Registered number.. 01560651 Charity number: 284545 THEATRE ROYAL (PLYMOUTH) LIMITED IA COMPANY LIMITED BY GUARANTEE TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Bishop Fleming THEATRE ROYAL IPLYMOUTHI LIMITED IA COMPANY LIMITED BY GUARANTEE) CONTENTS Page Reference and Administrative Details of tha Company, its Trustees and Advisers Trustees, Report Independent Auditor5. Rèport on the Financial Statements Consolldated Statement of Financial Activities 15 Consolidated Balance Sheet 16 Company Balance Sheet 17-18 Consolldated Statement of Cash Flows 19 Notes to the Financlal Ststements 20-46 THEATRE ROYAL IPLYMOUTHI LIMITED IA COMPANY LIMITED 8Y GUARANTEEI REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024 Trustees Dame Darcey Bussell DBE, Chair {appoinled 1 April 20231 Bronwen Lacey, Vice Chair Anjinder Kaur Bual Alastair Coomer CDG Sarah Fysh Shona Godefroy Lynda Gllelinski Emma-marie Huxham Andrew John Hendy Ibbs Imogen Kinchin (until 27 March 20241 Sarah McAdam Julie Nash J2mes Pidgeon Samra Said Hannah Sloggelt Dawn Marie Williams Company registered number 0156C1651 Charlty reglstered number 284545 Registered office Royal Parade Plymouth Devon PL12TR Chief Executive James Mackenzie-Blackman Independent audltors Bishop Fleming LLP Chartefftd Accountants Sall Quay House 4 North East Quay Sutton Harbour Plymouth PL4 OBN Bankors N8tWest Sl Andrews Cross Plymouth PL4 OHY Lloyds Bank 8 Royal Parade Plymouth PL1 1LX Solicito Womble Bond Dickinson Ballard House West Hoe Road Plymouth PL13AE Page 1 THEATRE ROYAL IPLYMOUTHI LIMITED IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2024 11 was with great sadness that we lost our trustee. Imogen Kinchin, on 27 March 2024, after living with cancer for nearly two years. We recogriise how impa¢tful Imogen was as a Trustee and are proud and gralttful to have worked with her. Her lega¢y will live on in all we do. The Trustees, who a￿ also directors of the company for the purposes of the Companies Act, present their annual report incorporating the strategic report and the audited consolid£led financia5 statements for the year ended 31 March 2024. The financial statements wmply with applicable A￿ountIng Standards in the United Kingdom, the Statement of Recommended Practice ISORPI applicable lo charities preparing their accounts in accordan￿ with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 (effective 1 January 20191, the Charities Act 2011 and the Companies Act 20Q6. 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- Dame Darcey Bussell DBE, Chair, appoinl&d l April 2023 Bronwen Lacey. Vice Chair, term extended lo 31 March 2025 Anjinder Bual, Alislair Coomer Sarah Fysh Shona Godefroy Lynda GrLelinski Emm8-Marie Huxham Andrew Ibbs Imogen Kinchin. until 27 M8rch 2024 Sarah McAdam Julie Nash James Pidgeon Samra Said Hannah Sloggell Dawn Williams Day-l04ay management of the Charity is delegated to the Executive, who were". James Mackenzie-Blackman, Chief Executive & Executive Producer Helen Costello, Chief Operating Officer James Greenacre, Director of Extemal Affaits, appointed I I September 2023 Liz King, Executive Director. Producing & Programming Suzi McGoldrick, Director of External Affairs. resigned 30 June 2023 Mandy Precious. Strategic Projects Director, resigned 31 nlay 2023. The 8oard of Trustees and Executive are supported by the following professional advisers.. Solicitors.. (Generall Womble Bond Dickinson, Ballard House, West Hoe Road, Plymouth, PL13AE IHRI Wolferslans. 60-66 North Hill, Plymouth, PL4 8EP Iconlracls) Bright Solicitors, 5-11, 5 Millbay Road, Plymouth PL1 3LF Bankers.. (Cuffent accounts) N81West, St Andrew's Cross, Plymouth, PL4 OHY {Deposit accounts) Lloyds, 8 Royal Parade, Plymouth PL1 1 LX Auditor.. Bishop Fleming LLP, Sall Quay House. Plymoulh PL4 OBN Page 2 THEATRE ROYAL (PLYMOUTHI LIMITED {A COMPANY UMITED BY GUARANTEEI TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 HOWWE GOVERN OURSELVES The Charity is a company limited by guarantee and is governed by ils Memorandum and Articles of Association. The Board of Trustees, acting in a voluntary capacity, has legal responsibility for the effective use of reSoUr￿S in meeting the Theatre's mission, deciding policy and for providing leadership and direction. It meets al least four limes a year. There are four Commillees which report directly lo the Board.. Committee Producin -￿[aMMIn￿_ External Affairs Audit, Finance & OJierations Inclusion Nominations Frequency of meelin9S Min 2 xpery.ear Min 2 x per year Min 4 x.per.year 1 x per year plus other times dictated by the need8 of the business 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 lo extend their term by one year under special ¢ircumslan¢es. In order lo give Conty'nuity in the ¢onlexl ol a significant number of new Trustees and the change of Chair, Bronwen Lacey has renewed her term under this provision. New Trustees are selected through open recruitment, which includes use of specialist agencies as well as adVe￿'SeMent in the regional press and social media. The Nominations Committee h8s a specific brief to Consider the diversity of the Board in any Trustee re¢wilmenl, in line with the organisation's Core values. In addition, particular emphasis is p18ced. at the lime of recruilmenl, on appointing individuals who can fulfil any identified skill gaps within the Trustee body. New appointees and existing Trustee8 are provided with an induction programme and, where appropriate, a range of other training opportunities to help them meet their responsibilities. During the year the Board amended the Memorandum & Articles lo allow for co-opted members. These members are not Ttuslees and do not have voting rights. They do, however, sit on the Commillees to provide additional view points and learn more about the role of Trustee. Al the year*nd there were three co-opted members who have all committed to a three-year term. Eliza Coulson, appointed 27 July 2023 Emma Lawrence. appointed 27 July 2023 James Woodhams. appointed 27 July 2023 The Charity has an Executive Team which report directly to the Board of Trustees. The Executive Team 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 charity. The remuneration level for key management personnel is set at the point of re¢ruitmenl wilh reference lo national market rates wilhiri the cultural economy. Thereafter, rates are subject 10 8nnual review in the same way as the rest of the organisation. The Charity pays all employees in line with the Real Living Wage. The Theatre has one subsidiary undertaking. Talklighl Limited. This company provides catering and retail facilities, and management services to the Theatre Royal {Plymouthl Limited. Talklighl Limited generated an operating profit of £338k in the year {2023.. £379kl- All profits are passed to the Charity under the gift aid regulations. The ChaTity maintains a corporate risk register which is embedded throughout the organisalion. The rtsks and mitigation plans are subject to regular review by departmental heads, the Executive and onward review by the Trustees via the Audit, Finance & Operations IAFOI Comrnillee. The review of the risk regislor, together with the monitoring of risk, both operational and strategic, by the Board of Trustees ensures that Page 3 THEATRE ROYAL IPLYMOUTHI LIMITED IA COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 adequate and suitable controls are in place to miligale known risks. The activities of the AFO Committee ensure that risk is managed in a posity've and responsible manner. The Charity undertakes a PTogr8mme of largeled internal audits using specialist support where necessary, lo support risk miligalion. As permitted by the Articles of Association, the Trustees las direclorsl have the benefit of an indemnity which is a qualifying third-party indemnity provision as defined by Section 234 of Ihe Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in for￿. The company also purchased and m2inlained throughout the financial year Directors, and Officers, liability insurance in respect of itself and ils directors. lthilsl the Trustees and the Executive Team have many connections within the local community and the wider theatre industry, they are generally not in a position to influence any commercial transactions between Ihe Charity and these other parties. However. in the year there were some situations that should be noted.. During the year TRP contr8cled a presentation of Sao Paulo with the Dance Consortium, a company of which the Chief Operating Officer is a Trustee During the year TRP contracted with New Adventures Limited, a company in which a trustee holds a senior role. The trustee was not involved in any part of the contractual process. OUR CHARITABLE AIfvIS The primary objectives of the Charity are lo provide art, education and community engagement throughout Plymouth and the wider region. During the year the Charity completed a review of ils vision, mission and creative leadership in the context of the post-pandemic Cultural enviionmenl and the needs of the communities of the South West. The Charity's vision is that 'together wilh the people of Plymouth and the South West, we wtll make waves in our ocean city. ensuring we're the most ambitious and creative community in the country,. The mission supporting this vision is that 'we bring people together to create, make, build and present world-class theatre,. The new creative leadership structure lin place September 20231 will drive this ambition. A business plan based on this is being established for 2024-2029. In setting objectives and making plans for the Charity, the Trustees have had due regard for the Charity Commission's guidance on public benefit. including the guidance 'Public benefit.. running a charity, IPB21. Fundraising is managed by our leadership team when required and is either general support via Members. Ambassadors and Corporate Sponsors, or is fundraising directed to the public, or Irusls. foundations or public sector sources for specrfic purposes. We keep supporters, data secu¥e and do not sell il or share il for marketing purposes. We have voluntarily registered with the Fundraising Regulator. The Charity is supported by a small bul loyal group of 8 volunteers. The group supports a¢￿$$ needs such as audio describing and touch tours. They also support tours of the theatre and some specific welcoming duties. The volunleers are included in all staff communications, meetings and events. ACHIEVEMENTS IN THE YEAR The highlights of the year included.... On stsge Many years of work culminated in the production of We Are The Land that took place on the Lyric stage al the beginning of the year. Original planned as part of the Mayflower 400 commemorations {20201 and interrupted by the pandemic, 18 members of the Wampanoag riation came to Plymouth and shared Iheir moving stories, reflecting on the historical as well as the present day impact of the colonialisalion of America, The stage perfomiance was surrounded by many other activities including the raising of the Wampanoag flag and a Page 4 THEATRE ROYAL {PLYMOUTHI LIMITED IA COMPANY LIMITED BY GUARANTEEI TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 programme of cultural sharing in the DfL*m. The experience finished with a communal sharing of dancing and singing around a fire al TR2. Unforgellable. TRP continued lo have international impact with Breathless Iwrillen by Laura Horton, directed by Stephanie Kempsonl securing a run in New York as part of Brits off Broadway 2023. 11 was a critic's choice for the New York Times." °Poignant comic monologue [Ihal] lakes vivid hold thmugh Macmahon's p8rformance" Following this run, Madeleine Macmahon has been nominated for Outstanding Solo Performer al the 2024 Drarna Desk Awards INew Yorkl- We had 62 shows on the Lyric stage which included three amazing and significant co-productions". Wal60's Zprcus of M8gic & TeFror, c0-produ￿d with Extraordinary Bodies. a lalge-scale collaboration between Dldeaf, disabled, and non-disabled artists and creators. which toured nationally. Metgmo@hosis, adapted by Lemn Sissay OBE, co-produced with Frantic Assembly. which continues to tour nationally. M8d8gascar. The Musical, co-produced with Selladoor. This productton has already toured into Europe and Asia and is touring the UK until August 2024. In a first for TRP, we produced an 'Evening with... as a fundraiser. Dame Darcey Bussell and Dawn French talked to a sell-out house about their shared moments of hilarity on stage and screen, with video montages adding to the laughter. Hosted by James Mackenzie-Blackman, il provided an inspiration for futu fundraisin9 acliMty...as well as a connection to our audiences outside of the'large show.. The Drum stsged 35 productions during the year, including.. Coke, co-produced with The Turt)ine Theatre, which h8s gone on lo have a short London try-out to develop it further. A Play For The Living In A Time Of Extinction. co-prodijced with Headlong Theatre which shared a strong environmental message and ineluded eight cyclists who powered the produclionl The Sad Club, a Young Company production Islander The Musical, co-produced with Helen Milne Production$ and Setasea. This production has since toured the USA. Raymond Brigg's Fafher Christmas. a TRP production and our children's festive offer lo