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2023-03-31-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 2023

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 2023

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 24

M6 THEATRE COMPANY LIMITED

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2023

TRUSTEES S J Whitehead R Parker (resigned 28.9.22) M Gott (resigned 28.9.22) A Jackson F Fogarty J Welsby N Gloudon N Akhtar S J De Courcey R L Mcbride M Abdulaleem (resigned 28.10.22)

COMPANY SECRETARY L A Rodwell 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 (REGISTERED NUMBER: 01321359)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

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 2023. 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 aims, 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 (REGISTERED NUMBER: 01321359)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

STRATEGIC REPORT Achievement and performance

THE DIFFERENCE WE MADE 2022/2023

Bouncing back after the pandemic and making sure theatre remains accessible to all children and young people (CYP) have been paramount priorities for the M6 team during the past year.

We recommitted to prioritising CYP and families living in Rochdale and playing a key role developing a local cultural community with our partners, alongside maintaining our national profile and vital place in the Theatre for Young Audiences ecology.

Our heart-warming productions have been enthusiastically applauded in local schools by teachers and children and our key theatre venue partners valued our work that moved, inspired and rewarded audiences of all ages for their commitment to the live theatre experience.

To ensure theatre remains accessible to ALL audiences, particularly during the current cost of living crisis, we maximised a range of access initiatives including subsidised rates for schools, Pay-What-You-Feel performances in our Studio Theatre and bursaries for Youth Theatre participants. M6 had planned to use some reserves to fund these activities in this financial year, but the actual deficit has been more favourable than anticipated.

Our amazing, vibrant Youth Theatre members continued to reconnect after months of isolation, much to the delight of their parents and carers, making new friends, learning new skills and creating new stories.

In November 2022 we were granted an uplift in funding from Arts Council England and remain in their National Portfolio of Organisations for 2023 - 2026; a testament to the value of M6's work.

Internally, M6 has undergone a transition over the last year. Our long-standing Managing Director / Joint CEO Debs Palmer stepped down after 17 years with the company, but continues to support in a Strategic Advisor capacity. We thank Debs for her extraordinary commitment to M6 over the years, helping to cement our place as leaders in our field. Artistic Director Gilly Baskeyfield has taken on sole CEO responsibilities.

We worked hard to achieve our aims. We:

This document captures and shares the output and impact of the past year but none of this could have been achieved without the amazing people we work with. We thank our dedicated and highly skilled freelance artists, core staff, board members, partners and funders for their resilience, adaptability and commitment.

As we move forward in Rochdale Borough, at a time of enormous economic challenges for local families, we pledge to play our part in maximising the potential of Priority Place investment and partnerships to collectively make a positive difference to the lives of local children and young people through excellent creative engagement.

OUR YEAR IN NUMBERS

Page 3

M6 THEATRE COMPANY LIMITED (REGISTERED NUMBER: 01321359)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

BENEFICIARY FEEDBACK

"We need more M6 in this big bad world." - Audience member (Sunflowers & Sheds)

"The best school trip I've taken part in for over 14 years! It has had a major impact on me as a teacher." -Teacher on Rochdale Linking Schools Project

"Our first family theatre trip - AMAZING!" - Audience member (Sunflowers & Sheds)

"[YP] came to us a year ago with huge issues and for him to partake in this is an amazing achievement." - Parent/Carer Youth Theatre

"M6 is a safe environment away from their school issues which they look forward to every week." - Parent/Carer Youth Theatre

"I was smiling for every moment!" - Audience member aged 8, Rochdale Central Library (The Street Where I Live)

HIGHLIGHTS

We continued our tour of Pebble on the Beach in association with The North Wall, Oxford, which originally started in January 2022. 722 audience members enjoyed 15 shows in this financial year, including a residency at The North Wall. The play and themes of overcoming fear resonated with post-Covid audiences.

We remounted our production of Sunflowers & Sheds in the Autumn to tour to local primary schools and national venues including The Lowry, Salford; Octagon Theatre, Bolton; Lyric, Hammersmith and Birmingham Rep, playing to 4,573 people. This was a poignantly timed remount as the character in the play, Isabella, is of Ukranian heritage and misses her family. We hosted a Community Performance at M6 Studio Theatre to raise money for the Pakistani Flood Appeal and closed the tour with a fundraiser performance for the Ukrainian Appeal at Rochdale Ukrainian Centre.

