Sadler's Wells Trust Limited (Limited by Guarantee)
Company Number 1488786 Registered Charity Number 279884
ANNUAL REPORT AND
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
Sadler's Wells Trust Limited (Limited by Guarantee)
Index
Page
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1 Trustees, officers and administrative information
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2 - 8 Trustees' report
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9 - 12 Independent auditors' report 13 Consolidated statement of financial activities 14 Balance sheets 15 Statement of Cash Flows
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16 - 28 Notes to the financial statements
Sadler's Wells Trust Limited (Limited by Guarantee)
Trustees, Officers and Administrative Information
Trustees
Nigel Higgins (Chairman) Maria Albonico Nicholas Basden Humphrey Battcock Melissa Bethell Sue Butcher Sarah Evans Farah Golant David Lan David Ripert Melanie Smith Matthew Slotover Sharon White
Secretary
Alistair Spalding
Registered Office
Sadler's Wells Theatre Rosebery Avenue London EC1R 4TN
Bankers
Coutts & Co. 440 Strand London WC2R 0QS
Auditors
Moore Kingston Smith LLP Chartered Accountants 60 Goswell Road London EC1M 7AD
Solicitors
Clifford Chance LLP 10 Upper Bank Street London E14 5JJ
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Sadler’s Wells Trust Limited (Limited by Guarantee) Trustees’ Report
The Trustees, who are also the Directors of the company under the Companies Act 2006, submit their report and the consolidated financial statements of Sadler's Wells Trust Limited for the year ended 31 March 2021 which have been prepared in compliance with current statutory requirements, the Charities SORP (FRS 102) and with the charity's governing document, its Memorandum and Articles of Association.
Objectives
The object for which the charity is established is to advance education particularly by encouraging the understanding and appreciation of the dramatic arts.
Strategic Review
Achievements and Performance
Sadler’s Wells is a world-leading creative organisation dedicated to dance in all its forms. With over three centuries of theatrical heritage and a year-round programme of performances and learning activities, it is the place where artists come together to create dance, and where we welcome everyone to experie nce dance – to take part, learn, experiment and be inspired. Its vision is to reflect and respond to the world through dance: enabling artists of all backgrounds to create dance that moves us and opens our minds, and sharing those experiences with the wide st possible audiences – to enrich their lives and deepen their understanding of what it means to be human.
Sadler’s Wells has commissioned and presented more new dance work than any other theatre in the world, embracing the popular and the unknown. Since 2005, it has helped to bring 193 new dance works to the stage, many of them involving its 16 Associate Artists, three Resident Companies and four Associate Companies – some of the most exciting talents working in dance today.
On 16 March 2020 UK theatres were instructed to close by the government as part of their response to the global coronavirus pandemic. This closure had a profound impact on the organisation and all plans needed to be revised quickly in order to respond to the challenging health crisis. Despite the uncertainty, the key objectives of our activity during this time were to:
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Secure Sadler's Wells' short and medium term financial future
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Deepen engagement, loyalty and support for Sadler's Wells
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Enable a confident and enthusiastic return of audiences and colleagues as soon as conditions permit
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Ensure artists and partners could survive the crisis and thrive thereafter
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Develop our digital offerings to meet the moment and prepare us for the future and
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Diversify audiences, reaching new people around the world.
With a high dependency on earned income Sadler’s Wells had to mobilise quickly and apply for emergency funding. We were awarded a £1.5m grant from Arts Council England’s Emergency Response Fund to support the organisation through to September 2020, followed by a further grant of £2.9m and a loan of £4.25m from the Department for Culture, Media and Sport’s Cultural Recovery Fund to support us through the recovery period.
During the autumn of 2020 a limited number of socially distanced shows took place and we sought to maintain engagement with audiences, donors, artists, companies, participants and specialist freelancers; all key relationships for the future of the organisation.
Sadler’s Wells embraced digital opportunities with an increase in activity on Digital Stage, launched during the year. We shared through our digital platforms and partnerships 11 full length dance works, 5 dance documentaries, 25 dance workshops, 4 screendance films, 4 insight events wit h choreographers along with an online gala. This programme was seen by more than 5 million people globally and provided work and income to hundreds of artists and freelancers.
We have implemented significant cost reductions and efficiency savings over the last year. In common with many other organisations in the sector part of these savings included having to say goodbye to long standing colleagues with a redundancy programme taking place over the summer of 2020. This sadly resulted in 18% of permanent and
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Sadler’s Wells Trust Limited (Limited by Guarantee) Trustees’ Report
fixed term contract staff being made redundant and a further 9% laid off or placed on short term working. Temporary pay cuts were implemented in 2020/21 for all but the lowest paid and pay restraint will continue into 2021/22.
Home working arrangements were embraced by those able to do so and the company took advantage of the governments job retention scheme with 90% of colleagues furloughed at one point.
Property costs have also been reduced as going forward we see less need for office accommodation. The decision was taken for 369 St John’s Street to become an investment property, releasing approximately £1m to reserves and providing a rental income. A rent holiday of £183k for 2020/21 has been requested from the London School of Economics relating to the Peacock Theatre but this continues to be resisted.
Following a halt in 2020 in the construction programme for our new mid-scale venue in Stratford, building works have resumed and the completion date for the theatre is now projected for the latter part of 2023, when the organisation will grow in scale and will have the resources to deepen support for dance and dance artists.
Learning & Engagement
Our learning and engagement programmes offered high quality participation opportunities to people of all ages and abilities. From the National Youth Dance Company to the internationally acclaimed Company of Elders, Breakin’ Convention’s Higher Learning and Open Art Surgery. These were mainly delivered digitally with in person opportunities offered when covid restrictions have allowed.
Plans for 2021 - 22
Sadler’s Wells opened its doors again on 17th May 2021 with a rich and diverse programme planned for 2021/22. It is important that in these times we maintain a diverse programme and do not simply programme those companies who can afford some financial loss. Much of the programme is work which has been rescheduled from 2021/21, including performances from English National Ballet, Northern Ballet, Rambert, Breakin’ Convention and Alexander Whitley. In August 2021, we had the rescheduled run of Singing in the Rain which was our first show planned back at full capacity.
Financial Review
Total income for the year ending 31[st] March 2021 was £15.6m, compared to £32.4m in the prior year. £3.2m was received in voluntary donations from a range of individuals, Trusts and Foundations and corporate bodies. £ 7.7m was received from the Arts Council including the National Portfolio Organisation grant of £2.5m, Emergency Response Fund grant of £1.5m and the Cultural Recovery Fund grant of £2.97m. £3.6m was received from the Coronavirus Job Retention Scheme for furloughed staff.
Expenditure in the period was predominantly on the charity’s main charitable objective, with 90% of unrestricted expenditure on productions and the running of the theatre. The remaining 10% was spent on fundraising activities and trading costs.
The total net movement in funds for the year was £3.5m, made up of an unrestricted funds surplus of £2.38m (after accounting for theatre tax relief of £7k), a deficit on designated funds of £0.54m and a surplus on restricted funds of £1.70m. As a result, we ended the year with total reserves of £6.3m.
