**REGISTERED COMPANY NUMBER: 01956960 (England and Wales) REGISTERED CHARITY NUMBER: 296135**
Report of the Trustees and
Financial Statements for the Year Ended 31 March 2023
for
Phoenix Cinema Trust Limited
Ark Accountancy Chartered Certified Accountant & Statutory Auditor 31 Cheam Road Epsom Surrey KT17 1QX
Phoenix Cinema Trust Limited
Contents of the Financial Statements for the Year Ended 31 March 2023
|||Page||
|---|---|---|---|
|Report of the Trustees|1|to|5|
|Report of the Independent Auditors|6|to|8|
|Statement of Financial Activities||9||
|Balance Sheet||10||
|Cash Flow Statement||11||
|Notes to the Cash Flow Statement||12||
|Notes to the Financial Statements|13|to|20|
|Detailed Statement of Financial Activities|21|to|22|
Phoenix Cinema Trust Limited
## Report of the Trustees
## for the Year Ended 31 March 2023
The Trustees, who are also directors of the Charity for the purposes of the Companies Act 2006, are pleased to present their annual report, together with the audited financial statements of the charity, for the year ended 31 March 2023. These are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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).
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
The charity's purposes are the advancement of the education of the public and in particular of persons who live or work in London in the arts including, but without limiting the foregoing, the arts of film, television, drama, ballet, mime, dance, music, singing and opera, and for such purpose to establish, operate and manage and administer the Phoenix Cinema in the London Borough of Barnet and to promote and maintain and encourage schemes for the use thereof.
The trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers or duties.
The strategies employed to achieve these objectives are:
- To promote film culture by showing a broad range of quality films
- To preserve and develop the Phoenix Cinema as a popular centre of film, video and new media
- To encourage the greatest possible access to film activities for the diverse local communities.
There has been no change to these during the year.
There are four major areas of activity where we put these strategies into action which are: main feature film screenings, education and community activities, alternative content and special events including festivals.
## **ACHIEVEMENT AND PERFORMANCE**
## **Charitable activities**
2022 marked the return of cinemas to full trading without government support or restrictions for the first time since March 2020.
In the two years since the pandemic restrictions started, the cinema had transformed its management structure, bringing in greater expertise but at a lower overall cost, refurbished the foyer area and iconic outdoor 'neon' lighting (bringing in lower-energy LEDs), run a sustainability audit and rollout diversity and inclusion training ('Diversity and Respect in the workplace').
Much of this was delivered through funding from the UK government's 'Culture Recovery Fund' which was also essential for supporting the cinema when it was closed during the lockdowns and the phased reopenings. The Phoenix has also taken advantage of Barnet Council's local area funding scheme.
Starting the financial year, the cinema was in the strongest position it had been for years with a robust bank balance, a strong management team and an effective operating structure focussed on delivering the best experience for customers.
Throughout 22-23, the Phoenix was running a full programme of community and education activities, including screenings for local schools, community groups, Into Film festival, Parent and Baby club, captioned screenings alongside partnerships with Black History Walks, Birkbeck University, the UK Jewish Film Festival and Inckuder hosted screenings and events for the LGBTQIA community in Barnet. The cinema also continues to be the base for a weekly free-meals initiative, organised by the N2 Food Project.
One Trustee stepped down in January 2022; the remainder of the board remained in place throughout the year after six new trustees joined during the previous financial year. The key focus for the board was planning for a second screen which continues to be seen as a key pillar in delivering financial stability for the foreseeable future. By financial year end, the Phoenix was able to begin fundraising efforts for this project.
Page 1
Phoenix Cinema Trust Limited
## Report of the Trustees
for the Year Ended 31 March 2023
## **FINANCIAL REVIEW**
## **Financial position**
The Phoenix was able to enter the year with a strong cash balance of £88k due to the Culture Recovery Fund support funding for the arts and entertainment industry.
Despite a challenging FY23, the cash position remained strong and was £122k at the end of March 2023.
During the year, the cinema has received its final instalment from the Culture Recovery Fund and a £58k insurance settlement from Hiscox. These are the final COVID-related cash injections into the business.
