Watershed Arts Trust UmSted (a Rep￿ of the Board and consclid31ed Ilnancial statements Yearended 31 M81¢h ￿24 Strate8lc ieport (continuedj Programme HiBhlights In 2023124 Watershed'5 pro8ramme ￿ntre5 around twin pillar5 of cultural cinema and creative technology- with an increasing focus on the emerglng overlap5 between thè two forms. Conn¢¢tln8 creativès to audlences through our venuelpubllc programme Our cinemas screened 364 film$13.340 screenings) and hosted 60 Question and Answer pane15 IQ&AI with filmmakers. Cinema Rediscovered our own film festival, took place in July 2023 attractin8 5,763 attendees. It wa5 followed by the Cinema Rediscovered tour which shared some of the fllms ihcluded in the festival at 38 cinemas across the UK. "A veryspeciolfestivol wlth o greot vibe.- Cinema Rediscovered 2023 Attendee Supportlng creatl¥es and organisations In ways ihat are relevant and hlghly tallored to thelr needs. 204 fesidents using arts & technology in their work were supported by the Pervasive Media Studio with free space & producer support. Our 8FI NETWORK team supported 635 fllmmakers with professional developmertt opportunities & provided fundlng for9 filmslearly development wojetts funded by BFI awardlng funds from National Lottery. Six small companies were funded through Playable City Sandbox. 10 people received micro- fellowshlps as part of an Experimentsl Audio Camp with Real World Studios & 11 were awarded longer term fellowship5 Wlth Industry partners. funded by Bristol Univer5ity5 M World. Film Hub south West supported 1,896 screenings. of which 1.737 were specièlised films - 91.6% reachSng 57,729 overall audien￿5 from 106 locations with the support of BFI awarding funds from National Lottery. "ljust wonted to shore my uppretFation of your t(Jlent ond how you ore developin J such o supported Struth West Filmmuking community and I can't woit to toke whot I leornt t7nd develop my scripts into production having learnt 59 muchfrom the workshop." 8FI NEtWORK- Thinking Cinemati¢ally particlpant Yharjks so much for htsving me in o personol phose of change, It reLilly meun5 0 lot, This yeor htss been exceptionally chollengingfor me profesS￿n01￿. ond it is very kind of you to hove me in the spoce while I'm findin9 my next role. Ir 9lve5 me somewhere to be thotfrels reolty important ond hos definitely helped my mentul heolrh o lot.- Pervasive Media Studio resident Yhe5tmud Film Festivolis creotive. excitin9, ondrealtyhelp5 me value 0nd￿nde￿tondrilrns ondfilmmuking" Fllm Hub South West backed Strouil Fllm Festival attendee Curatlrtg talent pathways that enable artlsts and film maker5 acr(w the world to develop Meanlngful and sustalnable careers BFI Film Academ offered 5creenin8s. courses and opportunities to 1,204 young people. We hosted 12 monthly Make Shift meetups for those who are Starting their Career. We held 6 family workshops inspirin8 62 children and thelr parents to be creative. 31 young people from 11 sch¢)ols auoss Bristol took part in our work experience, to Inspi￿ careers in the creative Sector. "I hove always found the ideo OA networking real￿ daunting but this hos given me loods more confidence. BFI Film Academy- Inside Screen attendee Re8i5teiedttynpany ￿￿￿￿tol608779 WatwsWArt5TriJst Lirnited laCcA￿￿nY Ilrnired byBuai8nleel Reprrft ofthe Board and consomated fthartcial staiemwt5 yearer￿ed 31 March 2024 Strateg1< report fcontlnuedj "A huge thonk you for putting on the whole work experlence week. I've had o really greot time, both working on my projert Jnd getting to know new people {which is not50mething I thought I'dsoy before this weekl) Completing work experience hos definitety obove ollelse reollyimproved my confldence, ond my obility to occess similoropportunities in the Jtrture.- Work Experlence *tendee CentTln8 ethlcs, Incluslon and cfimats lustlce In ourwob* Our Alternative Technolo les- A Just Transition programme brought 108ether 15 participants from across our work to examine tethnologies and their past, present and future role in climate justSce land breakdown) and explored what ihe alternatives could be. We offered our staff 'Recogni5ing and Combatting VthSte Supremacv trainlng with Martha Awojobl. Uslng the Carbon Literacy Training model, we've e￿ated our own course for our staff - over 70% cf staff have received tralning and tts now part of our indurtion. 'Ata time when OryL7nisatlons are strtsggling to Inrtigate undeffert chonge, beingport of o progromme thot embraces experimentol new meth¢xls ond equity with nuunce ond tore to enuble an Intergeneiotionol ond interculturalmix of prlrticiponts to collectivety explore how to oddress globol issuesfilts me wlth hope." Alternative Technologies: Just Transition participant 2023- 2024 OrganFsatlonal Prloritles Watershed's or8ani5ational priorities for 2023-2024 fell under themes of values and profftability: Bu51ness Development Successful delivery of profitabllitywork that resulted in substantial turnaround of finances. Collabtsrated with Critical Math to explore brand sponsorship offer. Rolled out ficketsolve as Watershed's new box office system to enable us to make data drSven commercial decislons for programmln8 and cinema operation5. Programmlng Undertook foundational work to establt5h an organisatlon wide pro8rammin8 strategy with cross organisational themes. Undertook foundational work to establish R&D You Can See. A new public programme that seeks to engage the public in early-stage creative technology R&D through weekty talks. open studio5, monthly networking events and showcasinglR&D testing in Watershed soclal spaces. Develop and announced Undershed immersNe 8allery. securing funding from the Arts and Humanities Research Couft¢il and BFI. En¥lionment Launched Watershed Wild an Generous- our vision for the future of our buTrlding. Createil a system to capture emissions from travel in our carbon foot printing methodology People Undertook foundational work to update all staff contracts. Final roll out is June 2024. Established coaching offer for staff members from minorit15ed backgrounds which has been taken up by 16 people. Audlences Wè soft launched our access register in late 2023 and communicated this to our existing customers and audience who have slgned up to our accessFble newsletter. We will roll out more widely In July (when new box office system is bedded Inl Re&stEredcomp8nynumtw01608779 Watershed Art57w5T LYnite(I la companylimlted by 8uarJntee Re￿ of the Board and Consol￿ated fi*èntsal $18ttynents yea¥end￿j 31 Ma￿h 2024 Strateglc report (continuedl Continue to reach new and underrepresented audien￿$ with a new focus on those from lower socioeconomic backgrounds. We worked with new partners to reach underrepresented audiences including a partnershtp with Bristol Butch Bar for the Opening Night P3rty for Rose Glass's npw film Love Lies Bleeding. Thanks to this partnership we welcomed nèw audiences from the LGBTQ+ community and reserved a portion of the tickets for those members ofthat community who were from lower socio-economlc backgrounds. "Made mefeel welcome as a part ofthe LGBTQ+ communtty membe "It wa5 great to see a BSL welcome on the screen on arrtval, and that the staff had some knowledge of BSL, 2024- 2025 Oryanlsatlonal Prlorltles 8uslness plannlng We will undertake buslnes5 planning for the next three years. Induding clarifying ourvision and mission and taking a new approath to planning to deliver a clear & accessible plan with dlscreet areas of focus around café & bar, events, cinema and creative technology. Watershed Wlld and Gtnero The