Registered number.. 978279 Charity number.. 261430 WATERMILL THEATRE LIMITED (A company limited by guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 WATERMIiL THEATRE UMITED (A company IlmSted by guarantee} CONTENTS Page Referen￿ and administrative detai15 of the Charity, itsTrustees and advisers Chairman's statement Trustees, report 3-19 Trustees, responsibilities statement 20 Independent auditorfs report on the finanaal statements 21-24 Consolidated statement of financial activities 25-26 Consolidated balan￿ sheet 27 Charity balance sheet 28 Consolloated statement of cash flows 29 Notes to the financial statements 30-46 WATERMILL THEATRE LIMtrED IA company limited by guarantee) REFERENCE AND ADMINISTRATIVE D￿Alls OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023 Trustees A G McKenzie Ichairl K Breathwick (Vice Chairl D W Grindrod H Williamson l M Wi(Idowson J Bunting M Whitlum Cooper S K Parsonage S Bansal TWen￿Orth B Chadder (appointed 2 April 20221 CTitley-Rawson (appointed 28 January 20231 D Powell lappointed 28 January 20231 Humby (appointed 28 January 20231 R Jahangard (appointed 28 January 20231 C P G Farrant Iresigned 24 September 20221 S Foster I￿548ned 24 September 20221 Company reglstered number 978279 Charlty reqlstered number 261430 Reglstered offke Bagnor Newbury Berkshire RG20 8AE Company secretary and Chief Executive Officer Paul Hart Key mana8ement personnel aaire Murray- Executive Dirertor aare Lindsay- General Manager Heidi Bird- Outreach Director Emma Bright- Marketing Director Kim Au5ten- Finance Direttor Independent auditor Wenn Townsend, 30 St Giles,, Oxford OXI 3LE Bankers Handelsbanken, Oxford Square. Newbury RG14 Sollclto Harbottle & Lewis LLP, Hanover Squa￿, London WIS IHP Page I WATERMILL THEATRE UMITED (A company Ilmited by guarantee) CHAIRMAN'S REPORT FOR THE YEAR ENDED 31 WIRCH 2023 The Chair presents his ststement for the year. Dealing with the continuing efferts of the pandemit- This year marked a retum to ftjll St￿ngth for The Watermill. New writing, actor musicianship and fresh adaptations of classic work were at the centre of our programme and we were delighted to welcome over S5,000 people to watch and participate acros5 the year. Despite acknowledging the value of the Watemiill's worl Arts Council England announced in November that The Watermill Theatre wouldn't continue to be fvnded as part of the National Portfolio. The value of the grant was £458k per annum. Set against a typical box office income of £1.3M. Upon receivingthe news of the cut, the Executive immediately re-shaped as much ofthe 23124 programme as possible to ensure that we could deliver on our charitable objective5, at the same time as reworking our business model for the future. Our focus for the future will be based on maximising the potential of our greatest assets. We have a well-establi5hed reputation for creating world-class theatre that can tour and transfer to reach audiences far beyond our corner of West Berkshire. We plan to invest in co-producing partnerships as a means of sh3rlng costs and increasin8 financial potential. We will also redouble our efforts to leverage the potential for shows to have a further life beyond our stage. We will strengthen our commercial offer, making a capltal investment in the spaces to svpport planned growth in our event hire, restaurant. and bar business. We have also reviewed ourfundraising ttrategy and will be focusing on developing new relationships with national trusts and foundations 3s well as reali5ing the potential for increased income from in(lividual donors. We remain an organisatlon that is committed to nvesting in talent, in celebratin& to exploring and reflecting the diversity of modern Britain and to understanding and meeting the needs of our communities and audiences by creating work with and for them. We also remain alert to playing our part in addressing the climate emergency and bringing this perspective to the way we make theatre and care for our unique site and historic bulldings.. We have been pleased to welcome four new trustees this year. bringing further diverse perspectives and enhancing ourexpertise in producin& fundraisin& finance. and community engagement. We have also welcomed new staff to key roles including a Marketing Director. Technic31 and Production Manager and will 500n have a new Development Dirertor in post. These appointments have given us an even strong team to work on the development of the strategic plan. We have continued to enjoy fantastic support from a range of trusts, foundations. sponsors, and donors. This SUPPOrt has been much appreciated in the aftermath of the Arts Council's decision and we look forward to building on these relationships in future years. Flnally. I'd like to say a heartfelt thanks to the EXec￿l¥e and to the whole team at The Watermill, to lan Widdowson. the Chair of the Friends, andto myfellow trustees, including those who have stepped down in this fhnancial year: Colin Farrant and Susan Foster. The work of all of these people has been sec ng a posityve result in a challenging year. en Chair Date.. Page 2 WATERMILL THEATRE LIMITED (A company Ilmlted by guarantee) TRUSTEES, IIEPORT FOR THE YEAR ENDED 31 MARCH 2023 The Trustees present their annual report together with the audited financial statements of the group and the charity for the year to 31 March 2023. The trustees have adopted the provisions of the Statement of Recommended Practice ISORPI -Accounting and Reporting by Charities" in preparing the annual report and financial statements of the charity. THE WATERMILL: WHO WE ARE AND WHAT WE DO The Charivs charitable objerts are to promote. rnaintain and improve and advance education part*cu13rly by the production of educational plays and the encouragement of the arts. Our mission is to nurture and develop emerging talent and to welcome everyone to enjoy the very best theatre, and all that it can offer.. theat￿ that is relevant and speaks to our times. Nestled on the banks of the river Lambourn, our converted Grade 11 listed rural watermill 15 home to a unique powerhouse of residential and artistic facilities which provide a crucible for creativity, innovative storytelling, and artistit excellence. Artists and creatives from the UK and beyond develop their craft with us, making work which bursts out of the building to tour across the UK, or transfer to the West End. The ￿aCh, quality and innovation of our productions is evidenced by a stron8 track record of co-produrtions with commercial and subsidÈsed companies, re5uftin8 in SO% of our productions being optioned for transfers and tours over the last 5 years. Our work is characterised by an enduring pursuit of artistic innovation and the weaving of actor- musicianship through new writing and reinvigorated classics. We create the environment for actors and creatives to take risks, we tell stories on stage which rellert diverse lived exPerien￿S and we discover new ways to connect our annual audien￿$ of 60.O¢J). with live theatre that truly resonates. With a core belief in the transformative power of the arts. we open up opportunities for people from lower socio-economic backgrounds, young families and i501ated or displaced communities to explore their own creativity. Our engagement programmes reath 20,(K)O people each year, in the theatre. schools and other community settings. We engage with those who are underrepresente*J, hard to reach, or at risk and we drive long temi impact for communities. In order to achieve our ststed aims and objectives wefocus on four areas: l. PrOdU￿d work Producing eight full-scale productions at our 201keat home in Newbury each year, with central ethos to commission, discover and amplify new voices to create work that excites audiences now and will become part of the theatrical canon in the future Remaining at the forefront of integrated and accessible live theatrtrmaking by embedding BSL, captionin& audio description and relaxed performar$￿5 into our homegrown and toured work Page 3 WATERMILL THEATRE UMITED (A company limited by guarantee) TRUSTEES, REPORT coKfD FOR THE YEAR ENDED 31 ￿RCH 2023 2. Artists Acting as an incubator of talent and the development of work, supporting artists and attors from historically underrepresented backgrounds to develop their craft anil innovate in the sector Connecting emerging artists and ueative5 Wlth experienced and highly skilled industry leader5 who can mentor and support their work 3. Outreach DeepenÈng engagement through strategic partnerships e.g. Educafe,. home of Diverse Ethnic Communities Support Agency, and Recovery in Mind, as we use our artistic programme as sprlngboard for Inspiring people to discovertheir own creativrty and lasting connettion to the arts Growingthe provision forfamilies and early yearswhilst sustaining a regular presence in local Schools through workshops, educational resources and touring. Giving parity within our artistic programme to the work of the next generation of theatre makers by showcasing the Youth Ensemble In an annual 2-week produttion run. enabling two young casts to bring a popular title to life on the Watermill stsge Building pathways to the creative industries by creattng over 100 volunteering and wo . experience opportunities, providing paid employment and work-based training to School leaver5. Prioritising local young people least engaged in culture and creating a positive irrtervention to address under-representation within oyr sectorfs workforce 4. Touring Building on our strong network of partners in the subsidiseil and commercial settors, we aim to make work that has a life beyond the Watern)ill stage Presenting our unique Watemiill Ensemble productions of Shakespe3re'5 works to reach audiences across the UK through tour and transfer, induding international reach Touring work to reach rural communities (including the 30% livtng In Wett Beikshire's most isolated communities) and to engage children and young people dirertly in their classrooms through our school's tours We monFtor and measure our success in delivering our aiTll5 and objettives throughout the year, includinÈ the use of customer, art15t and participantfeedback as a qualitative measure. We also report against KPIS in relation to audience numbers, attive participants. diversity across trustees, staff, artists and all audiences and participants, people reached through touring work. This data features in the annual accounts. Page 4 WATERMILL THEATRE UMrrED IA company Ilmlted by guarantee) TRUSTEES, REPORT coKfD FOR THE YEAR ENDED 31 MARCH 2023 ARTISTIC PROGRAMME 2022-23 saw an ambitious return to 3 full programme of attivity following year5 of disrupt*on from the pandemlc. Our programme showcased new writing mu5Ècals and plays - as well a5 a welcome return to bringing fresh adaptations of Shakespeare's work to our stage. Our stories and our companies reflected a diversity of perspectives, from OTHELLO'S searlng narrative in an