For the financial year ending 31 March 2023, income totalled £610K with £439K coming from trading (mainly box office and kiosk food and drink sales), £112K from grants and donations (primarily the last stages of the Culture Recovery Fund support) and £58K of other income. Expenditure totalled £620K with £398K being direct costs/cost of sales (film hire and food and drink expenditure) and £222K being support costs. The average monthly number of employees dropped from 26 the previous year to 19.
Overall, the cinema made a loss of £10K for the financial year. However, net cash grew during the financial year by £39K to £122K.
## **Overall performance**
Trading revenue was £439K which was up 14% on FY2022. Admissions were 31,601 which was up 18% on 26,783 but less than half of the admissions in FY20 (64,275 admissions). This level of admissions is also just one third of its level 10 years earlier, reflecting the growth in local competition to the Phoenix since 2015, as well as lower cinema going across the UK since the pandemic, due to some changes in audience habits, but also a lack of compelling film titles due to production halts and delays during the pandemic.
The top 5 films at the Phoenix for the year were, in order:-
Living NT Live: Prima Facie The Banshees of Inisherin The Fabelmans Eric Ravilious
With the Culture Recovery Fund continuing, efforts were also made to diversify the audience through events such as a Eurovision party and a comedy event.
In the period since the end of March 2022, box office and F&B ('Food and Beverage') revenues have picked up but cinema-going has not yet fully recovered from the pandemic and the film production halts as a result of strikes in Hollywood during 2023 mean that disruption is not yet over.
## **Education and community**
The Phoenix no longer seeks funding for bespoke educational activities but seeks to partner with schools and colleges in the local community to deliver this part of its charitable remit.
The Phoenix is more closely linked into community activity in its immediate local area, as an active member of the N2 United network, hosting key events through the year and acting as the base for a weekly free meals scheme. Financial review
The Phoenix was able to enter the year with a strong cash balance due to the Culture Recovery Fund and with a more streamlined and focussed operation.
Since the end of the year, the cinema has not received any further Culture Recovery Fund support and is trading as it did prior to the pandemic.
Page 2
Phoenix Cinema Trust Limited
for the Year Ended 31 March 2023
## Report of the Trustees
## **FINANCIAL REVIEW**
## **Reserves policy**
The Board's reserves policy continues to be that the Phoenix should hold unrestricted general funds, held in cash or readily realisable assets, equivalent to at least two months' operating costs (approximately £80K). These funds should be held to mitigate the risk of poor trading or cover unplanned emergency repairs or other expenditure. The reserves policy has not been changed.
Unrestricted general funds held at 31 March 2023 were £57,468 (see note 16).
The management and Board of the Phoenix monitors cash flow and projected cash on a weekly basis in order to anticipate any solvency problems.
As at the end of the year, the Phoenix's assets were sufficient to meet its current obligations. The major asset remains the cinema building and associated land.
## **Going concern**
The cinema ended FY22/23 in a reasonable financial position with a reasonable cash position and clear plans for the future. Trading at the start of FY23/24 picked up due to audiences flocking to see Vermeer: The Great Exhibition, for which the Phoenix was one of the leading UK cinemas and which enabled it to make a profit when few other UK cinemas could do so.
After a slow start to 2023, UK cinema saw arguably its biggest event since the pandemic with the simultaneous release of Oppenheimer and Barbie ('Barbenheimer') in July 2023 which boosted the Phoenix box office and put UK cinema back on the front page. However, trading since has been a little slower than hoped for.
With the need to realise the plan to create a second screen, but private and other donations not forthcoming to fund this, , the board will now investigate selling the unused land at the rear of the property with the aim of majority funding a capital project to create a second screen and bring the physical condition of the cinema back to the standard that audiences expect, so that it can finally compete more strongly with other local venues.
## **FUTURE PLANS**
Trading remains inconsistent with an average of £25K revenue per month for the YTD. Admissions also remain lower than expected at around 3-3.5K admissions per month.