Watershed building is in a bad state of repair. and we need to attract funding to carry 0￿ a detailed piece Cjf work around how we can fix and retrofit it. with the alm of making it fit for the future and more environmentally sustainable. We also have a vision to transform thè public spaces around us in innovative ways which we are calling Wild and Generous. We will secure funding to undertake a feaslb151ty study to deliver a fully costed and timed plan for these two elements. Dèllver new clnema and audience development strate8Y Cinema and communications have created new stratègies to be more intentional about the aim5 of our programme, how we will reach new audiences and how we will make financial targets. The strategies will be brought together through a fa¢ilitated prO￿$s- thls will include a review of the relevant staff forums. Undershed We will open Undershed Immersive Gallery in Autumn 2024. We will also lead a new natiL)nal network of immersive venues lif funding is secured). Flnance Systems We will scope. identify and deliver new software systems and processes to improve efficiency and busines5 reportin8. R15k Management Effective risk management Ss crucial to Watershed thrtvlnB In the changeable enviionmertl in which It operates. Watershèd's risk management strategy ensure5 that the organisation can- Malntaln a resllient, flexible. and viable operatlon. Make calculated investments in new and speculative areas without undermining the cohèrence and sustainability of the organisation. Watershed's risk register identrfies ihe key areas of risk the business faces, assesses the indlcators, likelihood and impact of those risks ar￿ idÈntifies thè actions required in order to mttigate them should they arise. ReOsieredc¢ynpany numtorOJfAJ8779 Wa￿￿e￿A￿STrU5t ikniied Iècornp3ny&miied b¥8uarahteel epDrt DI1￿ 8oard and ctywlvjated financlal ststemenis Yearended 31 MaY(h2024 Stratewc report (continuedj The risk register is created and re8ularly rwewed by the Board and the Executrve team. Watershed's rtsk management strateBV involves maintainln8'. Procedures to ensure earty detection of identtfied and emergent risks. Regular monStorin8 of key performance indicators across the organlsatlon Procedures to effertively mitigate identified ri5k5. Procedures to mSnlmise the Impact on the or8anisation should identttled risks materiallse. Prlnclpal rlsks and uncertalntFes Watershed's assessment of rlsk has been revlewed in Ilght of the continuing challènging circumstance and the key risk5 facing the company have been identified as- Buslness Model Trend analysis and hlstoric dats cannot be relied upon as patterns are changing. Increases In salary costs. services and purchasing and ￿llItIeS. Public funding not increasing year on year to match inflatlon. Changing tinema context - Dlstributors reduce marketing Spend which reduces audience reach, streamers buy up films and they don't get cSnema release. People and Culture Recruitrnent and retention of appropriate stsff teams and talent Impart of ¢ost-of-livin8 crlsis on mental health 8ulldlng and Systems Systems infrastructure with unreliable ahd unsvpported legacy Systems impacting operational efflclency. Financial reporting and planning failrng to meet organisational need, due to poor ftnancial systems and controls. Fall behind with crltical bulldinB work or fixed asset replacement causln8 Facilitie51equlpment to be no longer fit for purpose or meet customer expectations. Values Fallure to meet our cMIm￿ment to carbon neutral plan. Watershed causes harm to partlcipants in pro8rammes due to lack of diversity l understandln8 of strLrctural ableism l understanding of structural racism. For each of these risks, Watershed has in place indicatW5 and mtiigatin8 actions to monitor, avoid, mitigate or transfer the impact of its principal risk5 and uncertainties. The Trustees consider that adequate controls are in place to miligate the key risks identified in its rbsk register. Development IFundr3lslngl Watershed is committed to the highest fvndraising stsndards and believes that it is important that all our fundraising activities are clear, open. honest. ￿Spectful, and compliant. Watershed 15 reglstered with the Fundraising Regulator. We commit to its Fundraising Promise and follow Its Code of Fundraising Practice. Watershed raise funds via multiple fundraising activities. including p05tal and Lligital appeals, events and fundraising that has been organised by others on our behalf. We ensure compllance with thesè standards bv.. Our Head of Development ensures that all those engaging in fundraising for Watershed are aware of the Code of Fundraising Prartice an(1 any updates. Reg5ste￿￿(L￿npaDy￿w￿ber0I608119 Watrr5hedArtsfwSt Limited13company ￿mited by Buaranteel ReFkn of the eoard and 10Tr501daied finarndal statements YeaterKJed 31 March 2024 Strateglc report (continycdj Fundraisin8 ￿ condurted in line with our Fundraising Policy and supporters tan raise an issue or complain about ourfundraising artivities as outlined in our Fundralsing Feedback, Compliments and Complaints Policy. Fundraising complaints are monIto￿d. recorded. and reported annually tothe Fundraising Regulator by the Head of Development. There weie no complaints or toncerns received during the year. We value all our donors. no matter what theydonate. will treat them faifly and with respect H5 well a5 bein8 accountable for thè resources given to U5. We will not fvndraise in a way which is an unreasonable intrusion on a person's privacy. is unreasonably persistent or places undue pressure on a person to donate. We will consider the needs of any p055ible donor who may be in vulnerable circumstances or need extra care and support to make an informed decision and wlll not take a donation if we believe this is appropriate. Flnanclal revlew OVe￿IeW The consolidated results set out on page 17 show a deficit of £798,224. for the ye8r12023.. deficit of £456,873). The deficit on unrestricted funds for the year totalled £630.14912023.. deficit of £560.7501. 8efttrÈ transfers between funds, Watershed showed an unrestrlcted deficitof £346.824. Our operatin8 r¢5uIt was a profit of £81.776 although we were temporarily pulled intoa deficit due toa re¥aluation of our building, reflecting the current challenges in the commercial property market. However. our core operations generated a profit and are expected to continue doing so in the future. Unrestrlcted income lex¢luding income from restricted programme funds) was £4.57 million during the year and unrestricted expenditure (excluding expenditure on restricted programme c05tsl wa5 £4.48 million. Overall. designated funds which supp¢rt the creative activities have decreased by £880,000 In the year due to the revaluation of the Head Lease12023-. decrease of £103,3C61. Subsldlary Company Result5 The charittys wholly i)wned subsidiary, Watershed TradlnK iimlted, continued to operate Watershed'5 cafélbar and conferencè facillties. In a normal year, these aclmties provlde a valuable incomè stream to support the charltable actwitiès of the Arts Trust and form a key part of the Watershed offer, providin8 a welcoming, open and intlusbve meeting place for all io enjov. Watershed Trading Llmited generate(l a profit before tax of £183,41012023- profit of £138.1011. Donations were made through gift aid to the Chartty. based upon the prevlous yearfs trading12023.. £158,4031. The two maln sources of income generation for the Trading Company are.. Cafélbar food and liquor sales generated £1,451.45812023- £1.147.6031 Conference sales genèrated £572.25812023.. £430.2971 The charity's wholly owned subsldiary. Watershed Ventures CIC, did not carry out any attivity In the current or previous year. In the yeaf, Watershed Ventures CIC ma¢Je no donations12023.. £nlll through gift aid to the Charity and generated a loss before tax of £23712023..105s of £5911 and total revenue of £nll12023.' No activity was undertaken by Watershed Ventures CIC in 2023124 and no auivity Is currently planned for the 2024125 financial year. pewsterel ccrfnpanynurnb¥01608779 Wat¢Yshed ArtsTru5tknmiied la company Ilmitedbyguaranieel Remofthe &)ardand consoNdaied flnarncial 51alements Yeav ended 31 March 2024 Strateglc report (continued) Flnanclal monltorlni and ¢ortrol Watershed'5 financial systems enable early detection of potential problems allowing actions to be taken to mf(i8ate any likely impact in a timely manner. induding: A careful and prudent budgeting prttess to ensure that flnancial targets Ilncome and costs) aré realistic and achievable. Productlon of monthly management accounts to asses5 overall Group perfonnance against budget. Weekly and monthly sales reports ensure that progress against sales tar8ets Is kept in cltrse check. Fi)od and liquor sales margin5 are tracked weekly and are verlfied by a rnonthly stock take. Financial performan￿ is reviewed regularly by Watershed's Executive team and Quarterly bv Watershed's Financè Subfjroup and Board. The application of re5tritted funds is carefully monitored through indtvidual profit and loss accounts rèlating tg each fund. This ensu￿5 the corrett application of re5trirted programme funds and maintalns artivitles within the budget parameters set. Cash flow Is tracked through a rolling annual forecast which is reviewed and updated on a weekly basls. Watershed's income portfolio include5'. Pro8ramme Funds Pro8ramme funds receTrved through partnershlp agreements, restrfcted project grants and contracts for service5 account 30% tsf Watershed's Income in 23124 lup from 26% in 20221231. Building relatlonship5 Wlth key fvndeis and partners is vltal to growth. allowing Watershed to increase artivity and invest In developing new. excitlng initiative5. In 2023124 programme funds (excluding regular fundin8 from ACE) t¢talled £1.23 milllon122123.' £1.40 million). Princlpal funding partners in the year Included the Untversity of the West of En8land IUWEI, Unlversity of Bristol IUOBI. Arts Council England IACEI. British Film Institute IBFII and West of England Combined AUth(￿lty IWECA}. Unre5tr1¢ted Grants Watershed receives regular funding from Arts Council England las a National Portfollo Organisationl ènd Bristol City Council. Although these funds account for a relatively small portion of GTOUP turnover112%1 they form a vital part of Watershed'5 income portfolio enabling the cffganisation to plan for the future and dellver an exceptlonal cultural offer. General Fundralsln8 In the 2023124 financial year Watershed secLrred £122.950 12023.. £36,691) from fundraising through individual givlng and private spon50rshlp. Commerclal sales- Cafélbar and Conferente Sales generated by Watershed's tradlng subsidiary thr￿gh its cafelbar and conference operations account for 31% of Group tumover in 2023124, compared to 30% in 2022123. The cafélbar provides a vital safe and Inclusive meeting space for particlpants in Watershed'5 creative programme and members of the general public. The amblence In the café is carefully malntained to reflect the cuhural pro8rammÈ and Watershed's core values. Watershed's exceptional Conferen￿ seNice provldes clients Wlth quality facilities supported by experts in hospitality and technical delrvery to create bespoke events, Events hosted ran8e from Corporate conferences to weddings. Watershed intends to further developtheir broadcasting package to provlde clients with a professional. high spec on-line experience for conference delegates. ReO5tved company wmber01608779 WètHshedArtsTru5t Limrted13 company limited tyguaranieel Re￿￿01 Board and consofKJatEd linaniial 5iaiements Yearended 31 Match 2024 Strateglc report {continuedJ Wètershed's conference facilities and expert15e also contrlbute significantly to its cultural offer through ihe hosting of festlvals and events programmed by the Arts Trust and its partners forminB an Important part of the creative programme. Cinema Sales Cinema ticket sales accounted for I￿A of Group turnover in 2023124, compared to 14% of Group turnover In 2022123. Again, sales in the year have recovered Compared to the prior year but remain below the pre COVID19 levels, Watershed c¢nsiders and balances the need to generate sales revenue from its ¢inema progr8mme and its aim to provide a quality offer of cultural cinema which is accessible to all and affordable to those who are econDmically disadvantaged. Property In￿me The property income in the year was 3% of the group tumoverfor 2023124. Watershed continues to provide additional working space to a variety of small companies and Individuals, together with teams from 6ristol+Bath Creatlve R&D. 5UPPOrted by UWE, providing the project teams with a home from which to operate. Reserves pollcy Watershed's Reserves Policy is reviewed annualty by trustee5. OveNlew Watersheds reserves pdicy ensure5 that we rewnain sustainable, havè the capacity to mitigate financial hallenges and the ability to invest In its futvre. In establishing the leve5 of reserves appropriatè to its business, Water5heil has considered- income and expenditure levels in the current and future years thè obligations and operatlonal requirements of the Charity and Group the future development needs of the organisation Reser¥e5 Watershed reserves are split into the follo￿ngl￿ndS. General Fund The General Fund ensures that Watershed has the funds to meet its obligations as they f311 due in the event of a loss of income or the need to close. Our general reserves target is 3 months of Group operating costs, which amounts to £980,(￿ in 2024. As of 31 March 2024, WatÈrshed's General Fund Stood at £878.559. Bv the end o12Q24125, General Fund Reserve5 are estimated to reach £840,000, slightly below the target. However, if Watershed was to ceasÈ currènt operations the Trustees will seek to realise the value of our real estate assets mindful of our obligations to tenants and secure the best available options to dlscharge Watershed's liabilrty for ongoing costs for the building in the short and long term and meet our obligations to staff and suppliers. The trnstees are confident that in the event that Watershed had to wind up its business, the optlon of 5ellin8 thp Watershed building could generate sufficient fLtrnds to settle outstandlng debts. In thè èvent of an enfor¢ed Closure. recent pandemic experiences sugge5tthat approximately 50% of business operation5 could continue, allowing the Generol Fund to SUPPOrt the business for about 10 months. ReWsieredcoffip3nynumber01608779 Wartsshed AnsTruSt￿rted locom￿￿¥ limited ty8varènieel ReJxAt Df the8oard3nd conxbhdaied fwianci•151ate￿nl5 Velrel￿O 31 March 7024 5trateglc report (cortinuedj Bulldlng Fund {8rlstol +) The Bullding Fund (previously named the 8ristol+ fund) i5 to ensure that Watershed buildlngs are maintained in an excellent state of repair. io meet the c05t of unplanned emergency repairs and to meet future capital development need5. AS Set out in note 26, the buildingfund has been re5toted to reflert professional fees written off on a project which did not Progress. De$l8nated Funds Waiershed also holds several designated fvnds whith are established to ring-fence surpluses attributable to timing differences In areas of prvject activity supmed by specific one-off programme funds. This pollcy w35 last reviewed by Trustees In June 2023 and will be looked at again on a quarterly basls. As at 31 March 2024, Watershed's reserves comprise.: General fund £ 878.559 British Film Industry £ 64,444 Building fund £ 33,010 Total £ 960,664 Note- net current assets available at 31 March 2024 stsnd at £790.701 FollowlnB the revaluation otthe head lease inJuty2019, accumulated depreciation charge5 have been written back. A new capital designated fvnd was set up in 2019120 to rin8-fen￿ this am¢)unt for the purposes of capital Investment. The new head lease valuation of £6.770.c￿ Is TepresentÈd as.. Head lease designated fund Capital designated fund Revaluation reserve Total £5.