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2022-03-31-accounts

Company Registration No. 01396429 (England and Wales) Charity No. 276892

Kiln Theatre

Trustees’ report and financial statements for the year ended 31 March 2022

Kiln Theatre

Company information

Trustees Nicholas Basden
Louis Charalambous
Dominic Cooke
Moyra Brown
Sita McIntosh
Karen Napier
Shrina Shah
Zadie Smith
Christopher Yu
Company Secretary Daisy Heath
Company number 01396429
Charity number 276892
Registered office 269 Kilburn High Road
London
NW6 7JR
Executive team
Artistic Director / Chief Executive Indhu Rubasingham
Executive Director Daisy Heath
Independent auditors Saffery Champness LLP
71 Queen Victoria Street
London
EC4V 4BE
Bankers HSBC
50 – 52 Kilburn High Road
London
NW6 4HJ

Kiln Theatre

Contents

Page
Trustees’ report 1-13
Independent auditors’ report 14-17
Consolidated statement of financial activities 18
Balance sheets 19-20
Consolidated statement of cash flows 21
Notes to the accounts 22-42

Kiln Theatre Trustees’ report For the year ended 31 March 2022

The Trustees (who are also Directors of the Company) present their report, together with the audited financial statements of the charitable company, for the year ended 31 March 2022.

1. TRUSTEES AND ADMINISTRATIVE DETAILS

Trustees :

The Trustees of the charitable company are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.

The Trustees who served during the year and since the year-end were as follows:

Dawn Austwick (resigned 8 November 2021) Nicholas Basden Louis Charalambous (appointed 8 February 2022) Dominic Cooke Moyra Brown (previously Doyle) Sita McIntosh Anneke Mendelsohn (resigned 7 October 2021) Karen Napier Shrina Shah Zadie Smith (appointed 12 April 2022) Christopher Yu (appointed 1 April 2021)

Brent Council Representatives (Observers):

Draft

Cllr Muhammed Butt Cllr Rita Conneely

2. STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Kiln Theatre is a company limited by guarantee. It is also a registered charity and is regulated by the Charity Commission. Kiln Theatre’s Memorandum and Articles allow for a maximum of 15 Trustees and a minimum of 3. Trustees serve a maximum term of 3 years and can serve for a maximum of 3 consecutive terms with the option of a final 1-year term in specific circumstances. All Trustees are members of the company and are automatically appointed as such when they are elected to hold office. They cease to be members when their term of office ends. As a company limited by guarantee, all members are liable to pay £1 in the event of winding up or dissolution of the charity.

Appointment of Trustees

New Trustees are elected to the Board by existing members after recruitment process and discussion. The induction process is described below.

Dawn Austwick resigned as Chair of Trustees in November 2021. Moyra Brown stood in as interim chair until the Board were able to hold elections. Sita McIntosh was elected Chair of the Trustees on, and has served since, 8 February 2022.

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Kiln Theatre

Trustees’ report For the year ended 31 March 2022

Trustees’ Induction and Training

The Nominations Committee is responsible for reviewing the skills of Trustees and ensuring that any gaps that exist in those skills are addressed as vacancies arise. All potential Trustees are referred to the Nominations Committee as part of the recruitment process to ensure that any appointment fills identified gaps and strengthens the Board. The Committee then makes a recommendation to the full Board, who will decide whether to invite the candidate to become a Trustee.

New Trustees go through an induction process which includes reviewing copies of the current Strategic Plan, recent board meeting minutes, most recent management accounts and statutory accounts as well as meeting with key members of staff, including the Executive team.

Organisation

The Board of Trustees is responsible for the strategic direction of the charity. The Board is required to meet at least 3 times a year. It has two sub-committees responsible for looking at specific areas in more detail: 1. Finance and Risk, and 2. Nominations.

The Trustees have delegated the operational day to day running of the charity to the Executive team - the Artistic Director and Executive Director.

Related Parties

The charity has two wholly owned subsidiary companies; Kiln London Productions Limited (formerly Tricycle London Productions Limited) and Tricycle Screen Limited. There are no other related parties. Draft

Risk Management

The Trustees have identified the major risks to which the charity is exposed, and systems have been established to mitigate these risks. The main procedures in place for identifying, evaluating and managing risks are:

At the 31 March 2022 the key risk facing Kiln Theatre was the recovery of the organisation after the Covid19 pandemic and ensuring the return of audiences to the theatre alongside building a sustainable business model.

3. OBJECTIVES AND ACTIVITIES

The charity has the general aim of using different art forms to entertain, educate and stimulate audiences, participants and users to contribute towards a more cohesive community.

Kiln Theatre is a proudly local theatre with an international vision and reputation. From our Kilburn home, we create high-quality and engaging work, which presents the world through a variety of lenses, bringing

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Kiln Theatre

Trustees’ report For the year ended 31 March 2022

unheard and/or ignored voices into the mainstream. We make theatre that tells big stories about human connections across cultures, race and language.

We believe that everyone should feel welcome and entitled to call this space their own. We want people to feel empowered by their engagement with us.

Our Vision

To uncover our shared humanity, illuminating our connection through stories, and deepening our capacity to empathise with each other

Our Mission

To make theatre for all by making space for unheard/ignored voices.

Strategic Plan

Kiln Theatre’s Strategic Plan 2020-22 (refreshed in April 2021) sets out the organisations objectives organised around four Goals: 1) Artistic Excellence, 2) Celebrating People, 3) Promoting Place and 4) Financial Sustainability. Progress against SMART targets is monitored quarterly and reported to the Board.

Kiln Theatre’s main areas of activity are as follows:

Artistic Vision and Activity

Draft

In the pursuit of our Vision, we seek out plays that are provocative and entertaining; plays that ask questions about identity with a flavour that is unique and that speaks to a wide range of local residents, Londoners and people from further afield. Since re-opening as Kiln in 2019, we aim to stage six to eight first-class productions per year in our flexible, revitalised theatre. We are committed to continuing to make this work accessible and affordable for our audiences, offering West End quality work at Kilburn prices. Writers and artists choose to make new work at and for Kiln Theatre and actors, technicians and theatremakers feel at home here. This is a reflection of both the high calibre of our team and the strength of the relationships with local communities and audiences.

4. ACHIEVEMENTS AND PERFORMANCE

After 14 months of closure, the 2021/22 season began in May 2021 and featured three mission-driven new plays and one revival. In total, we reached over 24,000 audience members through our artistic programme (this number was reduced reflecting sales lost due to Omicron-related cancellations in December 2021 – January 2022) and made just over £518,000 in ticketing income over this 9 months period of programming. Due to timings alongside the financial year, this includes capitalisation and running costs plus £8,000 box office income for first four days of performances for Black Love , which was our first production in the 22/23 season and therefore not covered in detail in this report.

