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2023-03-31-accounts

LYRIC THEATRE HAMMERSMITH LIMITED (THE) (A Company Limited by Guarantee)

Registered Company No.1443809 Registered Charity No.278518

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Lyric Theatre Hammersmith Limited (The) Trustees’ Report For the year ended 31 March 2023

The Trustees of the Lyric Theatre Hammersmith are pleased to present their report together with the financial statements for the year ended 31 March 2023.

REFERENCE AND ADMINISTRATIVE DETAILS

Company Details
Registered Name: Lyric Theatre Hammersmith Limited (The)
Registered Charity No.: 278518
Registered Company No.: 1443809
Registered Address: Lyric Hammersmith Theatre
Lyric Square
King Street
London W6 0QL
Chief Executive &
Artistic Director: Rachel O’Riordan
Executive Director: Amy Belson
Advisers
Auditors: Saffery LLP
71 Queen Victoria Street
London EC4V 4BE
Bankers: Barclays Bank
Knightsbridge Business Centre
PO Box 32014
London NW1 2ZG
Solicitors: Harbottle and Lewis
14 Hanover Square
London W1R 0BE
Farrer and Co LLP
66 Lincoln’s Inn Fields
London WC2A 3LH

Constitution

The Lyric Theatre Hammersmith is a registered charity and a company limited by guarantee, governed by its Memorandum and Articles of Association dated 14 August 1979 and last updated in 2004.

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Lyric Theatre Hammersmith Limited (The) Trustees’ Report For the year ended 31 March 2023

STRATEGIC REPORT

Objectives

The objectives of the charity as set out in the Lyric’s Memorandum and Articles of Association are:

Mission & strategic objectives

The Lyric Hammersmith Theatre is the civic and creative heart of West London. We believe that everyone deserves to experience the life changing impact of theatre. In our big, beautiful theatre, we tell stories that matter and work with exceptional talent to make ambitious, entertaining, inspiring shows for our audience in West London and beyond. We remove barriers to engagement and ensure young people have the opportunity to discover the power of their creativity, shaping the future of British theatre. We are inclusive, forward looking and unafraid of change.

Key strategic objectives for 2022/23:

These key strategic objectives for the Lyric in 2022/23 were set out in the Lyric’s Business Plan and submitted to Arts Council England. All activity for the year was focused on delivering against these objectives, with the overarching objective of delivering against our mission for the purpose of the public’s benefit.

  1. Work with the UK’s leading artists to develop and present world-class theatre from the heart of Hammersmith that speaks to existing and new audiences. The Lyric is a unique theatre. We combine the audience and artistic experience of performance within an original Frank Matcham designed auditorium with the contemporary atmosphere and modern facilities of our building. This combination of new and old, local and national, allows us to embrace both tradition and innovation, allowing artists the chance to explore and reimagine, and giving our audiences a theatrical experience equivalent to the grandeur of the West End houses.

  2. Provide clear and sustainable pathways into the theatre industry for young people from all backgrounds in West London, supporting tomorrow’s artists. The Lyric has a long and successful history in supporting and nurturing the industry’s future artists, working closely with young people from all backgrounds from West London. This area of work has continued and flourished, despite our periods of closure due to the pandemic in the last 18 months.

  3. Deliver and build on our Commitment to Change Action Plan and further build our work in inclusivity and diversity.

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Lyric Theatre Hammersmith Limited (The) Trustees’ Report For the year ended 31 March 2023

We have committed to being an actively anti-racist organisation. We are committed to finding new ways to diversify the Lyric and the theatre industry through our work on stage, the way we run the Lyric and our work with young people.

  1. Provide greater access to our work on stage by making incisive connections to our projects and activity with young people, utilising the impact of excellence to inspire creativity and empower future audiences and theatre makers.

We know the benefits of creating new clear connections between our work with young people and work on stage. It provides young people with access to excellence, sparks inspiration and helps them to see the pathway and opportunities potentially open to them by seeing professionals at work on stage and backstage.

  1. Ensure the Lyric is resilient, dynamic and stable to face the challenges of the future without impacting our mission.

  2. The impact of the pandemic has shown how dynamism is more essential than ever. The Lyric has been at the heart of Hammersmith for over 125 years and has survived many challenges during its history. We will ensure that the theatre can withstand and respond to the challenges and opportunities that the next decade will bring.

  3. Take the steps to ensure the Arts Council England investment principles are embedded in all our activity

We are committed to developing and establishing our actions for each investment principle, identifying the work that delivers on these principles and the key areas of development needed alongside the data sources we will use and the people we will consult.

Delivering the strategic objectives: Activities & Achievements

In 2022/23, we produced a balanced programme of productions and projects that engaged the communities in West London. Our aim was to attract audiences back to the same levels as before the pandemic and provide greater access to our artistic programme through Young Lyric projects and activities.

We saw a slow build of audience attendance through the financial year, returning to prepandemic audience level attendance by January 2023.

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Lyric Theatre Hammersmith Limited (The) Trustees’ Report For the year ended 31 March 2023

Productions and projects in 22/23 included:

★★★★ “Scandaltown is satirically pure genius, and brings the mix of relevance, controversiality and humour, along with the madness that makes for a great night out.” London Theatre Reviews

In response to Britannicus , 76 students from Chiswick School, Fulham Cross Girls’ School, Lady Margaret School, The Green School for Boys and Twickenham School worked with a team of professional directors developed a new performance exploring the story, themes and characters from the production.

‘Thank you to the Lyric for the incredible experience you gave our Year 9’s over the last few months... The boys will never forget the experience through your belief and nurturing of them’ - Teacher, The Green School

★★★★ “A searingly good revival.” Evening Standard

In response to Closer , 10 West London queer theatre makers aged 18-25, created a movement piece exploring the themes of intimacy, relationships and queer utopia. The project was delivered by Outbox Theatre Company, who specialise in creating spaces for queer people to dream and imagine. It culminated in a performance sharing for over 40 friends and family.

