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2021-03-31-accounts

REGISTERED COMPANY NUMBER: 01321359 (England and Wales) REGISTERED CHARITY NUMBER: 274198

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FOR

M6 THEATRE COMPANY LIMITED

Wyatt, Morris, Golland Ltd Statutory Auditors Park House 200 Drake Street Rochdale Lancashire OL16 1PJ

M6 THEATRE COMPANY LIMITED

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 8
Report of the Independent Auditors 9 to 11
Statement of Financial Activities 12
Balance Sheet 13
Cash Flow Statement 14
Notes to the Cash Flow Statement 15
Notes to the Financial Statements 16 to 25
Detailed Statement of Financial Activities 26

M6 THEATRE COMPANY LIMITED

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2021

TRUSTEES S J Whitehead R Parker M Gott A Jackson F Fogarty J Welsby N Gloudon N Akhtar (appointed 26.10.20) S J De Courcey (appointed 6.11.20) R L Mcbride (appointed 9.11.20) M Abdulaleem (appointed 26.10.20) COMPANY SECRETARY D Palmer REGISTERED OFFICE Studio Theatre Hamer County Primary School Albert Royds Street Rochdale Lancashire OL16 2SU

REGISTERED COMPANY NUMBER 01321359 (England and Wales) REGISTERED CHARITY NUMBER 274198

AUDITORS Wyatt, Morris, Golland Ltd Statutory Auditors Park House 200 Drake Street Rochdale Lancashire OL16 1PJ

Page 1

M6 THEATRE COMPANY LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives for which the Company is registered are to promote, maintain, improve and advance education particularly by the production of plays and the encouragement of participation in Theatre and the Arts.

The following policy has been adopted in order to further the Company's principal objectives: -

"To broaden the education of the target audiences of children and young people by producing rich and diverse programmes of high quality professional theatre, both adapted from existing works and works commissioned by the Company, which deal with a wide variety of relevant social and cultural issues".

There have been no material changes in the policies adopted by the Company over the last year.

Public benefit

M6 Theatre Company is a public benefit company which advances the education of the public by creating high quality innovative and accessible theatre that celebrates diversity and prioritises disadvantaged communities. M6 creates theatre that ignites the imagination, nurtures the heart and challenges the minds of young people, helping them develop the emotional literacy and self esteem necessary to make informed choices and expand their social and cultural horizons.

We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and benefits they have brought to those groups of people we are set up to help. The review also helps us ensure our aim, objectives and activities remained focused on our stated purposes. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.

Page 2

M6 THEATRE COMPANY LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

STRATEGIC REPORT

Achievement and performance

M6 Theatre is one of Britain's leading theatre companies specialising in creating and delivering excellent work with, by and for children and young people.

With over 40 years proven experience, our tiny team normally:-

Our key aims are to:

  1. Have a reputation as specialists in making theatre with, for and by children and young people that has depth, is multi-layered and nurtures empathy, respect and emotional literacy

  2. Offer original world class theatre, locally grown with universal resonance, appeal and longevity

  3. Prioritise and engage under-represented community audiences, new to theatre, in areas of low arts engagement and multiple deprivations

  4. Unlock the potential of children and young people, using theatre as a tool for positive change and respond to the challenges of living in contemporary Britain

  5. Champion diversity, nurture under-

represented creative talent and new diverse voices in theatre

  1. Champion Theatre for Young Audiences, cultural education and Rochdale's Cultural Engagement offer

During lockdown, M6's team fully committed to "do what we can do, safely"- proactively managing risk, safely responding to change, embracing innovative ways of working with the aim of surviving in whatever new landscape emerges in theatre for young audiences.

We committed to make the most of what we had - people, products, partnerships and reserves to achieve greater reach and impact, develop new work and cross sector synergy to ensure the TYA sector survived. So whilst many organisations had to furlough entire teams of staff, our small team continued to operate at 80% capacity to achieve this.

We swiftly adapted our delivery plans to new digital interventions to ensure we continued to engage with target audiences/participants and developed a range of new creative products and services responding to need and supporting freelance creative artists which has increased our visibility, reach, impact and relationships.

By adapting quickly and working hard, during lockdown, we:-

Quite a feat for such a small team.