1. Reasons You Should(n’t) Love Me by Amy Trigg, directed by Charlotte Bennett

★★★★ ‘A tour de force performance.’ The Telegraph ★★★★ ‘Enormously entertaining.’ The Guardian

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Trustees’ report For the year ended 31 March 2022

★★★★ ‘Hilarious, honest, heart-warming’ WhatsOnStage ★★★★★ ‘Challenges prejudice with audacity’ New European

Amy Trigg’s debut play Reasons You Should(n’t) Love Me was a hilarious, heart-warming play about Juno, a young woman with spina bifida navigating her twenties. The production was a collaboration between four female-led organisations: Ellie Keel for The Women’s Prize for Playwriting; Paines Plough’s artistic directors Charlotte Bennett and Katie Posner; Jessica Rose McVay at 45North; and Kiln Theatre led by Indhu Rubasingham and Daisy Heath. The play had previously won the Women’s Prize for Playwriting and, following the successful run, Amy Trigg was awarded the 2022 Playwright Scheme Bursary from the Peggy Ramsay Foundation, Film 4 and Maria Bjornson Memorial Fund. As part of this Scheme Amy has now joined Kiln Theatre as our 2022 playwright in residence.

“I came to the Kiln as a debut writer. I didn’t realise it at the time, but it turns out that I struck gold. My play was a one person show about a disabled woman – it could have easily been programmed in a small studio space for a very short run with little artistic support or budget. It could have become a ‘tick’ on the theatre’s diversity quota…or taken in a different direction in order to fit a company’s view on disability/disabled playwrights. How lucky I was to find myself in a theatre that thrives on intersectionality and artist led authenticity - a theatre that supports all artists to produce high quality theatre.” Amy Trigg, writer and performer

After the run of performances, we released three Digital Encore performances from 18 - 20 June to increase the accessibility of the production for audiences around the country and those not yet able to return to live theatre.

Draft

  1. The Invisible Hand by Ayad Akhtar, directed by Indhu Rubasingham Draft

  2. ★★★★★ ‘ Since 2016, Brexit negotiations, Trump’s presidency and Biden’s subsequent election, and the pandemic have shifted the dynamics of global politics and made the play even more timely The Telegraph

★★★★ ‘Indhu Rubasingham excels in her directorial signatures of pacy staging combined with clarity of narrative and characterisation.’ The Guardian

The Invisible Hand was a pertinent and timely revival of Ayad Akhtar’s thriller, directed by Indhu Rubasingham. The production had a sold out run in 2016 at Kiln and far exceeded its sales target in revival in 2021. The Invisible Hand was nominated for a prestigious Olivier Award in 2022 and was filmed and broadcast on Kiln Theatre channels digitally and then released by Sky Arts as part of their Sky Originals season.

3. NW Trilogy by Moira Buffini, Suhayla El-Bushra and Roy Williams, directed by Taio Lawson and Susie McKenna

★★★★ ‘Sensational. A brilliant trio of powerful stories.’ The Guardian ★★★★ ‘A thrilling, if bittersweet, journey back through the history of a borough that has welcomed people from all over the world to help rebuild the nation.’ Theatre Weekly

★★★★ ‘Local stories with a universal resonance.’ The Times ★★★★ ‘Excellent. Absolutely engrossing.’ WhatsOnStage

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Trustees’ report For the year ended 31 March 2022

NW Trilogy was originally commissioned as part of Brent, London Borough of Culture 2020. After the original run was cancelled due to the Covid-19 pandemic, the production consequently played from 6 September – 9 October 2021 to positive critical and public reception. Co-directed by Kiln Associate Directors Susie McKenna and Taio Lawson and with a cast of 9 actors, this production was a collection of three short plays, by three acclaimed playwrights. Each paid homage to and celebrated three different migrant communities in 20[th] Century Brent, all of whom played a crucial role in shaping the diversity and politics of London and the UK. The plays epitomised Kiln’s mission to put local stories under an international spotlight and, by doing so, to celebrate and uplift the people and communities of Brent and Northwest London.

The three plays were:

4. The Wife of Willesden adapted by Zadie Smith from Chaucer’s The Wife of Bath , directed by Indhu Rubasingham

Draft

The Wife of Willesden became the fastest selling, highest grossing production in the venue’s history, selling out before opening night (despite the ongoing impact of Covid-19 and the slow rise in audience confidence experienced as they returned). The debut play by world-renowned author Zadie Smith, this production had also originally been programmed as part of the Brent London Borough of Culture programme in 2020. In April 2022, Zadie Smith was awarded ‘Most Promising Playwright’ for The Wife of Willesden by The Critics’ Circle Theatre Awards. Rob Jones’ design transformed Kiln’s auditorium into the Colin Campbell pub, utilising the new auditorium’s flexibility created by the capital project. The production garnered local, national and international positive public reception and critical praise.

Audiences

“Thank you for creating the most diverse theatre I have yet to go to. In terms of race, culture, class, age – everything, not only in the selection of shows and the actors, but in the audience. I sometimes felt a wave of embarrassment going to the theatre with my mum, in her broken English, us dressed in nothing special. I see others like us at your shows. Many of the shows I’ve seen at Kiln have been the most touching for me.” Audience member, 2021

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Kiln Theatre

Trustees’ report For the year ended 31 March 2022

When budgeting for the 2021/22 season, we were cautious in our projections of box office income and our planning incorporated socially distanced performances for the first 5 months of the year. The levels of social distancing during the season were phased, from Reasons You Should(n’t) Love Me where the audience was 1.5 metres socially distanced in household bubbles, building gradually up to the run of The Wife of Willesden which was full capacity. We offered two socially distanced performances during the run of The Wife of Willesden to accommodate our audiences who weren’t able or didn’t feel comfortable to return to a soldout capacity auditorium. Mask-wearing and lateral flow testing prior to visits have been strongly recommended throughout, with high levels of adherence from our returning audiences. Feedback for the way that our operation and FOH teams have welcomed and managed audiences during this time has been extremely positive.

The Wife of Willesden was the first show of the year to be back to normal audience levels, and the run had completely sold out and reached £383k in revenue, which made it the highest grossing show in the venue’s history. Unfortunately, we were forced to cancel 14 performances due to Covid-19 amongst the company and, when administering the cancelled performances, we finished the run on £292k but this was still in line with the original budget.

In the reopening season over 50% of bookers were from Brent (up 20% than usual). 2,000 tickets were sold at a reduced rate to Brent residents, 400 local students came with a school group (where we also offered onstage tours), 1,000 £10 tickets given to Under 26-year-olds, and 400 free tickets given to Brent NHS Frontline workers. 217 Brent students and young residents received free tickets as part of our City Bridge Trust free ticket scheme. Young Brent Foundation bought 200 tickets to distribute, and we worked with Ashford Place (a charity working with people with addiction, experiencing homelessness, and with those struggling with mental health, dementia and age-related issues) to offer free tickets to matinee performances. Our audience feedback about their experiences of productions during 2021/22 was Draft overwhelming positive including the most common: ‘entertaining’, ‘absorbing’, ‘thought provoking’, and ‘engaging’.

Initial data from our reopening season has shown that audiences were hyper local, c.60% audience from Brent & Camden (usually 35%), they are returning to the venue, with only 40% first-time attenders (previously 60%) and 18% are from lower engaged households (usually 12%) (Kaleidoscope Creativity demographic).

Artistic Development and Commissioning

During the pandemic, Kiln Theatre has continued to support and invest in pathways for emerging talent as well as helping theatre artists and other freelancers to find an inclusive and supportive home for their work. Covid’s devastating consequences for freelancers have brought into sharper focus the importance of Kiln’s links with the freelance community, and in 2021/22 we focused on creating working opportunities, new commissions and embedding freelancers in our staff team wherever possible.