Children from culturally different backgrounds in 20 Rochdale primary schools came to M6 Studio Theatre to watch Sunflowers & Sheds and take part in workshops as part of the Rochdale Linking Schools project, building respect and understanding and creating their "wishes for the world".

As part of our Talent Development programme M6 supported Chrissy Jones, an emerging artist living with a learning disability. M6 Participation Director, Caroline Kennedy, directed Chrissy's new performance Shadow Girl Origins. Shadow Girl is a new adventure story for children aged 8-12 and their families about a girl with a vivid imagination. Incorporating Makaton and puppetry, it is a playful show about friendship, growing up and what it means to be brave. The performance toured to Manchester libraries and community centres, Mind The Gap (Bradford) and M6 Studio Theatre (Rochdale).

We provided seed funding for Stute Theatre to create their new show, Cardboard Cosmos, a play for children and families which includes a gentle alien encounter and a sustainable message. We also helped Stute to secure a Rochdale venue for their tour, and a local schools audience.

On Friday 10 March 2023, we celebrated Rochdale Women's Voices, showcasing the creativity and power of women of all generations in Rochdale. M6 have been working with a group of Hopwood Hall College students alongside Community Arts North West and film maker Leah Olwen Llewellyn to create a short film, The Power Within, plus accompanying behind-the-scenes documentary, Behind the Masks, exploring women's empowerment and leadership. This project was supported through the Rochdale social prescribing project.

We remounted our production of The Street Where I Live and toured to primary schools, nurseries and community spaces, including local libraries, across the Rochdale borough, reaching 2,226 audience members. The Street Where I Live showcased stories that share the warmth and diversity of a unique community and capture the friendships, adventures and surprises. Each child that watched the production received a free specially created storybook to take home, enabling them to revisit the story as often as they like, and share with their friends and family.

This year we had the pleasure of being the cultural partner in the Comino Poet in Residence Project. The project connects schools with poets and cultural partners to collaborate on the creation of a poetry project for young people. We worked with Year 7 Falinge Park students, Simon De Courcey, Poet Carson Wolfe and Radhaika Kapur from Common Word. Inspired by The Street Where I Live, students wrote their own poems about community, diversity and belonging. These poems were shared at a celebration event hosted at M6 Studio Theatre and will be displayed in the Manchester Poetry Library in summer 2023.

Taking inspiration from Bird Behaviour, one of the winning entries of M6's lockdown writing competition, we began to research and develop a new show, Nest, a tale about taking care, discovering what's important and learning how to fly, which will tour in 2023.

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M6 THEATRE COMPANY LIMITED (REGISTERED NUMBER: 01321359)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

We continued to deliver Speech Bubbles in three local primary schools. This drama-based programme supports children in KS1 to develop their communication skills. Teachers noticed improvements back in class in 90% of the children.

Working in partnership with Barnardo's, we supported young people living with a disability label to participate in our Act to Shine Youth Theatre group. Through weekly drama-based sessions, the young people explored and shared their relationship with the online world to create an incredible piece of theatre, Tik Tok Boom!, which was shared at M6 Studio Theatre in April 2022. In the summer term the group participated in a puppetry workshop which sparked their interest and led to them commissioning puppets to be made for the performance Forest Fables in March 2023. For the first time the group performed over two evenings, firstly to friends and family and then to an audience of other young people who access Short Breaks through Barnardo's.

We continued our four diverse, inclusive Youth Theatre groups. The groups are for young people aged 8-18 to participate in weekly drama-based workshops, developing their performance and theatre-making skills, resulting in performances and sharing events in April and June 2022.

Year 11-13 group participated in National Theatre Connections project, performing Remote by Stef Smith at M6 Studio Theatre and HOME in Manchester.

Year 7-10 group held an intimate sharing event with their parents, showcasing the physical theatre piece they had developed based on their school experiences. The group also enjoyed skills sessions in puppetry with Andrew Kim, beatboxing with James Taylor and playwriting with Liz Mytton. In March 2023 they took to the stage again, sharing their devised performance 4 Villains, 3 Stories and a Bunch of Nomads about a travelling bunch of storytellers with some cautionary tales.

Year 4-6 W group shared their devised performance, Random Acts, with friends and family at M6 Studio Theatre.

Year 4-6 T group created a comedy piece, The Island, which was enjoyed by friends and family at M6 Studio Theatre.