These results incorporate the trading of the subsidiary, Sadler’s Wells Limited. This company operates the catering at the theatre, promotes commercial events hire and produces commissions from Sadler’s Wells Trust Ltd. The company gifted a profit of £164k for 2020/21 (2019/20: £1.2m) to Sadler’s Wells Trust Limited. The level of trading was severely affected by the fact that the theatre was closed for a large part of the year under review.
Fundraising
A key focus this year was to steward supporters who stayed with us through the Covid-19 pandemic. Through events, personalised communications and new ways of working such as an online Global Gala, we were able to sustain
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Sadler’s Wells Trust Limited (Limited by Guarantee) Trustees’ Report
generous giving. We continued to secure gifts and pledges towards key activities, including major contributions to our Digital Stage as well as the Re-launch Fund, set up specifically to help us reopen. Fundraising costs represented 13% of funds raised.
Sadler’s Wells operates an internal fundraising team and does not engage commercial fundraising participators to carry out fundraising activity. Sadler’s Wells is a member of the Fundraising Regulator and our fundraising approach takes account of its Code of Fundraising Practice. Sadler’s Wells has at all times complied with the standards of the Regulator and have received no complaint in the year review.
We continue to comply with the General Data Protection Regulations at Sadler’s Wells and our privacy policy is available at www.sadlerswells.com/about -us/privacy-policy
Principal Risks and Uncertainties
The charity trades in the high-risk environment of theatre management and in order to pursue its objectives continually enters into relatively high-risk theatre presentations. The trading subsidiary Sadler’s Wells Limited relies principally on less volatile catering and events income, together with guaranteed commissions to produce shows for Sadler’s Wells Trust Ltd.
The charity’s risk assessment strategy is to review and update systems and controls as necessary. A Risk Register is in place and is approved and monitored by the Trustees. Based on that Risk Register the Trustees have identified the principal risks as uncertainty over the ending of lockdown and social distancing roadmap, failure to meet ticket sales and fundraising targets, failure of Sadler’s Wells’ own productions to recoup costs leading to loss of profit , disruption to business from cyber attacks and Sadler’s Wells Foundation Limited resources being unequal to the capital repairs programme for the Sadler’s Wells theatre.
In addition to implementing cost cutting and efficiency measures and making applications to the Arts Council Emergency Response Fund and to the Cultural Recovery Fund, Sadler’s Wells has invested significant effort in ensuring that its main venue in Islington can be a Covid-safe environment for performers, contractors, staff and visitors to return to when government restrictions allow .
Staff have worked almost exclusively from home since the start of the pandemic, other than those in roles which require their presence on site (eg security, building services). Staff will return to the office as restrictions allow.
Looking forward, Sadler’s Wells continues to face a heightened level of financial risk, due to the continued uncertainty around the potential for new restrictions and a potential loss of audience confidence to return to live theatre. The Trustees intend to provide increased financial resilience to mitigate this risk through raising the level of unrestricted reserves (see Reserves section below).
Investment Powers and Policy
Under the Memorandum and Articles of Association, the charity has the power to invest funds not immediately required for its purposes in such investments as may be considered appropriate by the Trustees. Monies are only invested in funds that are regulated by the FCA. Cash is held on deposit with AAA rated UK banks.
The Trustees have agreed an investment policy in line with the Charities Commission Guidance CC14. The key objective is to achieve a total return of 3% p.a. above the RPI over a rolling 3 year time horizon by investing in a diversified portfolio of low to medium risk assets.
During the prior year, £1.5m was held with Ruffer LLP in the Ruffer Absolute Return Fund. This investment was liquidated in May 2020 (with an investment gain of £79k) and the funds retained as cash. No funds are currently held on investment.
Equality and Employment
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Sadler’s Wells Trust Limited (Limited by Guarantee) Trustees’ Report
Sadler’s Wells does not discriminate on the basis of age, gender, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race (which includes colour, nationality and ethnic or national origins), religion or belief, sex or sexual orientation. In addition, Sadler’s Wells does not discriminate because of working patterns, trade union membership (or non-membership), family or caring responsibilities, socio-economic barriers or spent convictions.
Sadler’s Wells is committed to building a culturally diverse workforce and actively encourage s applicants from different backgrounds. Sadler’s Wells is committed to developing and training all staff, not only to enable them to do their own jobs, but also to assist them in their careers. Staff are also encouraged to consider what they could do for their own career development, and to use every opportunity to discuss feedback with their line manager.
As users of the Disability Confident scheme, Sadler’s Wells guarantees to interview all disabled applicants who meet the minimum criteria for our vacancies.
A particular focus this year has been on how we become an actively anti-racist organisation. This has been the subject of wide engagement with colleagues, artists and trustees.
Key Management Personnel
The charity considers its key management personnel to be the Senior Management Team comprising : the Artistic Director and Chief Executive, Executive Director, Director of Finance and Business Performance, Director of Programme Management, Executive Producer, Technical Director, Interim Director of Marketing and Sales, Director of Development, Director of Learning and Engagement, Director of Data and Systems, Director of Content and Communications, Director of Catering and Events and Director of Visitor Experience.
The remuneration of the Artistic Director and Chief Executive is decided by the Board, the Artistic Director and Chief Executive decides the remuneration of other members of the Senior Management Team. Total remuneration of these people, including pension contributions and employer’s national insurance, was £964,546 (2020: £1,356,733). The number of roles included in the Senior Management Team has increased to 13 this year (from 12 last year). The salaries are fair and affordable, and benchmarked against similar arts organisations. Early in the financial year, all members of Senior Management Team took a pay cut of between 22.5% and 27.5% as part of the organisation’s response to the pandemic.
Going Concern
The Trustees consider the charity remains a going concern, despite the very challenging trading conditions that Sadler’s Wells has experienced since its venues were first instructed to close by the Government on the 16th March 2020, based on the charity’s performance to date in the 2021/22 financial year and consideration of financial forecasts through to March 2023.
During 2020 the charity was successful in securing grants from the Arts Council’s England’s Emergency Response Fund and the Department of Culture, Media and Sport’s Cultural Recovery Fund, with grants of £1.5m and £2.975m respectively being received.
Given the ongoing impact of the pandemic, in early 2021 Sadler’s Wells applied for and received a loan from the Cultural Recovery Fund of £4.25m in March 2021. As a result of this and the projected programme of activity for the coming year, the Trustees believe that Sadler’s Wells will be able to meet its liabilities for the 12 month period from the date of these accounts and have consequently prepared the accounts on a going concern basis.
Public Benefit
Sadler’s Wells recognises and welcomes the need to carry out its charitable activities for the benefit of the general public. Having regard to the guidance of the Charity Commission, including the Charity Commission’s guidance on public benefit (‘public benefit: running a charity’ (PB2)), the Trustees consider that the following activities in particular demonstrate the way in which Sadler’s Wells achieves this aim:
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Sadler’s Wells Trust Limited (Limited by Guarantee) Trustees’ Report
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Providing the most wide ranging programme of dance, including touring outside of our theat res in London.
