**Charity Registration No. 287909**
**Company Registration No. 01747169 (England and Wales)**
## **PENTABUS ARTS LIMITED TRUSTEES' REPORT AND UNAUDITED ACCOUNTS**
**FOR THE YEAR ENDED 31 MARCH 2021**
## **PENTABUS ARTS LIMITED**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Ms D Lennan Mr R H Burbidge OBE Ms J Hughes Ms S McCormick Ms R Robins Ms M F Bedford Ms M I Branson Mr S P Johnstone Mr M Hartley (Appointed 5 August 2020) Ms E Dennis-Edwards (Appointed 5 May 2021) **Secretary** Ms C J John **Charity number** 287909 **Company number** 01747169 **Registered office** Pentabus Theatre The Old School Bromfield Ludlow Shropshire United Kingdom SY8 2JU **Independent examiner** Azets Column House London Road Shrewsbury Shropshire United Kingdom SY2 6NN
## **PENTABUS ARTS LIMITED**
## **CONTENTS**
||**Page**|
|---|---|
|Chair's Report|1 - 2|
|Trustees' report|3 - 17|
|Independent examiner's report|18|
|Statement of financial activities|19 - 20|
|Balance sheet|21|
|Notes to the financial statements|22 - 34|
## **PENTABUS ARTS LIMITED**
## **CHAIR'S REPORT**
## **TO THE MEMBERS OF PENTABUS ARTS LIMITED**
I write this report having just seen the first Pentabus play performed to a live audience in 18 months! In the beautiful setting of Stokesay Court in Shropshire, it was wonderful to join other audience members for Matt Hartley’s production of Idyll, an entertaining and moving portrayal of the challenges faced by one rural community during lockdown. The performance marked the end of a period when shows have been cancelled and postponed due to the world wide Covid pandemic. It has been a difficult year for so many working in the arts and credit must go to the Pentabus team who have managed to continue to operate and achieve so much in spite of all the challenges, as a Board we owe them our heartfelt thanks.
In times of crisis, arts organisations are renowned for their ability to be responsive and flexible, Pentabus are no exception. At the beginning of lockdown the company quickly moved their work into the digital sphere ensuring that they were able to continue to tell the stories of rural Britain and keep audiences engaged and entertained.
Working in partnership has been vital over the year as the UK theatre sector came together to support each other in creating and distributing work. There has been the opportunity to work with national and regional theatre organisations while the West Midlands Cultural Response Unit and Cultural Central have provided opportunities and encouragement to regional artists to share their ideas and expertise. Come to Where I Am was a collaboration with Paines Plough which saw commissioned work broadcast digitally as well as actors performing individually on the phone to isolated individuals; Signal Fires brought together a collective of 40 of the UK’s top touring theatre companies while It Gets Lighter from Here and Spring’s Calling saw regional arts organisations coming together in festivals of digital work.
Work for and by young people has continued to be at the core of Pentabus’ work, over the past year a collaboration with the National Trust has told the stories of local young carers through an installation at Attingham Park while Young Writers have met online in greater numbers than in previous years, we look forward to seeing their work in September 2021.
The company has also continued to support theatre writers through the Writers in Residence scheme and in partnership with Unlimited have recently commissioned a disabled writer Tom Wentworth to write next autumn’s village tour, Tom started his career as a Pentabus Young Writer.
Financially our costs have reduced dramatically during the year as we have not toured any productions, our income however has also reduced by 27%. In spite of this reduction in activity we are grateful for the ongoing and generous financial support from those who have continued to believe in Pentabus’ work, in particular we would like to thank Shropshire Council and the Esmee Fairburn Foundation for their Emergency funding and ongoing revenue support. Other support during the year has been received from the Clive and Sylvia Richards’ Charity; Garfield Weston Foundation; Haystack Trust; Millichope Foundation; Shropshire Masons and the Wynn Foundation and we thank all of these Trusts and Foundations.
During the year we had 34 Friends and Supporters, and many more people gave individual one-off donations. The support of generous individuals is very important to Pentabus and we would like to thank all the current and future Friends and supporters of the company.
As ever our thanks for financial support must go to our main funder Arts Council England who continue to provide the core investment on which the creation and touring of Pentabus’ work depends.
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## **PENTABUS ARTS LIMITED**
## **CHAIR'S REPORT**
## **TO THE MEMBERS OF PENTABUS ARTS LIMITED**
I would like to take this opportunity on behalf of the Board to thank the inspiring and resilient Pentabus team. During the year we said goodbye to Sophie Motley who left to take up the role of Artistic Director at the The Everyman Theatre in Cork, thanks to Sophie for all her work with Pentabus over the past 4 years. In March we welcomed Elle While as Pentabus’ new Artistic Director and look forward to working with Elle as we move back into full operation. Particular thanks must go to Catrin John (Executive Director) for her hard work and dedicated leadership steering the company through a challenging year, we are indebted to her and to the rest of the Pentabus team: Amber, Andrew, Debbie and Verity.
And last, but my no means least I would like to thank my fellow Board members for their wise advice and sound governance of the company over the year.
**R Robins (Chair)** Dated: 06/09/2021
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## **PENTABUS ARTS LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report together with the accounts for the year ended 31 st March 2021.
The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities' effective January 2019.
## **Objectives and activities**
The objects for which the Company is registered are to promote, maintain, improve and advance education particularly by the encouragement of the Arts including the arts of drama, ballet, music, singing, literature, sculpture and painting.
The strategies employed to achieve the charity’s aims and objectives are to:
- To develop and produce exceptional rural theatre by, with and for rural audiences
- To ensure diversity and inclusion across all of our activity
- To deepen engagement and diversify our audiences.
- To improve financial sustainability and diversify income
- To ensure robust and efficient use of all resources
- To create and maintain engagement with theatre for Young People.
## **Company mission statement**
We are the nation’s rural theatre company. We tour new plays to new audiences in village halls, fields, festivals and theatres - telling stories with local relevance plus national and international impact.
## **Public Benefit**
In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’. The touring theatre company relies on Arts Council funding, grants, donations, memberships and income from fees and charges to cover its operating costs.
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## **PENTABUS ARTS LIMITED**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Achievements and performance**
Like so many organisations our plans for 2020-21 were derailed due to the Covid-19 pandemic. Our coproduction with Theatre by the Lake, _One Side Lies the Sea_ , which was due to tour over March, April and May 2021 was cancelled as a live production and our planned autumn 2021 tour of a new play by Tim Foley was, after much deliberation with the writer also shelved. However, our planned spring 2021 tour of _Jacaranda_ , a new play by Lorna French, another co-production with Theatre by the Lake was moved to a new time slot and will now premiere in October 2021 in Shropshire, before touring rural venues and taking up residency for two weeks in Theatre by the Lake’s main house.
