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 2022
Index
Page
| Trustees, officers and administrative information | |
|---|---|
| 1 - 6 | Trustees' report |
| 7 - 10 | Independent auditors' report |
| 11 | Consolidated statement of financial activities |
| 12 | Balance sheets |
| 13 | Statement of Cash Flows |
| 14 - 29 | Notes to the financial statements |
Sadler's Wells Trust Limited (Limited by guarantee) Trustees, Officers and Administrative Information
Trustees
Nigel Higgins (Chairman) Maria Albonico Nicolas Basden Humphrey Battcock Melissa Bethell Sue Butcher David Lan Brenda Leff Suhair Khan Paul Mulholland Clare Connor Nina Patel Matthew Slotover Melanie Smith
Secretary Alistair Spalding
Registered Office
Sadler's Wells Theatre Rosebery Avenue London EC1R 4TN Bankers Coutts & Co. 440 Strand London WC2R 0QS
Auditor
Moore Kingston Smith LLP Chartered Accountants 6th Floor 9 Appold Street London EC2A 2AP
Solicitors
Clifford Chance LLP 10 Upper Bank Street London E14 5JJ
Sadlers’ 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 for the year ended 31 March 2022 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 experience dance – to take part, learn, experiment and be inspired. Our mission is to make and create dance that inspires us all, and our vision is to create, through dance, a depth of connection beyond borders, cultures and languages, so we see ourselves in each other. We also have four values we live by as an organisation – Excellence, Collaboration, Inclusion, Innovation.
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 close to 200 new dance works to the stage, many of them involving its 17 Associate Artists, 6 New Wave Associates, 4 Young Associates, three Resident Companies and four Associate Companies – some of the most exciting talents working in dance today. Sadler’s Wells also host the National Youth Dance Company and Sadler’s Wells Breakin’ Convention.
The theatre reopened its doors on 17th May 2021 with a rich and diverse programme and although there were a few closures over Christmas 2021 because of an upsurge in Covid cases there were 569 performances during the period and 22/23 sees a return to a complete programme.
Colleagues have been encouraged to return to the office for at least 60% of their working week for those who have been able to work from home. Many have embraced the hybrid working model while more operational teams have continued to attend theatres to support the live programme.
Sadler’s Wells East
Construction of our mid-sized multipurpose venue continues apace in the Queen Elizabeth Olympic Park, Stratford as part of the East Bank development. The venue will house the Hip Hop Theatre Academy and Choreographic School and the inaugural production will be Our Mighty Groove; an immersive dance theatre show set in an underground New York City nightclub with a multigenerational community cast.
Learning & Engagement programmes
These 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 and Breakin’ Convention’s Higher Learning and Open Art Surgery. Over the year we ran a total of 484 formal learning sessions with over 12,000 attendees and with a further 285 informal sessions with over 7,000 attendees.
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Sadlers’ Wells Trust Limited (Limited by Guarantee) Trustees’ Report
Financial Review
Total income for the year ending 31[st] March 2022 was £22.7m, compared to £15.6m in the prior year. £1.6m was received in voluntary donations from a range of individuals, Trusts and Foundations and corporate bodies. £3.4m was received from the Arts Council.
The principal source of funding for the charity is the income generated from ticket sales and other show related income, such as catering, drinks and merchandise. This is underpinned by annual funding from Arts Council England, which represents 13% of the total unrestricted income of the charity. The other major sources of income are voluntary donations from individuals, Trusts & Foundations, and corporate bodies together with trading income derived from hiring out the spaces in the theatres.
Expenditure in the period was predominantly on the charity’s main charitable objective, with 89% of unrestricted expenditure on productions and the running of the theatre. The remaining 11% was spent on fundraising activities and trading costs.
The total net movement in funds for the year was (£2.2m), made up of an unrestricted funds deficit of £1,245k, a surplus on designated funds of £24k and a deficit on restricted funds of £981k. As a result we ended the year with total reserves of £4.1m.
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 £452k for 2021/22 (2020/21: £164k) to Sadler’s Wells Trust.
Fundraising
A key focus this year was to welcome patrons back into the theatre and steward supporters who stayed with us through the Covid-19 pandemic. 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 along with supporting raising funds for Sadler’s Wells Foundation.
Sadler’s Wells operates an internal fundraising team and is a member of the Fundraising Regulator. Our approach takes account of the Code of Fundraising Practice and we have complied with the standards of the Regulator.
We continue to comply with the General Data Protection Regulations 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 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 impact of inflation, uncertainty over the future path of any new Covid-19 related restrictions, 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 resources being unequal to the capital repairs programme for the Sadler’s Wells theatre. Additional financial and operational risks will need to be incorporated into the Risk Register once Sadler’s Wells East begins operation.