‘This project felt like a safe space to explore my identity and meet other queer people! I loved the freedom involved and it was great to return to movement after a long time.’ – Participant B

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Lyric Theatre Hammersmith Limited (The) Trustees’ Report For the year ended 31 March 2023

Rachel O’Riordan’s supremely controlled directorial timing …a growlingly poetic meditation and a call to arms in one. Magnificent… everyone should see this shattering modern classic. No one will remain unmoved.” The Guardian

★★★★★ “ Essential theatre… Liz Truss should see it. Kwasi Kwarteng should see it. And – because it is astonishing, essential theatre – you should see it too… Rarely is theatre so shattering: rarely does it feel so utterly indispensable.” The Stage

★★★★ “An udderley brilliant panto… the crème de la crème.” The Times ★★★★ “…Sumptuously OTT panto has a big heart. This loud, front-foot Jack and the Beanstalk is nine-tenths set piece; a production, by Nicholai La Barrie, machine-tooled for uplift. Who needs interval ice creams? The show is all sugar rush.” The Guardian

Alongside Frantic Assembly we worked with 66 young people across four West London state schools (Fulham Boys School, Lady Margaret’s School, Teddington School and Queensmill School) in creating their own work in response to dialogue and characters from Othello. The sharing took place in the Main House with over 100 of the participant’s friends and family in attendance.

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Lyric Theatre Hammersmith Limited (The) Trustees’ Report For the year ended 31 March 2023

Director Diyan Zora and playwright Sophie Ellerby created a reimagined version of Lysistrata for and with Springboard trainees as their first studio show, with attendance from agents, casting directors and industry representatives. 30% of trainees secured professional representation within their first year of training as a direct result of the production.

20 students engaged with REWIND over 22/23, working in partnership with secondary pupil referral unit Westside School and primary pupil referral unit Ormiston Courtyard Academy. REWIND provided access to theatre for some of the most vulnerable young people in our home borough.

Fundraising

We raise money from a range of sources including grants from trusts and foundations, corporate partnerships, corporate support, individual memberships, major donors, crowdfunding appeals, and special events.

Following our period of closure when we were reliant on, and grateful for, emergency grants and funding as well as our long-term, loyal individual supports, 22/23 has been a year of stabilisation in fundraising. We re-established relationships with stakeholders and ability to fulfil funding agreements and membership benefits.

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Lyric Theatre Hammersmith Limited (The) Trustees’ Report For the year ended 31 March 2023

All our fundraising activity is delivered in-house by our Development team with the support of a (volunteer) Development Committee and the wider Lyric team. We do not engage a professional fund-raiser or commercial participator. We ensure that our fundraising staff are trained in our fundraising policies and procedures, supported with controls to ensure compliance.

We operate according to an agreed strategy and report back to the Finance and Resources Committee and Trustees at regular Board meetings through the Board member who chairs our Development Committee. Our financial goals in 2022/23 were re-forecast in response to reality of a post-pandemic hiatus in trusts and foundations grants and challenges with recruitment. Nevertheless, new targets were met with the support of long-term and new donors wishing to support our exciting artistic programme as well as new Young Lyric initiatives such as the talent development programme, Springboard.

The Trustees take their responsibilities under the Charities (Protection and Social Investment) Act 2016 seriously and have considered the implications of their activities.

It is possible that our fundraisers may come into contact with vulnerable people. We are especially careful and sensitive when engaging with vulnerable people, and have a Safeguarding Policy, procedures and processes in place to ensure we are doing all we can to protect vulnerable people. Our Guidelines for Fundraising Involving Vulnerable People was updated in January 2022.

We are committed to follow the Code of Fundraising Practice and the Fundraising and voluntarily subscribe to the Fundraising Regulator. We have complied with relevant laws and regulations, including the Proceeds of Crime Act, Data Protection, Tax and Gift Aid legislation, and Charity Commission guidance, as well as our policies, such as Fundraising Policy and Ethics Policies both of which were updated in January 2022. The Development Director and Executive Director have reviewed and monitored all fundraising activity in this financial year against these policies and can report that there has been no negligence. There have been no complaints to date about fundraising at the Lyric. The Lyric is fully compliant with GDPR legislation in how we use data and communicate with our database. Our Privacy Policy states how we use data in fundraising in order to ensure we are only soliciting gifts from those who are willing and able to support us.

Future plans

Following our successful Arts Council England NPO application, in collaboration with the Board and senior management team, we are currently setting out the Lyric’s strategic vision for the next three years. The strategic vision looks to build on the Lyric’s successes in 2023, which has included the West End transfer of Accidental Death of An Anarchist and the financially and critically acclaimed run of the UK premiere of School Girls; or the African Mean Girls . The vision has four strategic strands:

Developing and delivering against the Lyric’s business model

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Lyric Theatre Hammersmith Limited (The) Trustees’ Report For the year ended 31 March 2023

Engaging and growing the Lyric’s audience and wider community

Supporting staff and artists to excel

In 2023/24, we are producing work that is bold, innovative and welcoming, platforming excellent talent with interesting creative collaborations that is programmed for our audience and will inspire young people from West London. Our focus for the year is in ensuring the Lyric is for all with further work in access provision and accessibility to creativity for the community of West London.

The pilot of Springboard will continue, with the introduction of two industry showcases created specifically for trainees to gain more experience of the industry as well as exposure to casting and representation. Productions in 2023/24 include a major revival of God of Carnage , written by Yasmina Reza, translated by Christopher Hampton and directed by Lyric Associate Director Nicholai La Barrie. The first visit of the Royal Shakespeare Company to the Lyric Hammersmith Theatre with The Empress , written by the Lyric’s Artistic Associate Tanika Gupta. A new coproduction of Metamorphosis with Frantic Assembly, adapted by Lemn Sissay, which will see a continuation of the Young Lyric’s partnership with Frantic Assembly with a new School Response Project as part of ‘Lyric Learning’. The focus of this creative partnership is cultural inclusion therefore a 50:50 mix of SEND/state schools will be recruited and creative exchange between young people will be fostered and celebrated. 23/24 will conclude with Artistic Director, Rachel O’Riordan’s production of Brian Friel’s extraordinary play Faith Healer .