adaptation alive to the Black ￿Ve$ Matter movement to THE SLEEPING SWORD performed by a majority visually impaired company and featuring integrate(I, creative captioning and audio description. Whilst the challenges of Covid remained in terms of illness affecting rehearsals and performances and audience confidence. we were heartened bythe response tothe work an(1 byoursuccess in reengaging previous bookers and with new audiences. We opened the yearwith OUR MAN IN HAVANA, a new musical adaptation of Graham Greene'5 novel. This wès originally scheduled for May 2020 and had proved popular whh audiences. most of whom transferred their booking to the new date5. Direrted by our Associate. Abigail Pickard Price with book and lyrics by Richard Hough and Music by Ben Moales Frost, the show achieved 87% capacity and positive contribution to the budget. We continued with Mark Evans, BLEAK EXPECTATIONS a new stsge adaptation of the popular Radio 4 comedy of the same name- a Dickensian spoof which ran for five series between 2007-12. Caroline Leslie IWIPERS TIMES and TRIAL BY LAUGHTER) diretted, and the show attracted a clutch of ex￿lIent review5for"8n adrenalised stage adaptation fille(J with fast-pa￿d physical comedy,joshing satire and oodles of silliness." (The Guardian). We produced the show in association with Anthology Theatre Productions Limited who have gone on to secure a further lrfe for the production in the West En(1 in 2023. Our rural tour was a new piece - CAMP ALBION - by Danielle Pearson, which explored the range of perspertives around the building of the Newbury bypass. The show toured to gardens, playing fields and car parks across Berkshire and surroundin8 counties before coming bado to the theatre for a two week run. The production surfaced many conversations on the building of the bypass as well a5 reflections on the environmental impart of the work. In summer, we brought WHISTLE DOWN ThE WINO to our stage, directed by Tom Jackson Greaves. The rehearsal process wa5 significantly impatted by covid infertions and duringthe run we had a week without either of our lead actors being fit to perfomi. Thankfully we were able to cover the lead role of Swallow from within the company and found an understudy for The Man at 24 hours, notice. The show was well received by audiences and media alike. -Outstonding" * * * ** The Guardian. Our production of OTHELLO brought Paul Hart and Anjali Mehra together as co-directors. Kalungi Ssebandeke played the title role. alongside Sophie Stone, a celebrated deaf actor who began performing as a member of our Youth Theatre, as lago. The production featured the Watermill's distinctive approach to the text and music. adapte(J by Karla Marie Sweet and featuring music from Billy Eilish. The Fugees and Emeli Sande. "An excellentcast unimote Korlo Moriesweeys udfjptotion with ¢7 drilled menoce. while contemporary songs are empk>yed to remorkoble effett." * * * * The Guardian Page 5 WATERMILL THEATRE UMITED IA company limited by ¥uarantse) TRUSTEES, REPORT CONfD FOR THE YEAR ENDED 31 MARCH 2023 There We￿ two Youth Ensemble productions within the year: A MONSTER CALLS in November diretted by our Communtty A%sociate AWarad Arnott Phillips. and THROUGH THE LOOKING GLASS in March, diretted by our Outreach Assistant, Matty G￿en. Each featuring a talented company of over 30 young people, with around 20% w0￿1n@ backstage or on delivering access se*vices inclL¢ding captioning and a￿di0 description. The productions attracted strong support from audiences and offered a rich and inclusive experience for everyone involved. In Novernber we staged Michael Morpurgo'5THE SLEEPING SWORD, a new adaptation written byTatty Hennessy which took to The Watermill stage before heading off on a week-long tour to schools. We welcomed five schools to the theatre and vistted five schools across the region with th55 creative exploration of visual impairment.The process of developing and making our first show with integrated creatNe captioning and audio description gave us an invaluable insi8ht into the process and the areas on which we should focLts as we continue to create work that is Inclusive and accessible to visually irnpaired audiences. "Honouring Morpurgo s original words, The sleeping Sword is o dett7iled explort7tion of whot it is like to live WAth o visuol impairment in o time of inoccesslbility. For children ond odult oudiences ulike, it IS oudociously creative." The Guardian ChTlStmas brought Annie Siddon< wonderful adaptation of RAPUNZEI to the Watermill Stage. Directed by Creattve Associate, Lucy Betts, this twist on a traditional tale brought over 12,000 people through Ouf doors- an in¢￿3$e on the prewous Chri5trnas which felt like a sign that the green shoots of recovery continued. -.should Rapuntel 05 retold in the Wotermill s thrilling house style be on everyone's Christmos show wish list? The onswerfrom me ond the enthusiustic young schools. oudience who shared thefvn with me is a resounding 'Oh yes itshouldl" Whatsonstage The New Year began with NOTES FROM A SMALL ISLAND. a witty adaptstlon of Bill Bryson's famous novel of the same name. directed by Paul Hart. This pro¥e(I to be a popular choice for audiences with attendance at 92% capacity- a posrtive end to the financial year. * * * * -0 thoroughty enjoyoble piece ol theotre thot can only bring new audiences to the writerfs work." The Stage Indus1¥ and Dlvers We tontinue to ensure that we are reflerting the diversity of the UK In our arting and creative tompanies. as well as in the stories we are sharing. Of the attors we employed this year: 47% were Female lincluding trans womenl148% in 211221 5% identified as deaf or disabled Il% in 211221 35% iilentified as Global Majority lon par with 211221 35% were 8raduates116% 21122} We undertook recruitment for 10 replacement pemianent roles in the stsff team as well as in open recruitment proce55 for new Trustees. Widening where we adverrised the roles, intluding a greater use of social media anil Dnkedln, supported us to attract a more diverse pool of applicants. Pa8e 6 WATERMILL THEATrE UMITED IA company limited by guarantee) TRUSTEES. REPORT coKfD FOR THE YEAR ENDED 31 MARCH 2023 The staff team is reflective of the demographic of the local community, and we en(Jeavour to ensure that we are inclusive of a much wider range of lived experience though our Trustees and our work wtth freelancers. Other work in this area intluded: Becoming a Disability Confident Employer. affirniing the practice and processes that are already in pla Providing Disabilty Equ31ity training for staff, freelance facilitators, and trustees in p05t in September 2022. This supported all of our teams to explore our working prartice and encouraged discussion and change to tontinuously improve our inclusivity and accessibilitv Continued use of the Theatre Casting Toolkit Tracker and our bespoke Creatives Tracker to manage and monitof the diversity of our companies Offering opportunities to e3rly career and diverse artists and staff by working with drama schools, working with Open Hire and Creative Access to reath a wider range of candidates Offering a rarlge of pricing optionsto support thosewith lower incomes, including ticket prices starting from only £10 Offering BSL lessons to staff and volunteers to support improved confidence and communication skills with deaf customers. partiClP3nts, and artists Broadened the diversity of the Board of Trustees in terms of gender, ethnicity. age, and disaljility. 20% identifya5 global majority, 27% identify as Dldeaf or disabled and 40% are aged between 20 3nd 49 years old Offering bursary places for Outreach programmes. specialist support for people with additional or complex needs and a fully inclLbsive Youth Ensemble experience bringing together all of the diverse youth theatre groups Developing partnerships and initiatives with organisations including Educafe, Dinglevs Promise, Mary Hare School, and Berkshire Mind Offering accessible performances across the full programme with 8 relaxed and 8 BSL interpreted, 27 audio described and 23 captioned performantes Audlen¢es Over the course of the 2022-23 financial year, we welcomed over 53.950 people to 366 perfomiances and events. This refietts the steady recovery of audience numbers post-pandemic. 4,441 new customers booked during this period. totalling 14.316 tickets over the year. 27% of those new bookers in 2022-23 booked for NOTES FROM A SMALL ISLAND Overall sales acmss the year have not recovered to pre-pandemic capacities, but several strong-selling productions exceeded targets and increased ticket prices and the introduttion of an additional price band mitigated some of the impart of the lower nltmbers of tickets sold The World Premiereof OUR MAN IN HAVAN& a new musical version, played to 8647 au(lien members, reaching 87% capacity Our rural tour CAMP ALBION played to 14 venues across Berkshire, Wiltshire. Hampshlre, and Oxfordshire. playing to 763 people Page 7 WATERMILL THEATRE UMITEO IA ¢ompany limlted by 8uararftee} TRUSTEES. REPORT CONfD FOR THE YEAR ENDED 31 MARCH 2023 WHISTLE DOWN THE WIND played to 9541 audience member$182% capacityl wtth lots of customers. who regularly book for the summer musical commenting that they had retumed this summer as part of their annual tradition. wtth previous summer music815 coming up very high in the crossover reports The early autumn sales period proved more challenging with OTHELLO and THE SLEEPING SWORD achieving lower than antiopated audience number5. OTHELLO played to an average audience of 113 157% of capacity) and THE SLEEPING SWORD 124 163%). We noted the challenge of attrarting schools to both of these productions We analysed our data to understand more about the audiences who had not returned to the theatre since the pandemic, which amounted to 7% of our usual annual attendance rate. We have developed a strategy to reengage those customers, recognising the irnportan￿ ol maintaining those established relationships Our Christmas production of RAPUNZEL exceeded tts financial target and played to an average audience of 168 178%). an increase in per-performance attendance compared to both THE JUNGLE BOOK172%1 and THE PRINCE AND THE PAUPER175%1 NOTES FROM A SMALL ISLAND reached 96% of saleable capacity and finished £60k above target. We IntrodU￿d social media advertising to this campaign which contributed to the 21% of new bookers to The Waterniill. We also introduced dynamic pricing, which increased revenue by over £IO,Il)O, and thi5 has now been rolled out across further productions The Youth Ensemble productions of. A MONSTER CALLS and THROUGH THE LOOKING GLASS were well attended and received very positive audien￿ feedback OUTREACH, LEARNING AND PARnCIPATION This year the Outreach department have had a focus on strengthenlng participation in our onsite attivities. We offered 230 opportuntties foryoung people to take part each week and we have further developed our