Company registration number.. 01608779 Charity registration number.. 284188 Watershed Arts Trust Limited IA company limiled by guarantee) Annual Report 8nd Financial Statements for the Year Ended 31 March 2025 ocm ocmole
Watershed Arts Trust Limited Contents l¢ontinuedl Trustees. Report 1108 Independent Auditors, Report 91012 Con501Klaled Slalemenl of Financial Aclivities 13to14 ConSolated Balance Sheet 15 Balance Sheet 16 Consolidated Statement of Cash Fk)ws 17 Notes to the Financial Statements 181048
Watsrshed Arts Trust Llmlted Trustees. Report Watershed is a values-led cultural organisation centred aiound llema and ¢ative technology. We bring artist5 and audien$ together lo fi up the imaginab.on and buikl hope about the futu. Stratègic Raport The story ol Watetshtsd 15 one of both Kleaksm and pfajmatism." letshed op8n8d its doors in 1982 and decSared itself to be'Bntain's First Media Centre, seeking to Captu and contextU81ise the shift in media al tke point when satellite TV and Channel 4 We startityJ vp. Since Ihose e8rty days in 1982 the organisation ha5 changed and evolved but the original sense of being at Ihe cutbng edge has remained central to our DNA. Watershed Values Our values are Co-autho vnth staft, partner5 and allenCeS aThJ arylied in everythiNJ we do." IncluBive We listen to and learn from our ccffimrty, Cteabng and addressing ham where it occurs Transparent We share our apKwoad) and d83y. wwknng at a pa which enab9 eVerye to participate who wishes to Responsible use our sustainaUe Yh resour a1 consmjer our impacl on future generations Klnd We are calu1 aThJ caiirYJ with rselveS and th otrrs Hopeful We cdebrate cultur8. ueabvity aThY wonder as paths to a better future The pillars of our work Our creatlve Programmt Europe's leading indepent Cinema Cinema RediseA>vered - annual festival bnnging bad( das51c films lo the $cen. Work in progress showcases. talks arwj events around Mlia. tech and ¢)INe innovation Large scale R&0 projecis in Bristol. across Ihe UK and aKrKF the worfd Undershed - one of the workl s Thmefsive galleries Talent d8veloprnent across film and creatNe technokyjy Civlc and Soclal Infrastrueture Welcoming and ar£essible venue Gifted workspace lo over 250 ctealive5 in The P8Th8sNe Mla Sl(hY. Distributor of lottery and Search lunding to crealive ecotogy Stewardship of herrtagtr buildirvJ arml prime city hathursth sp Inclusive facilities open to everyone - fr£ provision of public toilets to t spa Development an¢J knOwd9& sharing for culture sector on indt6ive organisabonal culture This worfK 15 underpinned throu9h highly successful income gene¥ating aclivilieswhich IrUde nts"n9 space to tenants, the delivery ol a high-qLiality events and conferewro servKe a¢vJ a calè bar with a loGglly 50ur¢ed menu which caters to multipk tastes and n8ed¥. Achlev•rn8nt8 and perfornianc• 4.8 million peopl8 Msited us on the web. 318,261 peO[e visited our buiKling. 152.509 peOe bought tickets for our venue SCningS and events. We screened 323 filrn bU8s. over 3.618 scxeeniThJs. 24,1(Kl peop engaged wrth our onltne programme. 46,413 young people erxJaged wrth our progratnrne. 4.457 people eNJaged with prqects beyond the venue. 238 asts aThJ ¢8"Ve5 are resknt in the Pervasive med Studio. 129 Employees at Watershed Pervasive Media Stu¢Jio resentS t8POrted secur&Y research fvThJiNJ in excess of £500K Page 1
Watershed Art8 Trust Limited
Trustee8' Report Icontinuedl
Programmè hl9hll9hts
Cinema
Watershed delivered exptk)nal cinema pr(MJramtnitvJ, finsshiThJ the year 7% ahead ollyJL1get and achieving Significant
year-on-year growth. The venue presented hIgh-prOfi Q&As wth lalenl induding Josh O'connor, Viggo Mortensen.
Kneecap, and Joshua 0ppenIlMe1, Contributing lo Watershed's reputab.on as a leadiro UK independent cifftma.
Notable achievements included being the topferfomiiryJ UK venue for Love Lies Bleeding. Timestalker, Kneecap, and
A Sudden Glimpse lo Oeeper Thing5. Perfect Days ran for an unprece(nted 52 weeks (February 2024-February 20251
with over 8.700 admis&ons and £50k+ gr05s. Tl Chantal AkerM season attracted 1,500+ atteThJees a¢r0s5
months
Cinema Rediscovered achve(I fecord admissions in Juty 2024. bwth overall atiendance up 21Yo and pass sa$ up
40% on the previous year. Famity progranmiThJ induded successfvl runs ol walla & Grornit and My NepJhbour
Totoro.
Fllm Sector Leadershlp
As BFI Filrn Hub South Wesl, Watershed di5tnbuted Film Exhibrtion granis totalling £177,5(H) 10 24 independent
cinemas and festivals. induding Stroud Filrn Festival and Queer Vision Film Fesliv81. The Beyond Boundaries
piogramme supported 14 participants frfym underrepresented (Lynmn1IÈ$.
CrossFAN's UK-WkYe Art ofAcon season ¢oordinate
Watershed Arts Trust Limited Trustees, Report Icontlnued Our 81hicalAlpolicy sl8fes we wllbe transparFnt aboul ourusg olAI. The pmgramme hwhlights were author6d usng C18ude.Ai to summanse exffshng Watershed d£wments. Report on 2024- 2026 Organlsatlonal Prforltl•s Bu8ine$¥ planning We began working wth M(Mra Sindairto¢Jevelop a J$ineSS andcase for support forWater5hed- rtssponding to the challenge of the ts"ffl&s. Watershed Wild and Generous Watershed secured Heiitage Lottery Fvnding to undertake feasrtTrility for Watershecs and G8rTrerotts. indudiTVJ a condition report on the building to fvlty scope the scale ol refvrbishment and retrofit that is needed lo ensure il is fit for the next 100 years. Vve recruited Iwo diie¢lors of Reger*iats"ve Futuie5 lo oversee this work and begin plannirwJ and fundraising for the bvJger project. Dgllver new clnema and audience development strat•gy We delive a new Cinema strategy den Io I[a58 audk?rw and wofitability. Undernhed We18unched Undershed - a new Immersive GaIry in Autumn 2024 and began prIurirfj a new natK)nal networff of immersive venue5. Finance Systems After a competitive and thorougfr prcws, $eled and CA)nlracted Xledgef as Wdtersh8d's new finanrx sysiern to improve efficncY and business rerM)rtirvJ. Looklng ahead: 25-26 Organisationol prlorltles Programrne- Develop comprehensive cross organisabonal programme for the ol H¢yne125-261 and Sound126-271 to encourage cross pollination and supports fundraising. Launch Club Shed member5hp stheme to grow mailiTh) list and freqLEncy ol visits Link Undershed much rnore cjearfy lo Watershed creatwe technology programme Wild and Generous - delivei plan and fundr8i%ng approach. to leverage our heritage. meet our values and respond to the changing opportunites of our business. Development - Launch CorFK)rate Membership sd)en Finance- Implement new finance softwa Rlsk Management Effective nsk managemenl is ¢tal to Watefsh8d 1hriTr) in Ihe thaTh)eab environrnent in whKh it operates. Watershed's risk rnanagernent strategy ensures that the organisation can". Maintsin a ies11ient. fflebIe. aThJ wable 0ra"0. Mak8 C8lcula¢ed investrnenls in new and speculative areas vrillK)ut underni1n1 the Coheren and sustainability of the ofganisalion. Watershed's risk register identifie5 the key areas of risk the business faces. assesses the indicators, likelihood and impact ol those risks an($ identifies the actions u$re(l in order to ale them should they ari58. The risk registeris created and regularfy reVieEd bythe Board and thè Ex8cuiNe ieam. Watershed's risk tnanagement Strategy involves maintainitvJ" ProTrdures to ensure 8arly detection ol xlenb"fi&J and ernergent risks. Regular rnlIOr1n9 of key perf0ffnan indicators across the ofgani581ion Procedures to effectsvety mitBJate Klentified Itsks. Procedu$ to minimise Ihe impacl on the organisats.on slK)ukl Klentifi&Y nsks materialise. Prlncipal risks and uncertalntles Waler5hed'5 assessment ol nsk has been revWed in IKJht of Ihe conlinuing thamenging afcUmStsn and the key risks facing Ihe company have been identified as.. Buslness Model Trend anatysis and historic data cannot be relied upon as pattems are changing. Increases in salary costs. servi5 and purchasing aFKI utiliti8S. Page 3
Watershed Arts Trust Limited Tru¥tees' Report {¢ontinuedl Public fuThJitYJ not increasing year on year lo match inflatiM. Fundraising- Trusls and FouryJatiOnS are 04rSubsbed aThJ closiThJ their applicab'ons. Building and Systems Systems infrastruclure with unrellae and unsupported acy systems impacting 0ratIonal efficiency. Financial reporting and plannitvJ failing to rneel organ15atL)nal need, due lo pool financial systems and controls Fall behind wlh cfitiC81 buikjing WO or fixed asset rea¢ement Caur0 Farilth"eslequipment to be no longer fit for purp)$e meel customer expe¢tstK)ns. For each ofthese risks. Watershed has tn Pl indicators 8Th1 mitigatir¥J adws to monii(x. avcmd, rnib.gale or transfer the impa¢t of it5 principal risks and un(xrt8in"es. TfE Twstees consmlei thal adeouate cA)ntrols are in Pla lo miligale the key risks identifd in rts nsk register. Development (Fundraising) Vvalershed is corntnitted to the hvJhe5t fundraising standards and lve$ tt)al it is important that all our fundraising activib.es are ¢Lear, open, honesl. respeclful. and complAnl. Watershed is registered with the Fundraising Regulator. We comrnit to rts Fundralsiro Prcmi5e and follow its Code of Fundraising Pra¢tice Wateished raise hjnds wa Mu1"p fundrais1r aetiwties, induding postal and dyital appeals, event5 8nd fundraisin9 that has been organised by others our tehalf. We ensure CPIlan YAth these standard5 by.. Our Head of Development ensu$ Ihat an those eNJaging in fiJThlrai5iryJ forwatershed are aware ofth8 Code ol Fundraising Practice and any urAlate5. Fundraising Is conducted in line wrth wr Fundraising Pdtcy and supporters can raise an ISSLÈ or complain about our lundraising