Although many of our plans were changed, the past year has also seen other new opportunities open up. We pivoted our work in to the virtual world and our team quickly learnt how to run workshops and seminars via the medium of Zoom. Our project with the National Trust’s Attingham Park, _Legacy_ , was one of the beneficiaries of these new skills. After being ‘furloughed’ for a few months, the workshops with young carers from Telford & Wrekin CVS, All Age Carers Centre started online and all of the planned engagement workshops were successfully held virtually.
This was the third year of our current Business Plan which runs until 2022. In light of the developments over the last year we revised the final year of this Business Plan and we are currently creating a stand-alone 2022-23 Business Plan in order to transition us to our next three or four year Business Plan starting in spring 2023.
## **Pentabus’ Year in Numbers**
Over the year, we employed **48** freelancers including commissioning **23** artists to make digitally native work, future live work or for seed commissions.
We presented **two** live shows to sold out audiences as part of the Touring Theatre initiative _Signal Fires_ , playing to a socially distanced, outdoor audience of **80** .
We commissioned or co-commissioned **19** new micro-digital commissions across **three** projects, _Come to Where I am: Rural_ , _It Gets Lighter from Here_ and _Spring’s Calling_ and they were watched by a combined virtual audience of **6,810** . **22** isolated rural people took part in our caller service for _Come to Where I Am_ .
We had a virtual audience of **5,779** for the re-releases of the live captures of our past shows and **232** watched
the new live capture of _Signal Fires_ .
We ran **five** virtual Rural Arts Salons with **88** local artists participating. And **193** artists and practitioners attended the **five** virtual professional development workshops we ran across the year.
We ran **five** Young Writer’s groups virtually with **72** sessions over the year which were a mixture of group and individual sessions with **298** attendances.
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## **PENTABUS ARTS LIMITED**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Artistic Programme highlights of 2020/21**
## **Rural Recordings Releases & Village Halls’ Week**
In the first week after lockdown in March 2020 we organised to release eight of our past shows which had been previously live captured. From Friday 27 March we released one of these eight shows every week and they were all then live until 30 June 2020. These were available for anyone to watch via our YouTube channel for free. We are very grateful for all the cast and creative teams linked to these shows, who made this possible by waiving their fees.
The shows we re-released were: _Here I Belong_ by Matt Hartley, _Crossings_ by Deirdre Kinahan, _As the Crow Flies_ by Hattie Naylor, _The Tale of Little Bevan_ by Robert Alan Evans, _The Wolves are Coming for You_ by Joel Horwood, _Each Slow Dusk_ by Rory Mullarkey, _Milked_ by Simon Longman and _This Land_ by Sian Owen.
We accompanied each release with a Q&A with members of the cast and creative teams on social media. Plus ensured that all recordings were subtitled even if the original recording had not been.
We also re-released _Here I Belong_ and _Crossings_ , again for free, in celebration of Village Halls week in
January 2021.
Our audiences, both new and old appreciated being able to watch our past shows in the comfort of their own homes during the uncertain times.
_'I just watched Here I Belong. Thank you so much for this moving piece. I usually find myself in a theatre seat 70 times by the end of April each year. But in the 2020 pandemic… I have now added your theatre group to my bucket list. May I visit in person one day.'_ Online Audience Feedback Rural Recording
_'Thank you for the Friday releases of former plays. As always with Pentabus, excellent performances. In strict lockdown we feel a little better connected to the outside world. Roll on the day when we can enjoy your live performances again.'_ Online Audience Feedback Rural Recording
_'Absolutely brilliant! I think this has become my favourite Friday night activity.'_ Online Audience Feedback Rural Recording
_'Excellent as always... We'll be there next week. Why not join us.'_ Online Audience Feedback Rural Recording
_‘Thank you for sharing and especially for the subtitles!’_ Online Audience Feedback Rural Recordings
_‘Looking forward to the day when we can again watch a Pentabus production live but Here I Belong is a joy to watch anytime. Thank you for making it available whilst we are on house arrest!’_ Online Audience Feedback Rural Recording
And they were reviewed favourably by national press:
_'This is a great example of the superb but often hidden work that takes place on the rural touring circuits & the essential contribution that Pentabus makes to rural cultural life.'_ Stagedoor, Lyn Gardner on the re-released live capture of _Here I Belong_
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## **PENTABUS ARTS LIMITED**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Come to Where I Am: Rural**
Our first foray in to digital micro-commissions was a collaboration with Paines Plough as part of their _Come to Where I Am_ series. We commissioned eight writers to write and then film themselves performing a 5-10 min short play about their connection to their rural environment. As part of this process we did an open call for submissions for local writers to apply for which had 53 applications, these were reviewed by Pentabus and Paines Plough. Two of the final eight pieces were commissioned through this open call, including one by a former Young Writer, Callum Beardmore. This project, like the other digital commissions during the year, allowed us to work with a larger group of writers than usual, many of whom were new to the company and to showcase a wider diversity of voices to our audiences.
We were aware that some of our audiences were unable to take advantage of our new digital offerings so working in collaboration with Paines Plough, we offered local third sector organisations - the Macular Society, The Mayfair Centre and the Qube, a caller service. Professional actors phoned each individual or group up and performed one of the _Come to Where I Am_ plays for them over the phone and chatted with them after about the piece. This provided a welcome respite from the loneliness that people were experiencing.
The _Come to Where I Am: Rural_ commissions were: Callum Beardmore – _Youth’s Folly_ ; Jacob Hodgkinson – _Roots_ ; Tash Marshall – _Crop Circles_ ; Little John Nee – _2k from Killaloonty_ ; Olivia Preye – _Walking with Mum_ ; Tom Wentworth – _No Place_ ; Yasmin Wilde – _Monica_ and Kat Woods – _Flat_ . These are free to view on the Pentabus website.
_‘Just a quick email to say how much I have enjoyed CTWIAMR monologues and a massive thank you to you and all the creative team for making them happen. Each of them have their own style and unique qualities; as a collection they epitomise the world class rural that is Pentabus._
_Once again, the inclusion of captions as standard reaches out to a wider and marginalised audience and (in my view) also serves as a reminder of the craft that is writing.’ Come to Where I Am_ Audience Member
## **Signal Fires**
In autumn 2020, the Touring Theatre collective which had been meeting regularly since March 2020 as a support structure for touring companies, created _Signal Fires_ . This was a collective touring initiative that saw new work staged UK-wide throughout October and November. The project was conceived to highlight the crisis faced by the theatre industry and the freelancers that worked within it. Over 40 of the UK’s top touring theatre companies took part at a time when traditional touring wasn’t possible.
Pentabus’ programme for _Signal Fires_ , was two nights of play readings and music from our _Come to Where I Am_ playwrights, co-produced with Paines Plough. Due to the government guidelines at the time these performances were produced as socially distanced outdoor events in the beautiful surroundings of Acton Scott Historic Working Farm in Shropshire. Despite the performances being outside in late October we sold out all of our tickets within 24hours, highlighting how our audiences were missing live theatre.