Investment Powers and Policy
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Sadlers’ Wells Trust Limited (Limited by Guarantee)
Trustees’ Report
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.
Equality and Employment
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 encourages applicants from different backgrounds. Sadler’s Wells is committed to developing and training all colleagues, not only to enable them to do their own jobs, but also to assist them in their careers. They 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.
We continue to have a particular focus on how we become an actively anti-racist organization. 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, Executive Producer, Technical Director, Director of Marketing and Communications, Director of Development, Director of Learning and Engagement, Director of Data and Systems, Director of Breakin’ Convention, Interim Director of Digital Stage, 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 £941,943 (2021: £964,546). The number of roles included in the Senior Management Team has remained at 13 this year. The salaries are fair and affordable, and benchmarked against similar arts organisations.
Going Concern
The financial statements are prepared on a going concern basis which assumes that the charitable group will continue in operational existence for the foreseeable future. The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable group to continue as a going concern. These events include the impact of inflation, increase in utility costs and the 5% cut in Arts Council England grant. As at the balance sheet date the group has considerable cash reserves in part from the 20 year CRF loan taken out in the prior year, repayment of which will begin in 2025.
The Trustees have made this assessment for a period of at least one year from the date of the approval of the financial statements. The Trustees have concluded that the charitable group has adequate resources to continue in operational existence for the foreseeable future and therefore the charitable group continues to adopt the going concern basis in preparing its financial statements.
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Sadlers’ Wells Trust Limited (Limited by Guarantee) Trustees’ Report
Public Benefit
Sadler’s Wells recognises and welcomes the need to carry out its charitable activities for the benefit of the 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:
Providing the most wide ranging programme of dance, including touring outside of our theatres in London.
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.
Engagement with the community through a wide range of creative learning and community projects.
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 target reserves is based upon a review of the level of overhead that the charity is committed to, together with an analysis of the level of reserves needed to trade through an external shock to the charity’s income. General reserves combined with the designated contingency reserve as at the 31st March 2022 were £2,084k (2020: £2,830k). The free reserves, being reserves backed by current assets are £969k.
By 2024, 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. However, in light of the less favourable macroeconomic outlook, a 5% reduction in ACE funding, continuing uncertainties around the future trajectory of the Covid-19 pandemic and the increase in the level of activity that would occur once Sadler’s Wells opens another theatre in Stratford, the Trustees have now set an aim to build up a general reserve of £3.5m by 2028.
The Trustees recognise that the build up of reserves may not be linear especially as the new venue opens and will be built up by surpluses in future years with a focus on additional fundraising. During the year the Trustees set up a designated contingency reserve of £500k to be used at the Trustees’ discretion and which forms part of the reserves for the purposes of reviewing the target.
Trustees
The Trustees who served from 1st April 2021 to the date of signing the accounts were:
Nigel Higgins (Chairman)
Maria Albonico Nicholas Basden (joined 22nd April 2021)
Humphrey Battcock
Melissa Bethell
Sue Butcher
Sarah Evans (resigned 6th July 2022)
Farah Golant (resigned 23 November 2021)
David Lan
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Sadlers’ Wells Trust Limited (Limited by Guarantee) Trustees’ Report
Brenda Leff (joined 22 February 2022)
Suhair Khan (joined 28 September 2022) Paul Mulholland (joined 22 Ferbuary 2022) Clare Connor (joined 28 September 2022) David Ripert (resigned 23 November 2022) Nina Patel (joined 28 September 2022)
Matthew Slotover
Melanie Smith
Sharon White (resigned 23 November 2022)
The Trustees are appointed for a term of 3 years, which is often extended to a second or third and rarely, a fourth. 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 theatres.
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 the artistic programme to the Artistic Director and Chief Executive, together with day to day management of the operating budgets to the Artistic Director and Chief Executive and Executive Director. Board approval is only then sought for any major changes to the artistic programme or budget.
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.
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 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 group and company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company 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.
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Sadlers’ Wells Trust Limited (Limited by Guarantee) Trustees’ Report
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable group and 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 group and company 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 charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
In so far as the Trustees are aware:
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there is no relevant audit information of which the charitable company'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.
Auditor
The auditor, Moore Kingston Smith LLP, is 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 1 December 2022 and signed on their behalf by:
Nigel Higgins Chairman
Charity registration number: 279884 Company registration number: 1488786
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Sadler's Wells Trust Limited (Limited by Guarantee)
Independent Auditor's Report to the members of Sadler's Wells Trust Limited
Opinion
We have audited the financial statements of Sadler's Wells Trust Limited for the year ended 31 March 2022 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’.