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Encouraging access through the availability of £15 tickets for most shows on Sadler’s Wells main stage together with other low-cost tickets available during the year for shows such as Breakin’ Convention, Sadler’s Sampled Festival and all Lilian Baylis Studio shows.
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Engagement with the community through a wide range of creative learning and community projects.
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Providing exemplary access for disabled people through both pricing and facilities.
Reserves Policy
The aim of the charity’s general reserves is to protect it against significant reductions in income as a result of external factors. The targeted reserve is based upon a review of the level of overhead that the charity is committed to, together with an analysis of the level reserves needed to trade through an external shock to the charity’s income. General reserves as at the 31[st] March 2021 were £2,829k (2020: £451k).
By 2023, Sadler’s Wells will begin operating another theatre in Stratford and will need to build higher general reserves as it increases its level of activity. The Trustees’ aim prior to the pandemic was to increase the level of the reserve to £1.8m by 2026, through the application of unrestricted surpluses generated in future years.
However, as a result of the continued uncertainty arising from the pandemic, the Trustees have concluded that a target of £1.8m and the associated timescales to 2026 for building up general reserves to the proposed level are inadequate to meet the current and future financial risk management needs of the organisation.
In order to build up the general reserve in the light of the pandemic, the Trustees decided in July 2020 to undesignate the Creative Development Fund and transferred £0.8m to general reserves. The grants awarded to Sadler’s Wells by Arts Council England’s Emergency Response Fund and the Department for Culture Media and Sport’s Cultural Recovery Fund supported an increment in general reserves of £600k. The Trustees also agreed to convert the building at 369 St John’s Street (estimated market value £1m) from a staff office into an investment property occupied by third parties at commercial rent which increased general funds by £0.9m.
Trustees
The Trustees who served from 1[st] April 2020 to the date of signing the accounts were:
Nigel Higgins (Chairman) Maria Albonico (appointed 30[th] June 2020) Nicholas Basden (appointed 22[nd] April 2021) Humphrey Battcock James Bethell (resigned 30[th] June 2020) Melissa Bethell (appointed 21[st] September 2020) Sue Butcher Sarah Evans Farah Golant David Lan Tim Marlow (resigned 30[th] June 2020) David Ripert Matthew Slotover (appointed 21[st] September 2020) Melanie Smith Sanoke Viswanathan (resigned 21[st] September 2020) Sharon White
The Trustees are appointed for a term of 3 years, which is often extended to a second or third. A skills audit of the Trustees is conducted annually in order to better inform decisions regarding the appointment of new Trustees.
The charity provides an induction for newly appointed Trustees which informs them of their duties and responsibilities as directors of the company, and familiarises them with the operation of the theatre s.
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Sadler’s Wells Trust Limited (Limited by Guarantee) Trustees’ Report
The Trustees delegate the day to day running of the theatre to the Artistic Director and Chief Executive, Alistair Spalding. The Board retains ultimate control of the overall strategic direction of the theatre in that they appoint the Artistic Director and Chief Executive, and are involved in recruitment of senior members of staff. The Board sets the remuneration of the Artistic Director and Chief Executive, who in turn sets the remuneration of key management personal. The Board also approves the annual budget, but delegates responsibility for the selection of artistic programme to the Artistic Director and Chief Executive, together with day to day management of the operating budgets. Board approval is only then sought for any major changes to the artistic programme.
The Board met six times during the year and has sub committees including the Finance, Audit and Risk Committee, the Development Council and Stratford Delivery Committee. The Board spends half a day each year debating and reviewing long term strategy with senior members of staff.
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Sadler’s Wells Trust Limited (Limited by Guarantee)
Trustees’ Report
Statement of Trustees’ Responsibilities
The Trustees (who are also directors of Sadler’s Wells Trust Limited 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 Trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and the charitable group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and group for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.
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In so far as the Trustees are aware:
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there is no relevant audit information of which the charity’s auditor is unaware; and
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the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
Connected Charities
Sadler's Wells Trust Limited is connected to other charities, details of these charities are given in note 21 to the financial statements.
Auditors
The auditors, Moore Kingston Smith LLP, are deemed to be reappointed under section 487 (2) of the Companies Act 2006.
The Strategic Report, which forms part of the Trustees’ Report, is approved by the Trustees in their capacity as directors of the company. The Trustees’ Report was approved by the members of the Board on 21st September 2021 and signed on their behalf by:
Nigel Higgins Chairman
Charity registration number 279884 Company registration number 1488786
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SADLER'S WELLS TRUST LIMITED (LIMITED BY GUARANTEE)
Opinion
We have audited the financial statements of Sadler's Wells Trust Limited for the year ended 31 March 2021 which comprise Consolidated Statement of Financial Activities, the Consolidated and Parent Charitable Company Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 March 2021 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SADLER'S WELLS TRUST LIMITED (LIMITED BY GUARANTEE)
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the trustees’ annual report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
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the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SADLER'S WELLS TRUST LIMITED (LIMITED BY GUARANTEE)
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on page 8, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group and 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 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
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.
Our approach was as follows:
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We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council
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We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
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• We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
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We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
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Based on this understanding, we designed specific appropriate audit procedures to identify instances of noncompliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SADLER'S WELLS TRUST LIMITED (LIMITED BY GUARANTEE)
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and parent charitable company’s internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
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Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters which 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Date:
James Cross (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor
Devonshire House 60 Goswell Road London EC1M 7AD
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Sadler's Wells Trust Limited
(Limited by Guarantee)
Consolidated Statement of Financial Activities
For the year ended 31 March 2021
| Note Income Donations and legacies Sponsorship and donations Arts Council and other government funding 2 Charitable Activities: Theatre presentations Other trading activities Other income Total Income Expenditure Charitable activity: theatre presentations Expenditure on presentations 3 Theatre overheads 3 Raising Funds Fundraising costs 3 3 Total Expenditure Net Income / (Expenditure) before Investment (Loss) / Gain Net Investment (Loss) / Gain Net Income / (Expenditure) Other Recognised Gains and Losses Gross Transfer Between Funds 19 Net funds at 1 April 2020 Net Funds at 31 March 2021 Net Movement in Funds Trading costs |
Unrestricted Funds Year ended 31 March 2021 £'000 1,535 10,790 770 218 63 13,376 6,701 4,503 406 941 12,551 825 79 904 7 1,467 2,378 451 2,829 |
Designated Funds Year ended 31 March 2021 £'000 26 - - - - 26 - - - 26 - 26 905 (1,467) (536) 1,464 928 |
Restricted Funds Year ended 31 March 2021 £'000 1,602 486 - - 60 2,148 343 109 - - 452 1,696 - 1,696 - - 1,696 863 2,559 |
Total Funds Year ended 31 March 2021 £'000 3,163 11,276 770 218 123 15,550 7,044 4,612 406 941 13,003 2,547 79 2,626 912 - 3,538 2,778 6,316 |
Total Funds Year ended 31 March 2020 £'000 As Restated 2,299 3,406 22,950 3,200 518 |
|---|---|---|---|---|---|
| 32,373 | |||||
| 24,164 5,872 562 2,216 |
|||||
| 32,813 | |||||
| (440) 34 |
|||||
| (406) 369 - |
|||||
| (36) 2,814 |
|||||
| 2,778 |
None of the charitable group's activities were acquired or discontinued during the above two financial periods. The charitable group has no recognised gains and losses other than those dealt with in the above Statement of Financial Activities. Restricted funds have been applied only for the purposes for which the income was received.
