Registered number: 01928541 Charity number: 292559
THEATRE DEVELOPMENT TRUST (A company limited by guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
THEATRE DEVELOPMENT TRUST (A company limited by guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the company, its Trustees and advisers | 1 - 2 |
| Trustees' report | 3 - 7 |
| Independent auditor's report on the financial statements | 8 - 12 |
| Statement of financial activities | 13 |
| Balance sheet | 14 |
| Statement of cash flows | 15 |
| Notes to the financial statements | 16 - 27 |
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
REFERENCE AND ADMINSTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023
Trustees
Kathryn Ruth Bennett Thomas William Bird Griselda Bourne Andrew James Neville Collier Alan Arthur Finch Henrietta Lucy Anne Finch Alexander Rupert Gavin Patrick Gracey Niove Rachel Janis Eleanor Rose Lloyd Patrick Howard Murphy Natalie Pelman Constantinides Rebecca Ellen Rae Mark Gabriel Rubinstein Edward George Crighton Snape Rosemary Anne Squire Anna Elizabeth Williams Jonathan Ryerson Douglas Church Kenneth Howard Wax Tristan Michael Douglas Baker Andrew Rawlinson
Appointed on 28 April 2023 Appointed on 14 June 2023 Appointed on 28 April 2023
Appointed on 25 July 2023 Resigned on 3 July 2024
Appointed on 14 June 2023
Resigned on 3 July 2024 Appointed on 28 April 2023 Resigned on 28 June 2023 Appointed on 3 July 2024 Appointed on 3 July 2024 Appointed on 3 July 2024
Company registered number 01928541 Charity registered number 292559 Registered office 32 Rose Street London WC2E9ET
Independent auditor Moore Kingston Smith LLP 6th Floor 9 Appold Street London EC2A 2AP
Page 1
THEATRE DEVELOPMENT TRUST (A company limited by guarantee)
REFERENCE AND ADMINSTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023
Bankers Lloyds TSB Bank PLC 48 - 49 Strand London WC2N 5LL Bank of Scotland PLC 600 Gorgie Road Edinburgh EH11 3XP Barclays Bank PLC 93 Baker Street London W1A 4SD
Investment advisors Investec Wealth and Investments Limited
2 Gresham Street London EC2 7QP
Page 2
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023
The Trustees present their annual report together with the audited financial statements of the company for the year 1 January 2023 to 31 December 2023. The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory
requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the company qualifies as small under section 382 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report). Regulations 2013 has been omitted.
Objectives and activities
a. Policies and objectives
The principal activity of the charity is the promotion and advancement of the dramatic and other performing arts for the benefit of the public through supporting the work of various charitable foundations together with the provision of grants to individuals.
Each year the Trustees review the objectives and activities to ensure they continue to reflect the aims. In carrying out this review the Trustees have considered the Charity Commission's general guidance on public benefit.
Achievements and performance
a. Review of activities
Theatre Development Trust is a company. A loan of £11,150,000 from Society of London Theatre is held by the company with the aim of generating an ongoing source of income enabling the charity to fulfil its aims and objectives. From 1st January 2021, an interest charge has been levied on the loan.
Recent years have seen greater volatility in financial markets which has impacted the company's investments. In 2023, the investments went up to 4.6% in value.
Page 3
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023
Achievements and performance (continued)
A strategic review of the company was conducted during the year and this paused the programme of grant making temporarily. As a result, grants made from unrestricted reserves fell to £181,461 in 2023 compared with £451,902 in the previous year. Following the strategic review, three new independent trustees were appointed to the Board. A review of the grants process was also undertaken which resulted in a new set of guidance and application forms for applicants. The new process has increased transparency and re-focused the charities aims to support work across its 3 core objectives: Workforce, Access and Audiences.
In 2023 the charity continued its support of the TAF Creative Workforce Pilot Programme. 75% of participants were recruited into the programme through eleven of the partners including Nottingham Playhouse, Chichester Festival Theatre, Lyric Belfast and Leeds Playhouse. Theatre People were contracted to deliver professional development workshops and HR support to all participants for the length of their contract. Fundraising against the total target of £1.5M achieved £1.08M in cash and pledges - with notable grants made by Backstage Trust, Mackintosh Foundation and Vogue World: London.
