2020-12-31-accounts

CTVC Limited

Company Registration Number: 1375941

Registered Charity Number: 276286

Report of the Trustees and Financial Statements

for the year ended

31 December 2020

CTVC Limited

Contents

Report of the Trustees	1-12
Reference and Administration	1-2
- Trustees, Committees and Professional advisors	1-2
- Company Information	1-2
Structure, Governance and Management	3-5
- Constitution	3
- Trustees' Responsibilities	4-5
- Risk Management and Internal control	5
Objectives and Activities	6-7
Achievements and Performance	7-10
Financial Review	11-12
Independent Auditor's Report	13-15
Statements of Financial Activities
Consolidated	16
Company	17
Balance Sheets
Consolidated	18
Company	19
Consolidated Cash Flow Statement	20
Notes to The Financial Statements	21-34

CTVC Limited

Report of The Trustees for the year ended 31 December 2020

Reference and Administration

The Directors who act as Trustees for the charitable activities of CTVC Limited present to the members their report and financial statements for the year ended 31 December 2020. The report and financial statements have been prepared in accordance with the Charities Statement of Recommended Practice (SORP), ‘Accounting and Reporting by Charities’ effective from 1 January 2015 (2nd Edition), the Companies Act 2006, the Charities Act 2011 and applicable UK accounting standards, including FRS 102 (issued March 2018).

Committee Trustee and Council Members: Membership Mr. A. E. Cowen, MRICS Resigned 15/03/2021 Mr A. N. R. Fleming Appointed 24/03/2021 The Rev'd M. A. Booth, MA (1) Mr. N. F. Buxton (2) Ms. L Clay Mr. D. C. Frearson Resigned 29/04/2020 Mr. G. C. King, MA, CA (1,2) Mr. J. R. Newton (2) Mr. M. D. B. Simon Advisors: Father Christopher Jamison OBD (1) Mr. P. F. Kafno, MA (1) Committees: Management (1) Audit (2)

Registered office:

12 Warwick Square, London, SW1V 2AA

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CTVC Limited

Report of The Trustees for the year ended 31 December 2020 (continued)

Reference and Administration	(continued)
Company Information:
Chief Executive Officer:	Miss. C. C. Matthews
Chief Operating Officer:	Mr. P. O. Connolly
Professional Advisors:
Auditor:	BDO LLP
	55 Baker Street, London, W1U 7EU
Bankers:	Barclays Bank plc
	27 Soho Square, London, W1D 3QR
Solicitors:	Paris Smith LLP
	Number 1 London Road, Southampton, SO15 2AE

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CTVC Limited

Report of The Trustees for the year ended 31 December 2020 (continued)

Structure, Governance and Management

Constitution

CTVC is a company limited by guarantee (registered number 1375941) governed by its Memorandum and Articles of Association, and a registered charity (registered number 276286). As a company limited by guarantee CTVC has no share capital, the liability of members is limited to £1 each in the event of CTVC being wound up.

Parent undertaking

The parent company is The Rank Foundation Limited (registered company number 516434), a registered charity (registered number 276976), whose address is : 12 Warwick Square, London, SW1V 2AA.

CTVC is a wholly controlled subsidiary of The Rank Foundation. The Rank Foundation prepares consolidated accounts, which incorporate the results of CTVC, and its subsidiary company (Hillside Productions Limited).

Appointments to the Board

The Rank Foundation has the right to appoint a majority of the Trustees and to remove any Trustees it appoints. Additional Trustees can be appointed either by the Board or by the members. Trustees are appointed on the basis of the particular skills required by the Board.

Subsidiary undertaking

CTVC has a wholly-owned trading subsidiary company which is incorporated in the United Kingdom, Hillside Productions Limited (registered number 1782130). Its principle activity is the making of media productions. Any profits of Hillside Productions Limited are donated to CTVC by way of qualifying charitable donation. A summary of Hillside Productions Limited's trading results for the year is shown in note 18.

Charity Governance Code

The Trustees are aware of the principles of good governance as set out in the Charity Governance code including the principles which were refreshed in 2020. Over the course of the coming year the Trustees will undertake a more detailed review to determine those principles which are most relevant.

Fundraising

Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. The legislation defines fund raising as “soliciting or otherwise procuring money or other property for charitable purposes.” Such amounts receivable are presented in the accounts as Income - Donations” and includes grants. However, CTVC does not undertake fundraising from the general public.

In relation to the above we confirm that there is no involvement of commercial participators, professional fundraisers, or third parties. The day to day management of all income generation is delegated to the executive team, who are accountable to the Trustees. Any solicitations would be managed internally.

The charity is not bound by any undertaking to any regulatory scheme and the charity does not consider it necessary to comply with any voluntary fundraising codes of practice.

No complaints have been received in relation to fundraising activities. The terms of employment require staff to behave reasonably at all times; as we do not approach individuals for funds we do not have a particular reference to fundraising activities nor do we consider it necessary to design specific procedures to monitor such activities.

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CTVC Limited

Report of The Trustees for the year ended 31 December 2020 (continued)

Structure, Governance and Management (continued)

Trustees' Responsibilities in relation to the Financial Statements

The Trustees (who are also Directors of CTVC for the purposes of company law) are responsible for preparing the Trustees’ Report 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 in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources,

In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and apply them consistently;

• make judgments and estimates that are reasonable and prudent;

• state whether applicable accounting standards, including FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and 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.

None of the Trustees had any beneficial interest in any contract to which the organisation was party during the year.

Trustees’ and Executive remuneration

Trustees’ remuneration, if any, is set by the Board and is based on the number of days required to perform their duties and to reflect the skills, knowledge and competences required for the professional services they provide. The Trustees’ remuneration is detailed in note 6 of the financial statements.

The remuneration of the senior executive staff is set by the Chairmans Committee of The Rank Foundation and the Management Committee approve the remuneration of the company’s other senior staff. The Trustees and senior executive staff comprise the charity’s key management personnel. Remuneration is set in the context of the charity’s purposes, aims and values and to reflect the skills, knowledge and competences required for executive roles.

Induction and training

All new Trustees receive on appointment an induction pack. This contains copies of the Governing documents, all committee constitutions, the previous year’s annual report and financial statements, a book detailing the history of the charity, and the group, and a profile of all Trustees and senior staff. Formal training is also provided as and when required or appropriate.

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CTVC Limited

Report of The Trustees for the year ended 31 December 2020 (continued)

Structure, Governance and Management (continued)

The Council of the Association (the Board) and Committees

The Board is responsible for leading and controlling CTVC. The Board achieves this by setting the long-term strategic direction of CTVC, preparing and adopting its medium-term business plans and annual budgets. The Board regularly monitors performance against budget, plans and key performance indicators. The Board is comprised solely of nonexecutive Trustees.

The Board has delegated specific responsibilities to the Management Committee whose purpose is to ensure the business of CTVC is conducted on a day to day basis within the limits delegated by the Board and in accordance with the policies and strategies prescribed by the Board.

An Audit Committee creates a formal conduit between the external auditor and the Board and advises on the content and presentation of the annual reports and financial statements. The Committee reviews audit plans and the external auditor’s management letter, and monitors implementation of actions required and satisfies itself as to the external auditor’s continuing independence. It has the authority to appoint, and to fix the remuneration of, the external auditor. The risk register is reviewed by the committee.