FUTURE PLANS

Alongside a full participation programme for children and young people aged 8 to 18, M6 plans to mount the following theatre productions in 2023-2024:

Nest Ages 3+

A bird's eye view of the things that matter. Touring to schools in summer 2023 and to national venues in the autumn.

The Incident

A new Curriculum for Life piece for secondary aged pupils looking at themes of consent and misogyny.

Curriculum for Life Digital Programme

Share our digital extant Curriculum for Life productions, The Storm, Clueless and Hench, to secondary schools and youth support organisations.

We will continue to prioritise children and young people in our community of Rochdale; playing a key role in developing and delivering the strategies, partnerships and initiatives that are emerging as part of Rochdale's Priority Place status, as well as ensuring our organisation reflects the demographic of our hometown.

Page 5

M6 THEATRE COMPANY LIMITED (REGISTERED NUMBER: 01321359)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

STRATEGIC REPORT

Financial review

Review of the transactions and financial position of the company

M6 is revenue funded by the Arts Council England. The company is a charity and is reliant on the support of Trusts, Foundations and sponsors to fund activity. Rochdale Borough Council provide in kind funding annually which provides a dedicated 90-seater Studio Theatre which serves as M6's base in Rochdale.

For the financial year ended 31 March 2023, the Company's financial activities resulted in a net outflow of unrestricted funds of £12,355 and net outflow of restricted funds of £70,932, creating an in-year deficit of £83,287.

Details of these funds are shown in note 17 to accounts.

M6 had budgeted to make a £100,000 deficit in the 2022/23 financial year, utilising designated and restricted reserves to subsidise the programme and make it as accessible as possible to children, young people and families in a challenging economic environment, and to invest in organisational development during a key period of transition. The actual outturn has been more favourable at £83k deficit, through a combination of strong financial management, effective fundraising and adapting programme delivery where feasible.

Designated Reserves

As at 31 March 2023, the Company has designated reserves for future capital assets replacements of £50,000. This represents a net decrease from the previous year end of £5,000.

Also as at 31 March 2023, the Company has designated reserves for employment costs of £30,000, schools engagement initiatives of £20,000 and transition and sustainability fund of £15,000 for use in 2023-24 and beyond.

We utilised £55,000 of designated reserves in this financial year to support programme delivery and organisational transition.

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, but is done so as to maximise the protection offered by the Financial Services Compensation Scheme (FSCS).

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, in the event of the company being wound up.

The Company has designated unrestricted reserves of £115,000 in respect of discretionary expenditure for asset replacement, employment and engagement which the Board has approved to be fully utilised in the forthcoming years.

As at 31 March 2023 the Company had free reserves amounting to £340,912.

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

Going concern

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

Page 6

M6 THEATRE COMPANY LIMITED (REGISTERED NUMBER: 01321359)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

STRATEGIC REPORT

Balanced risk and future plans

M6's Activity Plan 2023/24 builds on the strong developments made in 2022/23, recognises the value and necessity of M6 team continuity and balances operational/financial risk.

Our budget for 2023/24 includes new revenue streams and sufficient contingency. Programme costs are scalable through quarterly forecasting and decision making to mitigate risk.

Whilst we plan to use designated reserves as indicated to progress the achievement of the Company's objectives, we will prioritise the retention of levels of free reserves to prudently cover operating costs as is necessary for sustainability.

Our Activity Plan 2023/24 is informed by our partners and community and supports the creative case for diversity, inclusion and increased access to local under-served communities including:-

-Co-creating and sharing excellent original professional theatre productions for children, young people and families locally and nationally.

-Presenting a year-long multi-strand Participation Programme of four youth theatres, creative outreach projects, skills sharing, work placements, behind the scenes films and sharing events online and live.

-Putting plans in place so our workforce better reflects our local community in Rochdale Borough.

-Actively championing cultural education and the unique role creative engagement plays in a variety of voluntary sector, education and health networks and forums.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

M6 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 Artistic Director/CEO and Managing 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 the Company Administrator and Finance Officer roles, and recruiting an additional part-time staff member in the Participation team. In the last year M6's long-standing Managing Director/CEO retired but continues to support the organisation in a freelance Strategic Advisor role. The Artistic Director took on sole CEO responsibility and the new Managing Director has benefited from an enhanced training package and Strategic Advisor support to ensure organisational stability during a period of significant change.