In 2023, the charity continued its support of Stage One with a grant towards its Development Programme to support new producers. The grant went towards support for Stage One's flagship programmes including; The Bridge the Gap Scheme, the Bursary Scheme and the London Placement Scheme. This has included a focus towards supporting new producers from under-represented groups who identify as BAME, those with a disability and those at a financial disadvantage. For example - Bridge the Gap has supported 52 producers from under-represented backgrounds since its launch in 2018. We are also encouraged that TDT's endorsement and funding enables Stage One to apply for and un-lock funding from additional sources.
b. Investment policy and performance
The Trustees' investment powers are governed by the Memorandum and Articles of Association which permits the charity's funds to be invested in a wide range of securities and assets.
The Trustees' policy is to maintain a portfolio which generates a reasonable level of capital growth and income while operating at a medium risk profile. Detailed governance and strategy of the investments is delegated by the Trustees to the Investment sub-Committee, with specific investment decisions managed by the company's broker, Investec Wealth and Investment. At 31st December 2023 all investment assets (2022: 95.30%) were controlled through the broker.
Page 4
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023
Achievements and performance (continued)
Asset allocations are monitored closely and generally remained within target ranges. At the year end, the value of equities was at the lower end of the target range while fixed interest was towards the higher end of the range. Investment income was in line with the previous year at £429,109 (2022: £429, 977) with a realised gain on disposal of £697,217 (2022: £512,632) and an unrealised loss on revaluation of £28,644 (2022: loss of £2,666,466).
Financial review
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Full details of the Trustees' reasoning for the adoption of the going concern basis are included in the going concern note in the accounting policies section of the financial statements.
b. Reserves policy
The Board has reviewed the value of free reserves that should be held by the charity to mitigate risks to activity and the ability of the charity to deliver on its strategic objectives.
The Board has set the reserves policy as follows: -To hold 15% of the carrying value of the fixed asset investment
- -In addition, to hold 3 months of projected annual grant payments
The target for free reserves based on this policy is £2.5m. At the year end the actual level of free reserves is above this target at £3,297,614. The Trustees have set a budget for 2024 with increased provision for grant making and which will utilize some of the reserves held above target.
c. Asset cover for funds
The Trustees are of the opinion that, as at the balance sheet date, the assets are sufficient to meet the charity's obligations.
Page 5
THEATRE DEVELOPMENT TRUST (A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023
Structure, governance and management
a. Constitution
Theatre Development Trust is established as a company limited by guarantee and is registered as a charity with the Charity Commission. Its affairs, including the appointment of Trustees, are governed by its Articles of Association which allow the charity to undertake any activity covered by its objects with no specific restrictions and limits the liability of the Members in the event of the company being wound up to a sum not exceeding £10.
The Trustees of the charity are responsible for its overall management and control. The work of implementing the policies is carried out by the Board of Trustees which meets regularly. There are no paid employees.
b. Method of appointment of Trustees
New Trustees are appointed by the Trustees.
c. Policies adopted for the induction and training of Trustees
New Trustees receive copies of minutes of previous meetings and their induction and training includes meeting with key personnel and other Trustees and receiving relevant historical information.
d. Risk management
The Board of Trustees is responsible for the management of the risks faced by the Charity. Risks are identified, assessed and controls established as appropriate. The major risk to the Charity is to maintain the value of investment assets in real terms to protect the funds available for grant making. The Trustees continue to monitor closely the performance of the investments, level of reserves and extent of grant giving to ensure financial risks are mitigated.
Plans for future periods
For the immediate future, the principal areas of focus will continue to be to support initiatives in Workforce Training and Career Development, Audience Development and Access Requirements.