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 2022 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 financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The 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.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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Sadler's Wells Trust Limited (Limited by Guarantee)
Independent Auditor's Report to the members of Sadler's Wells Trust Limited (continued)
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 has 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;
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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.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on page 5, 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.
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Sadler's Wells Trust Limited (Limited by Guarantee)
Independent Auditor's Report to the members of Sadler's Wells Trust Limited (continued)
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.
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Independent Auditor's Report to the members of Sadler's Wells Trust Limited (continued)
Sadler's Wells Trust Limited (Limited by Guarantee)
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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 noncompliance 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.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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.
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.
James Cross (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor
6th Floor Appold Street London EC2A 2AP
Date: 6 January 2023
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Sadler's Wells Trust Limited (Limited by Guarantee)
Consolidated Statement of Financial Activities for the year ended 31 March 2022
| Unrestricted | Designated | Restricted | Total | Total | ||
|---|---|---|---|---|---|---|
| Funds | Funds | Funds | Funds | Funds | ||
| Year ended | Year ended | Year ended | Year ended | Year ended | ||
| 31 March | 31 March | 31 March | 31 March | 31 March | ||
| 2022 | 2022 | 2022 | 2022 | 2021 | ||
| Note | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Income | ||||||
| Donations and legacies: | ||||||
| Sponsorship and donations | 749 | - | 846 | 1,595 | 3,163 | |
| Arts Council Funding | 2 | 2,679 | - | 674 | 3,353 | 11,276 |
| Charitable activities: | ||||||
| Theatre presentations | 15,083 | - | - | 15,083 | 770 | |
| Activities for raising funds | ||||||
| Trading income | 1,805 | - | - | 1,805 | 218 | |
| Other income | 744 | - | 116 | 860 | 123 | |
| Total Income | 21,060 | - | 1,636 | 22,696 | 15,550 | |
| Expenditure | ||||||
| Charitable activity: theatre presentations | ||||||
| Expenditure on presentations | 3 | 16,347 | 432 | 760 | 17,539 | 7,044 |
| Theatre overheads | 3 | 3,512 | 44 | 1,817 | 5,373 | 4,612 |
| Raising Funds | ||||||
| Fundraising costs | 3 | 569 | - | 40 | 609 | 406 |
| Trading costs | 3 | 1,771 | - | - | 1,771 | 941 |
| Total Expenditure | 22,199 | 476 | 2,617 | 25,292 | 13,003 | |
| Net (Expenditure)/ Income before | ||||||
| Investment Gain | (1,139) | (476) | (981) | (2,596) | 2,547 | |
| Net Investment Gain | - | - | - | - | 79 | |
| Net (Expenditure) / Income | (1,139) | (476) | (981) | (2,596) | 2,626 | |
| Other Recognised Gains and Losses | 394 | - | 394 | 912 | ||
| Gross Transfer Between Funds | (500) | 500 | - | - | - | |
| Net Movement in Funds | (1,245) | 24 | (981) | (2,202) | 3,538 | |
| Net funds at 1 April 2021 | 2,829 | 928 | 2,559 | 6,316 | 2,778 | |
| Net Funds at 31 March 2022 | 1,584 | 952 | 1,578 | 4,114 | 6,316 |
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.
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Sadler's Wells Trust Limited (Limited by Guarantee)
Balance Sheets as at 31 March 2022
| 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 Long term Liabilities 10 Total Assets Less Liabilities Funds Restricted 18 Unrestricted - Designated 18 Unrestricted 18 |
2022 2022 Consolidated Charity £'000 £'000 67 67 1,650 1,200 1,717 1,267 66 21 2,163 3,971 12,343 10,624 14,572 14,616 (7,840) (7,434) 6,732 7,182 (4,335) (4,335) 4,114 4,114 1,578 1,578 952 952 1,584 1,584 4,114 4,114 |
2021 2021 Consolidated Charity £'000 £'000 122 122 1,650 1,200 |
|---|---|---|
| 1,772 1,322 |
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| 50 28 1,542 2,321 11,745 11,292 |
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| 13,337 13,641 (4,543) (4,397) |
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| 8,794 9,244 (4,250) (4,250) |
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| 6,316 6,316 |
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| 2,559 2,559 928 928 2,829 2,829 |
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| 6,316 6,316 |
As permitted by S408 Companies Act 2006, the charity has not presented its own Statement of Financial Activities and related notes. The charity deficit for the year was £2,202,000 (2021: £3,538,000 surplus).
