2025-03-31-accounts - Leeds Heritage Theatres

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Leeds Heritage Theatres (formerly Leeds Grand Theatre & Opera House Limited)

Financial Statements and Annual Report 2024/25

Company Registration Number – 00978161 Charity Registration Number – 500408

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Leeds Heritage Theatres Financial statements and Annual report for the year ended 31 March 2025

Leeds Heritage Theatres

Trustees’ Annual Report and Financial Statements for the year ended 31 March 2025

Contents
	Page
Reference and Administrative Information	1
Trustees’ Report	2
Strategic Report	9
Independent Auditor’s Report to The Members of Leeds Heritage Theatres	17
Statement of Financial Activities for the Year ended 31 March 2025	21
Balance Sheet as at 31 March 2025	22
Statement of Cashflows for the Year ended 31 March 2025	23
Notes to the Financial Statements	24

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Leeds Heritage Theatres Financial statements and Annual report for the year ended 31 March 2025

Reference and Administrative Information

Company Name Leeds Heritage Theatres (with effect from 8 July 2024 formerly Leeds Grand Theatre & Opera House Limited)

Company Registration Number 00978161

Charity Registration Number 500408 VAT Number 333 4718 09

Registered Office Leeds Heritage Theatres, 46 New Briggate, Leeds LS1 6NU

Trustees

Mr. Alan Gay O.B.E.

Mr. Robert Gettings M.B.E. Resigned 25 April 2025 Mr. Peter Wilkinson Resigned 31 August 2024

Mr. Neil Clephan Mr. Kris Brewster Councillor Ryan Stephenson Councillor Jane Dowson Ms. Anna Franks

Ms. Rebecca Morgan
Ms. Madeleine Robinson
Mr. Martin Farrington Appointed 6 November 2024 Ms. Tania Harrison Appointed 11 February 2025 Ms. Annabel Tonge Appointed 11 February 2025 Mr. Hamish Anderson Appointed 3 May 2025

Senior Management Team

Vicky Cheetham Chief Executive Appointed 3 June 2024 Anne Harrison Head of Support Services Ian Sime Grand Theatre and City Varieties Music Hall General Manager Anne Shaw Head of House Management Wendy Cook Head of Cinema Julie Wainwright Head of Finance Amy Sanderson Head of Communications Alan Dawson Head of Property & Technical Rachel Lythe Head of Learning Treasurer Kris Brewster, c/o Leeds Heritage Theatres, 46 New Briggate, Leeds LS1 6NU Auditors Azets Audit Services Ltd, 12 King Street, Leeds, LS1 2HL Bankers NatWest Bank, 8 Park Row, Leeds, LS1 6QB Solicitors Wrigleys Solicitors, 3 Wellington Place, Leeds, LS1 4AP Lupton Fawcett Solicitors, 2 The Embankment, Sovereign Street, Leeds, LS1 4BA

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

Trustees’ Report for the year ended 31 March 2025

The Trustees are pleased to present their annual report together with the financial statements of the Leeds Heritage Theatres (the Company) for the year ending 31 March 2025, which 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, effective 1 January 2019).

1.0 Reference and Administrative Details

The Reference and Administration Information page forms part of this report.

2.0 Our Objectives and Activities

Our purpose as set out in the Company’s Memorandum of Association is to promote knowledge, education and appreciation of the arts. We achieve our charitable aims by providing a theatre, a music hall and a picture house to stage productions and host film screenings and provide educational programmes and heritage activity to encourage participation in the arts by the general public.

Leeds Grand Theatre (LGT) is a Grade II listed Victorian theatre (1878), City Varieties Music Hall (CVMH) is one of the few surviving Victorian music halls (1865), also with a Grade II listed status, and Hyde Park Picture House (HPPH), a shining example of early cinema architecture (1914) with a Grade II listing. Our venues are recognised nationally as significant heritage venues and are a renowned part of the cultural infrastructure of the city of Leeds.

The Learning Programme engages participants with activities across our three venues, working with both young people and communities in the city and region. Inclusive skillsbased training, workshops and educational tours are delivered, alongside introductory activities to connect people who may not ordinarily engage with the arts, with our live performances and films. This helps to make our programme and theatre buildings more accessible to wider audiences.

The over-arching aims of the Company are:

Feeling Proud to Belong

Everyone feels they matter and are inspired to reach their potential through a fantastic experience with Leeds Heritage Theatres which makes them want to keep engaging with us.

Telling Extraordinary Stories

Leeds Heritage Theatres tells relevant and meaningful stories that are enjoyed by audiences, inspire participants and are admired by the industry.

To Be Rooted in Leeds

Staff, artists, audiences, participants and visitors are representative of Leeds. All of Leeds knows about us and most of them have engaged with us.

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

To Have a Thriving Future Leeds Heritage Theatres has a financially sustainable future with growth in sales and income, having a positive economic and skills impact on Leeds and the cultural sector.
To Deliver Responsible Growth

Leeds Heritage Theatres engages with the climate emergency and makes changes to ensure a sustainable future, internally and externally.

In order to achieve these aims, the Company has the following objectives:

Maximise attendances at our theatre productions and cinema screenings, and to encourage community involvement in our Learning Programme by promoting awareness and improving accessibility,
Offer variety by providing a broad range of cultural experiences to be enjoyed by all tastes, ages and backgrounds,
Offer a Learning programme,
To be financially efficient and business-like in our activities,
Maintain and where possible improve the condition of our buildings and infrastructure.

The strategies employed to achieve the Company’s aims and objectives are:

To ensure broad audience appeal by offering a diverse programme of theatre productions and cinema screenings - including activities and screenings for young children, family shows such as pantomimes, performances for older audiences, opera and ballet, as well as drama, musicals, and comedy with wide-ranging appeal,
To offer inclusivity by hosting accessible performances and screenings for people who are visually or hearing impaired, or otherwise vulnerable,
To offer opportunities for young people to get involved in arts activities exploring their own creative powers through workshops, training, a Youth Theatre, summer school and feeding into planning and decision making,
To celebrate the heritage element of our historic buildings through tours and open days,
To be financially successful by maximising income and controlling expenditure in order to be an efficient and effective organisation which achieves good value for money and obtains maximum value from its assets,
To continue strengthening our reputation and nurturing relationships with visiting companies; this will ensure the organisation remains an attractive venue for a wide range of productions and can secure engaging, artistically ambitious, and critically acclaimed shows for the medium term,
To continue the planned approach to identifying and scheduling works to our venues.

3.0 Delivering Public Benefit

In shaping our objectives for the year and planning our activities, the Trustees have considered the Charity Commission’s guidance on public benefit. Our principal activities for the public benefit are providing access to a diverse programme of live theatre, film screenings and educational activities, including skills training, delivered by our in-house Learning & Engagement Team and a range of specialist freelance artists. Our vision is to

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

bring people together, create the extraordinary and provide a positive environment in which to entertain and educate. We provide spaces and experiences for 390,000 people a year to connect, work, learn, play and enjoy together, forming lasting connections and partnerships across the region. Activities improve well-being, confidence, resilience and develop new skills and a range of bursary schemes are in place to widen access across our education programme. In 2023 we launched our ‘Secret Seats’, which enables members of the public to access theatre tickets at a subsidised rate and with the purchase of new access equipment, interpreted performances are provided across our venues enabling more people to access the arts.

3.1 Advancing the Arts

The programme at our venues remains a core part of Leeds’ cultural offer, providing a wide range of programme for audiences across the city. During the year ending March 2025, we delivered a breadth of genres including film screenings, drama, music, ballet, opera, comedy, musical theatre, and variety.

Of our 390,000 patrons, 42% were booked by people new to us, demonstrating the ongoing magnitude of our reach and the huge scale of people with whom we have engaged over the years.

For young people, over 38,720 patrons attended family productions aimed at youngsters aged 4 to 14 and there were nine (2024: four) school performances attended by 931 (2004: 210) school age children. Around 4,500 children attended twelve school performances of our pantomime as part of school groups.

The economic downturn has made affordability a growing barrier for many. In response, we introduced our Secret Seats initiative in February 2023 to expand the availability of lowercost tickets, helping to broaden our reach and improve accessibility. Since its launch, nearly 10,000 patrons have made use of the scheme (2024: 4,800).