Page 6
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial period. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material
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departures disclosed and explained in the financial statements,
•prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are
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unaware, and
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•that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Approved by order of the members of the board of Trustees on 21st October 2024 and signed on their behalf by:
Eleanor Lloyd (Trustee)
Page 7
NDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THEATRE DEVELOPMENT TRUS (A company limited by guarantee)
Opinion
We have audited the financial statements of Theatre Development Trust ('the company') for the year ended 31st December 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the related notes, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the company’s affairs as at 31st December 2023 and of its Surplus for
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the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Page 8
NDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THEATRE DEVELOPMENT TRUS (A company limited by guarantee)
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees’ report for the financial year for which the financial statements are
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prepared is consistent with the financial statements; and
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the Trustees’ report report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received
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from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made;
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we have not received all the information and explanations we require for our audit; or
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the Trustees were not entitled to prepare the financial statements in accordance with the small companies
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regime and take advantage of the small companies’ exemption in preparing the directors’ report and from the requirement to prepare a strategic report.
Page 9
NDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THEATRE DEVELOPMENT TRUS (A company limited by guarantee)
Responsibilities of Trustees
As explained more fully in the Trustees’ responsibilities statement, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
• Conclude on the appropriateness of the Trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Page 10
NDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THEATRE DEVELOPMENT TRUS (A company limited by guarantee)
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
• We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
• We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
• We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
• We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
• Based on this understanding, we designed specific appropriate audit procedures to identify instances of noncompliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
Page 11
NDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THEATRE DEVELOPMENT TRUS (A company limited by guarantee)
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken for no purpose other than to draw to the attention of the company’s members those matters which we are required to include in an auditor’s report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the company and company’s members as a body, for our work, for this report, or for the opinions we have formed.
Adam Fullerton (Statutory Auditor) for and on behalf of Moore Kingston Smith LLP
Chartered Accountants 9 Appold Street London EC2A 2AP
Date: 30 October 2024
Page 12
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023
| Note Income from: Donations and legacies 4 Investments 5 Total income Expenditure on: Raising funds 6 Charitable activities 7 Total expenditure Net (expenditure)/income before net (losses)/gains on investments Realised gains/(losses) on investments Unrealised gains/(losses) on investments Transfers between funds Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward 14 |
Restricted funds Unrestricted funds Total funds Restated Total funds 2023 2023 2023 2022 £ £ £ £ 259,834 785 260,619 915,352 12,425 416,684 429,109 429,977 |
|---|---|
| 272,259 417,469 689,728 1,345,329 |
|
| - 395,283 395,283 342,258 638,408 311,239 949,647 2,686,094 |
|
| 638,408 706,522 1,344,930 3,028,352 |
|
| (366,149) (289,053) (655,203) (1,683,023) (1,950) 67,924 65,974 512,632 6,588 596,011 602,599 (2,666,466) - - - - |
|
| (361,511) 374,882 13,370 (3,836,857) |
|
| 363,834 2,922,732 3,286,566 7,123,424 (361,511) 374,882 13,370 (3,836,857) |
|
| 2,323 3,297,614 3,299,936 3,286,567 |
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 14 to 27 form part of these financial statements.
Page 13
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee) REGISTERED NUMBER: 01928541
BALANCE SHEET
AS AT 31 DECEMBER 2023
| Note Fixed assets Investments 11 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current liabilities Total assets less current liabilities Total net assets Charity funds Restricted funds Unrestricted funds Total funds 14 14 |
Restated 2023 2022 £ £ 15,597,157 14,560,483 15,597,157 14,560,483 - 421 100,112 713,525 100,112 713,946 (12,397,332) (11,987,862) (12,297,220) (11,273,916) 3,299,937 3,286,567 3,299,937 3,286,567 2,323 363,835 3,297,614 2,922,732 3,299,937 3,286,567 |
Restated 2022 £ 14,560,483 |
|---|---|---|
| 3,286,567 | ||
| 3,286,567 | ||
| 363,835 2,922,732 |
||
| 3,286,567 |
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees on 21st October 2024 and signed on their behalf by:
Eleanor Lloyd Kathryn Bennett (Trustee) (Trustee)
The notes on pages 16 to 27 form part of these financial statements.
