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2024-03-31-accounts

POLKA CHILDREN’S THEATRE LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31[ST] MARCH 2024

Registered Charity Number 256979 Registered Company Number 00938592

POLKA CHILDREN’S THEATRE LIMITED

Annual Report and Financial Statements for the year ended 31st March 2024

Contents

Page
Report of the Trustees 1 - 22
Independent Auditor’s Report 23 - 26
Statement of Financial Activities 27
Balance Sheet 28
Statement of Cash Flows 29 - 30
Notes to the Financial Statements 31 - 48

Page 1

POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

The trustees are pleased to present their report together with the financial statements of the charitable company for the year ended 31[st] March 2024.

REFERENCE AND ADMINISTRATIVE DETAILS

Charity Number: 256979 Company Number: 00938592 Company Secretary Lynette Alston Principal Office: 240 The Broadway, Wimbledon, London SW19 1SB Auditor Buzzacott LLP, 130 Wood Street, London, EC2V 6DL Bankers Barclays Bank plc, 8 Alexandra Road, Wimbledon, London SW19 7JZ

Directors and Trustees

The Directors of the charitable company (the Company) are its Trustees for the purpose of charity law. Throughout this report they are collectively referred to as the Trustees. The following served as Trustees during the year and up to the date of signing this report, except where shown:

Chair: Dominic Proctor Deputy Chair: Fiona McLaren Treasurer: Vincent O’Brien Michael Bradley Alison Harpur Emily Vaughan-Barratt (retired 28[th] February 2024) Victoria Aspden Arif Saad Kellie Williams-Jauvel Michael Lord Catherine Manuel Helen Clark Bell

Page 2

POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

A VIEW FROM THE CHAIR

This year saw us continue to successfully build back the momentum which had been lost to the twin challenges of our temporary-closure, which enabled the wonderful refurbishment of our building, and then the atrocious pandemic and its devastating consequences for children, our audiences and our business. Actually, by most measures it was a very positive year, certainly with more ladders than snakes!

At the heart of the recovery has been a strong focus on producing outstanding and inspiring material for our stages and our workshop spaces (not forgetting our audiences in the community and “on the road”). You will see from the data in this report that our growth numbers are positive and encouraging, with more and more children experiencing the magic of Polka.

We never forget that one of our core objectives is to ensure that this magical work is experienced by children from all backgrounds and our achievements in this respect were strong in 2023/24. Moreover there is a robust framework in place to build on this specific and crucial objective.

The tough reality is that support from Public funds (whether local, national, or international) is uncertain and declining. And schools’ budgets too are at least under serious pressure and in many cases have disappeared. Furthermore we are determined to resist any temptation to raise our ticket prices beyond the reach of our wide audience. In aggregate what this all means is an increasing reliance on raising more funds from our magnificent and loyal supporters (although with significant changes to the trust & foundation landscape that is also a challenge).

I have no doubt that we already have the most crucial resource to enable us to continue to grow...our team! Our staff are brilliant and highly committed, they are expertly led by our excellent Senior Management Team, and they are supported by a small army of over 100 energetic volunteers. The Board is strong, skilled and committed. I am very grateful to all of these groups for their dedication to Polka.

Polka is a leader in our important sector, a much-cherished institution, a place which the creative community wants to be part of, and a place which our audiences love coming to. We are well set to continue to meet our objectives.

Dominic Proctor,

Chair, Board of Trustees

Page 3

POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Polka Children’s Theatre Limited is a company incorporated in England and Wales, limited by guarantee, and governed by its Memorandum and Articles of Association dated 10th September 1968 and amended to allow for current governance arrangements on 16th October 1987, 14th October 1993 and 8th February 2012. It is registered as a charity with the Charity Commission.

Appointment of Trustees

As set out in the Articles of Association, the Trustees have the power at any time to appoint any person to be a member of the Board, either to fill a casual vacancy or as an additional member of the Board. Any person so appointed holds office only until the next Annual General Meeting and is then eligible for re-election. At each Annual General Meeting, one-third of the members of the Board retire from office.

Trustee Induction and Training

New Trustees receive briefings on the history of the company, their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the Board and decision-making processes, the company plan and recent financial performance of the company.

Organisation

The Board of Trustees determines the long-term objectives of the company. It meets quarterly and detailed oversight is further assured through a structure of Board Working Groups covering finance, development, operations, artistic and creative learning programming, and marketing and commercial activities. The Board appoints executive officers, not being members of the Board, to discharge the artistic, administrative and other duties necessary for the proper functioning of the company.

The remuneration of the Executive Officers is recommended to the Board of Trustees by the Finance Working Group with reference to comparable salary levels within the subsidised theatre sector.

Executive Officers: Helen Matravers, Joint Chief Executive and Artistic Director Lynette Alston, Joint Chief Executive and Company Secretary

The Executive Officers represent Key Management Personnel and their cost of employment for the year totalled £118,497.

Page 4

POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Public Benefit

In shaping Polka’s objectives for the year and planning our activities, the Trustees considered the Charity Commission’s guidance on public benefit and fee charging. The Theatre relies on grants and the income from sales, fees and charges to cover its operating costs. In setting the charity’s programme of work and the level of fees, charges and concessions, the Trustees gave particular consideration to the accessibility of the theatre for those on low incomes and those with least opportunity to participate in cultural activities.

Objectives and Activities

The charitable objects of the company are to promote, maintain, improve and advance education, particularly by the production of plays for children and the encouragement of the arts, including the arts of drama, mime, puppetry, dance, singing and music.

The overarching mission of the organisation is to empower children to navigate their world through inspirational theatre and creative experiences. Polka wants to give as many children as possible, from all backgrounds, the opportunity to experience thrilling, innovative, world-class theatre, and creative learning opportunities, in a welcoming space that they can call their own.

Strategic Objectives

  1. Produce an inspiring, diverse and inclusive programme of world-class theatre and creative learning opportunities for children aged 0-12

  2. Be a locally, nationally and internationally valued organisation

  3. Provide a welcoming and inclusive space dedicated to the playful inspiration of children, where families, schools and communities come together

  4. Give as many children as possible, from all backgrounds, the opportunity to access the enriching theatre experiences Polka offers

  5. Support children’s learning and personal development

  6. Drive pioneering practice within children’s theatre

  7. Be a financially sustainable and environmentally responsible organisation

  8. Provide a respectful, inclusive and supportive environment for staff and volunteers to achieve their best for our beneficiaries

Page 5

POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Our Values

Overview

This was the second full year of venue-based operations after a 2.5 year closure for our major capital redevelopment, extended by the impact of the Covid-19 pandemic.

By the end of the year over 136,000 people had experienced our work (YE 2023: 115,000), including over 114,000 who visited our theatre venue (YE 2023: 98,000) and 20,400 who took part in Creative Learning activities (YE 2023: 20,000). We produced 9 in-house productions and co-productions, and received 16 visiting companies at our Wimbledon venue. We also had 6 productions on tour, including a two week schools tour, and two performances at the Visioni Festival in Bologna, Italy.

This year marked Helen Matravers’ first full year in the role of Artistic Director and Joint CEO (alongside Executive Director, Lynette Shanbury), who has brought a renewed energy to the artistic vision of the company. We employed over 240 staff, including over 139 freelancers. 112 people gave their time as volunteers, and 5,450 volunteer hours were contributed through our formal volunteering programme, with many more contributed by informal volunteers.

Finance

Given the economic climate, the Board agreed to run a planned deficit for the year, utilising designated funds alongside some free reserves. The aim was to support the momentum of growth of the company following reopening, and provide our community and children with services they need at this challenging time. We continued to feel the impact of growing overhead costs, particularly around staff cost increases due to our ongoing commitment to being an ethical Living Wage Employer. High energy prices and other generally higher costs of overheads such as cleaning, IT and building management services, are continuing to be hugely challenging and we are grateful for those supportive funders who have recognised this. As costs increase we must increasingly seek support through fundraising and individual donors to sustain a quality programme which is economically accessible to all (see ‘Year in Review’ section for more details of our funded and free activities).

Page 6

POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Finance (continued)

Revenue

Polka operates a mixed funding model, with both earned and funded income vital to enable the company to operate effectively. Our box office performed strongly during the year, due to careful marketing and well-chosen productions which attracted audiences, supported by expansion of our free, fully-funded ticketing programmes. The legacy of the pandemic continued to cause cancellations of some performances, as staff and artists fell ill, and demonstrated the impact the pandemic has had on general physical and mental resilience of workers in all fields. New mitigating actions, including bringing understudies in to cover the key main house festive period, were deemed essential to protecting the company’s reputation but added to expenditure.

Our school audiences also continued to be affected by both the legacy of Covid-19, and continued tightening of school budgets. Thanks to generous support from funders we were able to continue our expanded Curtain Up! programme (free tickets to schools who otherwise were unable to afford to visit the theatre), giving away 6,000 tickets during the academic year (previously 4,000), which we are continuing to do as long as we are able to fundraise sufficiently. Alongside strong cost control, support from funders, both public and private, proved fundamental in sustaining the core function of the organisation during this challenging year, with only 57% of our income coming from earned sources during the year (51% in YE 2023).