Approved for issue by the members of the board on …….…… 202220/12/ and signed on their behalf by:
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Nigel Higgins Chairman
Company number 1488786
Page 12
Sadler's Wells Trust Limited (Limited by Guarantee) Consolidated Statement of Cash Flows for the year ended 31 March 2022
| Note £'000 £'000 £'000 £'000 Net cash flows from operating activities 12 633 2,940 Cash flows from investing and financing activities 13 (35) 4,252 Net change in cash and cash equivalents in the period 598 7,192 Reconciliation of net cash flow to movement in net cash Increase in cash in the period 598 7,192 Movement in net cash in the period 598 7,192 Net cash and cash equivalents at 1 April 2021 11,745 4,553 Net cash and cash equivalents at 31 March 2022 14 12,343 11,745 Year ended 31 March 2022 Year ended 31 March 2021 |
Note £'000 £'000 £'000 £'000 Net cash flows from operating activities 12 633 2,940 Cash flows from investing and financing activities 13 (35) 4,252 Net change in cash and cash equivalents in the period 598 7,192 Reconciliation of net cash flow to movement in net cash Increase in cash in the period 598 7,192 Movement in net cash in the period 598 7,192 Net cash and cash equivalents at 1 April 2021 11,745 4,553 Net cash and cash equivalents at 31 March 2022 14 12,343 11,745 Year ended 31 March 2022 Year ended 31 March 2021 |
Note £'000 £'000 £'000 £'000 Net cash flows from operating activities 12 633 2,940 Cash flows from investing and financing activities 13 (35) 4,252 Net change in cash and cash equivalents in the period 598 7,192 Reconciliation of net cash flow to movement in net cash Increase in cash in the period 598 7,192 Movement in net cash in the period 598 7,192 Net cash and cash equivalents at 1 April 2021 11,745 4,553 Net cash and cash equivalents at 31 March 2022 14 12,343 11,745 Year ended 31 March 2022 Year ended 31 March 2021 |
Note £'000 £'000 £'000 £'000 Net cash flows from operating activities 12 633 2,940 Cash flows from investing and financing activities 13 (35) 4,252 Net change in cash and cash equivalents in the period 598 7,192 Reconciliation of net cash flow to movement in net cash Increase in cash in the period 598 7,192 Movement in net cash in the period 598 7,192 Net cash and cash equivalents at 1 April 2021 11,745 4,553 Net cash and cash equivalents at 31 March 2022 14 12,343 11,745 Year ended 31 March 2022 Year ended 31 March 2021 |
|---|---|---|---|
| 598 | 7,192 | ||
| 598 11,745 |
7,192 4,553 |
||
| 12,343 | 11,745 |
Page 13
Sadler's Wells Trust Limited (Limited by Guarantee)
Notes to the Financial Statements for the year ended 31 March 2022
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 have been prepared in accordance with the charity’s governing document, the Charities Act 2011, and Statement of Recommended Practice 'Accounting and Reporting by Charities' (SORP 2019) and applicable accounting standards in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
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 financial statements are prepared on a going concern basis which assumes that the charitable group will continue in operational existence for the foreseeable future. The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable group to continue as a going concern as referred to in the Trustees' report. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. As at the balance sheet date the group has considerable cash reserves in part from the 20 year CRF loan taken out in the prior year, repayment of which will begin in 2025. Therefore, the Trustees have concluded that there is a reasonable expectation that the charitable group has adequate resources to continue in operational existence for the foreseeable future and therefore continues to adopt the going concern basis in preparing its financial statements.
(c) Income from presentations and performances
Income from presentations and performances, 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.
(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) 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 14
Sadler's Wells Trust Limited (Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2022 (continued)
1 Accounting Policies (continued)
(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. 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 the year end 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 Group Financial Statements consolidate those of Sadler's Wells Trust Limited and its trading subsidiary, Sadler's Wells Limited. The results for the trading subsidiary are consolidated on a line by line basis. No separate SOFA has been presented for the charity alone as permitted by section 408 of the Companies Act 2006.
(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 between areas of activities 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 15
Sadler's Wells Trust Limited (Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2022 (continued)
1 Accounting Policies (cont)
(m) Financial Instruments
The charity has elected to apply the provisions of section II "Basic Financial Instruments" 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.
Page 16
Sadler's Wells Trust Limited (Limited by Guarantee)
Notes to the Financial Statements
For the year ended 31 March 2022 (continued)
(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 commissioning fees carried forward in the balance sheet at each period end.
(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. Arts Council and other Government Funding
During the prior year, the charity was successful in securing grants from the Arts Council England's Emergency fund and the Department of Culture, Media and Sport's Cultural Recovery Fund with grants of £1.5m and £2.975m received respectively. In view of the significance of the amounts received, this was disclosed as exceptional income.