Page 14
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023
| FOR THE YEAR ENDED 31 DECEMBER 2023 | |
|---|---|
| Note Cash flows from operating activities Net cash used in operating activities 16 Cash flows from investing activities Dividends, interests and rents from investments Proceeds from sale of investments Purchase of investments Net cash provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 17 |
Restated 2023 £ 2022 £ (674,421) (1,445,450) |
| 429,109 429,977 4,430,643 2,879,570 (4,243,542) (2,671,844) |
|
| 616,210 637,703 |
|
| (58,211) (807,747) 965,710 1,773,457 |
|
| 907,499 965,710 |
Page 15
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1. General information
Theatre Development Trust is a company limited by guarantee and registered in England & Wales. The address of its registered office is 32 Rose Street, London, WC2E 9ET.
2.
Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011.
Theatre Development Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Company status
The company is a company limited by guarantee. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company.
2.3 Going concern
The charity meets its day to day working capital requirements through the utilisation of its own funds and a loan advanced by Society of London Theatre (SOLT) as disclosed in note 18. The charity utilised the loan to invest in listed securities and generate ongoing income for the charity's operation. Whilst the loan is technically repayable on demand, the loan agreement specifies that it will only be repayable to the extent that the charity has surplus resources to enable such repayments to be made. The trustees are not aware of any circumstances that might cause the loan to become repayable in the foreseeable future.
Total cash and investments increased by £423,000 to £15,697,000 and unrestricted reserves increased by £403,000.
From 2021, SOLT have levied an interest charge on the loan and given the current value of expenditure, it is expected that the charity will rely on a moderate level of long term annual capital return (3-4%) to finance operations without impacting on the current scope of grant giving. The current level of reserves is set with a view to weathering any short term adverse capital movements.
After reviewing the charity's projections, at the time of approving these financial statements the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the next 12 months. The trustees therefore consider it appropriate to continue to adopt the going concern basis in preparing the charity's financial statements.
Page 16
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
2. Accounting policies (continued)
2.4 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Donation income is recognised when received.
Legacy income is recognised when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution.
Dividends from investments are recognised when dividends are recieved. Interest receivable from investments is recognised over the period in which it is earned.
2.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
All expenditure is accounted for on the accruals basis. All expenses including support costs and governance costs are all allocated to the applicable expenditure headings. Expenditure on raising funds comprises investment management fees and loan interest payable.
Expenditure on raising funds includes all expenditure incurred by the company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional and those conditions remain in control of the charity, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
2.6 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the bank.
2.7 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Statement of Financial Position date, using closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
Current asset investments are a form of basic financial instrument and are initially, and subsequently, recognised at their transaction value. Interest receivable is included in debtors and is recognised in the statement of comprehensive income.
Page 17
THEATRE DEVELOPMENT TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
2. Accounting policies (continued)
2.8 Debtors
Debtors are recognised at their settlement amount.
2.9 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.10 Liabilities and provisions
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
2.11 Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
Financial instruments include a loan from Society of London Theatre (note 18) which is repayable on demand.
2.12 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Page 18
(A company limited by guarantee)
THEATRE DEVELOPMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
3. Judgements in applying accounting policies and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
The following are the company's key sources of estimation uncertainty:
Accruals
The management makes an estimate of accruals at the year end based on invoices received after the year end which relate to the year and which have not been invoiced.
Valuation of fixed asset investments
The management makes an estimate of the fair value of fixed asset investments at the reporting date using quoted prices at that date.
4.
Income from donations and legacies
| Restated | ||||
|---|---|---|---|---|
| Restricted | Unrestricted | Total | Total | |
| funds | funds | funds | . funds | |
| 2023 | 2023 | 2023 | 2022 | |
| £ | £ | £ | £ | |
| Donations | 259,834 | 785 | 260,619 | 915,352 |
| Total 2022 | 915,352 | 915,352 |
Restricted donations include £Nil (2022: 280,000) from Arts Council England (ACE).