During 2021/22 Kiln engaged 153 freelancers to work on our artistic and creative engagement programmes. We have continued to develop an exciting and diverse portfolio of 14 commissioned playwrights, offering full dramaturgical support through the commissioning cycle. In total, 80% of our commissioned writers identify as female or non-binary, and 80% are from the Global Majority. The commissioned writers include the Bertha-Kiln Writers: Chinonyerem Odimba, Nessah Muthy, Hannah Khalil, Amy Ng and Suhayla ElBushra, initially commissioned in 2020. In addition, Zodwa Nyoni’s commissioned play The Darkest Part of the Night will be staged as part of the 2022/23 season.

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Trustees’ report For the year ended 31 March 2022

The Artistic team purposefully includes freelance creatives in direct response to the freelancer-based crisis the pandemic exacerbated. In 2021/22, we successfully piloted the Backstage Resident Designer Programme, welcoming multi award-winning theatre and heritage designer Tom Piper MBE to our team as Associate Designer for two years. In addition, two early career Resident Assistant Designers (Ruth Badila and Pip Terry) were consecutively appointed for eight/nine months each, Pip will conclude her residency in 2022/23.

Taio Lawson and Susie McKenna were joint Associate Directors from July 2019 to January 2022. Both of these artists enriched the Artistic team with their experience and perspective, exemplified in their codirection of NW Trilogy . Susie also represented Kiln as part of the Freelancers’ Task Force during the Covid19 pandemic.

In February 2022, Amit Sharma joined Kiln Theatre as our new Associate Director. He joins the Artistic team alongside our Playwright-in-Residence (Amy Trigg), New Work Associate (Tom Wright), Associate Designer (Tom Piper) and Pip Terry (Resident Assistant Designer)– in terms of protected characteristics one of the strongest teams in British Theatre. Both Amit and Amy are two of the disabled artists’ communities’ leading figures. Tom Piper’s and Amit’s membership of the Senior team has ensured the continued presence of the freelancer voice right at the heart of the organisation’s management and strategic planning.

Creative Engagement programme

Our extensive Creative Engagement work sits at the heart of our organisation, fully integrated with the work on our stage. The programme continued online for the first part of the 2021/22 financial year, with workshops and activity returning in person from September 2021 onwards. Over the year, we worked with hundreds of young people and adults from our local area each year to devise and deliver creative projects. Draft We also provided free or subsidised tickets to ensure that cost is no barrier, and that everyone can see themselves in the stories on stage and in the audience around them.

Highlights over the year included:

From September 2021 – Feb 2022, we delivered weekly in-person workshops for the 7-11 and 1215 age groups. They devised two original theatre productions, The Forest Awakens and Code & Dagger which were performed on the Kiln stage in February 2022. Session focuses included puppetry, ensemble skills, vocal projection and movement and body language.

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Trustees’ report For the year ended 31 March 2022

Kiln Theatre

Cinema

In 2021/22 we invested in staffing, infrastructure, and positioning of the Cinema to improve its financial sustainability. Functionality was improved with automated projection, rewiring and a brand-new screen and Draft masking.

Kiln Cinema reopened at the end of September 2021. Despite a slow start, current sales remain relatively healthy within industry context. Our advance sales have increased, but our door sales which our cinema relies upon have not increased. We remain focused on improving the visitor experience and further local promotion of the venue.

We continue to largely sell out on NT Live broadcasts, with over 280 people attending Tom Stoppard’s Leopoldstadt, and hosted screenings as part of the Irish Film Festival and Irish Film London, including screening the UK premier of Stacey Gregg’s Here Before, a special Q&A with Damien Dempsey following a screening of Love Yourself Today and worked with the International Asian Film Festival. We work with BFI and Into Film to offer special screenings for school groups and are working with Ashford Place to develop a new programme of Dementia Friendly screenings.

The Cinema is also used for our Creative Engagement projects ranging from our Minding The Gap film screenings, to being used as a flexible space for Youth Theatre and Young Company work. We also gave the space to Phosphoros Theatre for their production of All The Beds I have Slept In. This was seen by over 250 local students, all of whom had recently arrived to the UK. We also supported The Mono Box to run workshops for freelancers using the Cinema.

Fundraising

Despite the ongoing impact of the Covid-19 pandemic, our fundraising efforts in 2021/22 continued. During this time, and as we welcomed audiences back through our building, we received donations totaling almost

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Trustees’ report For the year ended 31 March 2022

£999,912 from a range of individuals, companies, trusts and foundations. Our heartfelt thanks to everyone who supported us during the year.

Individuals

We give grateful thanks to a small group of major donors for their continued support as we reopened and welcomed audiences and artists back to the building. We also received donations from a growing portfolio of individual supporters, raising £173,209 across the year. In addition, 2,786 ticket bookers made a booking donation across the season, or donated their ticket income following cancellations of performances of The Wife Of Willesden in December 2021 and January 2022, contributing £18,359 across the year in total. Throughout the year, 1,490 sponsored a ticket for those who might not otherwise be able to attend, providing £14,348 of income towards this. The Kiln Community campaign finally closed in June 2021 and raised an additional £2,207 in this financial year, and our NW Trilogy campaign, which was launched in support of a production platforming local histories about Brent, raised over £1,000. We also remain grateful to the 105 individual regular giving supporters whose monthly and annual donations (totalling £18,270 in 2021/22) provided crucial core income during 2021/22.

Events and Companies

We ran two fundraising events in aid of Kiln Theatre in 2021/22. In December, we held a Gala performance of The Wife of Willesden . In February, our exciting Q&A fundraiser , Jim Carter in Conversation with the cast of Bridgerton , was held in the Cinema. Between them, these events raised a total of £15,016.

We also received a corporate donation from local company Synergy Vision in support of our work and impact in our local communities. We were awarded £135,000 (some of which was received in the 21/22 Draft year) to establish a Bloomberg Philanthropies Tech Fellow to work with Bloomberg and the Arts Council to improve digital technologies as part of their Digital Accelerator Programme. We remain grateful to Bloomberg Philanthropies for this support of our organisational development at this critical time

Trusts

During the year, we received support from trusts and foundations in support of our artistic programme, our core costs, artistic development initiatives and training, and our Creative Engagement projects. Support from Backstage Trust saw the first year of the Backstage Designer Residencies (including the support of our Associate Designer and Resident Assistant Designer roles), and work with the Bertha Foundation on the Bertha Kiln Writers programme (the commission and dramaturgical development of five new plays from an extraordinary group of Global Majority female playwrights, ensuring that we were able to open up pathways for emerging talent and develop new writing) continued. Other donors include 29[th] May 1961 Charitable Trust, The Austin and Hope Pilkington Charitable Trust, BBC Children in Need, Boris Karloff Charitable Foundation, City Bridge Trust, Esmée Fairbairn Foundation, Foyle Foundation, John Lyon’s Charity, John Thaw Foundation, The Marie-Louise von Motesiczky Charitable Trust, Pears Foundation, The Stanley Thomas Johnson Foundation, Vanderbilt Family Foundation, Wellington Management UK Foundation and the Young Londoners Fund.