BEHIND THE SCENES

We stayed true to our values and priorities; silver linings include:-

Page 3

M6 THEATRE COMPANY LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

FINANCIAL LANDSCAPE & CONTEXT

We liaised with our funding partners to rescope delivery plans; cut costs where possible; availed of JRS funding (20% staff capacity) and COVID emergency funding and participated in collaborative fundraising with Rochdale Culture Network members to develop new co-producing practice.

We carefully monitored cashflow and financial sustainability. Our annual income reduced significantly due to COVID in FY21 and so we prepared to use our reserves to fund this work. Thankfully due to exploring new income streams to offset reduced income (Job Retention Scheme and Film Tax Relief), these reserves can now be maintained to underpin our FY22 activity plan.

In a competitive funding landscape and where a number of our strategic projects have ended, we have secured ACE NPO, NHS CCG, BBC Children In Need, RBC and Link4Life funding for FY22 and have increased earned income levels from digital products.

Financial review

Review of the transactions and financial position of the company

M6 is revenue funded by the Arts Council England, Rochdale Link4Life and the Association of Greater Manchester Authorities. The company is a charity and is reliant on the support of Trusts, Foundations and sponsors to fund activities.

For the financial year ended 31 March 2021, the Company's financial activities resulted in a net inflow of unrestricted funds of £45,934 and net outflow of restricted funds of £16,646, creating an in-year surplus of £29,288.

Details of these funds are shown in note 16 to accounts.

This result demonstrates the strength of the financial performance of the organisation in a very challenging financial environment. The company controlled project costs and continued to invest in key organisational development - this result has been realised through a combination of strong financial management, effective fundraising and adapting programme delivery where feasible.

Designated Reserves

As at 31 March 2021, the Company has designated reserves for future capital assets replacements of £45,000. This represents a net decrease from the previous year end of £992 as the reserve has been fully written off during the year as the van was sold.

Also as at 31 March 2021, the Company has designated reserves for employment costs of £35,000 and schools engagement initiatives of £10,000 for use in 2021-22 and beyond.

Investment policy and objectives

The Board reviews the investment policy annually, primarily to ensure exposure to financial risk is minimised and unethical investments are avoided. Currently the Board has determined standard bank and building society accounts to be the most appropriate means of investing funds.

Reserves policy

Given the current economic climate and the accompanying business uncertainty, the Board has considered it prudent for the Company to maintain unrestricted funds, which are free reserves of the Company, at a level that equates to at least six months' unrestricted expenditure. This is considered sufficient cover for management and administration and support costs. At the year end the free reserves were marginally below this level and steps are being taken to correct this position.

The Company has designated unrestricted reserves of £90,000 in respect of discretionary expenditure for asset replacement, employment and engagement which the Board has approved to be fully utilised in the forthcoming years.

The Board reviews the reserves policy annually to take account of changing circumstances.

Page 4

M6 THEATRE COMPANY LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

STRATEGIC REPORT

Financial review

Going concern

There are no material uncertainties about the charity's ability to continue as a going concern.

COVID19 IMPACT

M6 continued to meet the needs of children, young people and families and artists during lockdown by gaining funder approval to create and disseminate a range of digital and physical creative interventions including films, activity packs and a monologue writing competition. We adapted quickly and engaged more widely as a result. We now emerge into a changing landscape with two team members furloughing over Summer 2020 to save costs. The rest of the team are homeworking to continue to be part of Build Back Better discussions and opportunities.

Our key priority is to work productively within new COVID19 Health & Safety guidelines and use our investment to date to maximum effect (people, products, partners and place) to ensure we retain the financial resources necessary to survive longer term.

M6 has also taken steps to improve its operating and governance arrangements in direct response to the pandemic, in order to safeguard and support staff, the young people we work with, the local communities and wider public. This has included:

We have undertaken regular virtual consultation with multiple key partners locally including young people, education, voluntary sector and Local Authority partners alongside theatre venues and peer touring theatre company networks nationally. We have listened keenly to what they have told us and our delivery plan to March 2022 is informed by their voices.