The Committees comprise members of the Board and may include advisers appointed for their specialist knowledge. The membership of the Committees is set out on page 1 of this report.

Risk management and Internal control

The Board has overall responsibility for the Group's system of risk management, internal control and for monitoring and reviewing the systems in place. Such systems cannot eliminate all risks, but the Board is satisfied that systems are robust and operate effectively. The principal risks identified and a summary of how they are managed are set out below:

Risk	Management of risk
Loss of CEO or key staff in a small organisation	Good level of salaries and benefits - benchmarked within the industry Documentation of systems and succession planning where possible
Securing commissions in a difficult business environment	Constant monitoring of broadcasters requirements. Development and submission of ideas with frequent contact with all potential commissioners
Business interruption - Coronavirus COVID19	The aim is to keep disruption to a minimum while preserving cash flows. Our new business plan, including financial modelling, has been approved by the Trustees
Failure of the Rank Foundation Limited's (RFL) investment policy causing loss of grant	RFL has experienced, financially competent Trustees in their investment committee; Professional advisors; Monitoring and control of RFL budgets and expenditure
Worsening of defined benefit pension scheme liabilities	RFL has guaranteed the funding of the scheme, and use their expertise assisting in assessing the performance of the advisors
Loss of reputation leading to loss of business	Careful monitoring of productions in order to recognise and manage potential damaging content

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CTVC Limited

Report of The Trustees for the year ended 31 December 2020 (continued)

Objectives and Activities

Objectives

The objects for which the Association is established are the advancement and promotion of the Christian religion and the advancement of Christian religious education of the public.

In furtherance of the objectives, the following are the lead powers given:

• to advance the public knowledge and understanding of the other historic world faiths with significant communities in the United Kingdom

• to promote the understanding of the shared values, traditions and practices of the Christian faith, and faiths referred to above and their application in a secular environment

to stimulate and motivate people to think about moral and spiritual issues in their everyday lives

The Trustees refer to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing its aims and objectives and in planning future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.

Our aim is to engage viewers, listeners and readers through all media with matters of religion, faith, morals and ethics from a perspective which respects those of all faiths and those with none.

Activities

Television

In order to achieve as wide an audience as possible, programme ideas are submitted to Commissioning Editors of all key channels. CTVC can also enter into co-production agreements with other independent companies and broadcasters in projects that reflect the aims of the charity.

Audio (Broadcast and Podcasts)

CTVC produces programmes mainly for BBC Radio networks. As with television, ideas are sent to Commissioning Editors for consideration. CTVC also produces 'thought-provoking and intelligent' speech radio for its podcast platform, Things Unseen. Other broadcasters, including Premier Radio and RTE, regularly transmit this content.

Digital (Education / New Media / Training)

“TrueTube.co.uk" is a BAFTA award-winning website which provides free films for secondary schools about moral, social and religious issues for use in form times, assemblies, PSHE, Citizenship, and Religious Education lessons. The films are short and ideal for lesson starters, provoking discussion and igniting students’ imaginations. Additionally, teachers’ notes, lesson plans, assembly scripts and interactive resources are provided to assist in using the films in a creative way.

CTVC also produce short films and resources for external clients including BBC Education, other charitable organisations and community outreach programmes. CTVC also fulfil media training contracts that are predominantly for the British Film Institute.

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CTVC Limited

Report of The Trustees for the year ended 31 December 2020 (continued)

Objectives and Activities (continued)

Alone Together

This online resource was created in response to the coronavirus pandemic and the day to day struggles affecting thousands of people in the UK. Working with Father Christopher Jamison OSB, a "Benedictine Monk", this specially created content did not come from theories; it came from those with vast experience of social distancing or isolation, people who live this reality either intentionally, like monks and nuns, or against their Will, like hostages. This is a new and difficult journey for most people but experienced guides gave hope along the way.

The Sunday Service

• TheSundayService.org is an online platform initially set up to help those isolated in their communities as a result of ill health or reduced mobility. Services are streamed live over the internet on a Sunday morning from 8 churches across the UK, to enable "worshipers" to participate in their local church services from the comfort of their own home, maintaining a connection to spiritual communities and to continue longstanding religious traditions. They services can also be watched at a late date via a recording link.

As the project developed, we discovered people from around the world also tuning in as a way to bring spiritual fulfilment into their lives, or just to keep connected with families and friends. The restrictions on church attendance in 2020 meant these services proved invaluable and on request, funerals and other key events were added. The number of views for 2020 totalled 35,900 (2019: 9,270).

Achievements and Performance

Industry Recognition / Awards :

Success in achieving our objectives can be shown in the quantity and quality of our output across all areas. We are pleased that our work has been recognised in the form of awards. Below are some of our achievements that were achieved in 2020:

Broadcast Digital Awards - Category, Multichannel Production Company Of The Year - CTVC Nominated Broadcast : - Best places to work in TV - CTVC shortlisted

Television

Dooman - Scottish BAFTA- Category - Best Single Documentary - Nominated

Audio

Entombed (Things Unseen) - British Podcast Awards - Category, Bullseye - Winner

• Hashtag Pray (BBC World Service) - Understanding Unbelief - Category, Media Award - Shortlisted

• The Right Thing: The Inseparable Twins (BBC World Service) - Association for International Broadcasting - Category, Human interest: Radio and Audio - Shortlisted

• Imran Qureshi: Beauty and Carnage - Association for International broadcasting - Category, Arts and Culture - Shortlisted

Digital

• Now I Can Breathe (TrueTube) - Sandford St Martins Awards - Category, Children's - Winner Just Me - Iris Prize - Category, Best British Short - Nominated

• Hijab and Me and Now I Can Breath (TrueTube) - Learning on Screen Awards - Category, Educational Film (from other organisation or individual) - Nominated

• Hijab and Me (TrueTube) - Broadcast Digital Awards - Category, Best Short Form Documentary - Nominated

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CTVC Limited

Report of The Trustees for the year ended 31 December 2020 (continued)

Achievements and Performance (continued)

Performance - Some of our programmes:

Television

• In the run up to Easter 2020, Pilgrimage: The Road to Istanbul was transmitted on BBC2. The third series of our landmark format had an all-star cast including Adrian Chiles, Edwina Curry, Fatima Whitbread and Mim Shaikh. Living as simple pilgrims, they follow an ancient military route which has been transformed into a modern-day path of peace, to the historic city of Istanbul.

• Inside the Bruderhof was broadcast on BBC One as well as being heavily downloaded on iPlayer. The team were given unique access to this historically private community who live like disciples of Jesus in a small village outside Hastings. This extraordinary radical Christian community have lived outside of mainstream society for nearly 50 years and through this observational documentary, we hold a mirror up to modern Britain - with its consumerist concerns, high crime and deprivation rate - and look at this community’s simple and arguably utopian way of life, whilst exploring the personal cost and sacrifice required to live there.

• What's Cooking, Omari? was broadcast on CBBC and repeated on BBC Two. When his Mum was extremely unwell and unable to cook for her family, 12 year old Omari McQueen stepped up to the challenge and thus began his passion for cooking simple vegan meals. In each episode Omari whips up a treat that you can make at home yourself, and he's always helped, sometimes hindered, by his fun/food loving family.