FINANCIAL REVIEW

FINANCIAL REVIEW

The group’s total income for the year was £4,904,577, plus Theatre Tax Relief of £526,939. This was still below our pre-pandemic levels of income (of between £5.0m and £5.8m per year excluding capital grants and tax relief), reflecting the fact that at the start of the 2022-23 season audience numbers had not yet returned to pre-pandemic levels.

Total expenditure in the year was £6,410,178, including £5,169,599 on charitable activities, reflecting a return to pre-pandemic levels of activity.

The net deficit for the year of £978,662 included £529,214 of depreciation (from restricted and designated funds) and £280,667 planned expenditure from designated funds (including the remaining funds of £200,000 from the Re-opening Fund 2021 which had been designated towards supporting the theatre’s post-pandemic recovery).

RESERVES

As part of the charity’s risk management strategy (see below) the potential financial impact of each risk is assessed and weighted according to its likelihood. The Trustees’ reserves policy is to maintain a designated Reserves Fund to cover this overall level of risk. The current requirement, according to this policy, is for the Reserves Fund to hold between £0.9m and £1.5m, against which £1.0m was held at 31 March 2023. This fund was created during the year by amalgamating existing designated funds of £0.4m and transferring £0.6m from General Funds.

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Lyric Theatre Hammersmith Limited (The) Trustees’ Report For the year ended 31 March 2023

The Trustees have also identified the need to hold a designated Building Renewal Fund for the essential replacement and renewal of equipment, fixtures and fittings over the short term, and for the larger capital expenses which will be required to maintain the Lyric Theatre over the long term. The Trustees’ initial assessment is that this fund should maintain a balance of between £0.2m and £0.6m during the next 5 years, with a view to increasing this level over the subsequent decade. £0.6m was held in the Building Renewal Fund at 31 March 2023, and the Trustees therefore expect to make capital expenditure from the fund over the coming period.

For detailed analysis of reserves see Notes 15-17 of the Financial Statements.

RISK MANAGEMENT

The company has a risk management strategy which includes an Organisational Risk Register and a Disaster Recovery Plan. The Register assesses the major risks faced by the company, and an outline of actions taken to mitigate each risk. The Register is reviewed quarterly by the Senior Management Team, the Finance & Resources Committee and the Board.

The most significant areas of risk that the company currently faces are:

Box office income targets

As a publicly-funded theatre committed to the production and presentation of new and innovative work we face an inherent risk in the potential failure to reach box office targets. To manage this risk, we set realistic targets and reforecast annual budgets to take account of shows which under- or over-perform against these targets. We aim for a balanced programme and seek opportunities to maximise revenue wherever possible when a show is successful.

Fundraising targets

Prior to the pandemic we raised an increasingly significant amount of our total income from trusts, companies and individual donations, and from our commercial activity. We set realistic targets which are regularly monitored against confirmed income and we reforecast according to our performance in this area.

Building, equipment and facilities maintenance and renewal

Damage or breakdown of essential equipment or infrastructure could have a significant impact on the Lyric’s ability to undertake its charitable activities. To manage this risk a schedule of planned preventative maintenance is undertaken; close communication is maintained with our landlord (the London Borough of Hammersmith and Fulham) regarding shared obligations; and a capital plan is in place for renewal and refurbishment in order to maintain the building in a standard befitting its use as a theatre and community hub.

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Lyric Theatre Hammersmith Limited (The) Trustees’ Report For the year ended 31 March 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

The group consists of the Lyric Theatre Hammersmith charity and two wholly-owned subsidiaries: Lyric Hammersmith Enterprises Limited and Lyric Hammersmith Worldwide Limited.

The charity is a Company Limited by Guarantee, the Trustees of the charity being the Directors of the Company, governed by its Memorandum and Articles of Association.

Board of Trustees

The Articles of Association require that the Board comprise between ten and sixteen members as follows:

Board Members are required to retire at the first Annual General Meeting after the third anniversary of their appointment. Board Members may be re-appointed unless they have served for more than six consecutive years (except by Special Resolution).

The Trustees who have served since 1 April 2022 are:

Lorraine Heggessey (Chair)

David Sharkey (Deputy Chair) Rondette Amoy Smith (to 9 March 2023) Councillor Emma Apthorp (from 25 May 2022) Councillor Jonathan Caleb-Landy (to 6 May 2022) Lameya Chaudhury Liz Elston Mayhew Councillor Sue Fennimore (to 6 May 2022) David Grieg Shivani Jaswal (from 13 September 2023) Farah Karim-Cooper Councillor Bora Kwon Oliver Mackwood (from 13 September 2023) Kamran Mallick (to 9 March 2023)

Julie Molloy Councillor Patricia Quigley (to 25 May 2022) Lisa Popham (from 13 September 2023) Derek Richards (to 6 March 2023) Harbinder Singh Birdi (from 13 September 2023) Councillor Nikos Souslous (from 25 May 2022) Councillor Nicole Trehy (from 25 May 2022)

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Lyric Theatre Hammersmith Limited (The) Trustees’ Report For the year ended 31 March 2023

Observers may also attend Board meetings, subject to the approval of the Board, as representatives of the London Borough of Hammersmith & Fulham, Arts Council England, and the company’s employees.

The Board met six times during the year in order to oversee the direction of the company, the day to day management of which is delegated to the Executive Team (comprising the Artistic Director and Executive Director) within terms agreed by the Board.

Recruitment, induction and training of Trustees

The Nominations Committee (see below) oversees the recruitment, induction and training of Trustees.

During the year the Committee carried out a skills audit of Trustees and an analysis of the skills required to help the charity’s meet its objectives. An open recruitment process was then undertaken to identify new Trustees with desirable skills and experience, leading to the recruitment of four new Trustees in September 2023.

