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2021-03-31-accounts

Registered number: 01560651 Charity number: 284545

THEATRE ROYAL (PLYMOUTH) LIMITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

THEATRE ROYAL (PLYMOUTH) LIMITED

CONTENTS

Page
Reference and Administrative Details of the Company, its Trustees and Advisers 1
Trustees' Report 2
Trustees' Responsibilities Statement 10
Independent Auditors' Report on the Financial Statements 11 - 14
Consolidated Statement of Financial Activities 15
Consolidated Balance Sheet 16
Company Balance Sheet 17 - 18
Consolidated Statement of Cash Flows 19
Notes to the Financial Statements 20 - 45

THEATRE ROYAL (PLYMOUTH) LIMITED

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees Nicholas Buckland OBE, Chair
Francis Drake
Sarah Fysh
Shona Godefroy
Bronwen Lacey
James Pidgeon
Paul Woods
Emma-Marie Huxham
Imogen Kinchin
Company Registered
Number
01560651
Charity Registered
Number
284545
Registered Office
Theatre Royal
Royal Parade
Plymouth
Devon
PL1 2TR
Chief Executive
Adrian Vinken OBE
Independent Auditors
Bishop Fleming LLP
Chartered Accountants
Salt Quay House
4 North East Quay
Sutton Harbour
Plymouth
PL4 0BN
Bankers
NatWest
St Andrew's Cross
Plymouth
PL4 0HY
Lloyds Bank
8 Royal Parade
Plymouth
PL1 1LX
Solicitors
Womble Bond Dickinson
Ballard House
West Hoe Road
Plymouth
PL1 3AE

Page 1

THEATRE ROYAL (PLYMOUTH) LIMITED

TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees, who are also directors of the company for the purposes of the Companies Act, present their report and the audited financial statements for the year ended 31 March 2021. The financial statements comply with applicable Accounting Standards in the United Kingdom, the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019), the Charities Act 2011 and the Companies Act 2006.

How we manage our affairs

The company number is 01560651 and registered charity number is 284545. The registered address is Theatre Royal Plymouth, Royal Parade, Plymouth, Devon, PL1 2TR.

The Trustees who served in the year were: Nicholas Buckland OBE, Chair Francis Drake, re-elected for one year, 27 Sept 2020 Sarah Fysh Shona Godefroy Emma-Marie Huxham Imogen Kinchin Bronwen Lacey James Pidgeon Paul Woods, re-elected for one year, 27 Sept 2020

Day-to-day management of the Charity is delegated to the Senior Management Team (SMT), who are: Adrian Vinken OBE, Chief Executive Helen Costello, Operations Director Marianne Locatori, Strategic Projects Director Mandy Precious, Engagement & Learning Director Dylan Tozer, Audience & Communications Director

The Board of Trustees and SMT are supported by the following professional advisers: Solicitors: Womble Bond Dickinson, Ballard House, West Hoe Road, Plymouth, PL1 3AE Bankers: (Current accounts) NatWest, St AndrHZ¶V�&URVV��3O\PRXWK��3/���+< (Deposit accounts) Lloyds, 8 Royal Parade, Plymouth, PL1 1LX Auditor: Bishop Fleming LLP, Salt Quay House, Plymouth PL4 0BN

How we govern ourselves

The Charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association. On 12 May 2020, the Memorandum and Articles of Association were amended to ensure that meetings of the Board could take place virtually as well as µLQ�SHUVRQ¶���7UXVWHHV�DUH�DSSRLQWHG�E\�UHVROXWLRQ� of the Board of Trustees.

The Board of Trustees, acting in a voluntary capacity, has legal responsibility for the effective use of UHVRXUFHV�LQ�PHHWLQJ�WKH�7KHDWUH¶V�PLVVLRQ��GHFLGLQJ�SROLF\�DQG�IRU�SURYLding leadership and direction. It meets at least four times a year. There are three Committees which report directly to the Board: Audit & Risk, Inclusion & Diversity and Nominations. The Audit & Risk Committee meets up to four times a year. The Nominations Committee meets once a year plus further meetings depending on the recruitment needs of the Board. The Inclusion & Diversity Committee report to the Board according to the development and progress of the Inclusion & Diversity action plan.

Trustees serve for a three-year term, after which they are eligible for re-election. Trustees are able to complete three terms before standing down completely. There is also provision for Trustees to extend their term by one year under special circumstances. Due to the exceptional impact of the Coronavirus pandemic,

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THEATRE ROYAL (PLYMOUTH) LIMITED

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

this provision has been used to extend the term of two Trustees who were due for retirement in September 2020. New Trustees are selected through open recruitment, which includes advertisement in the regional press and social media. The Nominations Committee has a specific brief to consider the diversity of the %RDUG�LQ�DQ\�7UXVWHH�UHFUXLWPHQW��LQ�OLQH�ZLWK�WKH�RUJDQLVDWLRQ¶V�FRUH�YDOXHV���,Q�DGGLWLRQ��SDUWLFXODU�HPSKDVLV� is placed, at the time of recruitment, on appointing individuals who can fulfil any identified skill gaps within the Trustee body. New appointees and existing Trustees are provided with an induction programme and, where appropriate, a range of other training opportunities to help them meet their responsibilities.

The Charity has a Senior Management Team (SMT) which reports directly to the Board of Trustees. The SMT is responsible for operational decision-making with guidance and approval for strategic decisions provided by the Trustees. The Chief Executive has been delegated with responsibility for the day-to-day management of the Theatre.

The remuneration level for key management personnel is set at the point of recruitment with reference to national market rates within the cultural economy. Thereafter, rates are subject to annual review in the same way as the rest of the organisation. The Charity pays employees in line with the Real Living Wage and is structuring a new house agreement with the Broadcasting, Entertainment, Communications and Theatre Union (BECTU) on this basis.

The Theatre has one subsidiary undertaking, Talklight Limited. This company provides catering and retail facilities, and management services to the Theatre Royal (Plymouth) Limited. Talklight Limited generated no operating profit in the year (2019: £307k). Usually all profits are passed to the Charity under the gift aid regulations. For last year only, a proportion (rather than 100%) of profits was gift aided to allow a reserve to build within Talklight Limited to cover the financial effects of the Coronavirus pandemic on the company. This year there will be no gift aid as Talklight Limited has not operated at profit during the period.

The Charity maintains a corporate risk register which is embedded throughout the organisation. The risks and mitigation plans are subject to regular review by departmental heads, SMT and onward review by the Trustees via the Audit & Risk Committee. The review of the risk register, together with the monitoring of risk, both operational and strategic, by the Board of Trustees ensures that adequate and suitable controls are in place to mitigate known risks. The activities of the Audit & Risk Committee ensure that risk is managed in a positive and responsible manner. The Charity undertakes a programme of targeted internal audits using specialist support where necessary, to support risk mitigation.