In addition to the live audience we live captured the event and released this for a limited time period for free via our YouTube channel.
## **It Gets Lighter from Here**
In December 2020, the West Midlands Cultural Response Unit curated a festival of digital work created by arts organisations and individuals across the West Midlands, responding to the provocation, It Gets Lighter from Here. Through this initiative on 21 December 2020, the shortest day of the year, over 200 pieces of 60-second digital content, a mix of film, audio and digital artworks were released throughout the day to transform the shortest day into a region-wide celebration of optimism, happiness, creativity and hope.
As part of this celebration, Pentabus commissioned six short films and co-commissioned three others in
collaboration with Heritage and Culture Warwickshire.
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## **PENTABUS ARTS LIMITED**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
The films, which are still free to view on our website are: _Ripples of Change_ by Sioda Adams; _Misrule Our Season_ by Jack Bigglestone; _Freedom to Begin_ by Jane Bracey & Jill Davis; _The Map is Alive_ by Andy Garbi; _Open Skies_ by Sam Holley-Horseman; _Threshold_ by Ollie Lansdell; _Ignition_ by Kate Pothecary, Abbie Lathe & Faith Brackenbury; _gãst_ by Tom Powell and _Wheel Walks: Moments Re-Framed_ by Tanya Raab Webber.
## **Spring’s Calling**
Pentabus took part in another West Midlands Cultural Response Unit regional online event in spring 2021, this time coinciding with the Spring Equinox on 20 March. Under the title _Spring’s Calling_ , 3-5min artworks which included spoken word, podcasts, music and singing were again created by artists and organisations across the region. The themes focussed on nature, spring, outdoors, reflection, restarting and growth; as the cultural sector looked ahead to returning to live events, re-opening venues and welcoming back audiences.
Pentabus commissioned writer Tim Foley and actor and writer, Sophie Stone to create two short audio pieces for _Spring’s Calling_ . _Folklore and Fitness with Carole Vegan_ by Tim Foley and _I, Nyx: (A daughter’s daughter)_ by Sophie Stone were both presented as podcasts spoken/performed by the writers and were made into captioned, wave transcription videos.
Both pieces were enthusiastically reviewed by The Stage and again can be enjoyed on the Pentabus website for free.
****
'Wildly different but equally welcome' The Stage
And finally, two projects that started life pre-Covid-19 pandemic continued in a different form than they were initially conceived – _One Sides Lies the Sea_ and _Legacy_ .
## _**One Side Lies the Sea: Music Videos**_
A Pentabus & Theatre by the Lake Production
After initially postponing and then cancelling the live performances of _One Side Lies the Sea_ , which had been developed with Jennifer Bell and three isolated rural coastal communities in West Cumbria, Cornwall and East Riding of Yorkshire. We explored how we could share these communities’ stories with our audiences whilst responding to the ever-changing government guidance.
It was decided in collaboration with Theatre by the Lake and Jennifer Bell that we would produce a series of music videos which would showcase the beautiful, evocative songs that had been written for the show alongside the stunning film footage which had originally been shot to create the show’s visual backdrop. After several reschedules due to the changes in government guidance our original performers and co-composer, Jennifer Bell, John Holmes and Harry Humberstone were able to record the songs in a Bristol recording studio in May 2021, alongside session musicians. And filmmaker Ollie Lansdell created the music videos using the film he had shot whilst visiting the rural coastal communities.
The eight music videos were launched at a virtual Q&A with Jennifer Bell, Liz Stephenson [Artistic Director of Theatre by the Lake] and Elle While [Pentabus Artistic Director] on the 21 July 2021. They can be viewed on the Pentabus website for free.
## **Legacy**
Our Trust New Art collaboration with the National Trust’s Attingham Park was ‘furloughed’ in March 2020 whilst the Trust and Pentabus reviewed how the Covid-19 pandemic was affecting their organisations. Both organisations had a commitment to continue with the project and it was reformulated in late 2020.
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## **PENTABUS ARTS LIMITED**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
The artists, Jo Wheeler and Andrew Sterry [Pentabus’ Audience & Engagement Manager] continued as planned, to work with young carers from the Telford & Wrekin CVS, All Age Carers Centre, moving their workshops online and running these from March to June 2021. They were joined by sound artist Andy McKeown in summer 2021 to work together to realise the final installation.
Across these workshops the participants explored and shared memories and ideas of what makes a good party, in response to Attingham Park’s formal Dining Room which was historically the scene of grand banquets and evening dinners. Audio responses along with objects and live experiences have been collated through these workshops and a virtual party. These have been curated and displayed in the real Dining Room at Attingham Park so that the space becomes an interactive installation, leaving a ‘ghost’ of a party in the room for visitors to discover and experience. The installation, _apart(y)_ , is free to visit at Attingham Park until the end of 2021.
Helen Rowse, Collections and House Manager for Attingham said: ‘ _Attingham has always been a place where people get together, and we’ve really enjoyed working in this creative way to explore the links between past and present. After a year of being apart from loved ones, this project invites everyone to reflect on what it means to be together._ ’
## **Young People**
Throughout the year we have continued our commitment to provide opportunities in theatre for young people from rural areas. After successfully pivoting our 19/20 Young Writers’ group workshops online in April 2020, we created a new suite of courses for 20/21 which were all run virtually. These included a new local group, a national group, a young company ensemble group and a group made up of alumni from our past Young Writers’ programme participants. We also continued to work with the 19/20 Young Writers’ group. These workshops were run by Andrew Sterry, Pentabus’ Audience & Engagement Manager working alongside, playwrights Sophie Ellerby and Tom Powell who are also past Writers-in-Residence at Pentabus; local artist Olivia Preye and playwright Matt Hartley. Moving our workshops online has enabled us to reach four times as many participants than in previous years and in future we will be exploring offering a hybrid of in-person and virtual courses.
One of our 2020 young writers said ' _It's been a brilliant opportunity and Pentabus have been so flexible throughout the ongoing situation. And I'm hugely grateful for all your support. I'm really looking forward to working with the actors and hearing my play being read.'_
In late 2020, we took the decision that it was impractical to plan a live production to showcase the Young Writers’ work. The Young Writers have instead written their plays for either an audio or short film format. The audio plays are being professionally recorded by Naked Productions and performed by professional actors, whilst the Ensemble group will film themselves performing their pieces. We will release all the work as part of a digital festival, _What Will We Say to Those Who Can Hear Us?_ throughout September 2021.