tM5 as outlineL1 in our Fundraising Feedback. Compliments and Complaints Policy. Fundr2isiry complainls are rnonrto¥ed. recorded. and ieported annualty to the Fundraising Re9ulator by the Head of Oevelopmenl There were no C(xn81nts or concem5 reNed during the year. We value all our donors, no malter whal they th)nate. will treal thetn fairfy and wrth respect as well as being accountable foi Ihe resources given lo us. We will not futKJraise In a way which is an unreasonable intrusion on a rSon'S priva¢y. is unr88sonably persislenl or pla5 undue pressvre on a r50 to donate. We will consider the needs of any pOs9b ¢Yonor who may in vulnerable ¢ir¢umsl8nces or nee(1 extra care and svpport lo make an tnforn deuSIL ar¥J w411 nol take a dona"on ilwe beIve this is appropriate. Finantlal revlew Overview The con501idated results set out on pa9e 13 show a Ikftit of £191.647, for Ihe yeai12024. defiut of £798.2241. The defiat on unrestricted funds for the year lotalled £44.45912024 defiul of £630.1491. Before transfers teiween lun¢ls. Watershed 5h(yAed an UnreStrted defit of £191.647 reflecting the challenging operating and tiadiNJ coYlitions the year. unrestrict incorne (excluding income trom restricted programme funds) was £4.90 million durif¥J the year and UnIn'eted expelldire lexduding prograrntne c05tsl was £5.10 million. Subsidlary Company Results The chaiity's wholly owned subsith"ary. Wateh¢d Trading Limited. conb"n(d lo operate Watetshed's cafélbar and conference faulities. In a norrnal year. these 8ctivitEs provide a Valuab inc(Mne stream tts support the ¢hariiable activits ol the Arts Trust and lom a key part of the Watershed offer. provvjing a welc(xning. orn and indusive meeb.ng pla for all lo enjoy. W81ershed Trading Mited generated a profit before tax and donats.ons of £250.703 12024 profit of £341.8131. Donations of £393.029 were made through grft aKI to the Chaity. based upon the pKevityJs year's trading 12024.. £158,403). The two main sovrces of inccme generation for Ihe Trading Company a.. Cafélbar food and Iw4uor sales generated £1.838.512 12024.. £1.451.4571 Conference sales generaled £336.13712024". £572.2581 Page 4
Watershed Arts Trust Limite<l Tru$tge¥' Report Icontrnuedl The charity's wholly owned subsidiary. Watershed Ventuies CIC, did not carry out any activity in the current 01 pievious year. In the year, Watershed Ventures CIC made no donab"ons12024 £nill through gift a5d to the Charity and generated a profit befotè tax £1,13212024'. loss 01 £2371 aThJ lotsl revenue of £rlI2024". £nill No activity was uridertaken by Watershed VentUS CIC in 2024125. On 12 August 2025. Watetshed Ventures CIC ceased to trade and the compary was dissofved. Flnanclal monitoring and control Watershed's financial syslerns enable earfy detecbon ol pK)tenlial problems all(rMng actions to be taken to mitigat8 any likely impact in a ts'mely manner, induding". A careful arKI PaKl8llt budgehng prctess to ensure that finTha1 targets linrnme and ¢0sts1 are all$tI¢ and aChVable. Production of management accounts to assess overall Group p8rft)rmanee against budget. Weekly and monthly sale5 f8SK)rts ensure that progress against sales largels is kept in close check FoL¥J and liquor sales margins a tracked weekly and a verified by a monthly stod( take. Financial perfomiance is rewewed regularly by Watetshed's Executive team and quartedy by Wat8rsh8d's Finance Sub-Group aThJ Board. The application of restricted fvnds 1$ Ca[Ulty monitored thh irKlt¥idual profit and loss accounts relating to each fund. This ensvres Ihe correct apat1 ol restricted programme hJThJs and maintains actiwties within the bge1 parameters seL Cash fiow 15 trad(ed through a rolling annual fcecast eWed aTrY ur#ja on a weekly ba$. Watershed's income porttolio irhdude$'. Programme Funds Programme luncls ceiVed Ihrough partnership agreemenls. restricted proiect grants and contracts for servi5 account 34% of Watershed's incorne in 24125 lup from 30% in 20231241. Builiying relationships with key funders an¢J partners is vitsl to growth. allowing Watershed to increase acbwty and invest in developing new. exriting initiatsves. In 2024r25 programme funds totalled £2.37 million12023124.. £1.99 tnillsonl. Printspal luThJing partners in the yearinclud8d the University ol tr West of EnglaThY IUWEI. Univers¢ty of Bris10l IUOBI. Arts Council England IACEI, 8rits.sh Fi 5nstituie IBFII and Wtrst of ErKJland Combined Authority CAI. Unrestricted Grants Watershed ieceives regular fu11rJ Irom Arts cou1 EThJlaThJ las a National PortfolK) Organisationl and Bii5tol Cty Counol. Although these funds a¢Unt for a retstively small portion of Gr(xJp lurnover1IOYtsl they fottn a vital part of Watershed's income portfolio en8bliTrJ the organisats.on to plan for the futute and deliver an exwtronal cultural offer. General Fundraising In the 2024125 financial yearwatershed Secu £151.825 {2024_" £122.9501 frorn fvndraising through indmdual 9iving and private 5ponsorsh5P. Commercial sale5 - Calélbar and Conference Sales generated by Watershed's trading subsKlrary through ib cafèfvar aThJ Conferen operations COUnt for 30% 01 Group turnover in 2023r24, cc¥npared to 31% in 2023r24. Cinerna sales Cinema ti¢*et sales accounted for 15% ol Group tuwrM)ver in 2024125. cLMnpared to 16% of Group tumover in 2024r25. Property Incom• Rental Income rer2ived from VVatershe(fs h88d lease ten3nc$ conb.nue to be applied to the chantable objectives of the Arts Trust. The pioperty incoffle in lh8 yearwds 3% ofthe group tumover lor 202412513% 20241251. Ros•rves pollcy Watershed's Resetves Policy is vIeWed annualty by ttustees. Oyervlew Watershed's res8rv8s policy en5u¥e5 that W8 remain 5V5tainalA8. hav8 lh8 capaaty to tnibgate finanaal challenges and the ability to invest in ils future. Page 5
Watershed Arts Trust Limlted Tru5tees' Report Icontinuedl In establishing the level of resetves appfopllate to its burs. waletshl has consider8d.. income and expenditure leve& in the current and future years the obligations and operafronal requirements of the Charity and Group the future develoKThent S of the organisati Reserves Watershed reserves are split into tl following fvn(Ss." General Fund The General Fund ensures that Watershed has the fvnds to meet its oblwJ8tions as they fall due in the event of a loss of income or the need to close. Our general selveS target is 3 rnonths of Group operating cos15. which 8mounls lo £1 26rn in 2025. As of March 31. 2025. Watershed's GetEral Fund slocMI al £898.554. 8y If end of 2025126. General Fund Reserves are estimated to incfease to £1.493K. well above the target. However, if W81ershed was to cease curfenl rats"Ons the Twstee5 wll seek to realize the value ol our real est8te 85sets mindful of our oblwJatons lo tenants and seatre the best available opb'ons to discharge Watetshed'5 liability for ongoing ¢osl$ for the bvil¢ing in the short and long letrn and meet ovr oblmjations to staff and suppliers. The trustees are confKlent that in the evenl that Watershed had to up its bvsiness. the option of sellitvJ the WaleF5hed bjilding could generate sufficient funds to settle outstanding debts. In the event of an enforced closur8. recent parndern experien$ $u99est th3t approxitnatety 50% of business operatH)ns could continue, allowing the General Fund lo support the bu*ness for abt 10 month5. Designatsd Funds Watershed 8150 holds several designalecs fuThJs whth are estatAi5hed io ri-fen surpluses attributable to bming diffenS in a8$ of project acts.vity supported by srecif -Off programme funds. As al 31 March 2025. Wdtershed's reserves comprise.: General fund £ 898.554 Building fund £ 33.010 Total £ 931.S64 "Note- net current a558ts availatAe at 31 March 2025 sta1 at £709,653. Following the revaluation of the head kase in July 2019. armulated depieciatk)n charges have been wrillen back. A new capitsl designated fund was set up In 2019r20 to rlThg-fen this amount for the purposes of capitsl investment. The new head1885e valuation of £6.770.0(kn"s repented as". Head lease designated fund Capital designated fund Rev8lu8tion reserv Total £5.504.856 £ 709.544 £ 555.6(M) £6.770,0 These present a tangible fixed 855et from whh wateh orerales, wlw.ch are fundamental to the delivery of the business plan. They are therefore not included in Watershed s Unstricted resetves. Structure. governance and management W8tershed is structured as a group ol Iwo companies, the p8rent IpanY Watershe(l Arts Trust Limited and tr40 wholly owned subsidiarie5, Watershed Tr8dIr Limited. Vvalershed Venluie5 CIC was closed after the year end as It had not been actsve for sc¥ne ts"me. Thè Arts TIu5t delivers the re programme, Watershed Trading Ltd manages hosprtalily. Watershed's govemance structure rellects and supports Ihe Gr0p struclure and ils organisational core values, culture and needs. It provKJes the management paCity and expertise to deliverwatershed's overall aims and objectwes. The Board of Trustees, whth govern5 the Charity. meets four b.mes a year. Prioi io appointment new members are f8miliarised with Watershed's memorandum and atbde5 of assoaation. business r4an and retsnt financial perfOr[nan Watershed's Board of Trustees are volvnteers aThJ recewe no remuneration. Walersheé's Execulive group, cotnprising lour senior managers. port to Chief Execub've OffKxr. Execub"ve Team meet weekly. joined by the Senior Managernent Team every fortnKJhl. The Executive Team take responsibility for strategy and overall perforrnance whilst senDr managers lake responsibility for th8 day-to-day operations. The 8o&rd review and approve changes to key management's remuneration. Page 6
