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 ConSol￿ated 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 a￿llenCeS aThJ arylied in everythiNJ we do." IncluBive We listen to and learn from our ccffim￿rty, Cteabng and addressing ham where it occurs Transparent We share our apKwoad) and d83￿y. wwknng at a pa￿ which enab￿9 eVery￿e to participate who wishes to Responsible use our sustainaUe Y￿h resour￿ a￿1 consmjer our impacl on future generations Klnd We are ca￿lu1 aThJ caiirYJ with ￿rselveS and ￿th otr*rs Hopeful We cdebrate cultur8. ueabvity aThY wonder as paths to a better future The pillars of our work Our creatlve Programmt Europe's leading indepe￿nt Cinema Cinema RediseA>vered - annual festival bnnging bad( das51c films lo the $c￿en. Work in progress showcases. talks arwj events around M￿lia. tech and ¢￿)INe innovation Large scale R&0 projecis in Bristol. across Ihe UK and aK￿rKF 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 M￿la 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 knOw￿d9& sharing for culture sector on indt6ive organisabonal culture This worfK 15 underpinned throu9h highly successful income gene¥ating aclivilieswhich I￿rUde ￿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 peO￿e bought tickets for our venue SC￿￿ningS 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 a￿sts aThJ ¢￿8￿"Ve5 are resk*nt in the Pervasive med￿ Studio. 129 Employees at Watershed Pervasive Media Stu¢Jio res￿entS t8POrted secur&Y research fvThJiNJ in excess of £500K Page 1 Watershed Art8 Trust Limited Trustee8' Report Icontinuedl Programmè hl9hll9hts Cinema Watershed delivered ex￿ptk)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 0ppenI￿lMe1, 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 ach*ve(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 (Lynm￿n1IÈ$. CrossFAN's UK-WkYe Art ofAc*on season ¢oordinateora Festival Earth Day cekbrations in Aplll 2024 attracte(J 130+ attendees for film screenings 8nd 60tr for networfling. featuring dimale action or9antsations Including Avon Rivers Trust and Soil Asswation. Pa￿2 Watershed Arts Trust Limited Trustees, Report Icontlnued Our 81hicalAlpolicy sl8fes we wllbe transparFnt aboul ourusg olAI. The pmgramme hwhlights were author6d usng C18ude.Ai to summanse exffshng Watershed d£wments. Report on 2024- 2026 Organlsatlonal Prforltl•s Bu8ine$¥ 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 de￿￿n￿￿ Io I￿[￿a58 audk?rw and wofitability. Undernhed We18unched Undershed - a new Immersive GaI￿ry in Autumn 2024 and began prI￿urirfj a new natK)nal networff of immersive venue5. Finance Systems After a competitive and thorougfr prcws, $eled￿ and CA)nlracted Xledgef as Wdtersh8d's new finanrx sysiern to improve effic￿ncY and business rerM)rtirvJ. Looklng ahead: 25-26 Organisationol prlorltles Programrne- Develop comprehensive cross organisabonal programme for the￿ ol H¢yne125-261 and Sound126-271 to encourage cross pollination and supports fundraising. Launch Club Shed member5hp stheme to grow mailiTh) list and freqLEncy ol visits Link Undershed much rnore cjearfy lo Watershed creatwe technology programme Wild and Generous - delivei plan and fundr8i%ng approach. to leverage our heritage. meet our values and respond to the changing opportunites of our business. Development - Launch CorFK)rate Membership sd)en Finance- Implement new finance softwa Rlsk Management Effective nsk managemenl is ¢￿￿tal to Watefsh8d 1hri￿Tr) in Ihe thaTh)eab￿ environrnent in whKh it operates. Watershed's risk rnanagernent strategy ensures that the organisation can". Maintsin a ies11ient. ffle￿bIe. aThJ wable 0￿ra￿"0￿. Mak8 C8lcula¢ed investrnenls in new and speculative areas vrillK)ut underni1n1￿ the Coheren￿ and sustainability of the ofganisalion. Watershed's risk register identifie5 the key areas of risk the business faces. assesses the indicators, likelihood and impact ol those risks an($ identifies the actions ￿u$re(l in order to ￿￿￿ale them should they ari58. The risk registeris created and regularfy reVie￿Ed bythe Board and thè Ex8cuiNe ieam. Watershed's risk tnanagement Strategy involves maintainitvJ" ProTrdures to ensure 8arly