Support from Arts Council England continued to be vital, accounting for 20% of our income (22% in YE 2023). We have continued as an Arts Council England National Portfolio Organisation for the 2023-26 period, which demonstrates Polka’s ongoing importance in the English theatre ecology. However the standstill nature of the funding (essentially representing a real-terms cut) continues to present a significant challenge to ongoing operations. Our EU funding through Culture Europe came to an end in 2023/4, following Brexit, after over a decade of successful Creative Europe project support. Receiving real-terms funding cuts at local, national and international level places significant pressure on our operations and breadth of reach.

Looking ahead, delivering quality work at a time of declining public funding and growing overhead costs remains an on-going challenge. Polka is well placed to meet the priorities of public funders in such areas as creative education for children, health and wellbeing, community engagement and community cohesion, representation and diversity. These priorities will continue to be pressing over the next few years as we respond to the long-term impacts of the pandemic on children, the needs of schools facing increasing budgetary and timetable/curriculum pressures, and the cost-of-living challenges for many families.

Page 7

POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Risk Management

The Board of Trustees has a risk management strategy which comprises:

The principal risks and mitigations identified at 31[st] March 2024 were:

Page 8

POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Risk Management (continued)

Attention has also been given to non-financial risks arising from the health and safety of staff and child protection, which are standing items on the risk register. These risks are managed by having robust policies and procedures in place, providing regular training for staff working in these operational areas and monitoring by staff safety and safeguarding teams, with oversight by the Board. Polka’s Working Group structure enables a wider range of stakeholders to input to and influence decision making within the organisation, focusing on key areas including Artistic, Operations, Finance, Community, Teachers/Schools and Young Voices.

Reserves Policy

The Trustees have reviewed the company’s reserves policy in line with the guidance issued by the Charity Commission and recognise the need to safeguard the organisation against potential reductions in grant-aided income, fluctuations in earned income and unplanned expenditure, particularly emergency repairs and maintenance to the theatre premises going forward. They also note the particular situation caused by the legacy of the pandemic, and the impact of cost-of-living on our wider community and staff team. They consider that unrestricted general reserves should be maintained at a level at least equal to three months’ “core” revenue operating expenditure, which, at normal operating levels equates to approximately £325,000.

In compliance with this policy, the unrestricted general reserves at 31st March 2024 amounted to £688,701 (2023: £657,862).

The Trustees recognise that unrestricted reserves may need to be utilised to support operations in this unprecedented environment (any such use will be agreed through the usual governance structure of the organisation). Nevertheless, Trustees consider that the current reserve levels remain appropriate for the organisation. In addition, the Board designates reserves for specific purposes out of unrestricted funds each year as required when approving the annual accounts. Expenditure out of designated reserves is then approved in accordance with normal authorisation policies. Designated reserves at 31[st] March 2024 amounted to £463,573 (2023: £439,896) (see Note 16 to the Accounts).

Page 9

POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

YEAR IN REVIEW

Polka, based in Wimbledon, South West London, is a pioneering national theatre for children. The first UK venue to be created exclusively for young audiences, we specialise in work for children aged 0-12 years and remain one of very few theatres in the UK that regularly commissions and produces new work for children in this age range. Since 1979, we have built a local, national and international reputation and are recognised for the quality of our productions through which children explore the world and their relationship to it. We are at the forefront of developments in work for Early Years audiences and we champion ‘Young Voices’, providing children with a platform for their ideas and opinions by developing productions derived from their ideas and involving them in the creative process. We provide enabling, nurturing and safe environments to stimulate young minds and imaginations, and fuel a sense of discovery and open play.

Headlines for 2023/4

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POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

YEAR IN REVIEW (continued)

Productions, Touring and Professional Development

In total just over 104,000 children and adults attended performances of shows (YE 2023: 85,000), across 748 performances in house and 181 performances on tour.

In the Main Theatre, we began the year with The Lost Spells, a new production by Goblin Theatre and co-produced with Polka, Watford Palace and Theatre by the Lake. The production opened at Watford in spring 2023 with brilliant reviews from the Guardian (****…enchanting musical has an abundance of magic, The Guardian) and The Stage, before transferring to Polka for a 5 week run. This nature-themed new musical, based on the beautiful book by Robert Macfarlane and illustrated by Jackie Morris, received a fantastic reception by school and public audiences.

Our Main House production for the summer was the newly commissioned Hairy created by the UK’s leading physical comedy ensemble Spymonkey, in a co-production with Worthing Theatres and Museums. This devised production, Spymonkey’s first production aimed at children, followed the adventures of Hairnry the hair follicle on his quest to become a head hair. With themes of understanding difference and helping your friends, this anarchic show was a joyful summer production. The production transferred to Worthing for a week following its six week run at Polka, and received an Offies Award nomination for Best Design.

Following an autumn visitor season, our festive winter production was The Snow Queen, a new commission scripted by Jude Christian and directed by Emma Baggott. Over 16,000 children and adults enjoyed this new writing commission. For the first time this year we made the financially challenging but reputationally essential decision to invest in understudies, safeguarding the vital festive period of shows, and all performances went ahead. During rehearsals, three directing mentees joined the team.

In the spring we opened Tidy – a co-production with Welsh company Theatre Iolo. Directed by Lee Lyford and based on the book by Emily Gravett, it was co-created with Rachael Canning and Lucy Rivers. Following Pete the Badger as he tidies up his forest beyond recognition, the story is about protecting and recognising the value of the natural world around us. The production was hugely popular, exceeding box office targets, and receiving four Offies Award nominations. It will undertake a Welsh-language tour with Theatre Iolo in the future.

Finally in the Main House we started our run of The Three Billy Goats Gruff, a fully-inclusive coproduction with Derby Theatre and Hiccup Theatre, directed by Derby’s Artistic Director Sarah Brigham, which will be the first of a three year programme of collaboration. With BSL as the first language of the show, and integrated audio description and creative captioning throughout, this cemented our commitment to inclusive theatre production and shared learning with the Derby team.

Page 11

POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

YEAR IN REVIEW (continued)

Productions, Touring and Professional Development (continued)

In the Adventure Theatre we started the year with Let’s Build!, a minimal language, clowning show for age 2-5 which was our second co-production as part of the Culture Europe funded Mapping programme, exploring the best in international Early Years theatre practice. It was inspired by the outcome of a series of workshops involving Pupils from Merton Abbey Primary school. The devised production, directed by Trina Haldar, explored imaginative play and ended with the audience joining in to build things out of the props and their own seats. In the autumn, the production also gave two performances at the Visioni Festival in Bologna, Italy, as part of their Mapping festival programme.

For the summer, we revived the ever popular The Everywhere Bear, a co-production with Little Angel Theatre and Royal & Derngate Northampton. The production ran for 11 weeks, before transferring in the spring to Little Angel Theatre. The revival received two OffWestEnd Award nominations. For the festive season, we revived our 2021 production of The Night Before Christmas, also a coproduction with Royal & Derngate Northampton, written by Hattie Naylor and directed by Polka Associate Director Roman Stefanski.

Finally in the Adventure Theatre we completed the year by opening a new hip-hop production of Romeo & Juliet, in a collaboration with Beats & Elements (Conrad Murray and Lakeisha LynchStevens). Designed for children aged 9+ this high energy new commission went on to complete four weeks in-house (attracting applications from Curtain Up! schools for over 800 tickets) and a tour to 9 schools, with wildly delighted audiences (**** Thoughtful and slick, The Stage). The show received four Offies Award nominations, and Methuen Publishing also published the play-text which is now available for purchase across their outlets and in Polka’s shop.

Across the year, audience feedback from post-show surveys of in-house productions was excellent and in November 2023 we undertook a general audience survey, with the following results from respondents:

Page 12

POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

YEAR IN REVIEW (continued)

Productions, Touring and Professional Development (continued)

Alongside the nine in-house productions we created, we hosted ambitious touring productions by 16 excellent UK-based Visiting Companies. This included in our Main House The Singing Mermaid (Little Angel Theatre), The Adventures of the Little Red Hen (Stuff and Nonsense Theatre Co.), Zoe’s Peculiar Journey through Time (Theatre Rites) which included integrated BSL school and public performances, and Oh No, George! (Can’t Sit Still). In our Adventure Theatre we welcomed two operas for babies under age two – English Touring Opera with Under the Little Red Moon, and HurlyBurly Theatre with You are the Sun – the Wardrobe Ensemble’s The Star Seekers which journeyed through the universe, Apples & Snakes’ hip hop garden block party Plot 17, and Krystal S. Lowe’s dance theatre piece Remarkable Rhythm, which featured integrated audio description. We welcomed a diverse range of other performances by companies including Lyngo Theatre, Angel Exit Theatre, Little Angel Theatre, M6 Studios, Norwich Puppet Theatre, Tutti Frutti and LAStheatre.