Watershed Apts Trust Limited Tru$tees' Report Icontinuedl Statèmènt of Tru5tees' respon3ib41itles The Iru5tee$, who a also director5 ofWai8rshed Arts Twst Limrted forthe purposes ofccmpany law, a sponsible for preparing the Trustee5' Report lincorporabng the strategic report) and the finanoal statement5 in accordance wth applicable law and United [Jd0M A¢covnliru) Standards, ind11 Finanrxal Reporting Standard 1Q2". The Financial Reportsng Standard applicable in the UK and Rewbhc of Ireland (United KingdLNn Generally Accepted Accounlirg Pra¢b.l_ Company law r8quires the trustees to prepa fina¥Kial statements for each finanaal yeaf which give a true and fair view of the stale ol affairs of the chantabje company and ol the incorne and expendrture. ol the tharitsble group for that period. In preparing these finanaal statements, thè tWStees a required to-. select suitabk accounting poliae5 and then appty them consistenty". observe the method5 and princip$ in the charits SORP.. m8ke judgments and accounting estsmate5 that are reasonabk and prudent". State whether applicabk UK Accounb'ng S¢andarOs bave been followed. subject to any material departures disclosed and explained in the finanaal statements. and prepare the financial staternents on the 90iNJ COnM basis unth il is inappropriate to presuffl8 that th8 charitable comp8ny will conlinue in busines5. The tiustee5 are responsible lor maintaining proper accoun"n9 records which dsdose wth reasonab accuracy at any tirne the finanrial posits.on ol the chantable ¢(Mnpany and enabk thern to ensure that the financial ststemenls cornply with the Companies Acl 2(. They are also iespoftsibfe for safeguarding the assets tsf the charitable company and trE group and h8nce for tsking reasonable steps ft)r the prevention and detection of fraud and other irregularities. Page 7
Waternh¢d Art• Trnst Lirnbl¢d Trustees. Repori Iconlin¢dl Roforonce and admlnlstrative deialls Walershed Arts Trust Limrtedwas Incorroiatod as a cL¥wryy Ivntsj by guaianieè on 19 January 198? The cx)mpany was registeiedwilh Ihe Charity commission on 18March 1992 Thewholy owned subsK1iary Watershed Trading Lmited was Incorpoialed on 12 Maich 1982. Waleished Venltsres CIC Iweviou5ty Ished Clclwas cOrPorated on 12 FebFuary 2007 The IThember5 01 Ihe Ooaid of Tru5tee5 who serve(¢ dumj the ytsw aThJ posi year 8t)d •thJ who cMslilLriO di1&¢1$ lor Compans Aci purposes ate IK%ied behiw Trustees spW {Cha¥} aprA)Inte(J 27" MaJch'?4 Kale ArthuJs {Secieta(yi Slwriè Eugene Hart Sidharth Shamia Lo Chai%)Iie Lesfrr Ltyjtse Dames. arwnted 18June'25 gashir Norm. apwinted 18 JLknE Dan13 Jenk. 4)ptynied 1V Jur'25 Trustee rÈ$iwaiions Lwse ¢JoCoffdova. res¥Jrd I Ocicr ?d James Touzel. $Je 4Tr Oecember"24 Tuttle. leswa 8" FelMuary'25 Pary5 GBrdetr testy3d 10. December"25 Secretary Chief Execuli¥e Olltht Charity nutnbeT Company nurllbei Regisiered Otfte Audiiors Kale Arthurs Clare R8d(Sir¥Jron 2841P 01608779 1 Canon s Ripad. HarbwwJ8. Brisld. eSI 5TX AC Mole. siaifwd House &arDrwk Part Ave. Tavnn TAI 2PX HSBC Baiik 67 George Slieei. Cats)I Circu5. Bn51. BS1 3BA TLT LLP l Redclrfl Slreel. Bn5101 BSI 6YP Bartkers solic0 Ol#¢lo$urn ol inlonnatlon io audiiors The Trustees ¥vho hekl Offi al the da awioval of this Board of Tiustses. report confiim Ihal 50 far a$ try are ach awaie. Ihewe Is no ievani audil Information ol which Ihe chariioble Company s audiiors kre una%YarÈ. and each Trustee ha5 iaken all the steps Ihat they oughl 10 have ken as a Trustee lo make Ihemselves awaie ol any relevant audit infomaiion and lo e51ablL5h Ihal thatiiable Ccthpany s audrtors are aware olthai Inlormai 8y order DI Ihe S Gattiekj Chail of Ihe BoaFL¢ 1 CanDn s Road 8r15tol BS1 STX I SM 21)11) Pw8
Watershed Arts Trust Limited Independent Auditorfs Report to the Members of Watershed Arts Trust Limited Opinion We have audited Ihe fina481 stalements of Watershed Arts Trust Limited Ilhe 'charilable parent company'l and ils subsidiaries (the 'group'l for ihe year ended 31 March 2025, which comprise the Consolidated Sialemenl of Financial Activities, Consolidated Balance Sheet. Balance Sheet, Consolidated Statement of Cash Flows and Noles lo the Financial Sialemenls, including a summary of significant accounting policies. The financial reporting framewolk that ha5 been applied in their preparation is United Kingdom Accounting Standards, comprising Chaiilies SORP - FRS 102 'The Financi81 Reporting Standard applicable in the UK and Republic of Iland. and applicable law (United Kingdom Generally Accepted Accounting Practice}. In our opinion the financial slalemenls.. give a true and fair view of the slate of the group's and charitable parent companls affairs as al 31 March 2025 and of ils incoming resources and applicalw)r) of resources, including lis income and expenditure, for Ihe year then ended.. have been property prepared in accordan with United Kingdom GeneTally Accepted Accounting Praclice", and have been prepar in accordance wih the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance wlh Inleinalion31 Standards on Aurlitin9 IUKI IISAS {UKII and applicable law. Our responsibilities under those standards are furthei described in the auditor responsibilities lor the audit of the financial slalemenls section ol our report. We are independent of the group in accordance wilh the ethical requiiemenls that are relevant lo our audit of Ihe financial statements in the UK. including the FRC'S Ethical Standard, and we have fUilled our other ethical fesponsibili(ies in accordance th these requ1MentS. We believe that the audit evidence we have obtained is sufficient and appropriate lo provKle a basis foi our opinion. Conclusions relating to going Concern In auditing the financial slalements. we have concluded Ihal the truslees use of the going concefn basis of accounting in the preparation of the financial ststements is appropriate. Based on the work we have performed. we have not idenlified any material uncertaintie5 relating lo events or conditions that, Individual or collectwely, may cast signifan1 doubl on the group's or charitable parent company's ability lo continue as a going concern foi a period of al least twelve months Irom when the original financial slalements were authorised for issue. Our responsibilities and the responsi.1111es of the Iruslees with respect to going ¢on¢em are described in the relevant seCtnS of this report. Other infomiation The trustees are responsible for the other infomalion. The other information comprises the information included in the annual report, other than the financial statemenls and our auditor's report Ihereon. Our opinion on the financial stalements does not cover the other information and. except lo the extent otherwise explttlY staled in our report, we do not express any fomi of assurance conclusion Ihe¥eon. In conneclw)n wlh our audit of the financial statements, our responsibility is to read the other information and, in doing so, considef whether the other information is materially inconsislenl with the financial statements or our knowledge obtained in the audrt or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material mi5slalements, we are required to delermine whether there is a material mssstatement in the financial 51alements or a material misslalement of the other information. If. based on the work we have performed, we conclude that there is a material misslalemenl of this other information, we ale required lo report that fact. Page 9
Watershed Arts Trust Llmited Independent Auditorfs Report to the Members ofwatershed Art$ Trust Limited (continued We have nothing lo report in this regard. Opinion on other matter prescribed by the Companies Act 2006 In our opinion, based on the wofk undertaken in the course of the audf(.' the information given in the Trustees. Annual Report which includes the Tru51ees' Report and the Slialegic Report for the financial year for which the financial statements are prepared is consistent with the financial slalements., and the Trustees. Report lin¢orporalin9 the slialegic rewrt) has t)een prepared in accordance with applicable legal requirements. Matters on which we are required to port by exception In the light Of our knowledge and understanding of the group and the parent charitable company and ils enviionmenl obtained in the course of the audii. we have not identifd material missiatements in the Iruslees, Teport lincorporaling Ihe strategic report). We have nothing lo report in respect of the following matters where the Companies Act 2006 requires us lo ieport lo you if, in our opinion.. adequate accounting records have not been kept by the parent charitable company. or ielurns adequate for our audit have not been weNed from branches not visited by us.. or the parent charilable company financial slalernenls are not in agreement wlh the accounting records and returns". or certain disclosure5 of Iruslees remuneration specified by are not made", or we have not received all the informatK>n and explanalions we require for our audit. Responsibilities of trustees As explained more fully in Ihe Statemenl of Tiuslees, responsibilities the Iruslees are responsible lor the preparation of the linancial slalemenls and for being satisfied that they give a true and fair view, and for su¢h internal conliol as the Iruslees determine is necessary to enable the preparation of financial slalemenls that are free from material misstalement. whelhei due lo fraud oi error. In preparing the financial statements. the trustees are responsible for assessing the group 8nd charitable companls abilily to ¢onlinue as a going concern, disclosing, as applicable. matters rèlated lo going concern and using the going conrn basis of accounting unless the trustees either intend lo liquidate the group and charitable company's or lo cease operations, or have no realistic allernalive bul lo do so. Auditor responsibilities for the audit of the financial statements Our Objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misslalemenl, whether due to fraud or errol, and to Issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in a¢cordan¢e wth ISAS {UKI will afvlays delecl a material missiatemenl when il exists. Misslalemenls can arise fr(yn fraud or erfor and are considered material if, individually or in the aggregate. they could reasonably be expected lo influence the economic decisions ol users taken on the basis of these financial stalemenl5. The exlenl to which Dur procedures are capable of delecling irtegularilies. including fraud is detailed below.. Page 10
