2023-03-31-accounts - The Watershed Arts Trust Limited

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Contents
Strategic report											2-12
Trustees' report											13-15
Independent	auditors'	report tothe		members	ofWatershed		Arts Trust Limited (a	company	limited	by
guarantee)											16-19
Consolidated	statement	of	financial	activities	(including	an	income 8t expenditure	account)			20
Consolidated	cash flow	statement									21
Consolidated	and company		balance	sheets							22
Notes											23-42

Consolidated statement	offinancial activities (including	offinancial activities (including	offinancial activities (including	an income &expenditure	an income &expenditure	account)
for the year ended 31March 2023
				Note	Unrestricted	Restricted	Total Funds	Total Funds
					Funds	Funds	2023	2022
					f	E	f	f
Income
Voluntary income
Donations and legacies
Individual giving					36,691		36,691	30,125
Donated services								3,854
Regular grant funding					812,384		812,384	812,384
Arts Council England Cultural Recovery Grant								398,326
Other trading activities
Commercial trading operations					1,588,256		1,588,256	862,871
Investment income
Interest receivable					332		332	27
					2,437,663		2,437,663	2,107,587
Income from charitable	activities
Earned income from cinema activities					744,054		744,054	462,869
Rental income					198,585		198,585	171,684
Service charges					161,725		161,725	124,828
Other earned income					142,790		142,790	89,413
Programme funds					9,674	1,396,717	1,406,391	1,419,621
					1,256,828	1,396,717	2,653,545	2,268,415
Other income
Government grants (COVID support)								142,256
Capital grants						200,000	200,000	75,000
Total income					3,694+91	1,596,717	5,291+08	4,593+58
Expenditure
Costs ofraising funds
Fundralslng costs					(55,126)		(55,126)	(52,540)
Commercial trading operations					(1,268,265		(1,268,266)	~902,998)
					(1,323,391)		(1,323,391)	(955,538)
Charitable activities
Operation ofcinema, engagement creative media projects		and			(2,942,989)	(1,396,717)	(4,339,706)	(3,578,207)
Donated services								(3,854)
CICoperation					(813)		(813)	(504)
Property management costs					(84,171)		(84,171)	(76,769)
Total expenditure					(4,351364)	(1396,717)	(5,748,081)	(4,614+72)
Net income/(expenditure) Net income/(expenditure)	before for the	transfers year	and		(656,873)	200,000	(456,873)	(21,614)
Transfers between funds				20	126,123	(126,123)
Net movement in funds					(530,750)	73,877	(456,873)	(21,614)
Reconciliation offunds
Total funds brought forward					9,118,719	1,259,173	10,377,892	10,399,506
Total funds carried forward					8,587,969	1,333,050	9,921,019	10,377,892

Consofldated cash flow statement
for the year ended 31March 2023
				2023	2022
				f	f
Cash flows from operating activities
Net (outgoings)/income				(456,873)	(21,614)
Depreciation oftangible assets				187,741	175,920
Depreciation write-off (head lease)
Loss on disposal offlxed assets
Taxatlon
Change in trade and other debtors				(365,745)	23,126
Change in stocks				(1,420)	(9,182)
Change in trade and other creditors				72,547	(48,251)
Net cash flow generated from operating		activities		(563,750)	119,999
Cash flows from investing activities
Purchases oftangible assets				(365,223)	(64,387)
Net cash from investing activities					(64,387)
Cash flows from financin activities
Decrease in loan/long term creditors
Net cash flows from financing activities
Cash at bank and In hand at beginning	of	year		1,778,299	1,722,687
Cash at bank and in hand at end ofyear				848,949	1,778,299
Analysis ofchanges in net debt
			At 1April 2022 f	Cashflows f	At 31March 2023 f
Cash			1,778,299	(928,973)	849,949
Total			1,778,299	(928,973)	848,949

Notes (continued)	Notes (continued)	Notes (continued)	Notes (continued)
4 Grant and project income				receivable (Group)
				Deferred as	Cash	Credited to	Transferred	Deferred as
				at 1April	received L	income &	to capital	at 31March
				2022	receivable	expenditure	grants	2023
					2022/23	2022/23	2022/23
					E	E	E
Income from	donations		and legacies
Unrestricted	grants
Regular Grant Funding
Arts Council	England	—National		Portfolio funds	757,984	(757,984)
Bristol City Council —Key Arts Provider funds					54,400	(54,400)
Total Regular Grant		Funding			812,384	(812+84)
Cultural Recovery Grants
Arts Council	England
Total unrestricted grant			funding
Income from	charitable		activities
Unrestricted	grants
Europa Cinemas					9,674	(9,674)
Unrestricted	other project funding
Other
Total other grants					9,674	(9,674)
Restricted
Programme	funding	—grants
British Film Institute				16,547	810,240	(826,787)
HESector				111,794	287,133	(311,075)		87,852
Other grants				11,240	74,970	(85,704)		506
Programme	funding	—other
Other project funds				8,000	182,062	(173,151)		16,911
Total programme funds				147,581	1@54,405	(1,396,717)		105,269
Other Grants
Unrestricted
Government	grants	(COVID support)
Total other grants
Total				147,581	2,176W3	(2,218,775)		105,269