Our Access Membership Scheme supports people with disabilities to enjoy live performance at our theatres, not only through discounted tickets but also through ensuring that their visit is safe and comfortable. We provide captioned, BSL and audio-described performances for every week-long production at LGT and for our annual pantomime at CVMH. At HPPH we also had 273 screenings with captions for deaf and hard of hearing audiences and 91 titles had audio description available for audiences. We also host weekly Autism Friendly performances for families and monthly Dementia friendly performances.

Jack & the Beanstalk Rock n’ Roll Pantomime 2024/25 Credit: Ant Robling Photography

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

At HPPH we collaborated with a range of both local and national cultural organisations (including Leeds Queer Film Festival, Leeds Film, the Henry Moore Institute, Leeds International African Arts Festival, Queer East, Pyramid of Arts), community groups (including the Senegalese Community Leeds, Heart, Leeds Film Network, Scalarama Leeds) and Educational (including Swarthmore, University of Leeds, Leeds Beckett University, Leeds Arts University, Brudenell Primary, Into Film). These wide-ranging connections helped us to broaden the range of people engaged in the development of our programme to create a stronger and more varied artistic offer. These relationships also helped us to reach a wider range of audiences who engaged both with specific strands of our programme, as well as with the venue as a whole.

Following the launch of our Under 30s membership scheme (across LGT and CVMH) and the continuation of our 15-25 membership scheme (at HPPH), 24/25 saw an increase in the number of younger audiences engaging with our programme across the board. We hosted the first Under 30s membership event at Leeds Grand Theatre which was well attended and continue to host events as well as now having an U30s facebook group where members can talk about the things they have seen and make more connections. Over 8,000 people have taken up offers aimed specifically at those who hold 15-25 or U30s memberships.

3.2 Advancing Education

In 2024/25, we delivered a rich and varied programme of creative skills development, industry insight, and networking opportunities focused on the cultural sector, alongside opportunities to explore the heritage of performance and film at our venues.

Our Learning & Engagement Programme continued to grow, underpinned by strong partnerships with schools, colleges, universities, community groups, and creative organisations. Through this work, we’ve supported improved skills, confidence, wellbeing, and enjoyment across a broad range of participants.

Highlights include:

Year-round performance training through Leeds Grand Youth Theatre (ages 8-17) and Leeds Actors in Training (ages 18-25). The year culminated in a production of ‘Little Shop of Horrors’, offering hands-on experience both on and off stage. Outcomes from this advanced training include:
3 members accepted into the National Youth Theatre (one on a scholarship)
1 member completing their first year at Rose Bruford College
3 members employed by LHT to deliver a theatre-in-education tour to Leeds primary schools
Curriculum-linked engagement through a wide range of school, college and university workshops, talks, and venue tours supporting accredited learning.
Leadership of the Grand Futures Leeds Arts Network - a coalition of arts, cultural, heritage and educational organisations. This has led to:
Successful lobbying for new training course funding in Technical Theatre
Collaborative work experience delivery across partners

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

LHT leading the delivery of key city events, including the Leeds Creative Skills Festival, which welcomed 5,000 young people
After School Drama Clubs continued in schools across areas of high deprivation, helping young people build confidence, learn teamwork, and discover the world of theatre through fun and creative activities.
‘LHT Unwrapped’ holiday provision offered a broad mix of creative taster sessions for children and young people aged 6–16.
Recognition and innovation in inclusivity:
Following our Scope Inclusivity Award for our youth theatre provision, we have continued to pilot new accessible initiatives, including the Cultural Exchange programme for pupils with Special Educational Needs and Disabilities (SEND).
The launch of Hyde Park Film School has expanded our informal learning offer at Hyde Park Picture House, providing deeper exploration into specialist film subjects and techniques.

3.3 Preservation and Enhancement of our Venues and Infrastructure

Delivery of our ten-year planned programme of capital works at Leeds Grand Theatre (LGT) remains ongoing. The most urgent priorities are identified and reviewed regularly to ensure timely progress. In 2024/25, works totalling £2.8 million were completed across the LGT estate. These were funded through a combination of in-year budget allocations, capitalisation, and a dedicated Fund supported by a levy on ticket sales.

Key works completed at LGT include:

Full refurbishment of all boxes in the Dress Circle
Ongoing restoration of the Grade II* listed ornate plasterwork in the auditorium
Structural strengthening of back-of-house loading areas and auditorium rigging points
Continued major upgrade of the building’s cabling infrastructure to support LED lighting, alongside the phased replacement of existing lighting and dimmers with energy-efficient LED systems
Replacement of several plant items, including CCTV systems, air curtains at the main entrance, and motors for rigging equipment
Continued fire safety improvements through upgraded fire doors and enhanced firestopping measures

Due to the nature of some of these works, a planned extended maintenance period was scheduled from late June to early September, during which the venue remained dark.

At City Varieties Music Hall (CVMH), works were similarly funded through capitalisation and the dedicated Fund derived from the ticket sales levy. Recent improvements include:

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

Procurement of a contractor to carry out refurbishment of external brickwork and render, and the replacement of the main roof
Installation of a new CCTV system

At Hyde Park Picture House (HPPH), the venue successfully reopened in June 2023 following a major programme of preservation and redevelopment. This included extensive repair to the building’s historic fabric and comprehensive renewal of all building services (electrical and plumbing). While no further major works are currently required, we continue to invest in projection equipment and proactive year-round maintenance to uphold the building's condition and long-term sustainability.

Further significant planned works for 2025/26 and beyond are detailed in Section 3 of the Strategic Report.

4.0 Achievements and Performance

4.1 Performance Information

During the year 2024/25 the Company achieved the following:

LGT: 219 performances with attendance levels of 213,400 over a shortened performance period of nine months to allow for the extended maintenance period (298 performances with attendance levels of 247,000 during 2023/24).
CVMH: 256 performances and 8 screenings with attendance levels of 93,400 (216 performances and 10 screenings with 83,500 attendances in 2023/24).
Learning and Engagement Programme across our three venues: 346 sessions and 4,610 attendances – virtual and in person (331 sessions and 5,482 people in 2023/24).
HPPH: 2,342 ticketed screenings and events, with attendance levels of 78,600 (1,756 screenings and 77,736 attendances in 2023/24).
A total of 3,163 screenings, sessions and events have been staged and hosted during the year, with attendances of 390,000 (virtual and in person).

4.2 Employees

Our Company is a major provider of employment within the arts, entertainment and cultural sectors in Leeds. In 2024/25, the Company employed 121 permanent staff and an average of 80 non-permanent staff (casual staff) across our three venues, a total of 201 individuals.

4.3 Contribution Made by the Company’s Volunteers

Volunteers are an integral element of the Front of House function at our venues, and this has been a long running and successful arrangement for the Company. We remain very grateful for the commitment and expertise of our 83 regular volunteers who contributed an estimated 8,200 hours (this is not recognised in the Statement of Financial Activities).

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

4.4 Contribution Made by the Company’s Friends

The Friends of The City Varieties is a registered charity (no. 1038435) and long-standing fundraising body. Its charitable purpose is:

To promote the public appreciation and understanding of the arts by supporting, maintaining, and advancing the charitable work of the music hall.

The Friends of Hyde Park Picture House is an independent registered charity (no. 1168835). Prior to the venue’s closure for redevelopment, they had over 800 members. During the closure period, we collaborated with the Friends to reframe their role and adapt the membership structure, enabling HPPH to introduce its own scheme with a greater focus on driving income and attendance. The new membership model launched in January 2023, and the Friends currently have between 50-100 members, with work ongoing to reestablish their activities post-renovation.

The role of the Friends is primarily ambassadorial - acting as advocates for HPPH and as a valued ‘critical friend,’ reflecting the voice of our loyal, long-term audience. Their charitable objectives are:

To promote, support, and participate in the cultural life of Hyde Park, Leeds, and Yorkshire, with a focus on deepening appreciation and understanding of cinema as an art form
To celebrate the heritage of the Hyde Park Picture House and support its preservation and continued use for cinema and related arts, accessible to all sections of the community

Since reopening, the Friends of HPPH have been particularly supportive of our volunteer initiatives, especially those involving refugees and asylum seekers in Leeds. Their efforts have helped facilitate skills development and foster community connections. They have also launched regular monthly film meet-ups for members, hosted in the HPPH café, strengthening engagement with the venue’s audience base.