Watershed Arts Trust Limited Independent Auditor's Report to the Members of Watershed Arts Trust Limited (¢ontinued} Identifying and assgssing potential risks of material misstatement due to irregularitie5 We consider the following when identifying and assessing risks of material misslalemenl due lo irregularilies, including fraud and non-¢omplk3nce wlh laws and 9latiOns". • the legal and regulatory framework in whKh the chaftiable parent company and group operate the nature of the sector in which the charitable parent company and group operate the control environment and controls established lo miligale such risks the results of our enquiries of management about their identification and assessment of risks of irregularities. . discussion5 with the audit engagement team about where fraud Tnighl occur The incentive lor fraud Laws and iegulalions which are considered to be significant to the charitable parent company and group include those relating lo the requirements of financial pOrting framework FRS102, the Charities Act 2011. the Companies Act 2006, UK tax legislation. employment law and health and safely. In addition, we consider other law5 and regulation which may not diieclly impact the financial statements bul may impact on the operation of the charrtable parent company or group. In accordance with International Auditing Standards we conchjded that a risk in relation lo the potential foi management overrtde of controls existed. Audlt reyponse to risks Identified- We undertook audit Pr<edureS to respond to the risks identified, and designed our audit lesling lo respond lo these risks. The additional procedures we undertook included the following. Gaining an understanding of the chafilable parent company and group's piocedures for ensuring compliance with laws and regulations • lesling the appropriateness of journal entrtes and other adjuslmenls considering whether accounting eslimales were indicalive of potential bias considering whether any transactions arose outside the nomial course of business. m8king enquiries of management corroborating our enquires through review of Board minutes and coriespondence We also communicated relevant laws and regulalh)ns and potential fraud risks lo all engagement team members and remained alert lo any indicators of fTaud or non-compliance with laws and regulations throughout the audit. A further description of our responsibilities is available on the Financial Reporting Councifs website al.. vdww.frc.org.uklaudilorsresponsibilities This description foms part of our audrtorfs report. Use of our report This report Is made solety lo the charitable parent company's truStS, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate lo the trustees those mallers we are required to stale lo them in an auditor's report and for no other purpose. To the lullesl extent pem)i(te(I by law, we do not accept or assume re5ponsibilily lo anyone other than the charitable parenl crynpany and its Iruslees as a body, for our audit work, for this report, or for the opinions we have fom)ed. Page 11
Watershed Arts Trust Limited Independent Auditor's Report to the Members of Watershed Arts Trust Limited (continued) Alexandra Shore FCA DChA Isenior Statuiory Auditor) For and on behalf of A C Mole LLP. Statuiory Audilor Slafford House Blackbrook Park Avenue Taunton TA12PX Page 12
Watershed Arts Trust Limited Consolidated Statement of Financial Activities for the Year Ended 31 March 2025 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unr¢stfiCted funds Restricted tunds Total 2025 Note Income Donations and legacies Other trading activities Inveslmenl income Charitable activities 900,349 2.162.507 213,251 1.630,405 20.180 920,529 2,162.507 213,251 4,196,372 2,565,967 Total income 4,9(,512 2.586,147 7.492,659 Expanditure Raising funds Charitable aclivilies {1.745,516) 3,352.643 {1,745,5161 5,938,790 10 2,586.147 Totsl expenditure 15,098,159) {2,586.147} 17.684,3061 Nel expenditure Transfers between funds 1191.647} 147,098 1191,6471 147.098 Net movement in funds (44.549) 1147,0981 (191,6471 Reconclllatlon of funds Total funds brought fornard 7.746.113 1.164,975 8,911,088 Total funds carried loard 26 7.701,564 1,017,877 8,719,441 The notes on pages 18 10 48 form an integral part of these financial stalemenls. Page 13
Watershed Arts Trust Limited Consolidated Statement of Financial Activities for the Year Ended 31 March 2025 {continuedl {Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrèstricted funds Restricted fund5 Total 2024 Note Income Donations and legacie5 Other trading activities Investment income Charitable acliwlies 934,934 2.043.943 200,135 1.386.049 934,934 2,043,943 200,135 3,376,068 1.990,019 Tot81 income 4.565.061 1,990,019 6,555,080 Expenditure Raising funds Charitable activities 11.532.813) {2,950,4721 11,532,813} 4.940,491 10 {1.990.019 Total expendilure Nel Ilossesl on investments {4,483.285) 1428.600 {1,990.0191 16.473.304} 428.6001 Nel lexpenditurel before transfers Transfers between funds 1346.824) 168.075 1346.8241 1168,075) Other recognised gains and losses (Losses) on revaluation of fixed assets 1451,400} 451,400 Nel movement in funds 1630,1491 1168,0751 1798,2241 Reconciliation of funds Total funds brou9hl forward Total funds ca¥ried fOard 8.376.262 1.333,050 9,709,312 26 7.746, 113 1,164,975 8,911,088 The notes on pages 18 10 48 fomi an integral part of these financial stalemenls. Page 14
Watershed Art$ Trust Limited (Registration number- 01608779) Balan¢• Sheet as at 31 March 2025 202S 2024 Note Fixed ass•ts Tangible assets Investments 15 16 4 726.087 3.348.001 4.833.549 3.348.001 8.074.088 8.181.SSO Cuwr•nt as80ts Debtors Cash at bank and in hand 18 932,308 517.244 647,688 570.593 1.449.552 1.218,281 Credltors= Amounts falllng due withln one year Not currenl assets 19 1.040.516 867.568 409.036 350,713 Total as$•ts lèss cuTh8nt IIBblllUes 8.483.124 8.532.263 Crodltorn: Amounts fallin9 dug •ft¢r morn than on• year 20 Net a$$ots 29.690 29.690 8.453,434 8,502.573 Unrestrlcted lunds Unreslri¢leil lund5 B[s'Sh Film Industry designated tunds Building fund Head lease unrestricied designaleil fund Capital unrestricted designated fund RevaluatM)n reserve (head lease) 632.547 470.144 64.444 33.010 5,504.856 709.544 555,600 33.010 5.504.856 709.544 555.60D Restrlctgd IxIS Restricted capital funds 1.017.877 1.164,975 Total fund$ 8.453.434 8.502.573 The fina tatemenls on page5 13 10 48 [e apwoved by the Iwslees. and authori5ed for tss and 86gned on their behall by. Slephen Gaffiekj Chaii of the Board The ntstÈ5 on pages 18 to 48 fo an inte9ral part of Ihese financial staternenls. Page 16
Watershed Arts Trust Limited IRegi5tration number: 016087791 Consolidated Balance Sheet as at 31 March 202S 2025 2024 Note Fixed assets Tangible assets Inveslmenls 4.746.447 3.297.900 4.855.732 3.297.0 18 8.044.347 8.153.632 Cunent assets Slock5 Debtor5 Cash at bank and Jn hand 17 18 22.809 857.171 1.270.227 18.101 558.396 1.291.020 .950.207 1.867.517 Credilors: Amount5 falling dug wlthln one year 19 1.240.554 1.076.816 Net current asset5 709.653 790.701 Total assets less current Irabilrli•s 8.754,OC 8.944.333 Cr8dilor5= Arnounts falling due after rnore than one ytèr 20 23 129.6901 129.6901 Provi$lon$ 14,869 3.555 Net a5set$ 8.719.d41 8,911,088 Unrestricted funds Unresiricled funds BTrli5h Film Industry deslgnaled lund 8uilding lund Head lease UnStrICted de$Jnated lund Capi131 unrestricled deswJnaled lund5 Revalualton reserve Ihead aSe) 898.554 878.659 64.444 33.010 S.$04.856 709.544 555,600 33.010 5,504.856 709.S44 555.600 R#$lricted fvnds Reslncled capital fu1$ 1.017.877 1, 164.975 Tolal fund¥ 26 8.719.441 8.911.088 The fina on/< I statements on pages 13 10 48 *re apwoved by Ihe trustee$. and authorised for 155ue and signed on their beh31f by" Stephen Gaifield Chair of ihe 8oard The notes on page5 18 10 48 lorm an integral part of these ffinanck21 slatement5. Page 15
Watershed Arts Trusl Limited Consolidated Statement of Cash Flows for the Year Ended 31 March 2025 2025 2024 Note Cash flows from operating activities Net expenditure {191.647) 1346,8241 Adjustments to cash flows from non-cash items Depreciation Investment income Revaluation of investments 15 225.939 1213,2511 229,710 {200,135) 428,600 (178.9591 111,351 Working capital adjustments Increase in stocks Ilncreaselldecrease in debtors Increase in creditors Increase in provisions 17 18 19 23 14.7081 (98.775} 163,738 1.314 (1,4481 145,761 115.626 70 Nel cash flows fr(¥n operating activities {117.390 371,360 Cash flows from investing activities Interest receivable and similar income Purchase of tangible fixed assels Net cash flows fiom investing acliwlies Nel Ideereaselhncrease in cash and cash equNalenls Cash and cash equivalents at 1 April Cash and cash equivalents al 31 March 213.251 116,654} 200,135 {129.424} 15 96,597 70.711 120,7931 1,291.020 442,071 848,949 1,270.227 1,291,020 The notes on pages 18 to 48 fonn an inlegial part of these financial stalemenls. Page 17