As permitted by the Articles of Association, the Trustees (as directors) have the benefit of an indemnity which is a qualifying third-party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force. The company also SXUFKDVHG�DQG�PDLQWDLQHG�WKURXJKRXW�WKH�ILQDQFLDO�\HDU�'LUHFWRUV¶�DQG�2IILFHUV¶�OLDELOLW\�LQVXUDQFH�LQ�UHVSHFW� of itself and its Directors.

Whilst the Trustees and SMT have many connections within the local community and the wider theatre industry, they are not in a position to influence any commercial transactions between the Charity and these other parties.

Our charitable aims

The primary objectives of the Charity are to provide art, education and community engagement throughout Plymouth and the wider region.

7KH�&KDULW\¶V�YLVLRQ�LV�WR�HQJDJH�DQG�LQVSLUH�WKH�PDQ\�FRPPXQLWLHV�RI�WKH�6RXWK�:HVW��WRXFKLQJ�WKH�OLYHV�DQG� interests of people from every background. It also aims to provide dynamic cultural leadership for Plymouth, VWLPXODWLQJ�DQG�VHUYLQJ�WKH�FLW\¶V�DPELWLRQ��LQWHUHVWV��DQG�LGHQWLW\�

Due to the pandemic, the Charity has found new and innovative ways to fulfil its charitable aims and serve the communities of the South West during a period of great need. Whilst the stages have been closed for much of 2020-21, community engagement has been moved on-line. Many Trusts & Foundations have been

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THEATRE ROYAL (PLYMOUTH) LIMITED

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

understanding and flexible in their support of alternative delivery methods and timescales. Whilst producing work on our stages has been severely hit by the constraints of the last year, the wider activity of community engagement and talent development for emerging and developing artists has continued.

In setting objectives and making plans for the Charity, the Trustees have had due regard for the Charity &RPPLVVLRQ¶V�JXLGDQFH�RQ�SXEOLF�EHQHILW��LQFOXGLQJ�WKH�JXLGDQFH�µ3XEOLF�EHQHILW��UXQQLQJ�D�FKDULW\¶� 3%� � Fundraising is managed by our in-house team and is either general support via Friends, Ambassadors and &RUSRUDWH�6SRQVRUV�RU�LV�SXEOLF�IXQGUDLVLQJ�IRU�VSHFLILF�SXUSRVHV��:H�NHHS�VXSSRUWHUV¶�GDWD�VHFXUH�DQG�GR� not sell it or share it for marketing purposes. We have voluntarily registered with the Fundraising Regulator. Although our doors were not open, we maintained contact with a loyal and enthusiastic group of volunteers with a weekly email (called TR3) which kept everyone (staff and volunteers) informed of what was happening and gave a platform for shared communications.

Achievements in the year

In the last part of March 2020, the UK was engulfed by the Coronavirus pandemic and TRP closed its doors temporarily on 21 March 2020, under the Health Protection (Coronavirus, Business Cover) Regulations 2020. A positive decision was taken to continue programming the stages to ensure that, when the moment was right, we could re-open with vibrant, quality performances. This involved a considerable amount of communication, collaboration, and rescheduling.

7KH�KLJKOLJKWV�RI�WKH�\HDU�LQFOXGHG��

On stage

Working closely with Qdos and supported by the National Lottery, the annual panto went ahead despite all the challenges of the pandemic. Robinson Crusoe performed to socially distanced audiences, whilst in the Drum families enjoyed The Gingerbread Man (Stuff & Nonsense) and The Thing That Came From Over There (Gonzo Moose). Nearly 16,000 people enjoyed the shows before TRP was forced to close its doors once again, just a couple of days before the runs were due to end. The response from our audiences was superb with everyone feeling safe and enjoying some festive cheer after a difficult period.

The downtime provided an opportunity to continue relationships with companies such as Paines Plough, Frantic Assembly and Francesca Moody Productions, building exciting co-production opportunities for 202122.

Talent Development

Our Talent Development Producer continued to support the work of early career artists and many individuals who have historically not been able to access more formal development programmes. The Lab Company (a year-long training programme for theatre-makers at the start of their career) met regularly, digitally, and began to create exciting new work, which will be presented in the Lab in July this year.

)XUWKHU�ZRUN�FRQWLQXHG�ZLWK�WKH�(JJER[� RXU�ZULWHUV¶�GHYHORSPHQW�SURJUDPPH ��ZLWK�VL[�GLYHUVH�ZULWHUV�� $OL[� Harris/Daisy Higman/Al Roberts/Sam Parker/Hattie Collins/Mich Sanderson) receiving ongoing support to develop their work.

We continued our support of the Lab Associates (a year-long, funded attachment for theatre-makers) who will now bring pieces to the drum in 2021-22.

:H�VXSSRUWHG�GLJLWDO�SHUIRUPDQFHV�RI�.LOO�WKH�&DW¶V� The House Never Wins , an interactive show about climate change. We delivered online mentoring with diverse artists including Ferri Feredouni, Michael Brooks and Toluwalope Fagbayi and collaborated on small scale, community led commissions with our partners, Plymouth Community Homes.

We provided support and space for the Art Weekender, which offered intriguing visual art in our windows, even whilst closed.

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THEATRE ROYAL (PLYMOUTH) LIMITED

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Engagement and Learning

The Big Lottery, BBC Children In Need, the Esmée Fairbairn Foundation, the Co-Creating Change Commission, the National Theatre, the Ragdoll Foundation and the Norman Family Charitable Trust all gave generously to support continuous work in the strange circumstances of this year. This meant that amongst other projects the workshops for Voices (choir), the Young Company and the Young Company Hubs (bringing youth theatre to local secondary schools) were all able to continue to meet throughout the year, either live (when permissible) or on screen. This was a massive achievement in the context of a pandemic.

We ran a summer school in Devonport Park, taking advantage of the lull in restrictions and reconnecting with young people at the first opportunity.

Our Space (for people living with multiple and complex needs) met even more regularly than normal to reflect the needs of this particular group. Attendance was always good and by co-creating change, enabled some adults to become Engagement & Learning practitioners. Their work culminated with an e-book reflecting their lockdown experience through poetry, prose, and pictures.

Funky Llama (a platform for disabled artists) met regularly, mostly on-line due to the vulnerability of the group. In February we hosted our most successful Funky Llama Club Night with 663 participants enjoying the virtual experience, including people joining in from the USA.

The With Flying Colours programme, funded by Arts Council England, continued, enabling us to work with local schools where possible under lockdown conditions.

Financial review

The financial review should be read in the context of the current Coronavirus pandemic, during which theatres across the UK have closed their doors. Throughout the last year we worked on a rolling programme basis, attempting to reschedule rather than cancel performances and activities in the hope that we could be ready at short notice to recommence.