3. Support Costs
| 3 | Suort Costs | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| . | pp | Year ended | Year | ended | ||||||
| Theatre | 31 March 2022 | 31 March 2021 | ||||||||
| Presentation | Overhead | Fundraising | Trading | Total | Total | |||||
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |||||
| Executive Office | 586 | 51 | 33 | 76 | 746 | 636 | ||||
| Administration | - | - | - | - | - | 330 | ||||
| Finance | 1,743 | 152 | 97 | 227 | 2,219 | 523 | ||||
| Governance | - | - | - | - | - | 25 | ||||
| People | 235 | 20 | 13 | 31 | 299 | 123 | ||||
| 2,564 | 223 | 143 | 334 | 3,264 | 1,637 | |||||
| Unrestricted resources | expended | |||||||||
| before support costs | 13,783 | 3,289 | 426 | 1,437 | 18,935 | |||||
| Unrestricted resources | ||||||||||
| expended | 16,347 | 3,512 | 569 | 1,771 | 22,199 |
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 36 34 0 0 2 4 Year ended 31 March 2022 Total Year ended 31 March 2021 Total |
|---|---|
| 38 38 |
Page17
Sadler's Wells Trust Limited (Limited by Gurantee)
Notes to the Financial Statements
For the year ended 31 March 2022 (continued)
5. Staff Costs
Consolidated and charity
| Consolidated and charity | |
|---|---|
| Wages and salaries Social security costs Pension costs (note 15) |
2022 2021 £'000 £'000 6,998 6,888 622 570 234 235 |
| 7,854 7,693 |
Redundancy and termination payment costs included in the above totalled £1,632 (2021: £139,865).
Employee remuneration for employees earning more than £60,000 fell in the following bands:
| 2022 | 2021 | |
|---|---|---|
| Number | Number | |
| £190,001 - £200,000 | 1 | - |
| £140,001 - £150,001 | 1 | - |
| £130,001 - £140,000 | - | 1 |
| £110,001 - £120,000 | - | 1 |
| £90,001 - £100,000 | 1 | - |
| £80,001 - £90,000 | 1 | - |
| £70,001 - £80,000 | - | 1 |
| £60,001 - £70,000 | 6 | 3 |
During the year the company paid pension contributions of £48,496 (2021: £37,985) on behalf of these staff. In the prior year during the pandemic, pay restrictions were implemented. These were reversed as the theatre reopened.
The average monthly head count was 302 staff and the average number of full-time equivalent staff employed (including part-time staff):
| Theatre and Front of House Box office Marketing Technical Administration Development Events Catering |
2022 2021 Number Number 68 77 9 13 20 16 59 73 14 15 9 9 5 5 21 21 |
|---|---|
| 205 229 |
The Trustees received no remuneration for the services they provided to the company. No expenses were reimbursed (2021: £nil). The Trustees donated £486,881 (2021: £197,286) to the charity during the year.
Page 18
Sadler's Wells Trust Limited (Limted by Guarantee)
Notes to the Financial Statements
For the year ended 31 March 2022 (continued)
5. Staff Costs (continued)
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, Executive Producer, Technical Director, Director of Development, Director of Breakin' Convention, Interim Director of Digital Stage, Director of Catering and Events, Director of Marketing and Communications, Director of Learning and Engagement, Director of Data & Systems 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 this group, including pension contributions, was £941,943 (2021: £964,546).
6. Tangible Fixed Assets Consolidated
| Cost At 1st April 2021 Additions Disposals At 31st March 2022 Depreciation At 1st April 2021 Charge for the period At 31st March 2022 Net book value At 31st March 2022 At 31st March 2021 |
2022 Total £'000 £'000 £'000 £'000 110 394 154 658 - 35 - 35 - (78) - (78) Fixtures and Fittings Leasehold Imp'ments Computer Equipment |
|---|---|
| 110 351 154 615 |
|
| 65 317 154 536 5 7 - 12 |
|
| 70 324 154 548 |
|
| 40 27 - 67 |
|
| 45 77 - 122 |
| Charity Cost At 1st April 2021 Additions Disposals At 31st March 2022 Depreciation At 1st April 2021 Charge for the period At 31st March 2022 Net book value At 31st March 2022 At 31st March 2021 |
2022 £'000 £'000 £'000 £'000 110 332 46 488 - 35 - 35 - (78) - (78) Fixtures and Fittings Computer Equipment Leasehold Imp'ments |
|---|---|
| 110 289 46 445 |
|
| 65 255 46 366 5 7 - 12 |
|
| 70 262 46 378 |
|
| 40 27 - 67 |
|
| 45 77 - 122 |
Page 19
Sadler's Wells Trust Limited (Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2022 (continued)
7 (a). Investment in trading subsidiary
The wholly owned trading subsidiary Sadler's Wells Limited (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 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.
