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2024-03-31-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 2024

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 2024

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 to 14
Cash Flow Statement 15
Notes to the Cash Flow Statement 16
Notes to the Financial Statements 17 to 24

M6 THEATRE COMPANY LIMITED

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2024

TRUSTEES S J Whitehead A Jackson F Fogarty J Welsby (resigned 28.9.23) N Gloudon N Akhtar S J De Courcey R L Mcbride L Coluccio (appointed 14.10.23) R J Lyons (appointed 7.3.24) S Maxwell (appointed 7.3.24)

COMPANY SECRETARY L A Rodwell REGISTERED OFFICE Studio Theatre Hamer Community 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 2024

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 2024. 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 2024

ACHIEVEMENT AND PERFORMANCE

THE DIFFERENCE WE MADE 2023/2024

Providing accessible, dynamic and memorable theatre and theatre related activities to children and young people, not just in our home town of Rochdale, but all across the country, have been paramount priorities for the M6 team during the past year.

Our heart-warming productions have been warmly welcomed by local children, young people, families and teachers in primary and secondary schools and community settings across the borough and, further afield, our key theatre venue partners valued our work that moved, inspired and rewarded audiences of all ages.

We have continued to ensure theatre remains accessible to all audiences, particularly during the current cost of living crisis. We have maximised a range of access initiatives including free and subsidised rates for schools, pay-what-you-feel performances in our Studio Theatre, bursaries for Youth Theatre participants and free performances across Rochdale borough.

Our amazing, vibrant Youth Theatre members showcased their talents in their annual performances, alongside making new friends, learning new skills and creating new stories.

With our hometown of Rochdale being granted Priority Place status by Arts Council England, we have played an active role in the partnerships, initiatives and programmes emerging in the borough - engaging with new audiences, new partners and new places across the town.

In 2023-2024 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 commitment, talent and support.

Moving forwards, we pledge to continue to maximise Rochdale Priority Place investment, and with our partners in the area, make a positive difference to the lives of local children and young people through excellent creative engagement, alongside maintaining our vital place in the national Theatre for Young Audiences sector.

OUR YEAR IN NUMBERS

BENEFICIARY FEEDBACK

"She has grown in confidence and self-esteem. She loves attending, it's the highlight of her week."- Youth Theatre parent

"I learnt that I can do anything that I put my mind to." - Youth Theatre participant

"A new to English boy in my class 'lit up' on this visit. Loving the smile on his face and his efforts to speak to the other children." - St. Peter's CE Teacher on Linking Schools

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M6 THEATRE COMPANY LIMITED (REGISTERED NUMBER: 01321359)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

"The children very rarely see live shows unless we (the school) offer them the opportunity. The wonder on the children's faces was priceless." - Kentmere Academy Teacher on Nest

"The most amazing show I've ever watched, I'd watch it again." - Audience member aged 9 on Nest

"These projects are definitely needed to give a platform for us to be heard." - Outreach participant, Women of Rochdale project

HIGHLIGHTS

Our brand new play Nest toured to primary schools across Rochdale in summer and venues across the UK in the autumn. Filled with clowning, original songs and beautiful shadow play, Nest told a tale about taking care, discovering what's important and learning how to fly. Over 81 performances, 5,866 audience members saw the show.

Children from culturally different backgrounds in 23 Rochdale primary schools came to M6 Studio to watch Nest and take part in workshops as part of the Rochdale Linking Schools project, building respect and understanding and creating their "wishes for the world".

We began to research and develop a new piece for secondary school aged audiences, The Incident, about healthy relationships, consent and coercive control. After a week's rehearsal with a cast of two actors, a writer, director and facilitator, we undertook 10 creative consultation sessions with 163 young people across the borough. Their vital insight will be used to inform the final play, which will tour next year.

We were invited to be part of Rochdale Council's first annual Feel Good Family Picnics, which took place in four different parks across the borough. Our Youth Theatre members provided street theatre entertainment, and we also remounted and performed The Street Where I Live. 89% of those that saw The Street Where I Live had never seen an M6 show before.

We also took The Street Where I Live further afield to perform at the East Manchester Community Festival, as part of The Den programme produced by the Royal Exchange Theatre.

We continued to deliver Speech Bubbles in two local primary schools. This drama-based programme supports children in KS1 to develop their communication skills. Teachers noticed improvements back in class in 95% of the children.