Page 19
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
5. Investment income
6.
| Dividends and interest receivable from listed investments Bank interest receivable Total 2022 Expenditure on raising funds Costs of raising voluntary income |
Restricted funds Unrestricted funds Total funds Total funds 2023 2023 2023 2022 £ £ £ £ 12,425 416,684 429,109 429,966 - - - 11 |
|---|---|
| 12,425 416,684 429,109 429,977 |
|
| 10,386 419,591 429,977 |
| Loan interest payable Investment management charges Total 2022 |
Unrestricted funds Total funds Total funds 2023 2023 2022 £ £ £ 334,500 334,500 278,750 60,783 60,783 63,508 |
|---|---|
| 395,283 395,283 342,258 |
|
| 342,258 342,258 |
Page 20
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
| Analysis of expenditure by activities Charitable activities Total 2022 Analysis of direct costs Theatre Artist Fund grants Olivier bursaries Grants to institutions (Note 8) Theatre Artists Fund costs Miscellaneous expenses Theatre Artists Fund placements Total 2022 |
Activities undertaken directly Total funds Restated Total funds 2023 2023 2022 £ £ £ 949,647 949,647 2,686,094 |
|---|---|
| 2,686,094 2,686,094 Charitable activities Total funds Restated Total funds 2023 2023 2022 £ £ £ 100,090 100,090 1,671,000 80,754 80,754 68,873 209,461 209,461 451,902 - - 8,851 54,024 54,024 3,200 505,318 505,318 482,268 |
|
| 949,647 949,647 2,686,094 |
|
| 2,686,094 2,686,094 |
7. Analysis of expenditure by activities
Page 21
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
8. Analysis of grants to institutions
| Analysis of grants to institutions | ||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Go Live Theatre Projects | 12,500 | 50,000 |
| Theatre Investment Fund Limited (t/a Stage One) | 85,000 | 97,326 |
| UK Theatre Association | - | 80,000 |
| National Student Drama Festival | - | 25,000 |
| Society of London Theatre - Workforce Training & Development | 38,397 | 116,631 |
| Society of London Theatre - Access London Theatre | 3,360 | 420 |
| Parents in Performing Arts | 1,000 | - |
| UK Theatre Association — Theatre Support Line | 3,202 | 16,464 |
| Society of London Theatre - Back on Stage / See it Safely | - | 45,639 |
| Council for Dance and Musical Theatre | 3,382 | 3,284 |
| Writers' Guild of Great Britain — New Play Commission Scheme | - | 10,000 |
| Dancers Career Development | - | 6,000 |
| Theatrecraft | 9,199 | - |
| Schools Theatre Week | 15,000 | - |
| Other Grants to Institutions | 38,421 | 1,138 |
| 209,461 | 451,902 |
The grant to Go Live Theatre Projects (formerly Mousetrap Theatre Projects) was to support its work in the area of audience development and young people.
The grant to Theatre Investment Fund Limited (t/a Stage One) was to help provide bursaries and placements to new & emerging theatre producers and support in the outreach project staff costs.
The grant to UK Theatre Association was to support its industry training initiatives.
The grant to National Student Drama Festival was to part fund the online festival for promoting career opportunities in the sector.
The grant to Society of London Theatre - Workforce Training & Development was to establish initiatives to address current and future skill shortages in the industry.
The grant to Society of London Theatre - Access London Theatre was to fund the creation and publication of the guide to access for London theatres.
Parents and carers in the Performing Arts address the challenges of parents in the performing arts.
The grant to UK Theatre Association — Theatre Support Line was to set up a helpline to support workers in the industry with guidance and help on a number of issues.
Page 22
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
8
Analysis of grants to institutions (continued)
The grant to Society of London Theatre - Back on Stage / See it Safely was to create guidance for theatres on how to make their venue Covid secure.
The grant to Council for Dance, Drama and Musical Theatre was to support its work in providing training to the dance, drama and music industry.
The grant to Writers' Guild of Great Britain — New Play Commission Scheme was to support the development of the writing of new plays.
The grant to Dancers Career Development was to assist in re-training dancers in other careers in the performing arts.
Theatrecraft provides careers events for anyone 16-30 seeking off-stage roles in theatre.
Schools Theatre Week relates to a schools access to theatre grant.
Analysis of grants to individuals
| Restricted Theatre Artist Fund grants to individuals | 2023 2022 £ £ 100,090 1,671,000 |
|---|---|
9.
Staff costs
The company has no employees other than the Trustees, who did not recieve any remuneration or reimbursed expenses during the year (2022 - £NIL).