• Dooman, broadcast on BBC Scotland, highlighted important stories of a marginalised and isolated group trapped in a continuous cycle of poverty, unemployment and lack of opportunity. For them, pigeon-flying is less a ‘tradition’ but more an escape; a positive lifeline out of the malaise which consumes their lives. CTVC’s reputation for being able to attach award winning talent to its documentary output, through director Darren Hercher.

Audio - Radio

• The Right Thing: Standing up to a Superpower (BBC World Service). Despite being only 23 years old, Joshua Wong has been the poster boy of the Hong Kong democracy movement for over five years. An evangelical Christian, Joshua continues to do what he sees as the right thing in his fight against Beijing’s influence, in spite of the personal hardship involved. Mike Wooldridge hears from Joshua and some of his fellow protestors, but also those in the Hong Kong church put off by the actions of some of Joshua’s followers.

Who Cares (BBC World Service) Well over 400,000 elderly and disabled people in Britain rely on home care, however many of the care workers are from other parts of the world including Africa, the Middle East and Eastern Europe. Some were highly qualified professionals in their own countries. As the population ages, these care workers are providing an ever more vital service, yet their voices are rarely heard. Blanche Girouard accompanies some of them on their rounds to hear their stories.

• The Right Thing: The Inseparable Twins (BBC World Service). Senegalese twins Marieme and Ndeye were born sharing much of their bodies, and doctors advised that an attempt to separate them would be fatal for Marieme. But Marieme’s heart condition put both twins in danger. Mike Wooldridge hears from their father, Ibrahima Ndiaye, a devout Sufi Muslim who had to face an impossible dilemma – whether his daughters should be separated.

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CTVC Limited

Report of The Trustees for the year ended 31 December 2020 (continued)

Achievements and Performance (continued)

Performance - Some of our programmes:

Audio - Radio - continued

• Jonestown: From Socialism to Slaughter (BBC World Service). In 1978 over 900 US citizens died at Jonestown, a remote settlement in Guyana. The vast majority were members of a community run by the charismatic Rev Jim Jones, taking their own lives under armed guard on his orders. But how does a church known for racial integration and practical help for the poor, come to such a destructive end? How could one man’s increasing paranoia have driven so many people, who had built a mission community from nothing in four years, into a seemingly pointless sacrifice?

• The Essay: Home Sweet Home (BBC World Service) Writer and journalist Madeleine Bunting presents a fivepart series looking at some of the physical, social and emotional dimensions of what we call 'home'. She reflects on the huge changes that have been unfolding in the meaning of ‘home’ over time – exemplified by an Iron Age hut in the Hebrides and the little house with the pointy roof that indicates ‘home’ on computer screens. Madeleine also discovers some astonishing historical examples of homesickness, reflects on what it means to be homeless and examines the different facets of ‘homeland’ – from the deeply personal to the highly political. In the final part, she offers a glimpse of what the home of the future may look like.

Audio - Podcast (Things Unseen)

• Wonder of Wonders. Nearly one in five women in the UK now reach their 40s without having children. Among them was writer and teacher Blanche Girouard, who desperately wanted a baby. So Blanche decided to freeze her eggs and find an anonymous donor. Throughout her journey to create her own unique family, she documents every step of the way.

• An Easter Like no Other. With churches closed and the coronavirus lockdown firmly in place, the UK faced a very different Easter in 2020. More and more people were experiencing the sudden loss of a friend or family member. Others feared deeply for vulnerable loved ones. So how does the Easter story of death and resurrection help at this traumatic time, indeed does it help at all? Emily Buchanan talks to two remarkable women who have both survived the sudden loss of their sons. Can their experience enable others to cope better, with the loss of a child or the coronavirus crisis?

• Phone Prayers and PPE. Sarah Niyazi was pleased to get her husband, Arif, home from hospital in February 2020 following treatment for a severe autoimmune condition. Within days they were both ill. Struggling to breathe, Arif went back into hospital, one of the earliest UK cases of COVID19.

Digital - Education (TrueTube)

• “I’m Just Me ... It's like coming up for air." As Jaz and Charlie make a final attempt to keep their relationship alive, one of them comes out as non-binary (meaning they don’t identify as male or female), sparking a conversation that will change them both forever.

• Doreen's War: Keep Smiling Through . Doreen was only 8 years old when World War 2 began. While many children were evacuated from London's east end, Doreen stayed with her family in Plaistow and was homeschooled - even during the deadly Blitz between 1940 and 1941. Her best friend Marjorie had been evacuated to a different part of the country, but their relationship stayed strong and they're still friends 75 years later. Just before VE Day in 2020, this interview with Doreen recounting her memories of WW2 was recorded during lockdown conditions due to the coronavirus. Doreen compares how the nation felt then to how it feels during the pandemic.

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CTVC Limited

Report of The Trustees for the year ended 31 December 2020 (continued)

Achievements and Performance (continued)

Digital - New Media

• The team continued to produce films for BBC Education in 2020 including 5 short films in a series entitled Jobs to Save the World for BBC Bitesize .

BBC Teach commissioned CTVC to produce six animated, classic Bible Stories in a unique way to appeal to 7 - 11 year olds. Our take? To present each of them in pop culture formats: Samson as a Marvel movie; Moses and the Ten Commandments as if he were an influencer on a YouTube channel; The Feeding of the 5,000 as if it's a TV cooking show competition; Pentecost as if the event was filmed on a smart phone and went viral; Esther and Mordecai as a melodramatic reality TV show; and Jesus Heals a Man with Leprosy as a make-over programme.

Released as the country went into a third lockdown, we are proud to have created such great resources for home-schooling. Each film is accompanied by notes and a lesson plan.

Digital - Training

• CTVC delivered a number of training courses for The British Film Institute. Normally, they would be delivered in regular group meetings or a in a residential setting, however, due to COVID19 restrictions, the courses were all delivered online and have been very successful.

Future Plans

Despite the various lockdowns and restrictions, all departments secured commissions in 2020 which is an extraordinary achievement. CTVC has continued to produce high quality programmes and has started working on several commissions for 2021.

Hopefully, 2021 will see a reduction in the restrictions that have made producing programmes extremely difficult over the past year. The TV department have taken advantage of the situation by developing a record number of ideas which have been submitted to all major broadcasters. There is hope that the encouraging conversations had with commissioning editors, will lead to a number of exciting commissions in the near future.

The Rank Foundation and CTVC have started a strategy review. Once finalised, the staff at CTVC look forward to working more closely with their colleagues at the Rank Foundation to further the aims and objectives of both organisations as well as settling into our new shared home at Garden Walk, Shoreditch (see page 12). In the meantime, with the closure of McBeath House and continuing COVID19 working restrictions, the team are working remotely. As soon as allowed, short term office facilities will be hired to accommodate a reduced workforce.

In 2020 CTVC made a pledge to support marginalised people get into the media industry through a variety of schemes and placements. This will be an ongoing commitment which is hoped can be expanded upon.

To understand the full potential and impact the platform could have in the future, TrueTube undertook an extensive evaluation of the website with recommendations made to the Board for implementation in 2021 and beyond.