We shared our digital Curriculum for Life plays with schools across the borough, facilitating workshops which used the digital resources to support young people's mental health and schools' PSHE agenda. The Storm, Clueless and Hench workshops happened in 8 schools with 200 young people seeing the films and participating in the accompanying workshops.

In summer we delivered an Arts Award Summer School in partnership with Barnardo's; 16 participants living with a disability achieved a Discover Arts Award.

Following the success of last year, we again 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, and Poet Abhijeet Singh. Inspired by Nest, students wrote their own poems about nature. These poems where shared at a celebration event hosted at M6 Theatre and will be displayed at the Manchester Poetry Library in the summer.

On Friday 8 March, International Women's Day, we celebrated Rochdale Women's Voices, showcasing the creativity and power of young women. Working in partnership with Community Arts North West and Hopwood Hall College, M6 delivered weekly creative workshops from September exploring different art forms to enable participants to express their ideas and choose what they would like to showcase at the event. The group chose to work with photographer Ellie Waters to create an exhibition and songwriter Leah Wild to create an original song entitled Minutes. They also created a short film, audio pieces and a short theatre sketch with support from M6 Participation Director Caroline Kennedy. The event was a positive, uplifting celebration attended by key stakeholders from Greater Manchester and young people from the college. This project was funded through Lankelly Chase, Greater Manchester System Changers.

In the Autumn we delivered a theatre-based project with a group of young LGBTQIA+ people in partnership with The Proud Trust. The project focussed on transferable drama skills such as communication, teamwork and problem solving to enable participants to build confidence and share their stories.

Working in partnership with Barnardo's, we supported young people who have special educational needs and disabilities (SEND) to participate in our Act to Shine youth theatre group. Through weekly drama-based sessions, the young people created an incredible whodunnit, The Secret of Smallberry Hall, which 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.

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M6 THEATRE COMPANY LIMITED (REGISTERED NUMBER: 01321359)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

We continued our three 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 June 2023 and March 2024. Each group worked with highly skilled facilitators to create their own original production.

Year 11-13 Felicitous Fables

Far away, in the place where stories are kept, a group of travellers arrive, each carrying a story they hope to share. Tales that must be shared, stories for now, for us, stories that demand to be told.

Year 7-10 The Black Cloud

It started with a cloud. A dark cloud. A black cloud. Nobody suspected a thing. Two worlds, one cloud and a dangerous possibility. Three unlikely saviours quest to banish the black cloud from both worlds. They meet elves, goblins and hybrids but who will help and who will hinder?

Year 4-6 Spells, Elves and Anything In Between

It's the day of the annual spells, elves and anything in between contest but the train journey there promises to be anything but harmonious! Will the witches play nice? Will the elves behave? Will the magicians cause chaos or the gonks make mayhem? With tensions high between the groups, can the judges take control and get everyone to the competition in one piece? A comical, fantastical, theatrical journey about what it means to work together as a team.

We expanded our Talent Development programme and were able to support more emerging artists last year than ever before and: - We launched our Bright Ideas commission, offering seed funding, rehearsal space and mentorship for new to sector artists with a connection to Rochdale to create a 15 minute piece to be performed at the newly reopened Rochdale Town Hall as part of Rochdale Innovation and Ideas Festival. The recipients of the commission were Move Manchester, who created Zugzwang, a dynamic contemporary dance performance based on the highs, lows, wins and losses of a chess game, brought to life through a life-size chess board and two compelling characters.

FUTURE PLANS

Alongside a full participation programme for children and young people aged 8 to 18, M6 plan to mount the following theatre productions in 2024-2025:

A Tiger's Tale

A remount of one of our most popular productions, written by Olivier Award-winning Mike Kenny, will tour to schools and community settings in Rochdale and venues across the country this Autumn.

The Incident

Following our creative consultation with young people across the borough, The Incident will be developed into a full play to tour to local secondary schools in Spring 2025.

Even Stevens

Clowning and storytelling combine in this touching tale which will perform at outdoor festival settings across the borough this summer.

Page 5

M6 THEATRE COMPANY LIMITED (REGISTERED NUMBER: 01321359)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

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 2024, the Company's financial activities resulted in a net surplus of unrestricted funds of £8,997 and net outflow of restricted funds of £30,155, creating an in-year deficit of £21,158.