The board alongside the management team continues to pursue the goal of building a second screen to diversify the offering and build another meaningful revenue stream. As set out above, the cinema is investigating selling the land at the rear of the property to majority fund that build which should transform the cinema and make it resilient for the future.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document**
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
## **Recruitment and appointment of new trustees**
Each year, one-third of the trustees shall be retired/reappointed at the Annual General Meeting of its Company Members. In line with best practise in governance, no trustee will serve for more than nine years in total.
## **Organisational structure**
The Phoenix is governed by a board that comprises not less than six and no more than twelve members. The board normally meets quarterly and there are two sub-committees that meet quarterly: the Finance Committee, the Education, Community and Fundraising committee.
At year end, the Phoenix had 19 staff members compared to an average of 26 the previous year. Most are employed part-time.
Page 3
Phoenix Cinema Trust Limited
for the Year Ended 31 March 2023
## Report of the Trustees
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Related parties**
The trustees provide their services on a voluntary basis. None of the trustees has any beneficial interest in the company. There are no connected charities. There are no related party transactions, except as disclosed in note 10 in the financial statements.
## **Risk management**
The trustees put in place a risk management policy in 2016 which comprises a risk register that identifies and measures the key risks faced by the cinema in addition to actions to be taken to mitigate the impact. An updated risk register was reviewed and approved by the board in 2019. The cinema has adequate insurance cover in place to mitigate certain of the identified risks.
In prior years, the key risk faced by the cinema was its financial sustainability. This remains a key focus for the board and management team.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number**
01956960 (England and Wales)
**Registered Charity number** 296135
## **Registered office**
52 High Road East Finchley London N2 9PJ
## **Trustees**
P L J Swaffer A J Bull Ms M A Hoare B Ellis Ms V M Kelsall V P Ram A Khan P Rossi Ms M Montague Ms A Gold
## **Company Secretary**
## **Auditors**
Ark Accountancy Chartered Certified Accountant & Statutory Auditor 31 Cheam Road Epsom Surrey KT17 1QX
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The trustees (who are also the directors of Phoenix Cinema Trust Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Page 4
Phoenix Cinema Trust Limited
for the Year Ended 31 March 2023
## Report of the Trustees
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued**
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company's auditors are unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
## **AUDITORS**
The auditors, Ark Accountancy, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Approved by order of the board of trustees on 20 December 2023 and signed on its behalf by:
Ms A Gold - Trustee
Page 5
Report of the Independent Auditors to the Members of Phoenix Cinema Trust Limited
## **Opinion**
We have audited the financial statements of Phoenix Cinema Trust Limited (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Trustees has been prepared in accordance with applicable legal requirements.
Page 6
Report of the Independent Auditors to the Members of Phoenix Cinema Trust Limited
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
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:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Page 7
Report of the Independent Auditors to the Members of Phoenix Cinema Trust Limited
## **Our 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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
In order to identify and assess the risks of material misstatements, including fraud and non-compliance with the Charities SORP and laws and regulations that could be expected to have a material impact on the financial statements, we have considered:
- the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities;
- -• the nature of the company, including its management structure and control systems (including the opportunity for management to override such controls);
- management’s incentives and opportunities for fraudulent manipulation of the financial statements; and
- the industry and environment in which it operates.
We also considered UK tax and pension legislation and laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006.