We are committed to ensuring that touring companies, who face huge challenges in the current economic climate, find a supportive, professional and financially viable welcome at Polka, including multi-day runs, minimum fee guarantees and strong in-house technical support.

Together with Unlimited we co-commissioned a new disabled-led production which went into production during the year, ready for staging in the Main House during 2024/25. The production did a preview week of performances at Bristol Old Vic as part of their Ferment season.

After five years, the Culture Europe funded programme Mapping came to a conclusion. The project, working with 17 countries including the UK representative Polka, resulted in 27 festivals, 27 new productions, 6 books, 5 exhibitions, and many collaborative workshops and meetings to share practice. The Mapping project research was presented at ASSITEJ International Conference in 2023.

A selection of reviews of productions from the year:

**** ‘enchanting musical has an abundance of magic’ The Guardian about The Lost Spells

**** ‘This adaptation for the stage … captures all the poetic mysticism of its source work, while remaining accessible to a predominately pre-teen audience’ The Stage about The Lost Spells

**** ‘this is one of the most ingenious kids’ shows around right now. Underneath all the absurd mania, there’s even a message about accepting one another for whatever we are. If you have little ones… you’d be mad to miss it.’ The Stage about Hairy

**** ‘a world away from the cosy predictability and well-worn jocularity that mark out most summer children’s shows..... it’s a gloriously anarchic break from the long trudge of the summer hols, and as much a treat for weary parents as twitchy kids.’ Time Out about Hairy

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POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

YEAR IN REVIEW (continued)

Productions, Touring and Professional Development (continued)

**** ‘This extraordinary, exhilarating and joyously ridiculous show from Spymonkey shouts to the rooftops about Polka’s principles of equality, inclusion, diversity, and offering children the highest quality entertainment. It also has fart noises.’ Everything Theatre about Hairy

‘a visually stunning production that offers a thought-provoking twist on a classic fairy story’ The Family Stage about The Snow Queen

*** ‘it’s an enjoyably loopy [..] Christmas romp with something for ‘Frozen’ fans, Narnia heads and straight-up fairytale lovers’ Time Out on The Snow Queen

**** ‘When it comes to making Shakespeare relatable for young people, you would be hard pressed to beat Baz Luhrmann’s 1996 film version of the tragedy of star-crossed lovers. But here is a strong contender – a streetwise, sing-through hip hop ‘remix’ for ages nine to 12 and up, thoughtfully devised and slickly directed’ The Stage about Romeo and Juliet

**** ‘This energetic and engaging hip hop-infused rendition of Shakespeare’s classic centres the drama in the community of South London and in doing so makes it fiercely relevant to all audiences’ Everything Theatre about Romeo and Juliet

Attracting major reviewers to see children’s theatre, especially Early Years work, remains a challenge and we continue to work to raise the profile of and champion the importance of this fundamental part of the theatrical offer.

Staff contributed to debate and learning in the sector through involvement at various events, including our Artistic Director joining the Musical Theatre for Young Audiences panel at BEAM Festival at Oxford Playhouse. We met and received visits by international visitors including from AFTEC in Hong Kong and Toronto Young People’s Theatre, sharing good practice and ideas.

We continued our relationship with Wimbledon College of Arts who made props and interactive play pieces as well as decorations for our Big Bash annual fundraiser, and presented a sharing of their work developed as part of a collaborative course module on Puppetry and Early Years performance, at Polka. Their puppetry designing and making skills were showcased in a photo exhibition in the cafe. A design student from WCA was also on placement with us for The Snow Queen production period.

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POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

YEAR IN REVIEW (continued)

Productions, Touring and Professional Development (continued)

We continued to expand our adapted shows programme, delivering 34 adapted performances (YE 2023: 28) to 2,982 audience members. Adapted performances are BSL interpreted, Audio Described, Relaxed and Captioned. These are in addition to the fully inclusive performances that were programmed.

‘We really enjoy our visits to the Polka Theatre. As someone who works in the D/deaf community as a British Sign Language interpreter. I’m extremely happy to see how inclusive and accessible productions are at the theatre. I also love how accessible and inclusive it is in general.’ Audience feedback

As a charity, we are very mindful of the need to ensure our activities remain economically accessible for our audiences. Alongside our free, open-access play spaces and our fully funded community and school programmes (see below), we are committed to ensuring affordable ticket prices, with £10 tickets available for every Main House performance.

Creative Learning: Participation, Schools & Community

Our extensive and ambitious Creative Learning programme sits alongside our productions as a key part of our strategic delivery. In total, 20,400 individual children took part in Creative Learning Activities across 32,861 experiences. We delivered 1,219 events and estimate 81% of event participants were new to Polka. 42% of our Creative Learning activities were provided to beneficiaries for free, thanks to support from funders, and 50% of people who took part in Creative Learning activities did so for free. Our Community Working Group continued to meet quarterly, and the Teacher’s Advisory Group continues to ensure we have access to advice and feedback from our beneficiaries and the wider community, reflecting their real-time needs and demands.

Community

Our Polka Invites community membership scheme, set up in 2021, continued – this funded ‘members’ programme aims to increase access to creative experiences for marginalised families in our community. These families have been referred to us by Merton Children’s Centres and community groups such as Polish Families Associations, Merton SENDIS, Care4Calais, Merton HomeStart and Christian Care. Through their memberships, families are able to access free Polka production tickets, Saturday Club, Take Part holiday and termly workshops. By the end of the year we had 716 Polka Invites participants (179 families) taking up free tickets to shows, coming to dropin workshops and attending Saturday Clubs. Over 680 free community tickets to shows were distributed, and 450 free places on workshops were taken up. We ran eleven free creative community workshops at venues in our local area, and across our 10 Saturday Clubs (community story-telling and creative activities) 371 participants took part.

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POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

YEAR IN REVIEW (continued)

Creative Learning: Participation, Schools & Community (continued)

Community (continued)

Freefalling is our long-running flagship funded programme, working with referred children who are in challenging circumstances at home or at school. For the second year, thanks to support from funders, we continued to work with two Freefalling groups – Freefalling Foundation and Young Company – who both performed during the summer on the Polka main theatre stage. 93% of participants said it helped with their confidence, and 100% agreed they had made new friends.

Putting children’s voices at the heart of our work is a core organisational value. Our Younger Voices (4-6yrs) and Young Voices (7-12yrs) groups are our sounding board for projects, reviewing shows and activities, and giving us feedback and ideas to improve our building, ensuring children’s voices remain at the heart of our work.

Free community bookings on Thursday mornings in our Clore Learning Studio sensory suite continued, allowing us to strengthen existing relationships and build new ones with a number of community and SEND groups such as Merton SENDIS, Tram House School (a BeyondAutism school), Young Parents (Merton Children's Centres), Polish Families Association and Ukrainian refugee groups, Blossom House (SEND school), isensory (Wandsworth community interest company), and SEN Talk CIC (Wandsworth based community interest company that supports children with additional communication needs).

During the winter Polka was listed as an official ‘Warm Welcome Space’, open 6 days per week. Despite the challenge for the venue of hugely increased energy bills, Polka’s importance as a community hub and open-access free play space was retained thanks to extra support from donors. Across the year we estimate there were over 11,000 visits by people making use of our free indoor and outdoor play areas.

Over the summer holidays, in response to the cost-of-living crisis, and with local backing, we provided free breakfasts for any children who needed it in our café on all week-day mornings. In August we held a Community Fun Day at Polka, with free activities across the space and into the neighbouring church-yard. We estimate around 1,900 people attended, with activities including story circle, creative crafting, environmentally themed games and trails, and over 400 faces painted.

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POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

YEAR IN REVIEW (continued)

Creative Learning: Participation, Schools & Community (continued)

Schools

We worked with 224 schools during the year, through both funded and paid-for programmes.

Write Here Write Now, our funded creative writing and literacy project that supports Year 3 children, worked with 10 schools (including one SEND school). 60 children participated, writing stories together that were shared by authors and actors on our Main House stage with the children and their families invited to attend. Evaluation of the programme by an external evaluator showed 74% increase in communication skills & 68% increase in confidence to participate in class. The programme began its fourth year in spring 2024.

Our flagship Curtain Up! Programme continued, providing free tickets to school groups who otherwise would not be able to attend. Thanks to support from funders, and responding to the challenging financial circumstances that schools have continued to find themselves in, we were able to increase our Curtain Up! scheme from 4,000 to 6,000 tickets. Therefore during the year we distributed 6,215 tickets across 68 schools, of which 42% were schools new to us. Following Curtain Up! performances children get the opportunity to meet the performing companies and ask them questions, adding to their quality of experience.

We expanded our paid-for schools activities too, delivering a range of in-school day-long workshops, hosting schools at our venue for after show workshops, and delivering after-school activities. We offered 21 young people aged 15-17 the opportunity to undertake a week of work experience. The group spent time with all departments at Polka including production, marketing, fundraising, creative learning and visitor services, and presented their idea for a production at the end of the week. Five returned to us as volunteers. We were also featured in a film by South London Partnership Careers Hub, highlighting diverse creative industry jobs.