early years, offer through our monthly outdoor sensory Story Adventures session. Having identified a decline in early years. attendance post COVID-19. we have aimed to increasefamily enBagemeftt. Numbers have steadifygrown, wtth our StoryAdventures session atfvll capacity. Moving fonvard, we are commttted to continue building this audience through larger scale family events such as our Duckling Day an(1 Wild Weekends. Our Youth Ensemble presented two produrtions in the year. The first, A MONsfER CALLS had its roots in physical theatre and tackled themes of bereavement and mental health. We worked closely with West Berkshire Mind to support the prO￿S5. providing the young people with resource5 to create a safe working environment. We had three young people who worked batkstage delivering the Captioning and audio description and 5UPPOrtin8 Stage management on this production. "If this cast representyoung British actingtalenL the future isvery bright for Brf(ish theatre" Audlence Member INovember 20221 We then advanced our approach to access with our spring Youth Ensemble production of THROUGH THE LOOKING GLASS which offered captionin& audio description, BSL integrated interpretation znd relaxed atmosphere on every performartce. This wonderfully imaginative and vibrant piece had 6 young people working backstage, including 2 young people preparing and delivering the captioned and audio described perfomiances. Followin8 the run of the produrtion we held a focus group with Page 8 WATERMILL THEATRE UMITED IA company Ilmlted by guarantsel TRUSTEES. REPORT CONfD FOR THE YEAR ENDED 31 MARCH 2023 the young people Involved to gather their thoughts and feedback to inforrn our planning moving forward. 'It's like another homelcommunity where I can explore different parts of myself and create new worlds and characters and make friends.. Youth Ensemble Participart (March 20231 Providing these opportunities for young people to be part of making work, alongside a professional creative team is somethingthat is highly valued by participants and something that we are committed to continuing to (leliver. This year we re-established one of our larger schools, projeLts Post COVID-19. The Excel performan involved over l(K) Primary aged children who rehearsed 3nil perfomied a new play, WHAT MAKES A TOWN, written by local secondary school students, explorin& and celebrating the history of Newbury. This production, supported by a professional team from The Watermill. wa5 performed at Trinity School in June. Recognising the lack of provision and stretch on existing resources for yo(tng people locally, we introduced two new weekly groups - Yes And is a theatre group for 8-11 years with autism and Stagecraft, a mindful visual art session for young people aged 11-17 with added complications in their lives. This gentle visual arts session was intrOdU￿d to specifically reach young people who, following the pandemic. have increased anxiety. or have become more disengaged. It is designed as a gentle re- introduction to our work to build connection, trust, and confidence. This group helps art as an introdurtory se55ion or springboard into our other provision. We have developed bespoke projects with partner organisations, reaching underserved communities. Opportunities have included. weekly drama sessions for locally housed Afghan younE refugees, monthly storytelling session5 for Educafe la local CIC for the benefrt of diverse communities) and weekly sensory storytelling sessions for Oinglevs Promise la local charTrty SUPPOrting under 5$ with special educational needs & disabilities, and their f3rniliesl. We also worked with the libraries service to take a produrtion of The Ugly Ducklin& by local writer and performer, Lizzie Lewis to 4 local libraries. This performance reached over 150 young people and adults and we are exploring ways we can continue to work wtth the service to continue to connect with young families in a community setting. Working in partnership with The Corn Exchange. we have launched our Careers in the Arts programme. This programme aimsto inspire and educate young people aged 14- 25 in West 8erkshire and North Hampshire about careers in the industry. This programme will also enable us to create traineeships in each organisation, offering an opportunity for several young people to develop thelr ski115 and experience with on the job training. Safeguardlng We work extensively with young people and vulnerable adults, and have clear procedure5 in place to safeguard our participants: Full-time Outreach staff, Designated Safeguarding OfFicers antl freelance facilitators are DBS checked IDisc105ure and Barring Servitel Staff working directty with young people on productions in backstage departments are D8S Checked Page 9 WATERMILL THEATRE UMITED (A company limrted by 8uarantee) TRUThES' REPORT CONfD FOR THE YEAR ENDED 31 MARCH 2023 Safeguarding Policy ts reviewed and updated regular￿ and is shared with all staff at the Watermill Our Outreach Director, Outreach Assistant and Community Associates have all completed Child and Vulnerable AdultSafeguard training. This knowledge and best practice 15 shared with all freelance fa￿litatOrS, full-time volunteer5, and acto[5, where necessary. They are also nformed about the Watem)ill's in-house safeguarding prO￿dureS Ffeel3nce Outreach Facilitators complete Wet Berkshire's online safeguardingtraining before commencing work in the department Concerns raised are documented and confidentially discussed byour designated Safeguarding Officer5, who takes any necessary action WORKFORCE Volunteers The Watermill Front of House team continues to welcome and asslst audiences during thelr visit to the theatre. The team is made up of a core of 3 paid members of staff and 70 volunteer ushers. No monetary amount has been included in the Group's vol¥Jntary income for the period to reflect the 'In klnd, support provi(Jed by volunteers. We are enormously grateful to all our Volunteers for their continued loyal support in this dFfficult year and how willing they have been to come back and 5UPPOrtthetheatre through these uncertain times. Staff Salary The Finan￿ and Audit Commtttee revlew and monttorthe overall payroll for permanent staff. Approval of any annual percentage increase is then required from the Board of Trustees The appropriatene55 anil relevance of the remuneration is kept under review with reference to comparisons with other charities ensurinB The Watermill remains sensitive to the broader issues of pay and employment conditions elsewhere In deciding pay increases, benthmarking from within the mid-scale theatre community is taken into consider3tlon. Remuneration of key management personnel is decided by the Finance and Audit Committee There is access to contributory pension scheme for all qualifying members of staff BECTU IBroadcastin& Entertainment, Communications and Theatre Unionl 15 the UK'S media aftd entertainment trade union. It repre5errtS Staff. contract and freelance workers who are based primarity in the United Kingilom negotiating pay, conditions, and contracts with employers. Although The Watemiill does not use BEcfu we ￿¢08n1St and pay in accordance with the rates set by the organisation. We a150 recognise Equity for actors and stage management freelancers. Despite the loss of Arts Council fundin& we alm to continue to use the sub-rep agreement for all of our contracts. Page 10 WATERMILL THEATRE UMITED (A company Ilmited by guarantee) TRUSTEES, REPORT CONfD FOR THE YEAR ENDED 31 MARCH 2023 Recruhment We have processe5 placeto support usto attrart a diverse range of candidate5.This includes non-theatre specific and specialist sites readi those who are least represented within the sertor. We are particularly keen to attrart people from a Global Majority background and those who identify as deaf or disabled and our fecruith)ent proce55es refiect this Our robust evaluation and reporting process includes an online equal opportunities form. This form is made available to oll job applicants and all freelancers (including stage management and outreach). We use thbs data to identify how diversity is tracked through the recruitment process and to monitor our success throughout the year BUILDING AND CAPITAL WORK The site and our buildings represent important assets which need ongoing inve#ment in their maintenance. Our Grade 11 listed theatre is unique 3nd at the ￿￿tre of our creative attivities, wSth accommodation, offices and a ￿Stallr3nt and bar being integral to our operations. Work this year included replacement of the main roof on the Mill House. We also commissioned and installed a new access bridge in the theatre as part of our ongoing review of health and safety around the site. We are eager to return to the long-term plans we initiated pre-pandemic to undertake capital improvement works and hope to do so once we have tinalised our business plan as a non-funded organisation. FUNDRAISING On the back of the news of the Ios5 of the Arts Council funding the Development Department generated £679k Igrossl1£502k 211221 for the theatre. Of this, £83k is restricted income and £106k (£500 211221 relates to legacy income. The Development Director left during the year. just priorto the news of the Arts Counal's decision to cut our funding for 2023-26. We took the opportunlty to review our fvndraising strategy with the support of a specialist consultancy. The recommendations from this review have been incorporated into our future business and financial planning. A new Development Director will join us in May 2023. During the course of the year, we ran two public-faciw match funded campaigns. In the first part of the year, we focused on nurturin8talent. attracting £27k in donations. In November, as a response to the news of our funding cut. we launched our Thrtve Campai￿ which generated £20k be￿een November and March. The Friend5 of The Watermill have remained strong supporters with membership representing an important part of our fundrai5ed income (membership has remained constant at around 1.460 Friends). A limited number of events have happened during 22123 including a successful Chrlstmas Fayre, which was realised with the combined work of our volunteer committee members and our in- house team. The Chaif of the Friends committee kindly extended their tenure due to an ongoing challenge in ftnding a 5Utcessor. combined with difficulty In attracting new committee members. Page 11 WATERMILL THEATRE UMITED IA company Ilmlted by guarantee) TRUSTEES. REPORTCONfD FOR THE YEAR ENDEO 31 MARCH 2023 The continued support of this artive team of volunteers is deeply app￿cIated by The Watermill. As we move forward into the new financial year. we a￿ reviewing how wework with the volunteers who make up the Friends committee, and how we fLtrther embed the Friends in the broader strategy for individual giving. We remain grateful for the continue(J generosity of our incredible supporters, from