We were successful in our bids for the ACE Emergency Fund, Culture Recovery Fund Round 1 and (post year-end) Culture Recovery Fund Round 2. The enormous support of Arts Council England (ACE) and the Department for Culture, Media & Sport has enabled us to weather the storm. This means that, as audiences slowly return in 2021-22, we still have sufficient reserves potentially to manage a year of below average audience attendance.

Plymouth City Council and ACE both continued their annual commitment to the theatre providing much appreciated, essential funds during this difficult year.

In addition, we have used the Coronavirus Job Retention Scheme to retain staff (and the associated skills) to ensure we were able to reopen when it was safe and permissible to do so.

At the end of the year we received a generous grant from The Garfield Weston Foundation to develop, produce and stage a musical based on the NHS ± NHS ± The Musical . This is programmed for later in 2021.

During the year we continued to work closely with The Results Group (TRG) to sustain our customer loyalty. Much of this work centred on ticket purchasing which continued despite the absence of work on the stages. The work also considered how the Development department engages with our corporate sponsors and members. This resulted in an Emergency Appeal which realised over £140k. Further work will now need to EH�GRQH�WR�XQGHUVWDQG�WKH�LPSDFW�RI�WKH�SDQGHPLF�RQ�RXU�FRUSRUDWH�VSRQVRUV¶�DELOLW\�WR support the Charity in the longer term and the more general impact of economic uncertainty on our audiences and other supporters. Much as the Lyric depends on producer confidence, so Commercial Build is subject to the strength and confidence of the West End and the cultural confidence of the country. After introducing a Covid-secure working environment, Commercial Build has continued to function for most of the year. Work has been slow

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THEATRE ROYAL (PLYMOUTH) LIMITED

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

and laborious with social distancing and continuous cleaning but during the year sets were built for Matthew %RXUQH¶V�1XWFUDFNHU , Hairspray (at the London Coliseum) and Oliver (for Cameron Mackintosh Ltd). Several scenic workshops have closed their doors for good and now, as we emerge from the pandemic, the lack of capacity in the industry is starting to be felt. A large amount of personal protective equipment stocked by Commercial Build was donated to the NHS during the first phase of the pandemic.

In considering both cost reduction and the re-opening needs of theatre, TRP went into redundancy consultation in August 2020. 110 staff were made redundant from across virtually all departments. This was a shattering experience for the whole organisation, a theatre that works so collaboratively and values every team.

Catering & Retail has been unable to trade during the year. The whole team was part of the redundancy consultation process. The stock held at 1 April 2020 was given to several local charities dealing with homelessness and food poverty. Usually Talklight Ltd (the Catering & Retail trading subsidiary) would gift aid profits to the Charity. In 2019-20 some profits were retained to create a reserve to cover any potential trading losses in 2020-21. Catering & Retail is an essential part of the business model for TRP. It will be reestablished as soon as economically and physically viable.

Our Engagement & Learning work is a principal charitable purpose and creates a gateway into our talent development work. We invested £349k in this work (including talent development) and many other significant, individual projects were supported by generous Trusts & Foundations as detailed in note 22 to these accounts. These grants are essential to the continuation of this wide-reaching work, allowing both range and reach to be expanded. We are grateful that Trusts & Foundations have continued to support us during the pandemic both with the granting of funds and with the flexibility of conditions, allowing us to deliver in new or digital formats. Where grants are given for specific projects they are held within restricted funds (see below).

We used the period of closure to carry out a number of long-awaited and overdue infrastructure projects. 7KHVH�SURMHFWV�DUH�QRW�SRVVLEOH�ZKHQ�WKH�WKHDWUH�LV�LQ�µVKRZ�PRGH¶�

In January 2020 we made a substantial investment in the IT infrastructure of the Charity. Upgrading telephony, hardware and software means we were able to maintain our key functions with teams working from home for the whole of 2020-21. The timing of the upgrade, in retrospect, could not have been more fortuitous.

During the year we considered the potential impact of Brexit. Whilst the long-term implications (for example, for VAT, theatre tax relief and ACE funding) are as yet unquantifiable, we are satisfied that the immediate impact on the Charity is minimal and does not pose a substantial risk to the on-going operation of the theatre. The Charity has a general fund reserve (unrestricted) of £1.2m (2020: £1.7m). The level of the reserves is reviewed annually and is considered to be the appropriate level of funds, as determined by the Board of 7UXVWHHV��UHTXLUHG�WR�PHHW�WKH�&KDULW\¶V�DUWistic, creative and social objectives for a period of eighteen months and recognises any additional known financial risks for the organisation. The Trustees have agreed that at no point should the total designated and unrestricted reserves fall below the funds required to wind up the Charity. At 31 March 2021 this minimum amount was £1.3m.

Designated funds are unrestricted funds that have been earmarked by the Board of Trustees for particular purposes. Designated reserves have been created to fund significant projects that all sXSSRUW�WKH�&KDULW\¶V� objectives and that will ensure the organisation and its assets are in good shape for the future.

With the arrival of the Coronavirus pandemic and a period of uncertainty, the designated reserves have been reviewed by the Board of Trustees and certain reserves have been highlighted as available for general use if the need arises. The use of these designated reserves would result in the delay or cancellation of planned projects.

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THEATRE ROYAL (PLYMOUTH) LIMITED

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Restricted funds are to be used for specific purposes. These funds have been generated by capital projects VXFK�DV�WKH�EXLOGLQJ�RI�WKH�&KDULW\¶V�3URGXFWLRQ� �/HDUQLQJ�&HQWUH�DW�75���D�&DSLWDO�$SSHDO��Whe Regeneration Project and the TRAC Legacy and as such they will cover the future depreciation of the resulting assets. Restricted funds also include specific grants provided for Engagement & Learning work. The use of these funds is restricted by the original intent of the donation or grant funding.

Further details about the reserves held can be found in note 22 to these accounts. The Board of Trustees agreed (as part of the business plan for 2018-22) that any surpluses in the year, over and above the required general funds, will be set aside to fund our own producing. This is shown as µDeferred Artistic FundV¶�DQG�ZLOO� support a planned programme of work, subject to the development of the impact of the pandemic.

By monitoring cash flow, an assessment of short to medium cash needs allows the surplus to be invested. The Charity seeks to produce the best financial return within a low risk environment. As a proportion of the assets are held pending payment on to third parties, capital preservation is of paramount importance. Deposits are placed with Lloyds on varying timescales (32 days to one year).

In delivering the charitable objectives, the Trustees are mindful of the risks involved and have reviewed these risks and the plans to mitigate them, as part of the overall planning process. The Risk Register is reviewed regularly by both the Senior Management and WKH�7UXVWHHV���7KH�SDQGHPLF�WRXFKHV�DOO�SDUWV�RI�WKH�&KDULW\¶V� ambitions and operations and is implicit within all areas of risk that have been identified.