Based on this understanding we identified the following matters as being of significance to the entity:
- laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Charities SORP, Company Law, tax and pension legislation;
- the timing of the recognition of grant income;
- the controls over cash receipts;
- existence of the tangible fixed assets;
- compliance with legislation relating to GDPR, health and safety; operating licenses, and the Charity Commission; and
- management bias in selecting accounting policies and determining estimates;
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mary E Ryan (Senior Statutory Auditor) for and on behalf of Ark Accountancy Chartered Certified Accountant & Statutory Auditor 31 Cheam Road Epsom Surrey KT17 1QX
20 December 2023
Page 8
Phoenix Cinema Trust Limited
## Statement of Financial Activities for the Year Ended 31 March 2023
|Unrestricted
funds
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
4,435
**Charitable activities**
4
Cinema
437,107
Investment income
3
357
Other income
58,377
**Total**
500,276
**EXPENDITURE ON**
**Charitable activities**
5
Cinema
519,980
**NET INCOME/(EXPENDITURE)**
(19,704)
**RECONCILIATION OF FUNDS**
Total funds brought forward
77,172
**TOTAL FUNDS CARRIED FORWARD**
57,468|Restricted
funds
£
107,230
2,000
-
-
109,230
100,783
8,447
356,027
364,474|31.3.23
Total
funds
£
111,665
439,107
357
58,377
609,506
620,763
(11,257)
433,199
421,942|31.3.22
Total
funds
£
191,303
385,112
2
33,325|
|---|---|---|---|
||||609,742|
||||605,240|
||||4,502
428,697|
||||433,199|
The notes form part of these financial statements
Page 9
Phoenix Cinema Trust Limited
## Balance Sheet
## 31 March 2023
|Unrestricted
funds
Notes
£
**FIXED ASSETS**
Tangible assets
12
-
**CURRENT ASSETS**
Stocks
13
4,994
Debtors
14
10,536
Cash at bank
84,510
100,040
**CREDITORS**
Amounts falling due within one year
15
(42,572)
**NET CURRENT ASSETS**
57,468
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
57,468
**NET ASSETS**
57,468
**FUNDS**
16
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Restricted
funds
£
327,018
-
-
37,456
37,456
-
37,456
364,474
364,474|31.3.23
Total
funds
£
327,018
4,994
10,536
121,966
137,496
(42,572)
94,924
421,942
421,942
57,468
364,474
421,942|31.3.22
Total
funds
£
367,022
3,311
34,112
87,665
125,088
(58,911)
66,177
433,199
433,199
77,172
356,027
433,199|
|---|---|---|---|
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 20 December 2023 and were signed on its behalf by:
A Gold - Trustee
The notes form part of these financial statements
Page 10
Phoenix Cinema Trust Limited
## Cash Flow Statement
## for the Year Ended 31 March 2023
|Notes
**Cash flows from operating activities**
Cash generated from operations
1
Tax paid
Net cash provided by/(used in) operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash used in investing activities
**Cash flows from financing activities**
Loan repayments in year
Net cash provided by/(used in) financing activities
**Change in cash and cash equivalents in**
**the reporting period**
**Cash and cash equivalents at the**
**beginning of the reporting period**
**Cash and cash equivalents at the end of**
**the reporting period**|31.3.23
£
39,479
(116)
39,363
(5,419)
-
357
(5,062)
-
-
34,301
87,665
121,966|31.3.22
£
(48,922)
-
(48,922)
(10,395)
3,349
2
(7,044)
(8,000)
(8,000)
(63,966)
151,631
87,665|
|---|---|---|
The notes form part of these financial statements
Page 11
Phoenix Cinema Trust Limited
Notes to the Cash Flow Statement for the Year Ended 31 March 2023
## **1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**OPERATING ACTIVITIES**|||
|---|---|---|
||31.3.23|31.3.22|
||£|£|
|**Net (expenditure)/income for the reporting period (as per the**|||
|**Statement of Financial Activities)**|(11,257)|4,502|
|**Adjustments for:**|||
|Depreciation charges|45,423|46,018|
|Profit on disposal of fixed assets|-|(1,467)|
|Interest received|(357)|(2)|
|Increase in stocks|(1,683)|(102)|
|Decrease/(increase) in debtors|23,692|(5,521)|
|Decrease in creditors|(16,339)|(92,350)|
|**Net cash provided by/(used in) operations**|39,479|(48,922)|
## **2. ANALYSIS OF CHANGES IN NET FUNDS**
||At 1.4.22|Cash flow|At 31.3.23|
|---|---|---|---|
||£|£|£|
|**Net cash**||||
|Cash at bank|87,665|34,301|121,966|
||87,665|34,301|121,966|
|**Total**|87,665|34,301|121,966|
The notes form part of these financial statements
Page 12
Phoenix Cinema Trust Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - in accordance with the property Café bar - at varying rates on cost Fixtures and fittings - 25% on reducing balance and at varying rates on cost
## **Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
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.