compliment Winter Lighls (for 0-3 yrs in the Lab). The inlenlton is lo repeal this sequence for the 2024 festive season. What Songs May Do, choreographed by Malhieu Geffré. A second visit by the amazing Rendez-vous Dance to strengthen the development of dance in the Drum. Off stage We are nothing without the communities we work in and with. In fu￿rI11ng our eharilable aims il is essential that we are not bound by our buildings. So much of TRP'S work takes pla￿ away from the stages. Recognising the wide reach of the Charity, we look TRP out on the road running nine barn dances in iural tocations in Deveon and Cornwall. Across July and August, we connected with nearly 3,000 people and showed a different aspect lo the cultural impact that TRP can have. With live music and supportive stsff. many people came solo to enjoy the group activity. During the year, we completed the With Flying Colours project which reached 3000 children in the Plymouth schools. Working in consortium with other Plymouth based creative organisalions, work was taken into 11 schools. There was a joyous culmination of three years of work in Devonport Park. We also celebrated 10 years of our Funky Llama {our platform for disabled adults lo ath'vely participate in the creation and delivery of inclusive arts events). After a wonderful 10 years we are thinking 8boul how we lake this forward and build on the legacy of this amazing project. Page 5 THEATRE ROYAL IPLYMOUTHI LIMITED A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Our Space was granted a further three years of funding, based on the huge success of the work lo dale. Now incorporating a significant amount of work with Service veleians, the project is expanding into new areas. As we go through this period of creative renewal, we commissioned two pieces of research to help dired TRP'S Cieative Strategy. The first was lo consider the needs of Children. Young People and Farnilies in the region. This was conducted by Fifth Sector and consulted over 100 people and organisalions. The seGond was to consider TRP'S relationship with the Higher and Further Education sectors. This research was conducted by Clara Easlell Consultancy. This report helps give direction following the completion of TRPS ¢onlpct for the Conservatoire with the University of Plymouth. The scenic build workshop has reached into the overseas market building a strong relationship with Folketeateret, Norway and building the sel of Miss Saigon for them. At the year-end we were Completing the sel of Sunset Boulevard for Sydney Opera House, Australia. Vlfftilsl overseas work cornes with ils own challenges, we have made use of technology lo mitigate these. Our people In September 2023, we completed the recruitment of our Associatg Directors who, alongside James Macken2ie-Blackman and Liz Kino, will lead our creative work. They started developing the Creative Strategy for TRP and this will launch in the next financial year alongside the new five-year plan which supports this strategy. FINANCIAL REVIEW TRP is reporting an overall deficit of £1.4m12023.. £772k deficill. This comprises Iwo dislinclive parts.. A deficit of £851 k in general funds, End a nel spend of £489k in designated funds. A deficit of £84k in the restricted funds. This deficrt includes depreciation of £420k charged against capital projects. The reslricled funds include Engagement & Learning projects and a number of grant- supported roles. As TRP manages creative change, there will be a period where investment is required and the reluTns on those investments may not be realised for a year or two. The results for Ihis year reflect investment in several productions las described above). The effect is that the stages are not making a positive contribution every week las they did pre-covidl. This is a medium-term strategy lo build an investment portfolio that will provide financial retums and reduce reliance on touring product. 11 also is an important element of supporb'ng the artists in the South Wesl and the re-esiablishmenl of TRP'S reputation as a producer. TRP remains an National Portfolio Organisalion INPOI of Arts Council England IACEI for the period 2023- 2026 ot) standstill funding of £1.2m per year. Plymouth City Council IPCCI has confirmed an annual commitment lo the theatre albeit on a reduced b8sis of £285k 12023.. £315kl for which TRP is extremely grateful given the current e¢onomic pressures on PCC. Both these income streams provide much appreciated, essential fLJnds for the continuity of TRP'S work in Plymouth and the South Wesl. Our work with The Results Group ITRGI continued in the year. With the planned on-sales of some blockbusters IHamillon, Mary Poppinsl significant work was done lo increase membership numbers ancl the retention of existing members. This was supported by the relocation and refurbishment of the Members Lounge. We ended the year with a record number of members (nearly 5,0001 and a strong contribution of £283k {2023.. £245kl from our development work. TR2 Design & Construction (previously referred to as Commercial 8uildl has had another extremely busy year. This year the team has grown lumover by 17% to £2.34m 12023.. £2.Oml. Theie continues lo be a balance, between large scale builds and a large number of medium scale builds, which has maximised the space and skills available. Although lumover has grown, there continues to be considerable pressure on the cost of materials and of labour which has constrained margins. Having experienced some challenges in recruiting specific skills, TR2 Design & Construction has been generously granted £166k Ireslricled funds) Page 6 THEATRE ROYAL IPLYMOUTHI LIMITED {A COMPANY LIMITED BY GUARANTEE> TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 from the Theatre Artist's Fund creat￿Ve Workforce Pilot Programme lo support training and development in the current workforce and freelancers. The year started slowly for Talklighl Ltd Ilhe catering & retail subsidiary) but the high occupancy of shows in the last quarter helped Talklighl lo achieve budget with a contribution of £338k 12023.. £379kl. The contribution is lower than 2023 mainly due lo reduced footfall in production weeks. The net profil margin achieved Is now 260A compared lo 21.kn in 2019-20 $0 although the offering is more limited Ino reslauranll than pre-covid, the actual contribution is being sustained. Talklighl Ltd will gift aid prolils to the Charity. Our Engagement & Leaming work is a principal charitable purpose and ¢reales a gateway into our lalenl development work. In line with the development of 8 new Creative Strategy, this area of our work has been Subject to review. With limited resour￿$ we need lo ensure that the work is focussed and relevant lo our communities in Plymouth and the South Wesl. So, some of the TRP-funded projects have been paused whilst this work is Carried out. This year we invested £368k12023.. £366kl in this work (including lalenl developmenll and many other significant, individual projects were supported by generous Trusts & Foulldalions and Corporate partners 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 and corporate partners have continLFed to support us. INhere grants are given for specific projects, they are held within restricted funds (see below). TRP recognises that in the years ahead our own contribution to this work needs to decrease and we need lo generate more resources from exlemal sour￿9. Plans to reslruclure this area of our work are being finalised and will be reported slightly differently in future. During the year, the average number of employees in the Ihealre fell lo 241 12022-23.. 