The Artistic Director/CEO is supported in strategic planning by the Production & Tour Director, Managing Director and Participation Director. Through the Annual Review process all team roles were reviewed, updated and salaries recalibrated to reflect necessary role developments.

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 18 to the accounts.

Page 7

M6 THEATRE COMPANY LIMITED (REGISTERED NUMBER: 01321359)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

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 any 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.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 28 September 2023 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 2023 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).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

-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.

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.

Page 10

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

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 2023

Page 11

M6 THEATRE COMPANY LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

2023
Unrestricted
Restricted
Total
funds
funds
funds
Notes
£
£
£
INCOME FROM
Donations and grants
2
271,414
50,480
321,894
Charitable activities
4
Charitable activities
43,047
3,754
46,801
Investment income
3
666
-
666
Other income
5
118,134
-
118,134
Total
433,261
54,234
487,495
EXPENDITURE ON
Charitable activities
6
Resources expended on charitable activities
429,176
141,606
570,782
NET INCOME/(EXPENDITURE)
4,085
(87,372)
(83,287)
Transfers between funds
17
(16,440)
16,440
-
Net movement in funds
(12,355)
(70,932)
(83,287)
RECONCILIATION OF FUNDS
Total funds brought forward
386,995
108,795
495,790
TOTAL FUNDS CARRIED FORWARD
374,640
37,863
412,503		 2022
Total
funds
£
407,494
68,532
78
100,000
576,104
552,338
23,766
-
23,766
472,024
495,790

The notes form part of these financial statements

Page 12

M6 THEATRE COMPANY LIMITED (REGISTERED NUMBER: 01321359)

BALANCE SHEET 31 MARCH 2023

Unrestricted
Restricted
funds
funds
Notes
£
£
FIXED ASSETS
Tangible assets
13
33,728
37,468
CURRENT ASSETS
Debtors
14
143,397
-
Cash at bank and in hand
222,235
395
365,632
395
CREDITORS
Amounts falling due within one year
15
(24,720)
-
NET CURRENT ASSETS
340,912
395
TOTAL ASSETS LESS CURRENT LIABILITIES
374,640
37,863
NET ASSETS
374,640
37,863
FUNDS
17
Unrestricted funds
Restricted funds
TOTAL FUNDS		 2023
Total
funds
£
71,196
143,397
222,630
366,027
(24,720)
341,307
412,503
412,503
374,640
37,863
412,503		 2022
Total
funds
£
114,058
115,850
287,629
403,479
(21,747)
381,732
495,790
495,790
386,995
108,795
495,790

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

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

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 2023 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 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Purchase 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		 2023
£
(55,591)
(55,591)
(10,074)
666
(9,408)
(64,999)
287,629
222,630		 2022
£
10,687
10,687
(2,163)
78
(2,085)
8,602
279,027
287,629

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 2023

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
Net (expenditure)/income for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
Depreciation charges
Loss on disposal of fixed assets
Interest received
Increase in debtors
Increase/(decrease) in creditors
Net cash (used in)/provided by operations		 2023
£
(83,287)
52,851
85
(666)
(27,547)
2,973
(55,591)		 2022
£
23,766
56,365
-
(78)
(46,962)
(22,404)
10,687

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.22 Cash flow At 31.3.23
£ £ £
Net cash
Cash at bank and in hand 287,629 (64,999) 222,630
287,629 (64,999) 222,630
Total 287,629 (64,999) 222,630

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 2023

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.

Critical accounting judgements and key sources of estimation uncertainty

In the process of applying the entity's accounting policies management have not made any judgements that would have a significant effect on the amounts recognised in the financial statements. No estimations have been made that would have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

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 Company 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

Page 16

continued...

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

1. ACCOUNTING POLICIES - continued

Taxation

The Company 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.

Restricted funds can only be used for particular restricted purposes within the charitable objects of the Company. 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		 2023
£
263,759
58,135
-
321,894		 2022
£
325,546
54,286
27,662
407,494

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

2023 2022
£ £
666 78

continued...