Trusts and Foundations to corporate partners. individual donors, ber￿factorS, an(1 Friends of The Watermill Theatre. Withoth this help. we would not be able to be $0 ambitious in our artistic vision or nurtu those at the beginning of their career or create hundreds of opportunitie5 for those in our community to take part in a range of outreach and education activities. The ￿sponSe we received to the news of our funding cut has been encouraging and we a￿ pleased to be going into the next financial year with a solid base from which we can grow. Ethlcal Policy & Due Dlligence The Watem)ill Theatre is committed to ensuring that its fvndraising activitles are carried out wlth the upmost integrity and takes account of the Charity Commission Code of Fundraising Practice. The Watermill Theatre is registered wtth the Fundraising Regulatorand works to its standards of charitable fundraising to ensure honesty and transparency with our donors, and that fundraising activities are legal, respectful, open, honest, and accountable to the public. No complaints were received in 202¥23. We ensure that all direct fijndraising activity is directed to those who have elected to ￿ceIve informatlon from us or people who would be considered to have a legitimate interest in supporting the theatre. Our strategy is focused on building personal relationships with individuals, businesses, Trusts, and Foundations who are engaged with our work. Relationships are managed by members of the fundraising team and executive with clear records kept of any contatt made with donor5. The Board of Trustees has overall reswnsibility for acting in the chariWs best interests, including reviewing fundraising agreements within the context of the ethTrcal fvndraising policy, in line with Charity CommtSSLon guidance. The day-to-day running of the business is delegated to the Chief Executive and delivered by the Executive Director and Managernefit Team. The responsibility to undertake all fundraising is a55igned to the Development Director. Due diligence in relation to our fundraising relatlonships is a standin8 agenda rtem at each meeting of the Board of Trustees. FINANCIAL REVIEW The consolidated statement of financial actNities show rncorne from charitable activities for the year was £1.9M 12021-22: £1.IM, pre-pandemic 2018-19.. £1.7MI. Total irscome for the year was £3.5M 12021-22.. £2.7M. pre-pandemic 2018-19: £3.2MI. Expenditure on charitable attivities in the year was £2.8M12021-22: £2.2M, prerypandemic 2018-19 £2.5MI and total expen(Jitureforthe yearwas £3.6M12021-22: £2.8M, prtrpandemic2018-19 £3.2MI Page 12 WATERMILL THEATRE UMITED (A company Ilmlted by 8uarantee) TRUSTEES. REPORT CONfD FOR THE YEAR ENDED 31 MARCH 2023 In 2022-23. the tharity entered the last year of a four*ear fvnding cyde from Arts Countil England as a National Portfollo Organi5ation. An application was made for fvnding for 2023-26 at the same level as the last cycle1£458k per annLbml bLrt was unsuccessful. Transition funding has been received for 2023-24 of £268k. Unrestrlcted Funds The Trustees report a surplusfor the year on unrestritxed funds of £18k. This result has enabled ¥J5 to retain our current level of reserves as we go into a potentially challenging few years with the loss of Arts Council Funding and continued cost of living crisis affecting prices and audience numbers. Watermill Theatre Producrions Limited is a subsidiary of Watermill Theatre Limff(ed Ithe charityl and Is commissioned the Trustees of the charity to produce and make artistic decisions about all its shows and to claim Theat￿ Tax Relief ITtRI on qualifying production costs. ThR provides the Waterm¥l1 with a significant repayable credit each year which has enabled and continues to enable more investment in the direct cost of our productions. This has been especially valuable in supporting our actors, creatives aftd others working on our shows- the people that were so badly affetted by the impact of the Covid pandemic. During 2022123 the amount of ThR receivable has increased to £410k12021-22: £158kl. This increase is due in part to a full year of activity compared to last year but mostly to the temporary increase in the recovery rate from 20% to 45%. It is very positive news for us and our industry that the enhanced % recovery rate on core costs has now been eKtended to the end of 2024125. The Watermill's charitable artivities are made up of i￿ome from ticket sales, Outreach and Educatlon actlvities. programme sales and ThR. In 2022123 income from charitable activities represented 54% 12021-22= 42%) of unrestrirted income. nearly back to prwandemic levels of SS%. A breakdown of full unrestricted income is shown below- ii.x 1.249 Unrestricted expenditure for the year was £3.4M12021-22: £2.6MI. Increase in costs reflects a full operational yeaT after two years affetted by the pandemic. Page 13 WATERMILL THEATRE UMITED (A ¢ompany Ilmrted by 8uaranteel TRUSTEES. REPORT CONfD FOR THE YEAR ENDED 31 MARCH 2023 Restrirted Funds The Watermill restritted funds are re￿Ipts which have been provided by donors for specific purposes within the overall aim of the organisation. The restrirted income in the year of £83k is from a grant supporting the Community Associate Programme from Greenham Trust. The cumulative balan¢e of restricted funds at the year*nd are £40K12021-22: £47KI. Ca Ital Ex enditure Expenditure on capital items contlnued to be small as we recovered frorn the efferts of the pandemic wtrth only essential purchases being made. £62k spent during the yeèr12021-22'. £27kl. This included the purchase of a bridge for the theatre1£25kl to improve the safe working method for production ri88in8. ReseNes Poli and oln The TrLFStees consider that a reserves policy is necessary to maintain sufficient resources to ensure that the following objectives a￿ achieved= to manage the ￿n￿rtaIntIeS arountl individual production sales to ensure The Watermill's future to continue investment in the charl￿$ key assets of the Grade 2 listed property and its amenities as resources allow to further the diversification of all our theatre's activities as resources allow Having assessed the potential level of risk and laking account of the theatre's planned attivities, the Trustees see the reserves being applied in the following way= Designated reserves of £650K for: Major capital works- Reserves provide the funds to respond to unplanned, but significant issues relating to the maintenance and development of the Grade 2 listed theatre, its offices, rehearsal rooms, restaurant and accommodation for actors and creative team. This provision 15 also made as a contribution towards a fuller programme of capital development to make improvements to the accessibility, environmental sustainability. and finèncial resilience of the organisation.- £650,000 For this finènci31 year, the Trustees have deaded to change the layout of the Statement of Financial Activities to better reflert the free feserves of the charity. The accounts have therefore been changed to create a Designated Fixed Asset fund to show the level of reserves which are tied up in the fixed assets of the theatre. This has involved removing restricted funds which had been created to fund fixed asset projects in previous years. namely Save the Waterniill Appeal which was set up when the charity purchased the theatre ènd Arts Couftcil restricted fund which was created from a grant used for the heating and cooling system for the theatre. As both of these restricted funds have been used to purchase the relevant assets it can be demonstrated thatthe restrirtion has been met and thu5 the cost of assets purchased can be transferred from the restricted funds to the designated fixed asset fund. Page 14 WATERMILL ThEATRE LIMtrED {A company Ilmited by8uarantee} TRUSTEES. REPORT CONfD FOR ThE YEAR ENDED 31 MARCH 2023 The aim for the charity is to have unre5tritted reserves lexduding the designated fixed asset reserve) of around six months budgetetl expenditure. The reserves are currently £1.3M and budgeted expenditure for 2314 has been set at £3.5M and thereforeTrustees seekto build unrestricted reserves over the coming year5 to pmtect the work of the Charity. The trustees have considered the level of funds and Cash held. the impact of a challenging fijndraising environment the future budgeted income and expenditure a5 well as the turrent economic climate and the uncertainties surrounding cuItLtre venues and have detem)ined that the charity has sufficient liquidity to continue its charitable activities for at least twelve months. Therefore, the trustees are of the opinion that the finanaal ststements should be prepared on a going concern basis. Flnancial Re￿Ilence Whilst we continue to retover fmm the pandemic and the cost of living crisis the threat of future disrLkPtion has not been completely removed. In response, the Watermill's management and Trustees have taken steps to secure the theatre's resilience by ensuring: regular review of costs and introducin8 Cost cutting plans that we explore other ￿$Sible income streams and increase fundraising options that we balance and align our artistic ambition with our ability to generate income resulting in a break-even position. This may mean having to produce lower cost produttlons or more co-productions in order to remain sustainable that we manage our resources carefully and creatively, for example reusing production assets for multiple shows Whe￿ posslble. Investments The Trustees, having regard to the liquidity requirements of the theatre and the reserves pollcy, operate a policy of keeping available funds in interest bearing deposits, and seek to achieve the best Possible rate of return available without risk to the underlying funds of the charity- Cash held at the year end was £1.8M12021-22: £1.8MI. Currently all cash deposits are held with five financial institutions, mainly in short temi accounts. With interest rates now increasin& a longer term deposit ha5 been placed since the year end. Strurture ovefnance and Man ement Since the Charity and the Group qualTrfies as small under section 383. the strateglc report required of medium and large companies underThe Companies Art 2006 Istrategic Report and Dirertor's Report) Regulations 2013 15 not required to be submitted. The Board £ollaborate5 Wlth the Artistic and Executlve Director and the stratewc Management Team Page 15 WATERMILL THEATRE UMtTED IA cofflpany limited by guarantee) TRUSTEES. REPORTCONfD FOR THE YEAR ENDED 31 MARCH 2023 to ensure that the Watemiill's airns and objectives are fulfilled. The Board delegates to the Artistic and Executive Dlrectoroverall responsibilty for the day-tfrday management of the Watermill. The Board meets six times a year and receives a presentation on all aspects of the running of the theatre from the Artistic and Executive Director and the Strategic Management Team. There are two further committees.. Finance and Audit Committee, reviews