The aims and initiatives M6 continue to creatively support include:-

  1. Black Lives Matter, the creative case for diversity and community cohesion

  2. the Recovery Curriculum post COVID19 - Mental Health and Wellbeing (for school bubbles and community groups) and Environmental Sustainability

  3. Creative Classrooms/Schools without Walls (reframing cultural spaces as community learning hubs)/outdoor performance (Build Back Better)

Our ability to continually adapt, the level of unrestricted reserves and confirmed NPO funding from Arts Council England to 2023 ensure that M6 remains a going concern'

Page 5

M6 THEATRE COMPANY LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

STRATEGIC REPORT

Balanced risk and future plans

M6's Activity Plan FY22 builds on the strong developments made in FY21, recognises the value and necessity of M6 team continuity and balances operational/financial risk.

Our budget for FY22 includes new revenue streams and substantial contingency. Programme costs are scalable through quarterly forecasting and decision making to mitigate risk. Whilst we plan to utilise designated reserves as necessary, we will still retain free reserves to cover prudent levels of running costs.

Our Activity Plan FY22 is informed by our partners and community and supports the creative case for diversity, inclusion and increased access to local under-served communities including:-

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The trustees are the only members of the Company and have guaranteed to pay an amount of £1 in the event of the Company being wound up.

Recruitment and appointment of new trustees

New directors are recruited when appropriate by the Board through a range of trusted channels including peer recommendation. New directors are appointed on unanimous vote.

New directors are interviewed and invited to observe M6's Board Meetings prior to appointment. Once appointed, new directors are issued with an M6 Induction Pack and offered Board Member training.

All strategic and policy decisions are made by the Board of Directors on recommendation from the following sub-committees: Engagement, Personnel and Finance. Operational decisions are delegated to the Managing Director/CEO and Artistic Director.

The Board of Directors have agreed to opt for a full statutory audit of the Annual Accounts, despite the applicable exemption under both the Companies Act and the Charities Act. This was done to provide greater transparency of the Board's financial governance as well as independent assurance of the financial viability of the Company.

Organisational structure

The Board and Leadership Team have increased organisational resilience by significantly developing a number of roles including Participation Director and Company Administrator. The Managing Director reduced from full time to four days per week and the CEO position is now shared jointly between the Leadership Team of Artistic Director and Managing Director. The Leadership Team is supported in strategic planning by the Production & Tour Director and Participation Director. Through the Annual Review process all team roles were reviewed, updated and salaries recalibrated to reflect necessary role developments.

Page 6

M6 THEATRE COMPANY LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT Related parties

The Company requires all directors and employees to declare related party and other interests as they arise.

Transactions with related parties are disclosed in note 17 to the accounts.

Risk management

The Company regularly reviews its organisational Risk Assessment Framework. This process is integrated into the Business Planning cycle, led by the Board and involving sub committees and the Leadership Team identifying and quantifying the impact of the major potential risks which could impair the achievement of the Company's strategic objectives. The process also includes determining whether adequate controls are in place to manage or mitigate the exposure of the Company in relation to key financial and non-financial risks.

The most recent review highlights that the Company continues to successfully develop, capture and communicate its internal control procedures and systems to respond to significant risks as they emerge and identified the following aspects to be the principal areas of exposure for the Company:

The Board and Leadership Team have implemented a range of strategies to manage these risks :

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of M6 Theatre Company Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

In so far as the trustees are aware:

AUDITORS

The auditors, Wyatt, Morris, Golland Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Page 7

M6 THEATRE COMPANY LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 28 September 2021 and signed on the board's behalf by:

S J Whitehead - Trustee

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF M6 THEATRE COMPANY LIMITED

Opinion

We have audited the financial statements of M6 Theatre Company Limited (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

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

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

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF M6 THEATRE COMPANY LIMITED

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

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

The extent to which the audit was considered capable of detecting irregularities including fraud.

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

-the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of charities;

-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities Act 2011and Companies Act 2006;

-we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary and

-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud and

-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

-performed analytical procedures to identify any unusual or unexpected relationships;

-tested journal entries to identify unusual transactions;

-assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-investigated the rationale behind significant or unusual transactions.

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

-agreeing financial statement disclosures to underlying supporting documentation;

-enquiring of management as to actual and potential litigation and claims; and

-reviewing correspondence with HMRC.