10. Auditors remuneration
During the year the company obtained the following services from the company's auditors:
| 2023 | 2022 |
|---|---|
| £ | £ |
| 10,386 | 8,280 |
Page 23
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
11. Fixed asset investments
| Cost or valuation At 1 January 2023 Additions Transfers out Disposals Realised gain/(loss) Unrealised gain/(loss) Management charges Investment income reinvested At 31 December 2023 Net book value At 31 December 2023 At 31 December 2022 12. Debtors Due within one year Prepayments and accrued income |
Listed Investments Other Investments Total £ £ £ 14,308,298 252,185 14,560,483 4,246,111 (4,246,111) - - - - (4,430,643) 4,430,643 - 65,974 - 65,974 602,599 - 602,599 - (60,783) (60,783) (2,568) 431,453 428,885 |
Listed Investments Other Investments Total £ £ £ 14,308,298 252,185 14,560,483 4,246,111 (4,246,111) - - - - (4,430,643) 4,430,643 - 65,974 - 65,974 602,599 - 602,599 - (60,783) (60,783) (2,568) 431,453 428,885 |
|---|---|---|
| 14,789,770 807,387 15,597,157 |
||
| 14,789,770 807,387 15,597,157 |
||
| 14,308,298 252,185 14,560,483 |
||
| 2023 2022 £ £ - 421 |
||
| - 421 |
13. Creditors: Amounts falling due within one year
| Creditors: Amounts falling due within one year Other creditors Accruals and deferred income Grant creditors Deferred income: Brought forwards Released in year New provision added Carried forwards |
Restated 2023 2022 £ £ 11,149,823 11,176,634 500,657 443,765 746,852 367,463 |
|---|---|
| 12,397,332 11,987,862 |
|
| 2023 2022 £ £ 144,983 - (144,983) - 144,983 144,983 |
|
| 144,983 144,983 |
|
Page 24
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
| 14. Statement of funds Statement of funds - current year Unrestricted funds General Funds - all funds Restricted funds The Sir Peter and Lady Saunders Olivier Bursary Fund Theatre Artists Fund Theatre Artists Fund Placements Olivier Bursary Total of funds |
Restated Balance at 1 January Balance at 31 December 2023 Income Expenditure Gain/(Losses) Transfers 2023 £ £ £ '£ £ |
|---|---|
| 2,922,732 417,469 (706,522) 663,935 - 3,297,614 |
|
| 273,940 12,425 (10,000) 4,638 - 281,003 523,835 2,909 - - (526,744) - (433,940) 233,924 (605,408) - 526,744 (278,680) - 23,000 (23,000) - - - |
|
| 363,835 272,258 (638,408) 4,638 - 2,323 |
|
| 3,286,567 689,727 (1,344,930) 668,573 - 3,299,937 |
Restricted funds
The Sir Peter and Lady Saunders Olivier bursary fund is to be used to finance an annual bursary to a single student up to a maximum of £10,000, such amount to be reviewed every 5 years.
The Theatre Artists Fund is to be used to provide emergency support for theatre workers and freelancers across the UK. It is for theatre professionals who are in need of urgent and critical financial support due to the devastating impact of Covid-19 on the theatre sector.During the year the funders agreed to transfer the remaining funds to be used for Theatre Artist Placements.
The Theatre Artists Fund Pilot programme to provide placements in theatre venues to develop staff in a variety of technical skills in the performing arts. The deficit on this restricted fund will be made up by income in 2024.
The Olivier bursary fund exists to make grants to individual students within the theatrical industry.
| Statement of funds - prior year Unrestricted funds General Funds Restricted funds The Sir Peter and Lady Saunders Olivier Bursary Fund Theatre Artists Fund Theatre Artists Fund Placements Olivier bursary Total of funds |
Restated Balance at Balance at 31 1 January Restated Restated Gains/ December 2022 Income Expenditure (Losses) Transfers 2022 £ £ £ £ £ |
|---|---|
| 5,474,794 419,591 (842,084) (2,129,569) - 2,922,732 |
|
| 297,819 10,386 (10,000) (24,265) - 273,940 1,350,811 844,024 (1,671,000) - - 523,835 - 48,328 (482,268) - - (433,940) - 23,000 (23,000) - - - |
|
| 1,648,630 925,738 (2,186,268) (24,265) - 363,835 |
|
| 7,123,424 1,345,329 (3,028,352) (2,153,834) - 3,286,567 |
Page 25
15. Analysis of net assets between funds
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
Analysis of net assets between funds - current year
16.