## **Artistic Development**
We continued our commitment to host Writer-in-Residence with our second Clive & Sylvia Richards’ Charity [CSRC] Writer-in-Residence, Tom Powell continuing his residency with us virtually across 2020/21, after only a couple of months in person in Ludlow before the first lockdown. After receiving a third year of support from CSRC we recruited our third CSRC Writer-in-Residence during the year, Florence Espeut-Nickless. Due to the changing government guidelines Florence started her residency later than anticipated, taking up post in April 2021. We had a record number of applicants for the Writer-in-Residence bursary with 126 applications.
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## **PENTABUS ARTS LIMITED**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
Pentabus’ partnership with Unlimited continued, offering a disabled artist a commission for a future village hall tour as one of the 2020 Unlimited Partner Awards, with applications open for the month of October 2020. After the comprehensive application process and panel meeting run by Unlimited, we jointly chose to award Tom Wentworth with the commission. Tom started his playwrighting career as a member of the first Pentabus Young Writers’ group. Tom’s play, Little Bits of Ruined Beauty will receive an R&D in late 2021 and will be produced as the Pentabus autumn 2022 village hall tour.
As a continued commitment to support local artists, we moved our Rural Arts Salons online offering a space for people to share creative ideas, make new artistic connections and talk about their challenges. We ran five virtual salons with Arts Alive across the year. In addition we ran five virtual professional development workshops across the year working in partnership with Unlimited and the NRTF to deliver some of these.
During 2020, Pentabus commissioned a new short play, Idyll by Matt Hartley, as a potential piece of alternative programming as the company was not able to produce its planned village hall tours due to the Covid-19 pandemic. This play premieres on 18 August 2021 at Stokesay Court in Shropshire before going on a tour of outdoor venues across Mid-Wales and the Marches. The tour has been specially programmed to encourage audiences back to live theatre after nearly 18months when this has not been possible.
In addition to this Pentabus gave seed commissions to Tim Foley and Tabby Lamb to enable them to explore new ideas. Plus co-commissioned Lee Mattinson with Theatre by the Lake to produce a treatment of his new play, Steel.
The collaboration with Arts Alive to co-commission a playwright to write a new play for a future village hall tour, whilst running engagement activity to allow their promoters a deeper insight in to the production process of a show, was put on hold whilst both companies understood the knock-on effect that the Covid-19 pandemic had on their programmes. This project will be picked up in 2021/22.
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## **PENTABUS ARTS LIMITED**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
During 2020 we offered producer support to Gagglebabble who were creating an artistic digital response to the English/Welsh boarder, _Borderlands_ . Following a call out to artists and locals living on the border, Gagglebabble's co-founder Lucy Rivers and filmmaker Siôn Marshall Waters were invited on nine walks. From August to October 2020 they immersed themselves in the dramatic landscape between Chepstow and Llangollen. Walking, talking and remembering... exploring identity, folklore, stories, getting lost and then finding the path again. The films and artistic responses are available on the _Borderlands_ interactive map which can be viewed in the On Demand section of the Pentabus website.
This was the third year of the 2018-22 core funding agreement with Arts Council England as a National Portfolio Organisation, for which Pentabus received £190,779 for the financial year. We received £6,000 from our local authority, Shropshire Council, a combination of an Emergency Digital Arts Fund Grant and a Revenue Arts Grant, some of which will be drawn down in 21/22 as the project spans both years. We also received a Covid small business extension grant from Shropshire Council.
This year saw a number of successful grant applications made to Trusts & Foundations, in line with the ongoing strategy to diversify the company’s funding base. Pentabus received grants from the following trusts and foundations, which were drawn down in 20/21, some of which were ongoing multi-year funding agreements:
- Clive & Sylvia Richards Charity: £5,250 towards the original CSRC second Writer in Residence (with a further £2,250 for this second bursary in 21/22)
- Esmee Fairbairn Foundation: £5,500 continuation funding for core programme which was the final money from this three year grant. In addition the Foundation generously gave its current grantees an additional Covid-19 Emergency Grant and we received £8,500 as part of this initiative.
- Haystack Trust: £1,000 for Young Writers’ was drawn down in to 21/22 from the initial three year grant (with £6,125 left to draw down in to 21/22 for the Young Writers’ digital festival).
- Millichope Foundation: £3,000 for core programme (third of five years funding with £2,500 of this drawn down in to 21/22)
- Garfield Weston Foundation: £2,500 of the current three year grant towards core costs was drawn down
- in 20/21 (with a further £23,500 to be used in 21/22 financial year)
- Wynn Foundation: £1500 grant toward our Young Writers’ programme (with a further £1500 to draw down in 21/22 due to the delay in the timing of some of the activity).
- Shrewsbury Masons: £500 toward our Young Writer’s programme.
- Adlard Family Charitable Foundation: £500 for our core programme (with a further £500 to draw down in
- to 21/22)
In 2020/21 we also made successful applications to the Haystack Trust for a further three years of funding toward our Young Writers’ programme; the Clive & Sylvia Richards’ Charity for a third Writer in Residence bursary; the Ashley Family Foundation, the D’Oyly Carte Charitable Trust and Hall Garth Trust for our Young Writers’ programme and the Adlard Family Charitable Trust and Weston Charity Award for core costs. All of these will be drawn down against activity in the 21/22 financial year and future years in the case of multi-year grants.
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## **PENTABUS ARTS LIMITED**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Staff**
Artistic Director, Sophie Motley resigned in October 2020 to take up the role of Artistic Director at The Everyman, Cork. She continued to work full time for the company until the end of December 2020 and then part-time during January and the first three weeks of February 2021. After a comprehensive recruitment process, Elle While was appointed by the Board as the new Artistic Director. She started part-time from the beginning of March, taking up the position full time from the 19 April. Elle joined Catrin John (Executive Director) to provide leadership for the company moving forward.
Andrew Sterry continued in his full time role as Audience Development & Engagement Manager and Verity Overs-Morrell continued as part-time Development Manager. Amber Knipe joined the company as Producer from 1 April 2020. Debbie Yapp continued as the company’s freelance Book Keeper during the year, but has been taking time away from her freelance work to recuperate from an operation since March 2021.
## **Environmental**
Pentabus continues to be a sector leader in green theatre practice. All contracts with designers and makers reflect our commitment to sustainability. We monitor the company’s carbon footprint, making efforts for reduction, and contribute to Julie’s Bicycle using the ‘Creative IG Tool’ to track our performance and highlight areas for improvement.
## **Financial review**
The Charity has seen its incoming resources decrease by £92, 434 to £251, 872 .