The Trustees take their responsibilities under the Charities (Protection and Social Investment) Act 2016 seriously and have considered the implications on their activities. Kiln Theatre has an Acceptance of Donations Policy, a Whistleblowing and Anti-Bribery Policy which outline the standards and practices for all theatre representatives to follow. We are a paid member of the Fundraising Regulator and we subscribe to

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Trustees’ report For the year ended 31 March 2022

the Fundraising Preference Service. We follow the Code of Fundraising Practice and we stay up to date with compliance and regulation around fundraising.

The Board of Trustees is regularly updated on fundraising progress. Our Acceptance of Donations Policy outlines the process for accepting and soliciting donations to ensure that fundraised income is raised in accordance with the theatre’s ethics as well as other policies and the Code of Fundraising Practice. In the year ended 31 March 2022 no complaints were received in respect of fundraising.

The Executive Director, Finance Director and Fundraising Director have reviewed and monitored all fundraising activity in 2021/22 and can report that there is no evidence of any negligence or non-compliance with the charity’s policies.

Other Activities

Sustainability

Following the post-lockdown reopening in May 2021, the Kiln Theatre reaffirmed its participation in Julie’s Bicycle and the London Theatre Consortium partnership. We submitted 2020/21 carbon-tracking data to Creative Green despite the building being closed to the public for much of the year. No Creative Green ratings/certification were issued for 2020/21 due to the pandemic disruption. Under our new Head of Operations & Front of House, we refreshed our approaches to environmental responsibility, utilised our Building Management System (BMS) and energy tracking software to limit wastage, set up our Green Team, and carried out a sustainability awareness campaign. In early 2022/23 our Environmental Responsibility Policy and Action Plan will be refreshed, and carbon data will be issued to Creative Green.

Draft

Health and Safety

Throughout 2021/22 the coronavirus pandemic played a key role in our health and safety management and planning. A comprehensive Covid-19 risk assessment was maintained throughout this period. This was managed and adapted in accordance with changes to government guidance/legislation. Despite the disruption we maintained key service contracts, PPM (planned preventative maintenance), and routine checks. A full Fire Risk Assessment was carried out by a competent person and recommendations actioned. Our Health and Safety committee met regularly throughout the year to review our practices and procedures.

The Staff

The organisation is run day to day by the Executive Team, supported by a senior management team who lead a skilled, experienced and highly committed permanent team of 34 staff. In 2021 a small number of staff remained on furlough and Kiln Theatre received £38,560 (2020/21 £355,210) in support from the Coronavirus Job retention scheme which enabled redundancies to be kept to a minimum and for us to retain the majority of our highly skilled and committed staff team through the pandemic.

Remuneration of Key Management Personnel

Key management personnel are those that the Trustees have delegated the day-to-day running of the charity to. During the year the Trustees considered the Artistic Director and Executive Director to be the key management personnel. Their remuneration is reviewed annually by the Nominations and Remuneration Committee with reference to industry standards.

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Kiln Theatre

Trustees’ report For the year ended 31 March 2022

5. FINANCIAL REVIEW

The results for the year show net expenditure of £153,231 (2021: net income £813,227). The Theatre received substantial support in the year from the Arts Council England and DCMS in the form of two additional grants. The first was the Culture Recovery Fund grant (round 2) and the second was the Culture Recovery Fund Continuity Grant both amounting to £182,000 each. This funding alongside our NPO grant (we are grateful to Arts Council England for our continued NPO funding which amounts to £844,782 in the year), the funding from the Coronavirus Job Retention scheme of £38,560 and an £24,000 grant from Brent Council to support businesses coming out of the pandemic was crucial to support the reduced box office as a result of continuing social distancing and the impact of the pandemic on audience confidence. We also received £27,583 from Heritage Lottery Fund (now the National Lottery Heritage Fund) to complete the ongoing legacy of the A Friendly Society project which concluded in 2021.

Reserves of £1,202,000 have been designated at 31 March 2022. These are £452,000 to support 3 months operating costs, £650,000 designated to support the 2022/23 budget and a £100,000 fund to support capital improvements to the building.

Kiln Theatre continues to strive to achieve its mission of bringing unheard voices to the stage at a challenging time as the country and the theatre industry continue to recover from the pandemic. Audience levels at the start of 2022-23 have been lower than expected and so the Trustees are monitoring the situation cautiously. They designated £650,000 of reserves at the end of 2021/22 to be used to support the budget for the 2022-23 financial year. Trustees are focussing on improving Kiln’s financial sustainability as the organisation navigates the significant challenges in the months and years ahead.

Investment Powers and Policy

Draft

Under the Articles of Association, the charity has the power to invest in any way the Trustees wish for the long-term benefit of the theatre. All surplus funds are currently held in cash deposits and are largely held with HSBC on deposit.

Reserves Policy

At 31 March 2022 the company held total reserves of £11,692,128. Of this reserve £10,232,066 was restricted, £258,062 was held in the general funds and £1,202,000 in designated funds. Within restricted funds there is a capital reserve of £10,015,734, largely as a result of improvements to the leasehold property. This is being amortised over the life of the asset. At the year end, £216,332 was held in restricted income funds for use in Creative Engagement projects, the Bloomberg Digital Accelerator project, commissions through the Bertha Foundation and to support future productions.

The reserves policy of the company is to maintain reserves to cover the costs of 3 months’ operating expenses. At the yearend, £452,000 was calculated as 3 months operating expenses and was designated as a separate fund by Trustees for the purpose of the reserve policy. £100,000 was set aside as a capital maintenance fund for use for emergency repairs to the building. At the end of 2021/22 the Trustees agreed to designate a further £650,000 to support the 2022/23 budget as the organisation recovers from the pandemic. In addition to these designated reserves totalling £1,202,000, at 31 March 2022 free reserves stood at £258,062.

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Trustees’ report For the year ended 31 March 2022

6. PLANS FOR THE FUTURE

Whilst Chinonyerem Odimba’s ‘beautiful ode to Black culture (The Stage)’ Black Love was produced in 2021/22, the majority of its running went into the 2022-23 financial year. This will be followed by Marina Carr’s Kiln commission and first new play in over 15 years, Girl on an Altar , a re-telling of the Clytemnestra myth produced in partnership with the Abbey Theatre; Zodwa Nyoni’s beautiful and ground-breaking Kiln commission, The Darkest Part of the Night; and a timely revival of Moira Buffini's acclaimed play Handbagged, a comedy which imagines what Margaret Thatcher and Her Majesty The Queen Elizabeth II would have talked about behind closed palace doors. Towards the end of the year, we have announced a return of Amy Trigg’s brilliant debut Reasons You Should(n’t) Love Me and Zadie Smith’s smash hit, The Wife of Willesden .

We will build on our work with local communities into 2022-23 and beyond. If possible financially, planned projects include supporting members of our communities at risk of diabetes, projects to support people suffering with dementia, co-curating projects with care experienced young people in Brent, and a continuation of our writing programmes for local people wanting to develop their writing skills.

We also plan to continue to build on our cinema and the café and bar activities to ensure they are financially successful and can provide a source of income to continue to provide a support to our core activities.