| Fixed asset investments Current assets Creditors due within one year Total Analysis of net assets between funds - prior year Fixed asset investments Current assets Creditors due within one year Total Reconciliation of net movement in funds to net cash flow from operating activities Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for : Dividend, interest and rents from investments Profit on the sale of fixed assets investments (Gain)/loss on the revaluation of fixed assets investments Decrease/(increase) in debtors Increase in creditors Net cash provided by/(used in) operating activities |
Restricted funds Unrestricted funds Total funds 2023 2023 2023 £ £ £ 281,003 15,316,154 15,597,157 - 100,112 100,112 (278,680) (12,118,651) (12,397,331) |
Restricted funds Unrestricted funds Total funds 2023 2023 2023 £ £ £ 281,003 15,316,154 15,597,157 - 100,112 100,112 (278,680) (12,118,651) (12,397,331) |
|---|---|---|
| 2,323 3,297,614 3,299,937 |
||
| Restated Restated Restricted Unrestricted Total funds funds funds 2022 2022 2022 £ £ £ 273,940 14,286,543 14,560,483 89,895 624,051 713,946 - (11,987,862) (11,987,862) |
||
| 363,835 2,922,732 3,286,567 |
||
| Restated 2023 2022 £ £ 13,370 (3,836,857) |
||
| (429,109) (429,977) (65,974) (512,632) (602,599) 2,666,466 421 (18) 409,470 667,568 |
||
| (674,421) (1,445,450) |
Page 26
THEATRE DEVELOPMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
17. Analysis of cash and cash equivalents
| Analysis of cash and cash equivalents | |
|---|---|
| Cash in hand Cash held by investment managers Total cash and cash equivalents |
2023 2022 £ £ 100,112 713,525 807,387 252,185 |
| 907,499 965,710 |
18. Related party transactions
During the year, expenditure (gross of irrecoverable VAT) totalling £17,930 (2022: £185,290 ) was made on behalf of Theatre Development Trust (TDT) by the Society of London Theatre (SOLT), a company with a Board of Directors and Members substantially in common with TDT. In the year there was a total reimbursement by TDT of £49,314 (2022: £26,634). As a result, at the reporting date an amount of £4,750 was due to TDT by SOLT (in 2022 amount was £26,634 due to SOLT by TDT).
In addition to the above there is a loan of £11,150,000 (2022: £11,150,000) from the Society of London Theatre to the Theatre Development Trust, to provide an ongoing source of finance for the charity. Since 1 January 2021 interest has been levied on the loan at 2% per annum to 30 June 2022 and 3% thereafter.
Niove Janis, Eleanor Lloyd and Kenneth Wax who were Trustees of the charity in the year were also, for at least part of the year, Trustees of Theatre Investment Fund Limited (Stage One), a registered charity, to which grants were paid of £85,000 (2022: £97,326). At the balance sheet date £4,574 (2022: £4,574) was due to UK Theatre Association.
19.
Restatement of prior year figures
| Net assets and total funds at 1 January 2021 Surplus/deficit for year-ended 31 December 2022 Net assets and total funds at 31 December 2022 |
As previously reported Adjustment 1 Adjustment 2 As restated 7,123,424 - - 7,123,424 (3,324,411) (144,983) (367,463) (3,836,857) |
|---|---|
| 3,799,013 (144,983) (367,463) 3,286,567 |
Adjustment 1
Grant income of £144,983 that related to future periods as at 31 December 2022 has been adjusted and moved to deferred income. This reduction in income related to the restricted fund "Theatre Artists Fund Placements".
Adjustment 2
Grant expenditure commitments that had been communicated to beneficiaries before 31 December 2022 have now been accrued in full. The increase in grant expenditure for the year-ended 31 December 2022 all related to the restricted fund "Theatre Artists Fund Placements".
Page 27