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

Page 10

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF M6 THEATRE COMPANY LIMITED

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Wyatt, Morris, Golland Ltd Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Park House 200 Drake Street Rochdale Lancashire OL16 1PJ

28 September 2021

Page 11

M6 THEATRE COMPANY LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

2021
Unrestricted
Restricted
Total
funds
funds
funds
Notes
£
£
£
INCOME FROM
Donations and grants
2
306,365
118,574
424,939
Charitable activities
4
Charitable activities
13,997
9,033
23,030
Investment income
3
81
-
81
Other income
5
41,283
-
41,283
Total
361,726
127,607
489,333
EXPENDITURE ON
Charitable activities
6
Charitable activities
-
-
-
Resources expended on charitable activities
327,492
132,553
460,045
Support costs
-
-
-
Total
327,492
132,553
460,045
NET INCOME/(EXPENDITURE)
34,234
(4,946)
29,288
Transfers between funds
17
11,700
(11,700)
-
Net movement in funds
45,934
(16,646)
29,288
RECONCILIATION OF FUNDS
Total funds brought forward
236,773
205,963
442,736
TOTAL FUNDS CARRIED FORWARD
282,707
189,317
472,024		 2020
Total
funds
£
546,921
56,467
79
54,800
658,267
-
484,453
-
484,453
173,814
-
173,814
268,922
442,736

The notes form part of these financial statements

Page 12

M6 THEATRE COMPANY LIMITED

BALANCE SHEET 31 MARCH 2021

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
13
36,773
CURRENT ASSETS
Debtors
14
68,888
Cash at bank and in hand
221,197
290,085
CREDITORS
Amounts falling due within one year
15
(44,151)
NET CURRENT ASSETS
245,934
TOTAL ASSETS LESS CURRENT LIABILITIES
282,707
NET ASSETS
282,707
FUNDS
17
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
131,487
-
57,830
57,830
-
57,830
189,317
189,317		 2021
Total
funds
£
168,260
68,888
279,027
347,915
(44,151)
303,764
472,024
472,024
282,707
189,317
472,024		 2020
Total
funds
£
184,919
85,368
249,733
335,101
(77,284)
257,817
442,736
442,736
236,773
205,963
442,736

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

The financial statements were approved by the Board of Trustees and authorised for issue on 28 September 2021 and were signed on its behalf by:

S J Whitehead - Trustee

N Gloudon - Trustee

The notes form part of these financial statements

Page 13

M6 THEATRE COMPANY LIMITED

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash used in investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period		 2021
£
68,580
68,580
(40,367)
1,000
81
(39,286)
29,294
249,733
279,027		 2020
£
247,182
247,182
(154,697)
2,703
79
(151,915)
95,267
154,466
249,733

The notes form part of these financial statements

Page 14

M6 THEATRE COMPANY LIMITED

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Loss/(profit) on disposal of fixed assets
Interest received
Decrease in debtors
(Decrease)/increase in creditors
Net cash provided by operations		 2021
£
29,288
55,510
516
(81)
16,480
(33,133)
68,580		 2020
£
173,814
27,026
(1,657)
(79)
32,813
15,265
247,182

ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.20 Cash flow At 31.3.21
£ £ £
Net cash
Cash at bank and in hand 249,733 29,294 279,027
249,733 29,294 279,027
Total 249,733 29,294 279,027

The notes form part of these financial statements

Page 15

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Income is shown net of VAT

Theatre admission fees

Income from theatre admission fees is included in incoming resources in the period in which the relevant show takes place.

Donations and grants

Income from donations and grants, including capital grants, is included in incoming resources when these are receivable, except as follows:-

When donors specify that donations and grants, including capital grants, are for particular restricted purposes, but these do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable.

Gifts in kind

Goods and services received in kind are included within the financial statements where this can be quantified. No amounts are included in the financial statements for services donated by volunteers.

Interest receivable

Interest is included when receivable by the Company.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Allocation and apportionment of costs

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

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

Motor vehicles - 25% on reducing balance Equipment - 10% & 25% NBV and 25% straight line

Taxation

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

Fund accounting

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

Page 16

continued...

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES - continued

Fund accounting

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

Designated funds are funds set aside at the discretion of the directors out of unrestricted general funds and intended for specific future purposes or projects.