## **Pension costs and other post-retirement benefits**
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
continued...
Page 13
Phoenix Cinema Trust Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2023
|**2.**
**DONATIONS AND LEGACIES**
Donations
Gift aid
Grants
Grants received, included in the above, are as follows:
London Borough of Barnet
British Film Institute
CIL
Film London
**3.**
**INVESTMENT INCOME**
Deposit account interest
**4.**
**INCOME FROM CHARITABLE ACTIVITIES**
Activity
Film Receipts
Cinema
Education Activities
Cinema
Confectionary & café bar &
merchandise
Cinema
Other charitable activities
Cinema
**5.**
**CHARITABLE ACTIVITIES COSTS**
Direct
Costs
£
Cinema
398,017|31.3.23
£
2,407
2,028
107,230
111,665
31.3.23
£
-
92,513
8,270
6,447
107,230
31.3.23
£
357
31.3.23
£
268,031
2,000
72,330
96,746
439,107
Support
costs (see
note 6)
£
222,746|31.3.22
£
40,788
6,551
143,964|
|---|---|---|
|||191,303|
|||31.3.22
£
31,571
112,393
-
-|
|||143,964|
|||31.3.22
£
2
31.3.22
£
246,330
3,863
48,585
86,334|
|||385,112|
|||Totals
£
620,763|
continued...
Page 14
Phoenix Cinema Trust Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2023
## **6. SUPPORT COSTS**
|**SUPPORT COSTS**|||
|---|---|---|
|Management
£
Cinema
205,489
**NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Depreciation - owned assets
Surplus on disposal of fixed assets|Governance
Finance
costs
£
£
4,897
12,360
31.3.23
£
4,500
45,423
-|Totals
£
222,746|
|||31.3.22
£
8,860
46,018
(1,467)|
## **7. NET INCOME/(EXPENDITURE)**
## **8. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.
## **9. STAFF COSTS**
|Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Cinema staff|31.3.23
£
226,972
7,745
4,333
239,050
31.3.23
19|31.3.22
£
258,900
7,701
4,082|
|---|---|---|
|||270,683|
|||31.3.22
26|
No employees received emoluments in excess of £60,000.
Page 15
continued...
Phoenix Cinema Trust Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2023
|**10.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
funds
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
47,339
**Charitable activities**
Cinema
385,112
Investment income
2
Other income
31,858
**Total**
464,311
**EXPENDITURE ON**
**Charitable activities**
Cinema
356,395
**NET INCOME/(EXPENDITURE)**
107,916
**RECONCILIATION OF FUNDS**
Total funds brought forward
(30,744)
**TOTAL FUNDS CARRIED FORWARD**
77,172
**11.**
**INTANGIBLE FIXED ASSETS**
**COST**
At 1 April 2022 and 31 March 2023
**AMORTISATION**
At 1 April 2022 and 31 March 2023
**NET BOOK VALUE**
At 31 March 2023
At 31 March 2022|Restricted
Total
funds
funds
£
£
143,964
191,303
-
385,112
-
2
1,467
33,325
145,431
609,742
248,845
605,240
(103,414)
4,502
459,441
428,697
356,027
433,199
Computer
software
£
5,000
5,000
-
-|Total
funds
£
191,303
385,112
2
33,325|
|---|---|---|
|||609,742|
|||605,240|
|||4,502
428,697|
|||433,199|
Page 16
continued...