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

Strategic Report

1.0 Financial Summary

1.1 Position as at 31 March 2025

For the year ended 31 March 2025 the Company registered a surplus of £81k compared to last year’s surplus of £381k. This result reflects a challenging year in which inflation was high e.g. the increase to the National Minimum Wage and demand for tickets was less than anticipated for some performances, largely we think, due to the wider economic environment. In addition, the Leeds Grand Theatre had an extended planned closure period of around three months to undertake works inside the auditorium.

The Company’s overall pension reserve has increased by £2m and is now an asset of £3,167k compared to the asset of £1,007k in 2023/24. The asset is based on actuarial valuations and represents the difference between the value of the Company’s pension fund assets at 31 March 2025 and the estimated present value of the future pension payments to which the Company was committed at that date.

During 2024/25, the fair value of assets has increased by £762k: investments in the property and equity markets were reliable and returns were reasonable. The present value of the future obligation has decreased by £1,398k, mainly due to changes in actuarial assumptions.

Financial Reporting Standard 102 ‘Pension Obligations’ (FRS102) states that whilst liabilities must be recognised in the balance sheet, assets may only be recognised where certain criteria are met with regards to realisability. The asset is not realisable and therefore it has not been recognised in the Accounts.

1.2 Funds Position

The Company has overall Unrestricted Funds of £-4,425k. This includes the net transfer to Restricted Funds to support capital expenditure. Within this, free reserves (unrestricted funds which are not committed elsewhere and not invested in tangible fixed assets) are £-5,244k (2024: £-2,753k). This negative position is a result of the high level of deferred income we carry arising from advance ticket sales.

The Company has overall Restricted Funds of £9,453k. Restricted Funds comprise investments in fixed assets, grants and contributions, and levy income.

Unrestricted Funds of £-4,425k (2024: £-2,296k) together with Restricted Funds of £9,453k (2024: £7,244k) gives a net total of £5,029k (2024: £4,948k), as at 31 March 2025, as shown in the Statement of Financial Activities and the Balance Sheet.

1.3 Principal Funding Sources and Expenditure

The Company generated £13.6m of income from ticket and ancillary sales. Other operating income of £1.3m was received for work done, reimbursements, and miscellaneous recoveries. Grants of £0.5m were received, of this £0.3m related to the development works at HPPH, £0.1m was from the Keith Howard Foundation, to help fund the activities of our Learning Programme, and we also received grant from Leeds City Council to help fund the provision of the artistic programme at our three venues, and delivery of the Learning Programme.

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

Donations of £331k were received from patrons and supporters and Trustees would like to express their thanks to everyone who gave so generously, in particular the Ken Dodd Foundation and Lady Anne Dodd who contributed substantially towards the roof replacement and wall repair scheme at CVMH.

Our total operating expenditure for the year was £14.8m, of which £4.2m was employeerelated costs, £6.8m was paid to our visiting companies and film distributors for our performances and screenings. General operating costs were £3.8m, this comprises premises costs including repairs, energy and insurance, overheads such as IT/software, licences, marketing, stock and the cost of staging our in-house annual pantomime.

1.4 Reserves Policy

The Company’s Policy is to have the minimum level of Unrestricted Funds which will mitigate against the realisation of certain major risks summarised below:

Emergency or planned closure for an extended period of LGT;
Withdrawal of significant grant funding,
Significant and sustained under-performance on major income-generating shows creating an in-year deficit,
Pensions Liability (see below),
Unidentified major repairs.

The Trustees have assessed the probability and financial impact of the above risks and determined a target level of Unrestricted Funds to cover such operational eventualities. The target is currently met.

There is no target for Free Reserves which is defined as Unrestricted Funds less commitments and investments in Fixed Assets. Free Reserves are currently negative due to investing in Fixed Assets, in particular those assets categorised as Restricted Fixed Assets. In the Statement of Financial Activities, the value of this is shown as a transfer of funds from Unrestricted to Restricted.

Restricted Funds are held for specific purposes as defined by Trustees. Levy income on theatre tickets at LGT and CVMH is used to fund maintenance, enhancements and restoration works to those venues. Further plans to utilise some of these funds are set out in section 3.1 below. The HPPH Fund is being used to help fund the capital project.

1.5 Pension Payments

The accounting liability is covered in section 1.1 above. In cash terms, pensions are paid out by the Pension Fund over a period of many years during which time the assets will continue to generate returns towards funding them, and the Company will continue to make employer contributions. The last actuarial review was as at 31 March 2025, the report is awaited. The prior report of 31 March 2022 indicated that the fund was 106% funded and therefore a reducing employer contribution rate was proposed for three years of 15.7% dropping to 15.3%. The methodology for determining this includes the value of current assets and the value of known liabilities (based on actual member demographics). The liability includes a prediction of for example, future RPI rates, CPI rates, salary increases, demographics etc. and is discounted back to present day. Given the impact of the pandemic, it is anticipated this position will worsen after the next review.

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

Leeds City Council acts as a guarantor for the Company under the West Yorkshire Pension Fund admission agreement and has agreed to indemnify the administrating authority of the fund from and against all losses and payments that may be incurred by the authority by reason of any default by the Company.

1.6 Investment Powers and Policy

The policy of the Company is to ensure that all investment and borrowing activity is valid, accurate, efficient, properly accounted for and in accordance with statutory and corporate requirements. Trustees have sole responsibility for this type of activity. There was no borrowing undertaken during 2024/25. Interest was earned on balances comprising fixed term deposits and current accounts.

2.0 Principal Risks and Uncertainties Facing the Business

2.1 Governance Arrangements

Governance arrangements are overseen by Trustees at regular Board and Sub-committee meetings. Any risks, weaknesses or issues of compliance are addressed in a timely manner by senior officers with the oversight of Trustees. No major weaknesses or policy breaches were identified in the year ending March 2025.

2.2 Risk Management

The Risk Management Policy was refreshed on 3 June. The Policy sets out our approach to risk management, which is to anticipate and where possible, appropriately and proportionately manage risks. The responsibilities of trustees and key roles has been articulated; arrangements for monitoring, reporting, and reviewing the framework have also been stated. Risk management will form part of our strategic and business planning.

All major risks are identified and monitored via the Company’s risk register. The key risk categories are:

Financial Sustainability
Failures in Governance Arrangements
Failure of Infrastructure
External factors

Each category of risk within the Register is supported by detailed information on specific risk areas, their internal and external causes, and the strategies in place to manage them. A range of internal systems have been implemented to mitigate these risks as far as reasonably practicable. These include the development of Major Incident Plans, a robust framework of financial controls and reporting, and established procedures covering Health & Safety, Safeguarding, and other key operational areas.

3.0 Plans for the Future

We have ambitious plans for Leeds Heritage Theatres as articulated in our Business Plan 2024-2027. The first year of the Plan is complete and the majority of KPI targets were met or bettered. The Plan has been refreshed for the period 2025-2028 and is now known as our Strategic Plan. The Plan includes an update on our purpose, mission, vision and values.

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

3.1 Strategic Planning

The Company’s strategic aims (outlined on pages 2–3) are underpinned by ten specific actions, each assigned a clear timeline and responsible lead. Progress against these actions will be regularly reported to the Board of Trustees. Their successful delivery will support our ambition to be sustainable, collaborative, enterprising, and creative, while strengthening our relationships with participants, audiences, partners, and industry peers.

3.2 Our Venues

The Company continues to implement a rolling programme of restoration and improvement works across the Leeds Grand Theatre (LGT) estate to support the long-term sustainability of the building and its facilities.

At LGT, substantial external works are planned at Upper Balcony level, including repairs to the roof, brickwork, gutters, downpipes, and windows. Internally, refurbishment of the gents’ toilets and the ladies’ toilets at Balcony level will be undertaken. In addition, a currently disused office area on the sixth floor will be redeveloped to create new meeting spaces, alongside investment in income-generating areas within the building.

In terms of building systems, the fire alarm will undergo a full upgrade to comply with more stringent regulatory requirements. The lorry lift will continue to be maintained in preparation for a planned refurbishment in summer 2026.

Routine maintenance and repair work will also continue, including fire safety enhancements, annual inspections and repairs to the ornate plasterwork, and the final phase of LED lighting upgrades to front-of-house areas - ensuring all public-facing areas are now LED lit.