We are currently waiting for the decision on the next round of Arts Council England funding, as the 2023 – 2026 National Portfolio is set to be announced at the end of October 2022. The main challenge facing us in the context of this funding is the expected cut in funding from Arts Council England to London from 2023 onwards. In total, across the next three-year period, arts and culture funding in London will be reduced by £24m (representing a 15% cut to public funding for the arts in London) and so this could have an impact on Draft our funding. As we plan ahead into 2023 and beyond we will be dependent on the results of this decision in our planning for our activities into 2023/24 and beyond.

7. TRUSTEES' RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The Trustees (who are also directors of Kiln Theatre 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 which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

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

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the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the reparation and dissemination of financial statements may differ from legislation in other jurisdictions.

8. AUDITORS

Saffery Champness LLP were re-appointed as auditors. A resolution was passed at the Annual General Meeting that Saffery Champness LLP continue as auditors to the charity for the ensuing year. The Trustees’ Report, which incorporates the Strategic Report, has been approved by the Board of Trustees.

Sita McIntosh Chair of the Trustees 13 October 2022

Draft

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Kiln Theatre

Independent auditors’ report to the members For the year ended 31 March 2022

Opinion

We have audited the financial statements of Kiln Theatre (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2022 which comprise the consolidated statement of financial activities, the consolidated and charity balance sheets, the consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable to 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). 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, 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 Draft 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 group or 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 annual report, other than the financial statements and our auditor’s report 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.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit

Page 14

Kiln Theatre

Independent auditors’ report to the members (continued) For the year ended 31 March 2022

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.

Other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report and Strategic Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 12, the Trustees (who are also the directors of the parent 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 the 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 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 auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

Page 15

Kiln Theatre

Independent auditors’ report to the members (continued) For the year ended 31 March 2022

Our objectives are to obtain reasonable assurance about whether the group and parent 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.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the Trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charitable company by discussions with Trustees and updating our understanding of the sectors in which the group and parent charitable company operate.

Laws and regulations of direct significance in the context of the group and parent charitable company include The Companies Act 2006 and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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

Page 16

Kiln Theatre

Independent auditors’ report to the members (continued) For the year ended 31 March 2022

involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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 parent 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 parent 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 parent charitable company and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Cara Turtington (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP

71 Queen Victoria Street Chartered Accountants London Statutory Auditors EC4V 4BE

Date: 15 November 2022

Page 17

Kiln Theatre

Consolidated statement of financial activities (Incorporating an income and expenditure account) For the year ended 31 March 2022

Notes
Income and
endowments from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
8
Total expenditure
Net income /
(expenditure) for the
year
Taxation – Theatre tax
credit
9
Transfers between funds
10
Net movements in funds
Funds brought forward
Funds carried forward
10		 General
Fund
£
1,124,000
822,060
217,539
5,520
2,169,119
446,783
1,147,748
1,594,531
574,588
132,033
(744,209)
(37,588)
295,650
258,062		 Designated
Funds
£
-
-
-
-
-
-
-
-
-
-
755,000
755,000
447,000
1,202,000		 Restricted
Funds
£
1,147,254
-
-
-
1,147,254
-
2,007,106
2,007,106
(859,852)
-
(10,791)
(870,643)
11,102,709
10,232,066		 2022
Total
£
2,271,254
822,060
217,539
5,520
3,316,373
446,783
3,154,854
3,601,637
(285,264)
132,033
-
(153,231)
11,845,359
11,692,128		 2021
Total
£
2,875,554
97,742
2,433
266
2,975,995
221,452
1,941,316
2,162,768
813,227
-
-
813,227
11,032,132
11,845,359

The Statement of Financial Activities contains all recognised gains and losses in the year.

All activities relate to continuing operations.

The notes on pages 22 to 42 form part of these financial statements.

Page 18

Kiln Theatre

Balance sheets As at 31 March 2022

Notes
Fixed assets
Tangible fixed assets
11
Intangible fixed assets
12
Investments
13
Current assets
Debtors
14
Cash
Stock
15
Creditors: amounts falling due
in less than one year
16
Net current assets
Net assets		 Charity only
2022
2022
£
£
10,004,371
11,363
200
10,015,934
475,013
1,806,109
-
2,281,122
(586,906)		 Charity only
2022
2022
£
£
10,004,371
11,363
200
10,015,934
475,013
1,806,109
-
2,281,122
(586,906)		 Draft
Consolidated
2022
2022
£
£
10,004,371
11,363
-
10,015,734
372,802
1,895,080
7,539
2,275,421
(599,027)		 Draft
Consolidated
2022
2022
£
£
10,004,371
11,363
-
10,015,734
372,802
1,895,080
7,539
2,275,421
(599,027)		 Charity only
2021
2021
£
£
10,436,321
22,687
200
10,459,208
368,383
1,596,733
-
1,965,116
(569,185)		 Charity only
2021
2021
£
£
10,436,321
22,687
200
10,459,208
368,383
1,596,733
-
1,965,116
(569,185)		 Consolidated
2021
2021
£
£
10,436,321
22,687
-
10,459,008
360,762
1,598,681
-
1,959,443
(573,092)
1,386,351
11,845,359		 Consolidated
2021
2021
£
£
10,436,321
22,687
-
10,459,008
360,762
1,598,681
-
1,959,443
(573,092)
1,386,351
11,845,359
10,459,008
1,386,351
1,694,216
11,710,150		 1,676,394
11,692,128		 1,395,931
11,855,139
11,845,359

Page 19

Kiln Theatre

Balance sheets (continued) As at 31 March 2022

Notes
Represented by:
General fund
10
Designated funds
10
Restricted funds:
10
-
Capital funds
-
Income funds
Net assets
20		 Charity only
2022
2022
£
£
276,084
1,202,000
10,015,734
216,332
10,232,066
11,710,150		 Consolidated
2022
2022
£
£
258,062
1,202,000
10,015,734
216,332
10,232,066
11,692,128		 Charity
2021
£
10,459,008
643,701		 only
2021
£
305,430
447,000
11,102,709
11,855,139		 Consolidated
2021
2021
£
£
295,650
447,000
10,459,008
643,701
11,102,709
11,845,359		 Consolidated
2021
2021
£
£
295,650
447,000
10,459,008
643,701
11,102,709
11,845,359
11,845,359

As permitted by s408 Companies Act 2006, the charity has not presented its own profit and loss account and related notes. The charity’s net expenditure as defined by the Companies Act 2006 for the year was £144,989 (2021: Net income of £813,934).

The notes on pages 22 to 42 form part of these financial statements

The financial statements were approved by the Board on 13 October 2022. .

Sita McIntosh Chair

Page 20

Kiln Theatre

Consolidated statement of cash flows For the year ended 31 March 2022

Notes
Cash flows from operating
activities:
Net income (expenditure) for the
reporting period
Tax credit receivable
Depreciation
Amortisation of intangible fixed asset
Increase in stock
Disposal of fixed assets
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash provided by operating
Activities
Cash flows from investing
Activities
Purchase of fixed assets
Net cash used in financing
Activities
Net cash movement
Cash at 1 April 2021
Cash at 31 March 2022
Net cash movement
20		 2022
£
(285,264)
132,033
421,159
11,324
(7,539)
17,193
(12,040)
25,935
(6,402)		 £
302,801
-
296,399
1,598,681
1,895,080
296,399		 2021
£
£
813,227
-
331,119
11,323
-
8,791
127,183
(403,357)
888,286
-
-
888,286
710,395
1,598,681
888,286		 2021
£
£
813,227
-
331,119
11,323
-
8,791
127,183
(403,357)
888,286
-
-
888,286
710,395
1,598,681
888,286
888,286
710,395
1,598,681
888,286

Page 21

Kiln Theatre

Notes to the financial statements For the year ended 31 March 2022

1. Accounting policies

1.1 Accounting convention

The financial statements have been prepared under the historical cost convention. The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) second edition and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.