Watershed Arts Trust Limited Notes to the Financial Statements for Ihe Year Ended 31 March 2025 1 Charity status The charity is limited by guarantee, inCorpated in England and Wales. and consequently does not have share capital. Each of the trustees is liable lo Gonlribule an amount not exceeding £1 towards the assets of the char1ty in the event of liquidalh)n. The address of ils Tegislered office is". 1 Canon's Road H8rbourside Bfislol BS1 5TX 2 Accounting policies Summary of significant accounting policies and key accounting estimates The principal accounting p)licies applEd in the preparation of these financial slalemenls are set out below. These policies have been conslstently applied lo all Ihe year5 presented, unless otherwise staled. Statement of compliance The financial statements have been prepared under the historical cost convention with items recognised al cost or transaction value unless staled otherwise within these notes. The financial slalemenls have been prepared in accordance wlh Accounting and Reporting by Charities.. Slalemenl ol Recommended Practice (applicable to charrties preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republ ol Ireland IFRS 102)) (issued in October 20191 Icharities SORP IFRS 1021}, the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 1021 and Ihe Companies Act 2006. Watershed Arts Trusl Limited meets the definition of a publi¢ benefil entity under FRS 102. Basi$ of consolidation These financial statements consolKlale Ihe results of the charity and ils wholly owned subsidiaries on a Iine-by-line basis. All intra-group transactions are eliminated on consolidation. No statement ol financial aCtltIeS is presented for the charty as permrtled by section 408 of the Companies Act 2006_ The charity made a loss after tax lor Ihe financial year of £49, 139 12024 -10ss of £981,020). Page 18
Watershed Arts Trust Limited Notes to the Financial Ststements for the Year Ended 31 March 2025 (continued) 2 A¢countSng policies {continu8dl Going concern The Company and group have experienced significant challenges due to the impact of the COV-19 pandem on ils operations and financial performance. However, we are curtenlly witnessing a gradual recovery in trading and revenue growth. Thioughout the recover phase, the management has taken several proactive measufes lo enhance financial resilience, including implementing cost conlainmenl inilialives and cylimising cash flow management. While there are ongoing un¢ertainlies. we believe the compan15 going concern assumption is appropriate. given the posiiive indicators of recovery and the steps taken to ensure operatsonal suslainabilty. Watershed's core funding from Arts Council England and Bristol Cty Council continued as did the project funding lor areas of our creative programme. Waleished's te¢hni¢al resource and expertise enabled these activities lo continue operating in a digital enwronmenl, which presen15 OPPOrtunilies for the future as Watershed assesses new ways of delivering ils programmes and impact In a changing operating environmenl. Budget and cashflow forecasts undertaken throughout the year indicates that the Watershed Group will maintain sufficient cashflow throughout 2025126 and continue operating without impediment for the foreseeable future. The financial slalemenls have therefore been prepared on a going concern basis as considered appropriate by Watershed's Trustees. Income Voluntary income Income from government and other grants is recognised when Ihe charity has enlillemenl lo the funds, any performance conditions are met, the amount can be measured reliably, and in line with the liming implied by any multi-period grant agementS. Grants received in respect of revenue expenditure are credrted lo income in the peiiod lo which they relate. One off nOn-$p1[1C revenue grants whh support core activrties are calegorised as voluntary income. Revenue grants received for Specffj creative projects are also categorised as income from charitable aclivilies. Grants received lo fund capital expenditure are recognised in the Statement of Financial Aclivilie5 in the year of receipt and held as appropriate in $trICted or unreslricted funds. whe strIcted, the balance in reslricte(I funds is Ifansfer¥ed lo unreslricled funds in future years al the same rale so as lo match the depreciation of the related assets. Donations and16gacies Donations are recognised when the charity has been notified in writing of both the amount and settlement dale. In Ihe event that a donation is subject to conditions Ihal reqLJire a level of performan¢e by the Chaiily before the charity is entilled to the funds, the income is deferred and not recognised until either those conditions are fulty mel. or the fulfilmenl of those conditions is wholly within the control of the charty and il is probable that these conditions wll be fulfilled in the reporting period. Page 19
Watershed Arts Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 (continued) 2 A¢counting policies (continued} Donated services and facilities Where services are provided to Ihe charity as a donation that would normalty be purchased from our suppliers, this contribution is included in the financial slalements as value lo the ¢harily, al an estimate provKled by the donors. Invèstment income Investment income is fecognised when receivable. Charitable activities Earned income from cinema activities represents the amounts lex¢luding value added lax} derived from the provision of gcx)ds and services lo Customers during the year in Tespecl of cinema lickel sales and is accounted for on a feceivable basis. Deposits received in respect of cinema tickets for the next accounting period are included in deferred incune in creditors on the balance sheet until the criteria for income recognition are mel. Rentals receivable under operating leases, including any lease incenttves. a charged to income on a slraighl-line basis over the term of the relevant lease except where anolher more systematic basis is more iepresenlalive of the lime pattern in which econom benefits from the lease asset are consumed. TLJrnover in respe¢l of the restaurant. shop and bar takings is rn the fomi of cash and credrt cards and is a¢counled lor on a re¢eipls basis. Turnover in respect of the conleiencing activities is accounted for on the receivable basis wrth income recognised in the pTofrt and loss account for conferences Completed in the current accounting pericxj. Non- refundable deposrts received in respect of conferences in the next accounting peritxl are held a5 deferred income in creditors on the balance sheet. Expellditure All expenditure is accounted for on an accrual basis_ Costs directty attributsble lo a specific expense heading are allocated lo that heading. Expenditure is recognised when a liability Is Incurred.. costs ol generating funds are those costs Incurred in allracling voluntary income, and those incurred in trading activities that raise funds," charitable activities include expenditure associated wilh the cinema exhibition programme and digital studio progiammes and include both Ihe direct costs and support costs relating lo these activities,. governance cosls include those incurred in the governance ol the charity and ils assets and are primarity associated with constitutional and statulory requiremenls", support costs include central functions and have been allocated lo actwity cost categories on a l)asis consislenl with the use of resources. e.g.. allocaling property cosls by floor 8feas, staff costs by the lime spent and other costs by their usage. Raising funds These are ¢osts incurred in attracting volunlary income, the management of investments and those incurred in Irading a¢tivi(ies that raise funds. Page 20
Watershed Arts Trust Limited Notes to the Finanelal Statements for the Year Ended 31 March 2025 Icontinuedl 2 Accounting policies (continued) Taxation The Trust was registered as a charity in March 1982. Under s505 ICTA 1988 the Charity is not subject lo laxalion on its charitable activities. The majority of the profrts of the non-cha¥ilable subsMdi2ry are normally gift aided lo the parent charity thus reducing the group's exposure lo corporation lax. The lax expense represents the sum of the tax cUentlY payable and deferred tax. The lax currently payable is based on taxable profil for Ihe year. Taxable profit differs from nel profil 8$ reported in the incfxne slaternenl because it excludes items of income or expense thal are tsxable OT deductible in other years and rt further excludes items that are never taxable or deductible. The companls liability for current lax is calculated using lax rates that have been ena¢ted or subslanlivety ena¢led by the reporting end dale. Deferred tax is provided in fvll in SpeCt of timing diffenCeS beiween the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted. Tangible fixed assets Fixed assets are carried al historic cost. less accumulated deprecialion, except for the head lease which is carried at fair value. Any movements in fair value are recognised in the Slalemenl of Financial Activity in the year in which they occur. Details of how fair value has been determined are set out in Note 11. Assets under £1.000 are not capilalised unless they fom) part of an asset with a combined value of over £1.000. Page 21