At City Varieties Music Hall (CVMH), a similar approach is being taken. Although the venue benefited from a major internal refurbishment in 2010–2011, we continue to conduct regular inspections of roofs, structural elements, and load-bearing capacities. In March 2026 (rescheduled from Autumn 2024), we will begin work to replace the main roof and carry out external wall improvements. Internally, we will also complete the transition to LED lighting in front-of-house spaces.

Hyde Park Picture House (HPPH) underwent a comprehensive redevelopment, completed in June 2023, which included major sustainability improvements. As such, no major works are anticipated in the short to medium term. A detailed management and maintenance plan is in place to ensure the building continues to be cared for to the highest standard.

The cost of these works will be met through a combination of Designated and Restricted Funds, capitalisation, and Unrestricted Funds.

3.3 Fundraising

The Charity follows the Charity Commission’s guidance on fundraising, which outlines the legal responsibilities and best practice principles trustees must uphold. As part of our commitment to these standards, the Company is registered with the Fundraising Regulator and adheres to its Code of Fundraising Practice.

In 2024/25, we submitted funding bids to a range of trusts and foundations, primarily in support of our Learning & Engagement programmes, as well as urgent capital works

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

required at City Varieties Music Hall (CVMH). We are extremely grateful for the generous support received, and Trustees extend their sincere thanks to the following funders:

£250,000 from The Ken Dodd Foundation and Lady Anne Dodd towards the roof and external works at CVMH
£85,000 from The Keith Howard Foundation and £20,000 from The Garfield Weston Foundation in support of our Learning & Engagement activity
£12,000 from Film Hub North in support of work at Hyde Park Picture House (HPPH)

We also continue to grow our Individual Giving schemes, which raised £60,000 in 2024/25 to support our venues, and our ongoing Theatre for All campaign, which helps increase the number of interpreted and accessible performances.

In February 2025, we appointed our first permanent Head of Development - marking a significant milestone in the Charity’s commitment to growing its fundraising and development capacity. Since joining, the postholder has focused on consolidating existing relationships and opportunities, including stewardship of key funders such as The Keith Howard Foundation, Theatres Trust, Garfield Weston Foundation, and Leeds City Council.

LHT’s Development function will play a crucial role in supporting the organisation’s overarching vision by contributing to a stable financial foundation for future growth. A new Fundraising and Development Strategy will be launched in Autumn 2025, built around five core pillars:

Mission clarity
Advocacy and audience development
Financial sustainability
Cultivation, stewardship, and delivery
Process and evaluation

This strategy will guide the Charity in identifying and developing fundable opportunities, helping move towards a more proactive and strategic approach to fundraising and relationship cultivation over the long term.

4.0 Structure, Governance and Management

4.1 Structure

Leeds Heritage Theatres is a Company with no subsidiaries.

4.2 Governing Document

Leeds Heritage Theatres is a company limited by guarantee governed by its Memorandum and Articles of Association, dated 26 June 2024 (superseding those of 27 April 1970), and incorporated in the United Kingdom. There is no share capital but each member of the company undertakes to guarantee £1 in the event of the winding up of the company.

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

4.3 Recruitment and Appointment of Trustees

The Company has a maximum of twelve people on its Board of Trustees, two of whom are nominated by Leeds City Council with the remaining ten being independent. The trustees make up the Board of Management. They are directors of the Company for the purposes of company law and are also charity trustees for the purposes of charity law. All trustees give their time voluntarily and received no benefit from the Company. Any expenses claimed are set out in Note 8 to the accounts.

Council trustees are appointed through the Member Management Committee of Leeds City Council. Independent trustees are appointed through an interview process following advertising on the Company’s website. All trustees undertake an induction process led by the Company’s Chief Executive; all council trustees receive appropriate training as part of their responsibilities and all independent trustees were selected based on their relevant experience and training.

4.4 Organisation

The Board of Trustees manages the Company. The Board normally meets quarterly and there are three sub-committees: Finance, Governance & Resources, Artistic, and Property. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by Trustees, for operational matters.

4.5 Related Parties

Leeds City Council provides funding in support of the artistic and educational programme. In addition, the City Council owns the LGT estate, which it leases to the Company with a full repairing obligation for a peppercorn rent.

We are grateful to Mr. Robert Gettings for his allocation of £100 from LCC’s Members’ Improvements in the Community and the Environment Scheme, towards our Youth Theatre.

We are extremely grateful to the Keith Howard Foundation for continuing their grant funding to support the work of the Learning & Heritage Team; during the year 2024/25 grant was received of £85,000.

4.6 Pay Policy for Senior Staff

The Directors agree that the key management personnel of the Company comprise themselves and the Senior Leadership Team.

Annual salary increases for all staff are paid with reference to BECTU guidelines and statutory rates of pay, other than for the Company’s Chief Executive post, which is determined by the Board of Trustees.

4.7 Risk Management

The Trustees have a governance framework as per section 2.1 which assesses key internal controls. The framework includes key internal controls to manage risk including:

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

A system of authority and delegation for key decisions,
Robust financial controls and financial planning,
Annual high quality independent audit assessment of internal controls and processes,
The setting of and monitoring of compliance with a comprehensive suite of policies and procedures covering risk areas,
All major risks are identified and monitored via the Company’s Risk Register. These include
Financial sustainability
Failure of governance arrangements
Failure of infrastructure
External factors

5.0 Preparation of the Financial Statements

5.1 Trustees’ Responsibilities

In relation to the Financial Statements the Trustees are responsible for maintaining proper accounting records which 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. The Trustees 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.

Company and charity law requires directors to prepare financial accounts that give a true and fair view of the state of affairs of the company at the end of the financial year and of its surplus or deficit for the financial year. In doing so the Directors have:

Selected suitable accounting policies and then applied them consistently,
Observed the methods and principles in the Charities SORP,
Made judgements and estimates that were reasonable and prudent,
Stated whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements,
Prepared the financial accounts on a Going Concern basis.

5.2 Statement as to Disclosure to our Auditors

In so far as the Trustees are aware:

There is no relevant audit information of which the Company’s auditor is 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 Company’s auditor is aware of that information.

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

5.3 Auditors

Azets Audit Services Limited are auditors for the Company and in accordance with Section 485 of the Companies Act 2006, a resolution that they be re-appointed will be tabled at a future general meeting.

Approved by Trustees and signed on their behalf by

Mr. Alan T. Gay O.B.E. Chair of the Board of Trustees, Leeds Heritage Theatre

Mr. Alan T. Gay O.B.E. Mr. Kris Brewster, Chair of the Board of Trustees, Chair of Finance, Governance & Leeds Heritage Theatre Resources Sub-Committee and Treasurer Leeds Heritage Theatres Date 03 December 2025 Date 05 December 2025

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

Independent Auditor’s Report to the Members of Leeds Heritage Theatres

Opinion

We have audited the financial statements of Leeds Heritage Theatres (the ‘Company’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows 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 UK Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (UK Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the Company’s affairs as at 31 March 2025 and of its income and expenditure for the year then ended;
have been properly prepared in accordance with UK 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 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 Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

Independent Auditor’s Report to the Members of Leeds Heritage Theatres continued

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 Trustees’ report and strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Trustees’ report and strategic report have 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 or the strategic report.

We have nothing to report in respect of the following matters in relation to which 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;
the financial statements are not in agreement with the accounting records and returns;
certain disclosures of Trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of the Trustees for the Financial Statements

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 they 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.

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

Independent Auditor’s Report to the Members of Leeds Heritage Theatres continued

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 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 auditor’s report.

Extent to which the audit was considered capable of identifying 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.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we 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. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

Independent Auditor’s Report to the Members of Leeds Heritage Theatres continued

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. 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.