$04,856 £ 709,$44 £ 555,6Crf) £6.770.￿) These funds represent a tanglble fixed asset from which Watershed operates, which are fvndamentsl to the delivery of the business plan. They are therefore not included in W3teished'5 unrestricted resefyes. Strurture. govèmance arKI management Watershed is struttured as a group of three companies. the parent company Watershed Arts Trust Limited and two wholly owned subsidi3ries. Watershed Trading limited and Watershed Ventures CIC. The Art5 Trust delivers the core programme, Watershed Tradlng Ltd manage5 hospitality and Watershed Ventures is a CIC which we are not currently delivering any activity through. Watershed's governance Structure reflects and supports the Group strurture and its organisational core values. culture and needs. It provides the management capacity and expertise to deliver Watershed's overall alms and objertives. The Board of Trustees, which govems the Chartty, meets four times a year. Prior to appointment new members are famlllarised with Watershed's memorarKlum and articles of association, business plan and recent financial performance. Watershed's Board of Trustees are volunteers and receive no remuneration. Watershed's Executive group, comprislng four senior managers, report to the Chlef Executive Officer. The Executive Team meet weekly. joined by the Senior Management Team every fortnight. The Executlve Team take responsibility for strategy and overall performance whilst Senior managers take responsibility for the day-to.day operafiL)ns. The Board review and approve changes io key management's remuneration. Re8lsieredeornpartynumber01608779 io WIt￿shed ArtsTrust timited la (OrnPaDyHmited b¥8vJranteel Reportof IhE Board and consolidaiedfinancial siatemenis Yeaf 31 March 1024 Stiate81¢ report fcontinued) Statement ol Trustte¥ rèsponsibilitles The trustees, whts are also dirertors of Watershèd Arts Trust Limited for the purposes of company law, are responsible for preparing the Trustees. Report lincorF>orating the strateÈlc reportl and the flnanclal statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102= The Financial Reportlng Standard applicable in the UK and Republic of Ireland Iunited Kingdom Generally Accepted Accounting Practitel. Company law requires ihe trustees to prepare financial statements for each financlal year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure, of the charitable group for that period. In preparing these financial Statements, the trustees are required to: select suitable accounting pol(cies and then apply them consistentty; observe the methods and principle5 in the Charities SORP- make judgments and accounting estimates that are reasonable and prudent.. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explalned In the financial statements. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue In business. The trustees are responsible for maintaining proper accounting record5 which disclose with ieasonable accuracy at any time the financial p05itiorh gf the charitable company and enable them to ensure that the financial statements comp5y with the Companies Att 21Th. Thèy are also responsible for safeguarding the assets of the charitable company and the group and hen￿ fortaking reasonable 5tep5 for the prevention and detettion of fravd and other irregularities. Re￿Stere8cC¥npan¥ nuTh￿r0160877g WatethOArtsTrustifftNteO l•¢ompoDY I[rnlted￿8L4?r1nlee Rewrtofthe8¢wd aThlcortsolidated finaniial 51alemen15 Yearwxled 31 March 2024 StratQ8lt rèport {continuedJ Reference and admlnlstratlvè detJlls Watershed Arts Trust Limited was incorporated as a company limited byguarantee on 19 January 1982. The company wa5 registered wtth the charity commission on 18 March 1982. The wholly owned subsidiarv Watershed Tradin8 Limited was incorporated on 12 Mard) 1982. Watershed Venture5 CIC Ipreviously ished CICI was incorporated on 12 February 2CQ7. The members of the Board of Trustees who ser¥ed during the year and post year end and who con5tltute dlrectors for Companles Act purp05e5 are listed below. Twstee5- Stephen Gatfield, (Chair) Tri¢ia Tuttle, (Deputy Chairl James Tou2el Kate Arthuf5, (Secretary) Sherrie Eugene Parys Gardener, appointed 26 JU￿ 2023 Siéharth Sharma Louise decordova. resrgned 10 October 2024 Louise Goux Wirth Charlotte Lester Jane Roscoe, ￿SIgned 28 June 2023 Secfetary: Kate Arthurs Chief Executlve Officer.. aare Reddington Charlty number: 284188 Company number 01608779 Re￿stered Offlce= I Canon's Road. Harbourslde. Bristol, BSI 5TX Auditors.. A C Mole LLP, Stafford House, Blackbrook Park Avenue. Taunton TAI 2PX Bankers.. HSBC Bank, 62 George Whitè Street, Cabot Circus, Bristol, BSI 3BA Solicitors: TLT LLP. l Reddlff Street, Bristol. 8SI 6TP Dlsdosure of Inforniatlon to audStors The Trustees who held ofFice at the Llate of approval of this Board ol Trv5tees' report conflrm that. so far as they are each aware, thère is no relevant audit infomiation of which the charitable Compan¢s audltors are vnaware,. and each Trustee has taken all the step5 that they ought to have taken as a Trustee to make themselves aware of arhy relevant aud￿ inf(mation and to establish that the charitable CoMpan￿S auditors are aware of that information. Auditors Watershed's Board of Trustees appointed auditors AC Mole LLP at bts Board meeting held on 27th March 2024 as the new auditors. By order of the Board S Gatfield Chalr of the Board I Canon's Road 8ristol BSI 5TX ieysteredcomp3nynumber01608779 Iz watershtd ArtsTrusi Lirnrted la (vrnpany limiieo by Avaranieel Repfft olthe 8oèrd and ConsolHIat￿f1nancb￿l stèiernenis Yearended 31 Mèrch 2024 Independent audltors, reportto thè mÈmbÈrs Watershed Arts Trnst Llmited Opinlon We have au(lited the financial Statements of Watershed Arts Trust ￿rnited I'the parent chariiablè companVI and it5 subsidiaries (the 'group'l for the year ènded 31 March 2024 which comprise the consolidated Statement of Financlal Aciivities. the con501idated and parent company Statements of Financial Position. consolidated Statemènt of Cash Flows. and the notes lo the financial statements, including a summary ol significant accountin8 policies. The flnancial reporting framework that has been applled in their preparation is applicable law and United Kingdom AccountirE Standards. including FR5 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements- give a true and fair view of the state of the group and the parent charitable company'5 affairs as at 31 March 2024 and of the Sroup's income resources and application of resour￿$, including its income and expenditure, for the year then ended. have been properly prepared in accordance with Un5ted Kingdom Gpnerally Accepted Accounting Practice,. and have been prepared in accordance with the Companie5 Act 2C(6. Basss for