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

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

The scheme operated by the Company complies with the auto enrolement rules.

Government grant - covid 19

Government grants are recognised when there is reasonable assurance that the company will comply with the conditions attaching to the grant and the grant will be received.

Following the outbreak of the Covid-19 Pandemic the company furloughed members of staff and took advantage of the government job retention scheme. Grant income is accrued for in the period matching the period the wages were due for.

2.

DONATIONS AND GRANTS

Grants receivable
Gifts in kind
HMRC JRS grant		 2021
£
321,560
58,882
44,497
424,939		 2020
£
495,525
51,396
-
546,921

The gift in kind relates to the use of M6 Theatre premises by the Company which is owned by RMBC. The value of the gift is determined by RMBC annually.

3. INVESTMENT INCOME

Deposit account interest
INCOME FROM CHARITABLE ACTIVITIES
Activity
Fees and box office
Charitable activities
Other income
Charitable activities		 2021
£
81
2021
£
23,030
-
23,030		 2020
£
79
2020
£
56,422
45
56,467

4. INCOME FROM CHARITABLE ACTIVITIES

continued...

Page 17

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

5. OTHER INCOME

Film/theatre tax relief receivable
6.
CHARITABLE ACTIVITIES COSTS
Resources expended on charitable activities
7.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Marketing
Production fees
Tour costs
Sets and costumes
Administration
Asset costs
Freelance administration
Studio Theatre use
Depreciation
Surplus on disposal of fixed assets
8.
SUPPORT COSTS
Resources expended on charitable activities		 Direct
Costs (see
note 7)
£
453,511		 2021
2020
£
£
41,283
54,800
Support
costs (see
note 8)
Totals
£
£
6,534
460,045
2021
2020
£
£
217,652
258,853
9,962
15,871
56,530
57,923
1,212
9,544
7,935
5,526
18,133
26,883
27,029
25,728
150
1,830
58,882
51,396
55,510
27,026
516
(1,657)
453,511
478,923
Governance
costs
£
6,534

Governance costs of £6,534 are made up of £1,710 audit and accounts preparation, £4,280 tax advice and payroll preparation and £544 bank charges.

9. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2021 2020
£ £
Auditors' remuneration 1,710 1,080
Auditors' remuneration for non audit work 4,280 3,105
Depreciation - owned assets 55,510 27,026
(Deficit)/surplus on disposal of fixed assets 516 (1,657)

continued...

Page 18

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.

11. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
Four key personnel received total emoluments of £152,498 during the year.
The average monthly number of employees during the year was as follows:
Management and administration staff
No employees received emoluments in excess of £60,000.
The full time equivalent number of staff is 6.6
12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME FROM
Donations and grants
260,717
Charitable activities
Charitable activities
56,441
Investment income
79
Other income
54,800
Total
372,037
EXPENDITURE ON
Charitable activities
Charitable activities
-
Resources expended on charitable activities
357,689
Support costs
-
Total
357,689
NET INCOME
14,348
Transfers between funds
(16,993)
Net movement in funds
(2,645)		 2021
£
197,416
13,124
7,112
217,652
2021
8
Restricted
funds
£
286,204
26
-
-
286,230
-
126,764
-
126,764
159,466
16,993
176,459		 2020
£
234,531
10,388
13,934
258,853
2020
9
Total
funds
£
546,921
56,467
79
54,800
658,267
-
484,453
-
484,453
173,814
-
173,814

continued...

Page 19

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted
Restricted
funds
funds
£
£
RECONCILIATION OF FUNDS
Total funds brought forward
239,418
29,504
TOTAL FUNDS CARRIED FORWARD
236,773
205,963
13.
TANGIBLE FIXED ASSETS
Motor
vehicles
Equipment
£
£
COST
At 1 April 2020
65,215
241,314
Additions
-
40,367
Disposals
(25,450)
-
At 31 March 2021
39,765
281,681
DEPRECIATION
At 1 April 2020
26,130
95,480
Charge for year
8,593
46,917
Eliminated on disposal
(23,934)
-
At 31 March 2021
10,789
142,397
NET BOOK VALUE
At 31 March 2021
28,976
139,284
At 31 March 2020
39,085
145,834
14.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021
£
Trade debtors
1,974
Other debtors
5,373
Film/theatre tax relief
40,487
VAT
-
Prepayments
21,054
68,888		 Total
funds
£
268,922
442,736
Totals
£
306,529
40,367
(25,450)
321,446
121,610
55,510
(23,934)
153,186
168,260
184,919
2020
£
1,326
51
50,180
20,771
13,040
85,368		 Total
funds
£
268,922
442,736

continued...