Key identified risks are:

Outbreak of infectious disease, mitigated by:

Sudden loss of show income, mitigated by:

Significant use of reserves, mitigated by:

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THEATRE ROYAL (PLYMOUTH) LIMITED

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Looking forward

The Coronavirus pandemic has impacted the delivery of the 2018-22 business plan in 2020-21 and is likely to continue to do so (to a greater or lesser extent) for the next year or two. Whilst the core ambitions and objectives are unchanged, the scale, method and timing of delivery will have to respond to the exceptional environment in which we find ourselves.

TRP is now working on a business plan for 2022-23 which will form a transition to the longer-term business plan for 2023-27. This allows for adjustment to a post-pandemic world and recognition of all the learnings of the last year. It also provides an opportunity to ensure cRPSOHWH�DOLJQPHQW�ZLWK�WKH�/HW¶V�&UHDWH�WHQ-year strategy of ACE.

(QJDJHPHQW�ZRUN�KDV�DOZD\V�EHHQ�FHQWUDO�WR�753¶V�DFWivity whether it is engagement with audiences, creatives, companies, community, or industry. Now there is potential to join up all these strands so that engagement runs horizontally and vertically through all elements of our work whether it is a co-production or a community group. There are exciting plans afoot.

The following plans are crucial to the success of the Charity in fulfilling its charitable objectives:

:H�ZLOO�KHOS�SURYLGH�µ*UHDW�$UW�IRU�(YHU\RQH¶�LQ�WKH�UHJLRQ� We usually do this by maintaining an exceptionally broad and diverse spectrum of work on our stages and in our community. With the constraints of the pandemic we have continued to offer this through digital platforms and (when permitted) outdoor events. The timing of this work in the coming year is uncertain but the active programming that we continue to carry out will ensure that when it is safe and legal to do so we will be able to deliver a valuable programme of quality musicals, dance and plays.

We will support a comprehensive talent development pathway, consolidating existing initiatives and developing new programmes, where possible. This will see more investment in the Lab and a clear ambition to support the development of work for the Drum.

We will increase audience engagement, consistently seeking out new audiences for a wide spectrum of work and drive deeper engagement with existing audiences. The use of digital technology will support this ZRUN��LQFUHDVLQJ�WKH�&KDULW\¶V�UHOHYDQFH�DQG�UHDFK�DQG�HQFRXUDJLQJ�GLYHUVLW\��

We will aim to exemplify 3O\PRXWK¶V�JURZLQJ�FXOWXUDO�FRQILGHQFH. Whilst travel restrictions have thwarted our ambitions to be part of the international Mayflower celebrations, we remain committed to a new, largescale Mayflower community production, in respect of these celebrations, involving Plymouth and US participants. We will continue to seek opportunities to exploit the focus that Messenger (our Joseph Hillier sculpture) has brought to Plymouth.

7KH�%RDUG�RI�7UXVWHHV�ZLOO�UHYLHZ�WKH�&KDULW\¶V�FXUUHQW� leadership arrangements and oversee the succession of its current leadership for a smooth transition. Following the year end a far-reaching recruitment process was carried out for new leadership.

We will implement best practice in diversifying the workforce and Board of Trustees in the context of the regional demography. The Charity has set up an Inclusivity and Diversity Sub-Committee to drive this ambition and will set realistic targets for achieving this diversification, ensuring that both the workforce and the Board are reflective of the community.

We will demonstrate operational resilience by balancing the revenue account in the face of potential reduced public funding, the devastating impact of the pandemic and potential loss of audience confidence.

2020-21 is the third year of our four-year funding agreement with Arts Council England (ACE). This provides £1.1m each year, being a standstill position compared to the previous funding agreement. In addition, to

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THEATRE ROYAL (PLYMOUTH) LIMITED

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

counter the impacts of the pandemic, ACE provided a further £728k of CRF2 funding after the year end to support TRP until such time live theatre performances can take place without social distancing.

2020-21 is also the final year of a four-year agreement with Plymouth City Council (PCC) which provides £415k each year. PCC has indicated a willingness to continue funding TRP in future years, although at a reduced level of £315k. We will continue to demonstrate to the leadership of PCC the value that TRP brings to Plymouth and seek an on-going commitment from PCC.

Disclosure of information to auditors

Auditors

The auditors, Bishop Fleming LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees. Approved by order of the Board of Trustees and signed on its behalf by

Nicholas Buckland OBE Chairman

Theatre Royal (Plymouth) Limited Theatre Royal Royal Parade Plymouth PL1 2TR 20.7.2021 DATE�����..

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THEATRE ROYAL (PLYMOUTH) LIMITED

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2021

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the Board of Trustees and signed on its behalf by:

Nicholas Buckland OBE (Chair of Trustees) Date: 20 July 2021

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THEATRE ROYAL (PLYMOUTH) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THEATRE ROYAL (PLYMOUTH) LIMITED

Opinion

We have audited the financial statements of Theatre Royal (Plymouth) Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities (Incorporating Income and Expenditure Account), the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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THEATRE ROYAL (PLYMOUTH) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THEATRE ROYAL (PLYMOUTH) LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report including the Strategic Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Page 12

THEATRE ROYAL (PLYMOUTH) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THEATRE ROYAL (PLYMOUTH) LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The procedures undertaken in order to identify and assess risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, are as follows:

As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to income recognition, with a particular risk in relation to year-end cut off. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Charitable Group and Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Charities SORP (FRS 102) - Accounting and Reporting by Charities and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Charitable Group and Company's ability to operate or to avoid a material penalty. These include data protection regulations, health and safety regulations, licensing acts and employment legislation.

Audit response to risks identified

As a result of performing the above procedures, we have completeness and cut-off of revenue recognition as a key audit matter related to the potential risk of fraud. Our procedures to respond to risks identified included the following:

Page 13

THEATRE ROYAL (PLYMOUTH) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THEATRE ROYAL (PLYMOUTH) LIMITED (CONTINUED)

We also communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Use of our report

This report is made solely to the charitable company's members, 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 state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Pamela Tuckett FCA DChA (Senior Statutory Auditor)

for and on behalf of

Bishop Fleming LLP Chartered Accountants Statutory Auditors Salt Quay House

4 North East Quay Sutton Harbour Plymouth PL4 0BN

23 July 2021

Page 14

THEATRE ROYAL (PLYMOUTH) LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Donations and legacies
4
Charitable activities
Other trading activities
6
Investments
7
Total income
Expenditure on:
Raising funds
Charitable activities
8
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£000
4,363
883
-
4
5,250
447
4,509
4,956
294
3,495
294
3,789		 Restricted
funds
2021
£000
2,601
-
-
-
2,601
-
2,663
2,663
(62)
11,725
(62)
11,663		 Total
funds
2021
£000
6,964
883
-
4
7,851
447
7,172
7,619
232
15,220
232
15,452		 Total
funds
2020
£000
2,626
12,325
1,632
75
16,658
1,463
15,741
17,204
(546)
15,766
(546)
15,220

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 20 to 45 form part of these financial statements.