2451 and rose lo 31 12022-23. 251 in catering & retail. 590k of these slaff12022-23". 600kl are casual or part-time staff. We are commilled to cullivaling a culture of inclusion al TRP with a workforce that reflects the diversity of the communities we serve. The collective power of each team member's life experiences. knowledge, innovation, self-expression, and talènt creates the very best environment lor us lo achieve our ambitions and lead the sector. In recruiting for our team, we recognise the unique contributions that each person can bring in terms of education, opinions. culture, ethnicity, race, sex, gender identity and expression. nation of origin, age, languages spoken, colour. religioll. disability, sexual o¥ientalion and belief. Every two weeks we share our news through 'The Round Up, which goes to everyone at TRP. Al least Iwi¢e year we hold general staff meetings to offer information sharing and an opportunity for questions. There are now plans for a stsff forum that will meet quarterly lo offer an opportunity for deeper discussion. ReseThes Policy.. During the year the Board reviewed the Reserves Policy and streamlined the annual calculation. Using the amended methodology the Trustees have agreed that is required to hold unresi¥icted reserves of £1.8m12023'. £1.3m under the previous melhodologyl. Al the year end the Charity held £3.2m in unreslricled reserves (general and designated funds). The level of the reserves is reviewed annually 8nd is considered lo be the appropriate level of funds, as determined by the Board of Trustees. The Trustees have agreed that at no point should the lolal designated and unreslricled resetves fall below the funds required to wind up the Charity. Designated funds are unreslricled funds that have been éarmarked by the Board of Trustees for particular purposes. Designated reserves have been created lo fund significant projects that all support the Charity's objectives and that will ensure that the organisation and ils assets are in good shape for the future. Restricted funds are lo be used for specific purposes. These funds have been generated by eapital projects such as the building of the Charity's Production & Learning Centre al TR2, a Capital Appeal. the Regeneration Project and as such they will cover the future depreciation of the resulting assets. Reslricled funds also include specific grants promded for Engagement & Leaming work. The use of these funds is restricted by the origin81 intent of the donation or grant funding. Further details about the reserves held can be found in note 21 to these accounts. Page 7 THEATRE ROYAL {PLYMOUTHI LIMITED {A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 TRP is a National Portfolio Organisation INPOI of Arts Council England. A funding agreement is in place that will offer Isubjecl to terms & conditions) annual funding of £1.2m for 2023-26. In 2024 il was announced that the funding period would be incTeased to cover 2026-2027 as well. Inveslment policy.. By monitoring cash flow, an assessmenl of short lo medium cash needs allows the surplus to be invested. The Charity seeks lo produ￿ 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 Bank andlor Nalwesl on varying timescales (32 days lo one yearl. The Trustees consider Lloyds Bank and Nalwesl to be appropriate partners aligned with the values of the Charity. Going Concern.. The Trustees have considered the validity of the going con¢em assumption held within the presentation of these accounts. By considering Cash flow, Signifi￿nI risks, ACE funding and the context of the nation81 cultural environment, the Trustees are confident that the Charity does not have concerns for the next 12 months, or indeed for the period following that. The Trustees and Executive have completed detsiled cash flow forecasts and budgets that support Ihe going con￿rn basis for these a￿o￿ntS. Covid-19 had a significant impact on the theatre sector in terms of both the programme and audience numbers but from late 2022 both the programme and audience numbers have built up close lo pre pandemic levels. The fo￿￿$1$ include key assumptions based on the current programme. As confidence within the industry has risen. TRP has benefilted from producer confidence with economically viable tours now booking into 2027. The rebuilding of audience confiden￿, and the ability of the theatre industry lo allracl investment to produce new and exciting touring productions are important elements required for success. In addition. the budget for 2024125 also reflects the ambition of TRP lo rebuild ils repulats'on as a producing house with The Artist and The Devil Wears Prada both potentially offering future returns. Whilst we recognise that the impact of signrficant increases in the cost of living and the consequences of the continuing global conflict8 may affect both the Theatre's income streams and ils cost base. we also have ambitions tor iargeled fundraising lo support our community and outreach work by covering elements of our core costs. The following assumptions musl be understood in forming this opinion., The Theatre is open lo full cap8city. All advanced ticket sales are ringfenced to ensure that any refunds, if they are needed, do not impact on the working capital of the Theatre. The past few year5 have underlined the strong relationship with Arts Council England IACEI and Plymouth City Council (PCC). Generous and continued funding has enabled the Charity to continue lo meet ils objectives. ACE recognises the cultural importance of TRP in the geographical region and by this support has taken a positive view of the long-term viability of the Theal¥e. renewing our National Portfolio Organisalion funding in 2023 