Page 20

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
VAT
Accrued expenses
Deferred income		 2021
£
466
3,612
199
15,291
24,583
44,151		 2020
£
1,074
5,655
-
18,694
51,861
77,284

Deferred income relates to income paid in advance for projects to be undertaken after the year end. The amount clears in the following financial year.

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases falling due as follows:-

17.

2018 2017
£ £
Between one and five years 957 1,674
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Capital Replacement Fund - Van
Employment Fund
Engagement Fund
Asset Replacement Fund
Restricted funds
Capital Development Fund
RALP - Capital
AGMA - Capital
Participatory Projects
Aiming High Capital
5 Creative Ways To Wellbeing CCG
Tudor Trust Wellbeing
When We Started Singing
Homework Support Covid Emergengy
TOTAL FUNDS		 At 1.4.20
£
145,781
992
35,000
10,000
45,000
236,773
4,707
4,179
646
47,934
148,497
-
-
-
-
205,963
442,736		 Net
movement
in funds
£
35,226
(992)
-
-
-
34,234
(474)
(418)
(646)
(11,004)
(20,016)
20,000
900
6,785
(73)
(4,946)
29,288		 Transfers
between
funds
£
11,700
-
-
-
-
11,700
-
-
-
20,000
(4,988)
(20,000)
-
(6,785)
73
(11,700)
-		 At
31.3.21
£
192,707
-
35,000
10,000
45,000
282,707
4,233
3,761
-
56,930
123,493
-
900
-
-
189,317
472,024

continued...

Page 21

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

17. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Capital Replacement Fund - Van
Restricted funds
Capital Development Fund
RALP - Capital
AGMA - Capital
Participatory Projects
Aiming High Capital
5 Creative Ways To Wellbeing CCG
Tudor Trust Wellbeing
When We Started Singing
Homework Support Covid Emergengy
TOTAL FUNDS		 Incoming
resources
£
361,726
-
361,726
-
-
-
47,401
23,265
20,000
2,000
19,940
15,001
127,607
489,333		 Resources
Movement
expended
in funds
£
£
(326,500)
35,226
(992)
(992)
(327,492)
34,234
(474)
(474)
(418)
(418)
(646)
(646)
(58,405)
(11,004)
(43,281)
(20,016)
-
20,000
(1,100)
900
(13,155)
6,785
(15,074)
(73)
(132,553)
(4,946)
(460,045)
29,288		 Resources
Movement
expended
in funds
£
£
(326,500)
35,226
(992)
(992)
(327,492)
34,234
(474)
(474)
(418)
(418)
(646)
(646)
(58,405)
(11,004)
(43,281)
(20,016)
-
20,000
(1,100)
900
(13,155)
6,785
(15,074)
(73)
(132,553)
(4,946)
(460,045)
29,288
34,234
(474)
(418)
(646)
(11,004)
(20,016)
20,000
900
6,785
(73)
(4,946)
29,288

Comparatives for movement in funds

Unrestricted funds
General fund
Capital Replacement Fund - Van
Unrestricted Participatory Projects
Employment Fund
Engagement Fund
Asset Replacement Fund
Restricted funds
Capital Development Fund
RALP - Capital
AGMA - Capital
Participatory Projects
Aiming High Capital
BSBT Positive Pathways (Crossing The Line)
The Storm
5 Creative Ways To Wellbeing CCG
Grey Matters - Ambition For Ageing
TOTAL FUNDS		 At 1.4.19
£
148,095
1,323
-
35,000
10,000
45,000
239,418
5,230
4,643
861
-
17,901
869
-
-
-
29,504
268,922		 Net
movement
in funds
£
5,667
(331)
9,012
-
-
-
14,348
(523)
(464)
(215)
28,922
125,608
-
(18,200)
23,962
376
159,466
173,814		 Transfers
between
funds
£
(7,981)
-
(9,012)
-
-
-
(16,993)
-
-
-
19,012
4,988
(869)
18,200
(23,962)
(376)
16,993
-		 At
31.3.20
£
145,781
992
-
35,000
10,000
45,000
236,773
4,707
4,179
646
47,934
148,497
-
-
-
-
205,963
442,736

continued...