All new Trustees are provided with an induction pack and meetings with relevant senior staff members, and ongoing training is provided by inviting Trustees to attend relevant courses.

Committees

A Finance & Resources Committee, comprising the Chair of the Board, at least two other Board members, and co-opted ex-officio members, reports to the Board. It meets prior to Board meetings in order to oversee the company’s finances, building and HR matters. Members of the Committee during 2022-23 were: David Sharkey (Chair) Lorraine Heggessey Bishin Ho Julie Molloy Councillor Nikos Souslous

A Nominations Committee, comprising at least three Board members, makes recommendations to the Board regarding the structure, size and composition of the Board, and to plan for the recruitment, appointment, induction and succession of Board members. The members of the Committee during 2022-23 were:

David Sharkey (Chair) Lameya Chaudhury Lorraine Heggessey Liz Elston Mayhew Julie Molloy Councillor Bora Kwon

Related parties

The Lyric Theatre Hammersmith’s core funders are Arts Council England and the London Borough of Hammersmith and Fulham, who provide funding to enable the company to carry out its charitable activities.

The London Borough of Hammersmith and Fulham is also the theatre’s landlord. The freehold of the Lyric is owned by Ingka, who lease it to the Borough on a 999 year term. A new 125 year

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Lyric Theatre Hammersmith Limited (The) Trustees’ Report For the year ended 31 March 2023

lease was signed in November 2018, which was drawn up as part of the Agreement to develop the site with the freeholder and the theatre’s landlord.

The Lyric Theatre Hammersmith has two wholly-owned subsidiaries:

Remuneration Policy

The Board of Trustees do not receive any remuneration.

Remuneration for the Chief Executive/Artistic Director, Executive Director, and Director of Finance & Resources is reviewed and set annually by the Nominations Committee. Other employees’ remuneration is set with reference to the Lyric’s Pay Policy and annual increases are considered by the Finance & Resources Committee as part of its regular monitoring of budgets and approved by the Board.

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Lyric Theatre Hammersmith Limited (The) Trustees’ Report For the year ended 31 March 2023

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors of Lyric Theatre Hammersmith Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic 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 adequate 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

AUDIT INFORMATION

In so far as the trustees are aware:

APPROVAL

The Trustees’ Annual Report was approved by the Board of Trustees (in their capacity as Company Directors) on 13 December 2023.

Lorraine Heggessey, Director

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Lyric Theatre Hammersmith Limited (The) Independent Auditor’s Report to the Members For the year ended 31 March 2023

Opinion

We have audited the financial statements of Lyric Theatre Hammersmith Limited (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities, the Group and Charity Balance Sheets, the Consolidated Cash flow statement and the notes to the financial statements, including 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).

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 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

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Lyric Theatre Hammersmith Limited (The) Independent Auditor’s Report to the Members For the year ended 31 March 2023

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 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’ 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, 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

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Lyric Theatre Hammersmith Limited (The) Independent Auditor’s Report to the Members For the year ended 31 March 2023

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.

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

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Lyric Theatre Hammersmith Limited (The) Independent Auditor’s Report to the Members For the year ended 31 March 2023

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 non-compliance 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 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 LLP

Chartered Accountants Statutory Auditors

71 Queen Victoria Street London EC4V 4BE

Date:

Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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Lyric Theatre Hammersmith Limited (The) Consolidated Statement of Financial Activities (Incorporating an Income and Expenditure Account) For the year ended 31 March 2023

Note
Income from:
Donations
3(a)
Charitable activities
Theatre & Young
People’s Activity
2
Grants
3(b)
Other trading activities
4
Interest received
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Net income/(expenditure)
before taxation
Taxation
9
Transfers between funds
15,16
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 General
Designated
Restricted
Funds
Funds
Funds
£
£
£
173,962
-
5,000
2,248,116
-
-
1,374,740
-
221,687
852,187
-
-
28,885
-
-
4,677,890
-
226,687
1,240,579
-
-
4,128,208
376,195
665,196
5,368,787
376,195
665,196
(690,897)
(376,195)
(438,509)
526,939
-
-
(564,999)
564,999
-
(728,957)
188,804
(438,509)
737,292
1,850,316
7,681,472
8,335
2,039,120
7,243,963		 Total
2023
£
178,962
2,248,116
1,596,427
852,187
28,885
4,904,577
1,240,579
5,169,599
6,410,178
(1,505,601)
526,939
-
(978,662)
10,270,080
9,291,418		 Total
2022
£
115,774
1,278,159
2,068,076
495,475
2,247
3,959,731
747,867
4,143,373
4,891,240
(931,509)
253,714
-
(677,795)
10,947,875
10,270,080

These results derive from continuing activities and all gains and losses recognised in the year are included in the above statement.

The notes on pages 21 to 33 form part of the financial statements.

18

Lyric Theatre Hammersmith Limited (The) Registered Company No.1443809 Balance Sheet

For the year ended 31 March 2023

Note
Fixed assets:
Tangible fixed assets
11
Investments
12
Total fixed assets
Current assets:
Stock and work in progress
Debtors
13
Cash at bank and in hand
Total current assets
Liabilities:
Creditors: Amounts falling due
within one year
14
Net current assets
Total net assets
The funds of the charity:
Restricted funds
15
Unrestricted funds:
Designated funds
16
General funds
16
Total unrestricted funds
Total funds		 Group
2023
2022
£
£
7,434,907
7,879,435
-
-
7,434,907
7,879,435
146,839
224,385
1,121,786
491,027
1,803,613
2,836,508
3,072,238
3,551,920
(1,215,727)
(1,161,274)
1,856,511
2,390,646
9,291,418
10,270,081
7,243,963
7,682,472
2,039,120
1,850,316
8,335
737,292
2,047,455
2,587,608
9,291,418
10,270,080		 Company
2023
2022
£
£
7,434,907
7,879,435
3
3
7,434,910
7,879,438
133,268
211,603
1,300,512
567,658
1,494,487
2,697,058
2,928,267
3,476,319
(1,071,759)
(1,085,676)
1,856,508
2,390,643
9,291,418
10,270,081
7,243,963
7,682,472
2,039,120
1,850,316
8,335
737,292
2,047,455
2,587,608
9,291,418
10,270,080

No separate company Statement of Financial Activities (SoFA) has been prepared by the company, as permitted by Section 408 of the Companies Act 2006. The Charity's net surplus/deficit for the year, excluding restricted funds, was a deficit of £540,153 (2022: deficit of £130,574).