for the next four years. The Charity has begun a phase of creative renewal which will ensure the righl skills and experience are present. This is a steady and methodical process which will develop a structure and skills base able to respond to the challenges and opportunities that lie ahe3d. The group has sufficient cash reserves which are being monitored and managed actively. The rinofenced funds will enable the group to repay tickets, keep reslricled funds ringfen¢ed and meet additional redundancy obligations, including full scale redundancy should it be required. The group is covered by a business interruption insurance policy extension which provides for cover over a three-year period from March 2020. Ils insurers have confirmed that this policy does provide cover for Covid-19 business interruption, but the timing and value of the claim is not yet known. Principal risks & uncertainlies.. In delivering the charitable aims, the Trustees are mindful of the risks involved and have reviewed these risks and the plans lo mitigate them, as part of the overall planning process. The Risk Register is reviewed regulady by both the Executive and the Trustees. Page 8 THEATRE ROYAL IPLYMOUTHI LIMITED {A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Key identified risks are.. Failure to meat a￿$11C 8mbilions 8nd failu￿ to maintain quality & diversity of programming (SY on Risk Regislerj, mitigated by.. The development of 8 new Creative Leadership structure. Following consultation with stakeholders, colleagues and peers, recommendations for the structure and skill base of an enhanced creative leadership team were proposed. Recruitment is now complete and new working prath'ces are being evolved. Regular discussion and feedback with funding partners and industry-wide collaboration Recognising the interplay of lalenl development with the progression of the artistic programme. Plans are being formulated for future years which will require creative and innovative ways of producing to ensure Ih8t resources are used to maximum affect. Continuing to actively programme the Lyri¢ and Drum so that perf0mlan￿ reflects a diversity of genre. Regular discussion and review by the Producers Group Significant use of rese￿eS {F9 on Risk Register), mitigated by.. Regular review of reseNes by the Executive and the Board Increased frequency of reforecasling the budget Applications to all potential funding sources Reduction of PCC funding fF15 on Risk Register), miligaled by.. Strong relationships with key PCC personnel Slrucluring of a Grant Agreement for 2024-25 TRP business planning consideringlrecognising fulfilmenl of PCC objectives. Monitoring of reporting requirements by Head of Governance LOOKING FORWARD Building on the restructured and enhanced Leadership Team which now includes creative spectalisls, and recognising the ambitions of our NPO application, we will be finalising our new Creative Strategy and the consequential business plan in early 2024-25. This work includes revisiting the vision and mission which will shape future delivery. Following this work, we will also re-examine our TRP values (Quality, Creativity, Diversity and Collal)orationl to ensure that everything remains relevant and aligned. already re¢ognise that Co-production will be a foundation of this business plan both within our communities and as 2 long-term strategy towards financial slabilily. We will have three world premieres in Plymoulh (The Artist in May 2024. The Devil wea￿ Prada in July 2024 and The c￿akerS in October 20241. This will develop our in-house producing skills. offer opportunities to local artists and creatives, and maximise the benefits of the purpose-built facilities at TR2. 11 will also offer a national and international spotlight on Plymouth and the South Wesl. We will produ￿ our own Christmas children's shows so that we cater for the whole age range during the festive period. For our communities we plan lo visit five rural locations during summer 2024 providing an uplifting event for community engagement and lo build on relationships and connections made in 2023. Producing and Programmlng TRP will focus on six strands of creativity in our work in the years ahead. These are.. Theatre Dance Children, Young People and Families Outdoor and Co-created work Artist Development s￿niC Design and Construction. Page 9 THEATRE ROYAL IPLYMOUTHI LIMITED IA COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Threaded through all this work and its related deasion-making will be four underlying pillars, the foundations of TRP.. Audiences & Participants., Diversity & Inclusion., Climale Emergency; Social Value. A new Creative Strategy, sharing a revised ambition for all our creative work on our stages and in other spaces, will be published during 2024-25 and shared with our communities and our industry. TRP is supported by a highly skilled and dedi￿ted team of department heads who support TRP to fulfil ils creative ambition and lo delNer ils charitable objectives. This leadership team will be critical to the finalisation and irllplemenlalion of TRP'S new business plan throughout 2024-25 and beyond. The following p18ns are crucial lo the success of the Charity in fulfilling ils charitable objectives.. We will matter more to more people. We will freely share. and encourage others to share. Cufture and creativity through co-croation andpartnership. We wlll reflect our distinctive region and our clty in everything we do, sharing our love of the place we live and its people. W$ will presgnt amazing regional, national and intérnational perfomiances on ourstages. We will value and respect our environrnent and wort( towards netzero carbon emlsslon. And we will do this in the context of our values.. Creativity, Collaboration, Diversity and Quality", values Ihal are understood and reflected by all al TRP. We continue lo re￿1ve funds from Plymouth City Council IPCCI based on an annual grant agreement. Funding is al £285k per year12022-23'. £315kl. We will continue to dernonslrale lo the leadership of PCC the value that TRP brings lo Plymouth and seek an on-going commitment from PCC that matches the ACE funding period. DISCLOSURE OF INFORMATION TO AUDITORS Each of the persons who a￿ Trustees at the lime when this Trustees. report is approved has confirmed that.. so far as that Tru51ee is aware, there is no relevant audit infomation of which the charitable group's auditors are unaware,. and that Trustee has taken all the steps Ihat ought lo have taken as a Trustee in order lo be aware of any relevant audit information and lo establish that the charitable group's auditors aTe aware of that information. AUDITORS The