Watershed Arts Trust Limiled Notes to the Financlal Statements for the Year Ended 31 March 2025 {contlnued} 2 Accounting policies (continued} Depreciation and amortisation Depreciation is provided lo wrile off Ihe cost less the estimaled residual value ol tsngible fixed assets by equal inslalments over their estimated useful economic lives as follows." DepciatIOn method and rate Asset class Furniture and litlings Plant and equipment Leasehold 1mprovemenls 10Yo-33VD per annum 11>25 years slraighl line basis Investment properties Investmenl properties are Carried al fair value. Any movements in fair value are recognised in the Slalement of Financial Activi(y in the year in which they occur. Details of how lair value has been determined are set oul in Note 16. Investments in Subsidiary Undertakings (parent only) Investments In subsidiaries undertaking in the charitable company are staled al cost. Details of subsidiary undertakings owned by the charty are disclosed in notes 6 and 7. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and call deposits. and other short4erm highly liquid investments that are readity convertible to a known amount of cash and are subject to an insignifan1 risk of change in value. Provisions Provisions are recognised when the charrty has an obligation al the reporting dale as a iesult ol a past event. it is probable that the charity w¢ll be requiced lo seltle that obligalion and a relrdble estimate Can be made of the amount of the oblvJalion. Foreign exchange Monetary assets and liabililies denomin8led in foreign cuwencies are translated into slerfing at the rates of exchange ruling al Ihe balance sheet date. Transactions in foreign currencies are recorded al the rale ruling al the dale of the transaction. All differences are tsken lo the income and expenditure account. Fund accounting The Charity has various types of funds for whh rt is responsible. and which require separate disclosure. These are as follows.. Unrestricted funds Funds that are expendable al the discretion of the Board in furtherance of the objects of the charity. In addilion lo expenditure on the principal a¢liwties of the Trust, such fvnds may be held in order lo linan¢e capital investmenl and working capital. Page 22
Watershed Arts Trust Limited Notes to the Flnan¢ial Statements for the Year Ended 31 March 2025 (continued) 2 Accounting policies {continuedl Reslricted funds These funds are eamiarked by the donor for specrfic purposes. Grant income received lo fund capital expenditure is held in restricted funds. The balance is transferred lo unreslricled funds in fuluie years al the same rates as lo match the deprecrdlion charges of the related assets. Revenue funds restricted by the donor are matched against expendrture as appropriate. Designated funds The Building Fund Ipreviously named the Bristol + fund) is to ensure that Watershed buildings are maintained in an excellenl slate of repair, lo meet the c051 of unplanned emeTgency repairs and lo meet future capital development rbeeds. Other designated funds ringfence surpluses altribuiable to limi differences associated with specilic project activity and are ulilised over the life of the proie¢t. Head Lease The head lease is a mixed-use Pfoperty under Paragraph 10.47 of the Charities SORP. Unils which are leased lo third party tenants on commercial terms are shown as investment property. Units which are occupied by the charity are classified as tan9ibk fixed assets. Leas6$ Operating lease rentals are charged to the slalemenl of financial activities on a straight-line basis over the period ol the lease. Stocks Slo¢ks are slated al the bwer of cost 8nd nel realisable value, where cost 15 determined with reference to current pre$. Stocks ale assumed lo be on a fiist in first out basis. Financlal instruments Recognition and measurement The charity and group onty enters into bas financial inslrumenls. Financial instruments are recognised in the group's balance sheel when the group becomes party lo the contractual provis1011S of the Instrumenl. Basic financial assets Basi¢ financial assets. which include Iiade arKI other debtors, are initialty measured al Iiansaclion price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement conslitules a financing transaclion. where the tfansaction is measured al the present value ol Ihe future receipls discounted * a market rale of interest. Page 23
Watershed Arts Trust Limited Notes to the Flnanelal Statements for the Year Ended 31 March 2025 Icontlnuedl 2 Accounting policies l¢ontinuedl Basic financial liabilities Basic financial liabilities. including trade cre(lilors, other credrtors. are initially re¢ognised al transaction price unless the arrangement constrtules a financing transaction. where Ihe debl instrumenl is measured at the present walue of the fLrture receipts discounted al a market rale ol interest. Financial liabilities ¢lassilied as payable wrthin one year are not amortised. Debt instruments are subsequently carried al amortised cost, using the effeclwe interest iale methtxl. Trade credrtors are oblBJalions lo pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classrfied as creditors.. amounts falling due alter more than one yearf.. Trade cfeiftlors are recognised inilialty al Iransaclion price and subsequently measured at 8mortlsed c05t using the effective interest melhod. Critical accounting judgements and estimation uncertainty The preparation of the financial slalemenls iri conformity with FRS 102 requires management lo make judgements, e51imales and assumptions that affect the applKation of policies and reported amounts of assets and liabilities, income, and expenses. Eslimales and judgemenls are continualty evaluated and are based on historical experience and other factors. including expectations of future events that 3re believed to be reasonable under the circumstsnces. The resulting accounting eslimates may not translate lo actual future outcomes. The Trustees consider that Ihe following critical a¢counling estimates and judgements have a significant risk of causing a material adjuslmenl in fre peri(xls'. Valualion of head lease linveslmenl property and fixed assels) The head lease is a mixed-use property. Units which are rented to third parties on commercial terms, are classified as investment propety. units which a occupied by the Charity are classified as tangible fixed assels. The Trustees have engaged the services of Carter Baynes lo assist in determining the fair value of the head lease. Details of the valuation is set out in Note 15. In the event of disposal. the actual value of Ihe lease could be materially different to this eslimale. Page 24
Watershed Art$ Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 (contlnued} 3 Income from donations and legacies Unrestricted funds Restricted funds Total 2025 Donations Arts Council England - National Portfolio funds 142.365 757,984 20.180 162,545 757,984 900.349 20,180 920,529 Unrostricted funds Restricted funds Total 2024 Donation5 Arts Council England - National Portfolio funds Brislol Cty Council - Key Arts PIovKler funds 122.950 757.984 54,000 122,950 757.984 54,000 934.934 934,934 4 Income from charitable activities Unrestricted funds Restrictod funds Totsl 2025 Earned income frcfft cinema activitses Service charges Other earned income Programme funding 1.204,030 140.142 286.233 1,204,030 189,392 436,510 2,366.440 49.250 150.277 2,366,440 1.630.405 2,565,967 4,196,372 Unrestricted funds Re$tri¢ted funds Total 2024 Eamed income from cinema activities Serwce charges Other eamed income Pro9iamme funding 1.042.294 161.413 182.342 1.042,294 161,413 182,342 1,990,019 1.990,019 1,386.049 1.990,019 3,376,088 5 Financial activitie5 of the charity A separate Slalemenl of Financial Aclivities and Income and Expenditure Account for the ¢harily has not been presented as il has taken thanlage of the exemption afforded by section 408 of the Companies Act 2006. For the parent charity net movement in funds for Ihe year is a deficit of £49,139 12024.. deficit of £981,020). Page 25
Watershed Arts Trust Llmited Notes to the Financial Statements for the Year Ended 31 March 2025 leontinuedl 6 Trading substdiary's results (Watershed Trading Limitedl 2025 2024 Turnover Cost of sales 2.212.815 11,664,224) 2,043.943 11,369,215) Gross profit Adminislralion and other costs 548,591 674,728 52.610 {106,239 Net income 495,981 568,489 Olher operating income Gift aid payment lo Watershed Arts Trusl Limited Managemenl charge Ircxm Watershed Arts Trust Limi(ed ILossllprofit for the yèar Tax on profil 10,448 1393.0291 255.726 (158,4031 1226.676 1142,3261 183,410 (1,3141 Retained prolil brought forward 401,558 218,148 Retalned profit carried fonvard 257,918 401,558 The assets and liabilit$ of the subsidiary were.. 2025 2024 Fixed Assets Currenl Assets Creditors". amounts falling due within one year Provisions for liabilities and charges 20.360 854,901 1612,374} 4.869 22,183 818,667 1435,6371 3.5551 Net assets 258.018 401.658 Equity shareholders. funds 258.018 401,858 Page 26
Watershed Arts Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 Icontinuedl 7 Tradln9 subsldlary's results (Watershed Ventures CICI 2025 2024 Gross profit Adminislralion and other costs 1.2431 Trading (loss) other income 11,2431 1,006 1.132 Net profiullossl Retained profil brought fO[d 1,132 12371 7,194 6,957 Retained profit carried forward 8.089 6,957 The assets and liabilities of the subsidrdry were-. 2025 2024 Currenl assets Credrtors.. amounts falling due within one year Net assets 60,431 12,3411 59,299 12,3411 58,090 56,958 Equity shareholders. funds 58,090 56,958 8 Investment income Unrestricted funds Rèstricted funds Total funds Rental income Interest receivable 198.583 14,668 198,583 14.668 Total for 2025 213,251 213,251 Rental income Interest receivable 198.832 1,303 198,832 1,303 Total for 2024 200.135 200,135 Page 27