The notes on pages 21 to 33 form part of the financial statements.

The financial statements were approved by the board and authorised for issue and signed on 13 December 2023.

Lorraine Heggessey, Director

19

Lyric Theatre Hammersmith Limited (The) Consolidated Statement of Cash Flows For the year ended 31 March 2023

Consolidated statement of cash flows

2023 2023 2022 2022
£ £ £ £
Net cash provided by/(used in)
operating activities (977,095) (25,745)
Cash flows from investing activities:
Interest received 28,885 2,247
Purchase of tangible fixed assets (84,685) (87,582)
Net cash provided by/(used in)
investment activities (55,800) (85,335)
Increase/(decrease) in cash (1,032,895) (111,080)
Opening cash balance at 1 April 2,836,508 2,947,588
Closing cash balance at 31 March 1,803,613 2,836,508
Reconciliation of net income/expenditure to net cash flow from operating activities
2023 2022
£ £
Net income/(expenditure) (978,662) (677,795)
Adjustments for:
Depreciation charges 529,213 525,699
Interest received (28,885) (2,247)
Increase/(decrease) in stock
and work in progress 77,545 (157,849)
Increase in debtors (630,759) (250,050)
Increase in creditors 54,453 536,497
Net cash provided by/(used in)
operating activities (977,095) (25,745)
Analysis of changes in cash and changes in net debt
At 1 April At 31 March
2022 Cash flow 2023
£ £ £
Cash at bank and in hand 2,836,508 (1,032,895) 1,803,613
2,836,508 (1,032,895) 1,803,613

The notes on pages 21 to 33 form part of the financial statements.

20

Lyric Theatre Hammersmith Limited (The) Notes to the Financial Statements For the year ended 31 March 2023

1. Accounting policies

Company status

The charity is a company limited by guarantee, registered in England and Wales. The registered office is Lyric Theatre, King Street, Hammersmith, London, W6 0QL. The members of the company have served as directors or are currently serving as directors as named on page 10. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

Basis of accounting

The financial statements have been prepared under the historical cost convention. The accounts (financial statements) have been prepared in accordance with the second edition of 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) 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 1st 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 £.

Consolidation

The SOFA and Balance Sheet consolidate the financial statements of the charitable company and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

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 operational existence for the foreseeable future, thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charitable company and which are not designated for other purposes.

Designated funds comprise unrestricted funds set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charitable company for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.

Transfers between funds are made at the discretion of the Board.

Income

Income from theatre admission fees is included in incoming resources in the period in which the relevant performance takes place. Income related to productions or lettings in a subsequent period is treated as deferred income.

Income from commercial activities is included in the period in which the activity takes place.

Income from donations and grants, including capital grants, is included in incoming resources when there is entitlement, reasonable certainty 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-

21

Lyric Theatre Hammersmith Limited (The) Notes to the Financial Statements For the year ended 31 March 2023

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.

Income from the Coronavirus Job Retention Scheme (CJRS) has been included in incoming resources as a restricted fund, matched against the staff costs it has offset.

Gifts in kind have been realised at cost.

Expenditure

Expenditure is recognised when a liability is incurred.

Where performances of a production straddle the balance sheet date direct costs are allocated to the period in which the performance takes place; royalties and similar costs are apportioned between the periods based on the production’s theatre admissions income.

Tangible fixed assets

Individual fixed assets consisting of amounts greater than £2,500 for IT purchases and £5,000 for fixtures, fittings and equipment with a useful life in excess of one year are capitalised at cost. Tangible fixed assets are depreciated over their anticipated useful lives in equal instalments. The periods used are:

Leasehold improvements 28-30 years
Reuben Foundation Wing improvements 20 years
Auditorium, Studio and FOH improvements 4-20 years
Roof Garden 12 years
Fixtures and fittings 3-15 years
Technical and computer equipment 3-8 years

Investments

The Statement of Recommended Practice requires investments to be stated at market value. The investments of the Lyric Theatre Hammersmith consist of two subsidiaries, Lyric Hammersmith Enterprises Limited and Lyric Hammersmith Worldwide Limited. Both companies are not quoted and the directors consider it appropriate to include the investments at cost.

Financial Instruments

Financial assets are recognised in the Charity’s statement of financial position when the Charity becomes party to the contractual provisions of the instrument. 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 are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.

22

Lyric Theatre Hammersmith Limited (The) Notes to the Financial Statements For the year ended 31 March 2023

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Other financial assets classified as fair value through the statement of financial activities are measured at fair value.

Other financial assets

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

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.

De-recognition of financial assets

Financial assets are de-recognised 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.

Classification of financial liabilities

Basic financial liabilities

Basic financial liabilities are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Other financial liabilities classified as fair value through the statement of financial activities are measured at fair value.

Other financial liabilities

Other financial liabilities are initially measured at fair value, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method, with interest expenses recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability to the net carrying amount on initial recognition.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Charity after deducting all of its liabilities.

De-recognition of financial liabilities

Financial liabilities are de-recognised when, and only when, the Charity obligations are discharged, cancelled, or they expire.