auditors, Bishop Fleming LLP, have indicated their willingness lo continue in office. The designated Trustees will propose a motion re2ppoinling the audilois at a meeting of the Trustees. The Trustees. Report, incorporating a strategic report, was approved by order of the Board of Trustees, as the compan ctors. d signed on its behalf by.. Damo ussell Chair of es Date.. 16 July 2024 rcey Page 10 THEATRE ROYAL IPLYMOUTHI LIMITED {A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THEATRE ROYAL {PLYMOUTHI LIMITED OPINION We have audited the financial slatem¢nls of Theatre Royal (Plymouthl Limited (the 'parent charitable companll and ils subsidiaries (the 'group'l for the year ended 31 March 2024 which comprise the Consolidated Slalemenl of Financial Activities Ilncorporaling Ineome and Expenditure Accounti, the Consolidated Stalernenl of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows and the related notes, induding a summary of significant accounting policies. The financial reporting frarnework Ihat has been applied in their preparation is applicable law and United Kingdom Accounting Sland8rds, induding Financial Reporting Standard 102 'The Financial Reporting Slandafd applicable in the UK and Republic of Ireland, IUnrf(ed Kingdom Generally Accepted Accounting Pradicel- In our opinion the financial slalements-. give a true and fair view of the state of the Group's and of the parent charitable compan¥s affairs as at 31 March 2024 and of the Group's incoming resources and application of resources, including ils income and expenditure for the year then ended.. have been propedy prepared in accordance wlh un￿ed Kingdom Generally Accepted Accounting Pra¢tice', and have been prepared in accordance with the requirements of the Companies Act 2008. BASIS FOR OPINION We conducted our audit in accordance w¢th International Standards on Auditing IUIQ IISAS (UKII and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial slalemenls section of our Feport. We are independent of the Group in accordance with the ethical requirements that are relevant lo 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 slalemenls is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating lo events or con¢Jilions that, individually or collectively. may cast S1gnificant doubt on the Group's or the parent chari(able company's ability to continue as a going concem for a period of al least twelve months from when the financial slalemenls are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect lo going concem are described in the relevant se¢lions of this report. Page11 THEATRE ROYAL IPLYMOUTHI LIMITED IA COMPANY LIMITED BY GUARANTEEI INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THEATRE ROYAL IPLYMOUTHI LIMITED ICONTINUEDI OTHER INFORMATION The other information comprises the information included in the Annual Report other th8n the financi81 slalemenls and our Audilor5' Report Ihereon. The Trustees are ￿SponSible for the other infomiation contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicitly staled in our report, we do not express any forrn of assuran￿ conclusion thereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsistent with the fi'nat)¢ial statements or our knowledge obtained in the course of the audrt, or otherwise appears lo be materially misslaled. If we idenlrfy such material inconsistencies or apparent material misslalemenls, we are required lo delemiine whether this gives rise lo a material misstalemenl in the financial statements themselves. If, based on the work we have performed, we conclude Ih2t there is a material misstatement of this other infomalion, we are required lo report that fact. We have nothing lo report in this regard. OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion, based on the WOTk undertaken in the COLtrse of the audit". the infomiation given in the Trustees. Report inclLJding the Strategic Report for the financial year for which the financial slalemenls are prepared is consistent with the financial stalemenls. the Trustees, Report and the Strategic Report have been prepared in a¢¢ordan¢e with applicable legal requirements. MAThERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of our knowledge and understanding of the charitable Company and ils environment obtained in the course of the audit, we have not identified material misslatemenls in the Trustees, Report including the Strategic Report. We have nothing to report in respect of the following mallers in relation lo which Companies Act 2006 requires us lo report to you if, in our opinion.. the parent charitable company h8s not kept adequate and sufficient accounting records. or relufns adequate for our audit have not been received from branches not visited by us., or the parent chafltable company financial statements are not in agreement wrth the accounting records and returns", or certain disclosures of Trustees, remuneration specified by law are not made.. or we have not received all the information and explanations we require for our audit. 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 lawl ale responsible for the preparation of the financial slalemenls and for being satisfied that they give a true and fair view. and for such internal control as the Trustees delemine Is necessary to enable the preparation of financial ststemenls that are free from material misslalemenl, whether due to fraud or error. In Preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable compansls ability to continue as a going concern, disclosing, as applicable. mallers related to going concern and using the going concem basis of accounting unless the Trustees either intend lo liquidate the Group or the paienl charftable company or to cease operations, or have no realistic atlemalive but lo do so. Page 12 THEATRE ROYAL IPLYMOUTHI LIMITED IA COMPANY LIMITED BY GUARANTEEI INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THEATRE ROYAL IPLYMOUTHI UMITEO ICONTINUEDI AUDITORS. RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial slalements as a whole are free from material misslalemenl, whether due lo fraud or error, and lo issue an Auditors, Report that includes our opinion. Reasonable assurance is a high level of assurance, bul is nol a guarantee that an audit conducted in accordance wrth ISAS IUKI will always detect a material misstatement when il exists. Misststements can arise fiom fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financ¢al slatemenls. Irr4ularilies, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above. lo delect material rnisslalemenls in ￿SpeCt of irregularities. including fraud. The extent to which our procedures are capable of delecling