Annual 8udEet. Management Accounts, Risk Register and Financial Statements Nominations Committee, board recruitment The Trustees regularfy review the structure, size, and composttlon of the Board, with the object of having a membership of varied and diverse experien￿ that is able to offer help and advice to the Artistic and ExecutNe Dirertor and the theat￿,5 management team. Board members are appointed for an initial term of three years, and appointments are extended by approval at the AGM followin8 the end of the term of office. The existin8 Trustees, together with the Artistic and Executive Dlrector. ensure that new Trustees receive proper briefing and induction on their appointment. Objectives and Ahns The principal objects of The Watemiill a￿ to promote. maintain. improve, and advance education particularty by the production of high-quality theatre experiences and outreach activities. The Waterniill plays a central part in the quality of lrfe of its communtty- The purpose of our artivities 15 to encourage an understanding and knowleilge of the arts through a wide and varied theatrical programme that in5pire5 and provokesthought. A hubforthe development of new, diverse talent and work. In order to achieve the companVs charitable aims. The Watermill's programme focuses on.. Delivering a wide range of theatre produciions for everyone Delivering a range of participatory activttie5 for all ages and abilities to encourage creativity Providing a creative hub for artist development ConnectÈng with the socal community to WO￿ with and inspire people of all ages and abllities In developing the objertives for the year. and in planning activities. the Trustees have tonsidered the Charity Commission's guidance on public benefitand pricin8.The programme is planned by the Artistic Director so that during the year it provides opportunity for a wealth of freelance artists at different stages of their career cre3ting wort that entertains, inspires. and challenges the broadest Possible audience. Regard is given to ticket prices in terms of affordability, accessibility, and audience development to build and cement relationships with audien￿5 old and new. making sure our theatre is a place where everyone is welcome. Bursary place5 and taxis are provided to open up access to participants for whom costs and transport are an issue. A large number of workshops and events are provided free of charge and we work with loo5 partners to offer reduced price and free tickets to Page 16 WATERMILL THEATRE Um￿E0 (A company Ilmlted by guarantee) TRUSTEES, REPORT CONfD FOR THE YEAR ENDED 31 MARCH 2023 specific audientes when possible. Open conce55ions are avarlable on shows, enabling those who would benefit from a discount to self-identify and purchase a lower price ticket. Our acce55 perforniance5 and inclusive parttcipation wogramme support deaf and disabled people to enjoy everything the Watermill has to offer. We work with local partners and produce accessible marketing materials to help us reach as many potential audiences and participants as possible. Risk management Thè Watermill taces the followlng wlncipal risks and thallenges: The charity has a risk rewster, which is reviewed at the meeting of the Senior Management Team and presented to the Finance and Audit Committee and the Board every six months as part of the business review and planning process. The system of internal control and risk management is designed to identify and prioritise strategic and operational risk5 to the achievement of the Waterniill's aims and objectives, evaluatethe likelihood of those risks being realised and their potential impact, and manage these risks efficiently, effectively and economically. The Watermill fa￿5 the following prinopal risks and thallenges. Main risks indude- Ensuring that the necessary funds are generated to malntain arbd improve the assets of the Theatre Ensuring continued access to publicly an(J non-publicly funded grants in an environment of increased demand for these funds Continuing to attract audiences and partiapants in sufficient numbers to achieve its tharitable objectives especially in light of the current cost of living crisis retaining staff We will address these risks by: Generating sufficient incorne to cover costs Continuingto nurture relationshipswith all present arKI fvturefunding bodles and re5earchln8 new fundSng opportunities Making our artistic programme attractive to audiences and ensuring that producrion values are maintained in all our work: encouraging the audience back by being mindful that ticket prices are ac￿ssible and affordable We undertake to comply with relevant law and regulations, in particular- General Data Protertion Regulation lin relation to handllng the personal data of any donors The Charities Act Tax and Gtft Aid legislation Charity Commission guidance lin relation to seeking views on whether to accept or refuse a particular donation) The Bribery Act 2010 lin relation to bribery offencesl Fundraising Regulator. Code of Prattice Page 17 WATERMILL THEATRE UMITED (A tompany limited b¥ guarantee) TRUSTEES, REPORT corirD FOR THE YEAR ENDED 31 MARCH 2023 We ensure that dear poliues on data protection. health and safety and safeguarding children and vulnerable adults exist and are compliant Wtth current requirements. The trustees are satisfied that appropriate internal control systems and risk management processes are in pla￿. PLANS FOR THE FUTURE Looklng ahead In November 2022 we were notified that we had been unsuc￿ssful in securing Arts Councrl funding for 2023-26. We then applied and were successful in securingtransition funding for 23124. At the time of the annoL}n￿ment we were already committed to most of our 23124 season, further details of which are laid out below. Longer term, we a￿ reviewing our business model to ensure the future success of the theatre. Artlstlc The new year began with VIStfoRS. Barney Norris, ten(Jer play about learning to live and love wfch dementia. In May we stsgeil the world prernie￿ of Alexandra Wood's adaptation of THE SUSPICIONS OF MR WHICHER based on the book by Kate Summerscale. Direrted by Kate Budgen, this VictorFan whodunnit will be sponsored by Saica Pack In June we took to the road for our rural tour. This year we're working with Two Gents Productions on a new version of MANSFIELD PARK, which will uncover themes of raclsm and historic slavery to give a fresh per5pettive on this classic story. The produrtion ran in The Watermill Garden5 for two weeks following its tour acr055 Berkshire, Hampshire, Wijtshire and Oxfordshi In the summer, we will present our most ambitious projett to date.. THE LORD OF THE RINGS THE MUSICAL. Immersing audiences in 3 hobbivs eye view of the story. the production will take place in the gardens and tn the theatre MACBETH follows in the autumn. This pacey adaptation will revislt our extraordinary production from 2019, and will go on to tour to local schools At Christmas, we follow the yellow brick road for THE WIZARD OF OZ. The classic story wlll be a perfert treat for families with thildren aged 4+ and we are delighted to have Horsey Lightlv return as sponsors Our plans for 2024 are soon to be announced a5 we finalise our planning for the end of the rinancial year. Continue to explorethe potential for commerclal and 5ubsidised partnerships to invest In new writln8 and create work for our stage. Leadershlp and Governance Develop the business strategy to address the loss of statutory funding and ensure long term resilience and sustainability of the company Appoint up to 4 new tru5tee5 to replace those who come to the erkd of their tenure in 2023. We will also be reuuitingfor a new Chair Page 18 WATERMILL THEATRE UMITED IA company Ilmited by guarantee) TRUSTEES. REPORT CONfD FOR THE YEAR ENDED 31 MARCH 2023 Organisational development work- including theory of change and branding- embeddlng a clear understandin8 of the organisation's mission and purpose FLbll staff review wfchin business planning process Audlence Engagement and Development Develop and build on partnerships to with a specific focus on famify audlences and Deaf and hard of hearing audiences Implement processes that support a better understanding of the needs of our audiences and participants. Continue to develop the strategy to reengage those WIM) have lapsed since the pandemic and engage those who are new to the Watermill Envlronmental sustslnablllty & site development Improvements to the on-site accommodation for the benefit of actors and creatlves, for whom The Watermill becomes home when they are making work here, and in line with Equit¢s Dignity Digs recommendations Continued improvements to support the safety and integrity of the land around the banks of the rlver, working in conjunrtion with the Environment Agency Improvements to the restaurant and bar as we seek to attract more conferences, weddinES, and other events A review of the maintenon¢e schedule to ensure a Structured approach to the ongoing management of the slte and buildings. Trustees to review the 10-year plan conceived pre-pandemic a capital development scheme which was originally Fundralsing Following our work with Ach*es Philanthropy on our Theory of Change we will work with Trust¢es and the wider staff team to develop our programmes and initlatives and grow fundraised income to support this work Review of individual givin& incl¢Jding Benefactor5 and Friends of The Watermill Theatre, to maximise the potenti31 of growth in this are Explore new fvnding relationships and opportunities to support our work on incluslvlty, diversity, environmental $￿StainabIlIty. communty en8a8ement and talent development Page 19 WATERMILL THEATRE LIMITED (A ￿rnpanY limited by guarantee) STATEME1￿ OF TRUStEES' RESPONSBILMES FOR THE YEAR ENDED 31 MARCH 2023 The Trustees (who are also direttors of the Watemiill Theat￿ Limited for the purposes of companv lawl are responsible for preparing the Trustee5' report and the financial Statements in accordance with applicèble law ènd United Kingdom Accounting Standard5 (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming ￿SOurceS and appli&ition of resour￿5. including the income and expenditure, of the charitable groLtp for that period. In preparing these financial statements. the Trustees are required to.. selett suttable accounting k)olicies and then apply them consistently observe the methods and principles in the Charities SORP make judgments and accounting estimates that are reasonable and prudent prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any time the financi31 position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are a150 responsible for safeguardinB the assets of the charitable company and the group and hence for takin8 reasonable Steps for the prevention and detection of fraud and other irre8ularitie& DISCLOSURE OF INFORMATION TO AUDttOR Each of the persons who are Trustees atthe tlme whenthisTrustees' report isapproved has