6 Trading subsidiary's result	s (Wa	tershed Trading Limited)
			2023	2022
			Total	Total
				f
Turnover			1~,256	976,163
Cost ofsales			(1,214,853)	(776,335)
Gross profit/(loss)			373,403	199,828
Administration and other costs			(53,412)	(126,663)
Trading proAt/(loss)			319,991	73,165
Other income				9
Net income/ (outgoing funds)			319,991	73,174
Gift aid payment to Watershed	Arts Trust Umited		(5,263)
Management charge from Watershed		Arts Trust Limited	(176,627)	(57,309)
Taxon profit on ordinary activities
Retained proAt/(loss) for the year			138,101	15,865
Retained profit brought forward			80,047	64,182
Retained profit carried forward			218,148	80,047
The assets and liabilities ofthe	subsidiary were:
			2023	2022
			Totalf	Total f
Fixed assets			21,664	37,531
Current assets			452898	391,489
Creditors: amounts falling due	within	one year	(252+29)	(345,388)
Provisions for liabilities and charges			(3,485)	(3,485)
Net assets			218+48	80,147
Equity shareholders' funds			218,248	80,147

							2023	2022
Subsidiary Turnover
							Total	Total
							E	E
Cafe/bar, conference,			retail sales				1~+56	869,227
Government JRSgrants								73,603
Arts Council England		Cultural		Recovery Fund				33,333
Turnover							1,588356	976,163
7 Trading subsidiary's				results (Watershed	Ventures	CIC)
							2023	2022
							Total	Total
							E	E
Turnover
Cost ofsales
Gross profit
Administration and	other costs						(813)	(504)
Trading profit							(813)	(504)
Other income							222	3
Net income							(591)	(501)
Gift aid payment to	Watershed			Arts Trust Limited
Management charge		from Watershed Arts Trust			Limited
Tax on profit on ordinary activities
Retained profit for	the year						(591)	(501)
Retained profit brought forward							7,785	8,286
Retained profit carried			forward				7,194	7,785
The assets and liabilities			ofthe	subsidiary were:
							2023	2022
							Total	Total
							E	E
Current assets							58+33	58,586
Creditors: amounts	falling due			within one year			(1,138)	(800)
Net assets							57,195	57,786
Equity shareholders'		funds					57,195	57,786

charitable activities undert	aken	(see note 9). Support co	sts are allocated on	a basis consistent with	the use ofresour	ces.
		Charitable	Fundraising costs	Governance	2023	2022
		activities f	f	f	Total f	Totalf
Support cost
General office		96,192	1,667	21,940	119,799	108,288
Finance office		242,525	2,484	56,450	301,459	261,018
External audit				15,366	15,366	22,821
Professional services		30,235		27,046	57,281	30,214
Fundraiser costs			50,975		50,975	48,290
		368,952	55,126	120,802	544,880	470,631
9 Analysis ofcharitable	expenditure
				Creative
			Audience Engagement	technology and talent	2023 Total	2022 Total
			Programme	development
				projects
			f	f	f	f
Cinema Screening —direct	costs		907,814		907414	609,232
Direct programme/project	costs		646,599	754,840	1,401,439	1,339,328
Arts programme management		and marketing	442,130	319,549	761,679	579,568
Premises costs			397,099	210,047	607,146	470,244
General support costs			295,162	73,790	368,952	315,547
Governance costs			96,641	24,161	120802	102,544
Depreciation			137,499	34,375	171874	161,744
Total			2,922,944	1,416,762	4+39,706	3,578,207

				Number ofemployees	Number ofemployees
				2023	2022
Cultural	engagement		programme	42	36
Administration				13	12
Trading				23	21
				78	69
The aggregate		payroll costs ofthese persons were asfollows;
				2023	2022
Group
Directors' emoluments
Wages	and salaries			2,578,672	2,206,588
Socia I security		costs		231,738	192,356
pension	costs			51,760	47,796
				2,862,170	2,446,740

			2023	2022
			E	E
Auditors'	remuneration	—audit services (Charity: E18,000)	26,979	25,325
Auditors'	remuneration	—non audit services (Charity: ENil)		11,199
Depreciation and other		amounts written offtangible fixed assets	187,741	175,920
inventories	recognised	as an expense	1,213,433	628,362
Operating	lease payments recognised as an expense		10,306	10,306