Participation

We have an extensive weekly workshop programme, with additional school holiday programmes. This is the second year where we have offered the Discover and Explore Arts Awards to our Act 2 and Youth Theatre children. The programme is run alongside their normal weekly sessions and all children have passed. We will continue to offer this for children who are 6+years in the Summer Term only. We delivered the Discover Arts Award programme as part of our Act 2 club. This is the first time we have offered children who participate in our Take Part programme the opportunity to achieve their Arts Award. All Act 2 Club participants passed their Arts Awards and received certificates from Trinity College, London to celebrate their amazing achievements.

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POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

YEAR IN REVIEW (continued)

Creative Learning: Participation, Schools & Community (continued)

Participation (continued)

Children and families continue to need support in all our activities – with over 357 Creative Learning sessions requiring additional support for SEND or welfare needs. We continue to expand our inclusive theatre and creative learning work in response to this clear and growing need from our communities.

Artist Development

In January 2024 we launched our new Artist Development programme, Catapult. It will see Polka support and mentor six underrepresented artists across a 12 month period, to develop brand new show ideas, which will be ‘scratched’ at our bi-annual Big Dreams Festival. This replaced our PolkaLAB programme, reaching more practitioners and providing greater opportunities. It is particularly aimed at under-represented artists and producers including those from the Global Majority, who identify as disabled, LGBTQ+, or who come from a lower socio-economic background.

Following an open call-out we received 96 applications for Catapult, from which six were selected. The selected artists will work with Polka for 12 months to develop theatre making-skills, company organisational skills and fundraising, as well as performance opportunities. The selected artists/companies and their projects are:

Artist Project Notes
Farrell Cox Don’t Yuk My
Yum!		 Inspired by the vibrant memories of Farrell’s Jamaican grandparents’
garden, this original story celebrates cultural exploration and the joy of
learning in a playful and inviting atmosphere.
Layla Bradbeer The
Misbehaving
letters		 Layla will be developing an original puppetry show portraying literacy
difficulties in a playful and accessible way. The show is inspired by her
own childhood experiences of being diagnosed with dyslexia.
Ashton Owen and
Natalya Martin		 Pablo Fanque
project		 They will be developing a show for ages 0-6 celebrating the life of
Britain’s first recorded Black Circus owner, Norwich born Pablo Fanque.
Mikaya Teodoro Filipino
Puppetry
Exploration		 Mikayla is step-changing from puppet designer-maker into a more
holistic children’s puppet theatre maker. For this project, she will be
developing a puppet show focusing on the Sama-Bajau folk of the
Philippines and their relationship with the sea.
Kiota Collective,
Bristol		 How
Lightning
came to be.		 Devising a new show for families based on an Indian nature myth
about how lightning came to be, with lots of wonderful characters.
Ruby Kitching Baki Ruby is thrilled to be developing her audioplay, ‘Baki’, for stage. Baki
means the ‘part left owing’ in Bengali and tells the story of Dada as he
tries to make sense of where he is in life, aided by his young
grandson.

Page 18

POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

YEAR IN REVIEW (continued)

Artist Development (continued)

We also introduced three Associate Companies, who will act as advocates for Polka’s work nationally and gain access to shows/rehearsal space where available. Polka will also help amplify their work more widely too. The Associate Companies are:

Alongside development periods for our own productions, we offered free or reduced rate space where possible for artists/companies undertaking R&D for their own work. For example, Sharon Kanolik undertook five free days R&D in January 2024 for her new baby/new parent show, and we supported a sharing of the work to 10 parents and babies and 8 producers.

We continue to work hard to ensure our freelancers and performing companies feel part of the Polka team during their time with us, in an industry where being a freelancer can be very challenging.

‘The staff team and volunteers at Polka have been so incredibly welcoming and working in the building has felt like being part of the team…. the experience has been very positive. The chance to socialise with everyone and the small touches make being a freelancer easier, and Polka does this fantastically.’ Feedback from the Let’s Build! company.

Awards and Recognition

We received some excellent recognition through the year. We won the Merton Best Business Award for Best in Creative Sector, and were runners up in the Best Team category. Ray Standeven, our Volunteer Coordinator, won Volunteer Manager of the Year at the Merton Partnership Civic Pride Awards, and we were also nominated for Volunteer Team of the Year.

Our productions received a number of Offies Award nominations during the year, including two for The Everywhere Bear, Best Design nomination for Hairy, and four nominations each for both Tidy and Romeo & Juliet. In addition a number of the Visiting Company productions were nominated: Zoe’s Peculiar Journey through Time, The Littlest Yak, and The Little Red Moon.

In the local Time & Leisure Awards we won in the Family Attraction of the Year category, and were nominated Favourite Entertainment Venue and The Tony Kane Cultural Experience of the Year.

Our Creative Learning programme brought us a finalist nomination for the Excellence in Drama Award category at the Music & Drama Awards for Write Here Write Now. And we also won the Big Give’s Fundraising Innovation Award, in recognition of our exceptional Big Give fundraising campaign in December 2023.

Page 19

POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

YEAR IN REVIEW (continued)

Capital

During the year we worked to secure supporters to undertake the redevelopment of our flat, which sits above our café. Full support for this project was confirmed following the year end and the works are taking place during summer 2024 with the aim of renting the flat to generate income for the charity.

We have continued to seek support to invest in the fabric of the building, with fundraising underway focusing on improvement of the Main House, which was largely excluded from our recent major redevelopment for financial reasons. Some improvements have already taken place, such as upgrading key electrical and safety systems. Further work will take place in summer 2024 and 2025.

We were informed in February 2024 that the main contractors for our recent capital redevelopment, ITC Concepts, had gone into administration. This was a disappointing situation as various defects remain on the building, although none that prevent full operational use. We have submitted a proof of debt claim to the administrators.

Environmental Sustainability

Our staff-led Green Team champions environmental sustainability across the organisation, with the aim of continuing improvements to our own environmental impact as well as finding ways to influence and inspire our community to be greener.

As a children’s theatre, Polka is in a unique position to spark children’s enthusiasm for their environment, and sustainability is regularly part of our theatre and creative workshops programming. Tidy and The Lost Spells particularly carried a strong environmental message to make sure we value our natural world, and visiting shows such as Nest by M6 Studios also shared stories of nature and its importance. The Tidy inspired community day in Wandle Park (Colliers Wood) included a litterpick and nature trail in the park, with over 600 attendees. Our free-to-access outdoor areas continue to attract visitors, and family activities at our Saturday Clubs have included projects like bug hotel and plant pot making.

Page 20

POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

YEAR IN REVIEW (continued)

Environmental Sustainability (continued)

We participate in Love Wimbledon's business community and sustainability goals, helping to discover local ways to reduce, reuse and recycle in Wimbledon. We gave backstage tours during Love Wimbledon’s Sustainability September programme, highlighting sustainable improvements to the building. We have a travel strategy that promotes sustainable transport amongst staff and visitors, and local and sustainable procurement policy for the café and shop. Where possible we source office furniture and equipment through recycling companies such as Reyooz. Our print brochure is certified ‘Planet Positive’, certified carbon neutral, and printed by an eco-accredited factory on a carbon neutral press. We no longer print ‘free sheets’ for our shows and instead made them downloadable pdfs sent out to customers prior to performances, and ticketing is digital rather than printed. We have food waste recycling in our café and office kitchens. Whenever possible, materials and costumes from previous shows are reused, and clothes no longer likely to be used are taken to charity shops.

Our electric van is our key form of transporting sets between our workshop and the theatre, and all other local transport needs. During the year our 46 solar (PV) panels generated 31,553.4kWh, which is enough electricity to power about 29 average homes.

As noted above, we are continuing to improve the ‘old’ side of the building including the Main House. Improvements actioned this year include movement-activated and LED lighting in appropriate areas, and plans to replace the single-glazing in the dressing rooms are in place for summer 2024.

Organisational Resilience

Strongly controlled expenditure, prioritising marketing efforts to support sales, and robust fundraising continue to be vital to ensuring the financial sustainability of the company. Throughout the year we have reviewed all our supplier relationships, to ensure value for money and service, including moving external IT support provider in early 2023.

We employed over 240 staff, including over 139 freelancers. Of those paid workers 58% identified as female, 23% as male and 2% as non-binary; 17% identified as lesbian, gay, bisexual or queer; 35% identified as white British and 20% as non-white; and 9% identified as disabled, 15% as neurodivergent. We continued to support staff through training such as Access and Inclusion training, and Mental Health training for managers.

We continue to drive earned income through ancillary sales wherever appropriate, including via our café, shop and private hires. During the year just under 3,000 people came to 113 private hire events, we sold 28,561 hot drinks, and 1,330 books.