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 so that we might state to the Company’s members those matters we are required to state to them in an auditor’s 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 Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

[ hsSigned7523F15D661443E... by: (awrenrtre 09 December 2025 Jessica Lawrence …………………………… Senior Statutory Auditor

For and on behalf of Azets Audit Services Limited Statutory Auditor

12 King Street Leeds LS1 2HL

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Leeds Heritage Theatres Financial statements and Annual report for the year ended 31 March 2025

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31| |March 2025| |Unrestricted|Restricted|Total|Total|Notes| |Funds|Funds|Funds|Funds| |2025|2025|2025|2024| |£|£|£|£| |INCOME| |Donations and grants|381,575|906,477|1,288,052|941,209|5| |Investment income|17,550|0|17,550|77,997|6| |Income from charitable activities|13,510,444|110,485|13,620,929|14,050,719|7| |Total Income|13,909,569|1,016,962|14,926,531|15,069,925| |EXPENDITURE| |Charitable activities|(13,839,037)|(872,807)|(14,711,844)|(14,549,456)|9| |Governance costs|(133,992)|0|(133,992)|(139,016)|8| |Total Expenditure|(13,973,029)|(872,807)|(14,845,836)|(14,688,472)| |Net Income for the Year|(63,460)|144,155|80,695|381,453| |TRANSFERS| |Gross transfers between funds|(2,065,288)|2,065,288|0|0| |Net outgoing resources|(2,128,748)|2,209,443|80,695|381,453| |OTHER RECOGNISED GAINS/LOSSES|g|/(|)| |Benefit Pension Scheme|0|0|0|(135,000)|12| |Net movement in funds|(2,128,748)|2,209,443|80,695|246,453| |RECONCILIATION OF FUNDS| |Total funds brought forward|(2,296,014)|7,243,903|4,947,889|4,701,436| |Total funds carried forward|(4,424,762)|9,453,346|5,028,584|4,947,889|

----- End of picture text -----

All of the above amounts relate to continuing activities. The Statement of Financial Activities also complies with the requirements for an Income and Expenditure account under the Companies Act 2006 and includes all gains and losses recognised in the year. A fully detailed comparative Statement of Financial Activities for the year ending 31 March 2024 is shown at Note 4.

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Leeds Heritage Theatres Financial statements and Annual report for the year ended 31 March 2025

BALANCE SHEET AS AT 31 MARCH 2025

	Charity	Charity	Notes
	2025	2024
Fixed assets	£	£
Tangible assets	10,272,727	7,701,348	13
	10,272,727	7,701,348
Current assets
Stock	58,630	45,464
Debtors	1,400,996	1,731,192	14
Cash	766,535	527,451
	2,226,161	2,304,107
Creditors
Amounts falling due within one year
- trade creditors	(521,140)	(524,591)	15
- other creditors	(6,949,164)	(4,532,975)	15
	(7,470,304)	(5,057,566)
Net current assets	(5,244,143)	(2,753,459)
Total assets less current
liabilities	5,028,584	4,947,889
Net assets	5,028,584	4,947,889	18, 20
Represented by:
Unrestricted funds	(4,424,762)	(2,296,014)	18, 20
Restricted funds	9,453,346	7,243,903	18, 20
Total Funds	5,028,584	4,947,889

The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and preparation of the financial statements. The financial statements were approved and are signed on their behalf by

| arSigned by:[Cs] 102664783B9E414... Mr. Alan T. Gay O.B.E. Chair of the Board of Trustees, Leeds Heritage Theatres

Date 03 December 2025

Mr. Kris Brewster, Chair of Finance, Governance & Resources Sub-committee and Treasurer, Leeds Heritage Theatres Date 05 December 2025

Company Registration Number – 00978161 The notes on pages 24 to 42 form part of these financial statements.

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025

Cash flows from investing activities Cash flows from operating activities	2025 2024 Notes £ £ 3,409,760 (1,248,871) 22
Interest received:	17,550 77,997 6, 22
Purchase of property, plant and equipment Change in cash in the year	(3,188,226) (2,576,205) 13 239,084 (3,747,079)

RECONCILIATION OF NET CASH FLOW TO MOVEMENTS IN NET FUNDS

(Decrease) / Increase in cash in the year Net funds at beginning of year Net funds at end of year	2025 2024 £ £ 239,084 (3,747,079) 527,451 4,274,530
	766,535 527,451

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

Notes

Forming part of the Financial Statements for the year ended 31 March 2025

1. Charity Information

Leeds Heritage Theatres is a Company Limited by Guarantee and is a Charity Registered in England and Wales. The Registered Office is 46 New Briggate, Leeds, LS1 6NU. The liability of each Trustee in the event of winding-up is limited to £1.

2. Accounting Policies

a) Basis of Accounting

The financial accounts have been prepared in accordance with 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 (FRS102) (Effective 1 January 2015) – (Charities SORP (FRS102)), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.

The Financial Statements are prepared in Sterling which is the functional currency of the Company. Monetary amounts are rounded to the nearest £1.

The Leeds Heritage Theatres meets the definition of a public benefit entity under FRS102.

Assets and liabilities are initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy notes.

b) Going Concern

The Trustees consider that given the current level of Unrestricted Reserves, it is appropriate to prepare the financial accounts on the going concern basis. Further detail is given at Note 23 to the accounts.

c) Taxation

No provision for corporation taxation has been made, as Leeds Heritage Theatres claim for exemption from taxes under Section 505 (1) Income and Corporation Taxes Act 1988 has been confirmed by the Inland Revenue.

The Company became partially exempt from Value Added Taxation (VAT) on 25[th] January 2016. The cultural exemption has been applied to the sale of tickets for live performances, but other sales such as bar sales and ices remain subject to VAT.

d) Income

All income is included in the Statement of Financial Activities when the Company is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income.

Grants (including Government grants) and donations are included in full in the Statement of Financial Activities when receivable.

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

Leeds City Council provided core funding of £91k (2024: £85k) to support the operation of the Company. In addition, certain donated services are provided which are explained in more detail in note 3 below.

Donated services are included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. No income is recognised when there is no financial cost borne by a third party. The contribution of volunteers is therefore not included in the Statement of Financial Activities.

Investment income is included when receivable by the Company. This comprises interest earned on deposits.

Income from charitable trading activity is accounted for in the year of show, income from tickets sold in advance is shown as ‘Receipts in Advance’.

e) Financial Instruments

The Company only has financial assets and financial liabilities that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

f) Expenditure

Expenditure is included in the Statement of Financial Activities on an accruals basis. Certain expenditure is directly attributable to specific activities and has been included in those cost categories.

g) Pension Costs

Employees of the Company are entitled to join the West Yorkshire Pension Fund, which is a funded defined benefit statutory scheme administered by the City of Bradford Metropolitan Council in accordance with the Local Government Superannuation Regulations 1988. The benefits provided to the employees concerned are based on a combination of final and career average pensionable pay. Contributions are charged to the Statement of Financial Activities each year so as to spread the cost of pensions over employees’ working lives with the Company. Leeds City Council acts as a guarantor for the Company under the admission agreement and has agreed to indemnify the administrating authority of the fund from and against all losses and payments that may be incurred by the authority by reason of any default by the Company.

h) Additional Pension Disclosures

In accordance with FRS102, the pension fund asset has not been recognised in the Financial Statements as it is not realisable.

At 31 March 2025, despite ongoing volatility in the market, the property and equity markets remained reliable and achieved reasonable returns on investments, the overall pension asset has increased by £762k.

Liabilities have decreased substantially by £1,398k due to actuarial assumptions; these include an increase in the discount rate combined with modest reductions in rates for CPI, pension increases, salary increases, and pension account revaluation rates.

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Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

i) Depreciation

Individual fixed assets and expenditure (including interest costs directly associated with expenditure on property improvements) that enhances rather than maintains the performance of tangible fixed assets is capitalised at cost; in general this is items above £1,000. Each capitalised asset will be considered individually to determine the length of its useful economic life, and will be depreciated accordingly on a straight line basis. Depreciation rates are:

Leasehold property improvements: 10 – 40 years
Freehold buildings: 10 - 40 years
Other Plant, Fittings and Equipment: 3 to 25 years.

In the Balance Sheet, assets are held at cost less accumulated depreciation.

j) Stock

Stock comprises supplies for bars and kiosks, and merchandise. Stock is included in the accounts at the lower of cost or net realisable value.

k) Cash/Cash Equivalents

Cash and cash equivalents includes cash in hand and deposits held with banks.

l) Debtors

Trade and other debtors are held at the settlement amount. Prepayments are valued at the amount prepaid. Provisions for Doubtful Debts are held at the settlement amount outstanding, taking into account the risk of default.

m) Creditors

Creditors are recognised where the Company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or reliably estimated. Creditors are normally recognised at their settlement amount. Financial liabilities are only de-recognised when the Company’s obligations are discharged, cancelled or they expire.

n) Governance Costs

Resources expended are included in the Statement of Financial Activities on an accruals basis. Directors who are not councillors may be reimbursed for expenses incurred in attending board meetings. Not all Trustees seek reimbursement. As per the Company’s memorandum and articles of association, members of the board are not entitled to any remuneration for their role.

o) Fund Accounting

Unrestricted Funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company.