Current tax
UK corporation tax on results ofthe year
Deferred tax (see note 19)
Origination/reversal oftiming differences
Tax on profit on ordinary activities

				2023	2022
				E	E
Current tax	reconciliation
Profit/(loss)	on ordinary		activities before tax	138,101	15,865
Current tax	at 19%			26,239	3,014
Effects of:
Losses brought back
Other timing differences				921	(3,883)
Expenses not deductible			fortax purposes		17
Deferred tax changes		in	tax rates	8,541	1,725
Group relief	claimed			(112)	(873)
Movement	in deferred	tax not recognised		(35,589)

13 Tangible fixed assets
	Head lease	Leasehold	Furniture and	Total
		improvements	equipment
Group
Cost orvaluation
At beginning ofyear	7,650,000	3,204,571	1,745,783	12,600,354
Disposals inthe year
Revaluation ofhead lease
Additions		359,085	6,138	365,223
At end ofyear	7,650,000	3,356,656	1,751,921	12,965,577
Depreciation
At beginning ofyear		2,081,332	1,350,879	3,432,211
Depreciation on disposals
Charge foryear		117,000	70,741	187,741
At end ofyear		2,198,332	1,421,620	3,619,952
Net book value
At31March 2023	7,650,000	1365+24	330+01	9~5,625
At31March 2022	7,650,000	1,123,239	394,904	9,168,143

Notes (continued)
14 Tangible fixed assets (continued)
	Head lease	Leasehold	Furniture	Total
		Improirements	and
			equipment
Charity			f
Costor valuation
At beginning ofyear	7,650,000	3,204,571	1,603,643	12,458,214
Disposals in the year
Additions		359,085	6,138	365,223
At end ofyear	7,650,000	3,563,656	1,609,781	12,823,437
Depreciation
At beginning ofyear		2,081,332	1,246,270	3,327,602
Depreciation on disposals
Charge for year		117,000	54,874	171,874
At end ofyear		2,198,332	1,301,144	3,499,476
Net book vaiue
At31March 2023	7,650,000	1,365+24	308,637	9+23,961
At 31March 2022	7,650,000	1,123,239	357,373	9,130,612
The Trustee's review ofthe fixed assets has	concluded that their value is not impaired,
The head lease qualifies as a 'long leasehold'	as it has over 50years	to run.
15 Fixed asset investments
Shares			Charity	Charity
			2023	2022
			f	f
At the beginning ofthe year			50,101	50,101
At the end ofthe year			50,101	50,101

17 Debtors
							Group			Charity
							2023		2022	2023		2022
							f		f	f		f
Trade debtors							380,118		99,000	236+05		22,923
Prepayments and accrued income							306,791		175,090	303,676		170,572
Other debtors	including taxation			and		social	17,248		64,322	17+48		64,232
security
Amounts owed from Group undertakings										73,5$6		130,960
							704,157		338,412	680415		388,687
All debtors are	recoverable within one year.
18 Creditors:	atnounts	falling	due within one year
							Group			Charity
							2023f		2022 f	2023 f		2022 f
Trade creditors							336,034		355,263	327,952		340,005
Other creditors	Including	taxatlon and					175,188		165,827	76,753		64,047
social security
Accruals and deferred income							450,345		367,930	376,981		269,740
Amounts owed	to group	undertakings										212
							961867		889,020	781,686		674,004
Other creditors	include f134,996(2022:f136,106)an						amount owed for		other taxes and social	security.
Accruals and deferred		income	Includes			accruals of	f170,736, deferred		Income comprising	f40,645 of conference		deposits,
f124,511of property income received					in	advance, f3,123of advance		cinema sales and f105,269 of grant and project income
(note 4).
Deferred rent income, advanced			cinema			sales, and conference deposits			as at 1April 2022, were fully released		in the	year. The
balance at the	year-end	was:
										Groupf		Charity f
Balance asat 1April 2022										75,971		15,622
Movement in deferred		income	In the	year						169,103		188,987
Balance asat31March		2023								245,074		204,609

			Group		Charity
			2023 f	2022 f	2023 f	2022f
Other loans			29,690	29,690	29,690	29,690
Analysis ofloans
Wholly repayable within 5years			29,690	29,690	29,690	29,690
The balance	off29,690relates to	rental deposits being held in respect of		tenancies to E4	W sheds.
20 Provisions and liabilities
Group						Deferred
						taxf
At beginning	ofyear					3,485
Movement	in the year (note 12)
Add back deferred tax asset (held		in debtors)
Deferred tax liability at end ofyear						3,485
he elements	ofdeferred taxation	are as follows:
					2023f	2022f
Difference between accumulated		depreciation	and capital allowances		3,485	3,485
Other short	term timing differences
					3,485	3,485