confirmed that.. 50 far as that Trustee is aware. there is no relevant audit information of which the charitsble group's auditor is unaware. and thatTrustee ha5 taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditor is aware of that information. AUDITOR The auditor, Wenn Townsend, has indicated its willingness to continue in office. The Designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees. This report was approved by the Trustee5. on and signed on their behalf by- Thls report has been p￿pared having tsken aifvantage of the small companles. exemption in the Companies Att 2006 A McKenzle- Chairman Pa8e 20 WATERMILL THEATRE LIM￿ED (A company Ilmlted by 8uaranteel INDEPENDENT AUDITOWS REPORTTO THE MEMBERS OF THE WATERMILL THEATRE UMITED OPINION We have audited the financial statements of Watermill Theatre Ltd (the 'pa￿nt charitable companv'l and its subsidiarles (the 'group'l for the year ended 31st March 2023 which comprise Con50Iidated Statement of Financial Artivities, the Consolidated and Charity Balance Sheet. the Cor¢solidated Cash Flow. Statement and notes to the financial statements. induding significant accounting pollcies. The fin8nclal 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 I￿land Iuntted Kingdom Generally Accepted Acwunting Pratticel. In our opinion the fhnancial statements= give a true and fair view of the stste of the group's and pa￿nt charitable compan(s affairs as at 3151 March 2023, and of the group's incoming resour￿$ and application of resources, including r(s income and expenditure. for the year then ended- have been properly prepared in accordance wtth United Kingdom Generally Accepted Accounting Practice- and have been prepared in accordance with the requirements of the Companies Act 21J)6 and the Charities Act 2011. BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, incluiling the FRC5 Ethical St3ndard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the aL*dit 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 contluded that the trustees, use of the going concem bas15 of accounting in the preparation of the financial statements L5 appropriate. Based on the work we have performed. we have not identified any material uncertainties relating to events or conditions that. individu3lly or collectively. may cast significant doubt on the group and parent charitable compan￿5 ability to continue as a going concern for a period of at least twelve months from when the financial ststements are authorised for issue. Our responsibilities and the fesponsibilrties of thetrusteeswith re5pectto going concern are described in the relevant sections of thi5 reporL Page 21 WATERMILL THEATRE LIMITED (A company limited by guarantee) INDEPENDENT AuDIT0￿s REPORT TO THE MEMBERS OF THE WATERMILL THEATRE LTD CONfD OTHER INFORMATION The other information comprise5 the information intluded in the trustees annual report, other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not tover the other information and, except to the extent otherwise explicit￿ stated in our report. we do not express any form of assurance conclusson thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identrfy such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statementsthemselves. If. based orsthe workwe have performed, we concludethatthere is a material rni55tatement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. OPINIONS ON OTHER MAThERS PRESCRIBED BY THE COMPANIES Acr 2LY16 In our opinion, based on the work undertaken in the course of the audit: the infom)atlon given in the trustees. report lincorporatinE thestrategic report and the directors. report) for the financial year for which the financial statements are prepared is consistent with the financial statements,. and the strategic report and the directors. report ha5 been prepared in accordance with applicable legal requirements. MAThERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit. we have not identified material misstatements in the strategic report and the directors. report. We have nothlng to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Art 2011 requires us to report to you if, in our opinion- adequate and sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been recetved from branches not vlsited by us,. or the parent charitable companvs financial statements are not in agreement with the accounting records and returns- or certain disclosures of directors. remuneration specified by law are not made- or we have not ￿(eIved all the inforniation and explanation5 we require for our audit. Page 22 WATERMILL THEATRE UMffED IA company Ihnitsd lry guarantee) INDEPENDENT AUDThOIYS REPORT TO THE MEMBERS OF THE WATERMILL THEATRE LTD CONT'D RESPONSSBILITIES OF TRusfEE5 As explaineil more fully in the Trustee5' responsibilities Statement set out on page 20, the trustee5 (who a￿ also the directors of the parent tharitable company for the pyrposes of company lawl are responsible for the preparation of the financial statements and forbeing satisfied that they give a true and fair view, and for such internal control as the trustee5 detemiine is necessary to enable the preparation of financial statements that are free frorn material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable compan￿5 abilty to continue as a goin8 con￿rn, disclosin& as applicable, matters related to going toncern and using the going concern b3sis of accounting unless the trLtstees either intend to liquidate the group or parent ch8ritsble company or to cease operations, or have no realistic alternative but to do so. AUDITOR RESPONSIBIUTIES FOR THE AUDTh OF THE FINANUAL STATEMEN75 We have been appointed auditor under the Companies Art 2￿)6 and sertion 151 of the Charities Art 2011 and report in accordance with those Acts. Our objectives are to obtain reasonable assurance about whetherthe financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs 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 IUKI 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 experted to influence the economic decisions of users taken on the basis of these financial statements. Tregularlties, Includlng fraud, are In5tafKes of noTrcomplianre with law3 and regulations. We desi8ti procedures in line with our responsibilr£ies. outlined above. to detect material misstatements in respect of irregularities, indudin8 fraud. The extent to which our procedures a￿ capable of detectTrng irregularities, including frauij is detailed below: Enquiry of management, those charged with governano around actual and potential litigation and claims,. Enquiry of entity Staff in tax and compliance functionsto identify any instances of non•compliance with laws and regulations. Reviewing minutes of rneetings of those charged with governance; Reviewing financial statement disclosures and testing to SUPPOrting documentation to assess cornpliance with applicable laws and regulations: Performing audit work over the risk of management override of controls, including testing of journal entries anil other adjustments for appropriateness. evaluating the business rationale of significant transattions outside the normal course of business and reviewing accountin8 estimate5 for bias. Page 23 WATERMILL THEATRE LIMITED (A company Ilmlted by guarantee) INDEPENDENT AUDtTOWS REPORTTO THE MEMBERS OF THE WATERMILL THEATRE LTD COMF'D Because of the inherent limitatTrons of an audit. there is a risk that we will not detect all irregularities, including those leadin8 to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance wtth a law or regulation is removed from the events and transattions reflerted in thefinancial statements, as we will be less likelyto become aware of instances of non-compliance. The risk is also greater regarding irregularities otturrinB due to fraud rather than error, as fraud involves intentional concealment, forgery, Collusion, omission or mi5repre5entation. A further description of our responsibilities is available on the FRC'S website at: https'.l/www.frc.org.uVaudrtors/audit-3ssurancel3uditor-s-responsibilities-for-th&audit-of-the- fi/description-of-the-auditor%E2%80%99s-responsibilities-for. This description form5 part of our audltorfs report. USE OF OUR REPORT This report is ma(le solely to the tharitable compan￿$ members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Att 2006 and to the tharitable cOmpan￿S trustees, as a bodv, in accordance with Part 4 of the Charities IAccounts and Reports) Regulations 2008. Our audlt work has been undertaken $0 that we might state to the charitable compan15 members those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we not accept or assume responsibility to anyone other than the charitable company and the charitable CoMpan￿S members as a bo(ty, for our audit work, for this report, or for the opinions we have formed. Lee Baker FCA {Senior Statirtory Auditor) For and on behalf ol Wenn Townsend Chartered Accountarts and Statutory Audltor 30 St Gile5 Oxford OXI 3LE 2023 Page 24 T'l I o (C* C• r•) bJ TrJ w¢0 Ln hJ gi nn ww oujw WATERMILL THEATRE UMffED IA company Ilmlted by guarantee) RESGISTERED NUMBER: 97827g CONSOUDATED BALANCE SHE￿ AS AT 31 MARCH 2023 2023 2022 Note Flxed a55ets Tangible assets 17 3.110,153 3.199,913 3,110,153 3,199,913 Current assets Stocks 19 8,813 9,146 Debtors 20 6(Kl.332 259,965 Cash at bank and in hand 1.750.215 1,847,641 2,359,360 2,116,752 Creditors.. amounts falling due within one year 21 (1.018,3151 1786,6701 Net current assets 1.341.045 1,330,082 Total net assets 4,451.198 4,529.996 Charity fvnds Unrestricted funds lexcluding designated) 651,306 633,281 Designated fixed asset reserve 3,110.153 3,199,913 Other designated reserves 650&M)O 650,0 Restricted funds 39,739 46,802 Total fvnds 22 4.451.198 4,529,996 The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financlal statements were approved and authorised for issue by the Trustees and s18ned on their behalf by.. A G McKenzie Chairman Date.. The notes on pages 30 3nd 46 forni part of these financial statements. Page 27 WATERMILL THEATRE UMtrED {A company Ilmited by guaranteel RESGISTERED NUMBER: 978279 CHARtrY B•ltANCE SHEET AS AT 31 MARCH 2023 2023 2022 ote Flxed assets Tangible assets 17 3.110.153 3,199,913 Investments 18 3.110,154 3,199.914 Current a55ets Stocks 19 8,813 9.146 Debtors 20 6rMJ.331 259,965 Cash at bank and in hand 1,750,215 1,847.641 2.359.359 2,116.752 Creditors: amounts falling due within one year 21 11,018,315) 1786,6701 Net current assets 1,341,044 1,330,082 Total net assets 4.451.198 4,529.996 Charlty funds Unrestricred funds (excluding (Jesignatedl Desi8nated fixed asset reserve Other designated reserves Restritted funds 651.306 633.281 3.110,153 3.199,913 650,IX¥) 650,(rt10 39,739 46.802 Total funds 4.451.198 4,529.996 The financial statements have been prepared in accordance with the provisions applicable to entities subjert to the small companies regime. Thefina cial statements were approve(l and auth0ri5ed for issue ty the Trustees and signed on by.. A G McKenzle Chairman Date: The notes on age 30 an(146 fom) pèrt of these financial statements. Page 28 WATERMILL THEATRE UMITED IA company limited lry guarantee) CONSOUDATED sfATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023 2023 2022 Cash flows from operatlng activities Net cash provided byl (used inl operating attivities 25 147.563) 212,961 Cash Ilows from investln8 actlvltles Dividends, interest and ￿ntS from investments 11.706 1,596 Purchase of tangible fixed assets {61.5691 126,7741 Net cash used In Investing artlvltles 149,863) 125,1781 Change in cash and cash e4ui¥alents in the year Cash and cash equivalents at the beginning of the year 197,4261 187.783 1.847.641 1.659,858 Cash and cash eouivalents at the end of the year 26 1.750,215 1,847,641 The notes on P8Bes 30 and 46 fom part of theses financial statements Page 29 WATERMILL THEATRE UMITED (A company limr￿d by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR ThE YEAR ENDEO 31 MARCH 2023 l. Attounting pofKies Basls of preparatlon of financlal statements The charity is incorporated in England and Wales and the financlal statements have been prepared in accordance with the Charitses SORP IFR5 1021 Accounting and Reporting by Charities.