oplnlvn We ¢onducted our audit In accordance with International Standards on Auditing IUKI IISAS IUKII and pplitable law. Our responsrbilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are indepeftdent of the grgup in accordance with the ethical requirements ihat are relevant to our audit of the financial statements in the UK, including the FRCS Ethi￿1 Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we havè obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons rel?tin8 tv 8oin8 concem In auditing the financial statements. we have concluded that the trustees, use of the golng concern basi5 of accounting in the preparatlon of the financial statements is approprlate. Based on the work we have performed, we have ntst identified any material uncertainties relating to events or conditions that, individually or collectNely, may cast significant doubt on the #roup's ability to continue as a going concern for a period of at least 12 months from when the financial statements are atsthorised for issue. Our responsibilitles and the responsibilities of the trustees with respertto going concern arè described in the relevant sections of thSs report. Other InformatSon The other Information comprises the infomialion included in the annual rèport, including the trustees, report, other than the financial statements and our auditorf5 report thereon. The trustees are responsible for the Dther information contained within the annual reporL Our opinion on the financial statements dtses rtot cover the other Information and. except to the extent otherwise explicitly stated In our report, we do not express any form of assurance condu5ion thereon. Our responsibilily ss 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 ihe course Df the audit, or otherwise appears to be materlally Mi￿tated. If we identify such material inconsistencles trr apparent material mlsstatements, we arè rèquired io determine whether this gives rise to a material mi55tatement In the financial statements them5elve5. If, based on the work we have performed, we conclude that the￿ is material misstatement of this other infomiation. we are required to report that fact. We have nothlng to report irt thi5 regard. egistered c¢*mpanyrturntw01608779 13 WawshedMsTtyst Umlted (Jcompanw kniied byguara*tÈel Repr*t of ihe 8oydand tonsclldaied financial Sialernent5 Yeai ￿der1 31 March 2024 Independent audStors' report to the members Watershed Arts Trust Llmlied Oplnlons on other matters presfX5be¢l by th¢ Companles Act 2006 In our opinion, based on the work undertaken in the Course of the audlt.. the Information given In the Trustees. Annual Report which includes the Trustees, Report and the Strategic Report for the financial year for whith the finandal 5tstements are prepared Is consistent with the financial statements.. and the TrL4Stees' report lincort)oratin8 the strateglc ￿port> has been prepared In accordance wSth applicable legal requirements. Matters on whlch we are réqulrtd to report by ex¢eption In the light of the knowledge and understanding of the Company and its environment obtalned in the course of the audlt. we have not identified material mi55tatements inthe trustees. report lincorporatingthe strateÉi¢ report). We have nothing to report in respert of the following matter5 in Telation to whlch the Companles Act 20C6 requlres us to report to you rf. in our oixnion.. adequate and proper accounting ￿COrdS have not been kept. or return5 adequate for our audit have not been received from branches not vlslted by us; or the financial statements are not in agreement with the accountlng records and returns; or Certain disdosures of tru5tees' remunèration specified by law are not made.. or we have not Teceived all the Inftsm)ation and explanations we require for our aud5t. Respon5ibilltles of trustees As explained more fully in the trustee￿ responsibilities statèment, the trustee5 Iwho are also the dlrectors of the charitable company forthe purposes of company lawl are responsible for the preparation of the financial statements and for beln£ satisfied that they gfve 8 true and fair wew, and for such Intemal control as the trustees detem)Ine is necessary to enablethe preparatlon of finanaal statements that are free from material mi$5tatement. whether due to fraud or error. In preparing the financlal statements, the trustees are responslble for assessing the companV5 ability to continue as a goin8 concern. discloslrtg, as applicable. matters related to going concem and using the going concern basis of accounting unles5 the trusteeseitherintend to Ilquldatethe company orto cease operation5. or have no realistic afternative but to do so. Audltorfs respon5iblllties for the audlt of the flnancial statements Our cbjertive5 are to obtain reasonable assurance about whether the financial statements as a whole are free from materlal misststement, whetherdue to fraud or error, and to issue an auditorfs reportthat includes our opinion. Reasonable assurance is a hlBh kvel of a55urance. but is not a guarantee that an audit conducted In accordance with ISAS (UK} will always detect a material misstatement when it e¥ist5. Misstatements can arise from fraud or error and are C￿sidered material if. indlvidually or in the a8gre8ate, they could reasonably be experted to influence the eccfflomic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance wtth law5 and regulatlons. We design procedures In line with our re5PQTlSibilities. outlined above, to detert material misstatements in fespect of irregularities. including fraud. The extent to which our procedure5 are capable of detectin8 irTeEularities. includin8 fraud is detailed below. RE£ts*red companynumbEI 01￿8?79 14 Watershed ArtsTruSI Luniled la cornpanylimiied b¥AtsArantee Report of1he Board ar￿ tonsdldat￿rlrt31l(i31St31ernenis Yeèr ended 31 Match 2014 Independent auditors, report to the members WatershÈd Arts Trust Umlled Identlfylng and assessing potential risks of material mlsstatement due to Irr4ularltles We considèr thè following when identifying and assessing risks of material mi5Statement dueto Irre8ularitles, including fraud and non-compliance wlth laws and regulations.. the legal and règulatory framework in whlch the group operates the nature of the sector in which the group operates the control environment and controls establlshed to mitl8ate such ri5k5 the restjlts of our enquiries of management about their identification and assessment of risks of irregularities. discussions with the audit engagement team about where fraud might occur The incentnie for fraud Law5 and regulations which are considered to be signifitant to the gmup Include those relating to the requirements of h"nan¢ial reporting framework FRS102. the Charitiès Act 2011, the Companles Act 2(￿6. UK tax legislation. empl¢)yment law and health and safety. In addition. we consider other laws and regulhtion which rnay not dlrectly impact the financial statements but may impact on the operation of the company. In accordance wlth International Audlting Standards we concluded that a risk in relation to the potential fcbr management override of cl￿trolS existed. Audlt response to risks Identlfied: We undertook audit procedures to respond tothe risks identified. and desi8ned our audit testlng to respond to these risks. The additional procedurès we undertook included the followinB. Gaining an understanding of thè group's procedures for ensurlng compliance with laws and regulations testin8 the appropriateness of loumal entrie5 and other adjustments conslderln8 whether accountin8 estimates were