								Group f	Charity f
At beginning		ofyear						9,118,719	9,030,887
Movement	in	year before transfers						(656,873)	(794,383)
Transfer from		restricted funds		(note 21)				126,123	126,123
At end ofyear								8,587,969	8362,627
				At	Incoming	Expenditure	Transfers	Other	At end of
				beginning	resources			recognised	Year:31
				ofyear: 1				gains and	March 2023
				April 2022				losses
				E				E	E
Unrestricted		income funds
General fund				1,120,696	3,694,491	(4,351,364)	229,429		693,252
Designated	Funds
Building fund				244,717					244,717
Head lease	fund			5,504,856					5,504456
Capital fund				709,544					709,544
Revaluation		reserve	(head	1,435,600					1,435,600
lease)
Clusters Fund				35,539			(35,539)
Film Hub Fund				67,767			(67,767)
				9,118,719	3,694,491	(4,351,364)	126,123		8,587,969

			At	Incoming	Transfer to	Re-	Outgoing	At end of
			beginning	resources	unrestricted	classlflcatlon	resources	Year:31
			ofyear. 1		income	to		March
			April 2022		funds	unrestricted		2023
						funds
						E
Capital funds
Deferred capital grant			6+96		(1,600)			4,796
Deferred capitalrefurbishment		grants	437,151		(67,426)			369,725
Lottery lease purchase	grant		514,007		(8,712)			505,295
ACE GforA capital grant			30~9		(2,800)			27,689
ACE small capital grant			86,130		(28,710)			57,420
Garfield Weston capital	grant		100,000		(2,500)			97,500
Other capital funds			85,000	200,000	(14,375)			270,625
			1,259,173	200,000	(126,123)			1,333,050

Notes (con(inued)
22 Analysis offund balances - group
	Unrestricted	Restricted	2023	2022
	funds	funds	Total	Total
	f	f	f	f
Fixed assets	8,012,575	1,333,050	9,345,625	9,168,143
Net current assets	608,569		608469	1,242,924
Long term liabilities	(29,690)		(29,690)	(29,690)
Provisions for liabilities and charges	(3,485)		($~5)	(3,485)
	8,587,969	1,333,050	9,921,019	10,377,892

he fr(ture minimum lease payments under non-cancellable ll due as follows:	operating leases expected to be paid by the C	harity and Group w
	2023	2022
	Group and	Group and
	Charity plant	Charity plant
	and equipment f	and equipmentf
Within one year	10+06	10,306
Between one and five years	17+80	27,586
After five years
	27+86	37,892

	2023	2022
	Group and	Group and
	Charity leasehold	Charity leasehold
	propertyf	propertyf
Within one year	245,835	211,219
Between one and five years	737,505	794,340
After five years	199,387	183,594
	1,182,727	1,189,153

Notes (continued)
26 Comparative	statement		offinancial activities
					Note	Unrestricted	Restricted	Total Funds
						Funds	Funds	2022
						f	f	f
Income
Voluntary income
Donations and legacies
Individua I giving						30,125		30,125
Donated services						3,854		3,854
Regular grant funding						812,384		812,384
Arts Council England Cultural Recovery Grant						398,326		398,326
Other trading octivities
Commercial trading operations						862,871		862,871
Investment income
Interest receivable						27		27
						2,107,587		2,107,587
Income from charitable	activities
Earned income from cinema activities						462,869		462,869
Rental income						171,684		171,684
Service charges						124,828		124,828
Other earned income						89,413		89,413
Programme funds						6,000	1,413,621	1,419,621
						854,794	1,413,621	2,268,415
Other income
Government grants (COVID support)						142,256		142,256
Capital grants							75,000	75,000
Total income						3,104,637	1+88,621	4,593,258
Expenditure
Costs ofraising funds
Fundraising costs						(52,540)		(52,540)
Commercial trading operations						902,998		(902,998)
						(955,538)		(955,538)
Charitable activities
Operation ofcinema, engagement creative media projects			and			(2,164,586)	(1,413,621)	(3,578,207)
Donated services						(3,854)		(3,854)
GCoperation						(504)		(504)
Property management costs						(76,769)		(76,769)
Reversal ofdepreciation	(Head lease revaluation)
Total expenditure						(3,201,251)	(1+13,621)	(4,614472)
Net income/(expenditure) Net income/(expenditure)	before forthe		transfers year	and		(96,614)	75,000	(21,614)
Transfers between funds					20	109,248	(109,248)
Other recognised gains	and	losses
Gains on revaluation of	head lease
Net movement in funds						12,634	(34,248)	(21,614)
Reconciliation offunds
Total funds brought forward						9,106,085	1,293,421	10,399,506
Total funds carried forward						9,118,719	1,259,173	10,377,$92