Page 13
Sadler's Wells Trust Limited (Limited by Guarantee)
Balance Sheets at 31 March 2021
| Note Fixed Assets Tangible assets 6 Investment Property 7(b) Current Assets Stock for resale Debtors 8 Cash at bank and in hand Creditors: Amounts Falling Due Within One Year 9 Net Current Assets Creditors: Amounts falling due after more than one year 10 Total Assets Less Current Liabilities Funds Restricted 18 Unrestricted - Designated 18 Unrestricted 18 |
2021 Consolidated £'000 122 1,650 1,772 50 1,542 11,745 13,337 (4,543) 8,794 (4,250) 6,316 2,559 928 2,829 6,316 |
2021 Charity £'000 122 1,200 1,322 28 2,321 11,292 13,641 (4,397) 9,244 (4,250) 6,316 2,559 928 2,829 6,316 |
2020 Consolidated £'000 145 650 795 64 3,850 4,553 8,467 (6,484) 1,983 - 2,778 863 1,464 451 2,778 |
2020 Charity £'000 145 200 |
|---|---|---|---|---|
| 345 | ||||
| 26 4,018 4,540 |
||||
| 8,584 (6,152) |
||||
| 2,432 - |
||||
| 2,777 | ||||
| 863 1,464 451 |
||||
| 2,778 |
As permitted by s408 Companies Act 2006, the Charity has not presented its own Statement of Financial Activities and related noted. The Charity surplus for the year was 3,538,000 (2020:36,000 deficit)
Approved for issue by the members of the board on 21st September 2021 and signed on their behalf by:
Nigel Higgins Chairman
Company number 1488786
Page 14
Sadler's Wells Trust Limited (Limited by Guarantee)
Consolidated Statement of Cash Flows
For the year ended 31 March 2021
| Year ended | Year ended | Year ended | Year ended | ||
|---|---|---|---|---|---|
| 31 March 2021 | 31 March 2020 | ||||
| Note | £'000 | £'000 | £'000 | £'000 | |
| Net cash flows from operating activities | 12 | 2,940 | (733) | ||
| Cash flows from investing and financing activities | 13 | 4,252 | 34 | ||
| Net change in cash and cash equivalents in the year | 7,192 | (699) | |||
| Reconciliation of net cash flow | |||||
| to movement in net cash | |||||
| Increase / (Decrease) in cash in the year | 7,192 | (699) | |||
| Movement in net cash in the year | 7,192 | (699) | |||
| Net cash and cash equivalents at 1 April 2020 | 4,553 | 5,251 | |||
| Net cash and cash equivalents at 31 March 2021 | 14 | 11,745 | 4,553 |
Page 15
Sadler's Wells Trust Limited (Limited by Guarantee) Notes to the Financial Statements For the year ended 31 March 2021
1 Accounting Policies
(a) Basis of accounting
The financial statements have been prepared under the historical cost convention, subject to the revaluation of certain investments, and in accordance with the accounting policies set out in the notes to the accounts. The accounts comply with the charity’s governing document, the Charities Act 2011, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The Charity is a Public Benefit Entity as defined by FRS102.
The financial statements are prepared in sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest thousand pounds.
(b) Going Concern
The Trustees consider the charity remains a going concern, despite the very challenging trading conditions that Sadler’s Wells has experienced since its venues were first instructed to close by the Government on the 16th March 2020, based on the charity’s performance to date in the 2021/22 financial year and consideration of financial forecasts through to March 2023.
Given the ongoing impact of the pandemic, in early 2021 Sadler’s Wells applied for and received a loan from the Cultural Recovery Fund of £4.25m in March 2021. As a result of this and the projected programme of activity for the coming year, the Trustees believe that Sadler’s Wells will be able to meet its liabilities for the 12 month period from the date of these accounts and have consequently prepared the accounts on a going concern basis.
(c) Income from presentations
Income from presentations, which is matched to relevant performances, represents amounts receivable, excluding Value Added Tax, for goods and services provided in the ordinary course of business. Advance box office income is deferred until the presentation opens. Donations and sponsorship for specific productions are credited to presentation income as the performances take place. The prior year total income from presentations has been restated to include the effect of irrecoverable VAT which had previously been offset against associated costs.
(d) Grants, donations and sponsorship
-
(i) Revenue grants are credited to the Statement of Financial Activities in the period in which they fall due unless they relate to specified future or prior periods, in which case they are deferred or accrued respectively.
-
(ii) Donations and Corporate sponsorship are treated on a cash receipts basis even though the benefits to the sponsor may cover the next accounting period.
-
(iii) Legacies are recognized when probate on the legacy has been completed, and it is probable that income will be received and is quantifiable.
-
(iv) Other income is recognised when the entitlement can be demonstrated, it is probable that it will be received, and it can be reliably measured.
(e) Pension costs
The charity operates an auto enrolment pension scheme. Payments into this scheme, and in respect of employees' private pension schemes, are charged to the Statement of Financial Activities as incurred.
(f) Employee benefits
The costs of short term employee benefits are registered as a liability and expense. Termination benefits are recognised immediately as an expense when the company is committed to provide termination benefits. Costs not paid at the year end are recognised as a liability.
Page 16
Sadler's Wells Trust Limited (Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2021 (cont)
1 Accounting Policies (cont)
(g) Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation. There is a capitalisation threshold policy of £10,000. Depreciation is provided on all tangible fixed assets, excluding land and buildings, at rates calculated to write each asset down to its estimated residual value evenly over its expected useful life. Purchased assets have been depreciated at the following straight line rate:
| Fixtures & fittings | 33.3% |
|---|---|
| Freehold Land and Buildings | 2% |
| Leasehold Land and Buildings | 2% |
| Leasehold Improvements | 5% |
| Computer Equipment | 20% |
The Trustees review the tangible fixed assets annually for any evidence of impairment. Where there is objective evidence of impairment the charity recognises the loss in the Statement of Financial Activities immediately.
Investment properties are reviewed annually and held at fair value, based on the market value for the property which the Trustees consider to be reasonable. The investment properties are revalued by a professional valuer every five years. Changes in fair value and any gains or losses arising on disposal are credited to or charged to the income and expenditure section of the Statement of Financial Activities as ‘gain ’ or loss on investments .
(h) Foreign currencies
Foreign currency balances at 31 March 2021 have been translated into sterling at the rate ruling at that date. Transactions during the course of the period have been translated into sterling at the rate ruling at the transaction date.
(i) Consolidation
The Statement of Financial Activities and Balance Sheet consolidate the financial statements of the charity and its trading subsidiary. The results for the trading subsidiary are consolidated on a line by line basis.