Page 17

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

4. INCOME FROM CHARITABLE ACTIVITIES

Activity
Fees and box office
Charitable activities
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
Theatre use, facilities management company charge
Depreciation
Surplus on disposal of fixed assets
8.
SUPPORT COSTS
Resources expended on charitable activities		 Direct
Costs (see
note 7)
£
563,981		 2023
2022
£
£
46,801
68,532
2023
2022
£
£
118,134
100,000
Support
costs (see
note 8)
Totals
£
£
6,801
570,782
2023
2022
£
£
311,976
291,149
11,320
13,509
37,750
46,460
9,473
23,105
11,143
18,168
40,143
19,515
19,907
22,623
-
781
58,135
54,286
11,198
-
52,851
56,365
85
-
563,981
545,961
Governance
costs
£
6,801

Governance costs of £6,801 are made up of £1,965 audit and £4,405 accounts preparation and £431 bank charges.

9. NET INCOME/(EXPENDITURE)

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

2023 2022
£ £
Auditors' remuneration 1,965 1,800
Auditors' remuneration for non audit work 4,405 4,035
Depreciation - owned assets 52,851 56,365
Deficit on disposal of fixed assets 85 -

continued...

Page 18

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

11. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
Four key personnel received total emoluments of £159,767 during the year.
The full time equivalent number of staff is 8.
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.
12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME FROM
Donations and grants
364,101
Charitable activities
Charitable activities
64,520
Investment income
78
Other income
100,000
Total
528,699
EXPENDITURE ON
Charitable activities
Resources expended on charitable activities
426,434
NET INCOME/(EXPENDITURE)
102,265
Transfers between funds
2,023
Net movement in funds
104,288
RECONCILIATION OF FUNDS
Total funds brought forward
282,707
TOTAL FUNDS CARRIED FORWARD
386,995		 2023
£
282,048
16,905
13,023
311,976
2023
10
Restricted
funds
£
43,393
4,012
-
-
47,405
125,904
(78,499)
(2,023)
(80,522)
189,317
108,795		 2022
£
263,411
14,853
12,885
291,149
2022
9
Total
funds
£
407,494
68,532
78
100,000
576,104
552,338
23,766
-
23,766
472,024
495,790

continued...

Page 19

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

13.
TANGIBLE FIXED ASSETS
COST
At 1 April 2022
Additions
Disposals
At 31 March 2023
DEPRECIATION
At 1 April 2022
Charge for year
Eliminated on disposal
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022
14.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Film/theatre tax relief
VAT
Prepayments
15.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
VAT
Accrued expenses
Deferred income		 Motor
vehicles
Equipment
£
£
39,765
283,844
-
10,074
-
(642)
39,765
293,276
18,352
191,199
6,189
46,662
-
(557)
24,541
237,304
15,224
55,972
21,413
92,645
2023
£
5,460
124,510
2,548
10,879
143,397
2023
£
2,690
5,513
-
8,517
8,000
24,720		 Totals
£
323,609
10,074
(642)
333,041
209,551
52,851
(557)
261,845
71,196
114,058
2022
£
10,130
100,000
-
5,720
115,850
2022
£
1,389
4,026
2,630
7,035
6,667
21,747

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

continued...

Page 20

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

16. LEASING AGREEMENTS

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

Between one and five years
17.
MOVEMENT IN FUNDS
Net
movement
At 1.4.22
in funds
£
£
Unrestricted funds
General fund
386,995
4,085
Restricted funds
Capital Development Fund
3,810
(381)
RALP - Capital
3,385
(339)
Participatory Projects
23,557
(39,997)
Aiming High Capital
77,243
(46,250)
Tudor Trust Wellbeing
800
(405)
108,795
(87,372)
TOTAL FUNDS
495,790
(83,287)
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
433,261
Restricted funds
Capital Development Fund
-
RALP - Capital
-
Participatory Projects
39,234
Aiming High Capital
-
Tudor Trust Wellbeing
-
Sunflowers & Sheds
14,000
The Street Where I Live
1,000
54,234
TOTAL FUNDS
487,495		 2023 2022
£ £
2,864 5,800
Transfers
between
funds
£
(16,440)
-
-
16,440
-
-
16,440
-
Resources
expended
£
(429,176)
(381)
(339)
(79,231)
(46,250)
(405)
(14,000)
(1,000)
(141,606)
(570,782)		 At
31.3.23
£
374,640
3,429
3,046
-
30,993
395
37,863
412,503
Movement
in funds
£
4,085
(381)
(339)
(39,997)
(46,250)
(405)
-
-
(87,372)
(83,287)

continued...