23

Lyric Theatre Hammersmith Limited (The) Notes to the Financial Statements For the year ended 31 March 2023

2. Income from charitable activities

2023
£
Ticket sales
1,913,983
Touring income
40,500
Co-production income
43,000
Royalties income
3,000
Front of House sales
91,911
Income from partners
86,058
Young People's income
41,143
Other income
28,521
2,248,116
(a) Income from donations
2023
£
Total income from donations
178,962
Included within the total income from donations is £5,000 of restricted income_(2022: none).
(b) Income from charitable activities: grants
2023
£
Public funding:
_Core funding:
Arts Council England – National Portfolio Organisation funding
1,120,240
London Borough of Hammersmith & Fulham –
3rdSector Investment Funding
230,000
Coronavirus-related funding:
Culture Recovery Fund (restricted)
-
Coronavirus Job Retention Scheme (restricted)
-
Restart Grant
-
Additional Restrictions Grant
-
Omicron Hospitality and Leisure Grant
-
Local Restrictions Support Grants
-
Project funding:
Arts Council England – National Lottery Project Grant
-
British Council – Cultural Exchange Programme
-
Department for Work and Pensions – Kickstart Scheme
-
Trusts & Foundations
Restricted grants:
Young People’s Programme activities
198,387
Theatre productions activities
23,300
Unrestricted grants
24,500
Total income from charitable activities: grants
1,596,427		 2022
£
937,675
-
145,508
-
42,747
59,923
29,660
62,646
1,278,159
2022
£
115,774
2022
£
1,120,240
230,000
188,680
98,513
18,000
20,000
6,000
1,179
49,000
29,890
29,840
257,434
9,300
10,000
2,068,076

3. (a) Income from donations

24

Lyric Theatre Hammersmith Limited (The) Notes to the Financial Statements For the year ended 31 March 2023

Included in note 3 above are government grants of £230,000 from the London Borough of Hammersmith & Fulham (2022: £230,000 from the London Borough of Hammersmith and Fulham, £98,513 from the Coronavirus Job Retention Scheme, £18,000 from the Restart Grant, £20,000 from the Additional Restrictions Grant, £6,000 from the Omicron Hospitality and Leisure Grant and Local Restrictions Support Grants of £1,179.

4. Income from other trading activities

Fundraising events
Corporate fundraising
Commercial trading operations (note 5)		 2023
£
16,840
58,549
776,798
852,187		 2022
£
29,135
65,663
400,677
495,475

5. Commercial trading operations

Lyric Hammersmith Enterprises Limited

The wholly owned trading subsidiary Lyric Hammersmith Enterprises Limited, incorporated in England and Wales, pays all its profits to the charitable company by Gift Aid. Lyric Hammersmith Enterprises Limited manages catering, hires and events at the Lyric Hammersmith Theatre.

The company owns the entire issued share capital of 2 ordinary shares of £1 each. A Summary of the trading results is shown below.

Summary profit and loss account:

Turnover
Interest received
Cost of sales
Administration expenses
Management fees
Net profit
Amount gifted to charity
Profit retained in the subsidiary
The assets and liabilities of the subsidiary at 31 March 2022 were:
Current assets
Creditors: amounts falling due within one year
Total net assets
Profit and loss account
Aggregate share capital and reserves
Total funds		 2023
£
776,798
1,895
(177,850)
(463,488)
(137,355)
-
-
-
437,362
(437,360)
2
-
2
2		 2022
£
400,677
74
(69,938)
(185,961)
(144,852)
-
-
-
187,468
(187,468
2
-
2
2

25

Lyric Theatre Hammersmith Limited (The) Notes to the Financial Statements For the year ended 31 March 2023

Lyric Hammersmith Worldwide Limited

The wholly owned trading subsidiary Lyric Hammersmith Worldwide Limited, incorporated in England and Wales provides production services to Lyric Theatre Hammersmith Limited.

The company owns the entire issued share capital of 1 ordinary share of £1. A Summary of the trading results is shown below.

Summary profit and loss account:
Turnover
Cost of sales
Net profit/(loss)
Taxation
Profit retained in the subsidiary
The assets and liabilities of the subsidiary at 31 March 2022 were:
Current assets
Creditors: amounts falling due within one year
Total net assets
Profit and loss account
Aggregate share capital and reserves
Total funds
6. Expenditure on activities for raising funds
Trading companies staff costs
Trading companies other costs
Fundraising staff costs
Other direct fundraising costs
Support costs (note 8)
7. Charitable activities
Activities
undertaken
directly
£
Theatre productions
3,170,525
Young People’s programme
454,945
3,625,470		 Summary profit and loss account:
Turnover
Cost of sales
Net profit/(loss)
Taxation
Profit retained in the subsidiary
The assets and liabilities of the subsidiary at 31 March 2022 were:
Current assets
Creditors: amounts falling due within one year
Total net assets
Profit and loss account
Aggregate share capital and reserves
Total funds
6. Expenditure on activities for raising funds
Trading companies staff costs
Trading companies other costs
Fundraising staff costs
Other direct fundraising costs
Support costs (note 8)
7. Charitable activities
Activities
undertaken
directly
£
Theatre productions
3,170,525
Young People’s programme
454,945
3,625,470		 2023
£
1,465,872
(1,992,811)
(526,939)
526,939
-
780,653
(780,652)
1
-
1
1
2023
£
369,867
262,596
216,167
21,396
370,553
1,240,579
Support
costs
£
1,350,363
193,766
1,544,129		 2022
£
1,338,563
(1,592,277)
(253,714)
253,714
-
259,859
(259,858)
1
-
1
1
2022
£
136,788
115,561
209,687
35,747
250,084
747,867
Total
2023
£
4,520,888
648,711
5,169,599
3,625,470

26

Lyric Theatre Hammersmith Limited (The) Notes to the Financial Statements For the year ended 31 March 2023

Theatre productions
Young People’s programme
8. Support costs
Staff costs
Building costs
Administration costs
Depreciation
Irrecoverable VAT on overheads
Governance costs:
Audit fees
Legal fees
Staff costs
Building costs
Administration costs
Depreciation
Irrecoverable VAT on overheads
Governance costs:
Audit fees
Legal fees		 2,417,853
1,214,723
339,988
170,809
2,757,841
1,385,532
Cost of
Charitable
raising
activities
funds
£
£
249,767
59,938
452,631
108,621
297,969
71,505
426,794
102,420
87,818
21,074
29,029
6,966
121
29
1,544,129
370,553
216,513
39,080
379,388
68,478
259,747
46,884
445,321
80,379
59,721
10,779
21,741
3,924
3,101
560
1,385,532
250,084		 Total
2022
£
3,632,576
510,797
4,143,373
Total
2023
£
309,705
561,252
369,474
529,214
108,892
35,995
150
1,914,682
Total
2022
£
255,593
447,866
306,631
525,700
70,500
25,665
3,661
1,635,616

Support costs are allocated on the basis of the relative proportion of direct costs incurred.