(j) Operating Leases
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
(k) Cost allocation
Costs relating to the mounting of productions and running of the theatre are classed as charitable activities. Those costs relating to generating voluntary income, and to trading activities to raise funds for the charity, are classified as costs of generating funds. Governance costs comprise those costs that allow Sadler's Wells Trust to operate as a charity and to generate the information required for public accountability, and are part of support costs. Support costs have been allocated on the basis of staff numbers in each area.
(l) Stock
Stock represents goods for resale, and is stated at the lower of cost and net realisable value.
Page 17
Sadler's Wells Trust Limited (Limited by Guarantee) Notes to the Financial Statements
For the year ended 31 March 2021 (cont)
1 Accounting Policies (cont)
(m) Financial Instruments
The charity has elected to apply the provisions of section II "Basic Financial Istruments" of FRS 102 to all its financial investments. They are recognised in the charity's financial statement position when the charity becomes party to the contractual provisions of the instrument.
Cash and cash equivalents
Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less, and investments capable of immediate cash realisation.
Debtors and Creditors
Debtors and creditors receivable or payable within one year of the reporting date are carried at their transaction price. Debtors and creditors that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest.
Financial Investments
Financial investments are initially recognised at their transaction value and subsequently measured at fair value based on the closing quoted market price as at the balance sheet date. Changes in fair value and any gains or losses arising on disposal are credited to or charged to the income and expenditure section of the Statement of Financial Activities as ‘gain or loss on investments
(n) Government Grants
Where the charity is awarded government grants, it recognises these as income only where there is reasonable assurance that the charity will comply with the conditions attaching to them, and the funds will be received. This includes grants received from Arts Council England as they are an executive non-departmental public body.
(o) Accounting for Reserves
There are both restricted and unrestricted funds. Unrestricted funds are divided into general and designated funds.
General funds are available for use at the discretion of Trustees in furtherance of the general charitable objectives.
Designated funds are amounts that have been set aside at the discretion of Trustees.
Restricted funds are grants or donations with conditions attached by the donor. They may specify that the funds are used in a specific way or for a specific purpose.
(p) Accounting Estimates and Areas of Judgement
In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the Trustees to have most significant effect on amounts recognised in the financial statements:
-
Measurement of the fair value of the investment properties as undertaken by the Trustees.
-
Depreciation rates on assets held and estimation of any impairment.
-
Estimation of likely future recoupment of production costs and commisssioning fees carried forward in the
-
balance sheet at each period end.
Page 18
For the year ended 31 March 2021 (cont)
Sadler's Wells Trust Limited (Limited by Guarantee) Notes to the Financial Statements
(q) Taxation
The company is a registered charity and as such is entitled to exemption from taxation on its charitable activities under the Corporation Tax Act 2010.
2. Exceptional Income
During 2020 the charity was successful in securing grants from the Arts Council’s England’s Emergency Response Fund and the Department of Culture, Media and Sport’s Cultural Recovery Fund, with grants of £1.5m and £2.975m respectively being received as part of the Government response to the COVID-19 pandemic. In view of the significance of the amounts received, this has been disclosed as Exceptional Income.
3. Support Costs
| Theatre Presentations Overhead £'000 £'000 Management 512 42 Administration 265 22 Finance 420 34 Governance 20 2 Human Resources 98 8 1,315 108 Unrestricted resources expended before support costs 5,386 4,395 Unrestricted resources expended 6,701 4,503 |
Theatre Presentations Overhead £'000 £'000 Management 512 42 Administration 265 22 Finance 420 34 Governance 20 2 Human Resources 98 8 1,315 108 Unrestricted resources expended before support costs 5,386 4,395 Unrestricted resources expended 6,701 4,503 |
Theatre Presentations Overhead £'000 £'000 Management 512 42 Administration 265 22 Finance 420 34 Governance 20 2 Human Resources 98 8 1,315 108 Unrestricted resources expended before support costs 5,386 4,395 Unrestricted resources expended 6,701 4,503 |
Fundraising £'000 25 13 21 1 6 |
Trading £'000 57 30 48 2 12 |
£'000 636 330 523 25 123 Year ended 31 March 2021 Total |
£'000 572 493 589 38 151 Year ended 31 March 2020 Total |
|---|---|---|---|---|---|---|
| 108 4,395 |
65 341 |
149 792 |
1,637 | 1,843 | ||
| 6,701 | 4,503 | 406 | 941 |
Support costs have been allocated on the basis of staff numbers in each area.
4. Governance Costs
Governance costs include the following payments to auditors: Audit Tax Other: non statutory audit |
£'000 £'000 34 38 0 0 4 4 38 42 Year ended 31 March 2021 Total Year ended 31 March 2020 Total |
|---|---|
Page 19
Sadler's Wells Trust Limited (Limited by Guarantee) Notes to the Financial Statements
For the year ended 31 March 2021 (cont)
5. Staff Costs
Consolidated and charity
| Wages and salaries Social security costs Pension costs (note 15) Less: Staff costs charged to: Sadler's Wells Limited |
£'000 6,888 570 235 7,693 - 7,693 Year ended 31 March 2021 |
£'000 7,961 702 285 Year ended 31 March 2020 |
|---|---|---|
| 8,947 (868) |
||
| 8,079 |
Staff costs decreased in the year as a result of pay cut applied to all staff along with the redundancy programme following the closure of the theatre due to covid 19. Redundancy and terminations payment costs included in the above totalled £139,865 (2020: £99,388).
Employee remuneration for employees earning more than £60,000 fell in the following bands:
| Year ended | Year ended | |
|---|---|---|
| 31 March 2021 | 31 March 2020 | |
| Number | Number | |
| £190,001 - £200,000 | - | 1 |
| £130,001 - £140,000 | 1 | 1 |
| £110,001 - £120,000 | 1 | - |
| £90,001 - £100,000 | - | 2 |
| £80,001 - £90,000 | - | 1 |
| £70,001 - £80,000 | 1 | 1 |
| £60,001 - £70,000 | 3 | 3 |
During the year the company paid pension contributions of £37,985 (2020: £54,848) on behalf of these staff.
Average number of full-time equivalent staff employed (including part-time and furlough staff):
| Theatre and Front of House Box office Marketing Technical Administration Development Events Catering |
Year ended 31 March 2021 Year ended 31 March 2020 Number Number 77 77 13 15 16 17 73 64 15 14 9 8 5 4 21 24 229 223 |
|---|---|
The Trustees received no remuneration for the services they provided to the company. No expenses were reimbursed (2020: £nil). The Trustees donated £197,286 (2020: £305,755) to the charity during the year.
The charity considers its key management personnel to be the Senior Management Team comprising: the Artistic Director and Chief Executive, Executive Director, interim Finance Director, Director of Finance and Business Performance, Director of Artistic Programme, Executive Producer, Technical Director, interim Marketing & Sales Director, Director of Development, Director of Learning and Engagement, Director of Data & Systems, Director of Content & Audience, Director of Visitor Experience. The remuneration of the Artistic Director and Chief Executive is decided by the Board, the Artistic Director and Chief Executive decides the remuneration of other members of the Senior Management Team. Total remuneration of this group, including pension contributions and restructuring cost, was £964,546 (2020: £ 1,356,733).