Page 21

POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

YEAR IN REVIEW (continued)

Organisational Resilience (continued)

Our Volunteering programme continues to support operations primarily in the Visitor Services team, ensuring the best possible welcome to Polka for our audiences and participants. Over 5,450 volunteer hours were contributed during the year through our formal volunteering programme by 112 volunteers, with many more hours contributed by informal volunteers. Our volunteers are a very diverse group, with 21% identifying as disabled, and 13% as neurodiverse. This continues to be an important programme in providing additional resource for the charity, but also to provide isolated members of the community with social activities, cementing Polka’s position as a community hub. In a survey of volunteers undertaken in October 2023, 90% said they enjoyed volunteering at Polka 'quite a lot' or 'very much', 95% said they learned new skills, 76% said they made new friends, 81% said they felt more connected to their community, 81% said it helped improve their mental health and 71% said it helped them feel less isolated.

During the year the theatre was victim to a scam attack resulting in loss of significant funds. At the date of signing the accounts over 60% of funds have been recovered. A sub-group of Board members, identified for their expertise and skill with finance and law, was appointed to oversee the response to the incident. We are working with our bank to recover in full the amounts taken and we will continue to pursue this through all routes available to us including the Financial Ombudsman as necessary. At this time, we are therefore not able to estimate the amount of the final loss of funds. A full internal review of the incident took place to identify areas where improvements could be made and actions taken to prevent similar future occurrences have included regular staff cyber-fraud training and awareness raising. The incident was also reported to the Charity Commission and through Action Fraud, and we continue to update the Charity Commission as appropriate. Due to adequate cash reserves, the impact of this event has not affected Polka’s ability to deliver operationally and it remains a going concern.

Fundraising Policy

We raise a limited percentage of our revenue funds from members of the public. We are registered with the Fundraising Regulator and all fundraising conducted on behalf of Polka, whether by committees, volunteers or staff, must comply with the Code of Fundraising Practice, Polka’s policies and all relevant legislation. No complaints were received in the year about fundraising practices.

Statement of Trustees’ Responsibilities

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

Page 22

POLKA CHILDREN’S THEATRE LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31st MARCH 2024

YEAR IN REVIEW (continued)

Statement of Trustees’ Responsibilities (continued)

Company law requires the Trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the company and of its surplus or deficit for that period. In doing so, the Trustees are required to:

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

In accordance with company law, as the company’s directors, we certify that:

AUDITOR

A resolution will be proposed at the Annual General Meeting that Buzzacott LLP be re-appointed as auditor to the company for the ensuing year.

This report was approved by the Trustees on 27[th] November 2024

Dominic Proctor, Chair

Page 23

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF

POLKA CHILDREN’S THEATRE LIMITED

Independent auditor’s report to the members of Polka Children’s Theatre Limited

Opinion

We have audited the financial statements of Polka Children’s Theatre (the ‘charitable company’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 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 other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report and financial statements. 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.

Page 24

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF

POLKA CHILDREN’S THEATRE LIMITED

Other information (continued)

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 charitable 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:

Responsibilities of Trustees

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

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

Page 25

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF

POLKA CHILDREN’S THEATRE LIMITED

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 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.

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:

We assessed the susceptibility of the charitable company’s accounts 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:

Page 26

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF

POLKA CHILDREN’S THEATRE LIMITED

Auditor’s responsibilities for the audit of the financial statements (continued)

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 noncompliance 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 available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. 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. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

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

Date: 28 November 2024

Page 27

POLKA CHILDREN’S THEATRE LIMITED STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31st MARCH 2024

Notes
INCOME FROM
Grants and donations
2
Charitable activities
3
Investment income
4
Total Income
EXPENDITURE ON
Raising funds
5
Charitable activities
Operation of theatre and related activities
5
Building redevelopment project
Exceptional items
23
Total Expenditure
Net (Expenditure) / Income
Transfers between funds
17
Net movement in funds
Balance at 1st April 2023
Balance at 31st March 2024		 Unrestricted
Funds
Restricted
Funds
Total
2024
Total
2023
£
£
£
£
805,752
478,290
1,284,042
1,280,572
1,709,424
-
1,709,424
1,352,692
16,334
-
16,334
3,298
2,531,510
478,290
3,009,800
2,636,562
148,901
-
148,901
140,180
-
2,243,570
707,528
2,951,098
2,806,516
-
-
-
26,996
103,254
-
103,254
-
2,495,725
707,528
3,203,252
2,973,692
35,785
(229,238)
(193,453)
(337,130)
342
(342)
-
-
36,127
(229,580)
(193,453)
(337,130)
2,142,282
7,819,396
9,961,678
10,298,808
2,178,409
7,589,816
9,768,225
9,961,678

All income and expenditure is derived from continuing activities.

The statements of financial activities includes all gains and losses recognised during the year.

Page 28

POLKA CHILDREN’S THEATRE LIMITED

BALANCE SHEET

AS AT 31st MARCH 2024

Notes
FIXED ASSETS
Tangible Assets
9
CURRENT ASSETS
Stock
10
Debtors
11
Cash at bank and in
hand
CREDITORS:
Amounts falling due
within one year
12
NET CURRENT
ASSETS
Total assets less
current liabilities
CREDITORS:
amounts falling due
after more than one
year
13
THE FUNDS OF THE
CHARITY
Unrestricted
General Fund
14
Revaluation Reserve
15
Designated Reserves
16
Restricted
Capital Project Fund
17
Other Restricted Funds
17		 2024
£
£
8,691,242
15,226
529,665
921,363
1,466,254
(358,932)
1,107,322
9,798,564
(30,339)
9,768,225
688,701
1,026,135
463,573
2,178,409
7,117,983
471,833
9,768,225		 2024
£
£
8,691,242
15,226
529,665
921,363
1,466,254
(358,932)
1,107,322
9,798,564
(30,339)
9,768,225
688,701
1,026,135
463,573
2,178,409
7,117,983
471,833
9,768,225		 2023
£
£
8,942,039
6,854
290,306
1,290,278
1,587,438
(501,259)
1,086,179
10,028,218
(66,540)
9,961,678
657,862
1,044,524
439,896
2,142,282
7,436,871
382,525
9,961,678		 2023
£
£
8,942,039
6,854
290,306
1,290,278
1,587,438
(501,259)
1,086,179
10,028,218
(66,540)
9,961,678
657,862
1,044,524
439,896
2,142,282
7,436,871
382,525
9,961,678
1,466,254
(358,932)		 1,587,438
(501,259)
9,798,564
(30,339)		 10,028,218
(66,540)
9,768,225 9,961,678
688,701
1,026,135
463,573		 657,862
1,044,524
439,896
2,178,409
7,117,983
471,833		 2,142,282
7,436,871
382,525
9,768,225 9,961,678

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard 102.

The financial statements were approved by the Board of Directors on 27[th] November 2024 and signed on their behalf by:

Dominic Proctor, Chair

Company Number: 00938592

Page 29

POLKA CHILDREN’S THEATRE LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31st MARCH 2024

OPERATING ACTIVITIES
Net income for the reporting period
Depreciation charge
Interest payable
Investment income
(Increase) in debtors
(Decrease) increase in creditors
(Increase) in stock
Net cash (used in) operating activities
INVESTING ACTIVITIES
Purchase of assets
Investment income
Net cash (used in) investing activities
FINANCING ACTIVITIES
Interest payable
Loan repayment
CBILS loan
Cash flows from financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting
period
Cash and cash equivalents at the end of the reporting
period
Analysis of cash and cash equivalents:
Cash in hand		 2024
£
(193,453)
370,248
6,440
(16,334)
(239,359)
(142,327)
(8,372)
(223,157)
(119,451)
16,334
(103,117)
(6,440)
(36,201)
-
(42,641)
(368,915)
1,290,278
921,363
2024
£
921,363
921,363		 2023
£
(337,130)
360,958
5,543
(3,298)
(171,413)
79,397
(1,969)
(67,912)
(62,414)
3,298
(59,116)
(5,543)
(39,814)
(225,014)
(270,371)
(397,399)
1,687,677
1,290,278
2023
1,290,278
1,290,278

Page 30

POLKA CHILDREN’S THEATRE LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31st MARCH 2024

Reconciliation of changes in net debt:

2023
£		 Cash Flows
£		 Other Non-
cash
movements
£		 2024
£
Cash and cash equivalents
Cash at bank and in hand
Borrowings
Mortgage due within one year
Mortgage due after more than one year
Total cash and cash equivalents		 1,290,278 (368,915) - 921,363
1,290,278
(35,201)
(66,540)		 (368,915)
29,761
-		 -
(29,761)
36,201		 921,363
(35,201)
(30,339)
(101,741) 29,761 6,440 (65,540)
1,188,537 (339,154) 6,440 855,823

Page 31

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

1. ACCOUNTING POLICIES

Accounting Convention

The financial statements have been prepared in accordance with the Charities SORP (FRS102), with the Companies Act 2006, and with applicable Accounting Standards. They have been prepared under the historical cost convention and in accordance with FRS 102. The charity is a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest pound.

The principal accounting policies adopted in the preparation of the financial statements are set out below.

Going concern

The Trustees have considered the requirement that the financial statements should be prepared on a going concern basis. They have discussed the potential impact of shorter and longer term trends, such as ongoing cost of living issues, on the charity’s operations in 2024-25 and beyond. They have concluded that it is appropriate that the financial statements be prepared on a going concern basis.