| Profit and Loss Account Turnover Cost of sales Production expenses Gross Profit Administration expenses 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 Creditors: amounts falling due within one year Total net current assets Aggregate share capital and reserves Current assets |
Year Year ended ended 31 March 31 March 2022 2021 £'000 £'000 4,325 246 (443) (50) (2,880) (35) |
|---|---|
| 1,002 161 (944) (4) 394 7 |
|
| 452 164 |
|
| - - (452) (164) |
|
| - - |
|
| 31 March 31 March 2022 2021 £'000 £'000 450 450 2,466 561 (2,916) (1,011) |
|
| - - |
|
| - - |
Page 20
Sadler's Wells Trust Limited (Limited by Guarantee) Notes to the Financial Statements
For the year ended 31 March 2022 (continued)
7 (b). Investment property
The investment property held by the charity is 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 Street valued at £1m. Independent valuations of these properties have been undertaken: for the house in April 2018 by Robert Cooney, Chartered Surveyors, in April 2018, and for the office building in September 2020 by Daniel Watney, Estate Agents. 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 the 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, who are not connected with the company. The valuations were reviewed in the year and the Trustees consider that this is the best estimate of the fair value at the balance sheet date.
| Fair value At start of year Transfers from tangible fixed assets Net gains or losses through fair value adjustments At end of year Debtors Trade debtors Amounts owed by related undertakings Other debtors and prepayments Corporation Tax Receivable Accrued income |
Consolidated Charity Consolidated Charity 31 March 31 March 31 March 31 March 2022 2022 2021 2021 £'000 £'000 £'000 £'000 1,650 1,200 650 200 - - 94 94 - - 906 906 |
|---|---|
| 1,650 1,200 1,650 1,200 |
|
| Consolidated Charity Consolidated Charity £'000 £'000 £'000 £'000 1,100 822 190 114 7 2,517 - 865 376 353 577 574 394 - 7 - 286 279 768 768 2022 2021 |
|
| 2,163 3,971 1,542 2,321 |
8. Debtors
9. Creditors: Amounts due within one year
| Trade creditors Social security and other taxes Accruals and deferred income |
Consolidated Charity Consolidated Charity £'000 £'000 £'000 £'000 1,893 1,807 372 363 734 734 264 264 5,213 4,893 3,907 3,770 2022 2021 |
|---|---|
| 7,840 7,434 4,543 4,397 |
10. Creditors: Amounts due after more than one year
| Loan | Consolidated Charity Consolidated Charity £'000 £'000 £'000 £'000 4,335 4,335 4,250 4,250 2022 2021 |
|---|---|
Page 21
Sadler's Wells Trust Limited (Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2022 (continued)
11. Borrowings
| Payable within 1 year Payable 2-5 years Payable over 5 years |
31 March 31 March 2022 2021 - - 499 246 3,836 4,004 |
|---|---|
| 4,335 4,250 |
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 2025 and the interest rate is 2% per annum.
12. Reconciliation of Net (Outgoing) / Incoming Resources from Operating Activities to Net Cash flows
| Activities to Net Cash flows | |||||
|---|---|---|---|---|---|
| Year ended | Year ended | ||||
| 31 March | 31 March | ||||
| 2022 | 2021 | ||||
| Consolidated | £'000 | £'000 | |||
| Net (expenditure) / income for the reporting period | (2,202) | 3,459 | |||
| Depreciation | 12 | 6 | |||
| Finance costs | 85 | - | |||
| Net gains or losses | - | (906) | |||
| (Increase) / Decrease in stock | (16) | 14 | |||
| (Increase) / Decrease in debtors | (620) | 2,308 | |||
| Increase/ (Decrease) in creditors | 3,374 | (1,941) | |||
| Net cash inflow from operating activities | 633 | 2,940 | |||
| 13. | Analysis of Cash Flows for Headings in Cash | Flow Statement | |||
| Year ended | Year ended | ||||
| 31 March | 31 March | ||||
| 2022 | 2021 | ||||
| £'000 | £'000 | ||||
| (a) Cash flows from investing and financing activities | |||||
| Purchase of property, plant and equipment | (35) | (77) | |||
| Investment gain on liquid investments | - | 79 | |||
| Finance obtained from DCMS loan | - | 4,250 | |||
| (35) | 4,252 | ||||
| 14. | Analysis of changes in net debt | 1 April | Non-cash | Cash | 31 March |
| 2021 | Flow | Flow | 2022 | ||
| £'000 | £'000 | £'000 | £'000 | ||
| Cash at bank and in hand | 11,745 | - | 598 | 12,343 | |
| Borrowings | |||||
| DCMS loan | (4,250) | (85) | - | (4,335) | |
| Net debt | 7,495 | (85) | 598 | 8,008 |
Page 22
Sadler's Wells Trust Limited (Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2022 (continued)
15. Liability of Members
The company is limited by guarantee and the liability of members is limited to £10 each. At 31 March 2022 there were 14 members (2021: 12 members).