Phoenix Cinema Trust Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2023
## **12. TANGIBLE FIXED ASSETS**
|Freehold
property
£
**COST**
At 1 April 2022
581,892
Additions
-
At 31 March 2023
581,892
**DEPRECIATION**
At 1 April 2022
571,905
Charge for year
891
At 31 March 2023
572,796
**NET BOOK VALUE**
At 31 March 2023
9,096
At 31 March 2022
9,987
**13.**
**STOCKS**
Stocks
**14.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade debtors
Other debtors
Tax
Prepayments and accrued income|Café bar
£
791,105
-
791,105
454,884
39,555
494,439
296,666
336,221
|Fixtures
and
fittings
Totals
£
£
114,576
1,487,573
5,419
5,419
119,995
1,492,992
93,762
1,120,551
4,977
45,423
98,739
1,165,974
21,256
327,018
20,814
367,022
31.3.23
31.3.22
£
£
4,994
3,311
31.3.23
31.3.22
£
£
5,943
1,449
3,842
4,510
116
-
635
28,153
10,536
34,112|Fixtures
and
fittings
Totals
£
£
114,576
1,487,573
5,419
5,419
119,995
1,492,992
93,762
1,120,551
4,977
45,423
98,739
1,165,974
21,256
327,018
20,814
367,022
31.3.23
31.3.22
£
£
4,994
3,311
31.3.23
31.3.22
£
£
5,943
1,449
3,842
4,510
116
-
635
28,153
10,536
34,112|Fixtures
and
fittings
Totals
£
£
114,576
1,487,573
5,419
5,419
119,995
1,492,992
93,762
1,120,551
4,977
45,423
98,739
1,165,974
21,256
327,018
20,814
367,022
31.3.23
31.3.22
£
£
4,994
3,311
31.3.23
31.3.22
£
£
5,943
1,449
3,842
4,510
116
-
635
28,153
10,536
34,112|
|---|---|---|---|---|
||||327,018||
||||367,022||
||||31.3.22
£
3,311
31.3.22
£
1,449
4,510
-
28,153
34,112||
|||||34,112|
continued...
Page 17
Phoenix Cinema Trust Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2023
## **15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
||31.3.23|31.3.22|
|---|---|---|
||£|£|
|Trade creditors|27,363|25,451|
|Social security and other taxes|4,066|3,217|
|VAT|5,154|9,692|
|Other creditors|1,489|1,259|
|Accruals and deferred income|-|19,292|
|Accrued expenses|4,500|-|
||42,572|58,911|
**16. MOVEMENT IN FUNDS**
|**Unrestricted funds**
General fund
Designated fund
**Restricted funds**
Capital fund
Education fund
Film London
**TOTAL FUNDS**
Net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
**Restricted funds**
British Film Institute non-capital
expenditure
Education fund
CIL
Film London
**TOTAL FUNDS**|At 1.4.22
£
58,872
18,300
77,172
348,722
7,305
-
356,027
433,199
Incoming
resources
£
500,276
92,513
2,000
8,270
6,447
109,230
609,506|Net
movement
At
in funds
31.3.23
£
£
(19,704)
39,168
-
18,300
(19,704)
57,468
-
348,722
2,000
9,305
6,447
6,447
8,447
364,474
(11,257)
421,942
Resources
Movement
expended
in funds
£
£
(519,980)
(19,704)
(92,513)
-
-
2,000
(8,270)
-
-
6,447
(100,783)
8,447
(620,763)
(11,257)|At
31.3.23
£
39,168
18,300|
|---|---|---|---|
||||57,468
348,722
9,305
6,447|
||||364,474|
||||421,942|
||||8,447|
||||(11,257)|
continued...