Risks continue to be managed through risk assessments and scenario planning as new external and internal factors arise. The 2024-25 budget includes conservative estimates on box office income. The 2025-26 forecast is based on a small surplus, and includes plans for use of the designated legacy donation. The charity has on-going support from its funders, with significant grants secured focused on supporting core operations, including Arts Council England NPO status to 2026. As at the end of August 2024, the charity has secured approximately 41% of its budgeted revenue target for voluntary income or donations in 2024-25.

Taking into account the above, as well as the charity’s cost base and reserves position at 31st March 2024 and having looked at least 12 months from the date of signing these accounts, the Trustees have concluded that there are no material uncertainties about the charitable company's ability to continue as a going concern.

Page 32

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

1. ACCOUNTING POLICIES (continued)

Income

Income represents monies received from grants and donations, from the productions staged in the theatre, or on tour, from Creative Learning activities, miscellaneous items effected through the theatre’s ancillary operations and net fees receivable from productions after deducting percentages withheld by theatres. Income is deferred when admission fees are received in advance of the performances to which they relate.

Income from donations and grants is accounted for when the charity is entitled to the income, the receipt is probable and the amount can be estimated with reasonable certainty.

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

Income from charitable activities represents the total value of box office income, royalties from transfers and tours and other ancillary income received by the group from customers during the year, excluding value added tax.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. The majority of costs are directly attributable to specific activities. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources and estimated amounts attributable to that activity in the year. The classification between activities is as follows:

Expenditure on raising funds includes all expenditure on fundraising events, corporate activities, and an allocation of staff costs.

Expenditure on charitable activities includes the production and administrative costs of the operation of the theatre and the production of plays, including depreciation on related assets.

Pre production costs are expended in the year they are incurred, tracked by production.

Allocation of support and governance costs

The majority of costs are directly attributable to specific activities. Office costs and property-related costs, which cannot be directly attributed to particular activities, are apportioned consistent with the use of resources. Governance costs are those incurred in connection with compliance with constitutional and statutory requirements.

Page 33

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH 2024

1. ACCOUNTING POLICIES (continued)

Building Redevelopment Project

The Building Redevelopment Project costs comprises all expenditure relating to the redevelopment of the Theatre which began in spring 2019 and completed in 2021/22, which includes the costs of constructing the redeveloped theatre and related professional fees, as well as fundraising costs and any expenditure relating to the temporary closure of Polka Theatre. The costs which are directly attributable to the construction of the redeveloped theatre have been capitalised in accordance with FRS 102 in the year and all other project costs are written off when they are expended.

Tangible Fixed Assets

Tangible fixed assets with an economic life of more than one year are capitalised if their cost exceeds £1,000.

The freehold and leasehold buildings were revalued at £1,575,000 in the 2014 year, with the uplift in value being credited to the revaluation reserve. This was undertaken as allowed under the transition to FRS 102 with the revalued amount being treated as deemed cost from this point. The additional depreciation charge that results from this uplift in valuation is set against the revaluation fund each year.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost of each asset evenly over its expected useful life. The annual rates used, which are applied on a straight line basis, are currently as follows:

Freehold buildings and long term leasehold 50 years
Plant and machinery 10 years
Building redevelopment project:
Core building 50 years
Plant and machinery 15 – 20 years
Fixtures and fittings 5 – 10 years
Theatre Equipment 3 – 15 years
IT Equipment 3 years

Stocks

Stock is valued at the lower of cost and net realisable value.

Debtors

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

Page 34

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

1. ACCOUNTING POLICIES (continued)

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

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.

Financial instruments

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

The charity only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Pensions

All eligible and entitled workers for the company are able to participate in its registered auto-enrolment pension scheme operated by NOW Pensions. This scheme is open to any employee over 16 who has been with the company for at least 3 months and earns above the relevant earnings threshold. The company currently offers an employer’s contribution of 3% of the employee’s gross earnings, rising to 4% after one year of employment.

Theatre Tax Relief

Theatre Tax Relief (TTR) is taken into account when the amount recoverable can be reasonably estimated and the receipt is probable.

Taxation

Polka Theatre is a registered charity and therefore not liable to income tax or corporation tax on income derived from its charitable activities, as it falls with the various exemptions available to registered charities.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged on a straight line basis over the period of the lease.

Page 35

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

1. ACCOUNTING POLICIES (continued)

Fund accounting

The reserves of the charity are as follows:

Restricted funds comprise monies set aside for particular projects or purposes in accordance with the instructions of the grantor.

Designated funds are monies set aside of unrestricted general funds and designated for specific purposes by the trustees.

General funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charity’s charitable objects.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the members of the executive management to make significant judgements and estimates.

The items in the financial statements where these judgements and estimates have been made include:

2. GRANTS AND DONATIONS

Polka continues to be part of Arts Council England’s National Portfolio Organisations – with a renewed funding agreement for 2023-26 confirmed. We continued to build corporate support through sponsorship of events and corporate giving, and we continued to receive project and core support from a wide range of trusts and foundations.

Grants
Arts Council England, London Revenue grant
London Borough of Merton
Other grants
Sponsorship and Donations
CAPITAL
Individual Giving
FP Families
Sub-total		 Unrestricted
Restricted
Total 2024
£
£
£
580,711
-
580,711
39,784
-
39,784
323
44,388
44,711
620,818
44,388
665,206
-
8,535
8,535
-
10
10
-
8,545
8,545

Page 36

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

2. GRANTS AND DONATIONS (continued)

REVENUE
Core
- The Starkie Bence Charitable Trust
- The Vernon N Ely Charitable Settlement
- MFS
- J P Foundation
- Arts Generation Company Ltd
- The Big Give Trust
- Others
Access
- The Calleva Foundation
- The Childhood Trust
- Ovingdean Hall Foundation
- Wimbledon Homes
- Others
Creative Learning & Freefalling
- Icon Solutions
- The Charles Skey Charitable Trust
- Wimbledon Offices Ltd
- Clarion Futures
- The Arts Society Wimbledon
- Frazer Trust
- The Dorus Trust
- Others
Volunteer Programme
- Anonymous
Building Improvement Fund
- The Wimbledon Foundation
- Backstage Trust
- Equity Charitable Trust
Artist Development
- Cockayne – Grants for the Arts: a donor advised fund
held at The London Community Foundation
Curtain Up!
- Ernest Hecht Charitable Foundation
- The Doris Pacey Charitable Foundation
- The Greenslade Family Foundation
- Alf and Hilda Leivers Charity Trust
- The Topinambour Trust
- Others
Write Here Write Now
- L&Q Foundation
- Others
Take Your Seats
- BBC Children In Need
- The Weinstock Fund
- The Hugo Halkes Charitable Trust
- Clarion Futures
- The Greenslade Family Foundation
- Wimbledon District Nursing & Midwifery Benevolent
Society
Sub-total
Total Sponsorship and donations
Total		 Unrestricted
Restricted
Total 2024
£
£
£
72,100
-
72,100
10,000
-
10,000
10,000
-
10,000
5,000
-
5,000
2,500
-
2,500
1,000
-
1,000
84,334
-
84,334
-
44,000
44,000
-
7,500
7,500
-
3,500
3,500
-
3,000
3,000
-
79,293
79,293
-
12,000
12,000
-
10,000
10,000
-
6,000
6,000
-
5,000
5,000
-
2,055
2,055
-
2,000
2,000
-
2,000
2,000
-
1,010
1,010
-
2,000
2,000
-
50,000
50,000
-
25,000
25,000
-
2,000
2,000
-
15,000
15,000
-
27,500
27,500
-
25,000
25,000
-
50,000
50,000
-
2,500
2,500
-
2,500
2,500
-
6,024
6,024
-
1,000
1,000
-
16,900
16,900
-
10,000
10,000
-
5,000
5,000
-
4,000
4,000
-
2,075
2,075
-
1,000
1,000
-
500
500
184,934
425,357
610,291
184,934
433,902
618,836
805,752
478,290
1,284,042

Page 37

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

2. GRANTS AND DONATIONS (continued)

Grants
Arts Council England, London Revenue grant
London Borough of Merton
HMRC Kickstart programme
Other grants
Sponsorship and Donations
CAPITAL
Future Polka
Individual Giving
FP Families
FP Founders
Sub-total		 Unrestricted
Restricted
Total 2023
£
£
£
580,711
-
580,711
22,500
-
22,500
12,948
-
12,948
-
24,687
24,687
616,159
24,687
640,846
-
7,459
7,459
-
10,250
10,250
-
958
958
-
4,821
4,821
-
23,488
23,488