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CTVC Limited

Report of The Trustees for the year ended 31 December 2020 (continued)

Financial Review

Reserves policy

At 31 December 2020, the group held unrestricted funds of £582k. The restricted funds deficit of £3.345m (2019 deficit : £1.415m) is made up of the defined benefit pension scheme liability and the pension scheme reserve.The pension reserve of £5.446m represents a funding commitment of £457k per annum over the next 12 years made by The Rank Foundation. This is not available for other operational activities and is therefore shown as a restricted fund in the financial statements. The Defined Benefit Pension Scheme Reserve was in deficit of £8.791m (2019 deficit : £7.318m) as a result of the annual valuation. Details of the pension scheme and pension scheme reserves are set out in notes 14 and 16 of the financial statements.

At the year end, the cash balance held was £773k (2019 : £1.093m). The business depends on cash liquidity to function adequately and the Trustees consider the cash balance to be an appropriate measure of its reserves. The intention is to maintain prudent cash reserves consistent with trading conditions. It needs to be sufficient to meet the financial obligations which may include any requirement to “Cash Flow” the initial stages of program production or if required “Exit” costs, defined as staff leaving costs and any other costs associated with "winding up" the organisation.

Our forecast for the next 12 months has concluded that the previous desired level of cash held is no longer applicable. Following the easing of restrictions, the Trustees will review and update the reserves policy to reflect the needs of the business at that time.

Operating income and funding

Due to COVID19 restrictions, group income generation reduced significantly in all areas compared to 2019. Income received from third parties for television contributions was £551k (2019 : £2.226m) and for Digital £238k (2019 : £505k) Audio programme contributions was down at £34k (2019 : £54k). See note 18 for the performance of Hillside Productions.

Grants were received from our parent undertaking, The Rank Foundation, of £1.268m (2019 : £1.3m). The operational grant has been approved at an increased level of £1.293m for 2021.

We received grants totalling £45k from the Governments Job Retention Scheme to pay for staff placed on furlough.

Overall performance

The financial performance of the group as detailed in the Statement of Financial Activities has been affected by the restrictions placed upon us caused by the COVID19 pandemic. Income in all areas was down but particularly in Television. The year-end valuation of the Defined Benefit Pension Scheme Reserve under the FRS102 accounting rules has been adversely affected in part, by the drop in bond yields. However, this was partially offset by a better than forecast return on scheme assets, the overall result is an actuarial loss of £1.788m (2019 : £1.346m).

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CTVC Limited

Report of The Trustees for the year ended 31 December 2020 (continued)

Financial Review (continued)

Review

During 2020 the break clause in the lease at McBeath House was exercised and in December 2020 the office was vacated. Temporary access to a serviced office has been secured and a combination of this and homeworking for staff until restrictions are eased has been introduced. It is envisaged that during 2021 or early 2022, CTVC will join The Rank Foundation in a shared office facility that it has purchased at Garden Walk in Shoreditch.

While it is impossible to predict with any real certainty how long restrictions will be in force or how long it will take to recover in full, measures have been taken to assure that the cash reserve will see the company through the next twelve months without the need for additional funding.

Going concern

The Rank Foundation Limited has confirmed its grants to support the pension deficit, and for operational activities at current levels until at least March 2023. In light of the continued financial support, and the measures outlined above, the Trustees are satisfied that CTVC is a going concern.

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

Other

A full copy of the annual report and accounts can be obtained from 12 Warwick square, London, SW1V 2AA.

Auditor

The auditors, BDO LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

On behalf of the Board. 28 April 2021

12 Warwick Square London SW1V 2AA

Mr. N. F. Buxton

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CTVC Limited

Independent Auditor's Report to the Members and Trustees of CTVC Limited

Opinion on the Financial Statements

In our opinion, the financial statements:

• give a true and fair view of the state of the Group’s and of the Parent Charitable Company’s affairs as at 31 December 2020 and of the Group’s incoming resources and application of resources and the Parent Charitable Company’s incoming resources and application of resources for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• • have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements of CTVC Limited (“the Charitable Company”) and its subsidiary (“the Group”) for the year ended 31 December 2020 which comprise the consolidated statement of financial activities incorporating a consolidated income and expenditure account, the company statement of financial activities incorporating a income and expenditure account, the consolidated balance sheet, the company balance sheet, the consolidated) 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

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

Conclusions related 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 Group and the Parent 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 Report of the Trustees and Financial Statements, other than the financial statements and our auditor’s report thereon. The other information comprises: the Report of the Trustees. The Trustees are responsible for the other information. 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.

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

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Independent Auditor's Report to the Members and Trustees of CTVC Limited (continued)

CTVC Limited

Other Companies Act 2006 reporting

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Trustees’ Report, which includes the Directors’ Report prepared for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Directors’ Report, which is included in the Trustees’ Report, has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion;

• adequate accounting records have not been kept by the Parent Charitable Company, or returns adequate for our audit have not been received from branches not visited by us; or

• the Parent Charitable Company financial statements are not in agreement with the accounting records and returns;

• certain disclosures of Trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime; or

• were not entitled to take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities in relation to the Financial Statements, 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 determines 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 Group’s and the Parent 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 Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor 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 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

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

Based on our understanding of the Charity and the industry in which it operates, we identified that the principal laws and regulations that directly affect the financial statements to be relevant charities acts in the UK and Ireland. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

-14-

CTVC Limited

Independent Auditor's Report to the Members and Trustees of CTVC Limited (continued)

In addition the Charity is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: employment law, data protection and health and safety legislation. Auditing standards limit the required audit procedures to identify noncompliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence if any.

Audit procedures performed by the engagement team included:

• Discussions with management and group audit committee, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

• Reading minutes of meeting of those charged with governance, and reviewing correspondence with HMRC and the various charity regulators;

• Challenging assumptions made by management in their significant accounting estimates in particular in relation to the estimation of costs to complete of revenue contracts and assumptions used in the calculation of the defined benefit pension liability; and

• In addressing the risk of fraud through management override of controls; testing the appropriateness of journal entries and other adjustments, in particular any journals posted by senior management or with unusual accounts combinations

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:

https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Fiona Condron (senior statutory auditor) Date: For and on behalf of BDO LLP, statutory auditor Gatwick

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

-15-

CTVC Limited

Consolidated Statement of Financial Activities incorporating a Consolidated Income and Expenditure Account for the year ended 31 December 2020

Note Income Donations Grants - General 3 - Job Retention Scheme - Pension Reserve - reduction 15 Income from charitable activities Contributions towards production costs Television Audio Digital Income from other trading activities Commercial productions Investment income Other Income Sundry sales Total Income Expenditure Costs of raising funds Commercial productions Expenditure on charitable activities Television production Audio Digital Total expenditure 4 Net (expenditure) / income Actuarial losses on defined 14 benefit pension scheme Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward	£'000 1,268 45 - 1,313 551 34 141 726 - 1 7 8 2,047 5 868 365 1,007 2,240 2,245 (198) - (198) 780 582 Unrestricted	£'000 - - - - - 97 97 - - - - 97 - 142 - 97 239 239 (142) (1,788) (1,930) (1,415) (3,345) Restricted 2020	£'000 1,268 45 - 1,313 551 34 238 823 - 1 7 8 2,144 5 1,010 365 1,104 2,479 2,484 (340) (1,788) (2,128) (635) (2,763) Total Funds	£'000 1,300 - - 1,300 2,226 54 421 2,701 2 1 1 4 4,005 7 2,447 394 1,120 3,961 3,968 37 - 37 743 780 Unrestricted	£'000 - - (724) (724) - - 84 84 - - - - (640) - 172 - 138 310 310 (950) (1,346) (2,296) 881 (1,415) Restricted 2019	£'000 1,300 - (724) 576 2,226 54 505 2,785 2 1 1 4 3,365 7 2,619 394 1,258 4,271 4,278 (913) (1,346) (2,259) 1,624 (635) Total Funds

All income and expenditure derive from continuing activities.