Page 21

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

17. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement
At 1.4.21
in funds
£
£
Unrestricted funds
General fund
282,707
102,265
Restricted funds
Capital Development Fund
4,233
(423)
RALP - Capital
3,761
(376)
Participatory Projects
56,930
(38,573)
Aiming High Capital
123,493
(46,250)
The Storm
-
2,023
Tudor Trust Wellbeing
900
(100)
Everything is connected
-
5,200
189,317
(78,499)
TOTAL FUNDS
472,024
23,766
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
528,699
Restricted funds
Capital Development Fund
-
RALP - Capital
-
Participatory Projects
32,954
Aiming High Capital
-
The Storm
8,251
Tudor Trust Wellbeing
-
Everything is connected
6,200
47,405
TOTAL FUNDS
576,104
RESERVES - RESTRICTED FUNDS		 Transfers
between
At
funds
31.3.22
£
£
2,023
386,995
-
3,810
-
3,385
5,200
23,557
-
77,243
(2,023)
-
-
800
(5,200)
-
(2,023)
108,795
-
495,790
Resources
Movement
expended
in funds
£
£
(426,434)
102,265
(423)
(423)
(376)
(376)
(71,527)
(38,573)
(46,250)
(46,250)
(6,228)
2,023
(100)
(100)
(1,000)
5,200
(125,904)
(78,499)
(552,338)
23,766

CAPITAL DEVELOPMENT FUND

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 associated equipment purchased.

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

Capital items supporting the Company'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 associated equipment purchased.

PARTICIPATORY PROGRAMME

continued...

Page 22

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

17. MOVEMENT IN FUNDS - continued

M6's annual participatory programme in 2022-23 was funded by a range of small grants including BBC Children In Need; NHS Integrated Care Partnership and Barnardo's to signpost to cultural activity opportunities Borough-wide and co-develop and deliver 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. and provide regular out-of-hours participatory drama based workshops for children and young people to build confidence, life and theatre skills through engagement in positive social activities, culminating in theatre productions and films 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.

TUDOR TRUST WELLBEING

Grant to support the wellbeing of M6 team during the pandemic, lockdown and recovery periods.

SUNFLOWERS & SHEDS

M6's Sunflowers & Sheds tour and Linking Schools programme connected to the show was part funded by NHS Integrated Care Partnership and RMBC Early Help & Schools. This included a local schools tour, tour to national theatre venues, 5 community performances in Rochdale, and 20 days of workshop and performances at M6 Studio Theatre where two local schools came together to watch a performance and create their "Wishes for the World".

THE STREET WHERE I LIVE

M6 received £1,000 from the Manchester Guardian Society Charitable Trust to support the tour of The Street Where I Live, which played in schools, nurseries, community spaces and libraries in February-March.

RESERVES - UNRESTRICTED FUNDS

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. The fund was augmented in 2022 for planned expansion due to demand in 2024 and beyond and was part utilised in 2022/23 to support with the recruitment of new staff and transition due to the retirement of long-standing Managing Director/CEO.

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 Local Cultural Education Partnership (LCEP) and has been augmented in 2022 to support local priority place developments in 2023 and beyond. In 2022/23 this fund was part utilised to engage under-represented new audiences and support access schemes such as Pay What You Feel performances, subsidised school fees and Youth Theatre bursaries.

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. The fund has been augmented in 2022 to ensure we have the match funding level necessary for significant investment in 2024 and beyond to realise our green ambitions. The fund was part utilised in 2023 to purchase a new Tallescope for Studio use.

TRANSITION AND SUSTAINABILITY FUND

This fund was set up by the Directors in March 2022 to support organisational sustainability during the transition of leadership and planned team expansion in 2023 and 2024. The fund has been part utilised for training and strategic support in 2023.

continued...

Page 23

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

17. MOVEMENT IN FUNDS - continued

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.

18. RELATED PARTY DISCLOSURES

One member of the board of trustees is employed by RMBC, a grant in kind provider. There were no other related party transactions for the year ended 31 March 2023.

19. DESIGNATED FUNDS

Included within unrestricted general funds are the following designated funds as determined by the board of trustees :-

01/04/22 Movement in
year		 31/03/23
£ £ £
Designated Employment Fund 55,000 (25,000) 30,000
Designated Engagement Fund 30,000 (10,000) 20,000
Designated Transition & Sustainability Fund 30,000 (15,000) 15,000
Designated Asset Replacement Fund 55,000 (5,000) 50,000
170,000 (55,000) 115,000

Page 24