- Statement of Recommended practi￿ applicable to chartties preparing their accounts In accordance with the Financial Reporting Standard applicable to in the UK and Republic of Ireland IFRS 1021 leffettive l January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Art 2006. Watem)ill Theatre Limited meets the definition of a public benefit entity un(ler FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting pollcy. The consolidated statement of financial activities ISOFAI and consolidated balance sheet consolidate the financial statements of the charity and its Subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basi5. The charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements. Company ststus The chartty is a company limited by guarantee. The members of the company are the Trustees named on page 2. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. Golng con¢ern The Trustees have considered the impart of global pandemic and the cost living crisis on the abiltty of the charwty to continue trading for the foreseeable futu￿. Based on this review and taken together with existing financing facilities the Trustees believe that the financial statement5 have been prepared appropriately on the going concem basis. Inc¢)me All income 15 recognised once the charity has entitlement to the income, it is probably that the income will be received and the amount of the income receivable can be measured reliablv. Where income is received in a(fvance of perforTnance of speufied services it is deferred until the chartty is entrtled to that fund. Income form charitable activities represent the amounts received from the l)ox office and from touring activities in respect of all productions perfOrn￿￿ during the period. Donations and legacies represents the amounts re￿iV8b1e from grants, sponsorship and other donations. Page 30 WATERMILL THEATRE UMITED IA company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMErirs FOR THE YEAR ENDED 31 MARCH 2023 Grants and donations are recognised as income when entitlement is demonstrable. no conditions are attached, it is probablethat the incomewill be received an(i the monetaryvalue of the income can be measured reliably. Income from other trading activitles represents the amounts receNed in respect of the restaurant and bar and other related activities. Investment income represents interest ￿(EIVable OA cash balances held in appropriate interest bearin8 deposit accounts. Interest on funds held on deposit by the charity is included when receiv8ble. Expendlture All resources expended are recognised once there is a legal or constructiye obligatlon to make a payment to a third part. All resources expended are classrfied under acttvity headings. Resources expended are accounted for on an accruals basi& Resources expended on charitable attNities represent the expendit¥Jre incurred in respect of productions performed during the period and includes both the direct costs and 5UPPOrt costs relating to these attivities. Expenditure incurred in respett of productions performed after the date of the balance sheet is deferred to future accounting periods. Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements. Costs of raising funds represents the expenditure incurre(l in attrarting donations and legacies and in respect of the restaurant and bar and other related 3ttivities. Overhead costs are those costs which cannot be dirertly allocated to an activity of the charity, but nonetheless support these attivtties. These costs have been allocated betsYeer* 5UPPOrt. management and administration and fun(Jraisin& and then fijrther apportioned to appropriate resour￿5 expended tategorie5. Thevalue of servi￿5 provided byvolunt￿rS is not incorporated into thesefinanaal statements. All expenditure is inclusive of irrecoverable VAT. Fund Accountlng General fun(ts are unrestricted fundswhich are availablefor use atthe discretion of the Trustees in furtherance of the general objertlves of the group and whith have not been designated for other purposes. Designated funds comprise unrestritted fund5 that have been set aside by the Tnjstees for particular purpose5. The aim and use of each designated fvnd is set out in the notes to the financial statements. Restrirted funds are funds which a￿ to be used in accordancewith specific restrictions imposed by donors or which have been raised by the group for particular purposes. The Costs of raising and adrFtinistering such funds are charged against the specific fund. The aim and use of e3ch festrirted fund is set out in the notes to the financial statements. Page 31 WATERMILi THEATRE UMrrED (A company limited by guarantee) NOTES TO THE FINANaAL STATEMEpifs FOR THE YEAR ENDED 31 MARCH 2023 Taxatlon The charity is considered to pass the tests set out in Paragraph I Schedule 6 of the Finance Act 2010 and therefore Ét meets the definition of a charitable company for UK corporation tax purposes. Accordingly. the charity is potentially exempt from tsxation in respect of incorne or capital gain5 received within categories cOVe￿d by Chapter3 part 11 of the Corporation Tax Art 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992. to the extent that sud) income or gains are applied exclusively to charitable purposes. Tangible Ilxed assets and depreclation Tangible fixed assets costin8 £51)0 or more are capitalised and recognlsed when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recogni5ed at cost. After recognition. under the cost model, tangible fixed assets are measured at C05t le55 accumulated depreciation ar¢d any accumulated impairment105se5. All costs incurred to bring a tangible fixed asset into its intended working condition should be included In the measurement of cost. Depreciation is charged so as to èllocatethe costof tangible fixed assets le55 their residual walue over their estimated useful live5. Using the following depreciation bases- Freehold land Freehold property Freehold property improvements Theatre equipment Motor vehicles Heating and cooling installatlon Restaurant equipment no depreciation 2% on cost 2%- 10% on cost 20%125% on cost and 25% reducing balance 25% reducing balance 6.6% on cost 25% reducing balance Inve5tmerts Investments in subsidiaries are valued at cost less provision for impairment. lTrterest receivable Interest on funds held on deposit is included when receivable and the amount can be measured liably by the Group- this is nomally upon notification of the interest paid or payable by the institution. Operatlng leases Rentals p8i(J under operating leases are Charged to the consolidated statement of financial attivities on a straight line basis over the ￿aSe temi. Stocks and work In progrèss Stocks and work in progress arevalued atthe lowerof cost and net realisable value after making due allowance for ob501ete and slow-moving stocks. Cost includes all dirert costs and an appropriate proportion of fixed and variable overheads. Page 32 WATERMILL THEATRE UMITED IA company Ilmited by 8uaranteel NOTESTO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Debtors Trade and other debtors are recognised at the settlement amount after arhy trade discount offered. Prepayinents are valued at the amount prepaid net of any trade discounts due. Cash at bank and In hand Cash at bank and in hand includes cash and short-term liquid investments with a short maturity of th￿e months or lessfrom thedateof acquisition or openingof the depositor similar account. Llabilltles and provlslons Liabilities are recognised when there is an obligatlon 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 estim*ed reliably. Finanflal Irsstruments The group only has financial assets and financial liabilities of a kirhd that qU31ify as basicfinancial Instruments. Basic financial instruments 3re initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effettive interest method. Government grants Government grants are credtted to the consolidated statement of financlal activlties as the related expenditure is incurred. Penslons The group operates a define(I contribution pension scheme and the penslon charge represents the amounts payable by the group to the fund in respert of the year. Crltlcal accountlng esllmatss afid areas of Judgément The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balarsce sheet date and the amovnts reported for revenues and expenses duringthe year. However, the nature of estimation means that attual outcome could differ from those estimates. The following judgements (apart from those involwng estimates) have had the most significant effect on amounts recognised In the financial statements. Tangible fixed assets- are depreciate(J over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining lrfe of the asset and projected disposal values. PaEe 33 WATERMILL THEATRE UMITED IA company lirTrrted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Income from donatlons and legacies Restrlcted Fund5 2023 Total funds 2023 Total funds 2022 furmls 2023 Grants 458,673 373,038 95.764 21,5L)O 106.0(K) 458.673 455.889 95,764 21.500 757,554 401,344 86,520 13,750 soo Trusts and donations Friend5 of The Watermill Sponsorship Legacies 82,851 Total donation5 and legacies 82.851 1,054,975 1,137,826 1,259,668 Total 2022 98,351 1,161,317 1,259,668 Included wfchin Frlends of the Watemill 15 £8,642 received from Corporate Friends of the Watermill12022'. £5.8581 Grants 2023 2022 Arts Council England- General grant Arts Council England- Culture recovery grant Local Authority grant Job retention scheme grant 458.673 458,673 197,646 33,0 68,235 Total 458,673 757,554 Spon50rshlp 2023 2022 Sheepdrove Organic Farm Horsey Lightly Saica Pack Savills UK Totsl 6,000 5,000 2.750 5.500 5,51)0 4.500 21,500 13,750 Page 34 WATERMILL THEATrE UMffED {A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Restaurant. bar and other Income and expendlture 2023 2022 Income Cost of sales Gross surplus Administration expense 51Z.249 1404.8361 107.413 {￿.