Its principal funding sources are The Arts Council funding of £190,779 (2020: £187,332) and grants from other organisations including the Adlard Family Foundation £500 (2020: £1,000); Clive & Sylvia Richards Charity £5,250 (2020: £5,000); Esmee Fairbairn Foundation grants £14,000 (2020: £17,000); Garfield Weston Foundation £2,500 (2020: £19,000); Haystack Trust £1,000 (2020: £7,125); Millichope Foundation £500 (2020: £3,000) Shropshire Masons £500 and Wynn Foundation £1500. In the 2020/21 financial year the charity was not able to take advantage of its usual income stream of guarantees received from venues to which it tours shows, as it was not possible to tour live theatre during the year due to the Covid-19 pandemic. However, many of the associated costs linked to these tours were postponed until 21/22.
The Board in discussion with Azets accountants have agreed to designate £46,166 of the 20/21 Arts Council NPO core funding to be used in 21/22. This money will be used for the postponed project and related organisational core expenditure for _One Side Lies the Sea_ , Young Writers Digital Festival, Jacaranda R&D and other Pentabus Studio activity, which were unable to be realised in 20/21 due to the Covid-19 pandemic.
The charity has generated net income after movements in funds of £46,035 in 2021 compared to a net income in 2020 of £12,307.
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## **PENTABUS ARTS LIMITED**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Reserves Policy**
The Trustees review the charity’s reserves policy on a regular basis and in doing so seek to make a realistic assessment of the expected future requirements in light of planned activities and expenditure, likely levels of income achievable and any major operational risks they may encounter.
The charity’s overall reserves comprise of three elements being unrestricted, restricted and designated. The unrestricted reserves then have a further division between the general and contingency funds.
## **Unrestricted Reserves**
These reserves which include fixed assets of £4,977 totalled £117,251 at the year end. This is split between the General Fund £52,251 and Contingency fund £65,000.
## **General Fund (Unrestricted Reserves)**
The general funds i.e. those that have not been designated for a specific purpose form part of the ongoing budgetary needs and will be used to cover upcoming operational expenditure over the medium term.
## **Contingency Fund (Unrestricted Reserves)**
It is the policy of the charity to build up a contingent fund that over time will accumulate to a level equivalent to between three and six months operational expenditure. The Trustees consider that accruing such a reserve at this level will ensure that in the event of a significant drop in funding they will be able to continue the charity’s activities and ensure they meet all their financial obligations while consideration is given to sourcing alternative funding avenues. Operating such a policy is considered to be good practice and in accordance with Charity commission and Arts Council England recommendations.
The majority of the funds built up in this reserve are held separately in a Virgin Money Savings Account.
## **Restricted Reserves**
These reserves totalled £24,668 at the year end details of which are broken down in Note 18 to the financial statements. The £24,668 represents the elements of restricted income received that will be recognised in later periods in accordance with the stipulations associated with the income when it was received.
## **Designated Funds**
Due to the Covid-19 pandemic many of the planned projects for 2020/21 had to be postponed till 2021/22. Therefore, the Board took the decision to 'designate' £46,166 of the Arts Council England NPO grant from 2020/21 to be used on these core projects whose expenditure would now fall in to 2021/22. This appears in the accounts as Designated Fund 21/22. This money will be used in 2021/22 within the life-span of the current Arts Council England NPO grant.
The original Strategic Development Designated Fund was created in the 2016 financial year by the charity for future strategic development, to support new premises, research and development costs and capital purchases. In September 2016 the Board agreed to transfer the Theatre Tax Relief claim monies to this fund as the money cannot be guaranteed to continue because it is subject to Government policy. At that time the Board also agreed to use the monies in the Designated Fund towards new LED lighting. Since then this fund has been used to fund an IT upgrade; new sound equipment; the website redevelopment; a new photocopier and writers' support. The balance at the 2021 year end is £47,465 being the Theatre Tax Relief claimed over the years less the funds spent this year on the final instalment of the website redevelopment. As a portion of the monies spent over the years are capital items which will be depreciated according to the company's accounting policies, the Designated fund is represented by Fixed Assets of £8,986 and current assets of £38,479.
- 12 -
## **PENTABUS ARTS LIMITED**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
Therefore the combined Designated reserve is £93,631, represented by Fixed Assets of £8,986, the Strategic Development fund current assets of £38,479 and 21/22 Designated fund of £46,166. The 21/22 Designated fund will be used for postponed projects in the 21/22 financial year.
The premises from which the charity currently operates are contracted under an antiquated rolling lease agreement. However, the current premises represents very good value for money and it has been anticipated that a requirement to move to alternative premises with the same level of facilities, storage space and rehearsal space would be a costly exercise both in terms of the initial relocation and the ongoing costs for rent and services etc. An exercise was undertaken to substantiate the potential costs of such a plan and concluded that it would be approximately £17,000. Should such a move be required the costs would need to be covered from the Designated Funds.
## **Plans for the future**
We have just finished the third year of our 2018-22 Business Plan. It set out a framework for embedding our new national approach, building on these foundations to deepen engagement and diversify our audiences. And detailing how this will be achieved through 4 core artistic strands: Village Hall Touring, Theatre in Surprising Places, Pentabus Young Company and Pentabus Studio.
In January 2021, we revised the final year of this current Business Plan to reflect changes which needed to be made in light of the developments over the last year and also to begin to reflect Arts Council England’s new strategy, Let’s Create. Over the summer of 2021 we will be drafting a new Business Plan for 2022/23, which will be a transition year leading in to a new three / four year Business Plan which will be formulated in early 2022 in line with Arts Council England funding deadlines.
## **2021-22 BUSINESS PLAN GOALS**
## **Goal 1: Ambition & Quality - Develop and produce exceptional theatre by, with and for rural audiences**
We have an engaging and dynamic artistic programme planned. We will actively seek out the best writers, collaborators and designers, nurturing emerging talent and challenging established artists to respond to the rural world. We will commission and develop original theatre through engagement with rural communities. We will ensure that rural voices are heard.
## **Goal 2: Inclusivity & Relevance - Ensure diversity and inclusion across all of our activity**
All of our artistic and organisational activity is planned and delivered through the prism of creative case for diversity. We are committed to ensuring our workforce is representative of the world we live in. We will continue to create work for isolated rural communities of least engagement with the arts. We will champion the old, young, diverse and disabled rural voice.
## **Goal 3: Inclusivity & Relevance - Deepen engagement and diversify our audiences**
Our programme will engage rural audiences across the UK through projects developed in partnership with isolated rural communities. Specific audience engagement initiatives and a developed digital offer will ensure increased reach and greater accessibility. We will strategically tour to cities, ensuring that rural narratives are heard and understood.
## **Goal 4: Dynamism - Improve financial sustainability and diversify income**
Since 2013 we have improved our financial sustainability, diversified our income streams and strengthened our business model. We will continue to improve our financial resilience through strong artistic forward planning and a strategic approach to fundraising. This will include; a targeted approach to trusts and foundations, a culture of partnership working to facilitate co-productions, a Friends Scheme and a developed approach to securing Business Partnerships. Regular financial reviews of all activity and robust governance will ensure a realistic financial case for all of our work.