indicative of potentlal bias considering whether any transactions arose tsutside the normal co¢Jrse of buslness. making enquiries of management corroborating our enquire5 through review of Board minutes and correspondence We also communicated relevant laws and regulations and potential fraud risks to all engagement tèam members and remained alert to any indicators of fraud or non-compllance with laws and re8ulations throughout the audit A further description of our responslbilities is available on the Financial Reporting Council's website at.. This description forms part of our auditOl'5 repcyt. Rewsiered cwparty num￿01&)67?9 15 Waier5hEd ArtsTiustl¥nrted la companylmlQd Ltyguaranteel ReM DlthE8oaid &)dtDnsolidated financialsiatenwts Yearendel 31 March 2024 Independ•nt audlt¢rs' report to the members Watershed Arts Trust Umlted Use of our leport This report is made solely to the parènt charitable compan¢s mèmbers, as a bt¥ty. in accordance with Chapter 3 of Part 16 of the Companies Act 20(￿. Our audit work h35 been undertaken so that we mf8ht state to the parent charitable company's members those matters we are required to state to them in an auditors. rèport and for no other purpose. To the fullest extent permltted by law. we do not accept or a5surne responslbility to anyone other than the parent charitablè company and the parent charltable companvs members as a body, for our audit work, for this report, or for the oplnions we have formed. Alexandra Shore FCA DChA (Senlor Statutory Auditor) For and on behalf of A C Mole LLP Chartered Accountants and Statutory Auditors stafford House Blackbrook Park Avenue Taunton Somerset TAI 2PX Date .... Re8lstered cTrmp8Try number OlfQ8779 16 watvshedArts Trust Lirnited lacThnpany Ilrritted byguaraDleel fte￿rt of Board and ¢omsolKlatednnancièl siatements YearendEd 31 Ma￿h2o14 Consolldatèd statement of financlal actlvltles {IncludlnÉ an Income & expendlture account) Note un￿$t￿cted Resirlrted Total Funds Total Funds Funds Funds 2024 2023 for theyeor ended31 Morch 3024 Income Voluntary Income Donotlons und leqacRÈs Individual giving Donated services Re8vlar grant funding Other tmdlng octlvitles Commercial irading operations Investment Income Rental income Interest receivable 122.950 122.950 36,691 811,984 811,984 812,384 1043,943 2.043,943 LS88,256 198,832 1,303 3.179,012 198,832 198,585 1,303 332 3.179.012 2.636,248 Income Jrom cfvgritqble ¢7Ctivitle5 Earned ineome from cinema activilies Service char8es Other earned income Programme funds 1.042.294 161,413 182.342 1.042.294 161.413 182.342 1,990,019 3.376.068 744,054 161,725 142.790 L406,391 2.454,960 1,990.019 1.990.019 L386.049 Otherincon Capital 8rants Total Income 200,000 6,555.080 5.291.208 4A65.061 1,990.019 Expenditure Costs olroisrnqlunds Fundraisin8 costs Commercial trading operaiions 157,3591 11.475.454) 11,532,813) 157,3591 155,1261 11,475.4541 11,268.2651 11,532,813) 11,323,391) Churitoble uctNfties OperatlDn ol £inema, engagement and reative media projects Donated seNices CIC operation Property management costs Totsi expenditure 12.821.083) 11.990.019) 14.811.102) 14.339.706) 11.2431 11,2431 18131 1128,146 1128,1461 184,1711 14.483.285) 11.990.019) 16A73.3041 15.748,0811 Net Ilossesl on investments Net lexpenditurel before transfers 1428,6001 1346,8241 1428.6001 1346,8241 1456,8731 Tfansfers between funds ILossesl on revaluation of fixed assets 19120 168.075 1451.4001 1168,0751 1451,4001 Net movement in funds 1630.1491 1168.0751 1798,2241 1456,8731 Reconcfflllotlon tsffvnds Total funds brou8ht forward Total funds carrlod forward 8.376.262 7.746.113 1,333.050 1.164.975 9.709,312 10.166,185 8,911,088 9,709.312 19120 The zroup no reccgn15ed 84￿$0r[￿$Ses forthe cvrrenl orpr￿Qu$ year otherthan those Shown Jbove. Re8lsiered cr*ThpanYn￿Mber016081?9 17 W31Èr5￿ArtSTrItstLlMitedI3cornp•ry limited b¥1￿313￿tell Re￿t￿fthe Boardarld con50Ndated financial siatemenis Yearehded31 March 2024 Consolldated cash flow ststem¢nt orthe yeorended 31 Morch 2024 2024 2023 Cash flow5 from opeyatlng actl¥hies Net loutgoln851 Movemènt in deferred tax Depreciatlon of tanglble assets Net losses of investments Change in trade and other debtors Change in stocks Change In trade and other ueditor5 {346,8241 70 229,710 4Z8.600 145.761 11,448) 115.626 1456,8731 187.741 1365,7451 11,4201 72,170 Net 105,269 114,817 Reg￿tered tompanynumbei016fA779 25 Watershed ArtsTtyst Limited13 c(*npBnyhrnMled byguar3￿teel RepNt oltheBoaid andttsnso1￿a￿d fiDancia15Eatements YeartndÈ¢ 31 March 1024 Notes to the finandal slatements {continuedJ Flnanclal actlvltles of the ¢harity Aseparate Statement of Financial Attivities and Inc¢)me and Expendtture Accountforthecharity ha5 not been presented as it has taken advanta8e ofthe exemption afftyded by section 408 of the Companies Act 2006. For the parent charlty net movement in funds forthe year Is a deficit of £981,02012023: deficit of £594,383). Trading subsldlarfs results (Watershed Tradln8 Llmlttdl 2024 Total 2023 Totsl Tumover Cost of sales 2.043.943 IL369?15) 1,588,256 11,214,8531 Gross profit Administration and other costs 674.728 373,403 1106.2391 153,4121 Net Income 568.489 319,991 Gift aid payment to Watershed Arts Trust Llmited Management charge from Water5herl Arts Trust Limited 1158A03) 1226.676) 15.2631 1176,6271 Retained pmflt torthe year Retained profjt brought forward 3/410 218,148 138,101 80,047 Retolned profit rArrled 10ry4ard 401.558 218.148 The asset5 8nd liabilities of the subsidiary were." 2024 Total 2023 Total Fixed assets Current assets C￿dItors.. amounts falling due within one year Provtsions for Ilabilities and charge5 22,183 818.667 1435.6371 13,5551 21,664 452,398 1252.3291 3,4851 Net assets 401,658 218.248 Equlty shareholders, lund5 4101.658 218,248 Registered compBnynumberOIFth779 26 Watersw ArtsTrvsi ￿lted la companylimire¢ byguaranitel epLWt of the BoaTd ano consdidaied finafflci31 stareffl2n15 ¥e3r ended 31 Ntsrch 20Z4 Notes to the financlal statements Icontlnuedj Tradlng subsldlarfs results Iwatershed Ventures CIC} 2024 Total 2023 Total Turnover Cost of sales Gross proflt Administration and other costs 11.2431 18131 Tradlng Ilossl Other income 11.2431 1,006 18131 222 Net Ilossl (2371 15911 Retained profil brought forward 7,194 7,785 Retalned profit tarrled forward 6.957 7.194 The assets and liabilities of the subsidiary were: 2024 Total 2023 Total Current assets C￿ditOrS.. amounts falllng due within one year 59.299 12.3411 58,333 11,1381 Net assets 56,958 57,195 Equlty shareholders, lunds 56.958 57,195 Watèrshed Ventures CIC is exempt trom thè requirements of the Companies Act 2006 relating to the audit of individual accounts by virtue of $479a. Rewllered<￿palry nutnbprOlfthY9 27 wai￿$he0￿rt$T￿st Um*ed la tomparrylimiteLI ￿ZU4{antee) Réwt olihe Boa￿ andc0Th501idatedfinanclal %tstements Ye•rerKled 31 M8rth 2024 Notes to the financlal Statements (¢onti•uedJ All•xation of sUPPOrt tosts The Trust allocates It$ 5UPPOrt costs as shown in the table below and then further apportlons th05e costs between the two charitable aciivities undertaken Isee note 71. Support costs are allocated on a basis consistent with the use of resources. Charitable activitie5 Fundraising costs Governance 2024 2023 Total Support ¢(15t General offire Finance office EMernal audit Professional 5eThices Fundraiser costs 123.263 180,709 2.312 2.387 16,760 51.946 36.878 19.997 142335 235.042 36.878 40,382 51660 119,799 301,459 15,366 57,281 50,97S 20.384 52,660 324.356 57,359 125,581 507,296 544,880 Analysls ol tharFtable expendltu Creative technology and talÈnt