(K￿) 361,216 1314,3791 46,837 18,2601 Net surplus 92,413 38,577 7. Investment income Unrestricted Total fvnds Total funds funds 2023 2023 2022 Interest 11.706 11,706 1,596 Total 2022 1,596 1,596 8. Income from charftsble artivitses Unrestrirted Total funds Total fvnds funds Z023 2023 2022 Theatre box offKe Touring produrtions Youth theatre. education, and outreach Other theatre projerts Programme receipts Tax credit on theatre production costs 1,299,302 1,299.302 27,618 27.618 97.827 97.827 7,036 7.036 21,947 21.947 409.707 409.707 833,344 19,266 68,466 2,902 16,223 158.221 Total 2023 1,863.437 1,863,437 1,098,422 Total 2022 1.098,422 1.098.422 Page 35 WATERMILL THEATRE UMITED IA company Ilmited by guaranteÈl NOTES TO THE FINANOAL STATEMENfs FOR THE YEAR ENDED 31 MARCH 2023 9. Expenditufe on Voluntary income Unrestrirted funds 2023 Totsl funds 2023 Total funds 2022 Staff costs Premises costs Office costs Fundraising and appeal costs Publicity costs 129,847 13,076 15,598 70,355 109,292 129,847 13,076 15.598 70,355 109,292 146,324 11,088 6,568 38,341 55,537 Total 2023 338.168 338,168 257,858 Total 2022 257,858 257.858 10. Analysis of empendlture by artivhies Acthildes undertaken dirertly 2023 Support costs 2023 Total funds 2022 Total funds 2023 Production costs 1.764,550 352,077 1.764,550 1,265,685 352.077 304,620 714.920 640,165 14.465 16,097 Management and administration Support Costs Governance costs 714.920 14.465 Total 2023 2.116.627 729,385 2.846.012 2,226,567 Total 2022 1,570,305 656,262 2,226,567 Page 36 WATERMILL THEATRE LIMITED IA company Ilmited IV 8uaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 11. Productlon Costs Total funds 2022 funds 2023 funds 2023 Totsl funds 2023 Theatre productions Touring produttions Youth theatre, education and outreach Irrecoverable VAT Other theatre projects Programmes 1,370.191 1,370.191 13,272 13.272 144,291 234,205 122,525 122,525 3,312 3,312 21,045 21,045 984,474 13,192 205,431 54,232 89.914 8,356 Total 2023 89,914 1.674,636 1.764,550 1,265.685 Total 2022 88.488 1,177.197 1,265.685 12. Management and admlnlstration Unrestrlrted funds 2023 Totsl lunds 2023 Total funds 2022 Staff costs Premises and repair costs Office costs Insurance Other management and administration costs Depreciation and loss on disposal 234,109 22,557 15,598 3,594 53,519 22.700 234.109 22.557 15.598 3,594 53.519 22.700 231,129 19,451 6,568 2,724 36,365 8,383 Total 2023 352,077 352.077 304,620 Total 2022 304,620 304.620 Page 37 WATERMILL THEATRE LIMITED IA company limited by guarantee) NOTES TO THE FINANaAL STATEMEMfs FOR THE YEAR ENDED 31 MARCH 2023 13. Support costs Restrirted Uniestrfrted fvnd5 funds 2023 2023 Totsl funds 2023 Total funds 2022 Staff costs 300,012 300.012 262.725 191,737 191,737 165.334 16,070 16.070 6,767 29,162 29.162 21.708 29,543 29.543 28,080 19,765 19.765 12,576 128,631 128,631 142,975 Premises and ￿Pair costs Office costs Insurance related costs Other support costs Depreciation and loss on disposal Total 2023 714,920 714.920 640,165 Total 2022 95.474 544,691 640.165 Id. Governance ￿$ts Unrestrftted Funds 2023 Total funds 2023 Total Fund5 2022 Professlonal fees Trustees, insurance 13.081 1.384 13,081 1,384 14,655 1,442 Total 2023 14,465 14.465 16,097 Page 38 WATERMILL THEATRE UMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH Z023 15. Net lncomellexpendltu￿j This is stated after thar8ing: 2023 2022 Depreciation of tangible fixed a5sets-. -owned by the tharttable group Auditof s renumeration- audit Auditorfs renumeration- other services Operating lease rentals Pension costs 151.329 10,500 152.647 7,550 5,155 4,785 30,299 2,975 32.988 During the year. one Trtsstee received remuneration of £1.500 for adaptation of a plav12022.' £Nill. Thls fee is completely unrelated to their work as a Trustee. During the year, no Trustees receNed any benefits in kind12022= £Nill. During the year, no Trustees received any reimbursement of expenses12022= £Nill. 16. Staff costs Group 2023 Group 2022 Charity 2023 Charity 2022 Wages and 5alarSes Social security costs Other pension costs 1.385.807 45.914 32,988 1,505,129 78,310 30,299 1.385,807 45.914 32.988 1,050,129 78,310 30,299 1.464,709 1,158,738 1,464,709 1,158,738 The average number of persons employed by ihe Charitable Group dLTrring the year was as follows.. Charlty 2023 No. Charlty 2022 No. Average employee number 51 49 The average full time equivalents employed by the Charity during the year was 3712022: 351 The number of employees whose emoluments as defined for taxation purposes excluding pension contriblrtion amounted to £60,CW or more on an annualised basis was as follows: Charity 2023 No. Charity 2022 No. £60,000- £70.000 The key management personnel of the parent charity and the group comprise Trustees and the Senior Management Team. The total employee costs of the key management personnel were £368,61812022: £315,098). Page 39 MaA WATERMILL THEATRE UMITED {A ￿MpanY limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 18. Flxed asset Investments Investments In Subsidiary Companles Charity Cost or valuatlon At l April 2022 At 31 March 2023 Prlncipal subsldlaries The following was a subsidiary undertaking of the Charity= Name Companv Number Holdin8 Included in Consolidation Watermlll Theat￿ Produrtions Limited 09280479 loo% Yes The financial results of the subsidiary for the year were: Income Expenditure Net assets Watermill Theat￿ Produrtions Limited 1.122.408 1.122,408 19. Stocks Group 2023 Group Charlty 2022 2023 Charity 2022 Restaurant and bar 8,572 574 8.464 349 8,572 574 Merchandlse 349 8.813 9,146 8,813 9,146 Page 41 WATERMILL THEATRE Um￿ED (A company Ilmlted by guarantee) NOTE5 TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 20. Debtors Group 2023 Group Charity Charity 2022 2023 2022 Trade debtors 22,602 21,239 22,602 21,239 409,705 158,220 420.368 163.307 10,662 5,086 157.363 75.420 157.363 75,420 Amounts owed by group undertakin85 Other debtors Prepayments and accrued income s￿.333 259,966 6CKI.332 259.965 21. Creditors: Amounts falllng due v•lthln one year Group 2023 Group 2022 Charlty 2023 Charlty 2022 Trade creditors 124,446 62,749 31,570 43,087 10,988 35,995 851.311 644.839 124.446 31.570 10.988 851,311 62,749 43.087 35.995 644,839 Other taxation and social security Other c￿dItorS Accruals and deferred Income 1.018.315 786,670 1.018.315 786,670 Group 2023 Group 2022 Deferred income at l April 2022 Resources deferred during the year Amounts released from Previous periods 492,167 1442,1671 726,509 776,509 352,011 354,162 1214,0061 492,167 Deferred income represents amounts recetved in respect of future produttions and donations and grants which the donor ha$ Specified to be used in future accounting periods. Page 42 WATERMILL THEATRE UMtfED (A company Mmited by guarantee) NOTES TO THE FINANCIAL STATEMENfs FOR THE YEAR ENDED 31 MARCH 2023 22. ststsment of lunds Balance at I April 2022 Balance at 31 March 2023 Transfers Inlout Income Expendltuye Unrestrfcted fun(ts Deslgnated fixed asset fund 3,199,913 1151,3291 61.569 3,110,153 Othef Oeslgnated funds Major capital works 650.(KKI 650,000 General fund5 633.281 3,442.367 13,362.7731 161,5691 651,306 Total Unrestrlrted fund5 4,483,194 3.442,367 13.514,1021 4.411,459 Restricted funds Greenham Community Associate Fund 37,741 82,851 182.9541 37,638 Andrew Lloyd Webber Foundation 9,061 16,9601 2,101 46.802 82,851 189,9141 39,739 Total of lunds 4,529.996 3,$25.218 13,604.016) 4,451.198 Page 43 WATERMILL THEATRE UMrrED (A company Ilmited by guarantee) NOTES TO THE FINANCIAL STATEMEpifs FOR THE YEAR ENDED 31 MARCH 2023 22. Ststement of funds (continued) ststement of funds- pr5oryear restated Balance at I April 2021 Balance at 31 March 2022 Transfers in Income Expenditure Unrestrlrted lunds Designated fl¥ed asset fund 3.326,999 {153,8601 26.774 3,199,913 Other Designated funds Major capitsl works 650,(XKJ 650,000 General funds 633,281 2.624.577 12,564.7161 126.7741 633,281 Total Unre5trlrted funds 4,483,194 2,624,577 12.718,5761 4,48a.194 Restrlcted funds Greenham Community Assoaate Fund 35,110 82,851 180.2201 37.741 Andrew Lloyd Webber Foundation 1,828 15,5 18,2671 9,061 46.802 98.351 188.4871 46,802 Total ol funds 4.614.131 2,n2.928 (2,807.0631 4.529.996 23. Fund details Desi8nated funds Deskgnated Fixed Asset Fund - the accounts have been restated in 2V23 with the creation of a Designated Fixed Asset fund to represent the value of funds tied up in the fixed a55ets of the charty. Other Designated funds- the trustees have set aside funds for fuwre capstal expendtture Restrirted funds Greenham Community As50aate- this comprises the grant from Greenham Trust Andrew Lloyd Webber Foundation- thls fvnd covered the produttion and Stage Management tralnee post and finished in summer 2022. Pa8e 44 WATERMILL ThEATrE UMITED (A ¢ompany limited by guarantee) NOTES TO THE FINANaAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 24. Summary of fvnds Balance at 31 March 2023 Balance at I April 2022 Transfw5 Inlout Income ExPendI￿re General fijnds 633,281 3.442.367 13,362,773) 3,199,913 1151,3291 161,5691 651.306 Designated fixed asset fund 61,569 3,110,153 Other designate(l fvnds Restricted funds 650,CMJO 650,OC 46,802 82,851 189.914} 39,739 1.330,083 3.525.218 13.452.687) 161,5691 1.341,045 25. Rewn¢illatlon of net movement In fund$ to net ￿5h flow from operatlni acfvhles Group 2023 Group 2022 Net incomelexpenditure for the year las per Statement of Financial Activities) 178,7981 184,1351 Adjustments for.. Depreciation charges Dividends, Interests and rents from investments Loss on the sale of fixed assets 151,329 152.647 111,7061 11.5961 1,213 Decrease/lincrea5el in stocks De(￿aSe/llncre3se1 in debtors Increaselldecreasel in creditors 334 13,5911 1340,3671 1137.0511 285,474 231,645 31,235 297,096 Net cash provided byl (used inl operating activities 147,5631 212,961 Page 45 WATERMILL THEATRE UMITED {A company limited by 8uaranteel NOTES TO THE FINANCIAL STATEMEPITS FOR THE YEAR ENDED 31 MARCH 2023 26. Analysls of cash and cash equi¥alents Group 2023 Group 2022 Cash in hand 1,750,215 1.847,641 Totsl cash and eash equlvalents 1,750,215 1,847,641 Analysls of changes In net debt At l April 2022 Cash )lows At 31 March 2023 Cash at bank and in hand 1.847,641 197,4261 197,4261 1,750.215 Total changes In net debt 1,847,641 1,750,215 27. Operatlnz lease ¢ommltments At 31 March 2023 the Group and the Charity had commitments to make future mlnimum lease payments under non-cancellable operating leases as follows= Group 2023 Group 2022 Charity Charitv 2023 2022 Not later than l year Later than l year and not later than 5 years 567 567 48.123 6.624 48,123 6,624 48,123 7,191 48,123 7,191 Page 46