The Charity constitutes a public benefit entity as defined by FRS102.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in the operational existence for the foreseeable future. The Trustees have prepared financial plans to 31 March 2023, and while there is some unpredictability to the level of earned income in financial year 2022/23, Trustees will ensure that activity plans sit within the resources available. The company has come out of the pandemic in a strong financial position due to the support of the Arts Council and the generosity of its donors which has enabled a stable financial position as we rebuild after the pandemic. The Trustees therefore confirm that it is appropriate to continue to produce the accounts on a going concern basis.

1.3 Income

Income from donations and grants, including capital grants, is included in income when there is entitlement, probability of receipt and the amount can be measured with sufficient reliability, unless the donor has specified that the donation or grant relates to a future period or that certain pre-conditions must be fulfilled before use. In these cases amounts received are recognised in the relevant period or when the pre-conditions have been met and until then treated as deferred income. Donations and grants for particular purposes are included in incoming resources as restricted funds.

Production Income is included in income in the period in which the relevant performance takes place. Income related to productions in a subsequent period is treated as deferred income.

All other income is recognised on an accruals basis once the charity is legally entitled to receipt.

All income is recorded net of VAT.

Page 22

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

1. Accounting policies (continued)

(continued)

1.4 Expenditure

Expenditure is included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered.

Expenditure is recognised when a liability is incurred. Costs of raising funds are those costs incurred in attracting voluntary income and those incurred in the operation of trading activities which raise funds. Charitable activities include expenditure associated with the operation of the theatre and such directly associated activities as the creative engagement programme (educational and outreach). Cost of charitable activities includes both the direct cost of activities and related support costs. Support costs include central functions and have been allocated to activity costs on a basis consistent with the use of resources. This is frequently on the basis of staff time spent in each area but other bases such as usage are also employed. Support costs also include Governance costs. Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

Where performances of a production straddle the balance sheet date, production costs are apportioned in relation to the number of performances falling within each period and the amount relating to performances after the balance sheet date are treated as debtors.

1.5 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, once brought into use, as follows:

Leasehold improvements Over the life of the lease Leasehold land Over the life of the lease Fixtures, fittings and equipment 25% straight line*

1.6 Intangible fixed assets and amortisation

Intangible fixed assets are stated at costs less amortisation. Intangible fixed assets held on the balance sheet relate to the costs associated with the website. This is amortised over five years as this is the period deemed to be the life of the website and ensure the costs are reflected over the useful life of the asset.

1.7 Leasing

Rent payable under operating leases is charged against income on a straight-line basis over the lease term.

Page 23

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

1. Accounting policies (continued)

(continued)

1.8 Investments

The Statement of Recommended Practice requires investments to be stated at market value. The investments of Kiln Theatre consist of two subsidiaries, Tricycle Screen Limited and Kiln London Productions Limited. Both companies are not quoted and the directors consider it appropriate to include the investments at cost.

1.9 Stock

Stock is held in the balance sheet and is valued at the lower of cost and net realisable value.

1.10 Pensions

The charity operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the Statement of Financial Activities in the year they are payable.

1.11 Consolidation

The consolidated financial statements present information about the company and its wholly owned subsidiary companies Tricycle Screen Limited and Kiln London Productions Limited.

1.12 Fund accounting

Funds received for a purpose specified by the donor are credited to restricted funds. Expenditure incurred on these purposes is then charged to the funds as it is incurred.

All other income is treated as unrestricted funds. The Trustees have chosen to designate certain funds for specific future expenditure as explained in the Trustees’ Report.

1.13 Financial instruments

The Charitable Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial assets, other than those held at fair value through the statement of financial activities, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the statement of financial activities.

1.13.2 Derecognition of financial assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Page 24

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

1. Accounting policies (continued)

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

2. Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The directors do not believe that there is a significant risk of a material adjustment being made to the carrying amounts of assets and liabilities included in these financial statements within the next financial year.

3.

Status of company

The company is a registered charity, limited by guarantee. The total of such guarantees at 31 March 2022 was £9 (2021: £8).

Page 25

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

4. Income from donations and legacies

Unrestricted
£
Creative engagement grant income
-
Grant income
11,500
Donations
205,158
Arts Council England income
844,782
London Borough of Brent
24,000
Heritage Lottery Fund
-
Coronavirus job retention scheme grant
38,560
1,124,000		 Restricted
£
235,504
391,803
128,364
364,000
-
27,583
-
1,147,254		 Total
2022
£
235,504
403,303
333,522
1,208,782
24,000
27,583
38,560
2,271,254

The Arts Council supported the Theatre with 2 additional grants (the Culture Recovery Fund and the Emergency Funding Grant) to the value of £362,000 which was in excess of the £844,782 received in National Portfolio Organisation Grant. In total Kiln Theatre received £1,208,782 in funding from the Arts Council. In addition to this £90,143 was received from Brent Council, Heritage Lottery Fund and from the Coronavirus Job Retention Scheme. This means that total government grant funding was £1,296,925.

4. Income from donations and legacies

Unrestricted
£
Creative engagement grant income
-
Grant income
130,100
Donations
203,338
Arts Council England income
844,782
Coronavirus job retention scheme grant
355,210
1,533,430
come from charitable activities
Unrestricted
£
Production income
820,320
Workshops and courses
1,740
822,060		 Restricted
£
234,256
361,000
102,529
644,338
-
1,342,123
Restricted
£
-
-
-		 Total
2021
£
234,256
491,100
305,867
1,489,120
355,210
2,875,553
Total
2022
£
820,320
1,740
822,060

5. Income from charitable activities

Page 26

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

5. Income from charitable activities (continued)

Unrestricted Restricted Total
2021
£ £ £
Production income 36,887 - 36,887
Workshops and courses 55,216 - 55,216
Theatre Tax Relief from co-producers 5,639 - 5,639
97,742 - 97,742
6. Income from other trading activities
Total/ Total/
Unrestricted Unrestricted
2022 2021
£ £
Sales and merchandising 199,299 69
Sundries 18,240 2,364
217,539 2,433
7. Investment income
Unrestricted/ Unrestricted/
Total Total
2022 2021
£ £
Exchange movement 5,329 -
Interest received 191 266
5,520 266

Page 27

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

8. Expenditure

Raising funds
Raising donations
Trading
Charitable activities
Production
Creative engagement
A Friendly Society project
Cinema
Support costs
Advertising, publicity and
Marketing
Administrative staff
Premises costs
Office costs
Professional and financial
Governance
Audit fee
Other fees paid to auditors
Depreciation and amortisation
Operating lease payments		 Direct
costs
£
115,229
155,854
271,083
1,587,014
278,452
10,957
37,762
1,914,185
2,185,268		 Support
costs
£
74,685
101,015
175,700
1,028,615
180,477
7,102
24,475
1,240,669
1,416,369		 Total
2022
£
189,914
256,869
446,783
2,615,629
458,929
18,059
62,237
3,154,854
3,601,637
221,718
185,668
356,929
119,069
45,927
1,125
16,178
5,163
432,483
32,109
1,416,369