Page 22

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

17. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Capital Replacement Fund - Van
Unrestricted Participatory Projects
Restricted funds
Capital Development Fund
RALP - Capital
AGMA - Capital
Participatory Projects
Aiming High Capital
Unlocking Voices
The Storm
5 Creative Ways To Wellbeing CCG
Grey Matters - Ambition For Ageing
TOTAL FUNDS
RESERVES - RESTRICTED FUNDS		 Incoming
resources
£
363,025
-
9,012
372,037
-
-
-
102,734
141,969
26
14,501
25,000
2,000
286,230
658,267		 Resources
Movement
expended
in funds
£
£
(357,358)
5,667
(331)
(331)
-
9,012
(357,689)
14,348
(523)
(523)
(464)
(464)
(215)
(215)
(73,812)
28,922
(16,361)
125,608
(26)
-
(32,701)
(18,200)
(1,038)
23,962
(1,624)
376
(126,764)
159,466
(484,453)
173,814

DEVELOPMENT FUND (FIXED ASSETS)

Relates to a grant received during 1996 for new equipment. The reserve is being written off at the same rate as the depreciation on the equipment purchased.

R.A.L.P. (FIXED ASSETS EQUIPMENT)

Capital items supporting the charity's relocation to the new Studio Theatre in 2004 funded by the Regional Arts Lottery Programme. The reserve is being written off at the same rate as the depreciation on the equipment purchased.

AGMA CONTINGENCY FUND 2010-11 (VAN)

Grant from AGMA to fund a touring van purchased in October 2010. The reserve has been fully written off during the year as the van has been sold.

PARTICIPATORY PROGRAMME

During 2019-20, M6's expanded participatory programme was funded by The Tudor Trust, Big Lottery Reaching

Communities Fund in partnership with Rochdale Connections Trust, BBC Children In Need, Heywood, Middleton and Rochdale CCG and Barnardos to provide regular out-of-hours participatory drama based workshops for young people to build confidence, life and theatre skills through engagement in positive social activities, culminating in theatre productions shared with local community.

AIMING HIGH ACE CAPITAL GRANT

Key investment from Arts Council England to support M6's strategic ambitions regarding technical touring equipment, digital infrastructure developments and increased accessibility. Investment commenced in 2019 and was completed by the end of March 2021. M6 is match funding from designated asset replacement reserves and RMBC are contributing in-kind support. The balance represents Arts Council income for capital expenditure to date, net of depreciation

BSBT POSITIVE PATHWAYS (CROSSING THE LINE)

continued...

Page 23

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

17. MOVEMENT IN FUNDS - continued

During 2018-19, funding from The Home Office, Building a Stronger Britain Together Programme supported the creation and delivery of a powerful new Monologue and interactive workshop exploring contemporary themes of identity, belonging and exploitation. The tour was designed to develop discernment, increased understanding and personal resilience for young participants aged 13+. During 2019-20 a new film and digital education resource of Crossing The Line was disseminated in Summer 2019 to extend reach and resonance.

UNLOCKING VOICES

During 2019-20, M6's participatory programme included a range of Unlocking Voices projects, funded by various grants from RMBC Children Services and augmented by The Home Office BSBT funds. Funding supported the creation of a range of empowering film-based outreach projects identified young beneficiaries living in Rochdale Borough. Augmented by accompanying education packs these contemporary digital resources created by young people are hosted on Rochdale Borough's Safeguarding Children's Board website for use by educationalists and youth support agencies to support local Safeguarding and PSHE aims, exploring a range of relevant issues and signposting to further support and advice.