development projects Audience Engagement Programme 2024 Total 2023 Total Cinema ScreeninE- dlrect CQSt5 Direct programmelprojecl costs Arts programme management and marketlnB Premises costs General support Costs Governance c05tS DeprecSation 1,246.205 637,941 436519 410,305 259.486 I￿,464 174.635 1246.205 907,814 1,505,797 1,401.439 763.532 761,679 627,337 607,146 324.357 368.952 125.580 120,802 218.294 171,874 867,856 327,013 217,032 64.871 25,116 43,659 Total 3.265,555 1,545547 4AII.102 4.339.706 Included In the above Is restrirted expendituie of £1.990.01912023= £1.396.7171. Re8lstered Compl￿¥￿U￿bI￿OIfAw79 28 Wa¢er5hedArt5Trust Lthiied la company limiied by 8Uar4nleel Re[￿￿ of the Board arKI consolidated fin3nciJl stalerrents Yearended 31 March 2074 Notes to the finan¢ial stalements frontinvedj Staff numbèis and costs The average headcount in the yearfor the group was 11812023- 1141. The full time equivalent average number ol persons employed by Watershed during the year. including directors, analysed by ¢ate80ry, was as follows.. Number of employees 2024 2023 Cultural engagement programme Administration Trading 44 13 27 42 13 23 78 The a8￿￿gate payroll costs of these person5 were as follows: 2024 2023 Group WaRes and salarie5 Social security costs Pension costs 2,674.572 232,739 57,614 2.578.672 231,738 51,760 2.964.925 2.862.170 During the current and prevrous year, the Trustees were not paid any remuneration Of reimbur5e(I for expenses. No Trustees made a donation to the charty in the curfent or prevlous yèar. Key management compensation in total for the year was £95.65012023= £82,868). The key management personnel of the charity comprises the Chief Executive Officer. The emoluments of one member of staff, includin8 benefits in kind, are withln the range of £80,000 to £89,99912023 ￿ne employee within the range of £80.C£Q to £89,9991. Net movement on funds Is stated after char8lng 2024 2023 Auditors, remuneration- audit 5ervice5 (Charity- £I8,C￿l Auditors, rèmur)eration- non audit Services (Charlty: £NIII Depreciation and other amounts writien off tangible fixèd assets Inventories recognised as an expense Operatlng lease payments recognised a5 an expense 20,574 26,979 229,710 1.367.767 10.303 187.741 1.213,433 10,306 Re8iStered compah¥number0I￿877g 29 Waiented ArtsTru5tUmfted lacompany hM(ted￿V￿ra￿tee) REVX[ort￿ 8oarLI ahd consoThdated financial 5taEemernts Yeai ertded JI MaKh 2024 Notes to the finandal statements (¢ondnuedJ io. Taxatlon The company, whlch is a re8lStered charity. is not 1Sable to taxation on the net Income from its primary activitles to the extent that these relate to its charitablè purposes. Tanglble fl¥td assets Head lease Leasehold Furnlture and equlpment Total Group Co5tor valuotlon At beglnning of year la5 restatedl Additions Disposals in the year Revaluation of head lease 3,923.% 3,563.656 107,845 1,537.863 21,579 9,025,019 129,424 I451,4￿} 1451,4CKJI At end of year 3.472.IlJ) 3.671.501 1.559,442 8,703.043 Depre¢lotion At beginning of year13s restated) Charge for year Eliminations on disposals 2,198,332 172,027 1.419,269 57,683 3,617,601 229,710 At end of year Netbook volue At 31 March 2024 2.370359 1,476.952 3,847,311 3,471100 L301.142 82.491 4.855,732 At 31 March 2023 las restetedl 3.923.5 1.365,324 118,594 5,407,418 In March 2007 Watershed purchased the long leasehdd head lease to E & W sheds for its unexpired term of 111 % years. The final price paid was £5.95 million. In 2019no. thetotal value of the head lease was revalued at a market value of £7.650,000. The Trustees instrurted Carter Baynes (Chartered Surveyors) to provide a valuation of the market {faiil value of the head lease at 31 March 2024. The valuation was carried out in accordance with the RICS Valuation Global Standards January 2022 and the UK national supplement I"The Red Book"). The total valuation of the head lease at 31 March 2024 was £6.770.CtWJ, of which £3,472,100 is categorise(I 85 tangible fixed assets (occupied by the charityl and £3.297,9(10 as investment property which is rented to third partles on commercial terms. As set out in Dote 26. the head lease comparative flgures have been restated. eBiStered compwynum*r01608m W•ierthd At15Trust Limited la ¢tynp3ny limited byzuaranieel Rerxytol th2 Board and consolldJted flnantial stsiements Yearend& 31 Mèrch 2024 Notes to the flnanctal statements {contlnuedJ ii. Tanglble flxed assets Icontinued) Head lease Leasehold Imw0￿Ments Fumlture and equlpment Totsl Charfty Cost or voluotion At beginning of year restated) Additions Disposals in the year Revaluation of head lease 3.923,￿K} 3,563,656 107,845 1,395,723 9,644 8,882,879 117,489 1451,4WI 1451,4001 At end ofyear 3.472,1 3,671,501 1,405,367 8,548,968 DeprecFotion At beginning of year Charge for year Elimlnatlon on disposals 2.198.332 172.027 1,298.793 46,267 3A97,125 218,294 At end of year Net book value At 31 March 2024 2.370.359 1,345,060 3,715,419 3.472.IlXI IJOl.141 60.307 4.833.549 At 31 March 202318$ restatedl 3,923,5(X) 1,365,324 96,930 5,385,754 RegiSteiedcompanynumberOJfth779 31 Waier5h2dArtsTrvttLimited lacowry Ilmited byiuarbnteel Rewytofthe Boardand coTrso&dJied financial 51*emen15 YeareThJed 31 Marth 2024 Note5 to the financlal statements fcondnuedj 12. F5xed asset Investmènts Group Charlty 2024 2023 2024 2023 Investment propertie5 Isee below) Investments In subsidiaries (see below) 3,297.9JO 3.726.51)J 3297,900 50.101 3,726,5 50,101 3.297, 3.726.5Tr) 3348,001 3,776.Wl Investmgnt Propertl•s Group Chartty 2023 2024 2023 Balance as at l April Revaluaiion in the year 3,7265lJ) 1428,6CQI 3.726,51XI 3,726,5O) 1428.6001 3,726,5C(I Balance as at 31 March 3.297.9C(I 3.726,5CIJ 3.297,900 3.726,500 Investments In sybsldlarles The above 5hare5 represent equity investments in group undertakings. The company owns 100% of the Issued share capital of Watershed Trading Limited (company reglstration number.. 016216201. a company incorporated in England and Wales. The principal activities of this company are the operation of the cafélbèr, and conference facilities at Watershed. The company owns ICVA of the issued Sha￿ capitsl of Watershed Ventures CIC Icompany registration number= C60970131, a company incorporated in England and Wales. The principal attivities of this company are to promote partiapation by indlviduals, grou￿ and organisations in the creatwe industrles in the South West of England and eisewheTe. 13. Stocks Group Chartty 2024 2023 2024 2023 Finished goods and @￿￿5 for resale 16,653 Regtstered comp3nynumlet0lfl￿Tr9 32 WaiershedArtsTrust Limltel lacompany limited byguafa¢iieèl Rewn of tTr* b￿r￿ and ¢On501Idated financial 514ioments Yearended 31 Maich 2024 Notes to the flnanclal ststements (continuedj 14. Debtors Group 2024 Charlty 2024 2023 2023 Trade debtor5 Prepayments and accrued income other debtors Including tsxation and Social security Amounts owed from Group undertakings 218,994 331.173 8,229 380,118 306,791 17,248 82,331 328.399 8,229 236,305 303.676 17,248 228,729 73.586 558.3% 704,157 647.688 630,815 All debtors are recoverable within one year. Is. Credltors." amounts falllng due wtthln one year Grovp 2024 Charity 2024 2023 2023 Trade creditors Other creditor5 including taxation and social securlty Accruals and deferred income 223.770 230,502 336.058 174.787 212,192 103,790 327.952 76,753 622.544 450.345 551,586 376,981 1,076A16 961,190 867,568 781,686 Other creditors include £124,03412023.' £134,996) owed for other taxes and soclal security. Accruals and deferred income includes accruals of £334,861. deferred income comprising £48,357 of conference dep051t5, £122,601 of property income received in advance. £800 of other Income and £114,817 of grant and project income Inote 21. Deferred rent income, advanced cinema sales. and Conferen￿ deposits as at l April 2023. were fully released in the year. The balance at the year-end wa5= Group Charity Balance as at l Apdl 2023 75,971 15,622 Movement rn deferred income in the year 169,103 188,987 8alance as at 31 March 2024 245.074 204.609 Re8isiered compèn¥numbwOIN187Y9 33 Wate¥5hedArtsTn&st Umited la company thiied by guaranteel Rewt of the 608rdand con50ndated financlal 51aiements Yeai ended31 Ma￿h 2024 Note5 to the flnabKlal statements (continuedj 16 Credltors: amounts fallln8 due aftermorethan one year Gr¢wp Charlty 2024 2023 2023 Other loans 29,69) 29.690 29,69) 29.690 Analysts of loans Wholly rèpayable within Syears 29.690 29.690 29,690 The balance of £29.690 relates to rental depostts bein8 held In respect of tenancies to E & W Sheds. 