The Group has no recognised gains or losses other than those shown in the statement of financial activities.

-16-

CTVC Limited

Company Statement of Financial Activities incorporating an Income and Expenditure Account for the year ended 31 December 2020

Note Income Donations Grants - General 3 - Job Retention Scheme - Pension Reserve - reduction 15 Income from charitable activities Contributions towards production costs Television Audio Digital Investment income Other Income Sundry sales Surplus on disposal of fixed assets Total Income Expenditure Impairment of subsidiary 18 Expenditure on charitable activities Television Audio Training Digital Total expenditure 4 Net (expenditure) / income Actuarial losses on defined 14 benefit pension scheme Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward	£'000 1,268 45 - 1,313 551 34 141 726 1 7 - 8 2,047 56 868 365 - 1,007 2,240 2,296 (249) - (249) 831 582 Unrestricted	£'000 - - - - - 97 97 - - - - 97 - 142 - - 97 239 239 (142) (1,788) (1,930) (1,415) (3,345) 2020 Restricted	£'000 1,268 45 - 1,313 551 34 238 823 1 7 - 8 2,144 56 1,010 365 - 1,104 2,479 2,535 (391) (1,788) (2,179) (584) (2,763) Total Funds	£'000 1,300 - - 1,300 2,226 54 421 2,701 1 1 - 2 4,003 - 2,447 394 1,120 3,961 3,961 42 - 42 789 831 Unrestricted	£'000 - - (724) (724) - - 84 84 - - - - (640) - 172 - 138 310 310 (950) (1,346) (2,296) 881 (1,415) 2019 Restricted	£'000 1,300 - (724) 576 2,226 54 505 2,785 1 1 - 2 3,363 - 2,619 394 1,258 4,271 4,271 (908) (1,346) (2,254) 1,670 (584) Total Funds

All income and expenditure derive from continuing activities.

The charity has no recognised gains or losses other than those shown in the statement of financial activities.

-17-

CTVC Limited

Consolidated Balance Sheet 31 December 2020

Company number 1375941

Note Fixed assets Tangible assets 9 Total fixed assets Current assets Debtors 11 Cash at bank and in hand Total current assets Liabilities Amounts falling due within one year 12 Net current assets Net assets excluding pension liability Defined benefit pension scheme liability 14 Net liabilities including pension liability The funds of the charity General Fund 16 Defined Benefit Pension Scheme Reserve 14 and 16 Pension Reserve 15 and 16 Total consolidated charity funds	2020 Total Funds £'000 14 14 5,591 773 6,364 (350) 6,014 6,028 (8,791) (2,763) 582 (8,791) 5,446 (2,763)	2019 Total Funds £'000 21
		21
		6,132 1,093
		7,225 (563)
		6,662
		6,683 (7,318)
		(635)
		780 (7,318) 5,903
		(635)

The accounts have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

The financial statements on pages 16 to 34 were approved and authorised for issue by the Board of Trustees on 28 April 2021.

Mr. N. F. Buxton Trustee

-18-

CTVC Limited

Company Balance Sheet 31 December 2020

Company number 1375941

Note Fixed assets Tangible assets 9 Shares in subsidiary undertaking 18 Total fixed assets Current assets Debtors 11 Cash at bank and in hand Total current assets Liabilities Amounts falling due within one year 12 Net current assets Net assets excluding pension liability Defined benefit pension scheme liability 14 Net liabilities including pension liability The funds of the charity General Fund Defined Benefit Pension Scheme Reserve Pension Reserve Total charity funds	2020 Total Funds £'000 14 19 33 5,591 616 6,207 (212) 5,995 6,028 (8,791) (2,763) 582 (8,791) 5,446 (2,763)	2019 Total Funds £'000 21 75
		96
		6,178 884
		7,062 (424)
		6,638
		6,734 (7,318)
		(584)
		831 (7,318) 5,903
		(584)

The accounts have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

The financial statements on pages 16 to 34 were approved and authorised for issue by the Board of Trustees on 28 April 2021.

Mr. N. F. Buxton Trustee

-19-

CTVC Limited

Consolidated Cash Flow Statement for the year ended 31 December 2020

Note 2020 £'000 Cash flows from operating activities: Net cash (used in) / provided by operating activities A (320) Cash flows from investing activities Investment Income 1 Purchase of tangible fixed assets (1) Net cash used in investing activities - Change in cash and cash equivalents in the reporting period (320) Cash and cash equivalents at the beginning of the reporting period 1,093 Total cash and cash equivalents at the end of the reporting period 773 A. Reconciliation of net expenditure to net cash flow from operating activities Net expenditure for the period (as per the statement of financial activities) (340) Adjustments for Pension finance 142 Pension contributions (457) Investment income (1) Depreciation charge 8 Loss on disposal of fixed assets - Decrease in debtors 541 (Decrease) / increase in creditors (213) Net cash (used in) / provided by operating activities (320)	2019 £'000
	76
	1 (20)
	(19)
	57 1,036
	1,093
	(913) 172 (457) (1) 45 1 1,164 65
	76

No reconciliation of net funds has been prepared as CTVC only hold cash and cash equivalents.

-20-

CTVC Limited

Notes To The Financial Statements for the year ended 31 December 2020

1. Accounting policies

a) Basis of preparation

The financial statements comprise the charity and its subsidiary.

These financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charitable Company and its subsidiaries are a public benefit group for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.

These financial statements are prepared on a going concern basis, under the historical cost convention. The restrictions put in place due to Coronavirus COVID19, have significantly impacted our ability to receive commissions for new work, and the impact of this could represent a material uncertainty in the going concern assessment. A review of the forecasts for the company has been undertaken for the 12 months from date of signing, which included updating the business model. The projections only include income already contracted and deliverable during the current restrictions and therefore within our control while removing any material uncertainty in the assessment. Staffing levels will be monitored and steps taken to reduce overhead costs where possible.

The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable group to continue as a going concern. The group had a negative balance of funds at the balance sheet date. As explained in the reserves policy note on page 11, this is the combined effect of the defined benefit pension scheme liability and the pension scheme reserve. The Trustees have considered the changing nature of pension scheme fund valuations in this process.

The Trustees have received a binding commitment from the Rank Foundation for funding until April 2022 and are aware of the Rank Foundation’s intention to provide ongoing support for the foreseeable future. Consideration has also been given to the charitable group’s forecasts and projections and have taken account of pressures on donation and investment income. The majority of the Trustees are also Trustees of The Rank Foundation and are aware of The Rank Foundations finances and are able to conclude that there is a reasonable expectation that the charitable group has adequate resources to continue in operational existence for the foreseeable future. The Trustees have concluded that it is appropriate for the charitable group to continue to adopt the going concern basis in preparing its financial statements.