Page 28

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

8. Expenditure (continued)

Raising funds
Raising donations
Trading
Charitable activities
Production
Creative engagement
A Friendly Society Project
Cinema
Support costs
Advertising, publicity and
Marketing
Administrative staff
Premises costs
Office costs
Professional and financial
Governance
Audit fee
Other fees paid to auditors
Depreciation and amortisation
Operating lease payments
Loss on exchange		 Direct
costs
£
119,160
706
119,866
726,401
305,787
12,063
3,687
1,047,938
1,167,804		 Support
costs
£
101,586
-
101,586
619,263
260,687
10,284
3,143
893,377
994,963		 Total
2021
£
220,746
706
221,452
1,345,664
566,474
22,347
6,830
1,941,315
2,162,767
113,906
208,138
176,498
84,368
17,735
2,994
13,881
4,589
342,442
28,358
2,054
994,963

9. Taxation

The company is registered as a charity under the Charities Act 2011 and as such is entitled to the exemptions under Income and Corporation Taxes 1988. The tax credit of £132,033 (2021: £nil) recognised in the Statement of Financial Activities represents the amount receivable for Theatre Tax Relief.

Page 29

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

10. General, restricted and designated funds

Balances brought
forward
£
Restricted income funds
Creative engagement
131,410
National Lottery Heritage Fund
-
Productions
120,000
Arts Council England
-
Other
392,291
643,701
Restricted capital funds
Leasehold improvements
9,543,995
Freehold land
350,000
Leasehold premises
360,663
Fixtures, fittings and equipment
181,663
Website
22,687
10,459,008
Total restricted funds
11,102,709
General fund
295,650
Designated funds
Capital improvement
Three months operating costs
Investment in 2022/23 programme
50,000
397,000
-
Total designated fund
447,000
Total
11,845,359		 Income
Expenditure
Transfers
Taxation
Balances
carried forward
£
£
£
£
£
268,807
328,306
-
-
71,911
27,583
10,957
16,626
322,257
442,257
-
-
-
364,000
364,000
-
-
-
164,607
429,103
-
-
127,795
1,147,254
1,574,623
-
-
216,332
-
274,896
(17,193)
-
9,251,906
-
-
-
-
350,000
-
5,099
-
-
355,564
-
141,164
6,402
-
46,901
-
11,324
-
-
11,363
-
432,483
(10,791)
-
10,015,734
1,147,254
2,007,106
(10,791)
-
10,232,066
2,169,119
1,594,531
(744,209)
132,033
258,062
-
-
-
-
-
-
50,000
55,000
650,000
-
100,000
452,000
650,000
-
-
755,000
-
1,202,000
3,316,373
3,601,637
-
132,033
11,692,128		 Income
Expenditure
Transfers
Taxation
Balances
carried forward
£
£
£
£
£
268,807
328,306
-
-
71,911
27,583
10,957
16,626
322,257
442,257
-
-
-
364,000
364,000
-
-
-
164,607
429,103
-
-
127,795
1,147,254
1,574,623
-
-
216,332
-
274,896
(17,193)
-
9,251,906
-
-
-
-
350,000
-
5,099
-
-
355,564
-
141,164
6,402
-
46,901
-
11,324
-
-
11,363
-
432,483
(10,791)
-
10,015,734
1,147,254
2,007,106
(10,791)
-
10,232,066
2,169,119
1,594,531
(744,209)
132,033
258,062
-
-
-
-
-
-
50,000
55,000
650,000
-
100,000
452,000
650,000
-
-
755,000
-
1,202,000
3,316,373
3,601,637
-
132,033
11,692,128
216,332
9,251,906
350,000
355,564
46,901
11,363
10,015,734
10,232,066
258,062
100,000
452,000
650,000
1,202,000
11,692,128

Page 30

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

10. General, restricted and designated funds (continued)

Balances
Brought Forward
2020
£
Restricted income funds
Creative engagement
44,418
Productions
5,000
Other
150,259
199,678
Restricted capital funds
Leasehold improvements
9,792,482
Freehold land
350,000
Leasehold premises
365,762
Fixtures, fittings and equipment
242,217
Website
34,010
10,784,471
Total restricted funds
10,984,149
General fund
47,983
Designated funds
Capital improvement
Three months operating costs
-
Total designated fund
-
Total
11,032,132		 Income
Expenditure
£
£
224,256
137,264
25,000
10,000
1,113,045
771,013
1,362,301
918,277
-
274,257
-
-
-
5,099
-
60,554
-
11,323
-
351,233
1,362,301
1,269,510
1,613,694
893,258
-
-
-
-
2,975,995
2,162,768		 Transfers
£
-
-
-
-
25,770
-
-
-
-
25,770
25,770
(472,770)
50,000
397,000
447,000
-		 Taxation
Balances
Carried forward
2021
£
£
-
131,410
-
20,000
-
492,291
-
643,701
-
9,543,995
-
350,000
-
360,663
-
181,663
-
22,687
-
10,459,008
-
11,102,709
-
295,650
-
50,000
397,000
-
447,000
-
11,845,359		 Taxation
Balances
Carried forward
2021
£
£
-
131,410
-
20,000
-
492,291
-
643,701
-
9,543,995
-
350,000
-
360,663
-
181,663
-
22,687
-
10,459,008
-
11,102,709
-
295,650
-
50,000
397,000
-
447,000
-
11,845,359
643,701
9,543,995
350,000
360,663
181,663
22,687
10,459,008
11,102,709
295,650
50,000
397,000
447,000
11,845,359

Page 31

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

10. General, restricted and designated funds (continued)

Restricted funds

Restricted funds can only be spent on the projects they were given to support. The income funds held at the 31 March 2022 are primarily to support creative engagement activity, commissions, the Bloomberg Digital Accelerator programme and productions.

Restricted capital funds represent the fundraising carried out for the major capital projects. Covenants in place governing the future use of the building mean that these funds remain restricted even when the work is complete.

Designated Funds

The Trustees have established 3 designated funds. £452,000 is set aside as 3 months operating expenses in line with its reserves policy. There is a fund for £100,000 was set aside as a capital maintenance fund to ensure funds are available for capital repairs to the building. In 2022 the Trustees have designated £650,000 to support the budget for 2022/23 as the organisation recovers from the pandemic.