Page 20
Sadler's Wells Trust Limited (Limited by Guarantee) Notes to the Financial Statements
For the year ended 31 March 2021 (cont)
6. Tangible Fixed Assets Consolidated
| Cost As at 1st April 2020 Additions Transfer to investment property At 31st March 2021 Depreciation At 1st April 2020 Charge for the period Transfer to investment property At 31st March 2021 Net book value At 31st March 2021 At 31st March 2020 |
£'000 128 - (128) - 34 - (34) - - 94 Freehold Land & Buildings |
£'000 110 - - 110 59 6 - 65 45 51 Leasehold Imp'ments |
£'000 317 77 - 394 317 - - 317 77 - Computer Equipment |
£'000 154 - - 154 154 - - 154 - - Fixtures and Fittings |
Total £'000 709 77 (128) |
|---|---|---|---|---|---|
| 658 | |||||
| 564 6 (34) |
|||||
| 536 | |||||
| 122 | |||||
| 145 |
Charity
| Cost At 1st April 2020 Additions Transfer to investment property At 31st March 2021 Depreciation At 1st April 2020 Charge for the period Transfer to investment property At 31st March 2021 Net book value At 31st March 2021 At 31st March 2020 |
£'000 128 - (128) - 34 - (34) - - 94 Freehold Land & Buildings |
£'000 110 - - 110 59 6 - 65 45 51 Leasehold Imp'ments |
£'000 255 77 - 332 255 - - 255 77 - Computer Equipment |
£'000 46 - - 46 46 - - 46 - - Fixtures and Fittings |
Total £'000 539 77 (128) |
|---|---|---|---|---|---|
| 488 | |||||
| 394 6 (34) |
|||||
| 366 | |||||
| 122 | |||||
| 145 |
7 (a). Investment in trading subsidiary
The wholly owned trading subsidiary Sadler's Wells Limited, Rosebery Avenue, London, EC1R 4TN (company number 02907116), which is incorporated in England and Wales, is consolidated within these financial statements. The company distributes all its profits to the charity under Gift Aid. Sadler's Wells Limited promotes commercial non theatre hires and provides catering at the Sadler's Wells and Peacock theatres, and produces productions commissioned by Sadler's Wells Trust Ltd. The charity owns the entire issued share capital of 2 ordinary shares of £1 each. A summary of the trading results is shown below.
Sadler’s Wells Trust Limited and its trading subsidiary have entered into a deed of covenant which is a legally binding agreement to pay up all profits a subsidiary can legally distribute.
Page 21
Sadler's Wells Trust Limited (Limited by Guarantee) Notes to the Financial Statements
For the year ended 31 March 2021 (cont)
7 (a). Investment in trading subsidiary (cont)
| Investment in trading subsidiary (cont) | ||
|---|---|---|
| Profit and Loss Account Turnover Cost of sales Production expenses Gross Profit Administration expenses Interest received Taxation Result for the financial year Retained earnings brought forward Charitable distribution to parent charity Retained earnings carried forward The assets and liabilities of the subsidiary were: Fixed assets Total net assets Current assets Creditors: amounts falling due within one year Aggregate share capital and reserves |
Year ended £'000 246 (50) (35) 161 (4) - 7 164 - (164) - £'000 450 561 (1,011) - - 31 March 2021 31 March 2021 |
Year ended £'000 7,953 (1,029) (5,246) 31 March 2020 |
| 1,678 (988) - 493 |
||
| 1,183 | ||
| - (1,183) |
||
| - | ||
| £'000 450 824 (1,274) 31 March 2020 |
||
| - | ||
| - |
7 (b). Investment property
The investment properties held by the charity are a house which was donated by the Dame Hilda Bracket Trust and is valued by the Trustees at £200,000 and office building held at 369 St John St valued at £1m. Independent valuations of these properties have been undertaken; for the house in April 2018 by Robert Cooney, Chartered Surveyors, and for the office building in September 2020 by Daniel Watney, Estate Agents. The fair values of the assets are considered appropriate. The investment property held by the trading subsidiary comprises the leasehold interest of the Shakespeare's Head Public House on Arlington Way, London. The fair value of this investment property of £450,000 has been arrived at on the basis of a valuation carried out as at 31 March 2020 by Fleurets Limited Chartered Surveyors.
| Fair value At 1st April 2020 Transfers from tangible fixed assets Net gains or losses through fair value adjustments As at 31st March 2021 Debtors Consolidated Charity £'000 £'000 Trade debtors 190 114 Amounts owed by related undertakings - 865 Other debtors and prepayments 577 574 Corporation Tax Receivable 7 - Accrued income 768 768 1,542 2,321 31 March 2021 |
Consolidated Charity £'000 £'000 650 200 94 94 906 906 1,650 1,200 Consolidated Charity £'000 £'000 501 238 2 939 1,841 1,830 493 - 1,012 1,012 3,850 4,018 31 March 2021 31 March 2020 |
Consolidated Charity £'000 £'000 650 200 94 94 906 906 1,650 1,200 Consolidated Charity £'000 £'000 501 238 2 939 1,841 1,830 493 - 1,012 1,012 3,850 4,018 31 March 2021 31 March 2020 |
|---|---|---|
| 4,018 |
8. Debtors
Page 22
Sadler's Wells Trust Limited (Limited by Guarantee) Notes to the Financial Statements
For the year ended 31 March 2021 (cont)
9. Creditors: Amounts due within one year
| Consolidated Charity £'000 £'000 Trade creditors 372 363 Social security and other taxes 264 264 Accruals and deferred income 3,908 3,770 4,543 4,397 10. Creditors: Amounts due after more than one year Consolidated Charity £'000 £'000 Loan 4,250 4,250 4,250 4,250 11. Borrowings Payable within 1 year Payable 2-5 years Payable over 5 years 31 March 2021 31 March 2021 |
Consolidated Charity £'000 £'000 489 472 723 713 5,273 4,968 6,484 6,153 Consolidated Charity £'000 £'000 - - - - £'000 £'000 - - 246 - 4,004 - 4,250 - 31 March 2020 31 March 2020 31 March 2021 31 March 2020 |
Consolidated Charity £'000 £'000 489 472 723 713 5,273 4,968 6,484 6,153 Consolidated Charity £'000 £'000 - - - - £'000 £'000 - - 246 - 4,004 - 4,250 - 31 March 2020 31 March 2020 31 March 2021 31 March 2020 |
|---|---|---|
| - | ||
| £'000 - - - 31 March 2020 |
||
| - |
In the year ended 31 March 2021, Sadler's Wells Trust Limited was granted a facility for a 20 year loan by Arts Council England under the Cultural Recovery Fund. The loan was drawn down to £4,250,000 on 17th March 2021. The loan is repayable from March 2023 and the interest rate is 2% per annum.