Page 38

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

2. GRANTS AND DONATIONS (continued)

REVENUE
Corporate donations
Corporate sponsorships
Events
Individuals
Icon Solutions
Lendscape
MFS
J P Foundation
The Calleva Foundation
Wimbledon District Nursing & Midwifery Benevolent
Society
The Carmela & Ronnie Pignatelli Foundation
The Patricia Routledge Foundation
Tesco Community Grants
Co-op Local Community Fund
Chan Yin Chuen Memorial Charitable Foundation
The Vernon N Ely Charitable Settlement
Frazer Trust
Charlotte Bonham-Carter Charitable Trust
The Royal Victoria Hall Foundation
The Wolfson Foundation
The Charles Skey Charitable Trust
Wimbledon Offices Ltd
Clarion Housing Group
Eleanor Rathbone Charitable Trust
The Peter Stebbings Memorial Charity
The Dorus Trust
Ernest Hecht Charitable Foundation
Christina Smith Foundation
Alf and Hilda Leivers Charity Trust
Backstage Trust
Morr & Co
Unity Theatre Trust
The Barbara Whatmore Charitable Trust
The John Thaw Foundation
The Childhood Trust
The Topinambour Trust
Paul Hamlyn Foundation
L&Q Foundation
The John Horseman Trust
BBC Children In Need
Banham Foundation Limited
The Taylor Family Foundation
The Hugo Halkes Charitable Trust
Others
Sub-total
Total Sponsorship and donations
Total		 Unrestricted
Restricted
Total 2023
£
£
£
13,011
6,000
19,011
3,600
-
3,600
2,195
20,915
23,110
86,117
-
86,117
-
12,000
12,000
-
7,270
7,270
5,000
-
5,000
3,000
-
3,000
-
42,000
42,000
-
4,270
4,270
-
2,500
2,500
-
2,000
2,000
-
1,125
1,125
-
1,432
1,432
100,000
-
100,000
10,000
-
10,000
2,000
-
2,000
2,000
-
2,000
-
1,500
1,500
-
45,000
45,000
-
10,000
10,000
-
5,000
5,000
-
5,000
5,000
-
3,000
3,000
-
2,500
2,500
-
1,000
1,000
-
25,000
25,000
-
12,000
12,000
-
2,000
2,000
-
5,000
5,000
-
2,500
2,500
-
600
600
-
3,000
3,000
-
1,000
1,000
-
7,500
7,500
-
2,500
2,500
-
52,000
52,000
-
6,500
6,500
-
5,000
5,000
-
10,000
10,000
-
6,000
6,000
-
7,500
7,500
-
4,000
4,000
7,391
57,312
64,703
234,314
381,924
616,238
234,314
405,412
639,726
850,473
430,099
1,280,572

Page 39

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

3. INCOME FROM CHARITABLE ACTIVITIES

Consultancy
Box Office
Creative Learning
Royalties, touring and co-production fees
Merchandising
Café and shop
Lettings and hires
Theatre tax relief		 2024
£
-
1,005,060
128,114
86,038
43,194
238,342
62,934
145,742
1,709,424		 2023
£
100
805,710
136,420
4,680
42,130
214,794
49,567
99,291
1,352,692

4. INVESTMENT INCOME

Bank interest received
5. EXPENDITURE
Raising Funds
Salaries and wages
Sponsorship and events
Charitable Activities (including support costs)
Operation of a theatre and related activities
Actors, production and Creative Learning costs
Box Office Administration costs
Café and shop costs
Direct Costs
Project costs
Central and premises costs
Depreciation
Marketing
Governance costs (see below)
Governance costs
Salaries and Wages
Audit and accountancy
Office costs		 2024
£
16,334
16,334
2024
£
132,124
16,777
148,901
2024
£
1,021,960
101,054
222,963
542,794
499
256,234
370,248
246,862
188,484
2,951,098
132,464
40,071
15,948
188,484		 2023
£
3,298
3,298
2023
£
122,781
17,399
140,180
2023
£
855,165
110,308
206,924
537,192
29,352
290,419
360,958
252,592
163,606
2,806,516
124,481
17,385
21,740
163,606

Page 40

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

5. EXPENDITURE(continued)
Support costs
Salaries and Wages
Central and premises costs
Depreciation
Marketing
Audit and Accountancy
Office Costs
Project costs
6. NET INCOME/EXPENDITURE
This is stated after charging:
Lease payments
Depreciation of owned fixed assets
Auditors’ remuneration:
-
Current year statutory audit
-
Prior year statutory audit
-
Other services
7. STAFF COSTS
Wages and Salaries
Pension Contributions
Social Security Costs		 2024
£
132,464
256,234
370,248
246,862
40,071
15,948
499
1,062,326
2024
£
44,000
370,248
18,500
8,250
5,085
2024
£
1,069,521
32,462
84,070
1,186,053		 2023
£
124,481
290,419
360,958
252,594
17,385
21,741
29,352
1,096,930
2023
£
44,000
360,958
14,000
1,675
-
2023
£
980,692
25,708
80,935
1,087,335

No employee earned more than £60,000 per annum (2023: none).

No members of the Board of Directors received any remuneration during the year for executive services. The Board members were not paid or reimbursed for expenses during the year.

The cost of employment of Key Management Personnel amounted to £118,497 (2023: £120,800). Key Management Personnel comprise the Joint Chief Executives.

Page 41

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

7. STAFF COSTS (continued)

Average number of employees during the year
(full time equivalent basis)
Senior Management Personnel
Directors and performers
Sales, administration and others		 2024
No.
2
7
26
35		 2023
No.
2
6
25
33

The average number of employees (headcount) during the year was 37 (2023: 36).

8. INTEREST PAYABLE

Mortgage loan interest
CBILS loan interest		 2024
2023
£
£
6,440
5,543
-
2,590
6,440
8,133

9. TANGIBLE FIXED ASSETS

Cost
At 1 April 2023
Additions
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
Disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Freehold
land and
buildings
Short
leasehold
land and
buildings
£
£
1,050,000
950,000
-
-
-
-		 Leasehold
Improve-
ments
19,113
24,327
-		 Building Re-
development
Project
7,691,781
95,124
-		 Plant and
Machinery
Total
£
£
219,088
9,929,982
-
119,451
(183,089)
(183,089)
1,050,000
950,000		 43,440 7,786,905 35,999
9,866,344
125,958
171,000
21,000
19,000
-
-		 1,962
2,815
-		 504,434
323,833
-		 184,589
987,943
3,600
370,248
(183,089)
(183,089)
146,958
190,000		 4,777 828,267 5,100
**1,175,102 **
903,042
760,000		 38,663 6,958,638 30,899
8,691,242
924,042
779,000		 17,151 7,187,347 34,499
8,942,039

10. STOCKS

Books
Café
Shop		 2024
£
5,688
2,768
6,770
15,226		 2023
£
2,447
2,343
2,064
6,854

Page 42

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

11. DEBTORS

EBTORS
Trade debtors
Prepayments and accrued income
Other debtors		 2024
£
46,098
483,464
103
529,665		 2023
£
37,121
251,635
1,550
290,306

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Mortgage loan (secured)
Other taxes and social security costs
Other creditors
Deferred income
Balance at 1 April
Deferred income released in the year
Resources deferred in the year
Deferred income at 31 March		 2024
£
35,201
23,968
299,763
358,932
188,542
(188,542)
148,508
148,508		 2023
£
35,201
21,171
444,887
501,259
96,819
(96,819)
188,542
188,542

Included within deferred income is an amount of £125,467 (2023 - £148,763) relating to ticket sales received in advance for productions that will take place in 2024/25.

13. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR

Mortgage loan (secured)
Repayable between one and five years		 2024
£
30,339
30,339
30,339
30,339		 2023
£
66,540
66,540
66,540
66,540

The charity has a loan from Barclays, the capital value of which was £208,000 prior to any repayment. The loan is secured by a legal charge over 244, 246 and 248 The Broadway and over 252 and Land at Back of 254 The Broadway. The loan is for a term of 20 years, from 7 December 2007 to 7 December 2027. Interest on the loan is charged at 2.5% per annum over the Bank of England’s base rate. Repayment shall be made in monthly instalments of £1,830.36.

The charity has a loan from Barclays, the capital value of which was £230,000 prior to any repayment. The loan is secured by a legal charge over 244, 246 and 248 The Broadway, over 252 and Land at Back of 254 The Broadway, and over 250/252 The Broadway. The loan is for a term of 15 years, from 12 November 2010 to 12 November 2025. Interest on the loan is charged at 4.29% per annum fixed for 5 years from the date of draw down. At the end of 5 years, interest is charged at 2.54% per annum over the Bank of England’s base rate. Repayment shall be made in monthly instalments of £1,742.14 decreasing to £1,637.72 after five years.

Page 43

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

14. GENERAL FUND

Unrestricted funds
Unrestricted funds		 At 1 April
Income
Expenditure
Transfers At 31 March
2023
2024
£
£
£
£
£
657,862
2,429,410
(2,398,913)
342
688,701
At 1 April
Income
Expenditure
Transfers At 31 March
2022
2023
£
£
£
£
£
633,520
2,106,472
(2,082,130)
-
657,862

15. REVALUATION RESERVE

The freehold and leasehold buildings were revalued at £1,575,000 in the 2014 year, with the uplift in value being credited to the revaluation reserve. This was undertaken as allowed under the transition to FRS102 with the revalued amount being treated as deemed cost from this point. The additional depreciation charge that results from this uplift in valuation is set against this fund each year.