Restricted Funds can only be used for particular restricted purposes within the objects of the Company. Restrictions arise when specified by the donor or when funds are received for a particular purpose. The use of the Restricted Funds is limited to the restoration and preservation of our venues, grant income from the Keith Howard Foundation is limited to

Docusign Envelope ID: 15EF981C-6A7F-40DF-A676-F7AC95A0641F

Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

Learning activities, the Leeds Cultural Investment Programme grant is limited to supporting our cultural and heritage offer, Sustainability Grant from the CRF also has eligibility conditions attached to it.

p) Operating Lease

Leeds City Council has let the LGT to the Company at a peppercorn rent under a 99 year full repairing lease. The Company also has four leases for operational assets, further detail is shown in Note 17.

q) Capital Commitments

On 31 March 2025, the Company had the following capital commitments:

r) Judgements and Estimations Policy

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 date of the statement of financial position and the amounts reported for revenues and expenses during the year. However, the nature of these estimations means that actual outcomes could differ from those estimates. Details of these judgements are set out in the accounting policies.

Depreciation of tangible assets: the annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are assessed annually.

3. Related Party Transactions

Leeds City Council recognises ownership of the Company as per the guidelines under International Financial Reporting Standards, the theatre at 46 New Briggate, and nominates all members of the Board of Management. The City Council provides funding, enabling the Company to carry out its charitable objectives. Leeds City Council has let the LGT to the company at a peppercorn rent under a 99 year full repairing lease.

	2025	2024
Leeds City Council	£	£
Income:
Revenue &capital funding	90,600	86,175

The total £91k comprises core funding of £91k (2024: £85k) to support the operation of the Company. In addition, a donation of £100 was received from Robert Gettings to support our Youth Theatre.

The Company receives a donation in kind from Leeds City Council, for the provision of certain administrative and financial services such as payroll and financial management systems, the value of these services has not been quantified and therefore has not been included in the financial statements.

Docusign Envelope ID: 15EF981C-6A7F-40DF-A676-F7AC95A0641F

Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

Leeds City Council processes the majority of the company’s payroll, creditor payments and income through its own systems. The Company reimburses the council on a weekly basis; the outstanding indebtedness balance with Leeds City Council as at 31 March 2025 was £762,211 owing from LCC (2024: £360,812 owing from LCC).

4. Statement of Financial Activities for the Prior Year

INCOME Donations and grants Investment income Income from charitable activities Other income Total Income EXPENDITURE Charitable activities Governance costs Other expenditure Total Expenditure Net Income for the Year OTHER RECOGNISED GAINS/LOSSES TRANSFERS Gross transfers between funds Actuarial gains/(losses) on Defined Benefit Pension Scheme	Unrestricted Restricted Total Funds Funds Funds 2024 2024 2024 £ £ £ 111,083 830,126 941,209 77,997 0 77,997 13,950,867 99,852 14,050,719 0 0 0 14,139,947 929,978 15,069,925 (13,796,956) (752,500) (14,549,456) (139,016) 0 (139,016) 0 0 0 (13,935,972) (752,500) (14,688,472) 203,975 177,478 381,453 (1,666,752) 1,666,752 0 (135,000) 0 (135,000)
Net movement in funds	(1,597,777) 1,844,230 246,453
RECONCILIATION OF FUNDS Total funds brought forward Total fundscarried forward	(698,237) 5,399,673 4,701,436 (2,296,014) 7,243,903 4,947,889

5. Donations and Grants

6. Investment Income

	Unrestricted	Restricted		Total	Total
	Funds	Funds		Funds	Funds
	2025	2025		2025	2024
	£	£		£	£
Income from bank deposits	17,550		0	17,550	77,997

The investment income arises from an interest-bearing deposit account and fixed term deposits.

Docusign Envelope ID: 15EF981C-6A7F-40DF-A676-F7AC95A0641F

Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

7. Income from Charitable Activities

Films & shows Bars & Front of House Marketing & Box Office Estate Management Learning Other	Unrestricted Restricted Total Total Funds Funds Funds Funds 2025 2025 2025 2024 £ £ £ £ 10,702,598 0 10,702,598 11,133,897 1,270,226 0 1,270,226 1,310,533 1,440,464 0 1,440,464 1,280,210 90,144 0 90,144 59,949 0 110,485 110,485 99,852 7,012 0 7,012 166,278
	13,510,444 110,485 13,620,929 14,050,719

8. Allocation of Support Costs

Trustee Expenses Management & Support Internal & External Audit Fees LCC Interest & bank charges	Charitable Activities Governance Total Total 2025 2025 2025 2024 £ £ £ £ 0 (149) (149) (461) 0 (110,860) (110,860) (110,527) 0 (20,600) (20,600) (25,850) (13,792) 0 (13,792) 0
H&S Consultants	(20,545) 0 (20,545) (10,149)
Insurance Subscriptions Non-Domestic Rates	(138,349) (2,333) (140,682) (121,966) (19,574) (50) (19,624) (7,039) (11,666) 0 (11,666) (10,991)
	(203,926) (133,992) (337,918) (286,983)

Where appropriate, expenditure has been allocated directly to an activity. Management costs represent the cost of the Company’s Chief Executive.

9. Analysis of Charitable Expenditure

	Unrestricted Restricted Total Total Funds Funds Funds Funds
	2025 2025 2025 2024 £ £ £ £
Films & Shows	(8,277,232) (106,265) (8,383,497) (8,530,638)
Bars & Front of House Marketing & Box Office	(1,498,229) 0 (1,498,229) (1,513,174) (1,177,918) 0 (1,177,918) (1,087,052)
Facilities, Technical & Housekeeping Learning Refurbishment of venues Management & support costs	(2,023,578) 0 (2,023,578) (1,864,189) (112,893) (219,277) (332,170) (321,997) (13,678) (547,265) (560,943) (487,936) (735,509) 0 (735,509) (744,470)
	(13,839,037) (872,807) (14,711,844) (14,549,456)

Docusign Envelope ID: 15EF981C-6A7F-40DF-A676-F7AC95A0641F

Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

10. Net Income for the Year

This is stated after charging:	This is stated after charging:
		2025	2024
		£	£
Employer pension contributions		(472,779)	(438,151)
Depreciation		(616,157)	(490,923)
Disposals		(690)	(9,367)
Audit Fees: audit services		(18,750)	(24,000)
Audit Fees: non-audit services		(1,850)	(1,850)
11. Staff Costs
	Unrestricted	Restricted	Total	Total Funds
	Funds	Funds	Funds	Restated*
	2025	2025	2025	2024
	£	£	£	£
Wages and salaries	3,329,897	85,000	3,414,897	3,293,409
National Insurance	273,407	0	273,407	249,938
Pension costs: employer contributions	472,779	0	472,779	438,151
Accruals	2,852	0	2,852	5,377
Total	4,078,935	85,000	4,163,935	3,986,875

11. Staff Costs

*Accruals figure restated following further analysis.

Trustees who are not City Councillors may be reimbursed expenses incurred in attending board meetings. Not all Trustees seek reimbursement. As per the Company’s memorandum and articles of association, members of the board are not entitled to any remuneration for their role. One Trustee received reimbursed expenses of £148.60 for attending board meetings in the year ending 31 March 2025 (2024: £461). No remuneration was paid to Directors during the year ended 31 March 2025 (2024: nil).

The number of employees who received emoluments in excess of £60,000 was:

	2025	2024
£60,000 to £69,999	1	0
£80,000 to £89,999	1	1
£110,000 to £119,999	0	0
	2	1

The other key management personnel of the Company comprises the Senior Management Team. Remuneration totalling £479,377 (2024: £465,159) was paid to the Senior Management Team, plus benefits were accrued under the Company’s pension scheme. It is the policy of the Company not to quantify the contribution made by volunteers, as it cannot be readily measured.

Average Number of Employees During the Year

Docusign Envelope ID: 15EF981C-6A7F-40DF-A676-F7AC95A0641F

Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

12. Actuarial Gains/ (Losses) On Defined Benefit Pension Scheme

The West Yorkshire Pension Fund is a defined benefit pension fund. The last full actuarial valuation of the Fund was carried out as at 31 March 2022 and the results have been received.