12. Reconciliation of Net Incoming / (Outgoing) Resources from Operating Activities to Net Cash flows
| Reconciliation of Net Incoming / (Outgoing) Resources from Operating Activities to Net Cash flows |
||
|---|---|---|
| Consolidated Net income / (expenditure) for the reporting period Depreciation Net gains or losses on investment assets (Increase) in stock (Increase) / Decrease in debtors (Decrease) / Increase in creditors Net cash inflow / (outflow) from operating activities (a) Cash flows from investing and financing activities Purchase of property, plant and equipment Investment gain on liquid investments Finance obtained Analysis of Cash Flows for Headings in Cash Flow Statement |
Year ended £'000 3,459 6 (906) 14 2,308 (1,941) 2,940 Year ended £'000 (77) 79 4,250 4,252 31 March 2021 31 March 2021 |
Year ended £'000 (70) 17 124 10 (751) (63) 31 March 2020 |
| (733) | ||
| Year ended £'000 - 34 - 31 March 2020 |
||
| 34 |
13. Analysis of Cash Flows for Headings in Cash Flow Statement
Page 23
Sadler's Wells Trust Limited (Limited by Guarantee) Notes to the Financial Statements For the year ended 31 March 2021 (cont)
14. Analysis of Net Cash
| Analysis of Net Cash Cash at bank and in hand and in immediately realisable investments |
Cash Flow £'000 7,192 |
1 April 2020 £'000 4,553 |
31 March 2021 £'000 11,745 |
|---|---|---|---|
Sadler's Wells Trust Limited was granted a loan of £4,250,000 on 17th March 2021 (see noten 11). The net cash balance is therefore £7,495,000.
15. Liability of Members
The company is limited by guarantee and the liability of members is limited to £10 each. At 31 March 2021 there were 12 members (2020: 11 members).
16. Operating Lease Commitments
The charity has an annual rent commitment of £282,848 (2020: £282,848) in respect of the lease of Sadler's Wells Theatre, from Sadler's Wells Foundation Limited, expiring in 1 year. The Trustee’s expect to renew the lease during the year. The total payable to the end of the lease is £282,848 (2020: £282,848). The charity also has an annual rent commitment of £175,000 in respect of the Peacock Theatre from the London School of Economics, expiring 20 years from starting in 2019. The total payable to the end of the lease is £3,325,000 (2020: £3,500,000).
17. Pension Commitments
Sadler's Wells Trust Limited makes contributions to employees' private pension plans, the costs of which amounted to £235,422 during the year to 31 March 2021 (2020: £284,536). The pension creditor at the year end was £34,756 (2020: £46,331).
18. Net Movement in Funds
| Restricted Funds: National Youth Dance Fund Dame Hilda Bracket Fund What Next? Fund Stratford Mobilisation Breakin' Out NYCB fund DOPODO Garfield Weston Foundation Relaunch Fund Development Unrestricted Funds: Designated Funds Creative Development Fund 369 St John Street Fund Peacock Theatre Fund Creative Learning Fund The Shakespeare's Head Fund ACE Cultural Recovery Fund General Fund |
At 1 April 2020 £'000 83 131 41 92 246 270 - - - - 863 782 95 50 135 402 - 1,464 451 2,777 |
Incoming Resources £'000 486 - 100 60 - - 73 626 264 540 2,149 26 - - - - - 26 13,455 15,630 |
Resources Expended £'000 (308) - (109) (30) (6) - - - - - (453) - - - - - - - (12,551) (13,004) |
Transfers £'000 - - - - - - - - - - - (808) (1,000) - - - 341 (1,467) 1,467 - |
Gains £'000 - - - - - - - - - - - - 905 - - - - 905 7 912 |
At 31 March 2021 £'000 261 131 32 122 240 270 73 626 264 540 |
|---|---|---|---|---|---|---|
| 2,559 | ||||||
| - - 50 135 402 341 |
||||||
| 928 | ||||||
| 2,829 | ||||||
| 6,316 |
The National Youth Dance Fund represents funds received and expended on the National Youth Dance Company. The Dame Hilda Bracket Fund is a donation to support music, in particular grand and light opera. The What Next? Fund represents a donation for the What Next? campaign, financially hosted by Sadler's Wells. The Stratford Mobilisation restricted fund is an Arts Council grant provided to fund preparation costs associated with the new venue in Stratford. The Breakin’ Out restricted fund is an Arts Council grant provided for Breakin’ Convention dance and engagement activity. The NYCB fund represents a gift to support a future visit of New York City Ballet company.The DOPODO fund is an european grant provided to support the Dance on, Pass on, Dream on project. The Garfield Weston Foundation represents funds received to support touring and digital activity. The Relaunch Fund represents donations supporting the reopening of Sadler's Wells. The Development fund represents grant to be spent against future activity.
Page 24
Sadler's Wells Trust Limited (Limited by Guarantee) Notes to the Financial Statements For the year ended 31 March 2021 (cont)
18. Net Movement in Funds (cont)
The Trustees have designated a number of funds. The Shakespeare's Head Fund will provide for any future impairment on the leasehold of the Shakespeare's Head public house, held by Sadler's Wells Limited. The Peacock Theatre Fund is to provide for future payments on the Peacock Theatre and is expected to be fully utilised once the venue is open again. The Organisational Development Fund is to build management capacity within the charity and was fully utilised in year. The Creative Learning Fund is to expand Sadler's Wells Creative Learning programme.
19. Transfers between funds
The Creative Development Fund was set up by the Trustees to invest in future theatrical commissions but has been released to general reserves in the light of the impact of the COVID-19 pandemic. The ACE Cultural Recovery Fund represents amounts designated from the Cultural Recovery Fund grant received in 2020-21 and which will be expended on activities in 2021-22. The 369 St John Street Fund represented the carrying value of the Trust’s freehold interest in the property. During the year the trustees determined that this property was no longer required for operational purposes and it was therefore re-classified as an investment property and released to general reserves at its fair value.
20. Analysis of Net Assets between Funds
| Unrestricted Funds Creative Development Fund 369 St John Street Fund Peacock Theatre Fund Creative Learning Fund The Shakespeare's Head Fund ACE Cultural Recovery Fund General Fund Restricted Funds National Youth Dance Fund Dame Hilda Bracket Fund What Next? Fund Stratford Mobilisation Breakin' Out NYCB fund DOPODO Garfield Weston Foundation Relaunch Fund Development Total Funds |
Fixed Assets £'000 - - - - 402 - 1,170 1,572 - 200 - - - - - - - - 200 1,772 |
Cash £'000 - - 50 135 - 341 8,791 9,317 261 - 32 122 240 270 73 626 264 540 2,428 11,745 |
Other Net Liabilities £'000 - - - - - - (7,132) (7,132) - (69) - - - - - - - (69) (7,201) |
Net Total Assets £'000 - - 50 135 402 341 2,829 |
|---|---|---|---|---|
| 3,757 | ||||
| 261 131 32 122 240 270 73 626 264 540 |
||||
| 2,559 | ||||
| 6,316 |
21. Connected Charities and related Party Transactions
Sadler's Wells Limited is a wholly owned subsidiary which trades on behalf of the charity.
