##
|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|
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|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|
##
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|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|