Since the Company is only one small unit within the West Yorkshire Superannuation Fund it is not appropriate to disclose either the current level of funding in the fund as a whole or the market value of its assets. However, copies of the accounts of the fund can be obtained from City of Bradford Metropolitan Council.

Introduction

The disclosures below relate to the funded liabilities within the West Yorkshire Pension Fund (the "Fund") which is part of the Local Government Pension Scheme (the "LGPS"). The funded nature of the LGPS requires Leeds Heritage Theatres and its employees to pay contributions into the Fund, calculated at a level intended to balance the pension’s liabilities with investment assets.

In accordance with Financial Reporting Standards disclosure of certain information concerning assets, liabilities, income and expenditure relating to pension schemes is required.

Contributions for the accounting period ending 31 March 2025

The Employer's regular contributions to the Fund for the accounting period ending 31 March 2025 were £473k. Additional contributions may also become due in respect of employer discretions to enhance members' benefits in the Fund over the next accounting period.

Assumptions

The latest actuarial valuation of Leeds Heritage Theatres’ liabilities took place as at 31 March 2025. Liabilities have been estimated by the independent qualified actuary on an actuarial basis using the projected credit method. The principal assumptions used by the independent qualified actuaries in updating the latest valuation of the Fund for FRS102 purposes were:

Principal financial assumptions (% per annum)

	31-Mar-25	31-Mar-24
Discount rate	5.8%	4.8%
CPI Inflation	2.5%	2.6%
Rate of increase to pensions in payment	2.5%	2.6%
Rate of general increase in salaries	3.75%	3.85%

Docusign Envelope ID: 15EF981C-6A7F-40DF-A676-F7AC95A0641F

Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

12. Actuarial gains/ (losses) on Defined Benefit Pension Scheme (continued)

Mortality assumptions

The mortality assumptions are based on the recent actual mortality experience of members within the Fund and allow for expected future mortality improvements.

Post retirement mortality (retirement in normal health)	31-Mar-25 31-Mar-24 Standard SAPS S3N tables (Heavy) Standard SAPS S3N tables (Heavy) 0.00 0.00 90% 90% CMI 2023 Projections (SK 7.0, A 0.5) with long term rate of improvement of 1.25% p.a. CMI Projections (SK 7.0, A 0.5) with long term rate of improvement of 1.5% p.a. 20.9 21.0 21.8 22.3
Males
Year of Birth base table
Rating to above base table * (years)
Scaling to above base table rates: Pensioners
Improvements to base table rates Future lifetime from age 65 (aged 65 at accounting date) Future lifetime from age 65 (aged 45 at accounting date) Females
Year of Birth base table	Standard SAPS S3N tables (Heavy) Standard SAPS S3N tables (Heavy)
Rating to above base table*(years) 0 0
Scaling to above base table rates Pensioners	90% 90%

Improvements to base table rates Future lifetime from age 65 (aged 65 at accounting date) Future lifetime from age 65 (aged 45 at accounting date)	CMI 2023 Projections (SK 7.0, A 0.5) with long term rate of improvement of 1.25% p.a. CMI Projections (SK 7.0, A 0.5) with long term rate of improvement of 1.5% p.a. 24.1 24.2
	24.8 25.2

* A rating of +1 years means that members of the Fund are assumed to follow the mortality pattern of the base table for an individual +1 years older than them. The ratings shown apply to normal health retirements.

Docusign Envelope ID: 15EF981C-6A7F-40DF-A676-F7AC95A0641F

Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

12. Actuarial gains/ (losses) on Defined Benefit Pension Scheme (continued)

Commutation

- - - 31 Mar 25 31 Mar 24 Members assumed to surrender pension Members assumed to surrender pension on retirement, such that the total cash on retirement, such that the total cash received (including any accrued lump sum received (including any accrued lump from pre 2008 service) is 75% of the sum from pre 2008 service) is 75% of permitted maximum. the permitted maximum.

Reconciliation of Funded Status to Balance Sheet

	Value as at	Value as at
	31-Mar-25	31-Mar-24
	£000	£000
Fair value of assets	12,159	11,397
Present value of funded liabilities	(8,992)	(10,390)
Total	3,167	1,007

Analysis of the Profit and Loss charge

	Period ending	Period ending
	31-Mar-25	31-Mar-24
	£000	£000
Current service cost	476	392
Interest cost	498	475
Expected return on assets	217	(426)
Total	1,191	441

Actuarial Gains / (Losses)

	31-Mar-25	31-Mar-24	31-Mar-23	31-Mar-22	31-Mar-21
	£000	£000	£000	£000	£000
Actuarial Gain /
(Loss)	2,106	848	5,403	2,364	(1,563)
The cumulative	actuarial gain as	at 31 March	2025 was	£7,044k (2024: gain of
£4,938k).

Docusign Envelope ID: 15EF981C-6A7F-40DF-A676-F7AC95A0641F

Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

12. Actuarial gains/ (losses) on Defined Benefit Pension Scheme (continued)

Changes to the present value of liabilities during the accounting period

	Period ending	Period ending
	31-Mar-25	31-Mar-24
	£000	£000
Opening present value of liabilities	(10,390)	(10,264)
Current service cost	(476)	(392)
Interest cost	(498)	(475)
Contributions by participants	(187)	(215)
Actuarial gains/(losses) on liabilities*	2,323	422
Net benefits paid out #	236	534
Closing present value of liabilities	(8,992)	(10,390)

* includes changes to the actuarial assumptions

# consists of net-cash-flow out of the Fund in respect of the employer, excluding contributions and any death in service lump sums paid, and including an approximate allowance for the expected cost of death in service lump sums.

Changes to the fair value of assets during the accounting period

	Period ending	Period ending
	31-Mar-25	31-Mar-24
	£000	£000
Opening fair value of assets	11,397	10,399
Interest income on assets	557	491
Actuarial gains/(losses) on assets	(217)	426
Contributions by employer	471	400
Contributions by participants	187	215
Net benefits paid out #	(236)	(534)
Closing fair value of assets	12,159	11,397

Actual return on assets

Period ending	31-Mar-25	31-Mar-24	31-Mar-23	31-Mar-22	31-Mar-21
	£000	£000	£000	£000	£000
Interest income on assets	557	491	276	193	169
Actuarial gain/(loss) on
assets	(217)	426	(210)	611	(1,520)
Actual return on assets	340	917	66	804	(1,351)

Docusign Envelope ID: 15EF981C-6A7F-40DF-A676-F7AC95A0641F

Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

12. Actuarial gains/ (losses) on Defined Benefit Pension Scheme (continued)

Analysis of amount recognised in Statement of Financial Activities

	31-Mar-25	31-Mar-24	31-Mar-23	31-Mar-22	31-Mar-21
	£000	£000	£000	£000	£000
Total actuarial
gains/(losses)	2,106	848	5,403	2,364	(1,563)
Total	2,106	848	5,403	2,364	(1,563)

History of asset values, present value of liabilities and surplus/deficit

Period ending	31-Mar-25	31-Mar-24	31-Mar-23	31-Mar-22	31-Mar-21
	£000	£000	£000	£000	£000
Fair value of assets	12,159	11,397	10,399	10,076	9,054
Present value of liabilities	(8,992)	(10,390)	(10,264)	(14,565)	(15,139)
Surplus/(deficit)	3,167	1,007	135	(4,489)	(6,085)

The table below allocates pension changes (gains and costs) to the Statement of Financial Activities in accordance with the Charities SORP.