Page 15

THEATRE ROYAL (PLYMOUTH) LIMITED REGISTERED NUMBER:01560651 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
13
Heritage assets
14
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
19
Provisions for liabilities
Total net assets
Charity funds
Restricted funds
21
Unrestricted funds
Designated funds
21
General funds
21
Total unrestricted funds
21
Total funds		 42
360
7,853
8,255
(3,727)
2,637
1,152		 2021
£000
11,229
563
11,792
4,528
16,320
(560)
(308)
15,452
11,663
3,789
15,452		 68
263
6,991
7,322
(2,795)
1,716
1,779		 2020
£000
11,747
583
12,330
4,527
16,857
(1,370)
(267)
15,220
11,725
3,495
15,220

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Nicholas Buckland OBE (Chair of Trustees) Date: 20 July 2021

The notes on pages 20 to 45 form part of these financial statements.

Page 16

THEATRE ROYAL (PLYMOUTH) LIMITED REGISTERED NUMBER:01560651

COMPANY STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2021

Note
Fixed assets
Tangible assets
13
Heritage assets
14
Investments
15
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
19
Provisions for liabilities
Total net assets		 37
372
7,836
8,245
(3,724)		 2021
£000
11,229
563
-
11,792
4,521
16,313
(560)
(308)
15,445		 40
258
6,966
7,264
(3,043)		 2020
£000
11,746
583
-
12,329
4,221
16,550
(1,370)
(267)
14,913

Page 17

THEATRE ROYAL (PLYMOUTH) LIMITED REGISTERED NUMBER:01560651 COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 MARCH 2021

Note
Charity funds
Restricted funds
21
Unrestricted funds
Designated funds
21
General funds
21
Total unrestricted funds
21
Total funds		 2,637
1,145		 2021
£000
11,663
3,782
15,445		 1,553
1,635		 2020
£000
11,725
3,188
14,913

The Company's net movement in funds for the year was £532 (2020 - £(477)).

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Nicholas Buckland OBE

(Chair of Trustees) Date: 20 July 2021

The notes on pages 20 to 45 form part of these financial statements.

Page 18

THEATRE ROYAL (PLYMOUTH) LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£000
1,064
4
(206)
(202)
862
6,991
7,853		 2020
£000
(2,018)
75
(484)
(409)
(2,427)
9,418
6,991

The notes on pages 20 to 45 form part of these financial statements

Page 19

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. GENERAL INFORMATION

The company is limited by guarantee and has no issued share capital. The liability of its members shall not exceed £1 each. The registered office address is Theatre Royal, Royal Parade, Plymouth, Devon, PL1 2TR.

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Theatre Royal (Plymouth) Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (Incorporating Income and Expenditure Account) (SOFA) and Consolidated Statement of Financial Position consolidate the financial statements of the Company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

The financial statements use British Pounds Sterling as the presentational currency, and are rounded to the nearest £1,000 throughout.

Page 20

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. ACCOUNTING POLICIES (continued)

2.2 GOING CONCERN

The Trustees and Executive have completed detailed cash flow forecasts and budgets that support the going concern basis for these accounts. Covid-19 has had a significant impact on the theatre sector. The stages of TRP were closed for most of the year to 31 March 2021 with productions over a reduced Christmas period being the only staged events. Engagement and Learning work and some set build work has continued but the stages have remained dark for most of the time.

Generous contributions and support in the form of the Arts Council England’s Emergency Fund, the Culture Recovery Fund, job support through the Coronavirus Job Retention Scheme and generous donations from supporters have enabled the Theatre to retain a level of reserves which will be invaluable as it begins to rebuild activity on its stages. Although the Theatre had to go through the unprecedented and painful experience of making posts redundant in order to reduce its cost base, through the CJRS the Theatre has been able to retain many of its core team many of whom have skills and experience particular to the sector and difficult to re-recruit.

The forecasts include key assumptions based on the current programme which includes a significant number of deferred productions for which ticket sales have already been made. Although the Theatre has, since April 2021, still had periods when it has not been able to open and then reopen but with socially distanced audiences, the gradual lifting of restrictions leads to he expectation of a return to fuller houses and economically viable productions which will enable it to continue as a going concern.

The following assumptions must be understood in forming this opinion;

• As Covid-19 restrictions are lifted the Theatre will be able to reopen to potentially full capacity. To ensure that the going concern accounting basis is reasonable the cashflow forecasts recognise that some productions will experience limited capacity until confidence levels begin to rise across all of our audiences.

Page 21

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. ACCOUNTING POLICIES (continued)

2.2 GOING CONCERN (CONTINUED)

2.3 INCOME

All income is recognised once the Group has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Consolidated Statement of Financial Activities (Incorporating Income and Expenditure Account) on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Page 22

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. ACCOUNTING POLICIES (continued)

2.4 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 INTEREST RECEIVABLE

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

2.7 HERITAGE ASSETS

Where heritage assets have been purchased, they are initially recognised at cost. After recognition, under the cost model, heritage assets are measured at cost less any accumulated depreciation and any accumulated impairment losses.

The estimated useful life is:

Heritage Assets - 30 years

Page 23

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. ACCOUNTING POLICIES (continued)

2.8 INVESTMENTS

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities (Incorporating Income and Expenditure Account).

Investments in subsidiaries are valued at cost less provision for impairment.

2.9 STOCKS

Stocks are valued on a first in first out basis at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.10 DEBTORS

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.11 CASH AT BANK AND IN HAND

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.12 LIABILITIES

Liabilities and provisions are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Group anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities (Incorporating Income and Expenditure Account) as a finance cost.

2.13 FINANCIAL INSTRUMENTS

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.14 OPERATING LEASES

Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities (Incorporating Income and Expenditure Account) on a straight line basis over the lease term.

Page 24

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. ACCOUNTING POLICIES (continued)

2.15 PENSIONS

The Group operates two defined contribution pension schemes and the pension charge represents the amounts payable by the Group to the funds in respect of the year.

2.16 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Group makes estimates and assumptions concerning the future, including provisions recognised and the useful life of assets. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgement:

Provisions in their nature have a degree of estimation uncertainty due to their size and nature. Management use their knowledge and previous experience to best estimate the amount of provisions on future loss making shows and for delapidations and repairs required under the terms of property leases.

The estimated useful life of heritage assets has been based on management's best estimate. However, it is subject to uncertainty given the types of assets held.