Page 32

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

11. Fixed assets

Charity and Group

Leasehold
Improvements
£
Cost
At 1 April 2021
11,010,347
Additions
-
Disposal
(17,193)
At 31 March 2022
10,993,154
Depreciation
At 1 April 2021
1,471,451
Charge for the year
274,896
Removed on disposal
At 31 March 2022
1,746,347
At 31 March 2022
9,246,807
At 31 March 2021
9,538,896		 Freehold
land
£
350,000
-
-
350,000
-
-
-
350,000
350,000		 Leasehold
premises
£
593,024
-
-
593,024
227,262
5,099
232,361
360,663
365,762		 Fixtures,
fittings and
equipment
£
484,211
6,402
-
490,613
302,548
141,164
443,712
46,901
181,663		 Total

£
12,437,582
6,402
(17,193)
12,426,791
2,001,261
421,159
2,422,420
10,004,371
10,436,321

Page 33

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

12. Intangible fixed assets

Charity and Group

harity and Group


Cost
Cost brought forward
Additions
At 31 March 2022
Amortisation
Amortisation brought forward
Charge for the year
At 31 March 2022
At 31 March 2022
At 31 March 2021		 Website
£
56,616
-
56,616
33,929
11,324
45,253
11,363
22,687

Page 34

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

13. Investments

nvestments
Shares in
subsidiary
undertakings
£
Cost
At 1 April 2021 and 31 March 2022 200
Net book value
At 1 April 2021 and 31 March 2022 200

Holdings of more than 20%

The company holds more than 20% of the share capital of the following companies:

Company Country of Class Shares %
corporation held
Tricycle Screen Limited England and Ordinary 100 100
(03077972) Wales
Kiln London Productions England and Ordinary 100 100
Limited (04807399) Wales

The result of these companies in the year ended 31 March 2022 have been consolidated into these accounts and are as follows:

Company Income Expenditure Profit/loss Reserves at
31 March
2022
Tricycle Screen Limited 147,611 156,078 (8,467) (£482)
(03077972)
Kiln London Productions - 264 (264) (£7,888)
Limited (04807399)

Page 35

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

14. Debtors

Charity
Trade debtors
Amounts due from subsidiaries
Prepayments and accrued income
VAT
Other debtors
Group
Trade debtors
Prepayments and accrued income
VAT
Other debtors
15.
Stock
Charity
Stock in hand
Group
Stock in hand		 2022
£
77,349
105,291
267,529
-
24,844
475,013
2022
£
77,349
270,609
-
24,844
372,802
2022
£
-
2022
£
7,539		 2021
£
39,915
7,621
267,925
33,953
18,969
368,383
2021
£
39,915
267,925
33,953
18,969
360,762
2021
£
-
2021
£
-

Page 36

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

16.
Creditors
Charity
Trade creditors
Other tax and social security
Accruals
Deferred income
VAT provision
Other creditors		 2022
£
64,278
38,573
93,322
118,887
174,696
97,150
586,906		 2021
£
87,347
26,331
122,712
103,459
174,696
54,640
569,185
Group
Trade creditors
Other tax and social security
Accruals
Deferred income
VAT provision
Other creditors		 2022
£
70,501
41,458
95,250
118,887
174,696
98,235
599,027		 2021
£
91,256
26,331
122,710
103,459
174,696
54,640
573,092

Deferred income of £118,887 relates to ticket sales for productions taking place after the year end and co production payments received in respect of productions due to take place in 2022/23.

Page 37

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

17. Financial commitments

17.1 Operating leases

As at 31 March 2022, the company had annual commitments under non-cancellable operating leases as follows:

ases as follows:
Expiry date:
Within 1 year
Within 1 – 2 years
Within 2 – 5 years
In more than 5 years		 Land and
2022
£
30,001
30,001
90,003
750,025
900,030		 building
2021
£
30,001
30,001
90,003
780,096
930,101		 Equipment
2022
2021
£
£
2,108
2,108
176
2,108
-
176
-
-
2,284
4,392
4,392

Kiln Theatre has 2 leases. The landlords of the first lease are The Trustees of Court Abbey 1940 Branch of the Ancient Order of Foresters and the lease term is until 11 April 2052. The second lease is with Brent Council and is for a period of 125 years from 1995 so will end in 2120.

On 29 February 2016 the Arts Council of England took out a legal charge over the property at 269 Kilburn High Road in respect of the use of its funding for the capital project that runs for 20 years.

Page 38

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

18. Employees

Number of employees

The average number of employees during the year was 66 (2021: 66). This is split as follows:

Number of staff
Finance and Administration
Production
Artistic
Fundraising
Front of House Staff
Creative engagement
Operations
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2022
No
7
4
2
3
23
17
10
66
2022
£
1,252,811
108,182
27,582
1,388,575		 2021
No
6
4
3
4
23
17
9
66
2021
£
1,042,979
81,035
24,353
1,148,367

No Directors of the company were employed or received any remuneration or reimbursement of expenses.

expenses.
Salaries over £60,000
2022 2021
Between £60,000 and £70,000 2 -

Key management personnel is defined as the Executive Team. Total remuneration of key management personnel in the period was £125,740 (2021: £116,426).

Included within wages and salaries costs are redundancy and termination payments of £1,000 (2021: £36,609).

Page 39

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

19. Analysis of funds

Group
Fixed assets
Current assets
Current liabilities
Charity
Fixed assets
Current assets
Current liabilities
Group
Fixed assets
Current assets
Current liabilities
Charity
Fixed assets
Current assets
Current liabilities		 General
funds
-
857,089
(599,027)
258,062
200
862,790
(586,906)
276,084
General
Funds
-
868,742
(573,092)
295,650
200
874,415
(569,185)
305,430		 Designated
Restricted
funds
funds
£
£
-
10,015,734
1,202,000
216,332
-
-
1,202,000
10,232,066
-
10,015,734
1,202,000
216,332
-
-
1,202,000
10,232,066
Designated
Restricted
Funds
Funds
£
£
-
10,459,008
447,000
643,701
-
-
447,000
11,102,709
-
10,459,008
447,000
643,701
-
-
447,000
11,102,709		 Total
2022
£
10,015,734
2,275,421
(599,027)
11,692,128
10,015,934
2,281,122
(586,906)
11,710,150
Total
2021
£
10,459,008
1,959,443
(573,092)
11,845,359
10,459,208
1,965,116
(569,185)
11,855,139

20. Analysis of net debt

Cash at 1 April Cash movement Cash at 31
2021 March 2022
£ £ £
Cash held 1,598,681 296,399 1,895,080

Page 40

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

21. Related party transactions

At the year end, the company was owed £99,176 (2021: £1,663) from Tricycle Screen Limited and £6,114 (2021: £5,958) from Kiln London Productions Limited. In the year costs of £nil (2021 £nil) were recharged.

No Trustees received any remuneration during the year.

The charity received an aggregate amount of £2,914 in donations from Trustees during the year. (2021: £11,339)

Page 41

Kiln Theatre

Notes to the financial statements (continued) For the year ended 31 March 2022

22. Comparative statement of financial activities

Income and
endowments from:
Donations and legacies
Charitable activities
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income for the year
Taxation – theatre tax
credit
Transfers between funds
Net movements in funds
Funds brought forward
Funds carried forward		 Unrestricted
funds
£
1,513,253
97,742
2,433
266
1,613,694
211,452
671,806
893,258
720,436
-
(472,770)
247,666
47,984
295,650		 Designated
Funds
£
-
-
-
-		 Restricted
Funds
£
1,362,301
-
-
-
1,362,301
-
1,269,510
1,269,510
92,791
-
25,770
118,561
10,984,148
11,102,709		 2021
Total
£
2,875,554
97,742
2,433
266
-
-
-		 2,975,995
211,452
1,941,316
-
-
-
447,000
447,000
-
447,000		 2,162,768
813,227
-
-
813,227
11,032,132
11,845,359

Page 42