Sadler's Wells Trust is a corporate trustee of the Dame Hilda Bracket Trust, along with Sadler's Wells Development Trust. The fund is held in a restricted fund by Sadler's Wells Trust.
During the year Sadler's Wells Trust Ltd incurred a rent charge of £0 (2020: £212,136) from Sadler's Wells Foundation Ltd. In addition the Foundation recharged to the Trust credit card transaction charges totalling £2,915 (2020: £17,295). Sadler's Wells Trust Limited owed £565 to (2020: was owed £1,680 by) Sadler's Wells Foundation Limited at the 31st March 2021.
Sadler's Wells Foundation Ltd is a member of Sadler's Wells Trust Ltd.
A gift of £164,172 (2020: £1,182,746) was receivable from Sadler's Wells Limited, for the year, and £852,684 was due from (2020: £552,063) that company at the year end. During the year Sadler's Wells Trust charged Sadler's Wells Limited £0 (2020: £867,973) in respect of the services of 26 (2020: 28) employees of the company during the year.
Page 25
Sadler's Wells Trust Limited (Limited by Guarantee) Notes to the Financial Statements For the year ended 31 March 2021 (cont)
22. Capital Commitments
At 31 March 2021 Sadler's Wells Trust had no capital commitments committed but not yet contracted for (2020: None).
23. Comparative Net Movement in Funds
| At 1 April Incoming 2019 Resources £'000 £'000 As Restated Restricted Funds: The Shakespeare's Head Fund 526 - National Youth Dance Fund 41 524 Dame Hilda Bracket Fund 183 - What Next? Fund 41 116 Stratford Mobilisation - 200 Breakin' Out - 300 NYCB Fund - 270 792 1,410 Unrestricted Funds: Designated Funds Creative Development Fund 1,102 165 369 St John Street Fund 98 - Peacock Theatre Fund 50 - Organisational Development Fund 230 - Creative Learning Fund 280 - The Shakespeare's Head Fund - - 1,760 165 General Fund 263 30,798 2,815 32,373 Comparative Analysis of Net Assets between Funds Fixed Assets £'000 Unrestricted Funds Creative Development Fund - 369 St John Street Fund 95 Peacock Theatre Fund - Creative Learning Fund - The Shakespeare's Head Fund 402 General Fund 98 595 Restricted Funds National Youth Dance Fund - Dame Hilda Bracket Fund 200 What Next? Fund - Stratford Mobilisation - Breakin' Out - NYCB fund - 200 Total Funds 795 |
Resources Expended £'000 As Restated - (482) (52) (117) (108) (54) - (813) (485) (3) - (230) (145) (124) (987) (31,137) (32,936) Cash £'000 782 - 50 135 - 2,989 3,956 83 - 41 92 246 270 732 4,688 |
Transfers/ Gains £'000 (526) - - - - - - (526) - - - - - 526 526 527 527 Other Net Liabilities £'000 - - - - - (2,635) (2,635) - (69) - - - - (69) (2,704) |
At 31 March 2020 £'000 - 83 131 41 92 246 270 |
|---|---|---|---|
| 863 | |||
| 782 95 50 - 135 402 |
|||
| 1,464 | |||
| 451 | |||
| 2,778 | |||
| Net Total Assets £'000 782 95 50 135 402 451 |
|||
| 1,915 | |||
| 83 131 41 92 246 270 |
|||
| 863 | |||
| 2,778 |
24. Comparative Analysis of Net Assets between Funds
Page 26
Sadler's Wells Trust Limited (Limited by Guarantee) Notes to the Financial Statements
For the year ended 31 March 2021 (cont)
25. Comparative Fund and SOFA Balances
| Note Income Charitable activities Theatre presentations Income generated from other activities Donation analysis Sponsorship and donations ACE operational grant Activities for generating funds Trading income Other income Total Income Expenditure Charitable activity: theatre presentations Expenditure on presentations 3 Theatre overheads 3 Raising Funds Fundraising costs 3 3 Total Expenditure Net Income / (Expenditure) before Investment (Loss) / Gain Net Investment (Loss) / Gain Net Income / (Expenditure) Other Recognised Gains: Theatre Tax Relief Gross Transfer Between Funds Net funds at 1 April 2019 Net Funds at 31 March 2020 Trading costs Net Movement in Funds |
Unrestricted Funds Year ended 31 March 2020 £'000 As Restated 22,950 1,748 2,456 3,200 444 30,798 22,982 5,377 562 2,216 31,137 (339) 34 (305) 493 - 188 263 451 |
Designated Funds Year ended 31 March 2020 £'000 - 165 - - - 165 485 378 - - 863 (698) - (698) (124) 526 (296) 1,760 1,464 |
Restricted Funds Year ended 31 March 2020 £'000 - 386 950 - 74 1,410 696 117 - - 813 597 - 597 - (526) 72 791 863 |
Total Funds Year ended 31 March 2020 £'000 As Restated 22,950 2,299 3,406 3,200 518 |
|---|---|---|---|---|
| 32,373 | ||||
| 24,164 5,872 562 2,216 |
||||
| 32,813 | ||||
| (440) 34 |
||||
| (406) 369 - |
||||
| (36) 2,814 |
||||
| 2,778 |
Page 27
Sadler's Wells Trust Limited (Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2021 (cont)
26. Comparative Support Costs
| Theatre Presentations Overhead £'000 £'000 Management 454 36 Administration 391 31 Finance 468 37 Governance 30 2 Human Resources 120 9 1,463 116 Unrestricted resources expended before support costs 19,741 4,941 Unresricted resources expended 21,204 5,057 |
Theatre Presentations Overhead £'000 £'000 Management 454 36 Administration 391 31 Finance 468 37 Governance 30 2 Human Resources 120 9 1,463 116 Unrestricted resources expended before support costs 19,741 4,941 Unresricted resources expended 21,204 5,057 |
Theatre Presentations Overhead £'000 £'000 Management 454 36 Administration 391 31 Finance 468 37 Governance 30 2 Human Resources 120 9 1,463 116 Unrestricted resources expended before support costs 19,741 4,941 Unresricted resources expended 21,204 5,057 |
Fundraising £'000 21 18 21 1 6 |
Trading £'000 61 53 63 4 17 |
£'000 572 493 589 38 151 Year ended 31 March 2020 Total |
|---|---|---|---|---|---|
| 116 4,941 |
67 475 |
198 2,018 |
1,843 | ||
| 21,204 | 5,057 | 542 | 2,216 |
27. Prior Year Adjustment
The comparative results have been restated as a result of an error identified in the presentation of irrecoverable VAT in the prior year. There is no impact on net income as a result of this adjustment.
Changes to the Consolidated Statement of Financial Activities:
| Unrestricted fund Income Charitable Activities: Theatre presentations Expenditure Charitable activity: theatre presentations Expenditure on presentations Theatre overheads Raising Funds Fundraising costs |
As previously reported 20,832 (21,204) (5,057) (542) |
Adjustment As restated 2118 22,950 (1,778) (22,982) (320) (5,377) (20) (562) - (5,971) |
|---|---|---|
| (5,971) |
Page 28