Watershed Arts Trust Limited Notes to the Financial Statèments for the Year Ended 31 March 2025 {continuedl 9 Expenditure on raising funds al ¢05ts of generating donations and legacies Unrestricted funds Restricted funds Total lunds Fundraising costs 27.368 27.368 Totsl for 2025 27,368 27,368 Fundraising costs 57.359 57,359 Total for 2024 57.359 57,359 bl Costs of tradln9 activities Unrestricted funds Restrl¢ted funds Total funds Commercial trading operations 1,718,148 1,718,148 Total for 202S 1.718,148 1,718.148 Commercial tiading operations 1,475,454 1,475,454 Total for 2024 1,475.454 1,475,454 Page 28
Watershed Arts Trust Limited Notes to the Flnan¢lal Statements for the Year Ended 31 March 2025 Icontinuedl 10 Expendlturg on charltable actlvltles Unrestricted funds Restricted funds Total 2025 Operation of cinema, engagement arKI crealNe Property management costs CIC Operation 3.195,081 157.562 2.586.147 5,781,228 157,562 3.352.643 2.586.147 5,938.790 unStriCted funds Restricted funds Total 2024 Operation of cinema, engagement and ¢realive Property management costs CIC Operation 2.821.083 128,146 1,243 2.950,472 1.990.019 4,811,102 128.146 1,243 4,940,491 1.990,019 Page 29
Watershed Arts Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 {continuedl 10 Expenditure on charitable activities (continu} Operation of cinema. engagement and creative Creative technology Audience and talent Engagement development Programme costs Total 202S Cinema Screening - direct costs Oirecl programmelprojecl costs Arts programme man8gemenl and marketing Premises costs General support costs Governance c0515 Depreciation 1.139.065 764.047 218,435 478.697 651.820 91,746 171,403 1,139,065 2,494.775 436,870 566.808 814,775 114,682 214,253 1,730.728 218,435 88,111 162,955 22.936 42.850 3,515,213 2.266,015 Creative technology Audience and talent Engagement development Programme projects 5,781,228 Total 2024 Cinema Screening - direct costs Dire¢l Programmelprqecl costs Arts programme management and marketing Premises c051s General support costs Governance costs Depreciation 1.246.205 637.941 436,519 410,305 259.486 100,464 174.635 1,246,205 1,505,797 763,532 627.337 324,357 125,580 218,294 867,856 327.013 217.032 64.871 25,116 43,659 3,265,555 1,545.$47 4,811,102 Included in the above is restricled expenditure of £2,586.14712024.' £1,990,019). Page 30
Watershed Arts Trust Limited Notes to the Flnancial Statements for the Year Ended 31 Mar¢h 2025 Icontinuedl 11 Analysis of support costs The Trust allocates its support costs betweell the Iwo charrtable activities undertaken {see note 101. Detaikd allocation of support costs is shown below. Support cosls a allocated on a basis consislenl with the use of resources. Charltable activities Fundraising costs Totsl 2025 Governance General office Finance office External audit Professional seNices Fundiaiser costs 492.395 3C6.*3 5.21 2,805 12,833 60,081 15,301 26,467 510,434 369,849 15.301 41,884 19,357 956,825 15.417 19,357 814.775 27.368 114,682 Charltable activities Fundraising costs Total 2024 Governance General office Finance offiee External audit Professional services Fundraiser costs 123,263 180.709 2.312 2.387 16,760 51,946 36,878 19,9 142,335 235.042 36.878 40,381 52.660 20,385 52,660 324.357 57,359 125.580 507,296 12 Net in¢omelexpenditure 2025 2024 Auditors, remuneration- audit services - group Audilois. remuneration- audit servi$ - charity Auditors. remuneralion- non 3udi( seryices - group Auditors. remuneralion- non audrt seryices - charity Depreciation and other amounts written off tangible fixed assets Operating lease payments recLxJni5ed as an expense 9,500 23.000 9,800 25.810 225.939 10,303 2.574 18,000 229,710 10,303 Pa9e 31
Watershed Arts Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 Icontinuedl 13 Staff costs 2025 2024 Wages and salaries Social securrty costs Pension costs 3,287,670 299,815 69,991 3,657,476 2.674.572 232,739 57.614 2,964.925 The average head¢ount in the year for the group was 12712024.. 118). The monthly average number of persons (including senior management I leadership team) employed by the group during the year expressed as full lime equivalents was as follows.. 2025 No 2024 No Cultural engagement programme Adminislralion Tradin9 50 12 30 44 13 27 92 During the current and previous year. the Trustees were not paid any remuneration or reimbursed for expenses. No Trustees made a donation to the charity in the current or previous year. Key management corllpensation in total for the year was £98,518 12024-. £95,650). The key management personnel ol the charity comprises the Leadership Team and Extended Leadership Team.12024' Key managemerht pefsonnel of the charty comprises of Ihe Chief Executive Officer). The number of employees whose emoluments fell within the followng bands was.. 2025 No 2024 No £80,001 - £90.000 14 Taxation The company, which is a iegistered charity. is not liable lo iaxation on the nel income fiom ils primary activities to the extent that these late to rts charrtable purposes. Page 32
Watershed Arts Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 (continued) 15 Tangible fixed assets Group Leasehold improvements Furniture and equipment Head lease Total Cost At 1 April 2024 Additions Disposals 3.472.100 3.671.501 26.059 1.559,442 8,703,043 90,595 116,654 12,123 12,123 At 31 March 2025 3.472,100 3.697,560 1.637,914 8.807.574 Depreciation Al 1 April 2024 Charge for the year Eliminated on disposals Al 31 March 2025 2,370.359 151.963 1,476.952 3,847,311 73.976 225,939 12,123 12.123 2.522.322 1.538.805 4,061,127 Net book value Al 31 March 2025 3,472,100 1.175,238 99,109 4,746,447 Al 31 March 2024 3.472.100 1.301,142 82.490 4,855,732 In March 2007 Watershed purchased the long leasehold head lease lo E & W sheds for ils unexpired term of 111 314years. The final piice paid was £5.95 million. In 2019120, the lolal value ol the head lease was revalued al a market value of £7,650.000. The Twslees instructed Carter Baynes (Chartered Surveyors} to provmje a valuation of Ihe market Ifairl value of the head lease al 31 March 2024. The valuation was cariied out in accoTdance with the RICS Valuation - Global Standards January 2022 and the UK national supplement l The Red Book"). The Trustees consider the March 2024 valuation remains appropriate as al 31 March 2025. The total valuation of the head lease at 31 March 2025 was £6,770.000 of which £3.472.100 is categorised as tangible fixed assels (occupied by the ¢h8rity} and £3.297.900 as investment property which is rented lo third parties on commercial terms. Page 33
Watershed Arts Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 {continued) 15 Tangible fixed assets Icontinuedl Charlty Leasehold improvements Fumiture and equipment Head lease Total Cost At 1 April 2024 Addition5 Disposals 3.472.100 3,671,501 26.059 1,405.367 8,548,968 80,732 106,791 12,123 12.1231 Al 31 March 2025 3,472.100 3,697,560 1,473.976 8,643,636 Depreciation Al 1 April 2024 Charge for the year Eliminated on disposals 2,370.359 151,963 1.345,060 3,715,419 62,290 214,253 12,123 12,123 At 31 March 2025 2.522.322 1,395,227 3,917,549 Net book valuè Al 31 March 2025 3.472,100 1,175.238 78,749 4,726.087 Al 31 March 2024 3.472.100 1.301.142 60,307 4,833,549 16 Fixed asset investments Group 2025 2024 Inveslmenl properties 3.297,900 3,297,900 Investment properties Investment propertiès Cost or Valuatron Al 1 April 2024 3,297.900 Al 31 March 2025 3,297.900 Net book value Al 31 March 2025 3,297,900 Al 31 March 2024 3,297,900 Charity Page 34
Walershed Arts Trust Limited Notes to the Financlal Statements for the Year Ended 31 March 2025 Icontlnued) 16 Fixed asset investments Iconlinued) 2025 2024 Investment properties Investments in subsidiaries 3.297,900 50,101 3,297,900 50,101 3.348,001 3.348.001 Investment properties Investment properties Cost or Valuation Al 1 April 2024 3.297.900 Provision At 31 March 2025 Net book value Al 31 March 2025 3.297,900 Al 31 March 2024 3.297.900 Investments in Subsidlaries The above shares represent equity investments in group undertakings. The company owns 100°A of the issued share capTtal of Watershed Trading Limiled Icompany registration number.. 016216201, a company incorporated in England and Wales. The piincipal activrties of this company are the operation of the caféthr, and conference facilities al Watershed. The company own5 1000A of the issued share capital of Watershed Ventures CIC (company regislralion number.. 060970131. a company incorporated in England and Wales. The company is dormant and was dissolved after the year end on 12 August 2025. Page 35
Watershed Arts Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 (contlnuedl 17 Stocks Group Charity 2025 2024 2025 2024 Finished gcM)ds and goods for resale 22,809 18.101 18 Debtors Group Charity 2025 2024 2025 2024 Trade debtors Due from group undertakings Prepaymen15 A¢¢rued income Other debtors 363.408 218,994 224.814 414,680 83,787 204,925 4,102 82,331 228.729 187.004 141,395 8,229 84.603 205,058 4,102 189.778 141.395 8.229 657,171 558.396 932,308 647,688 19 Creditors: amounts falling due within one year Group Charity 2025 2024 2025 2024 Trade creditors Other taxation and social secuiily VAT Other creditors A¢¢ruals & delerred incM)e 397,518 223,770 388,946 212,192 74.157 102.593 119,370 546.916 72,291 84,876 73,335 622.544 52,906 16.861 72,367 509.436 57,730 218 45.842 551.586 1.240,554 1.076.816 1,040.516 867.568 Page 36