Revaluation reserve
Revaluation reserve
ESIGNATED RESERVES
Equipment
Capital project
Flat Redevelopment fund
Anne Ross Legacy fund
Chan Yin Chuen Memorial
Charitable Foundation		 At 1 April
Income Expenditure
Transfers At 31 March
2023
2024
£
£
£
£
£
1,044,524
-
(18,389)
-
1,026,135
At 1 April
Income
Expenditure
Transfers At 31 March
2022
2023
£
£
£
£
£
1,062,913
-
(18,389)
-
1,044,524
At 1 April
Income Expenditure
Transfers At 31 March
2023
2024
£
£
£
£
£
20,536
-
(3,423)
-
17,113
234,992
-
-
-
234,992
-
30,000
-
30,000
109,368
72,100
-
-
181,468
75,000
-
(75,000)
-
-
439,896
102,100
(78,423)
-
463,573

16. DESIGNATED RESERVES

The Equipment fund incorporates funds raised which depreciate against the life of the equipment.

The Capital Project fund and Flat Redevelopment Fund are General Funds designated by the Trustees for use on the building redevelopment and flat redevelopment respectively.

The Anne Ross Legacy fund was created following receipt of a one-off legacy and will be used to support creation of productions during the period 2024-25 and 2025-26.

Page 44

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

16. DESIGNATED RESERVES (continued)

The Chan Yin Chuen Memorial Charitable Foundation fund was set up following a donation by this supporter towards general running costs across calendar year 2024.

Equipment
Capital project
Anne Ross Legacy fund
Chan Yin Chuen Memorial
Charitable Foundation		 At 1 April
Income Expenditure
Transfers At 31 March
2022
2023
£
£
£
£
£
23,959
-
(3,423)
-
20,536
234,992
-
-
-
234,992
209,368
-
(100,000)
-
109,368
-
100,000
(25,000)
-
75,000
468,319
100,000
(128,423)
-
439,896

17. RESTRICTED FUNDS

CAPITAL PROJECT FUND
Theatre Redevelopment
Fund
This comprises:
Capitalised costs
Unspent funds
OTHER RESTRICTED
FUNDS
Original Theatre Fund
Write Here, Write Now
Freefalling
Access
Curtain Up!
Take Your Seats
Vehicle Fund
Building Improvements
Fund
Mapping
Playwriting Award
Volunteer Programme
TOTAL		 At 1 April
Income
Expenditure
Transfers At 31 March
2023
2024
£
£
£
£
£
7,436,871
8,545
(327,433)
-
7,117,983
7,436,871
8,545
(327,433)
-
7,117,983
7,187,348
-
(323,833)
95,124
6,958,639
249,523
8,545
(3,600)
(95,124)
159,344
7,436,871
8,545
(327,433)
-
7,117,983
At 1 April
Income Expenditure
Transfers At 31 March
2023
2024
£
£
£
£
£
233,786
-
(8,975)
-
224,811
26,000
17,900
(26,000)
-
17,900
27,990
40,065
(41,055)
-
27,000
11,250
137,293
(126,043)
-
22,500
23,000
113,524
(107,524)
-
29,000
17,000
22,575
(19,575)
-
20,000
34,499
(3,600)
-
30,899
9,000
76,923
(858)
(342)
84,723
-
44,465
(44,465)
-
-
-
15,000
-
-
15,000
-
2,000
(2,000)
-
-
382,525
469,745
(380,095)
(342)
471,833
7,819,396
478,290
(707,528)
(342)
7,589,816

Page 45

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

17. RESTRICTED FUNDS (continued)

Theatre Redevelopment For use during the Future Polka redevelopment project, begun in 2019 Fund and completed in 2021/22.

Original Theatre Fund

Vehicle Fund

Building Improvement Fund

Relating to the original building project to create the theatre in 1979.

For use against the depreciating cost of the Polka van.

For use against improvements to all parts of the building.

Volunteer Programme For use against Polka’s formal volunteering programme.

Restricted project funds:

Write Here Write Now

Freefalling

Access

RED

Curtain Up!

Take Your Seats

Restricted funds that are for specific projects delivered by the Creative Learning and Producing departments, to which restricted funds received in advance of the activities taking place are assigned. These funds change annually according to the theatre’s project programming, and may be one-off short-term or ongoing annual projects.

Mapping

Playwriting Award

CAPITAL PROJECT FUND
Theatre Redevelopment
Fund
This comprises:
Capitalised costs
Unspent funds		 At 1 April
Income
Expenditure
Transfers At 31 March
2022
2023
£
£
£
£
£
7,760,955
23,488
(347,572)
-
7,436,871
7,760,955
23,488
(347,572)
-
7,436,871
7,480,008
-
(319,076)
26,416
7,187,348
280,947
23,488
(28,496)
(26,416)
249,523
7,760,955
23,488
(347,572)
-
7,436,871

Page 46

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

17. RESTRICTED FUNDS (continued)

OTHER RESTRICTED
FUNDS
Original Theatre Fund
Write Here, Write Now
Freefalling
Access
RED
Curtain Up!
Choir
Take Your Seats
Core
Mapping
Vehicle Fund
Window Replacement Fund
TOTAL		 At 1 April
Income Expenditure
Transfers At 31 March
2022
2023
£
£
£
£
£
242,761
-
(8,975)
-
233,786
19,750
79,794
(73,544)
-
26,000
46,930
53,220
(72,160)
-
27,990
40,160
64,000
(92,910)
-
11,250
-
7,544
(7,544)
-
-
4,000
103,345
(84,345)
-
23,000
9,500
2,557
(12,057)
-
-
10,000
32,500
(25,500)
-
17,000
-
1,500
(1,500)
-
-
-
17,143
(17,143)
-
-
-
35,999
(1,500)
-
34,499
-
9,000
-
-
9,000
373,101
406,602
(397,178)
-
382,525
8,134,056
430,089
(744,751)
-
7,819,394

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2024
Unrestricted Funds
General Fund
Revaluation Reserve
Designated Funds
Restricted Funds
Capital Project Fund
Other Restricted Funds
2023
Unrestricted Funds
General Fund
Revaluation Reserve
Designated Funds
Restricted Funds
Capital Project Fund
Other Restricted Funds		 Fixed
Assets
Net
Current
Assets
Creditors
> 1 year
Total
£
£
£
£
217,522
501,518
(30,339)
688,701
1,026,135
-
-
1,026,135
17,113
446,460
-
463,573
6,958,639
159,344
-
7,117,983
471,833
-
-
471,833
8,691,242
1,107,322
(30,339)
9,768,225
Fixed
Assets
Net
Current
Assets
Creditors
> 1 year
Total
£
£
£
£
307,106
417,296
(66,540)
657,862
1,044,524
-
-
1,044,524
20,536
419,360
-
439,896
7,187,348
249,523
-
7,436,871
382,525
-
-
382,525
8,942,039
1,086,179
(66,540)
9,961,678

Page 47

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

19. FINANCIAL COMMITMENTS

At the year end, the charity had future minimum lease payments under operating leases as follows:

Land & Buildings
Due in less than 1 year
Due in between 2 and 5 years
Due in more than 5 years		 2024
£
44,000
92,219
-
136,219		 2023
£
44,000
136,340
-
180,340

20. LEGAL STATUS

The charity is a company limited by guarantee and has no share capital. The liability of each member in winding-up is limited to £1.

21. TAXATION

The company is a registered charity and no taxation liabilities arise from its charitable activities.

22. RELATED PARTIES

Trustees made donations in the year totalling £14,063 (2023: £14,104). Trustees pay the normal admission charge when they attend performances and other events.

During the year a payment of £4,800 was made to Apples and Snakes, of which Michael Lord is a common trustee, in relation to a visiting performance by the company.

There were no further related party transactions within the year.

23. EXCEPTIONAL ITEMS

This relates to the loss of funds as a result of the scam referred to on page 21 of the trustees’ report.

Page 48

POLKA CHILDREN’S THEATRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2024

24. COMPARATIVE FIGURES FOR THE STATEMENT OF FINANCIAL ACTIVITIES AS REQUIRED BY FRS 102

Notes
INCOME FROM
Grants and donations
2
Charitable activities
3
Investment income
4
Total Income
EXPENDITURE ON
Raising funds
5
Charitable activities
Operation of theatre and related activities
5
Building redevelopment project
Total Expenditure
Net (Expenditure) / Income
Transfers between funds
17
Net movement in funds
Balance at 1st April 2022
Balance at 31st March 2023		 Unrestricted
Funds
Restricted Funds
Total
2023
£
£
£
850,483
430,089
1,280,572
1,352,692
-
1,352,692
3,298
-
3,298
2,206,473
430,089
2,636,562
140,180
-
140,180
2,088,763
717,753
2,806,516
-
26,996
26,996
2,228,943
744,749
2,973,692
(22,470)
(314,660)
(337,130)
-
-
-
(22,470)
(314,660)
(337,130)
2,164,752
8,134,056
10,298,808
2,142,282
7,819,396
9,961,678