16 Operating Lease Commitments
The charity has an annual rent commitment of £300,000 (2021: £282,848) in respect of the lease of Sadler's Wells Theatre, from Sadler's Wells Foundation, which expired at end of year and was renewed after the year end. Sadler’s Wells Foundation granted a rental holiday to Sadler’s Wells Trust from January 2020 to March 2021. 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 2019. The total payable to the end of the lease is £992,853 (2021: £3,325,000).
17. Pension Commitments
Sadler's Wells Trust makes contributions to employees' private pension plans, the costs of which amounted to £234,284 during the year to 31 March 2022 (2021: £235,422). The pension creditor at the year end was £39,330 (2021: £34,756).
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 Fund Relaunch Fund Development Out the Box Unrestricted Funds: Designated Funds Peacock Theatre Fund Creative Learning Fund The Shakespeare's Head Fund ACE Cultural Recovery Fund Contingency reserve General Fund |
At 1 April Income Expenditure Transfers/ At 31 March 2021 Gains 2022 £'000 £'000 £'000 £'000 £'000 261 523 (600) - 184 131 - - - 131 32 131 (110) - 53 122 240 (362) - - 240 2 (42) - 200 270 - - - 270 73 - (4) - 69 626 - (626) - - 264 200 (464) - - 540 530 (402) - 668 - 10 (7) - 3 |
|---|---|
| 2,559 1,636 (2,617) - 1,578 |
|
| 50 - - - 50 135 - (135) - - 402 - - - 402 341 - (341) - - - - - 500 500 |
|
| 928 - (476) 500 952 |
|
| 2,829 21,060 (22,199) (106) 1,584 |
|
| 6,316 22,696 (25,292) 394 4,114 |
Page 23
Sadler's Wells Trust (Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2022 (continued)
18. Net Movement in Funds (cont)
Restricted Funds
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, 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 a 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. The Out of the Box restricted fund is a Cripplegate foundation grant to fund project for young people.
Designated Funds
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. The Creative Learning Fund is to expand Sadler's Wells Creative Learning programme. The ACE Cultural Recovery Fund represents amounts designated from the Cultural Recovery Fund grant received in 202021 for which expenditure was incurred in 2021-22. The contingency reserve fund is to support contingency and the unknown challenges in the year ahead.
19. Transfers between funds
The transfer of funds from the general fund to the designated fund is to set up a contingency reserve in the year. This is to support contingency and the unknown challenges in the year ahead.
20. Analysis of Net Assets between Funds
| Unrestricted Funds Designated funds Restricted funds Total Funds |
Fixed Cash Other Net Net Total Assets Liabilities Assets £'000 £'000 £'000 £'000 1,115 10,346 (9,877) 1,584 402 550 - 952 200 1,447 (69) 1,578 |
|---|---|
| 1,717 12,343 (9,946) 4,114 |
Page 24
Sadler's Wells Trust (Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2022 (continued)
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 £565,696 (2021: nil) from Sadler's Wells Foundation Ltd and £340,778 was due to the Foundation at the year end.
Sadler's Wells Foundation Ltd is a member of Sadler's Wells Trust Ltd.
A gift of £452,284 (2021: £164,172) was receivable from Sadler's Wells Limited for the year, and £2,510,233 was due from (2021: £852,684) that company at the year end.
22. Capital Commitments
At 31 March 2022 Sadler's Wells Trust had no capital commitments committed but not yet contracted for (2021: None).
