreciation
Deduct interest income shown in investing activities
Deduct profit/add back losses on disposals of FA
Decrease/(increase) in stock
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash generated from/(used in) operating activities		 Group
2022
£
(363,012)
98,581
(134)
-
(7,432)
(351,939)
177,740		 Group
2021
£
974,133
31,082
(2,001)
16,488
131
(187,592)
41,182		 Charity
Charity
2022
2021
£
£
(331,955)
921,298
98,299
28,069
(134)
(2,001)
-
-
-
-
(374,440)
(122,473)
164,525
50,623
(446,196) 873,423 (443,705)
875,516
23 MOVEMENT IN NET DEBT
Group
Cash and cash equivalents
Cash at bank and in hand
Debt
Bolton MBC re lease premium
Cash and cash equivalents net of debt
Charity
Cash and cash equivalents
Cash at bank and in hand
Debt
Bolton MBC re lease premium
Cash and cash equivalents net of debt		 at 31/3/21
£
2,055,434		 cashflows
£
(894,302)		 Lease
premium
£
-		 other non
cash
£
£
-
1,161,132
- - (298,579) -
(298,579)
2,055,434 (890,516) - 862,553
-
1,154,678
2,045,194
- - (298,579) -
(298,579)
2,045,194 856,099

There were no: acquisitions or disposals of subsidiaries; foreign exchange movements; or market value changes in the period.

24 LEASE COMMITMENTS

a Operating leases

The charity and group had no commitments under non cancellable operating leases in either year. It continued to occupy the Wellsprings premises at a peppercorn (if required) but for storage rather than as offices until May 2021.

The benefit of this arrangement is reflected in the accounts as support in kind.

During the year, the charity entered into a lease with Bolton Council for the theatre. The lease commenced on August 31 2021 and runs until June 2120. There is no rent payable under the lease, but there is a lease premium of £503,762. The initial instalment of the lease premium was paid in the year of £240,000 plus VAT and the balance is payable in equal annual instalments commencing August 31 2024 and is provided for in these accounts.

A condition of the lease was the granting of the charge in favour of ACE referred to in note 26.

b Finance leases

The charity and group had no obligations under finance leases in either this or the preceding year.

34

OCTAGON THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

25 RELATED PARTY TRANSACTIONS

Details of the grant support from organisations who nominated directors and other organisations with which the charity works closely is shown in the statement of funds note.

Details of the trading between the charity and its subsidiaries is shown in the notes to the SoFA.

E K Alladi, a trustee. Is also an actor and following the audition was cast in the play An Adventure. He was engaged on standard Equity terms and was paid a total fee of £4,408 including pension contributions.

Unrestricted donations received from trustees amounted to £5 (2021 - £200). There are no other related party transactions that are required to be disclosed.

26 CONTINGENT LIABILITIES

Capital grants

In previous years the charity has received funding from Arts Council England (ACE) for the redevelopment of the theatre from ACE National Lottery funding and jointly from ACE and Bolton MBC for the improvement of the lighting and sound system. The assets created are subject to ACE normal terms and conditions and property assets cannot be disposed of at any time or equipment within ten years without ACE prior written consent, and any proceeds of sale may be repayable in proportion to the funding received.

These liabilities are not expected to crystallise and therefore the grant, relating to capital items, has been taken to a restricted reserve and related depreciation is being charged against the fund each year. However, as all the other restrictions had been met the grant was released to unrestricted funds in 20/21.

27 CHARGES

The Arts Council England (ACE) was a major funder of the capital works carried out by Bolton Council on the theatre building. In order to safeguard the interests of the funder and to facilitate the granting of the lease by the Council to the Charity, ACE has been given a charge of the leasehold property know as the Octagon Theatre, Howell Croft South Bolton.

35