17 p￿￿s1onS and Ilawlltles Group Deferred tax Olfferences between accumulated depredatson and opltal allowano5 At beginning of year Movement In the year 3,485 70 Defeired tax Ilabillty at end of year 3,555 The charity has no deferred taxation liabilities. Flnanclal InstNments The group and charity hJve the followin8 financial instruments.. Group 2024 Charfty 2024 2023 2023 Financial irTr5trument5 which are debt instruments measured at amortised costs Trade debtors 218,994 380,118 Other debtofs 8229 17.248 82.331 236.305 8.229 17,248 Flnanclal liabilities measurpd at amortised costs Trade creditors Other credltors 223.770 336,058 212,192 327,952 I30￿02 174,787 103.790 76.753 SIÈ￿1 companyNmt*roif￿7l9 34 waiershed ArtsTru5l Lthlted la cornpany limited b¥ guaranleel Report of the Bojrd And tonsdldaiedfinan¢ial staternents Yeai 31 Marrh 2024 Notes to the flnandal ststements (continuedj 19 Unrestrlcted Income lund$ Group Charlty At beginning of year Movement in year before transfers Transfer from restricted funds Inote 201 8,376.262 1798,3241 168,07S 8,150,543 1981.0211 168.075 At end ol year 7.746.013 7,337,597 Restèttd At be8inninB of year: I April 2023 Incomlbva Expendllur2e resour¢os Transfers Other Al end of reco8nlsed Year.. 31 galns and Mar¢h 2024 losses Unrestrl¢ted Incom• funds General fund De5ignqted Funds Brit15h Film Industry Building fund Head leasè fund Capital fund Revalyation reserve (head lease) 693.252 4,565.061 14.483,2851 103,631 878,659 64,444 33.010 5,504,856 709,544 1.435.600 33.010 5,504,856 709.544 555.600 I880,OC￿l 8.376,262 4.565,061 14.483,2851 168,075 1880.(KJOI 7.746.113 Briilsh Fllm Industry Where British Film Industry income is unspent at the year end. the balall￿ is transferred to a designaied lund to ring-fence the unspent balance for the next year. Head Lease Fund The head lease fund1£5,504.8561 represents the head lease purchased via a cap¥tal grant of £6.400.(Krf) prevlded to Watershed by South West Re8ional Development Agency1SWRDAI in March 2007. Capltal Fund Followin8 the re*valuation of the head lease in July 2019 and a chan8e in actouftting treatment. accumulated depretiatlon charges of £709.544 have been written back. A new capital designated fund was set up in 2019120 to rin8.lence this amountfor the purposes ol tapital investment. Revaluation Reser¥e The uplift in the value ol the head lease l£1.435,6(KJl is held in the Revaluation reseNe. This reduced during ihe ye3r tts reflect the movement in fair value in the year. These three funds represent the head lease valuation of £6.770.C(Q and therefore do not form part of the freely available reserves of the Trust. R28i5terEd ￿mpanY numLYrOLfd)8ll9 35 WaterShedArtsTn￿l LirThied 10t0m￿n¥1lMI1ed tysuafantEel Rewrt oftl*Èoanl and consolidated financ￿1 staiemenis YEarended 31 March 2024 Not•5 to the Ilnanclal statemerfs (contlnue 20 Restrlrted funds: Group and Charlty At be8innlng of year: l April I￿orne Expendlture Transfer to unrestrlrted Inwne funds At end of Year.. 31 March 2024 Capltal funds Deferred capital grant Deferred Capital refurbishment grant5 Lottery leasè purchase grant ACE GforA capital 8rant ACE small capttal grant Garfield Weston capitsl grant Other capitsl fvnds 4,796 369.n5 11,6011 1137,462} 3,195 232,263 505295 18.7121 496,583 Z7,689 57.420 97,51KI 12,8001 24.889 57,420 87,500 Iio.(KK)) 210￿25 17,5001 263,125 1.333Th) 1168.0751 1.164,975 Transfer to uniestrtrted income funds is in respect of the annval release to thè WFA in respect ol capilal grants. Suificlent resources are held tts enable eath fund to be applied in accordan¢e with any ￿$trittI0ns. Oeferred capltal grant Grant 5VPPOrt to fund refurbishments undertaken in 21XIII02 has been transferred to deferred capltal grants and is being taken to income over the same perlod of time as the depreoation of the assets funded by the 8rants125 yearsl. Oeferied Capital refurblshmènt 8rants Grantsupportto enable refurbishment of the existing cinemas and the constructlon of new administration spaces, a third clnema screen, an extended cafélbar facility and a new lift has been tranSfer￿d to deferred capltal 8rants nd Is being taken to income overa period of25 years. The work commertced in Detember 2002. Lottery lease purchase grant Lottery Grant support from Art5 Counul England Stabllisation scheme to enable the WaterShe￿S lease PUfchè5e has been transferred to deferred capital grants and is bein8 taken to rn£crfne funds over a period of 79 years to match the unexpired period ol the lease. Garfleld Weston capltal grant Grant support received from the Garfield Weston Foundation towards the costs of phase l of Watershed's propDsed capiial development projert has been ts&n5ferred to delerred capitsl 8rants. Since this project ha5 been elayed. the funds have now been approved for usè in supportln8 the refurbishment of Watershed'5 first floor toilets into a fully inclusive fatility and are ￿Ing tsken to incorne over the same period of timE as the depreciatlon ol the assets it funfls. Other capital fvnds Oonation from an individual Speorical￿ t05UPPOrt Watershed'5 capltal development projÈrt has been transferred to delerred capital grants and will be taken to income over the same period as the depreciation ol the asset5 It will hjnd Orn￿ the capital projert has been undertaken. Gr3nl support from Bristol City Council towards the costs of refurbishing Watershe(fs first floor toilets into a fully inclusNe facility- The funds are being taken to income over the same period as the depreciatlon of the assets li funds. Voluntary Income and prolèctfundinKfrom th•rlt•ble actkryues Donated servltÈ5 and ontroff grants received whith are resiricted by the donors are spent in accordance with the donors. restrictlon5. Revenue Brants receÈved for specific creatNe piojects are tate8orised as income from ¢haritable attivities and the grants are spent in a¢cordance with the dort0r￿ restrictions. Reglsiered comp3nynJmberOI&J8779 36 Wawshed AnsTr￿st Llmiied la company Ilrnfted by8uar3nteel Repcrtof ihtr Board and coTh5Dlidateiffinancial staiernents YE¥rehded 31 Morch 2024 Notes to the flnan¢lal ststements l¢ontlnuedJ 21. Analysisof lund balanos- Kroup Restated 2023 Total Unrestrfrted fvnds RE5trirted funds Z024 Total Fixed assets Investments Net current aSSet5 Long term liabililies Provisions for liabilities and charges 3.690.657 3.297,9(N) 790.701 129,6901 13,5551 1.164.975 4,855,732 3,297,900 790.701 129,6901 13.5551 5,407,418 3,726,SOC) 608,569 129,6901 13,4851 7,746.013 1,164,975 8.911.088 9.709,312 22. Operatlng leases Js a lessee The future minimum lease payments under nOn