Page 18
Phoenix Cinema Trust Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2023
## **16. MOVEMENT IN FUNDS - continued**
**Comparatives for movement in funds**
|**Unrestricted funds**
General fund
Designated fund
**Restricted funds**
British Film Institute non-capital
expenditure
Capital fund
Education fund
BFI capital expenditure
**TOTAL FUNDS**|At 1.4.21
£
(58,545)
27,801
(30,744)
60,553
385,281
7,305
6,302
459,441
428,697|Net
movement
in funds
£
112,802
(4,886)
107,916
(60,553)
(44,328)
-
1,467
(103,414)
4,502|Transfers
between
funds
£
4,615
(4,615)
-
-
7,769
-
(7,769)
-
-|At
31.3.22
£
58,872
18,300|
|---|---|---|---|---|
|||||77,172
-
348,722
7,305
-|
|||||356,027|
|||||433,199|
Comparative net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Designated fund
**Restricted funds**
British Film Institute non-capital
expenditure
Capital fund
BFI capital expenditure
**TOTAL FUNDS**|Incoming
resources
£
464,311
-
464,311
143,964
-
1,467
145,431
609,742|Resources
Movement
expended
in funds
£
£
(351,509)
112,802
(4,886)
(4,886)
(356,395)
107,916
(204,517)
(60,553)
(44,328)
(44,328)
-
1,467
(248,845)
(103,414)
(605,240)
4,502|Resources
Movement
expended
in funds
£
£
(351,509)
112,802
(4,886)
(4,886)
(356,395)
107,916
(204,517)
(60,553)
(44,328)
(44,328)
-
1,467
(248,845)
(103,414)
(605,240)
4,502|
|---|---|---|---|
||||107,916
(60,553)
(44,328)
1,467|
||||(103,414)|
||||4,502|
continued...
Page 19
Phoenix Cinema Trust Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2023
## **17. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 March 2023.
Page 20
Phoenix Cinema Trust Limited
## Detailed Statement of Financial Activities for the Year Ended 31 March 2023
|Detailed Statement of Financial Activities
for the Year Ended 31 March 2023|||
|---|---|---|
||31.3.23|31.3.22|
||£|£|
|**INCOME AND ENDOWMENTS**|||
|**Donations and legacies**|||
|Donations|2,407|40,788|
|Gift aid|2,028|6,551|
|Grants|107,230|143,964|
||111,665|191,303|
|**Investment income**|||
|Deposit account interest|357|2|
|**Charitable activities**|||
|Film Receipts|268,031|246,330|
|Education Activities|2,000|3,863|
|Confectionary & café bar & merchandise|72,330|48,585|
|Other charitable activities|96,746|86,334|
||439,107|385,112|
|**Other income**|||
|Gain on sale of tangible fixed assets|-|1,467|
|Furlough grant|-|31,858|
|Insurance payout|58,377|-|
||58,377|33,325|
|**Total incoming resources**|609,506|609,742|
|**EXPENDITURE**|||
|**Charitable activities**|||
|Wages|226,972|258,900|
|Social security|7,745|7,701|
|Pensions|4,333|4,082|
|Film hire|104,801|90,677|
|Cinema hire, education & workshops|-|21|
|Merchandise purchases|32,020|23,973|
|Confectionary & café bar purchases|6,761|6,933|
|Fees & other staff costs|2,821|2,799|
|Publicity & marketing|4,584|515|
|Fundraising costs|1,680|216|
|Programming charge|6,300|7,397|
||398,017|403,214|
|**Support costs**|||
|**Management**|||
|Rates and water|3,208|1,162|
|Carried forward|3,208|1,162|
This page does not form part of the statutory financial statements
Page 21
Phoenix Cinema Trust Limited
Detailed Statement of Financial Activities for the Year Ended 31 March 2023
|Detailed Statement of Financial Activities
for the Year Ended 31 March 2023|||
|---|---|---|
||31.3.23|31.3.22|
||£|£|
|**Management**|||
|Brought forward|3,208|1,162|
|Insurance|6,617|8,324|
|Light and heat|18,638|10,561|
|Telephone|3,284|3,826|
|Postage and stationery|2,860|608|
|Sundries|4,207|3,043|
|Equipment maintenance & cleaning|35,867|31,741|
|Building repairs & maintenance|31,441|29,319|
|Subscriptions & licences|6,787|5,578|
|Consultancy|47,157|35,274|
|amortisation of freehold property|890|891|
|Depn of café bar|39,555|41,742|
|Dep'n of fixture & fittings|4,978|5,267|
||205,489|177,336|
|**Finance**|||
|Bank charges|4,897|8,050|
|**Governance costs**|||
|Auditors' remuneration|4,500|8,860|
|Accountancy and legal fees|7,860|7,780|
||12,360|16,640|
|Total resources expended|620,763|605,240|
|**Net (expenditure)/income**|(11,257)|4,502|
This page does not form part of the statutory financial statements
Page 22