9. Taxation

Domestic current year tax
UK Corporation Tax		 2023
£
(526,939)
(526,939)		 2022
£
(253,714)
(253,714)

Income from UK Corporation Tax relates to a credit for Theatre Tax Relief.

27

Lyric Theatre Hammersmith Limited (The) Notes to the Financial Statements For the year ended 31 March 2023

10.Staff costs and directors’ remuneration

2023
£
Salaries and wages
2,090,994
Employers’ National Insurance contributions
194,767
Employers’ pension contributions
48,341
2,334,102
These costs are included as follows:
Activities for raising funds
586,034
Theatre productions
1,231,794
Young People’s programme
206,569
Support costs
309,705
2,334,102
The average number of employees during the year was as follows:
2023
Full time
42
Part time and casual
52
94
The number of full time equivalent employees was 79_(2022: 65)_in the following categories:
Activities for raising funds
16
Theatre productions
50
Young People’s programme
7
Support activities
6
79		 2022
£
1,658,571
146,017
38,080
1,842,668
346,475
1,049,861
190,739
255,593
1,842,668
2022
33
51
84
9
41
9
6
65

Two employees’ total employee benefits fell within the range of £60,001-£70,000 and one within the range of £80,001-£90,000 (2022: two in the range of £60,001-£70,000 and one in the range of £80,001-£90,000) .

Key management personnel comprise the Senior Management Team of 10 employees (2022: 9 employees): Artistic Director / Chief Executive, Executive Director, Associate Director, Commercial Director, Director of Communications and Sales, Director of Development, Director of Finance and Resources, Director of Young Lyric, Head of Production and Senior Producer.

The total employee benefits of the key management personnel were £578,150, including benefits relating to statutory parental leave (2022: £492,722) .

28

Lyric Theatre Hammersmith Limited (The) Notes to the Financial Statements For the year ended 31 March 2023

11.Tangible fixed assets

All assets relate to the charitable company and are used for charitable purposes.

Leasehold
Equipment
improvements
and furniture
£
£
Cost
At 1 April 2022
12,808,851
2,258,366
Additions
60,980
23,705
At 31 March 2023
12,869,831
2,282,071
Depreciation
At 1 April 2022
5,056,586
2,131,196
Charge for the year
449,825
79,388
At 31 March 2023
5,506,411
2,210,584
Net book value
At 31 March 2023
7,363,420
71,487
At 31 March 2022
7,752,265
127,170		 Total
£
15,067,217
84,685
15,151,902
7,187,782
529,213
7,716,995
7,434,907
7,879,435

Legal charges exist over the long-term leasehold properties to secure the interests of Arts Council England, which contributed grant funding towards their redevelopment.

12.Investments

Investments
Group Company
2023 2022 2023 2022
£ £ £ £
Investment in subsidiary undertakings - - 3 3

Investments are included at cost and are unlisted. In the opinion of the directors the market value of the investment is not materially different from the cost.

Number % of issued % of issued Cost of
of shares share capital shares
Lyric Hammersmith Enterprises Limited (note 5) 2 100% 2
Lyric Hammersmith Worldwide Limited (note 5) 1 100% 1
Debtors
Group Company
2023 2022 2023 2022
£ £ £ £
Trade debtors 156,249 120,971 47,611 88,058
Subsidiary undertakings - - 1,073,695 371,727
Other debtors 857,466 269,575 76,812 9,715
Prepayments 57,479 47,410 51,802 45,087
Accrued income 50,592 53,071 50,592 53,071
1,121,786 491,027 1,300,512 567,658

13.Debtors

29

Lyric Theatre Hammersmith Limited (The) Notes to the Financial Statements For the year ended 31 March 2023

14.Creditors: amounts falling due within one year

Trade creditors
Taxation and social security
Other creditors
Accruals
Deferred income		 Group
2023
2022
£
£
345,426
399,547
52,754
25,022
101,882
156,446
370,953
336,624
344,712
243,635
1,215,727
1,161,274		 Company
2023
2022
£
£
332,771
387,028
11,974
5,844
65,102
127,755
317,200
321,414
344,712
243,635
1,071,759
1,085,676		 Company
2023
2022
£
£
332,771
387,028
11,974
5,844
65,102
127,755
317,200
321,414
344,712
243,635
1,071,759
1,085,676
1,085,676

15.Restricted funds

Restricted funds
Capital grants – extension 2004
(1)
Young People’s fund
(2)
Capital project 2015
(3)
Capital project 2018
(4)
Restricted activity fund
(5)		 31 March
Net incoming
31 March
2022
/(outgoing)
Transfers
2023
£
£
£
£
916,440
(91,622)
-
824,818
182,922
(27,222)
-
155,700
6,099,439
(286,351)
-
5,813,088
483,671
(55,714)
-
427,957
-
22,400
-
22,400
7,682,472
(438,509)
-
7,243,963

(1) The Capital grants – extension 2004 fund relates to the extension built in 2004 and represents fixed assets. The movement on the fund represents depreciation charges.