Page 25
Sadler's Wells Trust Limited (Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2022 (continued)
23. Comparative Net Movement in Funds
| At 1 April | At 1 April | Incoming | Resources | Transfers | Gains | At 31 March | |
|---|---|---|---|---|---|---|---|
| 2020 | Resources | Expended | 2021 | ||||
| £'000 | £'000 | £'000 | £'000 | £'000 | |||
| Restricted Funds: | |||||||
| The Shakespeare's Head Fund | 83 | 486 | (308) | - | - | 261 | |
| Dame Hilda Bracket Fund | 131 | - | - | - | - | 131 | |
| What Next? Fund | 41 | 100 | (109) | - | - | 32 | |
| Stratford Mobilisation | 92 | 60 | (30) | - | - | 122 | |
| Breakin' Out | 246 | - | (6) | - | - | 240 | |
| NYCB Fund | 270 | - | - | - | - | 270 | |
| DOPODO | - | 73 | - | - | - | 73 | |
| Garfield Weston Fund | - | 626 | - | - | - | 626 | |
| Relaunch Fund | - | 264 | - | - | - | 264 | |
| Development | - | 540 | - | - | - | 540 | |
| 863 | 2,149 | (453) | - | - | 2,559 | ||
| Unrestricted Funds: | |||||||
| Designated Funds | |||||||
| Creative Development Fund | 782 | 26 | - | (808) | - | - | |
| 369 St John Street Fund | 95 | - | - | (1,000) | 905 | - | |
| Peacock Theatre Fund | 50 | - | - | - | - | 50 | |
| Creative Learning Fund | 135 | - | - | - | - | 135 | |
| The Shakespeare's Head Fund | 402 | - | - | - | - | 402 | |
| ACE Cultural Recovery Fund | - | - | - | 341 | - | 341 | |
| 1,464 | 26 | - | (1,467) | 905 | 928 | ||
| General Fund | 451 | 13,455 | (12,551) | 1,467 | 7 | 2,829 | |
| 2,778 | 15,630 | (13,004) | - | 912 | 6,316 |
Page 26
Sadler's Wells Trust Limited (Limited by Guarantee)
Notes to the Financial Statements
For the year ended 31 March 2022 (continued)
24. Comparative Analysis of Net Assets between Funds
| Unrestricted Funds Peacock Theatre Fund Creative Learning Fund The Shakespeare's Head Fund ACE Cultural Recovery Fund General Fund Restricted Funds The Shakespeare's Head Fund Dame Hilda Bracket Fund What Next? Fund Stratford Mobilisation Breakin' Out NYCB Fund DOPODO Garfield Weston Fund Relaunch Fund Development Total Funds |
Fixed Cash Other Net Net Total Assets Liabilities Assets £'000 £'000 £'000 £'000 - 50 - 50 - 135 - 135 402 - - 402 - 341 - 341 1,170 8,791 (7,132) 2,829 |
|---|---|
| 1,572 9,317 (7,132) 3,757 |
|
| - 261 - 261 200 - (69) 131 - 32 - 32 - 122 - 122 - 240 - 240 - 270 - 270 - 73 - 73 - 626 - 626 - 264 - 264 - 540 - 540 |
|
| 200 2,428 (69) 2,559 |
|
| 1,772 11,745 (7,201) 6,316 |
Page 27
Sadler's Wells Trust Limited (Limited by Guarantee)
Notes to the Financial Statements
For the year ended 31 March 2022 (continued)
25 Comparative Fund and SOFA Balances
| Note Income Charitable activities Theatre presentations Donations and legacies Sponsorship and donations Arts Council and other operational funding 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 2020 Net Funds at 31 March 2021 Trading costs Net Movement in Funds |
Unrestricted Designated Restricted Total Funds Funds Funds Funds Year ended Year ended Year ended Year ended 31 March 31 March 31 March 31 March 2021 2021 2021 2021 £'000 £'000 £'000 £'000 770 - - 770 1,535 26 1,602 3,163 10,790 - 486 11,276 218 - - 218 63 - 60 123 |
|---|---|
| 13,376 26 2,148 15,550 |
|
| 6,701 - 343 7,044 4,503 - 109 4,612 406 - - 406 941 - - 941 |
|
| 12,551 - 452 13,003 |
|
| 825 26 1,696 2,547 79 - - 79 |
|
| 904 26 1,696 2,626 7 905 - 912 1,467 (1,467) - - |
|
| 2,378 (536) 1,696 3,538 451 1,464 863 2,778 |
|
| 2,829 928 2,559 6,316 |
Page 28
Sadler's Wells Trust Limited (Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2022 (continued)
26 Comparative Support Costs
| Theatre Presentations Overhead Fundraising Trading £'000 £'000 £'000 £'000 Management 512 42 25 57 Administration 265 22 13 30 Finance 420 34 21 48 Governance 20 2 1 2 Human Resources 98 8 5 12 1,315 108 65 149 Unrestricted resources expended before support costs 5,386 4,395 341 792 Unrestricted resources expended 6,701 4,503 406 941 |
Theatre Presentations Overhead Fundraising Trading £'000 £'000 £'000 £'000 512 42 25 57 265 22 13 30 420 34 21 48 20 2 1 2 98 8 5 12 |
2021 £'000 636 330 523 25 123 |
|---|---|---|
| 1,637 | ||
| 6,701 4,503 406 941 |
Page 29