- 13 -
## **PENTABUS ARTS LIMITED**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Goal 5: Dynamism - Ensure robust and efficient use of all resources**
Consistent self-evaluation will inform all of our decision making and ensure that our overheads and organisational spend are stream-lined and fit for purpose. Established systems will ensure that we are using funds as efficiently as possible, are working with the best people and using the resources available to us to best effect.
## **Goal 6: Create and maintain engagement with theatre for Young People**
We are committed to nurturing the next generation of rural theatre artists. Through our Pentabus Young Company we will create opportunities for young people from rural areas nationally to engage with the arts for the first time, learn how professional rural theatre is made, and develop their own individual creative response to the rural world.
## **Goal 7: Environmental Responsibility**
We have been integrating environmental practises in to the realisation of our artistic programme and the running of our building for several years. We will continue to refine our environmental actions and proactively share our practises with our peers and audiences.
- 14 -
## **PENTABUS ARTS LIMITED**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Structure, governance and management**
The company is constituted under a Memorandum of Association dated 19th July 1983.
Ms D Lennan Mr R H Burbidge OBE Ms J Hughes Ms S McCormick Ms R Robins Ms M F Bedford Ms M I Branson Mr S P Johnstone Mr M Hartley Ms E Dennis-Edwards
(Appointed 5 August 2020) (Appointed 5 May 2021)
- 15 -
## **PENTABUS ARTS LIMITED**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Recruitment and appointment of new trustees**
The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. The trustees shall be no less than 3 and no more than 20 in number. All members of the board who have served for 3 years must retire. Having retired, a trustee can offer themselves for re-election. New trustees are proposed and elected by a majority vote.
An induction process has been established for new Trustees. Separate meetings are arranged with the Chair and the Co-Directors. In addition, the trustees are presented with a list of board roles and responsibilities, a company handbook and company business plan and Charity Commission guidelines.
## **Board Appointments**
There was one new board appointment in the 2020/21 financial year, Mr M Hartley joined the board. The board has since recruited an additional board member, Ms E Dennis-Edwards who was appointed on 5 May 2021. The Board continues to look for new board members to support in meeting the company’s business plan objectives.
## **Organisational Structure**
During 2020-21 the company structure was as follows: Two Co-Directors (Artistic Director f/t and Executive Director f/t); an Audience Development & Engagement Manager (f/t), a Development Manager (p/t), a Producer (p/t) and a freelance Bookkeeper (p/t). The Co-Directorship is made up of an Artistic Director and an Executive Director who report to the Trustees at quarterly meetings. The Executive Director also acts as Company Secretary.
## **Risk management**
The Trustees have assessed the major risks to which the company is exposed, in particular those relating to the operations and finances of the company and are satisfied that systems and procedures are in place to mitigate exposure to major risks.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities.
- 16 -
## **PENTABUS ARTS LIMITED**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Statement of trustees' responsibilities**
The Trustees, who are also the directors of Pentabus Arts Limited for the purpose of company law, are responsible for preparing the Trustees’ Report and the accounts in accordance with the applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these accounts, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principle in the Charities SORP;
- Make judgements and estimates that are reasonable and prudent; and
- Prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' r eport was approved by the Board of Trustees.
On behalf of the board of Trustees
.............................. **Ms R Robins** Trustee (Chair) Dated: .........................
- 17 -
## **PENTABUS ARTS LIMITED**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PENTABUS ARTS LIMITED**
I report to the Trustees on my examination of the financial statements of Pentabus Arts Limited (the charity) for the year ended 31 March 2021.
## **Responsibilities and basis of report**
As the Trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ACCA, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
- 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
**Helen Tinsley FCCA Column House 7 London Road Shrewsbury SY2 6NN**
Dated: .........................
- 18 -
## **PENTABUS ARTS LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Unrestricted Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general d esignated**
**2021**
**2021**
**2021**
**Notes**
**£**
**£**
**£**
**Income and endowments from:**
Voluntary income
**3**
221,279
-
10,550
Charitable activities
**4**
17,373
-
-
Investments
**5**
734
-
-
Other income
**6**
1,262
674
-
**Total income**
240,648
674
10,550
**Expenditure on:**
Raising funds
Fundraising and publicity
**7**
461
-
-
Charitable activities
Production and marketing
**8**
108,761
2,585
10,550
Personnel, travel and accommodation
**8**
55,628
-
-
Administration, property and legal
**8**
10,748
-
-
Depreciation and other expenses
**8**
6,297
4,398
-
Other expenditure
**8**
6,409
-
-
**Total charitable expenditure**
187,843
6,983
10,550
**Total resources expended**
188,304
6,983
10,550
**Net incoming resources before transfers**
52,344
(6,309)
-|**Total**Unrestricted Unrestricted
Restricted
funds
funds
funds
general
d esignated
**2021**
2020
2020
2020
**£**
**£**
**£**
**£**
231,829
231,882
-
70,420
17,373
23,329
-
-
734
-
-
-
1,936
2,586
16,089
-
251,872
257,797
16,089
70,420
461
761
-
-
121,896
176,611
3,468
47,529
55,628
49,786
-
10,628
10,748
17,895
-
-
10,695
11,326
4,461
-
6,409
9,534
-
-
205,376
265,152
7,929
58,157
205,837
265,913
7,929
58,157
46,035
(8,116)
8,160
12,263|Total
2020
**£**
302,302
23,329
-
18,675
344,306
761
227,608
60,414
17,895
15,787
9,534
331,238
331,999
12,307|
|---|---|---|
- 19 -
## **PENTABUS ARTS LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Net incoming resources before transfers**
Gross transfers between funds
**Net income for the year/**
**Net movement in funds**
Fund balances at 1 April 2020
**Fund balances at 31 March 2021**|52,344
(46,166)
6,178
111,073
117,251|(6,309)
46,166
39,857
53,774
93,631|-
-
-
24,668
24,668|46,035
-
46,035
189,515
235,550|(8,116)
180
(7,936)
119,010
111,074|8,160
(180)
7,980
45,794
53,774|12,263
-
12,263
12,404
24,667|12,307
-
12,307
177,208
189,515|
|---|---|---|---|---|---|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 20 -
## **PENTABUS ARTS LIMITED**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2021**_
|**2021**
**Notes**
**£**
**Fixed assets**
Tangible assets
**14**
**Current assets**
Debtors
**13**
30,179
Cash at bank and in hand
311,455
341,634
**Creditors: amounts falling due within**
**one year**
**16**
(120,048)
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
Unrestricted funds - designated
Unrestricted funds - general|**£**
13,964
221,586
235,550
24,668
93,631
117,251
235,550|**2020**
**£**
44,030
218,572
262,602
(97,744)|**£**
24,657
164,858
189,515
24,668
53,774
111,073
189,515|
|---|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021.