5 CREATIVE WAYS TO WELLBEING

Funded by Heywood, Middleton and Rochdale CCG, as well as signposting to cultural activity opportunities Borough-wide, M6 Theatre co-developed and delivered 4 strands of creative interventions, all designed to improve the wellbeing of children, young people and their families. The content and form of these targeted early interventions are designed to support participants to 1. Be Active, 2. Connect, 3. Learn, 4. Be Mindful and 5. Give.

GREY MATTERS - AMBITION FOR AGEING

During 2019-20 Funded by Ambition For Ageing, M6's Grey Matters project built new relationships with the elderly residents and workers of two Care Homes in Rochdale Borough. Through specially designed creative workshop sessions using the themes from two M6 theatre productions - superheroes ( Mission Save The World!) and the weather (The Storm) our skilled practitioner unlocked the creative potential of 10 participants. From this initial facilitated work on their own premises, 6 residents built enough confidence to leave the care home to attend a special free community performance at M6 Studio Theatre along with local families.

RESERVES - UNRESTRICTED FUNDS

CAPITAL REPLACEMENT FUND

This was set up by the Directors in 2008 and augmented in 2009 to build up the necessary funding to replace the touring van at the end of its useful life. A new van was purchased in 2010-11 partly funded by a grant from AGMA (see above restricted fund). The fund was fully written off during the year as the van was sold.

EMPLOYMENT FUND

This fund was set up by the Directors in March 2016 to support the organisational priorities of increasing the diversity of freelance artists and facilitators, talent development and staffing expansion plans as required.

ENGAGEMENT FUND

This fund was set up by the Directors in March 2016 to help reduce the barriers to engagement for audiences and participants from under represented communities. This includes funds to address the cultural education challenge in schools including the development of a Rochdale Cultural Education Partnership.

ASSET REPLACEMENT FUND

This fund was set up by the Directors in 2016 to build up the necessary funding to replace and enhance M6's theatre equipment, IT systems, website and touring van as required to achieve our highest quality experience ambition and environmental sustainability objective of lower carbon footprint.

PARTICIPATORY PROJECTS

This fund was set up by the Directors in March 2017 to support organisational sustainability and build up the necessary match funding for the continuation of M6's expanded participatory programme. Movement in the year provides the funding necessary to deliver part of the 2021-22 programme.

Transfers between funds

Inter-fund transfers allocate discretionary Board-approved designations, contribute funds to specific projects to fully offset costs and/or allocate staff costs to specific projects.

continued...

Page 24

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

17. MOVEMENT IN FUNDS - continued

Transfers between funds - continued

During the year ended 31 March 2020 a temporary transfer amounting to £4,988 was made from general funds to the restricted Aiming High fund to cover expenditure out of general funds made in excess of grants received pre year end. This transfer was reversed in year ended 31 March 2021 when additional grant income was received.

18. RELATED PARTY DISCLOSURES

The value of transactions, with persons connected to M6 staff, incurred during the year, at market value or under, amounted to £13,963. Three members of the board of trustees are employed by RMBC, a grant in- kind provider. There were no other related party transactions for the year ended 31 March 2021.

Page 25

M6 THEATRE COMPANY LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

INCOME
Donations and grants
Grants receivable
Gifts in kind
HMRC JRS grant
Investment income
Deposit account interest
Charitable activities
Fees and box office
Other income
Other income
Film/theatre tax relief receivable
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Social security
Pensions
Marketing
Production fees
Tour costs
Sets and costumes
Administration
Asset costs
Freelance administration
Studio Theatre use
Depreciation
Loss/(profit) on sale of assets
Support costs
Management
Board meetings
Governance costs
Auditors' remuneration
Auditors' remuneration for non audit work
Bank charges
Total resources expended
Net income		 2021
£
321,560
58,882
44,497
424,939
81
23,030
-
23,030
41,283
489,333
197,416
13,124
7,112
9,962
56,530
1,212
7,935
18,133
27,029
150
58,882
55,510
516
453,511
-
1,710
4,280
544
6,534
460,045
29,288		 2020
£
495,525
51,396
-
546,921
79
56,422
45
56,467
54,800
658,267
234,531
10,388
13,934
15,871
57,923
9,544
5,526
26,883
25,728
1,830
51,396
27,026
(1,657)
478,923
1,073
1,080
3,105
272
4,457
484,453
173,814

This page does not form part of the statutory financial statements

Page 26