irregularities, including fraud is detailed below.. We have considered the nature of the industry and sector. ¢onlrol environment and business perfomiance,. We have considered the results of our enquiries of management and the the Board abDUt their own identification and assessment of the risk of irregularities.. For any matters identified we have obtained and reviewed the parent charrtable company's d￿uMentation of their policies and procedures relating lo, Identfying, evalu*ing and complying with laws and regulations whether they were 8ware of any instances of non-complian¢e'. Detecting and responding lo the risk of fraud and whether they have knowledge of actual. suspected or all￿ed fraud., and The inlemal controls established lo mf(igate the risks of fraud or non-ccxnpliance wf(h laws and gulations. We have Considered the matters discussed among the audit enoagement team, including internal tax specialists, regarding how and where fraud might occur in the financial stslemenls and potential indulors of fraud. As a result of these proeedures, we have considered the opportunities and incentives that may extsl within the organisalion for fraud and identified the highest area of risk to be in relation lo income recognition, with a particular risk in relation to year-ond cut off. In common wlh all audits under ISAS {UKI we are also required lo perform specific procedures lo respond lo the risk of management override. We 81s0 obtained an understanding of the legal and regulatory frameworks that the Charitable Group and Company operates in. focusing on prowsions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial stalemenls. The key laws and regulations we considefed in this context included the Charities SORP IFRS 102) - Accounting and Reporting by Charities and the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021. In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the financial slalements bul compliance with which may be fundamental lo the Charitable Group and Company's ability lo operate oi lo avoid a material penalty. These include data protection regulations. health and safety Tegulalions, licensing acts and employment legislation. Our procedures to respond to risks identified included the following.. Documenting and validating the control enmronment for income and debtors and c2rying out walkthrough testing. Undertaking subslanlive sample-based testing or proof in totsl calciJlalK)ns on all material revenue streams lo ensure revenue has been recognised appropriately and accurately,. Considering manLJal income joumals as part of our wort on fraud risks documented above.. Reviewing the financial statement disclosures and testing to supporting documentation.. Enquiring of management concerning actual and potential litigation claims., Perfoming analytical procedures lo identify any unusual or unexpected ￿latIOnShipS that may indicate risks Page 13 THEATRE ROYAL IPLYMOUTHI LIMITED IA COMPANY LIMITED BY GUARANTEEI INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THEATRE ROYAL IPLYMOUTHI LIMITED {CONTINUEDI of material misstatement., Reading minutes of meetings of those charged w¢lh govemance.. and In addressing the risk of fraud through management override ol controls. lesling the appropriateness of journal entries and other adjijstmenls., assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are ijnusual or outside the normal course of business. We also eommunicaled relevant laws and regulations and potential fraud risks lo 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 éesigned lo respond to risks of malerial misslatemenl in the financial slalemenls, recognising that the risk of not delecling a material misstalemenl due to fraud is higher than the risk of not delecling one resulting from an error, as traud may involve deliberate concealment by, for example, forgery, misrepresenlalions or Ihrough collusion. Thore are inherent limrtalions in the audit procedures perfomed and the further removed non-compliance with laws and regulations is from the events and trans2clions reflected in the financial slalements. the less likely we would become awa￿ of it. A further description of our responsibilities for the audit of the financial slalemenls is Iccaled on the Financial Reporting Council's website al.. ￿w.fr¢.o .uklauditorsres onsibililies. This description fotms part of our Audrtors. Report. USE OF OUR REPORT This report is made solely lo the charitable companls members, as a body, in acGordanGe with Chapter 3 of Part 16 of the Companie5 Act 2006. Our audit work has been undertaken so that we might State lo the charitable Companls members those matters we are required lo stale to them in an Auditors. Report and for no other purpose. To the fullest extent pemrtted by ￿w, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our au(Jil work. for this report, or for the opinions we have fomied, Alison Ollver FCA (Senlor Statutory Audltorl for and on behalf of Bishop Fleming LLP Chartered Accountants Slalutory Auditors Sall Quay House 4 North East Quay Sutton Harbour Plymouth PL4 OBN 30.0720£4 Dale.. Page 14 THEATRE ROYAL IPLYMOUTHI LIMITED IA COMPANY LIMITED BY GUARANTEEI CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES IINCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2024 Unrestrlcted funds 2024 £000 Restricted funds 2024 £000 Tolal funds 2024 £000 Total funds 2023 £000 Note INCOME FROM: Donations and legacies Charitable aclivilies Other trading 8¢livilies Investments 1.970 13,456 1,273 196 450 2,420 13,480 1,273 196 2.453 13,114 1.137 37 TOTAL INCOME 16.895 474 17,369 16,741 EXPENDITURE ON.. Raising funds Char￿table activities 1.063 16.718 1.063 17.728 873 16.640 1.010 TOTAL EXPENDITURE 17,781 1.010 18,791 17.513 Net expenditure Transfers be￿een funds 1886) 132) 15361 32 11.4221 {7721 21 NET MOVEMENT IN FUNDS 19181 15041 11,4221 {7721 RECONCILIATION OF FUNDS: Total funds brought forward Nel movement in funds 4.115 19181 10,292 {5041 14.408 11.4221 15.180 17721 TOTAL FUNDS CARRIED FORWARD 3,197 9.788 12,985 14,408 The Consolidated Statement of Financial Aetivilies includes all gains and losses fecognised in the year. The notes on pages 20 to 46 form part of these financial slalements. Page 15 THEATRE ROYAL IPLYMOUTHI LIMITED IA COMPANY LIMITED BY GUARANTEE) REGISTERED NUMBER:01560651 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024 2024 £000 2023 £000 Note FIXED ASSETS Tangible assets Heritage assets 10,548 502 10,683 523 14 11.050 11,206 CURRENT ASSETS Stocks Debtors Cash at bank and in hand 16 101 97 797 8.381 331 8,809 25 9,279 9,237 Creditors.. amounts falling due wthin one year 18 {6,889 15,7771 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES 2,390 3,460 13,440 14.666 Creditors.. amounts falling due after more than one year Provisions for liabilities 19 12591 11961 1101 12491 20 TOTAL NET ASSETS 12,985 14,407 CHARITY FUNDS Restricted funds Unrestricted funds.. 