Page 25

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

4. INCOME FROM DONATIONS AND LEGACIES

Unrestricted
funds
2021
£000
GRANTS
Arts Council England - Core
1,207
Arts Council England - Emergency Funding
806
Arts Council England - Culture Recovery Fund
1,683
Arts Council England - Other
5
Plymouth City Council
415
Engagement & Learning grants
-
CJRS Grants
-
Garfield Weston Foundation
-
Donations
161
Other grants
1
Development income
85
4,363
Unrestricted
funds
2020
£000
GRANTS
Arts Council England
1,185
Plymouth City Council
415
Engagement & Learning grants
-
Donations
33
Other grants
21
Development income
294
1,948		 Restricted
funds
2021
£000
-
-
-
-
-
480
1,810
301
-
-
10
2,601
Restricted
funds
2020
£000
-
-
640
28
-
10
678		 Total
funds
2021
£000
1,207
806
1,683
5
415
480
1,810
301
161
1
95
6,964
Total
funds
2020
£000
1,185
415
640
61
21
304
2,626

Page 26

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

5. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted
funds		 Unrestricted
funds		 Total
funds		 Total
funds
2021 2021 2020
£000 £000 £000
Box office 365 365 12,215
Theatre rentals 113 113 86
Co-producers'contributions 2 2 37
Commercial build activity 364 364 1,238
Education - - 3
Other 39 39 78
TOTAL 2021 883 883 13,657
All of the prior year amounts were unrestricted.

6. INCOME FROM OTHER TRADING ACTIVITIES Income from non charitable trading activities

Catering & retailing
Other income		 Total
funds
2021
£000
-
-
-		 Total
funds
2020
£000
1,629
3
1,632

7. INVESTMENT INCOME

Unrestricted Total Total
funds funds funds
2021 2021 2020
£000 £000 £000
Investment income 4 4 75

Page 27

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Summary by fund type

Unrestricted
funds
2021
£000
Theatre productions and education
4,509
Unrestricted
funds
2020
£000
Theatre productions and education
14,645		 Restricted
funds
2021
£000
2,663
Restricted
funds
2020
£000
1,096		 Total
funds
2021
£000
7,172
Total
funds
2020
£000
15,741

9. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Theatre productions and education
Theatre productions and education		 Activities
undertaken
directly
2021
£000
4,924
Activities
undertaken
directly
2020
£000
13,345		 Support
costs
2021
£000
2,248
Support
costs
2020
£000
2,396		 Total
funds
2021
£000
7,172
Total
funds
2020
£000
15,741

Page 28

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

ANALYSIS OF SUPPORT COSTS

Staff costs
Depreciation
Marketing, development and hospitality
Finance
Cleaning
IT and administration
Release of MMI provision (see note 20)
Loss of disposal of fixed assets
Governance costs		 Total
funds
2021
£000
1,205
706
17
124
25
104
-
38
29
2,248		 Total
funds
2020
£000
1,360
715
80
116
67
223
(205)
-
40
2,396

10. AUDITORS' REMUNERATION

The auditors' remuneration amounts to an auditor fee of £21,000 ( 2020 - £24,000 ) , and non-audit services comprising corporation tax computations and financial statement preparation of £8,000 (2020 - £12,000).

11. STAFF COSTS

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2021
£000
3,964
284
136
4,384		 Group
2020
£000
4,876
382
168
5,426		 Company
2021
£000
3,652
271
129
4,052		 Company
2020
£000
4,256
348
153
4,757

Page 29

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

11. STAFF COSTS (CONTINUED)

The average number of persons employed by the Company during the year was as follows:

Management and administration
Venue staff
Production staff
Catering staff
Cast
Part-time and casual staff		 Group
2021
No.
24
20
53
62
-
151
310		 Group
2020
No.
25
18
51
65
2
144
305		 Company
2021
No.
24
20
53
-
-
151
248		 Company
2020
No.
25
18
51
-
2
144
240

The average headcount expressed as full-time equivalents was:

Management and administration
Venue staff
Production staff
Catering staff
Part-time and casual staff		 Group
2021
No.
19
15
50
6
63
153		 Group
2020
No.
23
20
53
18
69
183		 Company
2021
No.
19
15
50
-
63
147		 Company
2020
No.
23
20
53
-
69
165

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2021 2020
No. No.
In the band £70,001 - £80,000 1 1
In the band £140,001 - £150,000 - 1
In the band £210,001 - £220,000 1 1

Total remuneration paid to key management personnel (defined as executive director and senior managers who held office for all or part of the year) amounted to £402,932 (2020: £460,000).

Page 30

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

12. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 31 March 2021, no Trustee expenses have been incurred (2020 - £NIL).

13. TANGIBLE FIXED ASSETS

GROUP

COST
At 1 April 2020
Additions
Disposals
At 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for the year
On disposals
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 Long-term
leasehold
property
£000
18,097
22
(50)
18,069
6,990
523
(12)
7,501
10,568
11,107		 Equipment
& Motor
Vehicles
£000
2,087
184
-
2,271
1,447
163
-
1,610
661
640		 Total
£000
20,184
206
(50)
20,340
8,437
686
(12)
9,111
11,229
11,747

Page 31

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13. TANGIBLE FIXED ASSETS (CONTINUED)

COMPANY

COST
At 1 April 2020
Additions
Disposals
At 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for the year
On disposals
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020
14.
HERITAGE ASSETS
GROUP AND COMPANY
Assets recognised at cost		 Long-term
leasehold
property
£000
18,097
22
(50)
18,069
6,990
523
(12)
7,501
10,568
11,107		 Equipment
& Motor
Vehicles
£000
2,079
184
-
2,263
1,439
163
-
1,602
661
640		 Total
£000
20,176
206
(50)
20,332
8,429
686
(12)
9,103
11,229
11,747
Carrying value at 1 April 2020
Depreciation
Net book value at 31 March 2020
Analysis of heritage asset transactions		 Heritage
asset
2021
£000
583
(20)
563

Page 32

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. HERITAGE ASSETS (CONTINUED)

GROUP AND COMPANY

PURCHASES
Heritage asset
TOTAL ADDITIONS
CHARGE FOR
DEPRECIATION
Heritage asset
TOTAL CHARGE FOR
IMPAIRMENT		 2021
£000
-
-
(20)
(20)		 2020
£000
25
25
(20)
(20)		 2019
£000
-
-
-
-		 2018
£000
-
-
-
-		 2017
£000
-
-
-
-

Page 33

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

15. FIXED ASSET INVESTMENTS

PRINCIPAL SUBSIDIARY

The following was a subsidiary of the Charity:

Names Company Holding Registered office or principal
number place of business
Talklight Limited 01572960 100% Theatre Royal, Royal Parade,
Plymouth, PL1 2TR
Principal activity Class of Included in
shares consolidation
The company Ordinary Yes
provides retailing,
bar, and catering
facilities.