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

b) Funds

Unrestricted - General Fund

All transactions not requiring the use of other specific funds are recorded here.

Restricted - General Fund

Contains funds that can only be used for specific purposes.

Restricted - Defined Benefit Pension Scheme Reserve

The liability of the pension scheme as per the FRS 102 valuation as at 31 December 2020.

Restricted - Pension Reserve

The amount set aside by The Rank Foundation to clear the outstanding balance of the pension scheme deficit as defined in the triennial pension valuation. The remaining period is eleven years, eleven months.

-21-

CTVC Limited

Notes To The Financial Statements for the year ended 31 December 2020

1. Accounting policies (continued)

c) Income

All income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably.

In addition, for income relating to the rendering of services which are partially complete at the balance sheet date. Where the costs incurred for the service and the costs to complete the transaction can be measured reliably, the income recognised in the statement of financial activities is calculated by the percentage completion method.

d) Expenditure

Liabilities are recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

e) Basis of allocation of costs

Costs of Charitable activities

Costs of activities in furtherance of the charity's objects includes all costs relating to the production, sale and distribution of programmes and attributable overheads plus an apportionment of overhead, support and governance costs.

Allocation of overhead, support and governance costs

Costs are allocated between the cost of raising funds and charitable activities. Costs relating to charitable activities have been apportioned between activities.

f) Critical accounting estimates and areas of judgement

In the view of the Trustees in applying the accounting policies adopted, with the exception of the Defined Pension Scheme (see below), no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

The annual budget estimates the surplus required from programme funding to supplement the grant in covering salaries and overheads.

Assumptions in relation to the estimate of the Defined Benefit Pension Scheme Reserve obligation such as standard rates of inflation, mortality and discount rate. Variations in these assumptions have the ability to significantly influence the value of the liability recorded and annual defined benefit expense. Assumptions are based on actuarial advice.

g) Basis of consolidation

The consolidated financial statements comprise CTVC Limited ("CTVC") and its trading subsidiary, Hillside Productions Limited. A summarised profit and loss account and balance sheet of Hillside Productions Limited are given in note 18.

-22-

CTVC Limited

Notes To The Financial Statements for the year ended (continued) 31 December 2020

1. Accounting policies (continued)

h) Basis of capitalisation

Amounts capitalised relate to costs of acquisition of assets expected to be used by CTVC in the longer term. Only pieces of equipment that have a cost price of more than £1,000 are capitalised.

Depreciation - Assets for the Charity's own use

Tangible fixed assets are stated at cost less accumulated depreciation.

Depreciation of fixed assets is calculated by reference to cost at rates estimated to write off the relevant assets over their expected useful lives, taking into account normal commercial and technical obsolescence.

The annual rates used are:

Plant and equipment 10% to 50% of cost Fixtures and fittings: Technical 10% to 50% of cost Office 10% to 20% of cost

Any assets considered impaired are written down to their recoverable amount.

i) Operating Leases

Operating lease rentals are charged to the statement of financial activities on a straight line basis over the lease term.

Lease incentives:

During a rent-free period, a liability is built up on the balance sheet which is then charged to the statement of financial activities over the life of the lease. Rent free periods are not discounted.

-23-

CTVC Limited

Notes To The Financial Statements for the year ended (continued) 31 December 2020

1. Accounting policies (continued)

j) Defined benefit pension scheme

The scheme was closed during 2002. In 2020 £457k was paid into this scheme in line with the schedule of contributions. The amount charged to the statement of financial activities in respect of this scheme is the estimated increased cost of providing the historical benefits accrued. The interest cost and expected return on assets are included within other finance costs in support costs.

The assets of the scheme are held separately from the group in separate trustee administered funds. Full actuarial valuations, by a professionally qualified actuary, are obtained at least every three years, and updated to reflect current conditions at the balance sheet date. The pension scheme assets are measured at fair value. The pension scheme liabilities are measured using the projected unit method and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency. A pension liability is recognised on the balance sheet to the extent that the group has accepted the obligation to settle the estimated liability.

k) Defined contribution pension scheme

Employer ' s contributions are charged to the statement of financial activities and accrued as they become payable.

l) Disclosure exemptions

The company has taken advantage of the following disclosure exemptions available in FRS 102 when preparing the separate Financial Statements of the Parent company:

·

• Key management personnel compensation (but company law disclosures for Trustees' remuneration still apply) . No cash flow statement has been prepared for the parent company

2. Constitution

CTVC is limited by guarantee not having a share capital.

3. Parent undertaking - Grant

The grant is from the immediate and ultimate parent company, The Rank Foundation Limited, a registered charity whose address is: 12 Warwick Square, London, SW1V 2AA.

The Rank Foundation Limited has provided a guarantee that they will fund the deficit in the Defined Benefit Pension Scheme. In addition, it has confirmed its financial support for operational activities until at least April 2022, The operational grant has been approved at an increased level of £1.293m for 2021.

The Rank Foundation Limited prepares consolidated accounts, which incorporate the results of The Rank Foundation and its subsidiary companies which include CTVC and Hillside Productions.

-24-

CTVC Limited

Notes To The Financial Statements for the year ended (continued) 31 December 2020

4. Analysis of total expenditure

Cost of Raising Funds Charitable activities Television Radio Digital Total Charitable activities Analysis of support costs Governance costs Total Support and Governance costs Total expenditure 2020	Direct Costs £'000	Staff Costs £'000	Occupancy £'000	Depreciation £'000	Other £'000	Support Costs £'000	Total £'000
	- 363 19 171	- 290 155 296	- - - - - 217 - 217 217	- - - -	5 148 - 58	- 209 191 579	5 1,010 365 1,104
	553 - -	741 558 15		- 8 -	206 157 24	979 (940) (39)	2,479 - -
	-	573		8	181	(979)	-
	553	1,314		8	392	-	2,484
Cost of Raising Funds Charitable activities Television Radio Digital Total Charitable activities Analysis of support costs Governance costs Total Support and Governance costs Total expenditure 2019	2 1,821 37 455	- 321 138 168	- - - - - 207 - 207 207	- - - -	5 211 - 45	- 266 219 590	7 2,619 394 1,258
	2,313 - -	627 572 9		- 45 -	256 215 27	1,075 (1,039) (36)	4,271 - -
	-	581		45	242	(1,075)	-
	2,315	1,208		45	503	-	4,278

Included above in Charitable activities - Television, is £142k (2019 : £172k), which relates to pension finance costs and an adjustment for past service costs in the restricted funds - Note 14.

The expenditure above includes costs incurred by the subsidiary under 'Cost of Raising Funds' and this line is the difference between consolidated and CTVC only expenditure.

Total Support and Governance costs have been apportioned over the Charitable activities using staff numbers as the basis for the apportionment.

5. Analysis of Governance costs

Auditor's remuneration Legal and professional fees Senior management- remuneration allocation	2020 £'000 16 8 15	2019 £'000 14 13 9
	39	36

Governance costs for the Group include an allocation of the operating costs relating to the CEO and COO. They represent the support necessary to deliver the management and reporting requirements for the Boards within the wider Group.