Watershed Arts Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 (continued) 19 Creditors- amounts falling due wrthin one year Icontinuedl Deferred income consists of deferted rent income. advanced cinema sales. and conference deposits. The balance al the year-end was.. Deferred Income 2025 2024 Charity Deferred income at 1 April Resource5 deleired in the per1j 204.609 191.741 15,622 188,987 Deferred income al year end 396.350 204,6D9 20 Creditors- amounts falling due after one year Group Charity 2025 2024 2025 2024 Rent deposits 29,690 29,69) 29,690 29.690 The balance of £29.690 relates lo rental deposits hekl in respect of tenancies to E&W Sheds. The balance is wholly paYable within 5 years. Page 37
Watershed Arts Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 {continuedl 21 Obligations under leases and hire purchase contracts Operating lease commitmènts Total future minimum lease payTnenls under non-cancellable operating leases are as follows.. Group Charlty 2025 2024 2025 2024 Plant and equipment Within one year Beiween one and live yeais 11,996 27,991 10,3 6.974 11.9 27,991 10.306 6.974 39.987 17.280 39.987 17.280 22 Operating leasès as a lessor The future minimum lease payments under non-CanlIable operating leases expected lo be received by the Charity and Group are due lo be received as follows_" 2025 2024 Group and Group and Charity Charity leasehold leasehold property property Within one year Between one and five yeaTS 245,835 492,469 245,835 691,057 738,304 936,892 23 Provisions Group 2025 2024 Al beginning of year Movement in year 3,555 1,314 3,485 70 Deferred lax liability 4,869 3,555 The charity has no deferred lax liabilities. Page 38
Watershed Arts Trust Lifflited Notes to the Financial Statements for the Year Ended 31 March 2025 (continued) 24 Financial instruments The group and charity have the following financial inslwmenls.. Financial instruments which are debt instruments measured al amortised cost Group 2025 Group 2024 Charity 2025 Charity 2024 Trade debtors Due from group undertakings Other debtors 363.408 218.994 224,814 414,680 4,102 82,331 228,729 8,229 4.102 8.229 Financial liabilities measured al amortised costs Group 2025 Group 2024 Charity 2025 Charity 2024 Trade creditors Olhef creditors 397.518 2.120 223.770 230,502 388.946 142.134 212.192 103,790 25 Pension and other $chemes Defined conlribution pension scheme The group operates a defined contnbulKJn pension scheme. The pension charge for Ihe year represents contributions payable by the group to Ihe scheme and amounted lo £51.873 (2024 £44.2251. Page 39
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Watershed Arts Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 (continued) 26 Funds Icontinuedl Transfer lo unrestricted income furKls is in respect of the annual ielease to the SOFA in respect of capital grants. Sufficient resources are held to enable each fund to be applied in accordance w(ch any eslrictions. Designated Funds British Film Industry Where British Film Industry income is unspent at the year end, the balance is transferred lo designated lunLI lo iing-fence then unspent balance for the next year. Building Fund The Building Fund {previously named Ihe Bristol + fund) 15 to ensure that Watershed buildings are maintained in an excelnI slate ol repair, lo meel the cost of unplanne(l emergency repairs and lo meet lulure capital development needs. Other designated funds ringfence suiplLsses allribulabEe lo liming differences associaled with specific project activity and are ulilised over Ihe life of the prqect. Head lease Fund The head lease fund 1£5,504.8561 represents the head lease purchased via a capital grant ol £6.400,000 provided lo Watershed by South Wesl Regional Development Agency {SWRDAI in Mar¢h 2007. Capital Fund Following the re-evaluation of the head lease in July 2019 and a change in accounting treatment, accumulated depreciation charges of £709.544 have been written back. A new capital designated fund was set up in 2019120 to Ting-fence Ihis amount lor the purposes of capital investment. Rèvaluation Reserve The uplift in the value of the head lease1£555,600) is held in the Revaluation serve. These three funds represent the head lease valuation of £6.770,0 and therefore do not form part of the freely available reserves of the Trust. Page 44
Watershed Arts Trust Llmited Notes to the Financial Statements for the Year Ended 31 March 2025 {continuedl 26 Funds Icontinuedl Restricted Funds ACE Lease Purchase Grant Grant support from Arts Council England Slabilisalion scheme lo enable the Watershed's lease purchase has been tranSferd lo deferred capital grants and is being taken to income funds over a period of 79 years to match the unexpired period of the aSe. Garfield Weston capital granl Grant support received from the Garfiekl Weston Foundation towards the costs of phase 1 of Watershed's proposed capital developmenl project has been transfeNed lo deferred capital grants. Since this project has been delayed. the funds have now beell approved for use in supporting the refurbishment of Watershed's first floor toilets into a fulty inclusNe facility and are being taken lo income over the same period lime as the depreciation of the assets il funds Other R&strlcted Capital Grants Grant support lo fund historic refurbishments and ¢onslruction which began in 2001 has been transferred lo Other Restricted Captsl Grants and 15 being taken to income over the same period of lime125 years) as the deprecialK)n of the assets funded by the grants. Donations specificalty lo support Waleished's capital devel¢Jpmenl project (including support from Bristol Cily Council lowards the costs of relurbishing Watershed's first floor loilets into a fully inclusive lacilityl have been transferred to deferied capital grants and will be taken lo income over the same period as the depreciation of the assets they fund. Restricted Revenue Grants Revenue grants. including donated 5eNces and one-off grants for specific creative projects which are restricted by the donors are Galegorised income from charblable aclivrties an($ spent in accordance with the donors. restrictions. Page 45
Watershed Arts Trust Limited Notes to the Financlal Statements for the Year Ended 31 March 2025 {continued) 27 Analysis of net assets between funds Group Total funds at 31 March 2025 Unrestricted funds Restricted funds Tangible fixed assets Fixed asset investments Currenl assets Current liabilities Credrtors over 1 year Provisions 3,728,570 3,297,900 1.950.207 11,240,554) 129.690) 14.869) 1.017.877 4,746,447 3.297,900 1,950,207 11,240,554) 129,6901 4,869 Total nel assets 7.701.564 1,017,877 8,719,441 Total funds at 31 March 2024 Unrestricted funds Restricted fund5 Tangible fixed assets Fixed asset investments Current assels Cufrenl liabilities Creditors over 1 year Provisions 3,690,757 3.297.900 1,867.517 11,076.816} {29,690) 3.555 1.164,975 4.855.732 3,297.900 1,867.517 {1,Q176,8161 129,6901 {3,555 8,911,L)88 Total nel assets 7,746,113 1.164.975 Page 46
Watershed Arts Trust Limited Notes to the Flnanclal Statements for the Year Ended 31 March 2025 {continued} 27 Analysis of net assets between funds Icontinued) Charity Total funds at 31 March 2025 Unrestricted funds Restricted funds Tangible fixed assets Fixed asset investments Current assets Current liabilities Creditors over 1 year 3.708,210 3.348.001 1,449,552 11,040.5161 129,690) 1.017.877 4,726,087 3,348,001 1,449,552 11,040.5161 129,6901 8.453,434 Total nel assets 7.435.557 1,017.877 Total funds at 31 March 2024 Unrestricted funds Restricted funds Tangible fixed assets Fixed asset investments Current assets Current liabilities Creditors over 1 year 3,668,574 3,348,001 1,218,281 1867.5681 (29,6901 1.164,975 4,833,549 3,348,Q01 1,218,281 1867,5681 129,6901 Totsl nel assets 7,337.598 1,164.975 8,502.573 28 Related party transactions During the year legal fees ol £Nil (2024". £4,350) were paid to TLT LLP in respect of legal services provided lo the Waler5hed Group. (James Touzel is a Iwslee of Watershed Arts Trust Limited and a partner of TLT LLPI. Watershed has a nonoxclusive arrangement wilh TLT LLP for Ihe prowsion of legal services. This arrangement has previously been approve(I by Ihe Board and was reconfirmed in June 2016. The Board has delegated authority lo the Chief Executive OffIr to instruct TLT LLP. or any other law firm, on matter5 where the lolal fee charged on that transaction does not exceed £10,000. Transactions above this limit are approved by the Board. James Touzel absents himself from any discussion of any proposal to InStrt TLT LLP or lo approve fee proposals submitted by TLT LLP. During the year £60012024". £Nill was paid lo the National Film and Television School. A trustee of the charrty Is an employee of the National Film and Television School. During the year £18,000 12024". £2,985) Yrd5 received fiom The Royal Shakespeare Company. A Iruslee ol the charity is a Iruslee of The Royal Shakespeare Company. Page 47
Watershed Arts Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2025 (continued) 29 Post balance sheet events On 12 August 2025. Watershed Venlvres CIC ¢ease(I lo trade and Ihe wmpany was dissolved. 30 Contingent liabilities After the year end an error was identified in the charitls appfoach lo rt's partial exemplion VAT calculation. which is likely to have iesulted in an underpayment of VAT. At Ihe date of approval of these financial slalemenls the impact of this vras nol yel ascertained and therefore no provision has been included wrthin these financial slalemenls for any potential underpayrnenl as no reliable estimate was available. Page 48