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

Designated Reserves

As at 31 March 2024, the Company has designated reserves for future capital assets replacements of £60,000 which represents a net increase of £10,000.

Also as at 31 March 2024, the Company has designated reserves for employment costs of £35,000 and schools engagement initiatives of £25,000 for use in 2023-24 and beyond. Following a successful period of transition for the Company in the previous financial year, an unspent transition and sustainability fund of £15,000 was redistributed amongst the other three designated funds.

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.

As at 31 March 2024 the Company had free reserves (i.e. cash at bank, and deposits and investments readily available and convertible to cash) amounting to £353,723. The level of free reserves held also exceeds six months' total expenditure (cash outflows) of the Company.

The Company has designated unrestricted reserves of £120,000 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.

Going concern

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

BALANCED RISK AND FUTURE PLANS

M6's Activity Plan FY25 builds on the strong developments made in FY24, recognises the value and necessity of M6 team continuity and balances operational/financial risk.

Our budget for FY25 includes new revenue streams and appropriate 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 FY25 is informed by our partners and community and supports the creative case for diversity, inclusion and increased access to local under-served communities including:-

Page 6

M6 THEATRE COMPANY LIMITED (REGISTERED NUMBER: 01321359)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

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 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.

A new participation team structure is currently being embedded; designed to increase organisational resilience and diversify the workforce.

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.

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 including :

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).

Page 7

M6 THEATRE COMPANY LIMITED (REGISTERED NUMBER: 01321359)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

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.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 26 September 2024 and signed on its 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 2024 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:

-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.

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.

Page 10

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

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

26 September 2024

Page 11

M6 THEATRE COMPANY LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024

2024
Unrestricted
Restricted
Total
funds
funds
funds
Notes
£
£
£
INCOME FROM
Donations and grants
2
366,116
46,265
412,381
Charitable activities
4
Charitable activities
16,413
33,426
49,839
Investment income
3
3,110
-
3,110
Other income
5
140,066
-
140,066
Total
525,705
79,691
605,396
EXPENDITURE ON
Charitable activities
6
Resources expended on charitable activities
444,192
182,362
626,554
NET INCOME/(EXPENDITURE)
81,513
(102,671)
(21,158)
Transfers between funds
17
(72,516)
72,516
-
Net movement in funds
8,997
(30,155)
(21,158)
RECONCILIATION OF FUNDS
Total funds brought forward
374,640
37,863
412,503
TOTAL FUNDS CARRIED FORWARD
383,637
7,708
391,345		 2023
Total
funds
£
321,894
46,801
666
118,134
487,495
570,782
(83,287)
-
(83,287)
495,790
412,503

The notes form part of these financial statements

Page 12

M6 THEATRE COMPANY LIMITED (REGISTERED NUMBER: 01321359)

BALANCE SHEET 31 MARCH 2024

Unrestricted
Restricted
funds
funds
Notes
£
£
FIXED ASSETS
Tangible assets
13
29,912
7,640
CURRENT ASSETS
Debtors
14
287,044
-
Cash at bank and in hand
105,744
70
392,788
70
CREDITORS
Amounts falling due within one year
15
(39,065)
-
NET CURRENT ASSETS
353,723
70
TOTAL ASSETS LESS CURRENT LIABILITIES
383,635
7,710
NET ASSETS
383,635
7,710
FUNDS
17
Unrestricted funds
Restricted funds
TOTAL FUNDS		 2024
Total
funds
£
37,552
287,044
105,814
392,858
(39,065)
353,793
391,345
391,345
383,635
7,710
391,345		 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

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2024.

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

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

The notes form part of these financial statements

continued...

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M6 THEATRE COMPANY LIMITED (REGISTERED NUMBER: 01321359)

BALANCE SHEET - continued 31 MARCH 2024

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

The financial statements were approved by the Board of Trustees and authorised for issue on 26 September 2024 and were signed on its behalf by:

S J Whitehead - Trustee

N Gloudon - Trustee

The notes form part of these financial statements

Page 14

M6 THEATRE COMPANY LIMITED

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash used in 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		 2024
£
(114,038)
(114,038)
(5,888)
3,110
(2,778)
(116,816)
222,630
105,814		 2023
£
(55,591)
(55,591)
(10,074)
666
(9,408)
(64,999)
287,629
222,630