The director' acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on .........................
.............................. .............................. Mr R H Burbidge OBE Ms R Robins **Trustee Trustee Company Registration No. 01747169**
- 21 -
**PENTABUS ARTS LIMITED**
**BALANCE SHEET (CONTINUED)** _**AS AT 31 MARCH 2021**_
## **1 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **2 Accounting policies**
## **Charity information**
Pentabus Arts Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Pentabus Theatre, The Old School, Bromfield, Ludlow, Shropshire, SY8 2JU, United Kingdom.
The charitable company is a public benefit entity.
## **2.1 Accounting convention**
The accounts have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **2.2 Going concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **2.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
- 22 -
## **PENTABUS ARTS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **2 Accounting policies**
## **(Continued)**
## **2.4 Incoming resources**
All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
Items of income are recognised and included in the accounts when all of the following criteria are met:
- The charity has entitlement to the funds;
- Any performance conditions attached to the item(s) of income have been met or are fully within the control of the charity;
- There is sufficient certainty that receipt of the income is considered probable; and
- The amount can be measured reliably.
Income received in advance of a theatrical performance or provision of other specified service is deferred until the criteria for income recognition are met.
## **2.5 Resources expended**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party. It is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Cost of raising funds comprise of Just Giving fees relating to donations received, fundraising event costs and costs relating to staff visiting potential donors.
- Expenditure on charitable activities includes personnel, travel and accommodation costs, production and marketing costs, administration, property and legal expenses and depreciation and other expenses.
- Other expenses represents those items not falling into any other heading.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **2.6 Tangible fixed assets**
Individual fixed assets costing £1,000 or more are capitalised at cost and are depreciated over their estimates useful economic lives at the following annual rates:
Improvements to property 15% reducing balance Technical equipment 15% reducing balance and 25% straight line
Currently the LED lighting is being depreciated on a 25% straight line basis as was agreed by the Board of Trustees at the 8 September 2016 meeting and the new sound equipment purchased in March 2020 is also being depreciated on a 25% straight line basis.
During the 2020 financial year we reviewed and considered if the depreciation rates used were appropiate, in a small number of cases it was agreed the depreciation previously charged was not appropiate and therefore we fully depreciated the assets to reflect the true net book value.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
## **2.7 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
- 23 -
## **PENTABUS ARTS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **2 Accounting policies**
## **(Continued)**
## **2.8 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
## **2.9 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **2.10 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2.11 Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **2.12 Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.
- 24 -
## **PENTABUS ARTS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **2 Accounting policies**
**(Continued)**
## **2.13 Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **3 Voluntary income**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
Voluntary income
221,279
10,550
**For the year ended 31 March 2020**
231,882
70,420
**Voluntary income**
Arts Council England grant
190,779
-
Shropshire Council grant
6,000
2,300
Millichope Foundation grant
500
-
Esmée Fairbairn
14,000
-
Garfield Weston Foundation
2,500
-
Elmley Foundation
-
Arts Council Funding
-
The Clive and Sylvia Richards Charity
-
5,250
OSLTS
-
The Adlard Family Charitable Foundation
500
Hereford Community Fund
-
Leche Trust
Wynn Foundation
-
1,500
National Trust Legacy Project
Shropshire Masons Charitable Fund
-
500
The Haystack Trust
-
1,000
Studio
-
Other
7,000
-
221,279
10,550|**Total**
**2021**
**£**
231,829
190,779
8,300
500
14,000
2,500
-
-
5,250
-
500
-
1,500
500
1,000
-
7,000
231,829|**Total**
**2020**
**£**
302,302
302,302
187,332
1,300
3,000
17,000
19,000
4,000
27,296
5,000
16,174
5,000
1,500
-
4,575
-
2,875
4,000
4,250
302,302|
|---|---|---|
- 25 -
## **PENTABUS ARTS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **4 Charitable activities**
|Box office & Other earned income.
Fundraising income
|**2021**
**£**
4,404
12,969
17,373|**2020**
**£**
19,727
3,602
23,329|
|---|---|---|
## **5 Investments**
||**Unrestricted**|Total|
|---|---|---|
||**funds**||
||**general**||
||**2021**|2020|
||**£**|£|
|Interest receivable|734|-|
## **6 Other income**
|**Unrestricted Unrestricted**
**funds**
**funds**
**general d esignated**
**£**
**£**
Other income
1,262
-
Theatre Tax Relief
-
674
1,262
674
**For the year ended 31 March 2020**
2,586
16,089
**7**
**Raising funds**|**Total**
**2021**
**£**
1,262
674
1,936|**Total**
**2020**
**£**
2,586
16,089
18,675
18,675|
|---|---|---|
|**Unrestricted**
**funds**
**general**
**2021**
**£**
Fundraising and publicity
Staging fundraising events
461
461|**Total**
**2020**
**£**
761
761|
|---|---|
- 26 -
## **PENTABUS ARTS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **8 Charitable activities**
|**Production/**
**marketing**
**Personnel**
**£**
**£**
Employees' salaries
84,155
-
Depreciation and impairment
-
-
Employee salaries - management
54,801
Employee other costs
-
827
Marketing expenses
359
-
Other production costs
31,353
-
Office running costs
5,752
-
Premises costs
-
-
Insurance
-
-
Maintenance costs
-
-
Bank charges
-
-
Arts Council England Funding Costs
-
-
Other charitable expenditure
277
-
121,896
55,628
Share of support costs (see note 9)
-
-
Share of governance costs (see note 9)
-
-
121,896
55,628|**Admin/**
**general**
**£**
-
-
-
-
-
-
3,892
2,115
3,049
1,469
223
-
-
10,748
-
-
10,748|**Dep'n**
**£**
-
10,695
-
-
-
-
-
-
-
-
-
-
-
10,695
-
-
10,695|**Other**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
153
6,256
6,409|**Total**
**2021**
**£**
84,155
10,695
54,801
827
359
31,353
9,644
2,115
3,049
1,469
223
-
277
198,967
153
6,256
205,376|**Total**
**2020**
**£**
79,091
15,787
47,369
2,417
1,809
143,194
9,959
4,572
2,678
3,908
137
10,783
-
321,704
494
9,040
331,238|
|---|---|---|---|---|---|
- 27 -
## **PENTABUS ARTS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **8 Charitable activities**
|**Charitable activities**
**Analysis by fund**
Unrestricted funds - general
Unrestricted funds - designated
Restricted funds
**For the year ended 31 March 2020**
Unrestricted funds - general
Unrestricted funds - designated
Restricted funds|108,761
2,585
10,550
121,896
176,611
3,468
47,529
227,608|55,628
-
-
55,628
49,786
-
10,628
60,414|10,748
-
-
10,748
17,895
-
-
17,895|6,297
4,398
-
10,695
11,326
4,461
-
15,787|6,409
-
-
6,409
9,534
-
-
9,534|**(Continued)**
187,843
6,983
10,550
205,376
265,152
7,929
58,157
331,238|
|---|---|---|---|---|---|---|
- 28 -
## **PENTABUS ARTS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **9 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Hospitality
153
-
Trustees' expenses
-
(160)
Legal and professional
fees
-
3,946
Independent
Examination costs
-
1,800
Independent Examiner's
fees
-
670
153
6,256
Analysed between
Charitable activities
153
6,256|**2021**
**£**
153
(160)
3,946
1,800
670
6,409
6,409|**2020 Basis of allocation**
**£**
494 Support
1,874 Governance
5,976
Governance
690
Governance
500
Governance
9,534
9,534|
|---|---|---|
## **10 Trustees**
None of the Trustees (or any persons connected with them) received any remuneration or other benefits during the year .