detection ol xlenb"fi&J and ernergent risks. Regular rn￿lIOr1n9 of key perf0ffnan￿ indicators across the ofgani581ion Procedures to effectsvety mitBJate Klentified Itsks. Procedu￿$ 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 rev￿Wed 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. servi￿5 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 04*rSubs￿bed aThJ closiThJ their applicab'ons. Building and Systems Systems infrastruclure with unrella￿e and unsupported *acy systems impacting 0￿ratIonal 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 re￿a¢ement Cau￿r0 Farilth"eslequipment to be no longer fit for purp)$e ￿ meel customer expe¢tstK)ns. For each ofthese risks. Watershed has tn Pl￿ indicators 8Th1 mitigatir¥J adws to monii(x. avcmd, rnib.gale or transfer the impa¢t of it5 principal risks and un(xrt8in*"es. TfE Twstees consmlei thal adeouate cA)ntrols are in Pla￿ lo miligale the key risks identif￿d in rts nsk register. Development (Fundraising) Vvalershed is corntnitted to the hvJhe5t fundraising standards and ￿l*ve$ 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 C￿￿PIlan￿ 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 ￿tM￿￿5 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(xn￿81nts or concem5 re￿Ned 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 pla￿5 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 beI￿ve 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 UnreStr￿ted defi￿t of £191.647 reflecting the challenging operating and tiadiNJ co*Ylitions the year. unrestrict￿ incorne (excluding income trom restricted programme funds) was £4.90 million durif¥J the year and Un￿In'eted expelldi￿re lexduding prograrntne c05tsl was £5.10 million. Subsidlary Company Results The chaiity's wholly owned subsith"ary. Wate￿h¢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 activit*s ol the Arts Trust and lom a key part of the Watershed offer. provvjing a welc(xning. or￿n 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 Limiten 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 con￿rn 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 ￿9￿latiOns". • 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 truSt￿S, 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 lo￿ard 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 fO￿ard 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 I￿xIS 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 Un￿StrICted 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 fu￿1$ 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, inCorp￿ated 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 aCt￿ltIeS 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 ag￿ementS. Grants received in respect of revenue expenditure are credrted lo income in the peiiod lo which they relate. One off nOn-$p￿1[1C revenue grants wh￿h support core activrties are calegorised as voluntary income. Revenue grants received for Specffj￿ creative projects are also categorised as income from charitable aclivilies. Grants received lo fund capital expenditure are recognised in the Statement of Financial Aclivilie5 in the year of receipt and held as appropriate in ￿$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 cU￿entlY 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 diffe￿nCeS 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." Dep￿ciatIOn 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 insignif￿an1 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 wh￿h 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 pr￿e$. 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 f￿￿re 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 un￿StriCted 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 per1￿j 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-Can￿lIable 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 O¢DfO o ¢0 ￿¢0 (o (400 o ro O t orti O ¢D O rlnvo LK> O 0> (ti￿0 (T) U) +X> (O (D I L) (( *0 CO O OJ O 10 ￿¢D ¢D 0 J LO ¢ 00 Ln or4 VOID orDVO o u) 05 CL > ty ri) (ll l L) ou)ro rOfD 00 10 O¢D rO(O ¢ry o I Q) 0 47) Lt) Ln o co 4rJ rts o) r o) )0 ) o) t o ￿¢D 00 ¢J> (o o) t4 o p) rO(O o (o