-25-

CTVC Limited

Notes To The Financial Statements for the year ended (continued) 31 December 2020

6. Trustees and Employees

Average number employed Employed in charitable activities (excluding Trustees) Direct charitable Support Total Employees' emoluments Number of Staff earning £70,001 to £80,000 Number of Staff earning £90,001 to £100,000 Number of Staff earning £100,001 to £110,000 Number of Staff earning £130,001 to £140,000	2020 16 5 21 1 1 1 1	2019 18 5
		23
		1 1 Nil 1

Employer contributions to the money purchase schemes were paid in respect of the above employees £30,008 (2019 : £24,002).

The Key management personnel of the group are the Chief Executive Officer and the Chief Operating Officer (see page 2) whose employee benefits totalled £235,943 (2019 : £228,526).

Staff costs including Trustees' emoluments Wages and salaries Redundancy payments Social security costs Personal Insurance (PHI, DIS) Pension costs Trustees' emoluments Pension Contributions Emoluments excluding pension scheme contributions Chairman G. C. King M. A. Booth	£'000 1,056 2 104 36 116 1,314 Nil Nil 16 10 26	£'000 981 - 91 26 110
		1,208
		Nil Nil 16 10
		26

Related Party Transactions

The above mentioned Trustees are not entitled to pension benefits and remunerated solely for the professional services they render to CTVC and its subsidiary as allowed for in our Memorandum and Articles of Association.

The other 5 Trustees received no remuneration.

Reimbursement of expenses to 2 Trustees, incurred in relation to duties as Trustees.

• 1

-26-

CTVC Limited

Notes To The Financial Statements for the year ended (continued) 31 December 2020

7. Net expenditure

Net expenditure is stated after charging: Depreciation of tangible fixed assets Hire of equipment Rental of premises Auditor's remuneration - audit Auditor's remuneration - other During the year CTVC purchased Trustees' and Officers' insurance Loss on currency exchange rate Deficit on disposal of assets	2020 2019 £'000 £'000 8 45 2 3 119 119 15 15 15 16 1 1 1 6 - 1 Group	2020 2019 £'000 £'000 8 45 2 3 119 119 15 15 15 16 1 1 1 6 - 1 Group	2020 2019 £'000 £'000 8 45 2 3 119 119 14 13 12 13 1 1 1 6 - 1 CTVC	2020 2019 £'000 £'000 8 45 2 3 119 119 14 13 12 13 1 1 1 6 - 1 CTVC
		2019 £'000 45		2019 £'000 45
		3 119		3 119
		15 16		13 13
		1		1
		6		6
		1		1

8. Contingent liability

CTVC is included in a UK group registration with its subsidiary undertaking for VAT purposes and is therefore jointly and severally liable for all group companies' unpaid debts in this connection amounting to Nil as at 31 December 2020 (2019: £ 18,943).

-27-

CTVC Limited

Notes To The Financial Statements for the year ended (continued) 31 December 2020

9. Tangible fixed assets - Assets for the Charity's own use	9. Tangible fixed assets - Assets for the Charity's own use
Group and CTVC Cost Plant and equipment Fixtures and fittings Depreciation Plant and equipment Fixtures and fittings Net book value Plant and equipment Fixtures and fittings	As at 01 January 2020 £'000 43 128 171 34 116 150 9 12 21	Additions £'000 - 1 1 4 4 8 (4) (3) (7)	Disposals £'000 (5) (100) (105) (5) (100) (105) - - -	As at £'000 38 29 31 December 2020
				67
				33 20
				53
				5 9
				14

Archive

CTVC owns a Film and Television programme archive, which may have potential for further exploration to the benefit of the therefore do not think a reasonable/reliable valuation could be performed due to the uncertainty of its use.

10. Commitments

Capital Total commitments under non-cancellable operating leases: Not later than one year later than one year and not later than five years; and	2020 £'000 - - - -	2019 £'000 -
		109 -
		109

-28-

CTVC Limited

Notes To The Financial Statements for the year ended (continued) 31 December 2020

11. Debtors

Trade debtors Other taxation and social security Amount due from parent undertaking (non pension) Amount due from parent undertaking (re pension) Amount due from subsidiary undertaking Other debtors Accrued income and prepayments	Group 2020 2019 £'000 £'000 49 45 3 - 26 15 5,446 5,903 - - - 6 67 163 5,591 6,132	CTVC 2020 2019 £'000 £'000 49 45 3 - 26 15 5,446 5,903 - 46 - 6 67 163 5,591 6,178	CTVC 2020 2019 £'000 £'000 49 45 3 - 26 15 5,446 5,903 - 46 - 6 67 163 5,591 6,178
			2019 £'000 45 - 15 5,903 46 6 163
			6,178

Included in the amount due from parent undertaking (re pension) is an amount of £4,988,921 (2019 : £5,445,917) due in more than one year.

12. Amounts falling due within one year

Note Creditors Trade creditors Other taxation and social security Amount due to subsidiary undertaking Accruals and deferred income Other creditors Provision for dilapidations 13	Group 2020 2019 £'000 £'000 73 142 32 19 - - 93 209 152 163 - 30 350 563	CTVC 2020 2019 £'000 £'000 73 142 32 19 1 - 92 208 14 25 - 30 212 424	CTVC 2020 2019 £'000 £'000 73 142 32 19 1 - 92 208 14 25 - 30 212 424
			2019 £'000 142 19 - 208 25 30
			424

13. Amounts falling due after one year

Note Provision for dilapidations 1 January Increase in the year Transfer to amounts falling due within one year 12 31 December	Group 2020 2019 £'000 £'000 - 30 - - - (30) - -	CTVC 2020 2019 £'000 £'000 - 30 - - - (30) - -	CTVC 2020 2019 £'000 £'000 - 30 - - - (30) - -
			2019 £'000 30 - (30)
			-

-29-

Notes To The Financial Statements for the year ended (continued) 31 December 2020

CTVC Limited

14. Pensions

A) Defined benefit scheme - closed April 2002

The "defined benefit" scheme covered the majority of CTVC's employees up to the date of closure. The pension cost relating to the principal scheme is assessed in accordance with the advice of an independent qualified actuary using the projected unit method. It is to be noted that under this valuation method the costs will increase as the members of the scheme approach retirement. The latest actuarial valuation of this scheme was at the 30 September 2018. The next full valuation will be as at 30 September 2021.

The Rank Foundation has formalised their commitment to the funding of this scheme by putting in place a legal guarantee that has been accepted by the Pensions Regulator. The Charity expects to pay £457k in the year to 31 December 2021.

The Rank Foundation seeks independent actuarial advice from time to time to manage the strategic risks of funding the scheme. The management of the funding, investment, and compliance risks is undertaken by the pension scheme Trustees, who have appointed their own independent professional actuarial advisors, administrators, and investment manager.

The Trustees have appointed the scheme actuary to prepare the following detailed disclosures and they have relied on the actuary's expertise in this regard.