Capital grants – extension 2004 (1)
Young People’s fund
(2)
Capital project 2015
(3)
Capital project 2018
(4)
Restricted activity fund
(5)		 31 March
Net incoming
31 March
2021
/(outgoing)
Transfers
2022
£
£
£
£
1,008,062
(91,622)
-
916,440
77,366
105,556
-
182,922
6,385,790
(286,351)
-
6,099,439
539,385
(55,714)
-
483,671
219,090
(219,090)
-
-
8,229,693
(547,221)
-
7,682,472

30

Lyric Theatre Hammersmith Limited (The) Notes to the Financial Statements For the year ended 31 March 2023

16.Unrestricted funds

Designated funds
New Building 2015 Fund
(1)
Fixed Asset Fund
(2)
Building Capital Reserve Fund /
Building Renewal Fund
(3)
Re-opening Fund 2021
(4)
Building Emergency Reserve Fund (5)
Programme Development Fund
(6)
Organisational Development Fund (7)
Green Fund
(8)
Next Generation Fund
(9)
Reserves Fund
(10)
Total designated funds
Other unrestricted funds
General funds
(11)
Total unrestricted funds		 31 March
31 March
2022
Incoming
Outgoing
Transfers
2023
£
£
£
£
£
412,160
-
(65,452)
(346,708)
-
77,858
-
(30,076)
431,393
479,175
710,000
-
(30,370)
(84,685)
594,945
200,000
-
(200,000)
-
-
100,000
-
-
(100,000)
-
200,000
-
(25,000)
(175,000)
-
25,001
-
-
(25,001)
-
25,000
-
-
(25,000)
-
100,297
-
(25,297)
(75,000)
-
-
-
-
965,000
965,000
1,850,316
-
(376,195)
564,999
2,039,120
737,292
5,204,829
(5,368,787)
(564,999)
8,335
2,587,608
5,204,829
(5,744,982)
-
2,047,455

31

Lyric Theatre Hammersmith Limited (The) Notes to the Financial Statements For the year ended 31 March 2023

Young People’s programme and the remaining funds were transferred to the amalgamated Reserves Fund (see below).

Designated funds
New Building 2015 Fund
(1)
Fixed Asset Fund
(2)
Building Capital Reserve Fund
(3)
Re-opening Fund 2021
(4)
Building Emergency Reserve Fund (5)
Programme Development Fund
(6)
Organisational Development Fund (7)
Green Fund
(8)
Next Generation Fund
(9)
Total designated funds
Other unrestricted funds
General funds
(11)
Total unrestricted funds		 31 March
Net incoming
31 March
2021
/(outgoing)
Transfers
2022
£
£
£
£
474,563
(62,403)
-
412,160
19,886
(29,610)
87,582
77,858
660,000
(87,582)
137,582
710,000
565,000
(365,000)
-
200,000
100,000
-
-
100,000
200,000
-
-
200,000
25,001
-
-
25,001
25,000
-
-
25,000
100,297
-
-
100,297
2,169,747
(544,595)
225,164
1,850,316
548,435
414,021
(225,164)
737,292
2,718,182
(103,574)
-
2,587,608

17.Analysis of group net assets between funds

Fixed assets and investments
Current assets
Creditors
Fixed assets and investments
Current assets
Creditors		 Unrestricted funds
General
Designated
funds
funds
£
£
-
479,177
1,224,062
1,559,943
(1,215,727)
-
8,335
2,039,120
Unrestricted funds
General
Designated
funds
funds
£
£
-
490,018
1,898,566
1,360,298
(1,161,274)
-
737,292
1,850,316		 Restricted
funds
£
6,955,730
288,233
-
7,243,963
Restricted
funds
£
7,389,417
293,055
-
7,682,472		 Total
2023
£
7,434,907
3,072,238
(1,215,727)
9,291,418
Total
2022
£
7,879,435
3,551,919
(1,161,274)
10,270,080

32

Lyric Theatre Hammersmith Limited (The) Notes to the Financial Statements For the year ended 31 March 2023

18.Lease obligations – charity and group

The total of future minimum lease payments under the charity’s non-cancellable 125 year operating lease for the Lyric Theatre is as follows:

Land and buildings
One year
Two to five years
More than five years		 Group
2023
2022
£
£
40,000
40,000
160,000
160,000
4,560,000
4,600,000
4,760,000
4,840,000		 Charity
2023
2022
£
£
40,000
40,000
160,000
160,000
4,560,000
4,600,000
4,760,000
4,840,000

19.Related party transactions

During the year ended 31 March 2023 trustees and persons connected with them received no remuneration (2022: nil) and expenses of £545 (2022: £366) .

During the year ended 31 March 2023 trustees and persons connected with them made donations to the Charity totalling £10,553 (2022: £6,799) .

At 31 March 2023 the following amounts were owed to the Charity by its subsidiary companies:

Transactions between Lyric Theatre Hammersmith and its subsidiaries are detailed in note 5.

33

Lyric Theatre Hammersmith Limited (The) Notes to the Financial Statements For the year ended 31 March 2023

20.Comparative consolidated statement of financial activities for the year ended 31 March 2022

Note
Income from:
Donations
3(a)
Charitable activities
Theatre & Young
People’s Activity
2
Grants
3(b)
Other trading activities
4
Interest received
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Net income/(expenditure)
before taxation
Taxation
9
Transfers between funds
15,16
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 General
Designated
Restricted
Funds
Funds
Funds
£
£
£
115,774
-
-
1,278,159
-
-
1,405,419
-
662,657
495,475
-
-
2,247
-
-
3,297,074
-
662,657
747,867
-
-
2,388,900
544,595
1,209,878
3,136,767
544,595
1,209,878
160,307
(544,595)
(547,221)
253,714
-
-
(225,164)
225,164
-
188,857
(319,431)
(547,221)
548,435
2,169,747
8,229,693
737,292
1,850,316
7,682,472		 Total
2022
£
115,774
1,278,159
2,068,076
495,475
2,247
3,959,731
747,867
4,143,373
4,891,240
(931,509)
253,714
-
(677,795)
10,947,875
10,270,080

34