The financial results of the subsidiary for the year were:

Names Income Expenditure Loss for the Net assets
£000 £000 period £000
£000
Talklight Limited 230 (366) (136) 9

Page 34

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. STOCKS

Group Group Company Company
2021 2020 2021 2020
£000 £000 £000 £000
Finished goods and goods for resale 42 68 37 40

17. DEBTORS

DUE WITHIN ONE YEAR
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2021
£000
147
-
165
48
360		 Group
2020
£000
178
-
16
69
263		 Company
2021
£000
147
17
160
48
372		 Company
2020
£000
176
-
13
69
258

18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2021
£000
42
-
531
591
2,563
3,727		 Group
2020
£000
406
-
444
989
956
2,795		 Company
2021
£000
42
-
531
590
2,561
3,724		 Company
2020
£000
384
296
437
988
938
3,043

Deferred income represents money received in advance for tickets to shows taking place in a future period. Deferred ticket sales have been split out between over and under 1 year where appropriate with refrence to the Theatre programme.

19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Group Company Company
2021 2020 2021 2020
£000 £000 £000 £000
Accruals and deferred income 560 1,370 560 1,370

Page 35

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

20. PROVISIONS

GROUP AND COMPANY

At 1 April 2020
Additions
Amounts used		 Dilapidation
Provisions
£000
141
-
-
141		 Show
Provisions
£000
126
167
(126)
167		 Total
£000
267
167
(126)
308

Dilapidation provisions are made to account for expenditure necessary to ensure leased buildings are returned in accordance with the terms of the lease contract.

Show provisions are made in respect of contracted shows where the Trustees' best estimate indicates a forecast deficit.

The provisions are by nature estimates and as such the actual amount of expenditure may vary from that provided for above.

Page 36

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

21. STATEMENT OF FUNDS STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED FUNDS
DESIGNATED FUNDS
Capacity Building
Deferred Artistic Funds
Cultural Exemption Reserve
Mayflower Reserve
Website Development Reserve
Cafe Refurbishment Reserve
IT & Telephony Upgrade
Reserve
Drum Refurbishment Reserve
Digital Strategy Reserve
MMI fund
Flood repairs
Staff obligations
Post Covid support
GENERAL FUNDS
General Funds
TOTAL UNRESTRICTED
FUNDS
RESTRICTED FUNDS
Production & Education Centre
Capital Appeal Fund
Engagement & Learning
Regeneration Project
TRAC Legacy Fund
TRP Christmas Appeal
Joan Lucas Fund
Development
CJRS Grants
Garfield Weston Foundation
Grant		 Balance at 1
April 2020
£000
187
524
300
200
47
93
70
50
40
205
-
-
-
1,716
1,779
3,495
4,634
296
321
6,417
13
29
5
10
-
-		 Income
£000
-
-
-
-
-
-
-
-
-
-
106
-
-
106
5,144
5,250
-
-
480
-
-
-
2
8
1,810
301		 Expenditure
£000
(45)
-
(300)
-
4
-
-
-
-
-
(106)
-
-
(447)
(4,509)
(4,956)
(166)
(124)
(247)
(293)
(11)
-
-
(12)
(1,810)
-		 Transfers
in/out
£000
-
-
-
-
(41)
(93)
(70)
100
19
-
-
1,327
20
1,262
(1,262)
-
-
-
-
-
-
-
-
-
-
-		 Balance at
31 March
2021
£000
142
524
-
200
10
-
-
150
59
205
-
1,327
20
2,637
1,152
3,789
4,468
172
554
6,124
2
29
7
6
-
301

Page 37

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

21. STATEMENT OF FUNDS (CONTINUED) STATEMENT OF FUNDS - CURRENT YEAR (continued)

TOTAL OF FUNDS

Balance at 1
April 2020
£000
11,725
15,220		 Income
£000
2,601
7,851		 Expenditure
£000
(2,663)
(7,619)		 Transfers
in/out
£000
-
-		 Balance at
31 March
2021
£000
11,663
15,452

Page 38

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

21. STATEMENT OF FUNDS (CONTINUED)

STATEMENT OF FUNDS - PRIOR YEAR

UNRESTRICTED FUNDS
DESIGNATED FUNDS
Organisational Review Fund
Capacity Building
Deferred Artistic Funds
Cultural Exemption Reserve
Mayflower Reserve
Website Development Reserve
Cafe Refurbishment Reserve
IT & Telephony Upgrade
Reserve
Drum Refurbishment Reserve
Digital Strategy Reserve
MMI fund
GENERAL FUNDS
General Funds - all funds
General Funds
TOTAL UNRESTRICTED
FUNDS
RESTRICTED FUNDS
Production & Education Centre
Capital Appeal Fund
Engagement & Learning
Regeneration Project
TRAC Legacy Fund
TRP Christmas Appeal
Joan Lucas Fund
Development		 Balance at
1 April 2019
£000
20
298
700
300
200
100
125
70
50
50
-
1,913
-
1,710
1,710
3,623
4,800
463
177
6,669
24
8
2
-		 Income
£000
-
-
-
-
-
-
-
-
-
-
-
-
-
15,980
15,980
-
-
-
640
-
-
23
4
11		 Expenditure
£000
(20)
(111)
(176)
-
-
(53)
(32)
-
-
(10)
-
(402)
-
(15,706)
(15,706)
(16,108)
(166)
(167)
(496)
(252)
(11)
(2)
(1)
(1)		 Transfers
in/out
£000
-
-
-
-
-
-
-
-
-
-
205
205
-
(205)
(205)
-
-
-
-
-
-
-
-
-		 Balance at
31 March
2019
£000
-
187
524
300
200
47
93
70
50
40
205
1,716
-
1,779
1,779
3,495
4,634
296
321
6,417
13
29
5
10

Page 39

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

21. STATEMENT OF FUNDS (CONTINUED) STATEMENT OF FUNDS - PRIOR YEAR (CONTINUED)

TOTAL OF FUNDS Balance at
1 April 2019
£000
12,143
15,766		 Income
£000
678
678		 Expenditure
£000
(1,096)
(17,204)		 Transfers
in/out
£000
-
-		 Balance at
31 March
2020
£000
11,725
15,220

Page 40

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

21. STATEMENT OF FUNDS (CONTINUED)

The Designated Funds are aligned to projects which support the charitable aims of the Group.

The Capacity Building Fund will be used over the next two years for the partnership working with TRG.

The Cultural Exemption Reserve was set up to recognise the unusually high benefit of the cultural exemption for VAT due to advanced ticket sales in the Lyric. We have used this fund in 2020/21to establish a provision for the gross benefit of cultural exemption on all advanced ticket sales.

The Mayflower Reserve was established to earmark funds for a large scale community production originally planned for 2020 (and deferred now until 2022) to mark 400 years since the Mayflower set sail from Plymouth. The production is intended to involve participants from the USA which may include the Wampanoag Community. Following a number of applications for grant funding to support this project, it was considered prudent to put aside further funds to de-risk this internationally important work.