Trustees' expenses
|**2021**|**2020**|
|---|---|
|**£**|**£**|
|(160)|1,874|
- 29 -
## **PENTABUS ARTS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **11 Movement in funds**
||||**Movement in funds**|**Movement in funds**||
|---|---|---|---|---|---|
||**Balance at 1**|**Incoming**|**Resources**|**Transfers**|**Balance at**|
||**April 2020**|**resources**|**expended**||**31 March**|
||||||**2021**|
||**£**|**£**|**£**|**£**|**£**|
|**Unrestricted funds**||||||
|General fund|46,073|240,648|(188,304)|(46,166)|
52,251|
|Contingency reserve|65,000|-|-|-|65,000|
||111,073|240,648|(188,304)|(46,166)|
117,251|
|**Restricted funds**||||||
|The Arts Council England Catalyst||||||
|Evolve|24,668|||-|24,668|
|C&S Richards|-|5,250|(5,250)|-|-|
|Shropshire Masons Fund|-|500|(500)|-|-|
|The Haystack Trust|-|1,000|(1,000)|-|-|
|Shropshire Council|-|2,300|(2,300)|-|-|
|Wynn Foundation|-|1,500|(1,500)|-|-|
||24,668|10,550|(10,550)|-|24,668|
|**Designated funds**||||||
|Strategic Development fund|53,774|674|(6,983)||47,465|
|Designated Fund 21/22||||46,166|46,166|
||53,774|674|(6,983)|46,166|93,631|
|**Totals**|189,515|251,872|(205,837)|-|235,550|
The General Fund are the "free reserves" including any fixed assets.
The Contingency Reserve has been built up year on year in relation to the Trustees' policy. Further information can be found in the Trustees' Report.
The Designated Fund was created in the 2016 financial year by the charity for future strategic development, to support new premises, research and development costs and capital purchases. In September 2016 the Board agreed to transfer the Theatre Tax Relief claim monies to this fund as the money cannot be guaranteed to continue because it is subject to Government policy. At that time the Board also agreed to use the monies in the Designated Fund towards new LED lighting. The balance at the 2021 year end is £93,631 and further information on the £46,166 transfer in during the year can be found in the Trustees' Report.
- 30 -
## **PENTABUS ARTS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **11 Movement in funds**
## **(Continued)**
## **Restricted Funds**
Arts Council England Funding - this is the final year of the 3 year Catalyst Evolve programme funded through Arts Council England, to support Pentabus Arts Limited to expand their income through Individual Giving and Business Partnerships. The costs incurred against this programme in 2021 were £10,550. A balance of £24,668 has been carried forward in to the 2022 financial year.
## **12 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
|**Employment costs**
Wages and salaries
Social security costs
Other pension costs
No employees received total employee benefits of more than £60,000.
**13**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income|**2021**
**Number**
5
**2021**
**£**
128,460
7,661
2,835
138,956
**2021**
**£**
26,503
1,531
2,145
30,179|**2020**
**Number**
4
**2020**
**£**
110,922
10,472
2,560
123,954
**2020**
**£**
10,173
32,060
1,797
44,030|
|---|---|---|
- 31 -
## **PENTABUS ARTS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**14**
**Tangible fixed assets**
**Improvements**
**to property**
**Technical**
**equipment**
**£**
**£**
**Cost**
At 1 April 2020
41,979
73,434
At 31 March 2021
41,979
73,434
**Depreciation and impairment**
At 1 April 2020
41,979
48,776
Depreciation charged in the year
-
10,694
At 31 March 2021
41,979
59,470
**Carrying amount**
At 31 March 2021
-
13,964
At 31 March 2020
-
24,658
**15**
**Financial instruments**
**2021**
**£**
**Carrying amount of financial assets**
Debt instruments measured at amortised cost
339,492
**Carrying amount of financial liabilities**
Measured at amortised cost
114,061|**Total**
**£**
115,413
115,413
90,755
10,694
101,449
13,964
24,658
**2020**
**£**
260,804
92,311|
|---|---|
## **Financial assets**
Financial assets measured at amortised cost consists of trade debtors, other debtors and cash at bank and in hand.
## **Financial liabilities**
Financial liabilities measured at amortised cost consists of trade creditors, other creditors and accruals and deferred income.
## **16 Creditors: amounts falling due within one year**
|Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**2021**
**£**
5,989
3,216
843
110,000
120,048|**2020**
**£**
5,433
18,445
7,529
66,337
97,744|
|---|---|---|
- 32 -
## **PENTABUS ARTS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **17 Deferred income**
Deferred income represents grants received during the year which relate to the next financial year. The amount deferred at the year end will be released during the year ended 31 March 2022 as the projects and work are completed.
|||||**2021**|**2020**|
|---|---|---|---|---|---|
|||||**£**|**£**|
||Deferred income is included within:|||||
||Creditors due within one year|||107,051|62,550|
||Total deferred income at 1 April 2020|||62,550|71,750|
||Amounts received in year|||296,373|335,106|
||Amounts credited to statement of financial|activities||(251,872)|(344,306)|
||**Total deferred income at 31 March 2021**|||107,051|62,550|
|**18**|**Analysis of net assets between funds**|||||
|||**Unrestricted**|**Designated**|**Restricted**|**Total**|
|||**fund**|**fund**|**fund**||
|||**£**|**£**|**£**|**£**|
||Fund balances at 31 March 2021 are|||||
||represented by:|||||
||Tangible assets|4,978|8,986|-|13,964|
||Current assets/(liabilities)|112,273|84,645|24,668|221,586|
|||117,251|93,631|24,668|235,550|
## **19 Related party transactions**
## **Remuneration of key management personnel**
The remuneration of key management personnel is as follows.
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Aggregate compensation|65,343|69,181|
- 33 -
## **PENTABUS ARTS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **20 Operating lease commitments**
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Within one year|1,000|1,000|
## **21 Ultimate controlling party**
The company is controlled by the board of trustees.
- 34 -