The notes form part of these financial statements

Page 15

M6 THEATRE COMPANY LIMITED

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024

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

Net expenditure 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 in creditors
Net cash used in operations		 2024
£
(21,158)
39,532
-
(3,110)
(143,647)
14,345
(114,038)		 2023
£
(83,287)
52,851
85
(666)
(27,547)
2,973
(55,591)

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.23 Cash flow At 31.3.24
£ £ £
Net cash
Cash at bank and in hand 222,630 (116,816) 105,814
222,630 (116,816) 105,814
Total 222,630 (116,816) 105,814

The notes form part of these financial statements

Page 16

M6 THEATRE COMPANY LIMITED

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

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

continued...

Page 17

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

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 grants

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.

2. DONATIONS AND GRANTS

Grants receivable
Gifts in kind		 2024
£
347,686
64,695
412,381		 2023
£
263,759
58,135
321,894

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.

4.

5.

INVESTMENT INCOME

2024 2023
£ £
Deposit account interest 3,110 666
INCOME FROM CHARITABLE ACTIVITIES
2024 2023
Activity £ £
Fees and box office Charitable activities 49,839 46,801
OTHER INCOME
2024 2023
£ £
Film/theatre tax relief receivable 140,066 118,134

continued...

Page 18

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

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
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)
£
619,194		 Support
costs (see
note 8)
Totals
£
£
7,360
626,554
2024
2023
£
£
321,473
311,976
10,341
11,320
54,475
37,750
12,681
9,473
16,031
11,143
55,424
40,143
17,519
19,907
64,695
58,135
27,023
11,198
39,532
52,851
-
85
619,194
563,981
Governance
costs
£
7,360

Governance costs of £7,360 are made up of £2,115 audit and £4,745 accounts preparation and £500 bank charges.

9. NET INCOME/(EXPENDITURE)

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

2024 2023
£ £
Auditors' remuneration 2,115 1,965
Auditors' remuneration for non audit work 4,745 4,405
Depreciation - owned assets 39,532 52,851
Deficit on disposal of fixed assets - 85

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2023.

continued...

Page 19

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

11. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
Four key personnel received total emoluments of £163,526 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
271,414
Charitable activities
Charitable activities
43,047
Investment income
666
Other income
118,134
Total
433,261
EXPENDITURE ON
Charitable activities
Resources expended on charitable activities
429,176
NET INCOME/(EXPENDITURE)
4,085
Transfers between funds
(16,440)
Net movement in funds
(12,355)
RECONCILIATION OF FUNDS
Total funds brought forward
386,995
TOTAL FUNDS CARRIED FORWARD
374,640		 2024
£
290,335
17,021
14,117
321,473
2024
10
Restricted
funds
£
50,480
3,754
-
-
54,234
141,606
(87,372)
16,440
(70,932)
108,795
37,863		 2023
£
282,048
16,905
13,023
311,976
2023
10
Total
funds
£
321,894
46,801
666
118,134
487,495
570,782
(83,287)
-
(83,287)
495,790
412,503

continued...

Page 20

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

13. TANGIBLE FIXED ASSETS

COST
At 1 April 2023
Additions
At 31 March 2024
DEPRECIATION
At 1 April 2023
Charge for year
At 31 March 2024
NET BOOK VALUE
At 31 March 2024
At 31 March 2023
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
Accrued expenses
Deferred income		 Motor
vehicles
Equipment
£
£
39,765
293,276
-
5,888
39,765
299,164
24,541
237,304
4,987
34,545
29,528
271,849
10,237
27,315
15,224
55,972
2024
£
5,857
264,576
7,027
9,584
287,044
2024
£
15,504
4,346
12,548
6,667
39,065		 Totals
£
333,041
5,888		 Totals
£
333,041
5,888
338,929
261,845
39,532
301,377
37,552
71,196
2023
£
5,460
124,510
2,548
10,879
143,397
2023
£
2,690
5,513
8,517
8,000
24,720

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.

16. LEASING AGREEMENTS

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

2024 2023
£ £
Between one and five years 4,500 2,864

continued...