21 9,787 10.292 Designated funds General funds 21 21 2,452 746 2,941 1,174 Totsl unrestricted funds 21 3,198 4,115 TOTAL FUNDS 12.985 14,407 The Trustees acknowledge their responsibilities for complw'ng with the requirements of the Act wlh respect to accounting records and preparation of financia5 stslemenls. The fin tatem ere approv and aulhorised for issue by the Trustees and signed on their behalf by- Dame D Chair of cey sl ussell Date.16 Jtdy 2D21t The note5 on pages 20 to 46 form part of these financial statements. Page 16 THEATRE ROYAL {PLYMOUTHI LIMITED (A COMPANY LIMITED BY GUARANTEEI REGISTERED NUMBER.'01560651 COMPANY STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2024 2024 £000 2023 £000 Note FIXED ASSETS Tangible assets Herrtage assets Investments 10,548 502 10,683 523 14 15 11,050 11.206 CURRENT ASSETS Stocks Deblo Cash at bank and in hand 16 70 72 321 8.754 17 792 8.310 9,172 9,147 Creditors.. amounts falling due within one year 17.138) (6.0861 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES 3,061 13.084 14.267 Creditors.. amounts falling due after more than one year Provisions for liabilities 19 20 12591 11991 1101 12501 TOTAL NET ASSETS 12.626 14,007 Page 17 THEATRE ROYAL IPLYMOUTHI LIMITED IA COMPANY LIMITED BY GUARANTEEI REGISTERED NUMBER.'01560651 COMPANY STATEMENT OF FINANCIAL POSITION {CONTINUEDI AS AT 31 MARCH 2024 2024 £000 2023 £000 Note CHARITY FUNDS Reslricled funds Unreslricled funds.. 9.788 10,292 Designated funds General funds 2,452 386 2,941 774 Totsl unrestricted funds 2,838 3.715 TOTAL FUNDS 12.626 14,007 The Company's net movement in funds for the year was £11,381 kl12023 - £{1,OOOk)l. The Tnjstees acknowledge their ￿spOnsIbl1111eS for complying with the requirements of Ihe Act with respect to accounting records and preparation of financial ststemenls. The financia talements were approved and aulhorised for issue by the Tfustees and signed on their behalf by.. Dame D Chair of T Bussell ees Dale. 16 Jllly 2D21t The notes on pages 20 to 46 forw part of these financial slalemenls. Page 18 THEATRE ROYAL {PLYMOUTHI LIMITED {A COMPANY LIMITED BY GUARANTEE} CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 £000 2023 £000 Note CASH FLOWS FROM OPERATING ACTIWTIES Nel cash {used in)1 provided by operating actmlies 24 11091 11,062) CASH FLOWS FROM INVESTING ACTIVITIES Bank interest received Purchase of tsngible fixed assets 196 37 11841 (5151 NET CASH PROVIDED 8YIIUSED INI INVESTING ACTIVITIES 13191 {1471 CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR {42BI 8,809 11,209} 10,018 Cash and cash equivalents at the beginning of the year CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 25 8.381 8.809 The notes on pages 20 to 46 forni part of these financial statements Page19 THEATRE ROYAL {PLYMOUTHI LIMITED {A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 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. ACCOUNTING POLICIES 2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS The financial statements have been prepared in accordance with the Charities SORP {FRS 1021 Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting SlandaTd applicable in the UK and Republic of Ireland IFRS 1021 {effeclive 1 January 20191, the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland (FRS 1021 and the Companies Act 2006. Theatre Royal {Plymoulh} Limited meets the definition of a public benefit enlily under FRS 102. Assets and liabilities are initially recognised al historical cost or transaction value unless otherwise stated in the relevant accounting policy. The ConsDlidaled Statement of Financial Activities Ilncorporating Income and Expenditure Accounti (SOFA) and Consolidated Statement of Financial Position consolidate the financial statements of the Company and ils subsidiary undertaking. The results of the subsidiary ar¢ 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 ils own Slalement of Financial Activities in these financial slalemenls. 2.2 GOING CONCERN After makin9 enquiries. the Trustees have a reasonable expectation that the group has Sdequate resources lo continue In operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing ts financial slalemenls. The Trustees and Executive have completed detailed cash flow forecasts and budgets that support the going concern basis for these accounts. Covid-19 had a si9nificant impact on the theatre sector in terms of both the programme and audience numbers but from kte 2022 both the programme and audience numbers have byill up close lo pre pandemic lèvels. Further information regarding the Charills future financial strategies and assumptions used in forecasts can be found in the Trustees, Report. 2.3 INCOME All income is ￿CogniSed On￿ the GTOUP has enlitlemenl to the income, il is probable Ih8t the income will be received and the amount of income receivable can be measured reliably. Grants are included in the Consolidated Stslemenl of Financial Activities (Incorporating Income and Expendf(ure Account) on an entillemenl basi5. The balance of income received for specrfi¢ purposes bul not expended during the penod is shown in the Televant funds on the Balance Sheet. Where income 15 received in 8dvance of entrtlemenl. its recognition is deferred and included in creditors as deferred income. Where enlillemenl occurs before income is re￿ived. the income is a¢criJed. Income lax recoverable in relation lo investment income is recognised al the lime the investment income is receivable. Page 20 THEATRE ROYAL IPLYMOUTH) LIMITED IA COMPANY LIMITED BY GUARANTEE} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POUCIES {contlnuedl 2.4 EXPENDITURE Expenditure is recognised once there is a legal or constructive obligation lo tonsfer economi¢ benefit lo a third party, it is probable that a transfer of economic benefits wll be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by adivily. The costs of ea¢h activiiy are made up of the total of direct costs and shared costs. including support costs involved in undertaking each aclifflly. Direct costs allributable lo a single activity are allocated d1￿cl1Y lo that activity. Shared costs which contribute lo more than one activity and support Costs which are not attributable to 8 single activity are apportioned between those aclimties 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 ils ¢haritable purposes and includes costs of all lundraising activities events and non