Description Pension Service Changes Liabilities Current service cost Past service cost Curtailment Cost Assets Contributions by employer Subtotal Pension Finance Changes Liabilities Interest cost Assets Interest Income on assets Subtotal Pension Changes total Analysis of amount recognised in Statement of Financial Activities Total	Period ending Period ending Disclosed in: 31-Mar-25 31-Mar-24 £000 £000 (476) (392) Other expenditure - - - - 471 400Other income (5) 8 (498) (475) Other expenditure 557 491Other income 59 16 54 24 2,106 848 2,160 872

Docusign Envelope ID: 15EF981C-6A7F-40DF-A676-F7AC95A0641F

Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

13. Tangible Fixed Assets

The value of expenditure capitalised and the amounts depreciated during 2024/25 is summarised below:

	Freehold	Leasehold Property	Other Fittings	Total
	Buildings	Improvements	& Equipment
	£	£	£	£
Cost
At 1 April 2024	4,819,346	1,336,486	3,399,289	9,555,121
Additions	321,977	2,634,869	231,380	3,188,226
Transfers				0
Disposals	(11,690)	0	(57,081)	(68,771)
At 31 March 2025	5,129,633	3,971,355	3,573,588	12,674,576
Depreciation
At 1 April 2024	(450,644)	(171,473)	(1,231,656)	(1,853,773)
Charge for the year	(118,842)	(175,669)	(321,646)	(616,157)
On Disposals	11,690	0	56,391	68,081
At 31 March 2025	(557,796)	(347,142)	(1,496,911)	(2,401,849)
Net book value
At 1 April 2024	4,368,702	1,165,013	2,167,633	7,701,348
At 31 March 2025	4,571,837	3,624,213	2,076,677	10,272,727

14. Debtors

	Charity	Charity
	2025	2024
	£	£
Trade debtors	82,639	228,286
Prepayments	14,475	432,868
National Lottery Heritage Fund Grant	312,417	450,689
Leeds City Council	767,689	360,813
HMRC (VAT & Theatre Tax Credits)	225,026	277,147
Total - Debtors	1,402,246	1,749,803
Doubtful Debt Provision	(1,250)	(18,611)
Net Total	1,400,996	1,731,192

15. Creditors: Amounts Falling Due Within One Year

Docusign Envelope ID: 15EF981C-6A7F-40DF-A676-F7AC95A0641F

Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

16. Deferred Income

Balance as at 1 April Amount deferred in year Balance as at 31 March Amount released to incoming resources from charitable activities	Charity Charity 2025 2024 £ £ (4,247,163) (4,498,997) 4,247,163 4,498,997 (6,595,481) (4,247,163)
	(6,595,481) (4,247,163)

‘Amount deferred in year’ as shown above, comprises Box Office income from tickets and vouchers being sold in advance for around 170 performances and screenings.

17. Commitments under Operating Leases

At 31 March 2025 the Company’s future minimum operating lease payments are as follows:

Operating Leases due: After more than 5 years Operating Leases due: Within 1 year Within 2 to 5 years After more than 5 years	2025 2024 £ £ 0 0 2025 2024 £ £ 9,155 9,156 21,863 31,018 0 0 Land and Buildings Other Assets
	31,018 40,174

Docusign Envelope ID: 15EF981C-6A7F-40DF-A676-F7AC95A0641F

Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

18. Analysis of funds for Year Ending 31 March 2025

Unrestricted Funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company.

Restricted Funds can only be used for particular restricted purposes within the objects of the Company. Restrictions arise when specified by the donor or when funds are received for a particular purpose. The use of the Restricted Funds is limited to the restoration of our three venues, grant income from the Keith Howard Foundation is limited to Learning activities, and Leeds Cultural Investment Programme grant is used to support our cultural and heritage offer.

Transfers and other recognised gains and losses represent the net investment in capital expenditure on Restricted Assets.

Docusign Envelope ID: 15EF981C-6A7F-40DF-A676-F7AC95A0641F

Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

19. Analysis of funds for Prior Year (Ending 31 March 2024)

Docusign Envelope ID: 15EF981C-6A7F-40DF-A676-F7AC95A0641F

Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

20. Analysis of Net Assets Between Funds for Year Ending 31 March 2025

21. Analysis of Net Assets Between Funds for Prior Year (Ending 31 March 2024)

	Tangible	Cash at	Other Net		Total
	Fixed	Bank and	Current
	Assets	In Hand	Assets
Unrestricted Funds	£	£	£		£
Designated Funds	0	21,867		0	21,867
Charity Unrestricted Reserve	457,445	505,584	(3,280,910)		(2,317,881)
Pension Reserve	0	0		0	0
Sub-total	457,445	527,451	(3,280,910)		(2,296,014)
Restricted Funds
Leeds Grand Theatre & Opera House:	Leeds Grand Theatre & Opera House:
Restoration Fund	2,149,798	0		0	2,149,798
City Varieties Music Hall:
Preservation Levy	793,310	0		0	793,310
Hyde Park Picture House:
Development Fund	4,300,795	0		0	4,300,795
Sub-Total	7,243,903	0		0	7,243,903

Total Funds	7,701,348	527,451	(3,280,910)		4,947,889

Docusign Envelope ID: 15EF981C-6A7F-40DF-A676-F7AC95A0641F

Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

22. Reconciliation of Net Income to Net Cash Flow from Operating Activities

Net Income less: interest received Operating Profit Depreciation charge Loss on Impairments (Increase)/Decrease in stock (Increase)/Decrease in debtors Decrease in creditors Net Cash used by/(provided by) Operating Activities	2025 2024 £ £ 80,695 381,453 (17,550) (77,997)
	63,145 303,456 616,157 490,923 693 9,367 (13,168) (16,674) 330,195 (822,789) 2,412,738 (1,213,154)
	3,409,760 (1,248,871)

The Company had no debt in the current or previous year.

23. Going Concern

The Trustees consider the Company to be a going concern and the Financial Statements have been prepared on that basis. In reaching this conclusion the Trustees have taken into account a number of factors including the current period of economic downturn.

Long term forecasts have been prepared modelling a number of scenarios which show that, with income generation strategies and cost control measures in place, and the level of reserves, the Company can continue to operate as a going concern. Key to this success will be:

Maintaining the high volume of productions and screenings across our three venues, and being able to attract high quality product,
The award from The Keith Howard Foundation of a grant agreement for a period of three years, until July 2026,
Additional income from implementing our Business Strategy, in particular income from fundraising.

It is recognised that under the terms of the Leeds Grand Theatre lease, the Company is responsible for ensuring that the whole of the premises is kept in good and tenantable repair and condition. The Company has a programme of capital works, and is working closely with the City Council in order to ensure compliance with these lease obligations.

We acknowledge that a legal charge remains in place between the Company and the Arts Council of England dated 10 June 2009, creating a legal obligation for the Company to reimburse the Arts council a grant of up to £1,050k if the Leeds Grand Theatre property is no longer used for the purposes of being a theatre during the 20 years to June 2029. We consider that the probability of the theatre no longer being used as a theatre is remote, and on the basis that the Company is a going concern, no disclosure is required in respect of any potential contingent liability.

Docusign Envelope ID: 15EF981C-6A7F-40DF-A676-F7AC95A0641F

Leeds Heritage Theatres Financial Statements and Annual Report for the year ended 31 March 2025

23. Going Concern (continued)

We also acknowledge that a legal charge is in place between the Leeds Heritage Theatres and the Trustees of the National Heritage Memorial Fund (NHMF) dated 14 September 2023, creating a legal obligation for the Company to reimburse the NHMF a grant of up to £2,812k if the Hyde Park Picture House is no longer used for the purposes of being a cinema during the period to December 2038. We consider that the probability of the cinema no longer being used as a cinema is remote, and again, on the basis the Company is a going concern, no disclosure is required in respect of any potential contingent liability.

The Board also has regard to the pension obligation disclosed in the financial statements. Under the terms of the Guarantee Agreement between Leeds City Council and the Administering Authority of the West Yorkshire Pension Fund dated 1978, Leeds City Council acts as guarantor to the Company in respect of future pension liabilities. If the Company ceased to operate, the pension asset/liability would revert to Leeds City Council.

With consideration of the points described above, the Trustees have concluded that the Company can continue to operate as a going concern basis.

24. Residency Licence

Leeds Heritage Theatres has a residency licence with Opera North Limited. For the purposes of this note, Leeds Heritage Theatres is the licensor and Opera North Limited the licensee.

Under the terms of this licence, Leeds Heritage Theatres permits Opera North Limited to use the Leeds Grand Theatre premises for a maximum of 23 residency weeks per year. Opera North Limited are entitled to have first call on booking its residency weeks but no part of a residency week may fall within the Company’s priority window. The licence is due to terminate on the 31[st] December 2035.

25. Events After the Reporting Date

Subsequently to the year end, work will begin in Spring 2026 on the City Varieties Music Hall, which includes replacement of the roof, and repairs to pointing and brickwork. The estimated costs for this are £1.8m.