Page 21

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

17. MOVEMENT IN FUNDS

Net
movement
At 1.4.23
in funds
£
£
Unrestricted funds
General fund
374,640
81,511
Restricted funds
Capital Development Fund
3,429
(343)
RALP - Capital
3,046
(305)
Participatory Projects
-
(39,932)
Aiming High Capital
30,993
(29,180)
Tudor Trust Wellbeing
395
(325)
Nest
-
(32,584)
37,863
(102,669)
TOTAL FUNDS
412,503
(21,158)
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
525,704
Restricted funds
Capital Development Fund
-
RALP - Capital
-
Participatory Projects
33,686
Aiming High Capital
-
Tudor Trust Wellbeing
-
Nest
46,006
79,692
TOTAL FUNDS
605,396		 Transfers
between
At
funds
31.3.24
£
£
(72,516)
383,635
-
3,086
-
2,741
39,932
-
-
1,813
-
70
32,584
-
72,516
7,710
-
391,345
Resources
Movement
expended
in funds
£
£
(444,193)
81,511
(343)
(343)
(305)
(305)
(73,618)
(39,932)
(29,180)
(29,180)
(325)
(325)
(78,590)
(32,584)
(182,361)
(102,669)
(626,554)
(21,158)		 At
31.3.24
£
383,635
3,086
2,741
-
1,813
70
-
7,710
391,345
(102,669)
(21,158)

Comparatives for movement in funds

Unrestricted funds
General fund
Restricted funds
Capital Development Fund
RALP - Capital
Participatory Projects
Aiming High Capital
Tudor Trust Wellbeing
TOTAL FUNDS		 Net
movement
At 1.4.22
in funds
£
£
386,995
4,085
3,810
(381)
3,385
(339)
23,557
(39,997)
77,243
(46,250)
800
(405)
108,795
(87,372)
495,790
(83,287)		 Transfers
between
funds
£
(16,440)
-
-
16,440
-
-
16,440
-		 At
31.3.23
£
374,640
3,429
3,046
-
30,993
395
37,863
412,503

continued...

Page 22

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

17. MOVEMENT IN FUNDS - continued

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

Unrestricted funds
General fund
Restricted funds
Capital Development Fund
RALP - Capital
Participatory Projects
Aiming High Capital
Tudor Trust Wellbeing
Sunflowers & Sheds
The Street Where I Live
TOTAL FUNDS		 Incoming
resources
£
433,261
-
-
39,234
-
-
14,000
1,000
54,234
487,495		 Resources
Movement
expended
in funds
£
£
(429,176)
4,085
(381)
(381)
(339)
(339)
(79,231)
(39,997)
(46,250)
(46,250)
(405)
(405)
(14,000)
-
(1,000)
-
(141,606)
(87,372)
(570,782)
(83,287)

RESERVES - RESTRICTED FUNDS

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 equipment purchased.

RALP - Capital

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.

Participatory Projects

M6's annual participatory programme in 2023-2024 was funded by a range of small grants including BBC Children In Need; Heywood, Middleton and Rochdale CCG (Creative Ways to Wellbeing) 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 & films shared with local community.

Aiming High Capital

Key investment from Arts Council England to support M6's strategic ambitions for environmentally friendly technical touring equipment, digital infrastructure developments and increased accessibility.

Investment commenced in 2019 and was completed at the end of March 2021. M6 match funded from designated asset replacement reserves and RBC contributed 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.

Nest

M6's Nest 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, community performances in Rochdale, and 20 days of workshops and performances at M6 Studio Theatre where two local schools came together to watch a performance and create their "Wishes for the World"

continued...

Page 23

M6 THEATRE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

17. MOVEMENT IN FUNDS - continued

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 2024 from the Transition and Sustainability fund to support future expansion.

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 was augmented in 2024 from the Transitional and Sustainability fund, to support local Priority Place developments in 2024 and beyond.

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 was augmented in 2024 to ensure we have the match funding level necessary for significant investment to realise our green ambitions.

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 team expansion in 2023 and 2024. Following a successful transition period, the £15,000 which remained in this fund was redistributed to the other three designated reserves.

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 2024.

19. DESIGNATED FUNDS

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


01/04/23
Movement in
year
31/03/24
£ £ £
Designated Employment Fund 30,000 5,000 35,000
Designated Engagement Fund 20,000 5,000 25,000
Designated Transition & Sustainability Fund 15,000 (15,000) -
Designated Asset Replacement Fund 50,000 10,000 60,000
115,000 5,000 120,000

Page 24