The Website Development Reserve was established to support a major upgrade of our website and bring it under more direct control. A small reserve has been retained for pending future developments, but we have been able to release the balance of the reserve as the work has been completed. A portion of this has been moved to the Digital Strategy Reserve (below).

The Café Refurbishment Reserve and the IT & Telephony Upgrade Reserve were established to support a major investment in our Front of House catering facilities and our internal IT and telephone systems. The IT work was completed early in 2020 and the work to develop the Café has been delayed indefinitely, so the remaining balances on these funds have been released.

The Drum Refurbishment Reserve was established to support works to upgrade our Drum stage and auditorium. Partly as a response to Covid-19 we have extended this project to allow for a much more flexible space and consequently have earmarked an additional £100k to enable us to carry out these major works in 2021/22.

In line with other organisations in the sector TRP is looking at ways in which we can harness the use of digital technology to create and share innovative work. We have allocated a further £19k to a Digital Strategy Reserve to carry forward into 2021/22.

The MMI Fund represents funds designated for the MMI contingent liability. For further details see note 26.

Following a flood in the theatre in 2020 we have received payment in advance from our insurers. The Flood Repairs Fund shows the insurance receipts matched to reclaimable expenditure with the balance of funds received being treated as deferred income.

The Trustees have been mindful of the challenges of the past year. Staff Obligations is a fund designated to reflect the total obligation to staff in the event of TRP having to close. Although we are confident that we remain a going concern this sum has been separately calculated and identified as part of our reserves policy, to ensure that a correct minimum level of reserve is maintained during this turbulent time.

Post Covid support is a small designated fund to deal with minor physical modifications which may be required to deal with the longer term impact of Covid-19.

The Restricted Reserves represent amounts raised by or received from third parties for capital or revenue projects. Restricted Funds in respect of the Regeneration Project and the Production & Education Centre consist primarily of grants and donations. The grants are secured on the assets to which they relate and are repayable in certain circumstances.

Page 41

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

STATEMENT OF FUNDS (CONTINUED)

The Charity is extremely grateful to the following supporters of our wide ranging programme of Engagement & Learning activities:

22. At 31
March 2020		 Income Expendi-
ture		 At 31
March 2021
£000 £000 £000 £000
Big Lottery Fund Grant-Our Space 14 31 (20) 25
Big Lottery Fund Grant-Funky Llama 78 61 (39) 100
The National Theatre 1 3 - 4
BBC Children in Need 9 26 (16) 19
Co-Creating Change - 24 (1) 23
The Esmée Fairbairn Foundation 23 27 (23) 27
The Andrew Lloyd Webber Foundation 10 - (2) 8
4 or More 4 - - 4
Ragdoll Foundation and Birmingham rep - 1 - 1
Arts Council England - With Flying Colours 181 250 (111) 320
Total core E&L activity funds 320 423 (212) 531
Mayflower funding;
National Heritage - 16 (1) 15
Arts Council - Art of the Possible 1 40 (33) 8
Total core E&L activity funds 321 479 (246) 554
Unrestricted
funds
2021
£000
Tangible fixed assets
465
Heritage assets
-
Current assets
7,918
Creditors due within one year
(3,727)
Creditors due in more than one year
(560)
Provisions for liabilities and charges
(308)
Difference
1
TOTAL
3,789		 Restricted
funds
2021
£000
10,764
563
336
-
-
-
-
11,663		 Total
funds
2021
£000
11,229
563
8,254
(3,727)
(560)
(308)
(1)
15,452

Page 42

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

22.
ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED)
ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR
Unrestricted
funds
2020
£000
Tangible fixed assets
617
Heritage assets
-
Current assets
7,310
Creditors due within one year
(2,795)
Creditors due in more than one year
(1,370)
Provisions for liabilities and charges
(267)
TOTAL
3,495
23.
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW
ACTIVITIES
Net income/expenditure for the year (as per Statement of Financial
Activities)
ADJUSTMENTS FOR:
Depreciation charges
Dividends, interests and rents from investments
Loss on the sale of fixed assets
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Increase/(decrease) in provisions
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES		 Restricted
funds
2020
Total
funds
2020
£000
£000
11,130
11,747
583
583
12
7,322
-
(2,795)
-
(1,370)
-
(267)
11,725
15,220
FROM OPERATING
Group
Group
2021
2020
£000
£000
232
(546)
706
714
(4)
(75)
38
-
26
(13)
(97)
202
122
(2,331)
41
31
1,064
(2,018)

Page 43

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

24. ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash in hand
TOTAL CASH AND CASH EQUIVALENTS		 Group
2021
£000
7,853
7,853		 Group
2020
£000
6,991
6,991

25. ANALYSIS OF CHANGES IN NET DEBT

Cash at bank and in hand At 1 April
2020
£000
6,991
6,991		 Cash flows
£000
862
862		 At 31 March
2021
£000
7,853
7,853

26. CONTINGENT LIABILITIES

During he 1990s the theatre entered into a mutual insurance agreement with Municipal Mutual Insurance (MMI). MMI has since entered into a Scheme of Arrangement and this Scheme has raised a levy on the total payments made under its policies as at December 2013. There has been no further action on these levies for several years and there have been no further demands for payment. There is a designated fund allocated to cover the possibility of any successful demand for payment.

27. PENSION COMMITMENTS

The Group operates two defined contributions pension schemes. The assets of the schemes are held separately from those of the Group in independently administered funds. The pension cost charge represents contributions payable by the Group to the funds and amounted to £153,000 (2020: £164,000). Contributions totaling £17,000 (2020: £24,000) were payable to the fund at the reporting date and are included in creditors.

28. OPERATING LEASE COMMITMENTS

At 31 March 2021 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2021
£000
2
-
2		 Group
2020
£000
7
2
9		 Company
2021
£000
2
-
2		 Company
2020
£000
7
2
9

Page 44

THEATRE ROYAL (PLYMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

29. CONTINGENT ASSET

The Group has business interruption insurance and it has been confirmed that this will pay out as a result of interruption caused by Covid-19. At the year end no claims have been made. The indemnity period for the claim is for up to three years and claims will be made against this in the future.

30. RELATED PARTY TRANSACTIONS

Owing to the nature of the Charity and the composition of the Board of Trustees being drawn from local public and private sector organisations, transactions may take place with organisations in which the trustees have an interest. All transactions involving such organisations are conducted in accordance with the requirements of the Charitiy Commission, and with the Charity's financial regulations and normal procurement procedures relating to related party transactions.

The following related party transactions took place in the period:

The Charity procured services amounting to nil (2020: £25,575) from Mother Goose Films Limited, a company controlled by the daughter of the Chief Executive. There is no balance owing at the year end.

31. CONTROLLING PARTY

The Group is controlled by the Board of Trustees.

Page 45