Explanation of amounts in the financial statements

Amounts recognised in the Balance Sheet at 31 December 2020

Value at	Value at	Value at	Value at
31 December 2020		31 December 2019
	£'000		£'000
Fair value of assets Present value of funded obligations Deficit Net defined benefit liability	10,204 (18,995) (8,791) (8,791)		9,947 (17,265)
			(7,318) (7,318)

Amounts recognised in the Income and Expenditure account over the year (see note 4)

31 December 2020	31 December 2020	31 December 2019	31 December 2019
	£'000		£'000
Interest on liabilities Interest on assets Total	339 (197) 142		419 (247)
			172

Actuarial losses / (gains) over the year

31 December 2020	31 December 2020	31 December 2019	31 December 2019
	£'000		£'000
Gains on scheme assets in excess of interest Losses from changes to demographic assumptions Losses from changes to financial assumptions Total actuarial movement	(242) - 2,030 1,788		(1,024) 260 2,110
			1,346

-30-

CTVC Limited

Notes To The Financial Statements for the year ended (continued) 31 December 2020

14. Pensions (continued)

Explanation of amounts in the financial statements (continued)

Reconciliation of assets and defined benefit obligation

The change in the assets over the period was:

Value at	Value at	Value at	Value at
31 December 2020		31 December 2019
	£'000		£'000
Fair value of assets at the beginning of the period Interest on assets Company contributions Benefits paid Return on scheme assets less interest Fair value of assets at the end of the period	9,947 197 457 (639) 242 10,204		8,689 247 457 (470) 1,024
			9,947

The change in the Defined Benefit obligation over the period was:

31 December 2020	31 December 2020	31 December 2019	31 December 2019
	£'000		£'000
Defined Benefit obligation at the beginning of the period Interest on liabilities Benefits paid Experience loss on defined benefit obligation Losses from changes to demographic assumptions Losses from changes to financial assumptions Fair value of assets at the end of the period	17,265 339 (639) - - 2,030 18,995		14,946 419 (470) - 260 2,110
			17,265

Assets

31 December 2020	31 December 2020	31 December 2019	31 December 2019
	£'000		£'000
Equities Fixed interest Alternatives Cash Total Actual return on assets	7,765 829 1,367 243 10,204 439		7,356 744 1,332 515
			9,947 1,217

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CTVC Limited

Notes To The Financial Statements for the year ended (continued) 31 December 2020

14. Pensions (continued)

The principal actuarial assumptions used to calculate the Scheme's liabilities include:

Discount rate Retail Prices Index (RPI) inflation Revaluation in deferment: Pre May 2001 benefits Post May 2001 benefits Pension increases GMP earned before 06/04/88 GMP earned after 06/04/88 Pension earned before 01/10/92 in excess of GMP Pension earned between 01/10/92 and 31/05/01 in excess of GMP Pension earned after 01/06/01 Life expectancy at age 65 of male aged 45 Life expectancy at age 65 of male aged 65 Life expectancy at age 65 of female aged 45 Life expectancy at age 65 of female aged 65 efined contribution schemes Pension charge for the period Balance due to the schemes as at the year end The Company runs an auto-enrolment compliant, salary sacrifice defined contribution pension scheme. The scheme is placed with and administered by The Creative Pension Trust.	2020 1.30% 3.20% 5.00% 3.20% Nil 3.00% 3.00% 5.00% 3.10% 23.2 21.8 26.0 24.4 2020 £'000 93 11	2019 2.00% 3.40% 5.00% 3.40% Nil 3.00% 3.00% 5.00% 3.30% 23.0 21.6 25.8 24.3
		2019 £'000 67 10

B) Defined contribution schemes

15. Movement in triennial valuation

Deficit as per triennial valuation at 30 September 2018 Estimate for loss of income Payments made into the fund during 2018 (pre valuation) Payments made into the fund during 2019 and 2020 Balance carried forward	£'000 5,140 1,334	£'000 6,474 (114) (914)	£'000
			5,446

The current Schedule of Contributions requires an annual payment of £457,000 for a further 11 years 11 months (November 2032).

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CTVC Limited

Notes To The Financial Statements for the year ended (continued) 31 December 2020

16. Reserves

Note Unrestricted Funds General Restricted Funds Training grants -BFI Total - General Pension Reserves Defined Benefit 14 Pension Reserve 15 Total - Pensions Total - Restricted Funds Total Funds 2020	As at 1 January £'000 780 - - (7,318) 5,903 (1,415) (1,415) (635)	Income £'000 2,047 97 97 - - - 97 2,144	Expenditure £'000 (2,245) (69) (69) (142) - (142) (211) (2,456)	£'000 - (28) (28) (1,331) (457) (1,788) (1,816) (1,816) Other / transfers	As at 31 December £'000
					582
					-
					- (8,791) 5,446
					(3,345)
					(3,345)
					(2,763)

The British Film institute (BFI) grant fund film making training courses for young people. The surplus from these activities have been allocated to recovery of CTVC overheads.

2019

Unrestricted Funds General Restricted Funds Training grants -BFI Sunday Service - Joseph Rank Trust Lumo project - Jerusalem Trust Total - General Pension Defined Benefit 14 Pension Reserve 15 Total - Pensions Total - Restricted Funds Total Funds	As at 1 January £'000 743 17 30 7 54 (6,257) 7,084 827 881 1,624	Income £'000 4,005 84 - - 84 - (724) (724) (640) 3,365	Expenditure £'000 (3,968) (80) (37) - (117) (172) - (172) (289) (4,257)	£'000 - (21) 7 (7) (21) (889) (457) (1,346) (1,367) (1,367) Other / transfers	As at 31 December £'000
					780
					- - -
					- (7,318) 5,903
					(1,415)
					(1,415)
					(635)

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CTVC Limited

Notes To The Financial Statements for the year ended (continued) 31 December 2020

17. Analysis of net assets between funds

Fixed assets Current assets Creditors: Amounts falling due within one year Defined benefit pension scheme liability Total net assets / (liabilities) 2020	Unrestricted General £'000 14 918 (350) - 582	General Pension £'000 £'000 - - - 5,446 - - - (8,791) - (3,345) Restricted	General Pension £'000 £'000 - - - 5,446 - - - (8,791) - (3,345) Restricted	Total £'000 14 6,364 (350) (8,791)
				(2,763)
Fixed assets Current assets Creditors: amounts falling due within one year Defined benefit pension scheme liability Total net assets / (liabilities) 2019	21 1,322 (563) - 780	- - - - -	- 5,903 - (7,318) (1,415)	21 7,225 (563) (7,318)
				(635)

18. Net expenditure from trading activities of subsidiary

CTVC has a wholly-owned trading subsidiary, Hillside Productions Limited, which is incorporated in England and Wales. The principal activity of Hillside Productions Limited is the making of media productions.

Any profits of Hillside Productions Limited are usually donated to CTVC by way of qualifying charitable donation.

A summary of Hillside Productions Limited's trading results for the year is shown below.

Profit and loss account Turnover Cost of sales Gross profit Administration expenses Operating loss Loss for the year Summarised balance sheet Current assets Creditors : amounts falling due within one year Net assets Equity shareholders' funds	2020 £'000 - - - (5) (5) (5) 157 (138) 19 19	2019 £'000 2
		(2)
		- (5)
		(5)
		(5)
		210 (185)
		25
		25

CTVC’s investment in Hillside Productions Limited is 75,000 ordinary shares of £1 each, being the whole issued equity share capital of that company.

During 2020 an impairment review reduced the value of the shares held in the subsidiary undertaking by £56,000. This being the cumulative effect of prior years losses.

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CTVC Limited 12 Warwick Square London SW1V 2AA

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